Co-op oil mill plants seeds for growth with expansion
Agriculture Canola, sunflowers, seed oil crops added to crushing capacity
BY JIM STAFFORD
Published: October 24, 2008


The promise of a ready market for alternative crops for Oklahoma farmers has become a reality with a $3 million expansion of the Producers Cooperative Oil Mill, located at 6 SE 4, just south of Bricktown.

For more than 60 years, the Producers Co-op has processed cotton seeds into oils and other products. Now it has added canola, sunflowers and other "oilseed” crops to its processing menu, said Gary Conkling, president and chief executive officer.

Conkling joined a range of state agriculture and industry officials Thursday in celebrating the expansion in a news conference at the American Farmers and Ranchers downtown headquarters before opening the cooperative to plant tours.

Producers Cooperative Oil Mill claims 58 cotton gins in six states among its members, with annual sales of $70 million, Conkling said.


What changed
The cooperative has added capacity to crush between 500 and 700 tons of canola and sunflowers per day in addition to its current 1,200-tons-per-day capacity of cotton seed, Conkling said.
It accepted into its membership the farmer-owned Plains Oilseed Products Cooperative in 2007.

"We feel like expanding our crushing capabilities, that we are positioning ourselves to be an even more viable entity and more valuable not only to our member gins and cotton producers but producers of canola and sunflowers and other oilseeds,” Conkling said. "That in turn should bring diversity and economic stability to local co-ops,” he said.


Background to plan
American Farmers and Ranchers helped organize the Plains Oilseed Products Cooperative, which provides the promise of a ready market for alternative crops, said Ray Wulf, president and chief executive officer. The concept began with some brainstorming in Wulf’s office and was followed by a feasibility study funded by the U.S. Agriculture Department.
"The feasibility study went on to look at the dollars and cents that would allow producers to put those dollars from an alternative crop into their pockets and back into the economy of the state of Oklahoma,” Wulf said. "We felt it was a win-win situation for everybody.”

I've never really considered the co-op bad for aesthetics. It adds quite a bit of charm to the parking lot view from Bass Pro. I don't know that increased capacity actually means a physical expansion, probably just more efficient use of the space inside. Consider it an opportunity for the visiting hicks (no flames, please) to feel a connection to the big city.

I don't know that increased capacity actually means a physical expansion, probably just more efficient use of the space inside.


That's probably true. It's not very clear in the article.

They know they are getting ready to be bought out by the city so they are increasing the cost of the buyout. They have several other processing facilities that could have been used for the expansion.

I've never really considered the co-op bad for aesthetics. It adds quite a bit of charm to the parking lot view from Bass Pro. I don't know that increased capacity actually means a physical expansion, probably just more efficient use of the space inside. Consider it an opportunity for the visiting hicks (no flames, please) to feel a connection to the big city.

I agree...I don't mind them a bit.

And I doubt the city will "buy them out" anytime soon.

They know they are getting ready to be bought out by the city so they are increasing the cost of the buyout. They have several other processing facilities that could have been used for the expansion.So, if the City is going to buy them out, I guess that means we'll be having another Bond issue to vote on.

It will probably be part of MAPS III. You can't build a world-class boulevard with a cotton seed pressing operation fronting it.

It will be quite a while, if at all (I predict) before the city buys them out and they move. Their operation is huge, but more importantly, it depends completely on rail access, and there aren't many places around this area where they could have immediate rail access. Unless they doze Crossroads and move the operation to that location. The fair market value of that facility if enormous. The cost of moving the infrastructure of that facility will cost 100s of millions of dollars. The city will have to plunk down 100s of millions of dollars to buy them out. Thus, I predict, it will be the last thing to be done if it is ever done.

I don't really mind the appearance of the gins. Sort of reminds me of the agricultural heritage of our great state.

I agree that the cotton gins add more to OKC and Bricktown than they detract. Its kinda like Fisherman's Wharf in San Francisco. Tacky looking and smelling to high heavens, but part of the culture. Or like the mounds of rotting garbage piled on the sidewalks of NYC.

They could probably do a lot to make the outside not look so crappy, but it's almost iconic to the city it's been there so long. I believe it does fall into C2S....if OKC Rocks, or whatever they call themselves now, does then the cotton has to since it's farther east. I'd like to keep both...sort of an urban/rural mix. You could totally have a whole district over there related to it....the Cotton Exchange rises again...LOL.

The gins are just part of the landscape. Much better to have these familiar structures on view from the new downtown boulevard than to create a Disney Land OKC that lacks any feel of a real city.

