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YOU'RE LISTENING TO

Red Eye Radio

12:00 am - 5:00 am

Megasite pipeline immediate future is uncertain

BROWNSVILLE, Tenn.—Exactly when the Memphis Megasite’s wastewater pipeline will be put in the ground is, at best, now uncertain. Amid reports from state legislators that Governor Bill Lee wants to “pause” the project, the governor and his commissioner of economic and community development worked to make clear the state’s intentions during two public appearances in West Tennessee last week.

The 4,100-acre industrial tract is located in southwest Haywood County. Proponents say its development could be “transformational” to West Tennessee and eventually provide more than 18,000 new jobs.

Thursday night in Jackson the governor said he remains “committed” to the megasite project. Meeting with the Memphis Megasite Board Friday, Commissioner Bob Rolfe reported there is change in the state’s approach to the pipe but that “We’ve not waivered one moment,” about the development’s future.

Rolfe, who is a holdover from the Haslam administration, continues to serve as Commissioner of Economic and Community Development under Bill Lee. For months, and long before Lee became governor, Rolfe called the pipeline “the final gating item” before the industrial park can be considered “shovel-ready.” Rolfe has said that without the utility, industry won’t consider the site.

Management

Friday, the commissioner explained that Governor Lee has expressed concern about how the utilities to the site will be managed.  The governor asked, “Who the heck is going to manage…” the utilities, Rolfe told the Megasite board.  Since there are no utilities, including, gas, water and electricity “to the edge…” of the property, utility management and sourcing is unclear.

What’s next?

So, what is the current course?  Rolfe says the attorney general’s office will continue to seek the final pipeline easements, the only legal hurdle remaining.  There are less than 10 that remain unsettled and legal experts say winning the easements is certain. Next is the Request for Proposal (RFP), or bidding on the project. Rolfe says the bid process will begin as soon as the easements are complete. New to the project is the governor’s question about management. Rolfe says a consulting firm has been hired to find the answer. Just how much the utility study will slow or change the outcome is unclear.

Lots already done—money there

The engineering work is complete and the state has already purchased “a couple of million dollars-worth of pipe.” Funding for the pipeline was approved two years ago though just exactly what the line will cost seems to vary depending on who is talking. Early estimates were $80 million but Rolfe said it could be more, calling it a $100 million project Friday.

What’s the status of sales

ECD’s job is to sell the megasite to industry. Earlier the commissioner maintained that the pipe must be in the ground for industry to really consider it.  Can it be sold without the pipeline?  “That’s the $100 million-dollar question,” Rolfe said when asked Friday. The line will take about two years to build, he says, “the same amount of time it will take an industry to build…” a facility. Rolfe said it may be possible that the construction of the pipeline and other utilities including gas and electricity can “parallel” industry’s construction timeline.

Megasite still important

“This is the most important project (to the state) …I don’t see that we’ll be slowing down but the governor wants answers before we go forward,” Rofle said.

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