Renewable Energy Group broke ground on its new Emporia biodiesel plant in a ceremony Tuesday.
Actual construction work will begin in about two weeks, according to Chief Executive Officer Jeff Stroburg. The company expects to have the $70 million plant up and running by September or October of 2008. Once completed, it will be capable of making 60 million gallons of biodiesel fuel a year, using soybean oil supplied by Bunge.
“You can name just about any state in the union and biodiesel from this plant will probably find its way there eventually,” Stroburg told an audience of around 60 people at the ceremony.
The plant will employ about 30 people with an estimated payroll of $1.3 million.
Announcements like this are becoming a habit for both REG and Emporia. Last week, the company announced it was starting construction on a 60-million gallon biodiesel plant near New Orleans. About the same time, Emporia announced it had recruited Hill’s Pet Nutrition to town, with a plant to be built not far from REG.
City Commissioner Bobbie Agler said the recent successes had taken a lot of work from the community and particularly the Regional Development Association of East-Central Kansas, the city’s industrial recruiter.
“You get bites and you can’t land the fish, and then all of a sudden, bang-bang!” Agler said.
The REG plant will be built east of Norfolk Iron and Metal, in southeastern Emporia. Stroburg said the site was ideal, both because of its central location in the Midwest and because of its proximity to the Bunge plant. A pipeline will connect the two plants to provide the soy oil.
“REG has been a market leader in biodiesel,” said Larry Clark, executive vice president of Bunge North America. “We’re going to leverage their experience and our expertise to hopefully improve both companies together and ... the community.”
“The community of Emporia continues to be strong supporters of us and we appreciate it,” he added.
Mayor Julie Johnson said the plant would help Americans take the first small steps toward energy independence, using domestic crops for fuel instead of foreign oil.
REG officials have said there should be no noticeable noise or smell from the plant. What is noticeable, Stroburg said, is the reduction in vehicle emissions by cars that use the fuel.
“If you get behind a city bus burning a 20 percent mix of biodiesel ... it doesn’t burn your eyes and it smells a lot like french fries,” he told the audience at the site, getting a chuckle.
daveedailey (anonymous) says...
I would like honest answers from real people. Is this company hiring local companys for their project such as construction, cement, heating and cooling, electrical? You get my drift. Our fine commissioners yell shop Emporia, so I would like to know how many of our local companies get to be involved in this project. They hired out of Topeka for the rec center repairs. Now, talk about forked tongue! Another question on my mind: How many of their CEOs our planning on moving to Emporia?
June 27, 2007 at 9:36 a.m. ( permalink | suggest removal )
etown (anonymous) says...
Dave - 1) Are the corporate headquarters for REG located in Emporia? No, thus you probably won't be seeing the CEO moving to Emporia anytime in the near future. Not aware of many executives that work from satellite locations. 2) Are there businesses in Emporia qualified do the work that can submit a competitive bid? I'm sure there are some and, assuming they have a competitive bid, will get some of the work. But, I'm guessing there is some speciality work to be done here that can't be handled by every single contractor in Emporia. Keep in mind there is a bid process and most companies aren't out to lose money by awarding contracts to the highest bidders. Oh yeah, lets not forget this company is actually building a plant and providing jobs in Emporia when so few companies are.
June 27, 2007 at 12:02 p.m. ( permalink | suggest removal )
JayJazz (anonymous) says...
Well said etown. I am sure Dave would be complaining just as much about the same people if Emporia had not acquired all of the recent contracts for new business. There is just no pleasing some people. Instead of whining about them lining their pockets, it would be "they are worthless because they can't bring business to Emporia". Incentives and tax breaks are the name of the game for bringing new businesses to an area, we ought to be glad that Emporia has shown the resources and willingness to do it.
June 27, 2007 at 12:46 p.m. ( permalink | suggest removal )
daveedailey (anonymous) says...
