The chance for a new, state-of-the-art Farmland Foods plant in Albert Lea may hinge on the final clean-up bill for the old facility that was gutted by fire in July.

Tuesday, October 09, 2001

The chance for a new, state-of-the-art Farmland Foods plant in Albert Lea may hinge on the final clean-up bill for the old facility that was gutted by fire in July.

The council approved an economic development package Monday to encourage Farmland to build a new $88 million pork processing plant in Albert Lea. But, by inserting a condition in the proposal, the council attempted to protect the city from exorbitant clean-up costs. As long as the demolition and rehabilitation of the existing plant site does not exceed the estimated $5 million, the city will move ahead with the proposal.

&uot;I just don’t want the cost to get any higher than the estimate,&uot; said Councilor Al &uot;Minnow&uot; Brooks. &uot;We don’t want to get stuck with something huge.&uot;

Contaminants on the site could drive up the cost of clean-up. City Manager Paul Sparks said the old plant contains asbestos in the form of pipe wrap and boiler wrap as well as some cutting oil ground contamination. An ash landfill on the property’s southwest corner may also be cause for some concern. But the plant does not have any massive amounts of contaminants, he said.

&uot;It was a meat processing plant, not a hazardous chemical plant. I think the contamination is fairly isolated,&uot; Sparks said.

The council also decided to move ahead with a study that would more clearly outline the steps necessary to remove any environmentally hazardous materials from the old plant. The study would give the city a clearer picture of the total cost of the clean-up project, Sparks said.

&uot;We’ll try to put a rush on it – not only getting the study started, but also on the grants that will pay for it,&uot; he said.

The council also made it clear it will pursue claims against insurance companies that had policies with previous occupants of the site. Mayor Bob Haukoos said expired policies with old companies are still liable to pay for environmental problems, giving the city another means to pay for the clean-up project.

&uot;We’ll pursue that, especially if we do find out that the cleanup will have a higher cost than expected,&uot; he said.

Despite concern over clean-up costs, the council expressed support for a new Farmland plant and the concept of swapping land with the company.

&uot;I think some of the public thinks we’re giving away the farm, but we’re not really giving this land away,&uot; said Councilor Warren Amundson. &uot;I would like people to know that this is an even exchange.&uot;

The package gives a 32-acre site in the Habben Industrial Park in southeast Albert Lea in exchange for the old site, which the city hopes to eventually develop into a business park. The deal would allow Farmland to move ahead with a new plant, while the city tackles the demolition and cleanup of the old plant. The city has said it hopes to pay for most of the cleanup through state and federal assistance, not with local tax money.

If Farmland decides not to build a new plant in Albert Lea, Sparks fears the old plant will be the subject of insurance disputes and court battles.

&uot;I’m afraid of what we could be left with – an eyesore in the middle of town that might not go away for four or five years,&uot; he said.