One of the arguments for expansion of the frozen chicken operation at the Port is that the warehouses are away from the northern end of the property – where mixed use is more desirable.
However, we don’t know what anyone else would pay to lease land right on Pensacola Bay where the frozen chicken operation will be for the next 14 years if the lease amendment is passed. The Pensacola City Council has been given no other alternatives. We don’t know if any business or use might create more income or generate more, better paying jobs.
We do know that Pate-excuse me – I mean Northwest Florida Cold Storage will be paid substantial penalties if the City wants to cancel the lease under the new agreement. Port director Clyde Mathis told the Enterprise Operations committee the NWFCS investment will be between $2.5-$2.75 million. Plus, the Port will give them another $975,000 in state grant funds. – So their net investment is about $1.775 million.
If City cancels the lease before Dec. 31, 2013, the cost to terminate would be $4,150,000. The company will make $2.375 million profit on their investment—-a rate of return of 134%!!!!! Even if you stay with the $2.75 million investment – NWFCS makes a profit $1.4 million, ROI 51%!!!