Major Industrial Site Gets New Owner, Development Commitment

July 25, 2007

CEMUS, L.L.C., a corporation owned by two local businessmen, has purchased a large and long-dormant parcel of land adjacent to the Mississippi River and is returning it to commerce as a shipping, storage, and distribution center. 

CEMUS, owned by Garry Lewis and Cary Goss, both of Baton Rouge, purchased a 65-acre parcel once owned by Kaiser Aluminum.  The property includes approximately ˝ mile of river frontage just south of the US Highway 190 Bridge.  Combined with an earlier purchase in the area, today’s purchase gives CEMUS nearly 90 acres of deepwater terminal property.  Two tenants and nearly $30 million of investment were announced for the property, with the announcement of an additional $250 million investment expected shortly.

CEMUS was represented in the purchase by Tony DeMarco, SIOR, an industrial real estate specialist with NAI/Latter & Blum.  DeMarco was very familiar with the site and its attributes, having represented Kaiser when that company sold the site as part of a disposition of assets in the late 1990’s.

DeMarco said CEMUS has invested $14.5 million in the purchase and plans an additional $5 million in dock repairs and improvement of an existing flat storage warehouse.  DeMarco announced that two tenants, Southern Ionics and River Mountain Quarries, have committed to the new project.  Southern Ionics will invest $11 Million in plant construction on 9.5 acres at the site with 30 local employees.  River Mountain Quarries has leased 13 acres of the site but has not yet released details of its development.  

CEMUS co-owner Lewis said an additional investment is planned by a prospective CEMUS tenant for development of a $250 Million liquid and dry bulk storage facility.  “If confirmed, this potential investment will give the project direct economic impact exceeding $280 Million with a very positive job impact for the community,” said Lewis. 

DeMarco said the land is unique in this part of the Mississippi River Valley.

“Unlike nearly all land from Baton Rouge to the mouth of the river, this parcel and some adjacent land are located on what is called the ‘Baton Rouge Crest,’” said DeMarco.  “As a result, the property does not require levees. The lack of a levee greatly facilitates river access.”

DeMarco added “CEMUS believes the approximate 1/2 mile river frontage and deep water pier are of strategic importance to America's Heartland, as well as to Baton Rouge area customers.”

The site made a fundamental war contribution by the processing of “red dirt” by a prior owner, the U.S. Government, in WWII. The “red dirt” (bauxite) was unsightly and created an orange haze during several years of operations, leading the Louisiana DOTD and public officials to select a similar orange paint color for the Huey P. Long Bridge. The "red dirt," a key component in aluminum production, is innocuous and the site is environmentally clean.

The Kaiser Companies, who had helped stop and reverse the Japanese onslaught in the Pacific with its rapid construction of Navy aircraft carriers (affectionately called "jeep carriers"), eventually took over this site and related facilities, which then evolved into "Kaiser Aluminum." Kaiser ceased operations at the site in 1984. DeMarco later brokered a sale for Kaiser to its most recent owner, Formosa Plastics, in 1999.

CEMUS issued a statement saying “Re-utilization of the site can greatly assist Baton Rouge citizens by providing jobs and products at a more competitive price with significant savings in shipping and transportation costs.”

CEMUS also noted the support of the State of Louisiana and of the Louisiana Economic Development. CEMUS appreciates the assistance of its consultants which include Mr. Camp Matens, plant engineer over 30 years for Kaiser; Mr. Richard Meyers, engineer for the Port of Lake Charles; Volkert Engineers; Mr. Rick Richards former President and CEO of Columbia Energy, Mr. Ed Peterson, Executive Director of the River Pilots Association; Mr. Pete Lee of Ecoscience; Mr. Billy Taylor, engineer for Les McLin & Associates, Engineers & Surveyors; Mr. Doug Villien, Land Planner; Mr. D. Wood and Ms. Joan Young, Executive Director and SR. Project Manager, E.B.R., Baton Rouge Chamber of Commerce; and Mr. Tony DeMarco, SIOR, of Latter and Blum. Financing is through IBERIABANK, with headquarters in Lafayette and numerous locations throughout Baton Rouge.

A CEMUS statement said that credit for the first two major tenants belongs to Louisiana Economic Development. LED is supporting discussions now under way with other major national tenants including both liquid and dry bulk users.

Because of his expertise and knowledge of the property and the Mississippi River as a sea port, Mr. DeMarco has been asked to assist CEMUS and its consultants in marketing the site as a joint use terminal. DeMarco noted that rail, river, interstate access, and multiple pipelines support the remaining 65 acres, which are still available are generating strong interest across the nation.

For More Information: Don Cooper (504) 885-9080