John Lannom, attorney for the river port at Cates Landing, told the Port Authority board of directors, it is imperative to get a terminal up and running and barges going in and out in order to attract an industry.

Lannom delivered a detailed overview of the Cates Landing project and gave specifics as to what must happen for the port in northern Lake County to become a reality.

Lannom's presentation came at the monthly meeting of the Northwest Tennessee Port Authority board of directors held on Oct. 9 at the Gibson Electric conference room in Tiptonville. The meeting was chaired by Jimmy Williamson of Dyersburg with the four Lake County members of the board creating the minimum necessary for a quorum. Ralph Hinson of Dyersburg and the two Obion County representatives were absent. The four Lake County members attending were Billy Earl Gray, Mack Forrester, Marcia Mills and Tony White.

Williamson said actual dredging of the harbor will begin on about Oct. 25 with a completion date of near Christmas. Also, riprap on the banks of the harbor should be completed by April 2009.

Great Lakes Dredging is the contractor for the Cates project.

Comments by Williamson and Lannom indicated the three-county drive for a river port at Cates Landing has entered a crucial phase and that money is in short supply.

"We must conserve what funds we have to work toward this next loan," said Williamson.

"The only thing we are paying are our fees to attorneys and engineering."

Williamson said after the meeting, the Port Authority has about $260,000 in working capital and could receive an additional $100,000 back from the Corps of Engineers for money already paid to them.

Williamson said the port is currently seeking a $10-12 million loan from First Citizens Bank in Dyersburg and First State Bank in Union City. The USDA would guarantee the loan, if approved.

The loan from the respective banks is currently being processed.

Williamson said that Lannom and the Dyersburg engineering firm of Forcum Lannom are now working pro bono for the port project. He added that the only fees paid out to Lannom and the engineering firm were for services that were sub-contracted out through them.

"The (nationwide) financial meltdown has complicated things," Williamson said.

He asked that Bill Stalnaker, an Arizona businessman with land holdings in Lake County, be terminated by the Port Authority. Stalnaker had been contracted by the Authority as a consultant to seek capital for the project. He was being paid $2,500 per month.

"We want to terminate the contract with him but encourage him to stay with us," said Williamson. "The services that we hired him for, we no longer need.

"We want to use volunteers to head up marketing."

Kerry Brannon, a former TVA employee who has been very involved with the drive for the port but has now retired, offered to volunteer. He also was called out of order by Williamson when he continued to question him about a natural gas line to the port during Williamson's request to terminate Stalnaker.

"The financial markets he (Stalnaker) had contacts with have melted down," said Williamson.

The board was not eager to terminate him. "Have you discussed this with him?" asked Forrester.

"No, not without permission of the board," Williamson replied. "The board needs to act on this. There is a contract with Bill."

Williamson also reported that Stalnaker had health issues in recent months.

Gray made the motion to terminate and White seconded and it passed 4-1 with Mills voting no.

Maurice Owen, port manager for the Cates project, said he has been working closely with Associated Terminals to create a relationship with them and to work toward marketing the port.

Owen also said there was a Wisconsin prospect for the port that "does look promising."

Lannom made his presentation illustrating it on a large drawing board.

He said the port at Cates Landing needs a dock facility, railroad spur, high-pressure natural gas line, three-phase electricity and industrial wastewater service from the city of Tiptonville.

Lannom said it was imperative for the port to be built in increments.

"A $40-60 million facility is simply not feasible at this time," he said. "We are out of money and we don't even have a dredged harbor.

"We have paid $3.5 million to the Corps (of Engineers).

"At this time, the port has no collateral, no business and no viable prospects. It is not there yet.

"By Christmas, we hope to have the harbor dredged and rip rap."

Lannom said one good prospect for the port is a container distribution center, and that there was a potential client in St. Louis. He said the port needed to get specific customers.

Lannom noted that with a firm industrial commitment, the related projects like highway, rail and gas line would fall in place.

"When Dyersburg got an industry, everything happened quickly after that," he added.

He noted that after the terminal, which would be built first, it could be followed by the "super" two-lane highway on SR 22, the railroad spur from TennKen Railroad and a high-pressure natural gas line.

Pre-construction surveys have been done for both the super two-lane and the railroad spur.

"It is important to get barges moving in and out as soon as we can. If an industry says it is coming, that triggers all that bird-in-hand financing," Lannom said.

"It all changes when we have barges coming in and out.

"The three counties have been very generous. We cannot ask the three counties for any more money.

"There is some skepticism out there about this project."

Lannom said the amount of money the Port Authority could borrow would be in direct relation to the amount of money the port itself could generate through income from tariffs and rent.

"You (Lannom) put this in plain and simple terms," said Forrester. "It was an excellent presentation."

"You have got to take this in small bites," Williamson added.

Williamson noted when the Cates site came close to landing the Nucor steel plant last year, the state of Tennessee seemed ready to finance the natural gas line at that time, just on the promise of the industry.

The Port Authority, through Lannom, has hired Memphis attorney Leo Bearman to represent them in a lawsuit to stop the port, filed by one of the landowners in the condemnation process. "The lawsuit is going all right," Lannom said. He estimated the judge could issue a ruling in federal court in April 2009.

The condemnation trials, held in Lake County Circuit Court, are also expected to be set for next spring.

The board approved deeding three-fourths acres of mitigation land near the Reelfoot Lake spillway to the Tennessee Department of Transportation for the spillway replacement project.