City passes ordinance with Nor-Am
Commissioners approved an ordinance to issue Industrial Revenue Bonds to Nor-Am Logistics South, LLC in an amount not to exceed $35 million in order to provide funding for acquiring, constructing and equipping a cold storage facility at 2101 E. Trail St. in Dodge City during its meeting on Monday.
According to city officials, by issuing the industrial revenue bonds, it will be to lease the facility, with Nor-Am Logistics South, LLC paying all costs involved.
"The city will have no financial obligations as the bonds are not backed by the city," city finance director Nicole May said. "Nor-Am Logistics South, LLC will be responsible for repaying these bonds and they requested the issuance of the IRBs to receive a sales tax exemption."
Commissioner Rick Sowers stated the issuance is a common practice for larger projects for companies coming into Dodge City.
"This isn't anything extraordinary," Sowers said.
The ordinance passed with a 4-0 vote. Mayor Joyce Warshaw was absent from the meeting and did not vote.
Commissioners also approved a spare feed and vacuum compressor for the south biofuel Warrior Project from Guild Associates, Inc. in the amount of $188,486.29.
According to director of engineering Ray Slattery, in July and August the Warrior Project experienced considerable downtime or reduced production ability due to two compressors that failed.
"When that occurred, the plant was running at half capacity," Slattery said. "It was fixed, but did take some time. Unfortunately, as soon as that happened, a day or two later another compressor failed.
"We were able to fix that one but as a result the amount of gas produced was 40 percent of the gas produced in 2019."
The purchase will keep the Warrior Project operational in case current compressors fail with delivery of the spare compressors happening in early 2021.
Funding will come from the Warrior depreciation fund.
Commissioners approved the purchase with a 4-0 vote.
Water Wells 22 and 23 were also met with needed repairs due to the stoppage of being able to produce water from broken impeller shafts.
According to public works director Corey Keller, the quote on the repairs came from Hydro Resources in Garden City in the amount of $95,958.18, the lowest of two bids received.
Funding for the well repairs will come from a well rehab budget of $100,000 in the city 2020 budget.
Commissioners approved the well repairs 4-0.
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