County industrial park awaits unexpected tenants

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By Hannah W. Wever

Published: May 8, 2008

American Biodiesel Corp. and Greenberry’s both have their company names on the big sign at the entrance to Lee Industrial Park, but there’s no sign of the companies. And with great fanfare a couple of years ago, government officials and company representatives announced the expansion of Diversified Information Technologies (DIT) to the former Liberty Fabrics facility, bringing the community economic prosperity through a broadened tax base and scores of job opportunities, they said.
County officials announced in 2006 that American Biodiesel Corporation planned to begin producing biodiesel at a Lee Industrial Park facility. Back then, Orange County Board of Supervisors Chairman Mark Johnson said he had “high hopes for our Orange facility and for the future of biodiesel.”
Expectations then were for site preparation and development to begin prior to the end of 2006 with an anticipated production start in the second quarter of 2007.
The alternative fuel company’s planned move to Orange was off to a strong start, but unfortunately, things didn’t go according to plan for American Biodiesel, according to American Biodiesel Corp. President Scott Johnson.
“After a long wait our site plan was recently completed. We had it reviewed and approved by the county. We are now awaiting approval from the Virginia Department of Environmental Quality,” Johnson said. Company officials are in the process of reviewing proposals for site work and construction, he said.
“I do regret to announce that as we thought we were fully financed, almost three years ago, we are now having difficulty raising the needed capital (about $6 million). Some investors were frightened by rising soy oil prices, which were our main feedstock, initially; others by the slow economy,” Johnson explained.
But Johnson is comfortable with alternatives, so he is still optimistic American Biodiesel’s plans will get back on track.
“With crude oil at $119 a barrel, maybe more people will see the need for our diesel alternative. The feedstock issue is being addressed by using used cooking oil from restaurants and chicken fat. Algae oil can also be used, it has a higher yield of oil per acre. My wife and I are going to farm algae once the biodiesel facility opens,” he said. “We have a great team of dedicated people and have not given up hope. We are looking for ways to raise money daily.”
Lumber and building supplier 84 Lumber owns one of Lee Industrial Park’s large lots, but there’s little sign of life there.
Orange County Assistant County Administrator Julie Jordan, (who also serves as an officer on the county’s economic development authority), said the 84 Lumber property is quiet now, but the company still intends to develop the land.
“We have a performance agreement with them, as we do with any company,” Jordan explained. “They have timetables they have to meet.”
For a company like 84 Lumber, whose bread and butter is the building business, a downturn in the housing industry reverberates from the rafters to the foundation.
“Their program is in a slowed-down state,” Jordan said.
Company spokesperson Jim Zaunik said when the housing industry recovers, 84 Lumber expects to proceed with plans to put a facility in Orange County.
“We have all permits for construction but are currently in a holding pattern due to the lack of new housing starts,” Zaunik explained.
Charlottesville-based Greenberry’s Coffee and Tea company has their name on the sign leading to the Lee Industrial Park, but they never moved in. In fact, they never will move in, Jordan said. The company had plans to merge its roasting and distributing facilities here in the Orange location, but economic pressure resulted in Greenberry’s officials reconsidering the move.
“Greenberry’s has withdrawn their project from the park,” Jordan explained. Disappointing sales projections, she said, forced the company to change their minds. “We’re hoping when the market improves, they’ll come back,” she said.
There was a buzz of excitement in 2006 when DIT announced its plans to open a customer support facility locally, invest more than $10 million in the process, and create 200 new jobs.
But two years later, undesirable situations at the corporate level and resulting staffing changes at DIT have slowed those initial plans to a near-standstill.
“That’s been on a slower track than we would like, and than they would like. They had some unfortunate circumstances of illness among their staff,” Jordan explained.
Greenberry’s may be a no-go, and 84 Lumber, American Biodiesel and DIT are on hold, but others are still looking to make the move to Orange, according to Jordan. There are a few smaller-acreage lots still available at the business park, and Jordan said several businesses have expressed an interest in locating here.

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