I agree. I'd like them to be kept. You know, we ARE an agricultural city. Why deny it?

I'm fine with them too, and agree we don't need Disneyland......or more of Stuccotown.

I found an article from last year that discussed the city's buyout of the Cotton Mill (I looked, but I couldn't find it again). Cornett has already met with the owners and they've already discussed this expansion. The city plans to purchase the mill at some point in the future, but since it will cost a lot of cash, and they don't really have anything specific to put there, the plan is "wait and see". Neither side is attempting to screw the other. Both are just feeling their way along.

I agree. I'd like them to be kept. You know, we ARE an agricultural city. Why deny it?

We ARE? or WERE? I agree, it is a part of our city's history and it's fine with me if it stays or goes. I wouldn't say we are an agricultural city though.

I found an article from last year that discussed the city's buyout of the Cotton Mill (I looked, but I couldn't find it again). Cornett has already met with the owners and they've already discussed this expansion. The city plans to purchase the mill at some point in the future, but since it will cost a lot of cash, and they don't really have anything specific to put there, the plan is "wait and see". Neither side is attempting to screw the other. Both are just feeling their way along.

I have never thought that either side wanted or would screw the other. My point above was that due to the enormous cost of replicating or replacing the current infrastructure to another location, that this part of C2S or Maps *** or whatever vehicle will most likely be the last one and many many years down the road. Too much other land (that will be cheaper to develop) to develop first.

I have never thought that either side wanted or would screw the other. My point above was that due to the enormous cost of replicating or replacing the current infrastructure to another location, that this part of C2S or Maps *** or whatever vehicle will most likely be the last one and many many years down the road. Too much other land (that will be cheaper to develop) to develop first.

Well, somebody above had mentioned something about the mill was just trying to up the buyout price. That didn't seem to be the case from the article I read. They were a bit reluctant to sink the 3 or 4 million dollars needed for the upgrade if the city were just going to turn around and buy them out.

Basically, Cornett was trying to be diplomatic. The thing is ugly as hell and most everybody wants it to move. But it will be very pricey to move all that equipment to a new location, and everybody knows it. If it costs $100 million to buy out that land, then it's going to be a while before the anyone gets around to moving on it. The quote I found interesting was from the mill people, and said something like "Core to Shore is a long-term project. It's going to take 20 or 30 years to do everything." So while something will happen eventually, I wouldn't count on rapid movement on the cotton mill front.

We ARE? or WERE? I agree, it is a part of our city's history and it's fine with me if it stays or goes. I wouldn't say we are an agricultural city though.

You're right metro, agriculture does not affect OKC in any way now.


Are you just trying to be contrarian today?

You're right metro, agriculture does not affect OKC in any way now.


Are you just trying to be contrarian today?

No, just trying to have a diplomatic discussion. Do you really think we're more of an agricutural based city? I guess if you classify executive oil jobs as agriculture, then yes we are. Otherwise, our city has long diversified past the stockyards and mills days. We have a strong energy, government, health science, and aviation industries that far outweight the agricultural segment. Now, if you said agricultural state, then I might go for that, but I don't feel/see our city as an agricultural based city.

Producers Coop Oil Mill -- one of Oklahoma's great, historic businesses. Plants like these are the muscle and sinew of our urban industrial base, and should be encouraged, not talked down. Gritty, real -- and "all American."

It'd be very interesting to know how much tax revenue this plant has created over its life.

TOM ELMORE

For once...I agree.


*spits, hacks*

Producers Coop Oil Mill -- one of Oklahoma's great, historic businesses. Plants like these are the muscle and sinew of our urban industrial base, and should be encouraged, not talked down. Gritty, real -- and "all American."

It'd be very interesting to know how much tax revenue this plant has created over its life.

TOM ELMORE

Probably not near as much taxes as 300 townhomes and a shopping center.

www.atlanticstation.com

I used to really dislike those structures but after I joined this board and heard the perspectives of others, I now think they are part of the city's history and have been part of our landscape for as long as I can remember.

Also, there is soooo much un- and under-developed property all around downtown that trying to displace such a thriving operation is going to be a very low priority for quite some time.

If and when Core to Shore gets built out along with the dozens of other infill projects and we start to run out of room, then we can take another look. But I suspect those things will be there for most of our lifetimes.

... But I suspect those things will be there for most of our lifetimes.

I am sure they said the same thing about a cetain steel mill west of mid-town Atlanta until someone proposed a $2 billion development called Atlantic Station.

