Second sugar storage dome coming to Montgomery's near west side

The Montgomery Village Board voted unanimously Monday evening, Oct.12, to authorize the expenditure of up to $2.5 million in Tax Increment Financing (TIF) funds to assist the American Crystal Sugar Company with the construction of a second sugar storage dome on its property at 1601 Commerce Drive, just north of Aucutt Road on the village's near west side.

Justin VanVooren, the village's finance director, said American Crystal Sugar Company will submit construction plans for the second dome to the village for approval by Dec. 31.

Construction of the second dome is expected to be substantially complete by March 31, 2022, VanVooren said.

Village President Matt Brolley said he is very excited that American Crystal Sugar Company is now seeking to expand its storage capacity and operations in the village.

Brolley recalled he toured the firm's existing dome shortly after its construction in 2016 and noted that it is a massive structure.

"I'm glad they chose Montgomery and we are very glad they are here," said Theresa Sperling, a village board member.

Monday's board vote marked the second action by the board in recent months to facilitate the expansion of the facility. Last May 26 the board adopted a resolution approving an inducement agreement to allow the firm to utilize $2.5 million in TIF funds for the project.

Richard Young, the village's community development director, told the board May 26 the proposed $23.5 million project would be constructed in three phases and include modifications to an existing transfer station on the site and the construction of the second storage dome.

When questioned by board members, VanVooren, said the village would not have to sell any bonds to cover the $2.5 million TIF fund expense.

VanVooren said the firm is proposing to use the TIF funds for land development on their site and rehabilitation of existing structures.

"When I think of TIF funds, I think this is exactly what they should be used for," said board member Dan Gier.

"I think they have been a great partner with Montgomery and welcome the development," said board member Steve Jungermann.

The existing 134-foot-tall, dome-shaped storage building on the 20-acre property can hold up to 130 million pounds of sugar, according to company officials. It is the largest freestanding sugar storage facility not attached to a sugar factory in the country. A transfer facility is adjacent to the storage dome.