Journal of Buiness - July 2021

Page 1

CELEBRATING

July 2021 Volume 20 | Issue 7

YEARS

Darigold picks Pasco for $500M plant By Wendy Culverwell editor@tcjournal.biz

Tourism

Visit Tri-Cities drops membership dues as it pivots to storytelling model Page A23

Business Profile

Mexican ice pop shop’s icy treats keep you cool on hot days Page A35

Real Estate & Construction

Ste. Michelle’s $1.2 billion sale will be felt in the Mid-Columbia Page B1

NOTEWORTHY “Retaining and growing customer relationships and key employee talent are the two of the most important things because if you do those two things well, and lead with integrity and hard work, the financial results and lasting success will come.” -Susan M. Horton, president and CEO, Wheatland Bank

Page A17

Darigold Inc. will build its largest ever milk drying plant in Pasco, cementing the region’s status as one of the Northwest’s leading centers for food processing. The Seattle-based dairy cooperative intends to build a $500 million, 400,000-square-foot protein and butter plant packed with carbon-reducing features on 150 acres at the Port of Pasco’s future Reimann Industrial Center off Highway 395. The port’s commission authorized a $3.3 million purchase and sale agreement at a special meeting July 1. However, the plant will open only after Darigold scrutinizes the impact of Washington’s new carbon rules. “Construction of the facility and the Port of Pasco agreement are contingent upon fair and equitable treatment under all new Washington state environmental legislation, which the company is currently assessing,” it said. The sale agreement gives Darigold 180 days to evaluate how Washington’s efforts to combat climate change will play out in its reported $2 billion business. The policy became law this year and sets the goal of net zero emissions from industry by 2050. Washington’s goals echo Darigold’s own intent to become carbon-neutral by 2050, which it announced in 2020. But until rules to implement the new carbon regulations are written, it is unclear how they will impact Darigold. “It’s a mystery,” said Randy Hayden, the port’s executive director. The deal will be the port’s biggest ever, but until it closes later this year, he cautioned against celebrating. If built, the Darigold facility will be the largest of its type in North America, processing eight million pounds of milk a day after it opens by Labor Day 2023. The port spent a year negotiating the deal with Darigold under the code name Project Ruby although word leaked out prior to the official announcement. The Tri-City Development Council (TRIDEC) is working with the state to determine if incentives might be available to support the company. Karl Dye, president and chief executive ofuDARIGOLD, Page A4

Courtesy Local Bounti Montana-based Local Bounti paid $3.1 million for 28 acres at Oregon Avenue and A Street north of Big Pasco Industrial Park. The indoor ag startup raises lettuce and herbs in high-tech greenhouses.

Montana ag company plans $40M Pasco greenhouse on heels of $1.1B IPO By Wendy Culverwell editor@tcjournal.biz

A Montana startup that raises lettuce and herbs in high-tech greenhouses is coming to the Tri-Cities on the heels of a merger that will take the company public with a valuation of $1.1 billion. Local Bounti, launched in Hamilton, Montana, in 2018 by a pair of former energy industry executives, will build the first of eight IPO-funded greenhouse complexes west of the Mississippi River in Pasco. The $40 million complex will include 32 greenhouses on 28 acres at Oregon Avenue and A Street in Pasco. It began discussing the project, dubbed Project Sunshine, with the Tri-City Development Council (TRIDEC) earlier this year. The company built its original green-

house in western Montana and is using proceeds from the IPO to build a network to serve what it calls a $10.6 billion market in the west, according to a June presentation to investors. “We are so excited to be coming to the Tri-Cities,” said Kathleen Valiasek, chief financial officer. An unnamed site in northern Colorado will be next. It is targeting western Nevada, southern Utah and the Texas-Oklahoma border for future facilities. All are expected to be open by 2025. Local Bounti paid $3.1 million for the Oregon Avenue site in a deal that closed June 3. It is north of Big Pasco Industrial Park, near U-Pull-It Auto Parts, an auto wrecking yard. The site is vacant, but Local Bounti inuLOCAL BOUNTI, Page A5

Reser’s Fine Foods begins 250,000-square-foot plant in Pasco By Wendy Culverwell editor@tcjournal.biz

A Portland food manufacturer known for its potato salad is expanding in the Mid-Columbia with a new processing plant in Franklin County, just north of the Pasco city border. Reser’s Fine Foods broke ground on a 250,000-square-foot facility plant on North Capital Avenue, east of Highway 395, shortly after it closed a $3 million deal for the 38acre site in June. It declined to disclose the project cost. Franklin County has not released construction permit data that would indicate a project value. It could exceed $300 million based on construction costs for the proposed Darigold

plant of $1,250 per square foot. The company declined to confirm through a spokeswoman if the figure is reasonable. The land sale is part of a combined sale involving Cox Family Land LLC. It sold the 55-acre northern part of its property to the Port of Pasco for a new industrial park (See related story on page B7.) and the southern acres to Reser’s. Both paid $80,000 an acre. Reser’s is not a port tenant. The Tri-City Development Council (TRIDEC) is working to see if Reser’s is eligible for state or local incentive funds. “We want to make sure they stay here in Washington,” said Karl Dye, president and chief executive officer. uRESER’S, Page A4

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