Submitted by Suanne Z. Thamm
Reporter – News Analyst
September 7, 2016 2:00 p.m.
LignoTech Florida, LLC has been working with Fernandina Beach city staff since February to draft a development agreement that would secure Fernandina Beach City Commission (FBCC) approval to proceed with plans to develop and permit a proposed lignin plant on property owned by Rayonier Advanced Material on Gum Street. At their September 6, 2016 Regular Meeting, the FBCC held the first of two public hearings on this matter as required by state law.
The FBCC did not take action on this matter following the public hearing, other than to announce the second public hearing for October 4, 2016. The sequencing of the public hearings and approval process is related to intervening meetings of the city’s Planning Advisory Board (PAB) and FBCC to consider changes to the city’s Comprehensive Plan and Land Development Code. Those changes must be formally approved to allow the FBCC to approve the proposed development agreement.
Three speakers provided input to the commissioners during the public hearing. The first, Mark Homans, recapped the proposed project, its timeline and benefits. Manager for Special Projects at Rayonier Advanced Materials Fernandina Plant, Homans reminded commissioners that this project was first introduced to the community as a concept over a year ago.
Homans said, “In June 2015, this potential venture was announced and the engineering commenced to develop the Concept Plan. In January of this year we met with county and city commissioners to review the project, and as public interest grew, we held an open house which 200 people attended. We also provided a presentation for the commission in February and satisfied other requests along the way. In February we started the Site Plan Review process with the City Technical Review Committee and began drafting this Development Agreement. Over the last seven months we continued our due diligence efforts with the City and County while providing transparency to the community. We had to make a course correction along the way and the project has experienced some schedule delays; however, in the end you have a solid project that is supported by the majority of the community.”
Homans listed the benefits that the proposed development will bring to the community:
- The opportunity to recruit a well-respected, green, European company to the community.
- A capital investment of $110-$130M for a facility that is co-located and remotely located on an existing industrial use.
- A direct financial benefit in ad valorem taxes that was estimated by the tax appraisers office and an independent third party to provide $6.5MM for the City of Fernandina Beach, and $7.4MM for local schools over the next 20-years.
- An indirect financial benefit from this operation estimated by an independent third party to provide $28M to the local economy on an annual basis.
- 50-60 new jobs paying over 150% of the average wage in the county, including S.T.E.M job opportunities.
- The majority of the new jobs will be sourced from the local communities providing an opportunity for citizens to live and to work here.
- This facility provides a higher and better use for a mill by-product, and these new commercial products can serve as a replacement for synthetic and petroleum products around the world.
- An estimated reduction in total local air emissions in the amount of 1,200 tons per year of non-GHG [Green House Gas] emissions and greater than 50,000 tons per year in GHG by using natural gas in lieu of burning this material.
- The proposed project is aligned with the vision of the City to continue supporting a diverse economy and the long history of the working waterfront.
Homans asked for commission support reinforcing staff opinion that the development agreement addressed the general principles and provides a path forward to make this a safe and successful project.
Frank Santry also addressed the FBCC. He said, “I’m here to address continuing support for this project, but with a caution.” Santry, a retired lawyer, expressed technical concerns relating to coordinating and properly sequencing dates within the agreement. He also spoke to an apparent difference in language between height restrictions with respect to free board in the development agreement and that proposed by the PAB working group. He suggested that there might be some reconciliation of these discrepancies following PAB and FBCC meetings on September 14.
Joan Cory, a Historic District resident, said that it will be wonderful that the city will receive tax revenues from the proposed project. She said, “I am just a little concerned that throughout this whole discussion, I have not really heard anybody mention or discuss how this project will affect the people who live [near the facility] in terms of air quality, noise, et cetera.” Cory said that there is a LignoTech facility near Rothschild, Wisconsin, that is similar to the one proposed for Fernandina Beach.
She also expressed concerns about the proposed covenant running with the land, and the possibility—“maybe practically impossible”—that the property might be leased or sold in the future to another company that would not have the same concerns for the welfare of the city and its residents.
City Attorney Tammi Bach addressed the public concerns. She said that the term of the agreement is ten years, after which it expires. “The development agreement,” Bach said, “in effect locks in permitting fees” and clarifies the approval process for the term of the agreement. Bach said that the documents attached to the plan, the concept document and the site plan, rule out another operation moving in under the same agreement.
Mayor John Miller added that he had actually called the mayor of Rothschild, who reported that his city has had a very good relationship with LignoTech.
Commissioner Len Kreger reinforced that all of Santry’s concerns were being addressed and would be clarified by the second reading on October 4. In response to Cory’s concern, he said that air quality has been addressed, and that it will actually be better with the new plant’s operation, adding that there will be more discussion as plans move forward.
Commissioner Tim Poynter moved that the second and final hearing for this item be set for October 4. Kreger seconded his motion, which passed unanimously.
Editor’s Note: Suanne Z. Thamm is a native of Chautauqua County, NY, who moved to Fernandina Beach from Alexandria,VA, in 1994. As a long time city resident and city watcher, she provides interesting insight into the many issues that impact our city. We are grateful for Suanne’s many contributions to the Fernandina Observer.