SCOTT CITY GETS GRANTS WITH NEW PORT BUSINESS

SCOTT CITY -- The Southeast Missouri Regional Port Authority's latest company will not only benefit the port and Scott City, but Cape Girardeau as well.

Canal Chip is setting up a $10 million wood chip company at the port. The company has already brought a certain amount of prosperity to Scott City, which received a $100,000 Community Development Block Grant that was tied into new businesses at the port.

The grant will go to establish a new well for the city's water system.

Bringing the company to the port authority was a group effort that involved port officials, port authority board members, Scott City representatives, members of the Cape Girardeau Chamber of Commerce and the Cape Girardeau Area Industrial Recruitment Association.

John Mehner, Cape Girardeau Chamber of Commerce executive director, said development of the port means good things for Cape Girardeau.

"Anything that happens in north Scott County or south Cape Girardeau County benefits both counties," Mehner said.

Mehner said developers have expressed an interest in Nash Road lately. "We expect to have growth in manufacturing and industry," he said of the road that runs along the southern border of Cape Girardeau County. "Maybe some wholesale distribution but predominantly what is considered industry" is anticipated.

Karen Kincy and Mitch Robinson, both of the industrial recruitment association, said they had a small part in bringing the new company to the port.

Kincy said the association does what it can to encourage economic development in the area. "We worked very closely with (port authority director) Dan Overbey in trying to address some of the financing questions the company had," she said.

Robinson said his group played "a tiny part" and Overbey and the port authority board deserve the credit for bringing in the new business.

Overbey said Canal Chip is a subsidiary of Canal Wood, which is a subsidiary of Canal Industries of Charlotte, N.C. The port's company will make the fifth wood chip mill Canal Industries owns, he said.

The mill, which is expecting to open in mid-1998, will employ about 15 people locally and another 10 to 15 throughout the region, Overbey said.

Overbey said the port and Scott City were awarded a $190,000 grant for improvements to the city's water system and the port. Besides the new city well, which will be used in part to supply water to Canal Chip, 3,000 feet of road between Dyno Midwest and Canal Chip will be upgraded.

Canal Chip is expected to use about 70,000 gallons of water a day to maintain moisture in its stored logs. This improves the quality of the wood and acts as a fire prevention, Overbey said.

Overbey said he's grateful for the help from State Rep. Gene Copeland who helped push the grant through.