Personally, I'm concerned about the aesthetics too! It does not fit in well with all the development going on. They are building boathouses and developing the river so why would someone want that dirty gin exchange sitting right in the middle. It is very unattractive and does not sit well architecturally near the boathouse. It is time to raise the bar on aesthetics in OKC and make DT and all parts of the city cleaner and well maintained.

Personally, I'm concerned about the aesthetics too! It does not fit in well with all the development going on. They are building boathouses and developing the river so why would someone want that dirty gin exchange sitting right in the middle. It is very unattractive and does not sit well architecturally near the boathouse. It is time to raise the bar on aesthetics in OKC and make DT and all parts of the city cleaner and well maintained.

is anyone else surprised he didn't name drop dallas in his post and then diss okc?! i'm impressed.

I am sure they said the same thing about a cetain steel mill west of mid-town Atlanta until someone proposed a $2 billion development called Atlantic Station.

I think we heard you the first time. It our case, it makes no sense to drop that kinda of money when there is so much empty property around.

is anyone else surprised he didn't name drop dallas in his post and then diss okc?! i'm impressed.

Me too! Amazing.

It would be a great location for a multimodal transit station......that's what I would love to see there, although the west side of the UP line would work equally well. That land appears to be for sale.

Me too! Amazing.

I know! Apparently he's never been back east. Rust belt anyone? Or how about NYC, Pittsburg, Philly, Baltimore, Newark (hello!!!), or any other major metro back east that has tons of dirty industry all around. Heck, look at Houston in your own state, look at all the refineries and wells all over town. Makes OKC look clean. Look at the comments from visitors when they do reviews of us, notice how they talk about how surprised they are with our clean city.

It's okay. He just drank the Dallas kool-aid is all.

Looks like this will ultimately not be an issue:

Oklahoma City’s big cotton oil mill — an industrial presence just off downtown for 100-plus years — has bought a closed tire factory and land for a move, although it could be years away.

http://www.newsok.com/oklahoma-city-seed-mill-mulls-moving/article/3342150?custom_click=lead_story_title

Producers Cooperative Oil Mill Inc. acquired the former Bridgestone/Firestone Dayton Tire factory, which has more than 1 million square feet, plus 170 acres near SW 25 and Council Road. The cooperative’s long-term plan to move means the eventual removal of a huge obstacle to city planners’ even longer-term vision for revitalization between downtown and relocated Interstate 40. The cotton seed mill, at 6 SE 4, is on 43 acres just south of Bricktown. It is within the Core-to-Shore area of mostly blighted property south from present I-40 to the Oklahoma River that the city hopes to see brought back with a combination of public and private redevelopment.

Not that anyone should rush. Producers Cooperative, which underwent a $3 million expansion just last year, isn’t in a hurry, said Gary Conkling, president and chief executive. "All we’re really doing is planning for the future,” he said Friday. "We’ve kind of looked for land for several years.” Conkling said it could take four or five years for Producers Cooperative to relocate. He said it could take two years alone to get zoning approved and permits for the new location.

The cooperative, which has almost 60 member gins in six states and annual sales of around $70 million, considered moving to southwest Oklahoma, the heart of Sooner cotton-growing country, Conkling said. Access to rail service and interstate highways tipped the decision to move to the industrial sector of southwest Oklahoma City, he said. The cooperative paid $14.2 million for the closed tire factory and land, part of Will Rogers Business Park, a redevelopment project by suburban Kansas City, Kan.-based Big Industrial. Todd Mendon, Big Industrial’s managing director of marketing, was unavailable for comment.

The purchase means the 1 million-plus square feet of empty space in the former tire factory will not be added to Oklahoma City’s vacant industrial property rolls. "The best news is we’re putting viable manufacturing space back to work,” said Bob Puckett, industrial property specialist with Price Edwards & Co.

Great. Kills two birds with one stone. Fills a void where Dayton/Bridgestone closed AND gets that ugly plant out of downtown.

Questions which remain:
when will they sell (not soon it seems);
who ends up with the land (fairly wide open it seems)
what issues face a new landowner owner in changing the current industrial nature of the land to a new use (assuming a new owner desires to even make application for a non-industrial use.)

Personally, I'm concerned about the aesthetics too! It does not fit in well with all the development going on. They are building boathouses and developing the river so why would someone want that dirty gin exchange sitting right in the middle. It is very unattractive and does not sit well architecturally near the boathouse. It is time to raise the bar on aesthetics in OKC and make DT and all parts of the city cleaner and well maintained.