I have not seen where they (company or city) are hiring any locals yet! Would the bids be a matter of public record so that we all can see? There are many qualified businesses here, so I believe they should have first chance and wouldn't they not have the chance to match an outside bid? Remember, we keep hearing shop Emporia, so lets also hire Emporia or does Emporia hold double standards on different things (lack of a better word) going on in our town? Just because their corporate headquarters are not located here does not mean they can not live here. Why would they not want to? After all according to the city run officials everything is here any body could possible want!
June 27, 2007 at 12:54 p.m. ( permalink | suggest removal )
Paccifier (anonymous) says...
Afternoon, Dave, So, I see your double standard at work here- You say give the Emporia firms the work at REG- I suppose you have never heard of the low bidder getting the job no matter where they are from? Seems I remember some complaining from you about buying police cars out of town if Emporia could get a better price on the cars, rather than just buying Emporia, So, which is it- let Emporia contractors get the job, or get the low bidder. And if an out of town firm is hired for construction, they'll be bring in folks to live here during the project, they may even hire local, and that means money spent here in town- which means more sales tax receipts while that's going on.
June 27, 2007 at 2:08 p.m. ( permalink | suggest removal )
MelissaE (anonymous) says...
Here's my 2 cents:
While providing the tax incentive(s), one of the incentives should be that the incoming corporation or company is required to use LOCAL businesses to build their new locations.
Then, Emporians get work while the corporation gets tax incentives.
Seems like a happy medium. But then again, that's sort of logical and nothing seems to be that way anymore.
M
June 27, 2007 at 2:17 p.m. ( permalink | suggest removal )
Paccifier (anonymous) says...
I really do not think that's logical, nor does it make good sense. Most work is the United States of this nature is done by competitive bid. You know that means the work will go to the lowest (we hope qualified) bidder. By requiring the corperation building the plant to use local companies, you limit the competition, and the construction costs may go up- so the town's site becomes less advantageous as the construction location- and we loose a business. Because most other communities will not have that type of requirement.
It would be a nice idea, but would loose businesses.
June 27, 2007 at 2:26 p.m. ( permalink | suggest removal )
daveedailey (anonymous) says...
Melissa your point is very well taken and should be very logically put to use. Pac. no where in any of my posts have I discussed police cars! Reread, I just commented that vehicles in Oklahoma are 3 to $5,000 cheaper than here. (Ads from Oklahoma newspapers compared to Gazette ads.) Please get your stories straight. Yes, I was attacked because of what I posted. The come back was what vehicle was I looking at? Of course it was a dead give away for a car salesman! I am beginning to lose faith in what you say. You sound like you could possibly be on one of the commissions and are on the defense. We are just concerned people who would like honest and straight answers to our questions. We are loosing business here, simply because of the things you are talking about. From checking on many things and living here as long as I have this town is full of qualified people to do specific jobs. Yes, I will continue to shope out of town because most of what I need for my job and home are not here. No where have I been given any type of tax break or what ever and I am sure other people fill the same way. If you talk "shop Emporia" then you should be able to back that by applying it to the business that are here such as electrical, cement etc. Do not talk out of both sides of your mouth!
June 27, 2007 at 3:16 p.m. ( permalink | suggest removal )
disgruntledcitizen (anonymous) says...
I find it very hard to beleive that any business in town specializes in buillding BioDiesel plants. Therefore it would be awefully hard to expect everything to be built from an emporia contractor or business. I'm sure there are some things emporia businesses can bid on but how do you expect these businesses to compete with bigger outfits from bigger cities. If you were building a house or business on your own, I'm sure you wouldn't want to spend thousands of extra dollars just to say that you bought within town, unless your one of those people who have too much money to know what to do with?????
June 27, 2007 at 3:26 p.m. ( permalink | suggest removal )
MelissaE (anonymous) says...
Paccifer, I couldn't disagree with you more. Yes, most contracting jobs are done by competitive bidding.....and we can offer tax incentives as long as the competitive bidding is done by contractors who hold business in Emporia. So, then, in actuality, the bids become MORE competitive than if X Corporation from Kansas City can also bid because X Corp. has more money/employees/resources than the smaller Emporia contractor.....obviously, the guy with the most will win the bid.
