Columbiana Port OKs Land Purchase for Marathon
EAST LIVERPOOL, Ohio -- Two actions taken by the Columbiana County Port Authority Monday moves Marathon Petroleum Corp. closer to building a transfer station in Wellsville.
At its meeting Monday evening, the port authority's board of directors approved a $2.4 million land purchase agreement with Marathon for 3.6 acres at its Wellsville Intermodal Facility. Upon approval of the agreement by Marathon, the company will pay the port authority $10,000 in earnest money, which will be applied to the balance due at closing. The port authority will keep $1.8 million of the balance, with the village of Wellsville receiving $600,000.
“This truck terminal will allow Marathon to bring in liquids from local fields to take to their tanks, and then they’ll go by barge to refineries,” Drake said. “That will save the village of Wellsville several hundred trucks a day going through the village.”
Marathon expects some 200 trucks to use the station daily, Drake noted.
The board also approved an engineering study license that allows Marathon “employees, agents, contractors and other representatives,” to enter the property within a certain boundary to survey the property and perform environmental assessments and geotechnical testing. In an effort to help move the project along, the U.S. Army Corps of Engineers also approved the license.
“Marathon just needs to get in and make a determination of what they need to make that site what they want,” Drake said. After the studies, Marathon and the port will explain the scope of the project to the Army Corps for its approval, “and the presumption is we’ll get a sign-off.”
The board also approved the settlement agreement in its litigation with OneCommunity, a Cleveland nonprofit organization that the port authority alleged was using its 260-mile fiber optic network without its knowledge. In December 2011, the port filed suit against OneCommunity, seeking damages related to the $750,000 state grant the port authority secured to build a data storage/network operations center at its data center at the World Trade Park in Leetonia.
The settlement agreement requires OneCommunity to provide the port authority access to four strands of fiber that run from Youngstown to Canton and to Mansfield at no cost for the first 12 months of a 20-month period. OneCommunity is also responsible for the maintenance of the fiber during that period. DRS LLC of Youngstown will light and manage the fiber, leasing it from the port authority for $1.2 million, broken down into payments of $8,333.33. During this time, DRS has the right to sublet the leased fibers to third parties.
“That’s how we will monetize this settlement,” Drake said. “We will have fiber that will be able to be leased, and we will lease it to DRS.”
At the end of the first 12 years, DRS will pay OneCommunity the same monthly rate for the fiber for three years, with one five-year extension option at that rate. During those eight years, DRS will also pay an annual maintenance fee of $250 per route mile.
The port authority invested some $1.2 million in the network when it initially acquired it from the ACCESS Council in July 2004. In November 2011, the port authority said documents released by OneCommunity valued the benefits from the fiber and more than $25,000 monthly. The lawsuit also sought unpaid rental fees for the use of the data center, a share of OneCommunity’s profits during that time and other damages.
“Our disagreement has been fairly settled,” Drake said. “This is a good resolution to a sticky situation.”
In other business, the board:
- Authorized the port authority to enter into an amendment to its reimbursement agreement with Fifth Third Bank of Cincinnati for a $2.2 million loan. The expiration date of the letter of credit is being extended to Feb. 15, 2014, with a $5,000 fee.
- Retained accounting services with Miller, Stacey & Associates Inc. of East Liverpool for 2013. For 2012, the port authority paid the firm $10,075.
- Leased to QST Trucking one-half acre of parking space at the Wellsville industrial park for $800 per month. QST provides trucking services to Anchor Drilling Fluids at the park.
- Authorized the port authority to apply to participate in the Clean Ohio Brownfields program to seek remediation monies for an analysis of the three Parsons coal terminals in the Wellsville industrial park.
- Approved a renewal lease agreement with Salem Logistics LLC for property at 921 S. Ellsworth Avenue in Salem. Rent for the one-year lease is set at $1,025 per month with an additional monthly fee of 10% of the gross revenue that Salem Logistics earns from any subleases.
- Approved a lease agreement with Heritage Environmental Services LLC for 228 square feet of office space at the port authority’s headquarters at 1250 St. George Street here. Monthly payments include $66.50 for rent and $25 for utilities.
- Approved a lease agreement with Tri-State Supplies in East Liverpool for 300 square feet of storage space at the former Louthan facility on Harvey Avenue here. The lease shall run from month-to-month at a rate of $80.
- Approved a lease agreement with Chris Cowan, who does business as Cowan Masonry, for 4,992 square feet of space at the Louthan building for $200 per month. Cowan will also make repairs to the space, Drake said.
- Approved a lease agreement with Bill Pinto for three storage areas at the Louthan building at 2,700 square feet, 2,295 square feet and 750 square feet. Monthly rent is set at $275.
Copyright 2013 The Business Journal, Youngstown, Ohio.
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