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 ??