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Rentech cash in bank early
Published Thursday, July 3, 2008
NATCHEZ — The money is in the bank — and it’s ahead of schedule, too.
On Monday Rentech wired approximately $1.3 million it owed to Adams County.
On June 3, when Rentech’s land deal closed, the county was scheduled to receive approximately $3 million from the deal.
However, at the last minute, the contract was changed and the county agreed to accept the money in two payments.
The first payment was made on June 3.
The remaining money, approximately $1.3 million, was scheduled to be sent by Rentech to the county by July 31.
However the money came sooner than originally expected.
Rentech’s Director of Investor Relations Julie Dawoodjee said Rentech was simply able to pay in advance of the July 31 deadline.
“We’re very appreciative of the county’s cooperation,” she said.
On Wednesday afternoon attorney Bob Latham dropped the check off at the Adams County Board of Supervisors office to be deposited.
Latham, former county attorney, said the wired funds were received on Monday and confirmed on Tuesday.
Supervisor Darryl Grennell said he was pleased to learn of the check’s arrival.
“Rentech did exactly what they said they were going to do,” he said.
When the deal closed the county netted nearly $3 million from Rentech’s transaction.
But what exactly will be done with the money is still unknown.
Board President Henry Watts said some of the money would likely be spent on a Rentech-related trestle project the county is involved in.
Watts said the remainder of the money should be put in a “rainy day fund.”
And Grennell said when the supervisors originally heard of the money, they discussed using it for economic development in the in the county.
Supervisor Mike Lazarus said the board would have to vote on what the money would be used for. But on Wednesday evening Lazarus, like others, was happy the deal was done.
“The money is in the bank again,” he said.
Comments
Posted by fire39212 (anonymous) on July 3, 2008 at 12:09 a.m. (Suggest removal)
This is good news....
Posted by oldschool (anonymous) on July 3, 2008 at 6:30 a.m. (Suggest removal)
They will waste the money. They just got it and it is burning a hole in their pockets to see who will spend it first. BUT, I hope they use it wisely. It does not come often like this.
Posted by iconoclast (anonymous) on July 3, 2008 at 6:51 a.m. (Suggest removal)
I'm starting to feel more positive about this whole Rentech deal. I do hope they get up and running soon. I watched a computer model of their coal to liquid process and it is very interesting. You can see it on Rentech's website. I have also read some positive reviews of the company and its process in periodicals related to science and alternative energy.
Posted by Swapmeet (anonymous) on July 3, 2008 at 7:23 a.m. (Suggest removal)
When are they supposed to start construction on the site?
Posted by gemccull (Gary McCullars) on July 3, 2008 at 7:31 a.m. (Suggest removal)
"On Wednesday afternoon attorney Bob Latham dropped the check off at the Adams County Board of Supervisors office to be deposited.
Latham, former county attorney, said the wired funds were received on Monday and confirmed on Tuesday."
If the funds were "wired" to the county, why was there a physical check to be deposited?
Posted by mike8427 (anonymous) on July 3, 2008 at 7:45 a.m. (Suggest removal)
Where are all the complainers that always said Rentech was just a hoax? I read at least a hundred comments saying that Rentech was playing a game with Adams county - whatever that means.
Posted by gemccull (Gary McCullars) on July 3, 2008 at 7:50 a.m. (Suggest removal)
Previously reported by the ND (http://www.natchezdemocrat.com/news/2008...) the county would not be out any money for the new trestle???
Posted by freedom42 (anonymous) on July 3, 2008 at 8 a.m. (Suggest removal)
I think it's going to be good for the county, and I applaud all who have taken part in this. I pray I won't be proven wrong and have to eat my words.
Posted by sayitloud (anonymous) on July 3, 2008 at 8:25 a.m. (Suggest removal)
I hope they don't waste the money seeing the shape the economy is in right now and I hope they use this money to improve Natchez. Fix the streets first and foremost.
Posted by sandyman7 (anonymous) on July 3, 2008 at 8:26 a.m. (Suggest removal)
Well Now ...lets see...County got 3 million..the last installment was 1.3 million of that 3 million..RR trestle not cost county anything...If renteck sent the board the last 1.3 and the board turns that 1.3 over to RR to "help" fry the cost..OMG County still out 1.3 million that was supposed to be a part of the money county got for IP land deal......So Renteck got the ip land for only 1.7 million that " sounded" like 3 million,,,,No wonder John Q public has a "headache" over this Renteck deal.!!
