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PAMPA CITY COMMISSION OK’S LAND DEAL FOR LONE STAR GIN PROJECT

PAMPA CITY COMMISSIONERS MONDAY APPROVED SALE OF CITY-OWNED PROPERTY SOUTH OF PAMPA TO LONE STAR GIN FOR CONSTRUCTION OF A COTTON GIN AT THE SITE WHICH IS OFF THE EAST SIDE OF HIGHWAY 70 ALONG COUNTY ROAD ‘K’.  ACTION CAME AFTER SEVEN AREA PRODUCERS ADDRESSED THE COMMISSION ALL IN FAVOR OF THE PROJECT.  CITY MANAGER SHANE STOKES WAS AUTHORIZED TO SIGN A LEASE AGREEMENT INIVOLVING 640 ACRES OF PROPERTY 200-THOUSAND DOLLARS A YEAR FOR FIVE YEARS WITH A PURCHASE OPTION ATTACHED.  THE FACILITY WILL EMPLOY TEN PERSONS AND HAVE AN ANNUAL PAYROLL OF ONE MILLION DOLLARS.    MIKE FRIEMEL, PRESIDENT OF THE COMPANY THAT WILL BUILD LONE STAR GIN SAID LONE STAR GIN WILL BE A STATE OF THE ART FACILITY LOCATED APPROXMATELY ONE MILE FROM THE NEAREST NEIGHBOR TO THE FACILITY.  LOCAL RESOURCES WILL BE USED IN CONSTRUCTION.  THERE HAD BEEN OPPOSITION TO THE PROJECT FROM THOSE WHO CLAIMED THE GIN WILL BE AN ENVIRONMENTAL AND HEALTH HAZARD TO RESIDENTS IN THE AREA.  IN AN INTERVIEW ON PAMPA RADIO FRIEMEL AND LONE STAR GIN GENERAL MANAGER CAREY MCKINNEY SAID AS FAR AS DUST TRAVELS ARE CONCERNED FROM A GIN--AT 1500 FEET 90 PERCENT OF DUST PARTICALS IN THE AIR ARE DISIPATED, AT 3000 FEET ANOTHER 90 PERCENT IS DISIPATED AND AT 4500 FEET ANOTHER 90 PERCENT IS DISIPATED.  THEY SAY THE PLANNED FACILITY WILL BE HIGH TECH AND SIMILAR TO THE ADOBE WALLS GIN AT SPEARMAN AND CONCERNED CITIZENS ARE INVITED TO ASK FOR TOURS OF THAT FACILITY TO EASE CONCERNS.    FRIEMEL SAID THERE ARE FARMING PRODUCERS FROM THE PAMPA, WHITE DEER, PANHANDLE AND GROOM AND OTHER AREAS FURTHER DISTANT WHO HAVE A NEED FOR THE NEW GIN.  TOP O TEXAS AREA COTTON PRODUCTION HAS INCREASED. IN GRAY COUNTY 14,700 ACRES WERE PLANTED TO COTTON IN 2013 AND IN 2017 THE ACREAGE WAS 36,500 ACRES AND ACROSS THE HIGH PLAINS COTTON PRODUCTION HAS INCREASED 120 PERCENT.   COTTON PRODUCERS DO NOT GET PAID FOR THEIR CROPS UNTIL AFTER THE GINNING CYCLE IS COMPLETED, WHEN THE CROP IS GRADED AND THAT IS PROBLEMATIC BECAUSE A LACK OF ENOUGH GINS IN THE REGION TO DEAL WITH THE PRODUCTION LOAD.  LACK OF CAPACITY HAS FINANCIAL CONSTRAINTS ON AREA FARMERS BECAUSE COTTON IS SITS IDLE LONGER BEFORE PAYMENT IS RECEIVED.   FRIEMEL SAYS WHEN COMPLETED THE LONE STAR GIN WILL PROCESS 100,000 TO 150,000 BALES OF COTTON AND THERE WILL BE A RESULTING POSITIVE IMPACT ON THE LOCAL ECONOMY INCLUDING TAXES TO THE CITY, COUNTY AND SCHOOLS DISTRICTS AS WELL AS PURCHASE OF MATERIALS AND SERVICES LOCALLY.  THE $20-MILLION DOLLAR GIN IS EXPECTED TO BE BUILT AND ON LINE BY OCTOBER 2019.  LONE STAR GIN WILL HAVE FIRE PROTECTION WITH AN ON-SITE HYDRANT AND AN ARGUS FIRE CONTROL SYSTEM.  POWER TO RUN THE GIN WILL COME FROM A NEARBY XCEL ENERGY SUBSTATION. INVOLVED IN THE LONE STAR GIN PROJECT ARE NUMEROUS INVESTORS, ALONG WITH THE TOP OF TEXAS GIN IN DEAF SMITH COUNTY, THE WINDSTAR GROUP, AND ADOBE WALLS GIN IN SPEARMAN.  FURTHER INFORMATION ABOUT THE PROJECT MAY BE OBTAINED FROM MCKINNEY AT 806-252-3251.

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PAMPA BROADCASTERS, INC

P.O. Box 1779

Pampa, Texas 79065

Phone: 806-669-6809

Fax: 806-669-0662