A pair of major contracts related to the development of the North Central Ag Industrial Park were awarded by the Fort Dodge City Council on Tuesday.
The council hired Geislinger & Sons, of Watkins, Minn., to build water and sanitary sewer lines to the CJ Bio America plant site at a cost of $3,046,128.
The cost of building those lines will be paid by the company and the Webster County government under an agreement approved by the council Tuesday.
City Manager David Fierke said the company will pay about $1.9 million, while the county will pay about $1.2 million. The city, he said, will build and own the pipelines.
CJ Bio America executives have already signed the agreement. On Tuesday morning, the Webster County Board of Supervisors passed a resolution stating its intent to approve the agreement.
Mayor Matt Bemrich said all parties to the agreement have negotiated in good faith.
''We're more of a cog in the big picture,'' he said.
Other bidders for the pipeline work were S.M. Hentges & Sons, Jordan, Minn. ($3,187,888); H & W Contracting, Sioux Falls, S.D. ($3,232,699); Raccoon Valley Contractors, Waukee ($3,280,000) and Rasch Construction, Fort Dodge ($3,599,388).
Also on Tuesday, the council hired DRT Bio-Solids, of Oklahoma City, Okla., to remove sludge from lagoons at the wastewater treatment plant, 1801 Ave. B, at a cost of $517,000.
Sludge is the material left over from the wastewater treatment process.The three lagoons at the plant are full, and the sludge must be removed to prepare for plant modifications necessary to serve the North Central Ag Industrial Park.
Nutri-Ject Systems Inc., of Hudson, offered the only other bid for the sludge removal work. That company's price was $713,500.
The contracts awarded Tuesday represent the latest in series of projects costing millions of dollars that are needed to prepare for the expansion of the Ag Industrial Park.
Last month, the council hired Di-Mar Construction, of Excelsior, Minn., to build a 2-million-gallon water tank and pump station at the park. That company was awarded a $4, 670,000 contract.
In June, Rice Lake Construction Group, of Deerwood, Minn., was awarded a $2,438,600 contract for improvements at the John W. Pray Water Facility on Phinney Park Drive.
CJ Bio America will pay for the work related to its plant via higher than normal rates for water and sanitary sewer treatment.
The North Central Ag Industrial Park west of the city is home to the Valero Renewables ethanol plant, the former Tate & Lyle plant now being renovated by Cargill and the CJ Bio America plant, now under construction, where amino acids for use in livestock feed will be made.