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MADDOG 
Group: Moderator
Posts: 7821
Joined: Aug. 2003
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Posted on: Sep. 03 2003,9:26 am |
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No matter what anyone says, after reading this letter to the editor in the St. Joe's News Press Aug 30,2003, we should all breathe easier now:
Rush to a TIF
Mayor Jones and the City Council are rushing to meet an Oct. 9 deadline for a $5.6 million TIF (tax increment financing district) to fund redevelopment of the stockyards area and are preparing to spend $7 million for sewer improvements, all for the recently announced Premium Pork plant. There are some fundamental questions about Premium Pork, however, that should be answered immediately before they spend anymore taxpayer money.
I have been skeptical of this proposed plant because of its unorthodox announcement. CEO Rick Hoffman showed up alone on July 3 to announce the $130 million plant without any company executives or staff. None of the hog producers who are supposed to own the company or the board of directors were there, nor were they identified. As of this writing, they are all still unknown. Even more important, the source of the $130 million has not been disclosed to the public. Why all the secrecy?
My skepticism reached the breaking point on Aug. 3, however, when the News-Press reported that Premium Pork bought the old Seaboard site in Elwood, Kan., from Cottonwood Investment. Why? And who is Cottonwood Investment? In the story, Hoffman declined to comment, but Mayor Jones said the company was up front with him about their plans to purchase the site and “… they bought it to keep Seaboard out.” Hogwash!
Cottonwood Investment Group, LLC, was formed March 3, 2002, in Delaware as a Delaware limited liability company by none other than Rick Hoffman. He was listed as resident agent at 8335 Maple Wood Drive, Lenexa, Kan. So in effect, Hoffman bought the old Seaboard site from himself. No wonder he wouldn’t comment.
How Rick Hoffman got the land is even more curious. As the CEO of Seaboard, he bought the Elwood site for a hog slaughterhouse in the summer of 2000 when St. Joseph informed him that Seaboard wasn’t welcome here. Seaboard later abandoned the project and shortly thereafter Hoffman left the company.
Court records show that on June 13, 2002, Joel Euler, who was city attorney for Elwood in the Seaboard transactions and a strong proponent of Seaboard, formed a Kansas corporation called Richard Developers Inc. Four days later Seaboard executed a special warranty deed conveying its former plant site to Euler’s corporation. On May 7, 2003, a special warranty deed to the land was assigned to Cottonwood Investment from Richard Developers and finally, Cottonwood Investment conveyed the property to Premium Pork on July 23, 2003.
Court records don’t show whether any money ever changed hands with all of this deed shuffling. The big unanswered question is: Why did Hoffman “sell” the land to himself? To keep Seaboard out can’t be right.
Some other things that can’t be right are the size and cost of the Premium Pork plant here versus the one proposed in Albert Lea, Minn. At $130 million and 600,000 square feet, they are the same. Except the one in Albert Lea was going to employ 2,000 people and kill 16,000 hogs a day and the one here is to employ half as many people and kill half as many hogs. Economically that doesn’t make any sense. Can Hoffman explain this huge disparity?
The news release on announcement day said, “Premium Pork, LLC is a newly organized, producer-owned company.” Presentation materials Hoffman is using now say, “It is anticipated that all the owners at inception will be hog producers …” Tilt! “Anticipated” leaves a lot of wiggle room for Hoffman to do whatever he wants. And 10 minutes after “inception” who knows who might own the company? Maybe Seaboard?
In the city’s TIF agreement Hoffman lists the address of Premium Pork as 8207 Melrose Drive, Suite 160, Lenexa, Kan. I checked it out. The sign on the door says Cottonwood Investments. Tilt again! Premium Pork not only doesn’t have an office, it doesn’t even have a telephone. Call information. They have no phone listed for Premium Pork at that address or anywhere in the area code.
The mayor and City Council are very excited about the prospect of 1,000 good-paying jobs coming to St. Joseph. And rightly so. However, as of now, Premium Pork has no office, no phone and no known organization. Is Hoffman a one-man band running this $130 million company out of the trunk of his car?
