Marshall OKs tax abatement for ADM expansion
New storage, railway access planned at Marshall plant
MARSHALL — Archer Daniels Midland is planning some future expansions at its Marshall plant, and this week the Marshall City Council approved a business tax abatement for the construction.
The abatement would be for an estimated $30,492 over five years. ADM representatives said they’re planning new storage structures and other construction that would allow the Marshall plant to increase the amount of dry starch it makes.
“This is a large investment for ADM into our Marshall plant, which is good for our plant and good for the community because it brings stability,” said Plant Manager Eric McVey. McVey answered questions from city council members at a public hearing Tuesday.
“We’re going to make food-grade starch and industrial-grade starch, so food you can eat and we also make the ingredients for cardboard,” McVey said.
“This expands our market presence, and helps us divorce ourself a little bit from some of the up-and-down swings of some of the other markets. So it makes us more stable.”
ADM is planning on building a new structure for storage and new railroad access at the Marshall plant, as well as other changes that will help the plant produce more starch, McVey said.
Marshall City Administrator Sharon Hanson said ADM was requesting a tax abatement of about $30,000 for the project.
“It’s up-fronted for the first five years for a 10-year tax abatement,” Hanson said. The estimated market value of the project and the amount of taxes abated would be similar to abatements the city had granted for construction projects by Harrison Truck Center and Border States Electric, she said.
Council member Russ Labat asked what kind of time frame ADM was planning to build the expansion.
“We will start right now, but you won’t see anything until next year,” McVey said. The project won’t be up and running until the winter of 2023, he said. “It’ll take a while.”
McVey said the new construction would be located within ADM’s current plant boundaries north of County Road 33 in Marshall.
“We certainly appreciate the investment and presence of ADM in the community, not only for the city, but also for the surrounding ag areas,” said Marshall Mayor Bob Byrnes.
Council members went on to unanimously approve the tax abatement for ADM.