When the Allens Country Plant ramps up production, the sewer plant might see a nearly 70 percent increase in daily wastewater treatment compared to 2013. City officials said the sewer plant can handle it.
A plan for the city to receive up to 2 million gallons of wastewater daily from the Country Plant was approved by the Board of Directors in a special meeting Wednesday. In 2013, the sewer plant treated 2.8 million gallons per day -- which does not include the wastewater from the Country Plant.
Background on Country Plant Sewer Issues
• In July 2013, neighbors downstream of the Country Plant complained of dirty water. In mid October 2013, a county environmental officer filed a complaint to the state. State inspectors found that wastewater application sites didn’t have enough vegetation and inadequate equipment to measure applications.
• In late October 2013, Allens filed for Chapter 11 protection in U.S. Bankruptcy Court for the Western District of Arkansas.
• In February, Sager Creek Acquisition Corp., owned by investment funds controlled or advised by two of Allens’ creditors — Sankaty Advisors LLC and GB Credit Partners LLC — bought Allens with a bid of $123.8 million. The total value of the deal was almost $160 million.
Public Hearing
A public hearing will take place at 6:15 p.m. Tuesday at City Hall regarding a grant application for federal assistance for Allens. Also Tuesday, the Board of Directors will decide on whether to apply for $1 million in federal assistance for Allens.
Allens will build a six-mile-long pipeline from the Country Plant near Fairmount Road east of town to the city's 21-inch sewer interceptor, southwest of Tahlequah Street and Arkansas Highway 59. Wastewater from the plant would be pumped through the 12-inch-diameter line to the interceptor.
Allens plans to invest between $3 million and $5 million on this project and related projects, according to information from James Phillips, chief administrative officer for Allens.
In a statement Thursday, Chris Kiser, chief executive officer for Allens, said that the board's decision will allow Allens to "move forward with our expansion plans with optimism."
"On behalf of the 750 plus associates at Allens, we are thankful to the city Board of Directors of Siloam Springs for their positive vote which will allow for safe, efficient wastewater disposal from our vegetable processing operations. Finding a solution together -- business and government -- allows for the best of situations for continued economic improvement."
Allens has been working with Arkansas Department of Environmental Quality to correct the problem with wastewater disposal. Since January, tanker trucks have been hauling wastewater from the Country Plant to a manhole near the Transfer Station on Ashley Street.
"Siloam Springs is a vital part of Allens past, present and future," Kiser said. "We are pleased that we can continue to be good partners with the city and find solutions that benefit all of Siloam Springs. As we have said in the past, it is a 'new day' at Allens, and we anticipate growth for our business and our footprint here in Siloam Springs."
Earlier this year Allens emerged from bankruptcy with new owners and new management.
City Administrator David Cameron explained that Allens looks to ramp up operations at the plant. With the new pipeline, about 1.5 million gallons of wastewater per day would be sent from the plant to the city. Up to 2 million gallons per day might be sent.
Cameron explained that the city's nearly $25 million wastewater plant was built to handle this. The plant can treat up to 5.3 million gallons per day.
Director Dennis Brown asked about how this new line might impact growth. Cameron said that the area could still add two more subdivisions the size of the existing ones east of Airport Road.
Brown also asked about the line where the wastewater will be received and whether the city would still discharge less phosphorus than it's permitted to put into Sager Creek.
Cameron explained the line where the wastewater will be received has been tested. And the sewer plant would not discharge more phosphorus than permitted. Siloam Springs is one of five Northwest Arkansas cities that agreed to discharge no more than 1 milligram per liter of phosphorus from their sewer plants.
Cameron also said the wastewater from the Country Plant would go through a pre-treatment process before it reaches the city.
Director Judy Nation asked about a time line for the project. Cameron explained that Allens will want to move quickly on this.
"They are trying to rebuild the company as fast as they can," Cameron said.
Director Brad Burns said he hopes other industry sees how the city has worked with Allens.
"This is critical for Allens' success," Mayor John Turner said.
In the agreement, Allens will build and maintain the 12-inch line from the plant to where it reaches the interceptor.
Construction of the project will not cost the city, Cameron said. "There is a revenue side to us." A rate structure is already in place for customers outside the city limits.
Wayne Mays, president and chief executive officer of Siloam Springs Chamber of Commerce, said the agreement shows Allens' investors that it has a great relationship with the city and is working to solve the wastewater problem.
The agreement also opens the door for Arkansas Economic Development Commission to help Allens, Mays said. And this "opens up a new revenue stream for the city."
"It's kind of like dominoes falling," Mays said. "It's a good day for our community."
General News on 06/15/2014