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December, 2014 ADM – Marshall Energy Project Update.

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Presentation on theme: "December, 2014 ADM – Marshall Energy Project Update."— Presentation transcript:

1 December, 2014 ADM – Marshall Energy Project Update

2 ARCHER DANIELS MIDLAND COMPANY ADM – Marshall, MN Plant Grind of 67,500,000 bushels annually Produces  Sweeteners o HFCS 42 o Liquid Dextrose o Glucose Corn Syrup  Dry Starch  Ethanol (Fuel Grade) One of eight facilities in the Corn Processing Division of ADM

3 ARCHER DANIELS MIDLAND COMPANY ADM Corn Processing Division Facilities located in:  Decatur, IL  Peoria, IL  Clinton, IA  Cedar Rapids, IA (2 facilities)  Columbus, NE (2 facilities)  Marshall, MN Marshall facility accounts for 7.5% of grind capacity of the corn division

4 ARCHER DANIELS MIDLAND COMPANY ADM – Marshall, MN Economic Impact $250 million dollars of corn purchased from local farmers and elevators 250 ADM jobs with a payroll of $18 – 20 million 30 to 50 contract labor/construction jobs $875,000 in property taxes $50,000 to local option sales tax $80,000 annual charitable giving (sponsorships and grants)

5 ARCHER DANIELS MIDLAND COMPANY Invenergy Project Proposal Project will have the capacity to provide all of ADM – Marshall’s electrical and thermal energy needs Construction would take approximately 18 months June 2017 project start-up Project work force will peak at 100 people Project investment of $60 to $80 million Full time plant payroll of $600,000 to $800,000

6 ARCHER DANIELS MIDLAND COMPANY Marshall Cogeneration Project Proposal – Benefits to ADM Allows ADM – Marshall  To be a global competitor in the corn processing industry  To lower our manufacturing costs and allows us to compete with other ADM corn processing facilities  To remain a viable ADM corn processing facility in Marshall, MN

7 ARCHER DANIELS MIDLAND COMPANY Marshall Cogeneration Project Proposal – Benefits to the City of Marshall Project benefits to the City of Marshall/Lyon County  New industry to the region  Additional high paying jobs in the region  Solidifies ADM’s presence in the region  Increase in real property tax

8 ARCHER DANIELS MIDLAND COMPANY Project Hurdles Personal Property Tax Exemption  With personal property tax exemption, project is viable and will move onto the next internal approval stages  Without this exemption, the project is not economically viable

9 ARCHER DANIELS MIDLAND COMPANY Personal Property Tax History Current State laws tax personal property on electrical generating equipment. All similar projects since mid 1990’s have received exemptions on personal property tax. This exemption does not reduce tax base. This project adds to the tax base via real property tax.

10 ARCHER DANIELS MIDLAND COMPANY Next Steps Local support of the personal property tax exemption for this project allows us to take action this legislative session


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