News that the Memphis Regional Megasite isn’t prepared for a tenant came as a surprise to most in attendance at the Southwest Tennessee Development District in Jackson, Tuesday.

“When they’re (industry) ready to go they want a shovel-ready site immediately…and that’s not where we are right now,” said Tennessee Economic and Community Development Commissioner Bobby Rolfe.

Rolfe said the two latest mega-employer prospects have moved on to look at other locations.

Toyota, poised to build a new auto manufacturing plant somewhere in the United States, was one of the industrial giants considering the site.

Though the other company remains unnamed, apparently it was an appliance manufacturer.

What’s the problem?

Permitting and infrastructure development block “shovel ready status,” Rolfe said. It is unclear why the issues haven’t been disclosed before now.

“We’ve been hearing 15 to 18 months (until completion) for years,” State Representative Jimmy Eldridge told Rolfe.

Rolfe, who was appointed ECD Commissioner just a few months ago, promised the board “a candid conservation” about the status of the 4,100-acre industrial park development. He was flanked by a number of his staffers including ECD’s most senior executives.

Two major hurdles

Developers must complete “permitting” and spend millions of dollars on additional infrastructure before prospects will become serious about considering locating here.

Though about 70 percent of the needed wastewater pipe easements are secured, the Tennessee Department of Environment and Conservation (TDEC) has not issued a permit to dump the effluent into the Mississippi River.

The pipe will extend from the tract through Tipton County to the Mississippi River.

Residents near the outfall complain that the state’s engineering is faulty and, when the river is low, the waste will be dumped not into the river but onto dry land.

It’s the second snag for the wastewater permit. Protests over a plan to dump the sewage into the Hatchie River two years ago caused the rerouting to the Mississippi and the resulting delays.

“We’ll do whatever is necessary to meet the water quality,” Rolfe said.

ECD is working alongside TDEC to resolve engineering questions.

Money is the second matter. Though more than $100 million dollars has been appropriated for site development, Rofle says another $75 million is required to bring the development to an industry-ready point.

The new money would not, however, include any incentives a prospect is likely to demand.

The additional investment will include an on-site wastewater treatment plant and other infrastructure.

“The governor is supportive of the additional funding,” Rolfe said, but he doesn’t know how
much Haslam will ask the legislature for in the next budget.

Eldridge said he believed the governor ought to ask for “the whole thing…we’ve got it…”

Timeline

So how long will all of this take?

The commissioner made no promises but speculated the permitting would be complete by the end of March 2018.

Promoters hope the easements for the piping will be complete near the same time, though legal wrangles with easement property hold-outs could cause further delays.

Assuming enough additional funding and the permitting is secured Rolfe said, “We’ll be in perfect position to say we’re ready to go…”

Enthusiasm remains

“It will be a transformational moment,” Rolfe says when the site is eventually claimed by a company sure to invest billions of dollars and spawn jobs for thousands of workers.

Rolfe claims completing the shovel-ready portion of the megasite and landing a tenant is the “number one thing” on the minds of the state’s top industrial recruiters, including the governor.

“In the last eight months, I’ve traveled the globe pitching the site…we’ve called on auto-manufacturers, appliance builders and aero-space companies,” Rolfe said.

ECD doesn’t believe the labor force is an issue.

Staff members said there are 750,000 people in the workforce within a 60-minute drive of the Megasite.

“It’s established that we have the population,” Deputy Commissioner Allen Borden said. “We estimate the site will create 18,000 jobs…We can meet the demand.”

(PHOTO: Site of the proposed Memphis Regional Megasite in Haywood County)