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Producers Cooperative Oil Mill plans to sell most of its land, but will remain just south of Oklahoma City's Bricktown

Oil mill plans to keep 8 acres near downtown Oklahoma City and sell 170 acres of excess land.
by Richard Mize Modified: May 24, 2014 at 3:00 pm •  Published: May 24, 2014

“We were thinking that we would continue to see the growth of canola acres in Oklahoma to a level which would justify building a new plant, a larger plant that would be more cost effective, and have all the latest technology in it,” Rose said.

In Oklahoma, winter canola is usually grown in rotation with winter wheat, and both need about the same weather conditions. Canola came through the cold, dry 2013-2014 winter in good shape, but never got enough rain at the right time, said Gene Neuens, Producers Cooperative field representative

Producers Cooperative, meanwhile, turned to crushing spring canola seed from the Dakotas, Canada and the Texas Gulf Coast, Neuens said in a report on the co-op’s web page.

More canola acreage in Oklahoma, though, is where expansion lies, Rose said.

“We have seen acreage increase, but not to the level that would support such a new facility. So we’re still waiting on that,” Rose said. “We’ve had to kind of put our plans on hold, primarily because of the four years of drought in Oklahoma, which has affected not only our canola processing but our cotton seed processing.”

Tired of no sales

The property at SW 25 and Council Road has been for sale for just more than a year, said Randy Lacey, industrial broker with Newmark Grubb Levy Strange Beffort.

First, the shuttered factory and 74 acres were offered for $6 million. Now, 164 acres, minus the building, are on the market for $9.5 million. Producers Cooperative paid $14 million for the entire site in 2009.

The tire factory, built in 1976, is functionally obsolete and would be hard to reconfigure for a new user, Rose said, so Full Metal Demolition of Plano, Texas, was brought in to dismantle it to the foundation and recycle it all.

Lacey said the plan was to sell the factory and surrounding acreage first, then the remaining land adjoining it to the north.

New listing

Lacey said the land, with rail service and access from both SW 25 and Council, not far from Interstate 40 and State Highway 152 to I-44, should be an attractive offering for multiple heavy industrial users — whether manufacturing or warehouse-distribution or both.

“It’s in Hobby Lobby’s neighborhood out here, so there’s a lot of distribution going out of here. Once the land is cleared, we see that as a real possibility,” Lacey said. “And energy companies that are looking for 30-40 acres at a time — we can divide the land up into a few separate sections.”

by Richard Mize
Real Estate Editor
Real estate editor Richard Mize has edited The Oklahoman's weekly residential real estate section and covered housing, commercial real estate, construction, development, finance and related business since 1999. From 1989 to 1999, he worked...
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