However, if we bar X Corporation from bidding at all, then 1 of 5 Emporia contractors get a great shot at winning the bid. And then the Emporia contractor is feeding his family, paying his employees who are feeding their families and I would guess that same Emporia contractor would be more inclined to purchase products FROM Emporia and then that guy gets money to run his business and pay his employees......
See the nice cycle? And competition isn't limited, it's just more inclusive of the small-town guy than it is of the big-city corporation.
M
June 27, 2007 at 3:30 p.m. ( permalink | suggest removal )
daveedailey (anonymous) says...
Roll on Melissa!!! You said it very nicely and straight forward. It has always been the more money you have the more you get. Why should big corporations get the tax breaks when they are the ones that can well afford to pay?? The little guy suffers. They should be able to accomodate and be more willing to help the little guy, but around here that apparently is taboo. They like to talk BIG!!!!!!!!!!!!!!( they are not fooling anyone by what they are doing)
June 27, 2007 at 3:40 p.m. ( permalink | suggest removal )
Paccifier (anonymous) says...
It sounds like a rigged circle, not a cycle- forcing people to use primarily Emporia contractors to the disadvantage of the open bid- So you are for double incentives? We try to force the use of local firms and call that an incentive to local businesses, and we give new incentives to the developing firm? This is a free enterprise system- your plan will drive development away from Emporia. Let's face it, in this age, as competitive as things are in capturing new businesses like REG and the Hills plant, these companies are going to want the freedom to deal with who they want- if they want a competetive bid- that ought to be allowed with no limits, if they have a particular company that speciallizes in construction of a specific plant, like REG- they ought to have the right to do so- In your example, Emporia would be accused correctly of limiting competition- and be seen as a less atttractive community to locate in.
Dave- I like your willingness to address issues- I may not agree with you, but that's OK- Now, I may have misunderstood you- I thought that you had said a while back that you got in trouble over bidding on car prices on city vehicles, figured police, since those are bought new-- May have confussed you with someone else making sense- I'm not on the defense- I have no need to be- You have lived here a while- I'm in a 5 generation family here- so I've seen a few things, and heard more- Simple fact is that while I disagree with some things that the city has done, like approving zoning changes next to residential areas, the city is doing what it has to do to get development coming in.
June 27, 2007 at 3:51 p.m. ( permalink | suggest removal )
JayJazz (anonymous) says...
And you can name 5 contractors in Emporia that have the capacity or ability to construct a $70 million bio-fuel plant? Good try, but it's a bad argument. I am pretty sure if you were spending your own money to construct this plant, you wouldn't want to limit who could bid on it. I am sure whomever the contractor is, they will rely on local services in the construction process (ex: it is much cheaper to buy concrete from a local supplier than ship it in from Topeka, KC or wherever).
It's all about common sense, which seems to be lacking with a lot of people who post on this site.
June 27, 2007 at 4:04 p.m. ( permalink | suggest removal )
daveedailey (anonymous) says...
Pac. Yu got it right when you said rigged! What we want is fairness. I still say do not tell me shop Emporia but then they (comissioners) do not try to help the people here to secure a life by fighting for them to get the business. It is like kicking the little guy aside so the bully can have his way. Emporia would do a great service by offering incentives like tax breaks to all small business and such (even working class people) just to say "Hey we want to keep you here!" In stead we bleed the little guy dry. If they are so willing to make deals, then why can they not bring other shopping places (Target, Kmart etc) in here. Just what kind of deal does walmart have with this city??
June 27, 2007 at 4:08 p.m. ( permalink | suggest removal )
daveedailey (anonymous) says...
And oh, Jay, you best believe these so called contractors that you do not think can handle the business, they will not bid if that is the case. Believe me there at least 5 company's here that can handle these jobs, just ask any of them. If they can not they will hire for themselves. Time will tell just who gets what.
June 27, 2007 at 4:20 p.m. ( permalink | suggest removal )
Paccifier (anonymous) says...
