Wednesday, February 15, 2017

Alaska Ag.....The boomerang

Some issues are just never dead and buried for good, not really.  Like the amazingly accurate weapon of the Australian outback-the boomerang-sometimes, events just conspire to return troubles, over and over again.

Such is the case with MMM&S.

Oh, you thought the place sold?  And all was good over there for all the producers? The deal closed and the new owners in charge?

Well....not so much.  There is an environmental hazards review of sorts, to take place after break up this spring. Who knows what they will uncover with this $5000 contract, but any aged commercial property generally has contamination issues from previous decades. Typically they are relatively minor, and easily remedied, but it is not immediately clear who will end up paying for any necessary work. Best bet: The state.  (Side note: the contract was not signed by an officer of the BAC, but rather by the person who manages the loans for ARLF)

Rumors have arisen ((again) concerning "unusual irregularities" in the plant's accounting *cough cough* which could force another delay, or even a third party audit. No speculation about what the results might be, but given the topic and individuals involved-this would be a very good idea.

So no, the closing has not taken place yet.

In fact, there is this to consider:

The Division of Agriculture is recruiting (hiring!) a Production Manager at the slaughter plant in Palmer. The position is for maintaining the Hazard Analysis Critical Control Point (HACCP) process according to federal regulations for MMM&S.

Upshot: The State sold this asset for half its appraised value, is likely on the hook for environmental hazards, and to top it off, they are hiring an employee at $50,000 a year to oversee federally mandated requirements!


Dang that boomerang!

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