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HomeMy WebLinkAbout7. Industrial Development Project Update and TourCITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: OCTOBER 22, 1991 AGENDA ITEM: INDUSTRIAL DEVELOPMENT PROJECT AGENDA SECTION: UPDATE AND TOUR PREPARED BY: SUSAN L. VANDERHEYDEN AGENDA NO. �% ASSISTANT CITY ADMINISTRATOR ATTACHMENTS: MEMO, PRESS RELEASE, AND A Y• PROJECT COMPLETION LIST U Economic Development staff has been working with the Minnesota Department of Trade and Economic Development in the hopes of locating a new facility proposed by a Finland based company in the City of Rosemount. On Thursday, October 17th, staff was informed that the Finnish representatives will be coming to Rosemount on Monday, October 28th until approximately noon on Tuesday, October 29th. Attached for your review and information are additional project details as well as a project to 'do list and press release from the Finland Company. Due to the rapid timeline, staff is still collecting necessary information concerning possible economic incentives for Council and EDA review. Therefore, a motion will be presented for your review and consideration Tuesday evening. RECOMMENDED ACTION: TO BE PRESENTED AT THE MEETING COUNCIL ACTION: �2ty of Rosemount PHONE (612) 423-4411 2875 - 145th Street West, Rosemount, Minnesota MAYOR FAX (612) 423-5203 Mailing Address: Vernon Napper P. O. Box 510, Rosemount, Minnesota 55068-0510 COUNCILMEMBERS Sheila Klassen John Oxborough Harry Willcox Dennis Wippermann ADMINISTRATOR Stephan Jilk TO: MAYOR NAPPER COUNCIL MEMBERS KLASSEN, OBBOROOGH, WILLCOX & WIPPERMANN EDA CHAIR PERSON WALSH FROM: SUSAN L. VANDERHEYDEN, ASSISTANT CITY ADMINISTRATOR DATE: OCTOBER 18, 1991 ITEM: FINLAND PROJECT PROPOSAL The Economic Development staff has been working with the Minnesota Department of Trade and Economic Development (MNTED) since last May in the hopes of finding an appropriate site for a Finland based company which produces hydrogen peroxide. Staff was informed during the month of August that Finnish representatives would soon be choosing certain sites to tour. On Thursday, October 17, 1991, Rosemount was contacted by MNTED to inform us that the Finnish representatives will tour the recommended Rosemount sites on Monday, October 28th and half of the day Tuesday, October 29th. EDA staff has been working diligently to arrange the details for the visit. Throughout the past weeks staff has been in constant contact with Senator Wellstone's office as well as appropriate embassies in the attempt to obtain more detailed information about the Finnish company. EDA staff has continued to obtain more Rosemount site information and forward it on to MNTED, and we have continuously requested information and updates from the State so as to be prepared when this moment did arrive. In addition, staff met with representatives who hold an interest in the land areas the Finnish Company is interested in and contacted a number of other State agencies (MPCA, DNR, etc.,) to obtain pertinent permit information. This item has been added to the Special Council meeting agenda so that the City Council and EDA may receive a full update from staff and discuss possible economic incentives that could be offered to this company. In addition, staff will develop a budget that will be needed for the program. It may be necessary for the City Council and EDA to meet again later in the week to further discuss 6verylhings coming (L/1,p (Rosemounl!l NEWS L= Kemira plans North. American H2O2 Finland's Kemira (Helsinki) plans to enter the North American market for hydrogen peroxide (H=O=) with a 34,000- m.L/year plant for fall 1993 startup. The company expects to decide on the site of the S80 million -S90 million plant by August, and is considering sites in Wis- consin, near Green Bay; northwest Michigan, near the Wisconsin border; Quebec, between Montreal and Quebec City; and Ontario, at Sarnia or western parts of the province. Its target is the pulp and paper industry of the Northeastern U.S, and Eastern Canada. As a leading supplier of pulp and paper chemicals in Europe, and with sales of specialty chemicals already un- der way to the North American pulp and paper industry, "we have big potential with our chemicals and service" in North America, says )uhani Lindholm, Kemira's v.p./pulp and paper chemicals. Kemira is rapidly building up its posi- tion in H2O2 worldwide, using its propri- etary anthraquinone -route technology. Besides its 20,000-m.L/year unit at Oulu, Finland, Kemira has a 20,000-m.t./vear unit in startup at Rotterdam, and a 20,000-m.t./yearunit under construction in Japan in a joint venture with Ube Industries, due for mechanical comple- tion in January 1992. Lindholm is optimistic that H2O, de- mand in North America—the world's largest pulp and paper -producing re- gion—will continue to grow close to 10%/year, allaying the risk of overcapacity from the large amount of capacity announced or under construc- tion. Due for startup this year are Du Pont's (Wilmington, DE) 40,000 -tan/ year plant at Gibbons, AB, in August; Degussa's (Ridgefield Park, NJ) 40,000- ton/year expansion at Mobile, AL, in the fourth quarter; and Eka Nobel's (Atlanta) 38,500-ton/year unit at Columbus, MS, by year's end. Atochem North America (Philadelphia) plans a 20,000-ton/year unit at Portland, OR or Tacoma, WA, for early 1993 startup. At the end of March Interox (Houston) completed expansion of its Longview, WA plant from 22,500 tons/year to 55,000 tons/year. FMC (Philadelphia) and Oxychem Canada (Montreal) ex- panded