Dave- Dave, now it's you who needs to go back and read my posts- I have never said to buy Emporia- While I try when I can there are many things I need that just are not here in town- A target would be nice, but I do not think that it would help expand product availability- And how come you are trying to increase all my TAXES? You are adding incentives to small business on top of the ones that are already being given out- Come on!! Don't knock the City, RDA, or Emporia Enterprises for doing what they are doing, then add on more on top- you may be just as bad as you say they are giving out our money. If you look at a K-Mart- and you say you have been here a while- You know the company would not keep the store up and inviting to comsumers when they were here- they did not want to be here once Wal-Mart came in- and Target does exactly that- They target communities for new stores based on population and area buying draw- which in Emporia will grow as we get more business like REG and Hills and others we hope to see come in.
And oh, Dave, if we limited contractors to Emporia only on these jobs, and they couldn't handle them- do you think that businesses will try to come here once that got out? And some might say they can handle the jobs- but that doesn't mean they can meet what the corperation wants or expects- so we get a bad rep off this idea. If the City, RDA, Emporia Enterprises keep going, we'll get more people to spend money at home when they can, and the small businesses will do better because there is more money circulating in the community - Right?? so increasing industrial business is good for small buiness, and that's what we want- Right? And stop trying to see ghosts in every deal or development in town- Wal-Mart came in and has been here long enough that they are settled here and a part of the community. I don't think some were treated fairly in the location of these plants, and there were some bad decisions, that is true, but Emporia in General will benefit from these new plants.
June 27, 2007 at 5:34 p.m. ( permalink | suggest removal )
netloafer (anonymous) says...
I'm no fan of Wal-Mart, but it must be said they never got any ten year tax break to come here.
And it's also true that a lot of companies have their own teams that do the brick and mortar work, particularly the architectural and engineering stuff. Almost all hire local labor to do the grunt work, etc. That's a lot cheaper than bringing it in on a temporary basis and spending all the T&E money in addition to hourly wages and fringe benefits.
As far as executives relocating to Emporia, I doubt it. Like any enterprise those folks are going to stay at the corporate offices wherever they are. It would make no sense for Ford's executives to move down here if a auto plant were built. They would either transfer a plant manager and management team or hire them locally. But, the executives would stay in the ivory tower.
June 27, 2007 at 5:48 p.m. ( permalink | suggest removal )
admireed (anonymous) says...
Which Emporia Construction Companies could post a $70 million dollar performance bond and have no other work on the books during the next year?
June 27, 2007 at 6:31 p.m. ( permalink | suggest removal )
bdprotheroe (anonymous) says...
In all fairness, the CEO for most any organization will reside in the same location as the operational or administrative headquarters, or at least where the majority of the employee population can be found. The reasoning is simple: the leaders need to have immediate access to employees, as well as, the media, public relations/marketing teams, vendors, business partners, the board of directors, investors, etc. That’s just business in the fast-paced, ever-changing, high-tech 21st Century.
That’s not to say a remote workforce in a smaller community (i.e. Emporia) is not valued or important, and this is demonstrated by the executives via site visits, conference calls, video conferencing, webinars, emails and other forms of instant communication.
In summary, the executive team needs to be in one central location. It is not effective to have key decision makers in remote locations.
Brian Protheroe
San Francisco, CA
June 27, 2007 at 7:33 p.m. ( permalink | suggest removal )
LocalGuy (anonymous) says...
Netloafer you say Wal-Mart didn't get a tax incentive why don't you look back in history when they built the new supercenter and you will see a tax incentive for them and it was probably more than anyone else is getting. Those people that don't think the local companies get a fair shot bidding these projects are idots. They all get the chance but most of them are not going to be experienced enough to get these big jobs. Most of the locals aren't specialized for this type of work. Why doesn't the idot from San Francisco just keep flying his Rainbow flag and stay on the West Coast and leave us alone in Emporia.
June 27, 2007 at 8:55 p.m. ( permalink | suggest removal )
JayJazz (anonymous) says...
LocalGuy - I agree with your business arguments, but lay off bashing on San Fran. Nothing wrong with a guy that grew up in Emporia and still cares about what happens there putting in his 2 cents. Besides, nobody else cares what you do in the closet with your boyfriend...
