| Over the next 10 years, the Rocky Mountain Sugar Growers
Cooperative will receive a total of $500,000 in LB 840 grant
money for job retention.
The grower-owned co-op will use the money to help retain
200 jobs in the local Western Sugar Co. facilities.
"Were very glad to have the community back us up
with this grant," said Kevin Hall, co-op vice president
and Bridgeport area farmer.
Robert Busch, a co-op board member and president of the
Nebraska Sugarbeet Growers Association, echoed Halls
comments, and added, "The application process went very
well, and were very pleased with the reception the LB 840
committee gave the Rocky Mountain Sugar Growers
Cooperative."
According to Scottsbluff City Manager Rick Kuckkahn, the
grant will be made in installments, beginning with $50,000
within the next two months, followed by $30,000 the second
month. The remainder will be paid out over the next decade.
"If the company for some reason does not continue to
operate, the payments will stop," Kuckkahn explained. He
said the cooperatives grant will be collateralized with
assets, the same as other LB 840 grants.
"Were very careful to inspect all the financial
aspects of the companies when we make these grants,"
Kuckkahn said. "Its a lot of money and were very
careful about how it is spent."
A main factor in the decision to approve the grant was the
impact these jobs have on the local economy.
"At $60 million, that is a significant impact on the
economy of the valley," Kuckkahn said. He cited the cost
of running the bullet trucks used to rehaul beets as an
example. The trucks, which are headquartered in Scottsbluff,
used $1 million worth of fuel last year. "That sales tax
revenue has a major impact on city government," Kuckkahn
said. "The tax will continue to contribute to the fund
that is used to make the grant. Everyone benefits from
it."
The money will be used only for job retention, Kuckkahn
emphasized. "Were not involved in buying shares."
Compared to the HomeStar grant, which amounted to $290 per
employee per year, Kuckkahn said the cooperatives grant is
$250 per employee per year for the 10 years. He also said when
the LB 840 funds are used for new jobs, the target rate is
$500 per employee per year for 10 years.
Kuckkahn said there has been a lot of concern about the
vitality and health of the sugar industry.
"Conditions are not good in the sugar industry at this
place in time, but we are confident and optimistic that a
federal policy will work to resolve the current problems. In
that case, the co-op needs to be in a position to take
advantage of the markets that will open."
The quality of the people managing the cooperative also
gave confidence to the committee, Kuckkahn said. "Their
people are among the best in the industry. They have prior
experience in co-ops that are thriving and a great deal of
respect in sugar industry circles. We think the co-op has a
real solid management foundation in place."
Heading the company will be CEO Larry Steward, a former
Great Western Sugar employee. He retired last year as
president and CEO of Minn-Dak Farmers Cooperative, where he
had worked since 1990.
Western Sugar employees now located in Scottsbluff will
remain here, according to co-op board vice president Kevin
Hall, a Bridgeport area farmer.
The purchase is expected to be completed late next week
when documents are signed in the Salt Lake City office of
co-op attorney Randon Wilson. |