last year. Capacity now entering the market will hold plant operating rates down over the next year or two, but an Interox official sees recovery by 1993. DAVID HUNTER Sorgenti stretches a big canvas for the Freedom Group Having announced plans for a S300 - million methyl Cert -butyl ether (MTBE) project, the newly established Freedom Group (Philadelphia) is setting its sights on building a sizable portfolio of busi- nesses with international dimensions. According to managing partner Harold Sorgenti, the MTBE project is only the first move in the group's plan "to capture a piece of the worldwide reformulated fuels market." The project links the group's Freedom Envirofuels oxygen- ated fuels unit with Auxsable Partners (New York) in a plan to convert a syn- thetic natural gas plant at Moms, IL to MTBE production. It is due onstream by second-quarter 1994. As former vice chairman of Arco Chemical (Newtown Square, PA), the largest U.S. MTBE producer, Sorgenti is well acquainted with the market and reckons Freedom "could easily build a Sl -billion business. "No less important, however, is Freedom's pursuit of oppor- "anti: Makft some of the wtwio. tunities in specialty chemicals and poly- mers. Currently, the group aims to build a specialties business through acquisi- tions. Sorgenti is looking to "weave to- gether a set of product fines that make sense as a whole. We'd like to put_ to- gether three or four businesses in a S100 - million company, then grow it like craw." Freedom is also eyeing the specialty po)vmers sector. "1 think there has been a tremendous overreaction to environ- mental attacks, which is creating a lot of opportunities for acquisitions," says Sorgenti. While recognizing that some polymer products such as expandable polystyrene suffered due to poor envi- ronmental reputations, the Freedom ex- ecutive believes they can be rehabili- tated. "I think these products have a great future. We have the technologt, to pro- duce modified, environmentally sensi- tive products. And we have the ability to recycle them," says Sorgenti. PETER COOMBES KEMIRA CHEMICAL COMPANY TOUR SCHEDULED FOR: Monday, October 28, 1991 Tuesday, October 29, 1991 TO DO LISTING: NOTE: KEMIRA HAS INDICATED TO THE STATE OF MINNESOTA THAT ROSEMOUNT HAS ONE AND ONE HALF DAYS TO CLOSE A DEAL WITH THEM - IF THEY LEAVE WITHOUT A DEAL, THEY WILL CONSIDER ROSEMOUNT NO FURTHER. I. Prepare itinerary and FAX to MN DTED on Friday. We will be responsible for the activites taking place all day on Monday the 28th and until approximately 12:00 noon on Tuesday. MN DTED is providing the hotel accomodations up by the airport. The representatives from Kemira will be arriving on Sunday evening. They will be picked up at the hotel by MN DTED officials on Monday morning and brought to Rosemount at that time. II. Put together listing of persons to be involved in a presentation to the company. It is expected that Kemira will have two, possibly three representatives. III. Prepare an extensive presentation regarding what we can potentially do for them. They have specifically requested that the following persons / companies be represented at the presentation: - property owner(s) from both CNR and KOCH if possible - NSP needs to be present with costs for electricity to their facility - Peoples Natural Gas needs to be present with costs for their natural gas needs (based upon 400 lbs. of pressure required of gas service) - Union Carbide should be present (not requested but they are certainly a large stakeholder in this, perhaps we could tour the Union Carbide facility somewhere during the two days) Costs of all potential utility needs and timeframe for development (natural gas, electricity, water, sewer, etc.) - CNR needs to have together all of the specific information about the permits that they have available - Staff needs to contact the State of Minnesota to determine how long the permitting process would take if they had to obtain permits on their own. Timeframe information is essential !! Other items requested by the State of Minnesota: - solid presentation with maps, all possible site information - what can the city of Rosemount offer to a company like this - definitive project cost information: This will be requested both of the property owners and of the City of Rosemount. WE HAVE TO BE PREPARED TO MAKE THEM AN OFFER AT THE PRESENTATION! The following individuals should be involved throughout the process. Keep in mind that we have one and one half days - it is not necessary to have the entire group of people together for this entire time !! The key people will need to be there for the duration, but others can come and go as their expertise warrants.' We can determine this by carefully scheduling the itinerary . . - MN DTED Officials - Ozment or Pariseau ?? - Dakota County representatives ?? - Legal Counsel (Don Fluegel) ?? - Mayor Napper - City Council Members - City Administrator - Economic Development Staff - Public Works - Planning / Zoning - Building - members of Star City Committee / Chamber representatives - Union Carbide - NSP Peoples Natural Gas - Representatives from Koch Refinery, Inc. - Continental Nitrogen Resources Other considerations: - Where do we intend to take them for lunch on those days? I assume we will definitely have to take them on Monday, perhaps Tuesday before they leave as well. - We need to set up a tour of the community of Rosemount in general (either drive by or actual visit) - maybe the schools, the technical college, Grief Bros., Knutson Services, Inc., housing developments, small local businesses ??