Pharos-Tribune

June 25, 2013

Fertilizer facility coming to Logan

Plant will create up to 17 jobs.

by Mitchell Kirk Pharos-Tribune
Pharos-Tribune

---- — Construction on a new fertilizer plant expected to create up to 17 jobs is set to begin south of Logansport later this summer.

A ground-breaking ceremony was held Monday afternoon for Sagamore Warehouse LLC at 2179 Stoney Pike, where construction of the $6 million, 24,000-ton dry facility will begin this August and is estimated to conclude by the first of next year.

“It’s a good fit for us,” said Chuck Shelby of Lafayette-based Sagamore Ag Source, a managing partner with Sagamore Warehouse.

Shelby went on to say the facility will cater to clients in northern Indiana and parts of Ohio.

The plant will be utilizing the Winamac Southern Railway line, now owned by U.S. Rail, that runs near the site.

Jim Hedrick, also of Sagamore Ag Source, said product will come in on rail and be processed at the plant before leaving on trucks to distribution points or farmers themselves, adding the facility will supply clients within a 100-mile radius.

The plant will employ four full-time positions and up to five part-time positions, according to a press release from Logansport Mayor Ted Franklin’s office. At the groundbreaking ceremony, Franklin said up to 17 jobs could ultimately be created.

Addressing concerns brought on by an explosion at a fertilizer facility in Texas in April that killed 15 people, Shelby and Hedrick went on to say the fertilizer produced in the plant is not the kind that will explode, explaining that Sagamore’s product requires a different kind of nitrogen. The two also said the facility will distribute dry fertilizer, with the possibility of adding liquid fertilizer in the future.

The facility will be made up of two connected buildings, Hedrick said, with the plant being about 100 by 300 feet and an office area spanning about 70 by 140 feet.

The site’s location, which was a former rail yard, is in an area the city is planning on annexing, Franklin said. He was unsure of exactly how much tax revenue the business is estimated to bring in but said equipment classified as real property will be the source of it, saying there will be “some tax increment” generated.

Development is being funded by Sagamore Ag Source and other partners and will be conducted in two phases — the first requiring $2 million and $4 million for the second.

At the groundbreaking ceremony Monday, Shelby said Sagamore Ag Source has been planning this project for more than two years.

Hedrick praised Logansport and Cass County officials for coming together and assisting the company with finding a site, adding that the company was seeking a location in Lafayette or Logansport.

“We got more outreach here,” he said.

Mitchell Kirk is a staff reporter at the Pharos-Tribune. He can be reached at 574-732-5130 or mitchell.kirk@pharostribune.com.