BITB #328
June 27, 2007 at 9:09 p.m. ( permalink | suggest removal )
emporialifer (anonymous) says...
Wow this got ugly, so let me try to get us back on the topic. When it comes to the arguments I agree with JayJazz, Pac and etown - thank God there are people on here that think this way and have some knowledge about how the business world works (wait - Dave - am I allowed to thank God? haha).
Here is my question for the people who want to limit bidding to only Emporia contractors. Now I'm going to do a little comparison here with another topic, so try to stay with me and my train of thought. The same people who expect our City Commission stick their noses in and force businesses to only use local businesses are the same people who do NOT want the government or anyone else sticking their noses in their personal business by telling them what they can or cannot do with their bodies. Now granted this is a little bit of a stretch, but try to follow. You are all about a woman's right to choose, so what happened to a business owner's right to choose?! Yes the body is a precious thing that a person must take care of, but so is a business - that is a person (or many people's) livelihood. On one topic you want gov't to be involved, but on another you don't. So who is it again that is talking out of both sides of their mouth?! Hmmmmm
June 28, 2007 at 8:38 a.m. ( permalink | suggest removal )
daveedailey (anonymous) says...
I think emporialifer and local need to sit in the corner for awhile. They are business people who think they know and are smarter than the rest of us. If either have sense go back and REREAD, we do not like our taxes on the rise for big business benefit!!!! I am saying the little guy needs the same incentive to just survive and stay here! Emporialifer get off it about the pro choice that is a no win situation and should not be brought up in another topic. You and local need to quit picking on people. There are severeal of us that will not back down from you! The majority of us do not think what is being done in Emporia is fair to the people who already pay outragious taxes and get nothing out of it while the big business (who can well afford to pay taxes) gets out smelling like a rose and profitting their own selves.
June 28, 2007 at 8:57 a.m. ( permalink | suggest removal )
MelissaE (anonymous) says...
It's becoming more and more evident that the word about the Gazette's interactive site is getting out.
LocalGuy: You've shown your true bigotry. It's hard to discuss anything rational with a bigot.
emporialifer: Comparing a woman's body to a business structure is apples and oranges. It would be like comparing Emporia's city government problems to cancer......oh, wait, maybe you do have a point.
M
June 28, 2007 at 10:38 a.m. ( permalink | suggest removal )
emporialifer (anonymous) says...
Dave,
Once again - simply because I do not agree with you does not mean I am picking on you - I am simply making a comparison. I think it is good for you to see things from a business perspective because to make logical conclusions you have to try to see things from all sides, so without a business perspective - how can you so quickly judge? I don't think it's right for you to just jump to such horrible conclusions (basically calling our city commissioners crooks) - do you have specific proof of this? If not, then don't say it. Kinda like our lovely judicial system - shouldn't people be considered innocent until PROVEN guilty.
July 2, 2007 at 10:46 a.m. ( permalink | suggest removal )
open_eyes (anonymous) says...
So once the plant is built, who's gonna work there? Just because a business is building in Emporia doesn't guarantee they will use "local". Or will they import some cheaper labor? BioDiesel sounds kinda dirty and smelly, there might be some jobs there "the locals don't want to do".... or even if they DO want the jobs, the plant could get alot richer by bringing in cheaper labor and then using that same old tired excuse. It's all about the $$$$$$$$....
October 19, 2007 at 2:14 p.m. ( permalink | suggest removal )
suzyQ (anonymous) says...
kind of a nice 1,2 punch with Davie and her daughter mellissa. local people should get the bids, even if they aren't the lowest? thought this country was built on open market?
October 19, 2007 at 2:27 p.m. ( permalink | suggest removal )
create (anonymous) says...
bdprotheroe is right: "the executive team needs to be in one central location. It is not effective to have key decision makers in remote locations."
Here's another reason: My daughter, a hometown Emporia girl, is an executive vice president of a major company and lives in Chicago. Since she must travel several times a month to make site visits, she needs to be near a major airport, at least closer than what we can offer at KC.
October 19, 2007 at 6:25 p.m. ( permalink | suggest removal )