Posted by destiny (anonymous) on July 3, 2008 at 9:34 a.m. (Suggest removal)
gemccull and sandyman7 keep up the good work with your book keeping. My memory like my beauty (ha-ha) is fading fast. But I know we can count on you to keep count of the money coming in and going out whether the board will or not. I'm like the others, lets see what they do with the money they get. Pilgrimage is just around the corner and it would be a shame for visitors to come here and see what we see and live with every day. Potholes to fall into.
Posted by jack (anonymous) on July 3, 2008 at 10:04 a.m. (Suggest removal)
i know everyone is proud and so happy come on jobs
Posted by Krogers (anonymous) on July 3, 2008 at 10:55 a.m. (Suggest removal)
This will make Rentech's stock jump up
Time to buy
Their stock has fluctuated lately from 80 cents to $2.25 back to $1.75
I am proud our Co Board of Supervisors is pushing this deal. Our country needs alternative fuel sources and Rentech can convert low grade hydrocarbon to high grade hydrocarbon. We need the jobs.
It's a win - win deal, or a loose - loose deal. So let's make it a winner by buying their stock and helping them get set up.
Posted by GEORGE (anonymous) on July 3, 2008 at 10:59 a.m. (Suggest removal)
THANKS YOU SUPERVISORS NOW GIVE THE MONEY TO LAW ENFORCEMENT TO KEEP CRIME DOWN IF WE KEEP HAVING SHOOTING WE WILL NEVER KEEP INDUSTRIES COURT NEEDS TO HELP POLICE AND PUT THUGS IN JAIL
Posted by gemccull (Gary McCullars) on July 3, 2008 at 1:59 p.m. (Suggest removal)
The complainers/naysayers have not gone away!
ND has not published the details of the closing.
The purchase of the IP site is an insignificant part of the total transaction.
Rentech has not demonstrated that it can produce at the Colorado R&D site. At least, one would figure that a news release would be available if it could.
There is still a BIG issue about who will fund 4 to 5 billion for the Natchez plant.
I do hope that Rentech makes it but there are some high hurdles for it to jump over!
Posted by EnKiKur (anonymous) on July 3, 2008 at 2:52 p.m. (Suggest removal)
The most curious thing about the Rentech project is that the federal says the Rentech plant will have to produce 30 times what Rentech says it will be capable of at Phase 2:
A CTL plant requires several decades of coal reserves to justify construction. Given the economies of scale required, 30,000 barrels per day is regarded as a minimum plant size. Coal reserves of approximately 2 to 4 billion tons are required to support a commercial CTL plant with a capacity of 70,000 to 80,000 barrels per day over its useful life [62]. Capital expenses are estimated to be in the range of $50,000 to $70,000 (2004 dollars) per barrel of daily capacity. The front-end (coal handling) portion of a CTL plant accounts for about one-half of the capital cost
Energy Information Administration website:
http://www.eia.doe.gov/oiaf/aeo/otherana...
Posted by racehorse (anonymous) on July 3, 2008 at 3:39 p.m. (Suggest removal)
Good job Natchez...Henry, Mike, etc.
Posted by EnKiKur (anonymous) on July 3, 2008 at 5:20 p.m. (Suggest removal)
Can't buy gas, but the Lords of Supervision can put 370 thousand from a land sale into a rainy day fund, and then put another 2.5 million (3 million minus the .5 million the railroad trestle won't cost the county) into that rainy day fund as well. Just how much is in that rainy day fund?
Some bank somewhere must be pretty happy with the Board of Lords. If I were that bank, I'd take that money and buy short term treasury notes and collect interest from the federal taxpayers. And since any piece of debt is also money, I'd list that 2.5 million pus the the 370 thousand as both a liability and an asset and loan that 2 million 870 thousand out to anyone who still has credit, if anyone like that can be found. Heck, I might even loan it to the county for the shortfall at the hospital.
Posted by natchezone (anonymous) on July 4, 2008 at 8:46 a.m. (Suggest removal)
What about the recreation that has been such a topic in the past?
Posted by greenupnatchez (anonymous) on July 8, 2008 at 11:55 a.m. (Suggest removal)
Rentech is not feasible. It is a dirty industry from the start. Where are they going to store all that coal? How are they going to get it on land? As Enkikur says to be feasible they have to produce a hell of a lot of "cleaner" burning diesel. I foresee a band of black from the river to old IP right through Bellwood Country Club. And for the record I'm totally opposed to Rentech or any other refinery coming to our area.
Posted by NTZ1979 (anonymous) on July 9, 2008 at 10:34 p.m. (Suggest removal)
Sayitloud, I agree! FIX THE STREETS! Send me a check for a front end allignment!!!
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