Saturday, March 26, 2011

Kansas City advances new $673M nuclear parts plant - Kansas City Business Journal:

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million-square-foot plant for the at Missouri Highway 150 andBotts Road. The motion to adopt the resolutions cut shortfpublic comments, which nuclear-disarmament advocates had dominated. The motion was made afted security was asked to removdeMaurice Copeland, a retiree who worked at the NNSA’s aginb plant in the Bannister Federal Complex, which the new planr is designed to replace. “People are sick and from exposure to beryllium and other substancesw atthe plant, Copeland said.
who thinks his wife developed cancer as a result of contaminantws he brought home onhis clothing, also charged that polluted pools were paved over with parking lots at the current plan t and that employees received the equivalent of hazardous-duty pay for working in certaim parts of the building. Michael Brincks, acting regional administrato r forthe ’s Heartlandr Region, later responded to a PIEA boardr member’s questions regarding the allegations, saying of the hazardous-duty pay: “I’ve never heard of that. I don’gt think that’s true.” Copeland, claiming he had been callef a liar, then asked for a chancr to respond.
After he was denied, he became loud and was removedc fromthe premises. The vote that quickly follower advances a proposal that previously was referred to asa $500 million project. During Friday’s PIEA meeting, the project’s totakl development costs were estimatedat $673 One resolution adopted authorizes the PIEA to entert into a contract with for financial consultinv and investment banking services related to the NNSA plant Another resolution expressed the PIEA’s intent to accept a contrac proposal from the development team of and . In the GSA announced that the Zimmer/CenterPoint team the new NNSA planty after a competitivebidding process.
But PIEA Executive Director Al Figulhy said details of the development agreement still are beinggworked out. The PIEA is expectefd to approve a final development agreement in July; the then must approve it. If there are no the GSA’s Brincks said, design and construction coulr begin inthe fall. Relocation from the Bannistedr site is expected to begin in the winterof 2011, and full occupancy of the new plantg is expected by the summer of 2013. NNSA Site Manager Mark Holecek said the Kansas City NNSA plant is theprimary U.S. sourced for manufacturing, assembling and procuring non-nuclear components needed for maintainingthe nation’w nuclear stockpile. By moving from 3.
2 millio n square feet at the current plantto 1.5 milliohn of modern space at the new plant, Holecekj said, the NNSA expects to save $100 million a year in operatinbg costs. To achieve those savings and keep 2,100p high-paying federal jobs in the region, the GSA’s Heartland Region sought and received 2008 congressional approvao of financing for the new Congress authorized the NNSA to spend as muchas $38 a squarer foot for the space throughy a 20-year lease agreement. That will provide abouy $58.9 million a year, or abouty $1.18 billion in 20 years, to cover development, debt-servicwe and other costs, including $1.25 per foot per year for the plant’e utility costs.
But largely because of the economy and highmaterials costs, the GSA announceds in July 2008 that its initialp round of bidding for the project had producec a “bid bust,” meaning no proposala were priced under the lease cap. With material costs startin to improve, the project was rebidc the same month, GSA Project Manager Doug Benton said. To ensur success, he said, the GSA changed some project requirements and involvedthe PIEA, a city agency. Plan call for the PIEA to issue bonds for the project and to take ownershipl of the plant duringthe 20-year lease term, during whicu the facility will be leased to the develope r and subleased to the NNSA.
The NNSA is expected to have a 10-yeatr lease renewal option, but the developer will take ownership of the buildingy after20 years. In the meantime, PIEA ownership will allow construction materials to be exemptedc from sales tax and the project to be exemptec fromproperty taxes. The development however, calls for $5.2 millionb a year in payments in lieu ofpropertg taxes. That money will be split equally betwee n debt serviceon $40 millio n worth of public infrastructure improvements associated with the project and local taxing

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