County trades dirt for $500K; move a show of support for von Drehle company

Published 12:12 am Tuesday, May 20, 2014

NATCHEZ — The Adams County Board of Supervisors voted Monday to trade $50,000 worth of dirt for $500,000 in grant funds for a local industry.

Natchez Inc. Executive Director Chandler Russ brought the request to the board Monday, saying the von Drehle corporation had completed an engineering study at its property and determined it needed an additional access road.

Von Drehle purchased the former Mississippi River Pulp in early 2013 — three months after MRP was shuttered — and has committed to investing $80 million and expanding the line of products produced at the plant. The plant currently produces pulp products, but will eventually manufacture paper.

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The new access road engineers have called for will tie in to the back side of the plant from Majorca Road, allowing a better flow of product and to accommodate the new equipment needed to expand the product line, Russ said.

To fund the road, Natchez Inc. and von Drehle approached the Mississippi Development Authority, and was able to secure a $500,000 grant for the construction of the new road, Russ said.

The grant would require a 10 percent match from the county, which Russ said Natchez Inc. had requested the MDA to allow to be met in-kind.

“There would be no out-of-pocket cash match for the county,” he said. “Across the road is a large hill that the St. Catherine Creek Utility Authority owns, and we are going to take some of that hill down. The dirt borrowed will be the match.

“The total engineering estimate is $542,000, and the grant from the MDA is for $500,000, so we are within the match proceeds for that.”

The St. Catherine Creek Utility Authority is an independent government board created to manage liability and wastewater sites associated with the former International Paper site. The supervisors appoint the utility authority’s unpaid members, and Russ serves as its president.

Supervisor Mike Lazarus said harvesting the dirt from the St. Catherine Creek Utility Authority’s hill could ultimately enhance the value of the property.

“When you level out that hill, it will make it of use in the future,” he said.

To approve participation in the grant, the board had to adopt three resolutions, said Allen Laird with the Southwest Mississippi Planning and Development District.

The first resolution authorized the MDA to proceed with the grant process, the second provided for the county to provide the match in-kind and the third was a memorandum of agreement for Adams County.

The memorandum of agreement states that if von Drehle doesn’t meet their financial commitment and create a requisite number of jobs, it will be required to pay back the funds, Laird said.

Von Drehle currently has 31 employees, Russ said, and is committed to bringing an additional 80 to the area.

“They have put in their order for the (new) machinery, and it has about a 10-month build-out period, which is good because this can be built while that is going on,” he said.

The board also voted to allow SWPDD to advertise for engineering services for the project.