4Rivers plans to
break ground
on July 1

By Mary Garrison
Tribune-Courier Reporter
mgarrison@tribunecourier.com

CALVERT CITY – Nearly six weeks ago, members of the Marshall County Fiscal Court, riverport authority and Calvert City council met to discuss the future of an industrial park and riverport located in the vicinity of Shar-Cal Road in Calvert City.

Since then, questions and misconceptions have arisen in the community. Sonny Bailey, a Calvert City business owner came before the council to address concerns about the development and the involvement of 4Rivers Biodiesel in discussed plans.

Bailey cited articles from the local press, which outlined plans for putting in a $15 million rail spur that would connect with the intended rail spur scheduled to be constructed by 4Rivers.

Bailey was under the apparent misconception that city and county governments intended to contribute the $15 million to 4Rivers and its construction project.

“We’ve not committed to doing anything,” said Mayor Lynn Jones. “4Rivers has not asked anyone for any money.” Jones went on to clarify that the city is not giving the company any money, and any construction efforts would not be to solely benefit the company.

Marshall County Economic Development Director Josh Tubbs later went on to clarify further, stating that developing an industrial park and riverport has been in discussion and planning since long before 4Rivers chose the site in Calvert City to build on.

Right now, the chosen site for development has only potable water, Tubbs said. However, he said in order for the site to draw in new industry the area needs such amenities as waste water and rail service.

After working with Florence and Hutcheson Engineering firm of Paducah and developing feasibility studies, Tubbs said the rough estimate to develop a rail spur and lay groundwork for further development would cost approximately $15 million.

Enter 4Rivers Biodiesel, which plans to develop in the area.

“We want to bring about responsible growth in the community,” Tubbs said. “Developing a riverport is expensive, and if we can go about developing in the way we want to in a more cost efficient manner, why not do that?”

Tubbs said working in conjunction with 4Rivers would allow the riverport authority to do so.

Timing is an important issue, as well, Tubbs said. Several other communities already have riverport development underway, and competition is tough, he said.

“The thing is, when you’re trying to attract new industry, they’re going to be lookking at what a site has to offer,” Tubbs said. “They’re going to look at whether or not you have waste water and rail. And if you were in business, which would you choose: a site with the infrastructure already in place or an open field?”

Marshall County Fiscal Court has already pledged to contribute half of the funding to lay down the initial infrastructure, dependent on Calvert City’s agreement to fund the remaining half.

The city has not come to a determination on funding at this time.

Federal stimulus money may be able to ease the financial burden of riverport development, however. Calvert City is one of only two communities in the state currently eligible to apply for a rolling fund loan for a waste water project at the site.

The funds would come in a low-interest loan, with a 52 percent forgivable on the principle amount. The total estimated cost of the project is approximately $1.1 million, leaving the riverport authority cost at approximately $550,000.

The line would allow any new and existing industry to hook on to the waste water for a percentage of construction cost.
Calvert City is also eligible for application to obtain funds to expand on the existing sewer line at Cypress Lakes to the water treatment plant. The loan would function in much the same manner as that to develop the waste water line to Shar-Cal Road.

The current line is much too small, said city water worker Don Hise.

The total estimated cost of the project is $700,000. In both projects, the city has the option to drop out at any point in the application process.

• Representatives from 4Rivers Biodiesel appeared before the council to update councilmen on the company’s plans and progress.

4Rivers president and CEO Gary Hudson said the company is in the process of obtaining permits for pier construction but plans to proceed with groundbreaking on July 1.

The company has also obtained land for the construction of its rail spur; however, 4Rivers representative Gordon Weightman said the company has come to a temporary “impasse” in getting all of the necessary easements for said construction.

Hudson said the company remains in a relatively good state of finance, however plans to develop have been temporarily scaled back due to current economic conditions and the downturn of the ethanol industry.

4Rivers had originally planned a $500 million operation in Calvert City, though plans to proceed with that venture have been put on hold. The company still intends to construct a 50 million gallon a year biodiesel plant which would provide approximately 200 construction jobs and 50 regular staff positions upon completion.

Weightman said the inital plant and rail spur are just the first phase of an intended three-phase long-term plan of development.

Hudson said the Calvert City site is an ideal location for a complete bio-energy operation; however, he said the company would need to complete further feasibility studies to determine future development considering the current economic climate.

In terms of 4Rivers working in conjunction with the riverport authority to develop a public port, Hudson and Weightman were amenable to the concept. However, both said further study would also be needed in the matter.

“We want to do it,” Weightman said. “But it’s a big step.”

• The city is considering a note payoff rather than refinancing a loan for the Riley Station in Calvert City.

The loan, taken out nearly 10 years ago through a state financing program, lost its third party when Fifth Third Bank, the bank that holds the note, chose to opt out of the program.

City Treasurer Ralph Howard put together figures which suggested the city could save $25,000 should the council choose a payoff.

Bob Futrell moved to payoff the note, however the motion was defeated, and the council agreed to revisit the matter at the next budget session. A payoff now would require an amendment of the city’s current budget.

The city has until the end of the year to take action.