The purchase of OmniSource by Steel Dynamics (SDI) should give Fort Wayne officials reasons to pause in their consideration of purchasing of the old OmniSource property. Until the final OmniSource/SDI agreements are signed, approved, and in place no one knows what affect this may have regarding the old OmniSource property on North Calhoun St.
The OmniSource property is being offered to the city of Fort Wayne for $4.3 million. This former junkyard and scarp metal processing plant ground has never had an independent study completed for environmental impact evaluation. If the property is purchased it could pose a serious tax liability to the taxpayers of Fort Wayne. This would come from needed tax dollars to clean up the site
While some proponents of the North River Project claim that some areas of the OmniSource property may not need to be cleaned up. They offer the proposal, that if certain areas are covered with cement or other hardened materials those areas would not need cleaned.
There are no firm design plans for the property's use. What part would need to be cleaned up is not a valid statement because it is a total unknown. The need for water lines, sewer pipes, electric lines, telephone lines, and cable lines to be buried all over the site is real and would disturb the present soil. Additionally it is unknown if any leaching of chemicals is such that other properties may need to be cleaned up. A reasonable person would figure out a property to be used at some later date, with no firm design use, would need to be 100% cleaned up.
The Environmental Protection Agency continues to push that former sites having environmental issues be cleaned up. It is unknown if the EPA would even financially participate in a clean up of the OmniSource site. The order could come that Fort Wayne will have to clean it up. Depending on the Federal or Indiana state governments to pay for even part of the clean up is a high risk. We do not know if in future years, even if we just let the property set, the laws will not change that require to clean it up even though we elected not to use it.
Our local leaders need to enter discussions with SDI regarding the future of Omni Source operation on the east side of Fort Wayne as well. Because of the merger, this OmniSource operation could be closed or downsized. In a conference call with investors today, Keith Busse, of SDI stated part of the savings they will realize is reduced costs of transportation of scrap ferrous metal. Will SDI start processing scrap metal right on their own sites and the need for the Fort Wayne site will be greatly reduced or not needed at all?
OmniSource's physical operation here in Fort Wayne may be large but it is just a small fraction of the company's overall operation. OmniSource largest share of business comes from being a broker in the scrap metal business.
SDI and OmniSource are both locally owned and several major stockholders of SDI live in our community. How they treat their fellow neighbors will tell us a great deal, if they continue to push this sale of this property without cleaning it up first!
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3 comments:
The property in the North River area formerly occupied by OmniSource is not owned by the company. It is owned by individuals in the Rifkin family.
That is interesting. Do you know when it changed hands? The last tax bill, along with some other parcels where sent to their Corp Office on West Jefferson. I do realize it could be sent their in some even in some other name.
The question has to be asked was it sold from OmniSource to indviduals or to a company that was formed for just this transaction. Hence, if the property has issues the company that now owns it has no other assests to go after in trying to clean it up? That would make this deal even more scary.
I say if it LOOKS like a duck...and it QUACKS like a duck...and even FLOATS like a duck...
It must be a "________"
B.G.
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