Alton Steel CEO names TerraWatt as proposed buyer for mill site

SEATTLE (Scrap Monster): Alton Steel President and CEO Chris Ervin said the company has named TerraWatt as the proposed buyer of the Riverbend Technology Center, the site of the former steel mill that shut down in January, resulting in the loss of more than 250 jobs.

Ervin said the company’s first focus after the shutdown was on employees and their families.

“Our first focus was employees and families... we were probably two to three months into it before we reached out to them,” Ervin said.

Board member cites creditors, benefit to city

Alton Steel board member John Simmons said the TerraWatt offer was the best option available to satisfy the company’s creditors.

“It’s the best thing that, best offer that we have that’s going to satisfy all of our creditors. It’s going to be good for the people of Alton and the city of Alton in general is going to be really good for,” Simmons said.

Alton Steel said buyers from across the country reached out about the property, but TerraWatt’s pitch stood out. One factor was the company’s familiarity with the region, as TerraWatt is developing a data center in St. Louis’ Midtown.

TerraWatt’s Cecilia Dvorak was asked how the company’s experience with the St. Louis Armory project informed its pitch to Alton and Alton Steel.

“I’m not sure that it necessarily shifted the proposal to Alton Steel or the property owner, but it definitely informed our decision on how to initiate the conversation with the community. We wanted to make sure that we had as much transparency as possible on the front end,” Dvorak said.

Water, emissions and noise comparisons

Alton Steel said the mill used 15 million gallons of water a month. TerraWatt said the proposed data center would use 400,000 gallons in a year.

TerraWatt said the data center would have the following environmental impact compared to the plant:

·         99.8% less water use than the current plant

·         81% less emissions than the plant

·         42 decibels of noise generated, compared to the mill’s 90 decibels

A single 200-megawatt block is comparable to the energy needed for hundreds of thousands of homes, according to the script’s production notes.

Projected tax revenue

TerraWatt estimates one 200-megawatt block would pay $17.2 million a year in property tax, according to figures provided in the script. The breakdown includes:

·         $9.9 million a year for the Alton School District

·         $4.2 million a year for the city of Alton

·         $544,032 in electricity tax

Dvorak said the project would not affect existing water or electric service.

“It is not going to impact the water or the electric. We fully intend to pay or the developer fully intends to pay their way,” Dvorak said.

Decision sits with the city

The decision now rests with the city. No applications have been filed yet, and the project would require rezoning.

Alton Mayor David Goins said finding a viable option for the property is critical to the city.

“It’s critical that we find a viable option for this property, it’s critical to the city of Alton that we find a viable solution to the use of this property,” Goins said.

Goins said the potential for thousands of construction jobs and dozens of high-paying permanent jobs comes as the city faces a multimillion-dollar deficit next year.

“Any potential revenue that could potentially come to Alton would be a great benefit and boon to our community, our city, and our infrastructure,” Goins said.

Personal ties to the mill

Simmons was born and raised in Alton, still lives in the city, and said his father worked at the mill. When asked whether the city should approve the project, Simmons said:

“David, I wouldn’t have brought this forward if I didn’t think this was the best potential use for the site and the best buyer for the site.”

The city says no applications have been filed yet. Any plan must go through rezoning, the plan commission and city council, and the city will hire a third-party consultant to review it. The sale would close in 2027.

An open house is scheduled for 6-7:30 p.m. Oct. 27 at the Wedge, 620 E. Broadway.

Courtesy: www.firstalert4.com