CITY OF CHAFFEE MOVES CLOSER TO FINALIZING LAND SALE WITH MFA

CHAFFEE - A land sale in the industrial park here that has been `in the works' for several months may finally close on Monday evening during the Chaffee City Council meeting.

The parties involved include the City of Chaffee and MFA. Representatives of both have been cautious in their statements about the potential sale, reminding this writer that the deal would not be announced until the contract is officially closed.

In an interview last week, Kenny Schlitt, long-time manager of the Vigoro plant here, said he has told his company that he would be resigning and going to work for MFA in a similar capacity after a new fertilizer plant is built in the industrial park here. He said the citys attorney and MFA attorney were fine-tuning the paperwork last week to complete the sale of 10 acres in the industrial park.

In connection with the sale, the city is preparing to proceed with an application for an economic development grant from the state to provide a paved roadway and water lines into the proposed site at the industrial park. The city council met here last Monday night with Schlitt and Leon Steinbrueck, director of the Bootheel Regional Planning and Economic Develop-ment Commission, to discuss the procedures for applying for the grant.

Last Mondays meeting went real well, Schlitt said. However, it seems that the wheels of progress can move slowly at times.

Steinbrueck made a presentation on the time frames regarding the grant, Schlitt related. He said that a public hearing would be set up here at city hall for the economic development grant, which could take 45-60 days for approval.

Steinbrueck was very positive on the citys chances for receiving the proposed grant, according to Schlitt. He said Steinbrueck told the council that the new jobs that will be created, the cost of the project and the citys need for road and water expansion to the proposed site all fit real well into the current criteria that the state uses to award grants.

During its meeting last week, the city council set this coming Thursday at 4 p.m. as the time for a public hearing on the proposed grant. According to a published notice on the public hearing, the city plans to ask the state for $80,000 in grant funding. The city plans to use the cash from the sale of the land for its portion of the economic development project.

Schlitt said MFA had a written proposal before the city council here on July 18, which was discussed in closed session. City officials, however, had some problems with meeting the time constraints in the proposed contract, Schlitt said, and no one from MFA was present at that time to answer questions. The negotiating process between attorneys was continued after last Mondays meeting and Steinbruecks presentation, Schlitt said.

MFA would like to have its new facility ready for operation by January 1, Schlitt said. Before construction can begin on a new facility though, the city will have to wait for the grant and then, if approved, finally proceed with the road and water improvements after a bidding process. That amount of time may push the start of construction to late in the year when weather can halt building.

The lawyers are talking this week, Schlitt said in the interview. If they can reach agreement, then the proposal will be given to MFA officials for their decision. If everyone can agree, hopefully, well be able to close the deal on Monday.

In Schlitts opinion, the time frames for completing the project dont seem to be a problem. He said MFA was planning to spend about $500,000 in new construction and equipment in order to build the state-of-the-art facility, which will handle fertilizer and crop protection products.

I know we cant do it overnight, Schlitt said about the entire process of buying the land and building a new facility. Things dont work that way. But this is something that Ive been working on for six months already.

I think the industrial park is a good site for MFA. It will also be good for the community. Its one of those situations where everyone will benefit, Schlitt said.

MFA is interested in the project, Schlitt continued. Im interested. It will all work out. People just have to work together.

Schlitt said it was a business decision on his part to leave Vigoro and proceed with MFA to build a new facility at the industrial park. He said he has submitted his resignation to Vigoro with an open date. He said Vigoro officials have indicated that they would like him to stay in his present position until its facility is closed here.

I looked at all the proposals and my own considerations before deciding to go this way, Schlitt said. I took what was best for my customers, my employees and myself. MFA will put in a new facility here that will meet or exceed any government regulations on the fertilizer business.