Halifax County Economic Development Director Cathy Scott said Wednesday the county supports the project. She said, however, “From my perspective the project is still confidential.”
KapStone in Roanoke Rapids Wednesday referred questions to a public affairs spokesperson who has yet to return phone calls left Wednesday and today.
(A copy of the building permit issued Wednesday is included as a PDF at the end of this story)
Documents which are part of the public record, including permits already issued by the city as recently as Wednesday, show the Arkansas-based Price Companies Incorporated propose a new wood yard at KapStone.
A representative from Price Companies did not immediately return phone calls left Wednesday and today.
According to notes from a January 13 meeting on the project, the proposal would consist of taking down the existing KapStone log crane and installing two new cranes, a log conveyor and a new 36-by-80 building with a shop.
The project would additionally consist of a tunnel system — protected by a sprinkler system — under the chip conveyor.
According to the notes, the new operation is intended to improve efficiency by debarking more logs at a time and provide 80,000 tons of wood chip storage at a pile height of 90 feet. Those chips would have a rotator which keeps them moving to prevent the build-up of gasses.
The notes indicate the project represents a $50 million investment.
Under the proposal, The Price Companies have a 20-year contract with KapStone and Price would operate the wood yard with its own hired employees.
While the county has said the proposal would mean 16 jobs, the meeting notes show Price anticipates hiring 15 to 19 employees to work in shifts and KapStone has discussed reassignment of its current employees within its own operations.
On February 18, the state Department of Energy, Mineral and Land Resources issued Carolina Chips Incorporated a certificate of approval for its erosion and sedimentation control plan.
On March 8, the city's planning department issued a zoning verification letter stating “the proposed operation of a 'chip mill' is a permissible zoning use in the I-2 Industrial District under the land use classifications of 4.1 and 4.2.”
On April 19, the city issued a building permit to Carolina Chips for the office and on April 25 issued a plumbing permit for the office.
On May 2, an engineer sent the department a letter stating the footing inspection found the footing for the office building was in compliance with design drawings.
On Wednesday, Carolina Chips was issued a building permit for the equipment foundation for the phase 1 stacker reclaimer for the wood processing yard, which represents a $2.5 million investment and a permit fee of $7,500.
In two previous meetings of city council, Planning and Development Director Kelly Lasky has included updates on the project in her January and March monthly highlights to the panel.
The proposed $700,000 the county agreed to spend and the city is considering spending is not a guaranteed payment, the county resolution on the matter said.
According to the county agreement, the county will provide the incentive grant to assist the company in the location of its manufacturing operations. Subject to the job creation and job retention and subject to the ad valorem taxable investment creation and retention requirements the county would pay $140,000 on January 15 over five years.
The company must also hit real estate, machinery and equipment and ad valorem tax marks, which are outlined in the table below.
If the company fails to create at least 90 percent of the cumulative number of jobs no grant payment will be made.
The same applies to ad valorem taxable investment goals.