It would seem the Oct. 9 deadline for a TIF agreement is less important than finding out right now if Premium Pork is actually a viable company with adequate financing. Or is it the scheme of a slick promoter who wants to get the city committed to major infrastructure improvements and tax incentives and then peddle the whole thing to a big low-wage pork processor? Maybe Seaboard?
Casey Meyers
St. Joseph
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Actually my wife is especially happy when my google check arrives each month. Thanks to douchbags like you, I get paid just for getting you worked up. -Liberal
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Hanna
Group: Members
Posts: 132
Joined: Aug. 2003
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Posted on: Sep. 03 2003,9:38 am |
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One of those things that make ya go hmmmmmmmm
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Bubba
Group: Members
Posts: 94
Joined: Aug. 2003
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Posted on: Sep. 03 2003,10:22 am |
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Thanks Maddog. I've tried to keep up on this, but had not seen this article.
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hoosier
Group: Members
Posts: 1476
Joined: Aug. 2003
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Posted on: Sep. 03 2003,10:30 am |
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Sounds like our city officials have some explaining to do themselves. After all, if we would have been picked over St. Joseph, those same questions would have been unanswered. Looks like a lot of the socalled cynical people in town have been proven right, at least to the extent that there were a lot of questions about this company that no one was willing to answer.
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The power of accurate obsvervation is commonly called cynicism by those who have not got it.
George Bernard Shaw
The devil begins with froth on the lips of an angel entering into battle for a holy and just cause. Grigory Pomerants
We have crossed the boundary that lies between Republic and Empire. Garet Garrett
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Madd Max
Group: Members
Posts: 1345
Joined: Aug. 2003
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Posted on: Sep. 03 2003,11:37 am |
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Sounds Like a typical cutthrout Packer to me. They don't care about how many people they take to the cleaners so they can make a buck. If you ask me, if Hoffman or Seaboard have anything to do with it, they will be nothing but low wage jobs. Didn't anybody ever notice that when the city said that they would have to pay $10.35 starting, out we really never heard anything from Hoffman again. 
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Heck, if crazy were a pre-existing condition, the GOP wouldn't be able to get insurance. James Carville
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rosebudinal
Group: Members
Posts: 303
Joined: Aug. 2003
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Posted on: Sep. 03 2003,3:25 pm |
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Wow!!! And the funny thing is that there will still be people complaining that we should have gotten Premium Pork in Albert Lea. Go figure.
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| Post Number: 7
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shaker
Group: Members
Posts: 435
Joined: Aug. 2003
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Posted on: Sep. 03 2003,3:46 pm |
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There were a good many of us that said from the very beginning that this pig wouldn't fly.there were enough red flags that ever a blind person could have seen them, could never figure it out why Sparks was falling for this line of crap from Hoffman, He should remember the saying"screw me once, shame on you, screw me twice, shame on me"!!!!
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| Post Number: 8
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MADDOG
Group: Moderator
Posts: 7821
Joined: Aug. 2003
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Posted on: Sep. 03 2003,3:56 pm |
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Shaker, you can probably remember the billboard the Chamber put up: 35,000 FRIENDLY PEOPLE WELCOME SEABOARD CORP.
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Actually my wife is especially happy when my google check arrives each month. Thanks to douchbags like you, I get paid just for getting you worked up. -Liberal
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| Post Number: 9
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minnow
Unregistered
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Posted on: Sep. 03 2003,5:47 pm |
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Well, I must say...I told you so.
Who told you all it was all the same company? Hoffman is point man for the Boston family that owns everything. Seaboard, Premium pork....the others....it's ALL THE SAME PEOPLE!
Hoffmans a first class shiester...a swindler....a very, very smart man.
Who was it again who said the Time article had no relevance?
And remember Sparks helping Hoffman lie?
Who's da man now dog? 
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| Post Number: 10
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shaker
Group: Members
Posts: 435
Joined: Aug. 2003
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Posted on: Sep. 04 2003,4:41 pm |
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Maddog- I sure do remember that billboard- I wish you wouldn't have brought it up--every time I think about it I want to PUKE,.: 
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