MN - Orr pursues wood-pellet manufacturer

Orr councilors okayed preliminary work to bring a wood pellet producer and as many as 60 jobs to Orr

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Orr pursues wood-pellet manufacturer
By Tom Klein

Orr councilors okayed preliminary work to bring a wood pellet producer and as many as 60 jobs to Orr.
Councilors agreed Monday to contract with Short Elliott Hendrickson Inc. (SEH) for the services, which will include identifying permit requirements, developing a project schedule, evaluating potential sites for the plant and seeking funding for the project. Cost for SEHs services will be $5,000 with additional fees if SEH proceeds on applications for funds.

The project was brought to the Orr City Councils table by the citys Economic Development Council, which has done some legwork already investigating the projects viability, including a visit to the developers operation in Grand Rapids.

According to EDC member Bill Arthur, the developer wants to expand his operations to respond to growing demand for wood pellets. The plant would also produce animal bedding material. Orr Mayor Dale, who is also on the EDC, said an estimated 35 jobs would be created at the pellet plant and another 25 jobs would be added at a related sawmill.

Arthur said the project had reached a point where expert analysis was required.

SEH economic development specialist Mike Larson, who spent more than 25 years with the Iron Range Resources agency, said the work performed by SEH would help prepare Orr for the project if it proceeds, but also provide valuable information that could be utilized for other development projects should this not move forward.

Both Brian Bruns and Doran Klakoski urged the council to proceed, noting that a delay could lose an opportunity for Orr.

Although councilors initially discussed proceeding only with the first phase of project planning at a cost of $1,000, Arthur urged the council to approve all three stages, noting that there would be an overlap of tasks and it would position the city to respond more quickly if the project moves forward. He added that if any red flags emerged during the process, the work could be stopped.

Weve got a nice tailwind on this project, said Arthur, in urging the council to act.

Councilors approved the contract with SEH on a 3-0 vote with councilors Bruce Black and Ericka Cote absent. Councilor Jon Long requested that SEH provide monthly updates on its work, which Larson agreed to do.

In the meantime, the EDC will continue its investigation of the projects viability with assistance from the Iron Range Resources agency. The IRR may also be able to provide some funds to assist with the citys preliminary work on the project.

Additional Information

Web Site: http://www.timberjay.com/current.php?article=5469

Category: Forestry>Wood Pellets

Region: Minnesota

Ad Running: 7/18/2009-8/17/2011

Ad Posted: 7/18/2009 10:59:11 AM

Ad Viewed: 610 times

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