Grain terminal project delayed until spring

BOWDEN – Paterson Grain is pushing its timeline back to the spring of 2017 for the start of construction for its massive Bowden terminal project as it continues to navigate through provincial environmental regulatory issues.

The family-owned Winnipeg-based grain handling company had hoped to begin construction this fall but the process through Alberta Environment guidelines is taking longer than expected, said a senior company official.

“That would be fair to say. We would have liked to have gotten in there in the fall,” said Shane Paterson, the company's corporate development officer, whose firm announced last March it wanted to build an ultra-modern 55,000-metric-tonne grain handling facility that could cost up $40 million to construct.

“It is taking a little longer than we hoped. As I said, we went into this with our eyes wide open and we understand the process. It is unfortunate, but it does not change our view of the project and we continue to press on,” he added.

“We are very bullish about the project. As far as I am concerned everything is proceeding well. I am very confident we will be able to work through these relatively minor challenges.”

The senior company official, along with president and chief executive officer Andrew Paterson, came to Red Deer County on Oct. 13 to have talks with Red Deer County mayor Jim Wood and Connie Huelsman, Division 4 council member for the Bowden area.

Along with the environmental challenge, both sides also discussed the intersection issue at Highway 587 and Rge. Rd. 12, a kilometre west of the Town of Bowden and where the grain terminal project will be accessed.

Wood noted Alberta Transportation, which won't be involved in any cost sharing agreement, ordered the upgrade at the intersection near the Bowden Cemetery. He said Paterson and the county are now in negotiations on how much both sides will contribute to the cost, which is expected to be between $500,000 and $750,000.

“Typically in Red Deer County, development pays for itself because that is where we are at and how we do things, but I believe that intersection had problems in the past and is not the best intersection to start with,” said Wood, who is helping Paterson deal with the provincial environmental issues by providing names of key government contacts.

“Because we know that intersection is not all Paterson, what would be the appropriate contribution? We are still under negotiations.”

Paterson, noting the economic benefits the project will give the Central Alberta region, said he's confident an agreement can be reached with the county on the intersection issue.

“There are a lot of communities that would be very excited about a project of this magnitude in terms of tax revenue and spinoff benefits. This is an annuity for Bowden and the broader Red Deer community for many years to come,” said Paterson.

“I think that we can count on the support of Red Deer County. They have been good so far. I see no reason why the intersection would pose a threat to the development.”

In the meantime, Wood said he's pleased there is continued forward movement with the Paterson project, one that is critically important for the rural community, especially since the August announcement that the planned grain terminal project by GrainsConnect Canada for Niobe, a kilometre north of Innisfail, has been put on hold.

“There was no talk of this elevator not taking place, or anything like that. It was just normal conversations that just happen during big projects,” said Wood. “It's very much a go.”