Foreclosure expected for Bellringer plant
The death-knell has sounded for the once-ambitious plans of Bellringer Resources to build an ethanol production plant at Weyburn's Plains Food Fibre plant in the industrial park, with the final word expected to come down in court on Nov. 24.
The deadline of Nov. 10th for a major payment to be made on the plant property to the city has come and gone, and no money is in hand from the Calgary-based Bellringer Resources as per an agreement they hammered out with city council. The foreclosure proceedings launched by the city will now wind up in court, with a final date of Tuesday, Nov. 24, as the last day a submission can be made by Bellringer against foreclosure.
City solicitor Stafford Nimegeers said the matter will come up in Queen's Bench chambers that morning, and expects the final order for foreclosure will come down unless the justice reserves the decision in the case of a submission from Bellringer.
Under Bellringer's plan, the former distillery was going to be retrofitted to produce high-quality ethanol for manufacturing purposes, along with spinoffs such animal feed made from byproducts, and the operation was to provide as many as 125 jobs. Bellringer was to put down a major payment of $1.2 million with a further $400,000 to be mortgaged over the next seven years.
"It's basically done," said Mayor Don Schlosser, noting there has been no communications between city solicitor Nimegeers and Bellringer's lawyers in the last week and a half. Prior to that, there had been active discussions going on between the two parties. Nimegeers would offer no comment on the state of communications between the parties.
One sign that a last-minute appeal by Bellringer is unlikely is a notice of an auction sale by Bellringer of equipment from the Plains Food Fibre Plant. The sale has been set for Friday, Dec. 4 at the plant, with items up for bid including a tractor, truck, forklift, shop equipment and supplies, a drive-on weigh scale and two metal hopper bins.
"There's no doubt we're going to be checking it out to make sure they're not selling anything that's supposed to remain with the plant," said Mayor Schlosser.
Meanwhile, there are at least five parties interested in developing a project at the plant, and once the plant is officially back in city hands, council will be looking at those plans to see which will work to the city's best interests.
"I think we have to look at all the ideas, because some will only want a portion of the building and some will want all of it. We have to see which is beneficial to the city," said the mayor.
Council will take into account a resolution made by the Weyburn Chamber of Commerce, to sell the plant as soon as possible to the highest bidder, but the final decision will rest with council, added Mayor Schlosser.
"We have to look at it as far as council's concerned and make the decision we feel is right. We're the people elected to make those decisions. I admit we want to get it started as soon as possible, but we have to do what we feel is best for the city," he said.
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