City leaders today moved to assume ownership of the Materials Recycling Facility and plan to implement new strategy to bring system back online
MONTGOMERY – The City of Montgomery and the Solid Waste Disposal Authority of the City of Montgomery, a coalition created by the City to operate the Materials Recycling Facility (MRF), today signed an agreement to acquire the MRF and adjacent lot from current owner and former operator, IREP, for $625,000 and other consideration.
“Although it’s been a long road, today marks a significant step toward bringing one of the most technologically advanced recycling facilities in the nation back online,” Montgomery Mayor Todd Strange. “We remain committed to our goal of protecting the environment, while providing a cost effective and efficient service to citizens. Our vision is to find a partner who can not only take over operations at the facility and succeed, but we want to find someone who will lead us into the future and set an example other cities can follow.”
The Agreement contemplates that IREP will promptly file a Chapter 11 bankruptcy case and will request that the terms of the Agreement be considered for approval by the Bankruptcy Court in accordance with a schedule and procedures established by the Court.
The Agreement also provides the closing of the purchase will be held within five business days after the Bankruptcy Court’s approval of the agreement. After the allotted time, the approved purchaser will become the owner of the facility, together with all related machinery and equipment.
Per approval and finalization of the agreements, City officials plan to find an organization capable of resuming operations at the facility. City of Montgomery Finance Director Barry Crabb met with more than five potential operators over the past months and will continue meeting with interested parties. Any potential operator must agree to take the facility and process recycling without any additional financial commitments on behalf of the City and Authority.
Opened in April 2014, the MRF spurred from a public-private partnership with the goal of finding a forward-thinking and environmentally-conscious solution to Montgomery’s recycling needs. Recycling options still exist for Montgomery residents while the MRF is offline thanks to private sector partners and city services, all of which are listed at http://www.montgomeryal.gov/live/recycling.
All rights reserved, 2016.
