City, county seek expert’s advice on Farmland

Before making bid for property, commissioners to hire bankruptcy attorney

Lawrence and Douglas County will hire a bankruptcy attorney to take a closer look at the legal tangle surrounding the defunct Farmland Industries Inc. fertilizer plant east of Lawrence.

“It’ll have to be an outside attorney,” Douglas County Commission Chairman Charles Jones said after a closed-door meeting of city and county commissions. “We’re interested (in the plant), but we want to have a clear understanding of the bankruptcy obligations.”

Officials characterized the decision as a small step forward to a possible joint city-county purchase of the plant.

“At this point, this is really still a research project that we’re talking about,” City Commissioner David Dunfield said later at Tuesday’s commission meeting. “There may have been some expectation of dramatic action this evening, but it’s not going to happen. We’re probably quite some way from dramatic action on this issue.”

Farmland manufactured fertilizer for nearly 50 years at the site, east of Lawrence on Kansas Highway 10, before ceasing operation in 2001 — in conjunction with the bankruptcy of the Kansas City, Mo.,-based parent company. The manufacturing process, officials said, left behind badly contaminated soil and groundwater that must be cleaned up before the site can be reused.

Officials have expressed concern that the contaminated property would be vacant for years. City and county officials earlier this year pledged that none of the plant would be annexed into the city unless a plan for the entire 467 acres was presented.

Since then, a deal has been struck between Farmland and the Kansas Department of Health and Environment that gives state regulators control over $7 million of Farmland money to ensure cleanup of the site.

Among the questions that officials want the attorney to answer is what strings are attached to that $7 million for the eventual property buyers.

Included in Tuesday’s one-hour private session with commissioners were Roxanne Miller of ECO2, the public group that has studied business park land-acquisition issues; Leonard Ledbetter, of MACTEC Engineering and Consulting, an Atlanta environmental firm; Jerry Samp, vice president of Douglas County Development Inc., developers of the East Hills Business Park; Phil Struble of Landplan Engineering; and Lavern Squier and Lynn Parman, CEO and vice president for economic development, respectively, of the Lawrence Chamber of Commerce. The commissions called upon the six for their expertise on questions about Farmland and industrial development.

On Tuesday, a representative of the Prairie Park Neighborhood Assn., representing neighbors near the plant, asked to be included in future deliberations about Farmland’s future.

“If you would like to contact us,” Danny Drungilas asked commissioners, “please do so.”

Jones, who has served as the point man for the city and county governments on the issue, couldn’t give a timeline for resolving the issue.

“In terms of acquiring the property,” he said, “I don’t know at this point.”