Port of Longview officials warn that an appeal of a Washington state Superior Court eminent domain ruling could delay construction of a proposed grain elevator at the port by up to two years.
In December, the court ruled that the $150 million grain elevator project met the “public use” and “public necessity” criteria for the port to invoke eminent domain to obtain a six-acre parcel owned by RSG Forest Products. Since the ruling, the port had been negotiating the sale of the parcel with the Kalama, Wash.-based RSG.
RSG, which purchased a 54-acre parcel at the port in 2005 with plans to build a sawmill, argues that the loss of the six-acre portion of the property would render the sawmill plan unprofitable. The port officially condemned the six-acre parcel last October.
Last week, port officials for the fourth time since 2006 extended a lease option to EGT, the Bunge North America and Japan-based Itochu partnership planning to build the grain elevator on the six-acre parcel. EGT is expected to sign a 75-year lease once the property issue is settled.
As part of the development, the port plans to fund the building of a new $6 million berth at the facility to service EGT’s business. The port has projected that the new terminal, when completed, would handle 30 million to 35 million metric tons of grain exports per year.
Source: American Shipper