Nevada County Picayune and Gurdon Times Newspaper Archive

CCIC Ponders Land Options

With less than a year on an option for a parcel of land, the Clark County Industrial Council has a problem to ponder.

This parcel of land was obtained by the CCIC for Bowater, a paper manufacturing company. Brown Hardman, CCIC president, told the board recently, the option expires on Dec. 31, 2000 and Bowater has done nothing as far as building its proposed plant.

The CCIC is in the final year of its second five-year option on the land. The property has a 30-foot easement with 2.3 acres of access for the Ouachita River.

The lease, Hardman said, is in the CCIC's name, as is the option on the 2.3 acres.

But, he continued, the problem is the land is in the process of being sold and the new owners won't close until the lease and options are terminated.

There could be a problem down the road if Bowater decides to live up to its commitment and build a newsprint plant in Clark County later on and this parcel of land isn't available.

State Rep. Percy Malone said another option is to find a different spot on the river with access for Bowater. But, he added, Bowater's board of director's won't be meeting until the summer and no decision will be made by the company until then.

Hardman said the family in question is willing to purchase the lease back from the CCIC for $10,000. If the CCIC sells the lease and gets an agreement on another part of land down river, it could protect everyone involved.

Flave Carpenter said there is no need for the CCIC to worry about getting another lease downstream because no one knows what Bowater plans to do.

He suggested the CCIC do nothing at this time other than contact Bowater with the problem and see what the company wants done.

Hardman told those on hand the person buying the property needs something done soon for tax purposes.

He is affected by the 1031 tax free exchange at this time, and a lengthy delay could result in his having to pay tax on the property.

And, he added, the buyer won't close the deal on the purchase until this situation has been resolved.

Bowater, though, still likes the area as a possible location for a newsprint plant, he continued, but won't make a decision until its board meets this summer.

At this time, Bowater is buying smaller plants in operation instead of building new ones. "Unless something changes drastically," Hardman said, "they'll let the option expire this summer."

Malone said the original owners have stated they will not renew the option a third time.

"I feel almost obligated to release it for $10,000," he said, "then if Bowater wants to buy it would be wonderful. We could go down river to other places and it wouldn't be an obstacle if they wanted to buy 1,200 acres."

This particular site, Carpenter said, was surveyed and shown to be deep enough in the river bend for inflow and outflow of product.

By going to a different site, he added, the entire deal will have to be started over again.

Malone said whatever the CCIC decided Bowater needs to have veto power over.

What the CCIC chose to do is contact Bowater, letting them know the situation and seeing what the company plans to do.