The Clinton Herald, Clinton, Iowa

Local News

July 24, 2012

Clinton surfaces in plant talks

Local officials tightlipped on possibility of fertilizer plant locating here

CLINTON — Several Iowa and Illinois counties are vying for a $1.3 billion nitrogen-based fertilizer plant that would provide approximately 165 permanent jobs and another 1,500 to 2,000 during construction.

Egypt-based Orascom Construction Industries remains non-committal about where it will build the facility. 

According to Tina Hoffman, Marketing and Communications Director for the Iowa Economic Development Authority, when Orascom came to the Economic Development Authority Board looking for possible sites for the facility, it originally pursued a site in Lee County.

Orascom has since backed away from Lee County due to concerns of the site being in the 100-year floodplain.

Despite a tax credit passed for the project by the Illinois legislature and talks with Peoria County, Ill., this summer, the company continues to pursue other Iowa sites.

Last week Orascom came to the Scott County Zoning and Planning Commission seeking to rezone a 318-acre plot of agricultural land near Walcott.

The commission denied that request, citing concerns about turning the land from agricultural to heavy industrial. The Scott County Board of Supervisors will hold a public hearing regarding the zoning request on Aug. 2 and will vote on the request Aug. 16.

Reports show Orascom had a discussion about the facility with Clinton early on. According to the property listing on the Clinton Regional Development Corp. website, Clinton’s 508-acre railport has been accepted and zoned heavy industrial for two generations, allows access to three pipelines, competing natural gas and electric service, the airport and the Union Pacific East-West Mainline.

It is unknown if, in light of Orascom re-evaluating locations, Clinton is currently being considered for the plant.

Iowa Rep. Mary Wolfe, D-Clinton, said she supports using incentives to attract Orascom to Clinton County.  

“It would be a huge deal for the Clinton, Camanche, Low Moor area. I would love to see it happen,” Wolfe said.

President and CEO President and CEO of the CRDC, Steven Ames, declined to comment. Mayor Mark Vulich could not be reached for comment.

The company initially planned to start work on the facility late this fall, but with the location uncertainty, Hoffman said she is not sure how reasonable that goal is. Incentive packages would further delay the decision.

 Before Orascom backed away from a possible site in Lee County over flood concerns, Iowa Economic Development Authority Board and local officials offered Orascom an incentive package including a $2 million state grant and $31.5 million in tax credits and refunds. Lee County also offered a $248,000 tax incentive.

According to Hoffman, if Orascom selected a site in Iowa outside of Lee County, they would need to reapply for the state funding and a new incentive plan would be drafted. The Economic Development Authority Board would also need to work with local officials to see what options are available. Hoffman said the state would also continue to make Iowa a more attractive option for Orascom.

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