RYAM Sues City Over Bioethanol Decision

Rayonier Advanced Materials (RYAM) has filed a lawsuit challenging the city of Fernandina Beach's decision to deny the company's plan to build and operate a bioethanol production plant at its Gum Street complex.

RYAM filed the lawsuit on Feb. 28 in Nassau County Superior Court following the city's ruling on Feb. 4 that the bioethanol project was in violation of the city Comprehensive Plan and Land Development Code (LDC).

 

RYAM had applied to the city to build a $53 million bioethanol production facility that would make 7.5 million gallons of ethanol a year. Also included were several storage tanks and the fuel would be trucked off site to potential customers.

At issue was whether bioethanol production was "chemical manufacturing," which is prohibited by the city's Land Development Code. RYAM argued the process was fermentation similar to making beer and alcohol and should be allowed.

 

RYAM's lawsuit claims that the city has failed to follow its established procedures for consideration and approval of the project. RYAM states the city did not allow the process to play out before the city's Technical Review Committee.

"Section 11.03.02 states that all applications for site plans shall be reviewed by the TRC. Under section 9.0503(A) and 11.0302, the TRC must prepare a preliminary compliance report and hold a public meeting to consider the preliminary compliance report and any proposed revisions to the application. If the application fails to comply with the standards and criteria set for in the LDC, the compliance report must specifically identify the manner in which the application is deficient, including a citation of applicable sections of the LDC" that lawsuit states.

 

RYAM attorneys claim "the City has failed to follow the process set forth above in its review of RYAM's site plan amendment application."

RYAM also took issue with provisions of the Comprehensive Plan, citing the lack "to create a statutorily permitted consistency review process."

 

Also, of note in the lawsuit is the claim that city staff and city officials bowed to political pressure from the community.

 

"Opponents of the Project, including former and current members of the City Commission and the Board of Adjustment, have taken the erroneous position that the Project represents either chemical manufacturing or chemical refining, which are not permitted. The City's Staff's machination to bow to political pressure from the community, candidates for political offices and members of the City Commission to adopt this erroneous interpretation is at the heart of this dispute."

 

 

 

City Manager Sarah Campbell issued a notice to RYAM in February of the city's decision. "Given the applicable requirements of the Comprehensive Plan and the LDC and the statutory requirements to enforce them, state law requires the City to reject the site plan application related to the development and operation of the proposed 2G Bioethanol Plant and enforce its Comprehensive Plan and LDC. As such, the City will take no further action on the site application concerning the proposed Bioethanol Plant," the notification to RYAM stated.

At issue was whether bioethanol production was "chemical manufacturing," which is prohibited by the city's Land Development Code. RYAM argued the process was fermentation similar to making beer and alcohol and should be allowed.

 

"Both the Comprehensive Plan, in its Industrial future land use category, and the LDC, in the definitions applicable to the Heavy Industrial zoning, clearly and expressly prohibit the development and operation of the proposed 2G Bioethanol Plant. Comprehensive Plan Policy 1.07.12(g) clearly provides that 'chemical or petroleum manufacturing or refining ... shall be prohibited.' Under this mandatory prohibition, the production of chemical, including the Ethanol manufacturing or refining proposed to occur in the 2G Bioethanol Plant, are prohibited uses in the Industrial future land use category," the notification stated.

Tom Budd, president of Fernandina Wins, Inc., doing business as No Ethanol Fernandina said "We were surprised that RYAM has lashed out at the City with an allegation that the City has acted in bad faith.  We believe that City officials were meticulous in following their own rules and have been fair to RYAM throughout the process.  It is unfortunate, though not unexpected, that RYAM has threatened the City with financial claims that we don’t believe will succeed."

RYAM is challenging that determination in its lawsuit saying city regulations "are silent as to the meaning of these phrases. Importantly, the City employs no one with the expertise to draw meaningful technical distinctions between the various processes and has never sought someone with the requisite expertise to review RYAM's site plan application."

 

RYAM states in the lawsuit that it has spent $3.5 million for engineering, site planning, design and safety/environmental planning for the production facility. The company has spent another $448,000 for experts to weigh in on support of its application to the city.