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Nov. 15 2021 Grand Forks Fufeng Group Presentation

Fufeng Group plans to build a large corn wet mill processing plant in Grand Forks County, North Dakota. The project will directly employ over 200 people and generate over 750 total jobs. It will require significant infrastructure investments from both Fufeng and the city, and provide economic benefits through job creation, tax revenues, and agricultural demand.

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Joe Bowen
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2K views

Nov. 15 2021 Grand Forks Fufeng Group Presentation

Fufeng Group plans to build a large corn wet mill processing plant in Grand Forks County, North Dakota. The project will directly employ over 200 people and generate over 750 total jobs. It will require significant infrastructure investments from both Fufeng and the city, and provide economic benefits through job creation, tax revenues, and agricultural demand.

Uploaded by

Joe Bowen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Fufeng US

Largest private
investment in
Grand Forks County
Who is Fufeng Group?
• Fufeng Group Limited is a global
Fufeng Group leading bio-fermentation
company.
at a glance
Fufeng Group
at a glance
What will Fufeng build?
• Corn Wet Mill Processing Plant
manufacturing primarily food
Fufeng Group additives, animal feed and other
at a glance products
• Primary products include corn
starch, liquid dextrose, high fructose
corn syrup, amino acids and corn
proteins
Total Employment & Wages
(Direct, Indirect, and Induced)

Construction: Total of 1,000 at $41 million


annually for 2.5 years
Jobs and
Operational: Total of 758 at $46.62 million
Employment annually
~233 directly employed at facility
~525 indirect and induced

Project 53 additional school children


Site Area: ~370 Acres
Corn Feedstock: 25 million bushels
Natural Gas: 36,000 DecaTherm per day peak, 12,000,000
annually at 450 psi in 16” pipeline

Key Site Water: 6.6 Million Gallons per Day average demand

Considerations Wastewater: 3.1 Million Gallons per Day average discharge


Electricity: 15 MW back-up power reserve on 115 Kv line
Rail: will serve 50 inbound cars and 180 outbound cars per
week

Road: 877 inbound and 403 outbound trucks per week


How did we get here?

 June 2020 – RFP Response (50 competitive sites)


 October 2020 – Initial Site Visit (4 competitive sites)
 March 2021 – Community Site Visit (3 competitive sites)
 July 2021 – Finalizing Proposal (2 competitive sites)
 November 2021 – Grand Forks Selection
Project Site
City Infrastructure/Services Summary
Cost of City Infrastructure/Services Summary
Total Estimated Cost of New
City Infrastructure Component Infrastructure Description
Infrastructure

Potable Water Transmission Main Looping $1,300,000 Loop 16-inch transmission along 27th Ave to Washington (approx. 6,300 lineal feet).

Site Access Improvements - 27th Ave N $5,400,000 Includes new classified paving section (approx. 4,800 lineal feet).

Assessed valve of ‘standard’ sanitary on 27th that will be incorporated as part of the
Standard Wastewater Collector – 27th Ave N $850,000
corridor improvements. Separate from sanitary pump station and new force main.

Assumed Peony funds all onsite-improvements. Stormwater improvements per current


Stormwater Management - 27th Ave N $1,500,000
area Master Plan.

Final cost depends on source water selected by Peony. Low end represents raw water
Raw / Pretreated Water Supply Improvements $9,600,000 - $28,600,000 with single pipeline from GFRWTP to Peony site. High end represents pretreated water
with dual pipeline from GFRWTP to Peony site.

Includes new paving section, sanitary, and storm improvements. (approx. 1,500 lineal
33rd Ave Pavement and Utility Improvements $820,000
feet)

Includes cost of new sanitary pump station, new force main, and single improvements
Wastewater Utility Improvements $66,000,000 project combining Phases 1, 2, and 4 from the recently completed GFWWTF Facility
Plan.

Total – Low End $85,470,000 Assumes raw water – single pipeline

Total – High End $104,470,000 Assumes pretreated water – dual pipeline


Business Support Programs & Incentives

 Payment in Lieu of Taxes (PILOT)


 $10 Million in State Natural Gas Infrastructure
 TBD State Support for Infrastructure Funding and Financing
 City of Grand Forks off site infrastructure investment – $85-$104 Million
 $3.0 Million in County Support for Wastewater Infrastructure
 Corporation Income Tax Exemption
 Sales and Use Tax Exemption (Building materials and equipment)
 North Dakota New Jobs Training
 ND PACE Program
Payment in Lieu of Taxes (PILOT)

 Years 1 - 10 exemption at 90%


 Years 11 - 20 exemption at 75%

Annual Property Tax Tax payment with 90% Tax payment with 75%
Liability w/o Exemption
Exemption (Years 1-10) Exemption (Years 11-20)

Phase I $5,900,000 $590,000 $1,475,000

Phase II $2,443,000 $244,000 $611,000

TOTAL $8,343,000 $834,000 $2,086,000


Payment in Lieu of Taxes (PILOT)

Tax Revenue Once Total Tax Revenue Over Average Annual Annual Proceeds
Operational 25 Years Proceeds (yrs 25+)

School
$188,800 $19,565,000 $720,100 $2,670,000

City
$182,900 $18,954,000 $697,600 $2,586,000

County
$147,500 $15,285,000 $562,500 $2,085,700

Park
$70,800 $7,337,000 $270,000 $1,001,100

All Entities
$590,000 $61,141,000 $2,446,000 $8,343,000
Discussion

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