The City of South Sioux City announced on Thursday that it has reached a settlement that ends years of legal issues regarding the now-closed Big Ox Energy facility.
As part of the agreement, the city will acquire the 28.52-acre facility that has been closed since 2019 when Big Ox Energy discharged waste into the city’s sewer system, with the noxious fumes from that waste making its way into numerous homes, forcing almost two dozen residents to evacuate their homes.
The company’s efforts to turn wastewater into an alternative energy source ultimately led to a series of lawsuits involving the city, a number of residents and the company. Big Ox Energy eventually shut down, leaving behind millions of dollars in unpaid bills and legal fees.
The announced agreement between the City of South Sioux City, Wells Fargo (as a collateral trustee) and NLC requires the city to pay $9.75 million, the first $4.5 million due yet this year and the remaining $5.25 million to be paid over 10 years a 0 percent interest. Payments will be made through the City’s utility account, which is expected to benefit from increased revenues driven by industrial expansion.
The City of South Sioux City, in return, will receive the following:
— Acquisition of 28.52 of industrial-zoned land, complete with a paved road, sanitary sewer and water infrastructure. The land is adjacent to the previously-closed Big Ox facility.
— Transfer of a 42,960-square foot industrial plant building to the City, currently assessed by Dakota County at a value of $5,612,135.
— Ownership of a natural gas skid, which is connected to a major gas line — an asset that enhances the property’s resale and redevelopment potential.
The city intends to put the acquired property up for resale within the next year, hoping to attract new industrial investment to the area.
The agreement also resolves all lawsuits and legal claims, which allows the City of South Sioux City to move forward free of ongoing legal costs, potential liability and uncertainty.
More details to come in next week’s edition of the Dakota County Star.
