Cargill to sell for $6.5 million

0 Comments | La Crosse Tribune, Sep 29, 2004 | by Cahalan, Steve

Cargill AgHorizons said Tuesday it has reached an agreement with the city of La Crosse to sell its downtown river grain elevator to the city for $6.5 million, to help make way for the planned Logistics Health Inc. corporate center.

Cargill AgHorizons, a business unit of Cargill Inc., said it also has signed a letter of intent with F.J. Robers Co. Inc. under which Cargill would negotiate for access to a proposed grain elevator that Robers would build on French Island, along the Black River.

Both transactions are subject to final approval by Cargill Inc., said David Feider, spokesman for Minneapolis-based Cargill. Cargill's world headquarters office was in La Crosse from 1875 until 1909.

The current grain elevator will continue operations until July 31, 2005, after which the city will demolish the elevator and its silos to make way for the new Logistics Health center. The new elevator on French Island is expected to be operating in time for the fall 2005 harvest, Feider said.

"We sent out a letter yesterday to regional grain producers, folks who've worked with Cargill in the past, to let them know this was in the works," Feider said.

"This news today about acquiring the Cargill property is a big deal," Mayor John Medinger said. "This is a huge piece of the puzzle. We acquired it for less than we anticipated."

Medinger said he anticipates the city will reach an agreement for the purchase of the Piggy's on Front restaurant, which also would be demolished to make way for the Logistics Health project. "I'm real pleased with the progress we're making" in negotiating with Gary Roberts, who owns the Piggy's property, and with Chris Roderique, who owns the Piggy's business, Medinger said.

"We do see some light at the end of the tunnel," Roderique said later. "We're working toward the common goal of relocating Piggy's to a beautiful new setting." Roderique said he cannot announce a new location yet.

Don Weber, chairman and chief executive officer of Logistics Health, said Tuesday he expects to break ground for the new corporate center next April and to move into it in June 2006. The site, along Front Street, also will include the cityowned former Listman Mill property.

Logistics Health had 152 employees at its two leased locations in January, has 204 employees today and expects to have about 500 within three years, Weber said.

The company provides medical readiness, emergency preparedness and homeland security services.

It has been expanding its La Crosse work force ever since it signed a federal contract in 2001 to track and coordinate the physical fitness and dental screenings and inoculations for all Army National Guard members and Army Reservists across the nation.

"It's good news for the community," Weber said of Cargill's announcement. "We felt Cargill always wanted to cooperate. They didn't want to hold up growth for the city of La Crosse. They've been here a long time. We're glad they came up with an agreement. They're going to be staying in the community. Everyone wins in this case."

"I'm very pleased they're going to rebuild in the La Crosse area, and to be a part of our community, with the jobs that go along with it," Medinger said. "And it will be good for the farmers."

Many farmers had contacted city officials. "They were concerned with keeping Cargill in the city," Medinger said. "As part of the acquisition, we encouraged (Cargill) to stay in the area."

Medinger said a tax incremental financing district will pay for acquisition, demolition and relocation costs and other improvements, such as streetscaping and extending the River Walk.