After Lithium Nevada proposed a possible transloading facility on a 177.31 acre piece of city-owned property located to the west of the Winnemucca Municipal Airport, there was much discussion among residents of the area and local officials.
Over the past several weeks, City and industry officials have fielded dozens of questions ranging from types of materials that will be handled, to ownership and authority over the land. Discussions have been extensive and ultimately resulted in the city tentatively approving Lithium Nevada’s proposal to lease the land for $7,500 per month, while also rejecting their bid to purchase the land outright for $960,000 during a public auction.
The decision came during the council's regular meeting May 23 with Councilman Ashley Maden abstaining from the vote and discussion due to her employment by Lithium Nevada.
According to City Attorney Kent Maher, City officials will likely give their official approval over the lease proposal at their next meeting after meeting with Lithium Nevada officials to go over the terms of the lease agreement.
The Council agreed that it was in the best interest of the City to lease the property rather than sell it to maintain a certain level of charge over the safety and operations of the facility since there was significant concern raised by residents.
“I think that the very best for our community is a lease that allows us the opportunity to watch the performance out at that industrial park as we move forward,” said Councilman Mike Owens.
The City only received the single bid during the public auction, which was significantly higher than the minimum bid required, which was $250,000 for sale or $1,875 per month for lease, outlined by a third party appraiser. It was determined previously that the values for sale or lease of the property, which were seen as “shockingly low” for the size of the land, were largely determined by the current lack of legal access, which Lithium Nevada will have to construct.
The facility will transload liquid sulfur, soda ash, quicklime, caustic soda, muriatic acid, and off-road diesel, which were found to be of minimal risk to surrounding properties and resident by experts. It was also determined, through U.S. patent, that the City has sole authority over the governance over the property, despite its proximity to the Airport and its location outside of City limits.
In other Council news:
•The Council approved a street closure request by the Humboldt County Library on June 14 from Buad Street from the Library driveway to Fifth Street to hold their Summer Learning Kick-Off Party from 9 a.m. to 12 p.m.
•A salary range table for City employees for the 2023-2024 fiscal year was approved.
•The Council approved the 2023-2024 fiscal year budget with an amendment to the number of positions at the Winnemucca Police department, updating it from 17 to 18 positions.
According to Mayor Rich Stone, the ending fund balance for the City is around 45 percent, slightly under what is preferable, but the City does overestimate expenses and underestimates revenues, so it is not expected to be an issue.
•A service contract with Alsco was approved with a three year agreement for floor mat services, which will have a 35 to 40 percent cost savings to the City compared to costs with the previous provider, according to City Manager Alicia Heiser.
“It’s not a huge expense but it is some cost savings to the City if we go with Alsco,” said Heiser.
•The Council approved a request for the City to submit a letter of opposition to Senate Bill 226, regarding prevailing wages, to legislation.
If approved, the bill would have a significant impact on costs of projects on public lands done by contractors.
According to Maher, prevailing wages are around 35 percent higher.
“This would have a devastating effect on the cost of things if approved,” said Stone.