Today, at their "emergency meeting" of the BAC board, they accepted a $300,000 cash offer for the MMM&S plant, equipment, and 3.5 acres of prime Palmer realty.
Keep in mind, this property just appraised for $860,000. Which seemed way out of line for an aged facility in need of upgrades. When they couldn't get any takers for such a high price, they then dropped it to Boro assessed value, which is $410,000.
Reportedly, Greg G of Mike's Quality Meats is the lucky new owner, at $300,000.
Was taking what amounts to a $560,000 (at the most) or a $110,000 loss, good for the agriculture community? Too early to say, but there is hope that a real business person can turn around the "we do it that way because it's always done that way" mentality that permeates Alaska Ag-and MMM&S in particular. Governments and government employees are not rewarded for efficiency, but small business relies upon finding the most economical operating model to grow and succeed.
Was the offer a wise business move by Mike's Meats? Again, one cannot say at this point. It's a lot to gamble on this plant, with it's terrible operating loss history. Will the community be at least as well served? Surely, with better management, the plant will prove to be viable and provide better service than is currently available. Perhaps there are plans to expand the capacity beyond the ten percent pittance it is utilized today. But regardless of that, many are breathing a little easier, knowing the plant will stay open.
That Alaska Correctional Industries sign will just have to go, though!
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