If you don't like that building, please buy it and tear it down. Otherwise, don't waste government money to make sure everything "blends in".

Once the seed/cotton gin moves, there will be several developers drooling at the mouth over this property. I almost bet that the City already has their eye on this property, would be an excellant site for a new convention center, and possibly a future location for a new arena once we outgrow the Ford Center.

I guess I'm the oddball here, but I like the cotton mill. It looks really cool and industrial. I like the way it is lit up at night. I think it adds character to the city. Just like all the old oil derricks across the cityscape did before they were all taken down. What's wrong with having something industrial in the city? if you ask me, it's more interesting than having the whole city be single family homes, shopping centers, strip malls, fast food restaurants and big box stores. Every city has so much of that type of development that places all across the country have become indistinguishable from each other. And I fear that that is the type of development that would replace the cotton mill. Embrace the grit!

Every city has a gritty, industrial side to it. Yes Metro, I have been to the East coast and have seen first hand the steel mills and smoke stacks in that part of the country. I personally think that the city leaders of OKC are looking more long term and since this is a major door way into the city, then I believe "image" and "perception" plays an integral role in what out of towners and tourists think about how the city looks. As the saying goes, first impressions are everything! Futhermore, with all the development transpiring and the Core to Shore proposal starting to happen, I believe the mill site is "prime" Real Estate and it would be in OKC best interest to acquire that parcel of land for redevelopment. I am sure this will happen in the future.

I guess I'm the oddball here, but I like the cotton mill. It looks really cool and industrial. I like the way it is lit up at night. I think it adds character to the city. Just like all the old oil derricks across the cityscape did before they were all taken down. What's wrong with having something industrial in the city? if you ask me, it's more interesting than having the whole city be single family homes, shopping centers, strip malls, fast food restaurants and big box stores. Every city has so much of that type of development that places all across the country have become indistinguishable from each other. And I fear that that is the type of development that would replace the cotton mill. Embrace the grit!

Hear, hear!

Since this is at a minimum six years away from selling the land and relocating, any chance this becomes the sight for a multi rail station like what we have been talking about? It will be right next to the new highway, the boulevard and close enough to I-235 to integrate with that as well.

Where did you get the minimum 6 years figure?

Where did you get the minimum 6 years figure?

My bad, four to five.

"Conkling said it could take four or five years for Producers Cooperative to relocate. He said it could take two years alone to get zoning approved and permits for the new location."

I was adding four years to relocate and two years for zoning. Obviously the zoning is included in the relocation process.

Thanks for clarifying warreng, was just wondering how you achieved your number. Personally I agree with both sides of the argument. It's not as hickish as people make it out to be and adds to the urban grit. If removed, it will almost definitely be used for a better purpose, preferably a large scale T.O.D./ multi-modal transit center as is what is prospectively planned.

I've got to admit I've become fond of seeing the cotton mill looming in the distance when I cross the Finley Bridge going south, or when I'm on the south canal.. It's really kind of a neat looking place. But it's not the best use for that land- it would be really awesome if it could be adaptively reused, but that would take someone really really creative.

Not sure if I'll miss the mill, but I do miss the Wonder Bread Plant that was on the S. side of I-40 @ Robinson, remember driving along I-40 and enjoying the fresh smell of baked bread.

Not sure if I'll miss the mill, but I do miss the Wonder Bread Plant that was on the S. side of I-40 @ Robinson, remember driving along I-40 and enjoying the fresh smell of baked bread.

If you drive up Broadway just south of 23rd Street, you can get that smell back. :)

I've kind of come around on those mills and wouldn't mind seeing some or all of it incorporated into some sort of mixed-use development. There is so little that is unique about OKC's setting or architecture that I hate to see anything scraped.

But the idea they are willing to relocate is fantastic, because no matter what, we definitely don't want that operation there in the longer term.

I suspect there realize they can sell that property for a pretty penny at some point in the future, then merely move to a new location they've purchased on the cheap. Very wise business decisions on their part.

I know it will never happen, but it would be cool to keep the integrity of the Mills, along with the history and somehow integrate a multi-modal rail station into it. Again, wishful thinking, but it would definitely be one of a kind.

Don't get me wrong. I appreciate that every city has industrial areas and I definitely don't want OKC to be cookie cutter. I am strongly in favor of OKC Rocks/Rocktown staying right where it is for the indefinite future. I even had a lengthy argument about that on OKMet.

But between the Cotton Mill location being the gateway to downtown, and the fact that the land is valuable to downtown development, I am in favor of the operation relocating.