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Proposed aluminum plant in Barstow could be boon for region
- China Aluminium Network
- Post Time: 2014/3/13
- Click Amount: 554
BARSTOW >> A proposed aluminum factory that, if approved, would be one of the largest economic engines for the High Desert is now in the permitting process with the city.
Scuderia Development hopes to build in Barstow a 2.95 million square-foot aluminum manufacturing complex that would employ at least 2,000 people. The project is proposed to be built on 965 acres of vacant land in town, south of a former golf course, and southwest of Main Street and Lenwood Road.
“The proposed project is of such significance, it would be one of the largest projects of its kind and would have obliviously huge economic benefit for the entire High Desert region,” said Oliver Chi, assistant city manager for Barstow.
As part of the agreement, the city has agreed to reimburse Scuderia for $1.5 million in predevelopment costs if it is not approved by city officials.
“We weighed the risk,” said Chi. “We looked at our risk of $1.5 million if the project is not entitled by the council, but the payoff moving ahead if it is entitled is 2,300 new jobs at a new facility that will require an investment of $1.5 billion. It’s a project that could revitalize Barstow, and the City Council and staff felt it was an appropriate amount of risk we were taking on for a project of this magnitude.”
The permitting process is projected to be wrapped up late this year. If the process moves forward smoothly, construction on the first phase of the project is expected to take place over the course of 36 months.
“We at Scuderia minimize any predevelopment costs out of pocket,” said Eric Shen, CEO of Scuderia Development. “It’s not the intent to make the city be at risk or be out of pocket to any sort of costs. Scuderia will also commit to covering any sort of expenditures that the city endures throughout the course of the project should we not develop the entire project after entitlements are done.”
Shen said Barstow was strategically chosen because of close proximity to the nearby BNSF rail center, and logistics infrastructure.
Shen said the site is “ideal to transport finished product anywhere in the country.”
Inland Empire economist John Husing said the project, if approved, would be one of the largest, “if not the largest single operation in the High Desert.”
“This would be a big deal,” Husing said. “What I can tell you, given the nature of the High Desert labor force, which tends to be marginally educated and needs access to jobs that can lead to middle class incomes, this could allow them to train and move up to good pay. This is exactly what’s needed.”
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