ALABAMA STATE PORT AUTHORITY PURCHASES IP SITE

Reuse efforts at International Paper’s former Mobile Mill took a significant step forward today when Alabama State Port Authority completed its purchase of 87 acres from International Paper for $1.6 million.  The acreage consists of two separate parcels that are split by a 95-acre parcel being regained in this transaction by the Port Authority through the cessation of its lease to International Paper.  The effort brings the Authority’s total land holdings at the site to 182 acres and comprises the property known today as the former mill site.  The transaction was a continuation of an innovative effort launched after the closure of the pulp and paper mill in December, 2000 to find beneficial long-range community uses for the site.   

“I am very pleased that this land transfer may open new economic doors in Mobile,” said Larry Stowell, vice president for the management and disposition of International Paper’s paper, packaging and forest products facilities.  “International Paper made a commitment to seek re-use and redevelopment options as soon as the difficult decision was made to close the mill.  It is gratifying to see the long-term cooperative efforts of the transaction’s partners conclude and bring significant positive opportunities to the area.  Now, in addition to the continuation of an efficient and effective mill site closure, a large piece of industrial property is available for redevelopment.”   

James K. Lyons, director and chief executive officer of the Alabama State Port Authority, said, “The Port Authority and IP are closing the door on a four-year process to transition the 75-year-old industrial complex to a marketable asset.  Now, the Authority and the community must open new doors to replace the jobs and economic void left behind when IP closed the mill.  The Authority appreciates IP’s diligence and hard work in addressing this community’s request to make this property available for Mobile’s economic future.” 

"The completion of this purchase marks another positive step in the expansion of the Alabama State Port Authority and an even greater impact on Alabama's economic growth," said Congressman Jo Bonner.  "The management of International Paper, even while dealing with their company's own difficult corporate decisions, has demonstrated a strong and continuing commitment to its partnership with Mobile and improving our regional economy.  I applaud their efforts and those of the Port Authority to increase the port's visibility as a strong center of commercial trade and look forward to watching the benefits of this purchase in the time ahead."

"I think it provides some great opportunities for Mobile County as it relates to industrial development," said Mobile County Commissioner Sam Jones. "With the Port Authority taking control of the site, it means the property will be marketed tremendously, creating an economic impact for the area."

Mayor Mike Dow added, “Reclaiming closed industrial sites like the old International Paper property is a valuable asset to the community and is a great step toward replenishing the job base in Mobile and the surrounding area.” 

"Having large contiguous acreage is always a tremendous asset for economic development, and one which is often a rarity in urban areas.  Coupled with the outstanding logistical advantages of the Mobile Bay region, the Mill Site will be a hard one to beat," said Bill Sisson, vice president of economic development for the Mobile Area Chamber of Commerce. 

International Paper and Alabama State Port Authority’s cooperative efforts leading to this sale resulted in a cleared, level site that will facilitate future marketing and redevelopment efforts.  Other beneficial endeavors occurring since the mill’s closure include: 

• Water quality improvements resulted from the development of wetlands habitat, the closure of a wastewater treatment basin, and the construction of a storm water management system. 

• Recycled dredge material from area waterways was provided by the Port Authority and used to fill the basements of demolished mill structures located within the Authority’s leased parcel.

• An extensive recycling program was implemented by International Paper to recover and reuse material from mill demolition work.  It included scrap steel and the reclamation of concrete for gravel and erosion control products.

• Demolition of all above-grade buildings and structures was completed.

Alabama State Port Authority (http://www.asdd.com) operates the State of Alabama’s deepwater port facilities in Mobile, Ala.  Its varied facilities handle more than 20 million tons of cargo each year, including such general cargo as forest products, metals, project cargo and containers, and bulk commodities such as coal and cement. The port is in the first phase of a $300 million development program that is scheduled for completion in the next five years. This will include a deep draft intermodal/container transportation and distribution center at Choctaw Point, which is about two miles south of the International Paper property.