Council backs exclusive negotiation pact with CaliCheese

Luis Hernandez

July 17, 2014

The City of Tulare and CaliCheese LLC., the startup company seeking to build a 300,000 square-foot cheese processing plant next to the wastewater treatment plant, are now going steady.

Following a unanimous council vote Tuesday night, local administrators and CaliCheese representatives are now negotiating exclusively for the 59 acres belonging to the city the company wants to purchase to build the plant.

"It's the most ideal location," said Robert Moultrie, representing CaliCheese. "It's an ideal site next to the water treatment plant."

In addressing the council, Moultrie said the proposed plant, valued at $250 million, will be one of the most modern cheese processing plant in the Tulare area.

The plant will likely hire 212 full time employees, Moultrie said.

Tulare Mayor David Macedo said he was impressed with CaliCheese during the project's early negotiations.

"They have dealt with us in good faith," he said.

The company has deposited $20,000 with the city, money earmark for city employees' time reviewing the project. In exchange, CaliCheese representatives sought the exclusive negotiation contract.

CaliCheese will also complete the Environmental Impact Report process since the beginning, Moultrie said. Previously, a meat processing plant was proposed for the site and city officials figured the EIR would suffice. The move was challenged and CaliChesse decided to start over.

"I think we are going to address all the issues," Moultrie said. "We are doing everything a good steward of the land would do. We'll address every concern any community group would have. We'll do it the right way. We want minimal to no challenges."

CaliCheese wants the EIR process to be completed by December.

Local engineering consulting firm Quad Knopf will help out with the EIR project. Moultrie said he recognize the short time frame.

"At some point, you have to be optimistic," he said.

Council member Carlton Jones questioned Moultrie about the plant's water source. As proposed, the plant is designed to use between 250,000 and 300,000 gallons of water a daily, Moultrie said. The plant would discharge 750,000 gallons a day through milking processing.

Jones was concerned where the water for the cheese plant would come from. Interim Tulare Public Works Director Joe Carlini said the plant would use water from two wells at the wastewater treatment plant that produce water with high nitrates, unfit for human consumption.

CaliCheese will likely spend money to treat the water, Moultrie said.

As for the discrepancy between the water draw and discharge, Moultrie said milk is mostly water, about 80 percent, and in processing it, the liquid is taken out.

"It all goes to the system and the city is able to use that water," he said. "We'll putting in more water than we'll be taking out."

CaliCheese will also take a very aggressive construction project schedule, Moultrie said. If the EIR process is completed by the end of the year, CaliCheese can start construction by the end of the first quarter in 2015.

The milk processing plant is a better project that the beef processing project, Moultrie said. There would be no odor and truck trips to the cheese plant would be reduced.

The county's milk production also increased interest for building the milk processing plant, Moultrie said.

"There's more milk produced in this county than in any other around," he said.

http://www.visaliatimesdelta.com/story/news/local/2014/07/17/council-backs-exclusive-negotiation-pact-calicheese/12770499/