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No matches found.Natural gas line project set to start
Pope said project likely to cost less than $3.4 million
Officials said a natural gas line project needed for Sanderson Farms will soon bring more jobs to Lenoir County.
Lenoir County economic development director Mark Pope said the project would employ about 300 new workers. Pope said workers will install nearly 40,000 feet of pipe from the Masterbrand site at N.C. 58 to the Industrial Park at U.S. 70.
The new line will be a steel 6-inch diameter line, which will provide service to Sanderson, as well as future businesses in the park. The project’s initial cost estimate is $3.4 million but could be lower after the bid process is completed.
Pope said $2 million for the project will come from grants through a Community Development Block grant and $1 million through a N.C. Rural Development grant.
“I’m sure we will get the $2 million,” Pope said.
Pope hopes to secure an additional $1.4 million for the project through a Tobacco Trust Fund grant. If this grant request isn’t approved, the city and county would likely split the cost in half, with each paying up to $700,000 to complete the project.
Local officials had to scramble together a plan to meet a utility contract agreement with Sanderson after Piedmont Natural Gas Company officials notified Pope during February 2009 that there was an apparent problem with capacity in existing natural gas lines to the Sanderson site.
“This is the way we have to do it, whether we like it or not,” Pope said. “The $3.4 million is not going to Sanderson. This is not an incentive payout for Sanderson Farms.”
The project will go to bid in about 60 days. Pope said city and county officials will not know until May if the Tobacco Trust Fund grant request will be approved.
Pope said Piedmont officials had assured the county in May 2008 that the local infrastructure could handle Sanderson’s needs. There are three natural gas lines that feed into the Sanderson site but they don’t meet Sanderson’s requirements, according to Pope.
Bob Billingsley, Sanderson director of development, said Tuesday that it’s customary for communities to apply for grants to meet their financial obligations related to economic development.
“The grants require us to create jobs and spend money on capital,” Billingsley said. “We are coming to Kinston to create jobs.”
Chris Lavender can be reached at 252-559-1078 or clavender@freedomenc.com.
