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CHS nitrogen plant valued at $2.04 billion

CHS Inc. and the Stutsman County (N.D.) Commission have agreed on a value of $2.04 billion for the planned Spiritwood nitrogen fertilizer plant, with a value for taxation of $1.33 billion.

CHS Inc. and the Stutsman County (N.D.) Commission have agreed on a value of $2.04 billion for the planned Spiritwood nitrogen fertilizer plant, with a value for taxation of $1.33 billion.

"That will get us started on the property tax exemption discussions," says Casey Bradley, auditor and chief operating officer for Stutsman County.

Now that a value for taxation has been agreed upon, CHS will negotiate with taxing entities about possible property tax exemptions, including representatives of Stutsman County, the Jamestown Rural Fire District and Barnes County North.

Consultant firm Thos. Y. Pickett & Co. provided the estimated value for the planned property, excluding land and personal property, through analysis of information provided by CHS.

Pickett's results were reviewed by CHS, which then discussed them with Pickett representatives.

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The total value includes $701 million in plant machinery and equipment, which is not taxable in Stutsman County, Bradley says.

Initial estimates of the project's cost were much lower, and Commissioner Dale Marks wondered if the higher cost could jeopardize the project.

"... I don't think there was any real surprise at the valuation," Bradley says, noting that the CHS board of directors still has to approve the project, likely in April or May.

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