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What Now? - Porter Elevator Auction on March 31 Ends With No Sale of Facility

The Porter Elevator Auction at Marshall's AmericInn on March 31 ended in an unexpected way. After Bidding Seperately for the Elevator Facility and Equipment packages, a combined auction of both packages together was conducted. The result after several bids between Hendricks Farmers Grain Company and Farmers Cooperative Elevator, based in Hanley Falls, was a bid of $710,000 by FCE for both packages. After a 5 minute recess from the auction, it was announced that the Trustee and Secured Parties had rejected the bid and the elevator would not be sold. The results left the standing-room only crowd shocked, wondering what will be next for the Porter Elevator facility, a question that remained unanswered by the Bankruptcy Trustee. Unconfirmed reports are that the total bids from the sale came in $2.5 million less than was being required by the secured parties.


The sale of the elevator property itself was contingent upon approval from The United States Bankruptcy Court. Had the bid been accepted, it would have been a two to threem month process before the sale was officially approved, but allowing time for the facility to be prepared and open for the busy harvest season. With the final bid price from the auction being unacceptable to the secured parties, it is unknown if an when the facility will reopen to serve our local community once again. Now the question stands, what's next for the Porter Elevator and the huge void it leaves in the Porter community and economy?


Here are the results from the auction:

-Package A (Elevator Property and buildings) - $500,000 - Farmers Coop Elevator. Subject to approval by US Bankruptcy Court.

 -Package B (Bunkers) - No Bid

 -Package C (Equipment) - $130,000 - Hendricks Farmers

 -Package D (Semis, Trailers) - $155,000 - Hutt Oil Company


Package A and C were later bid together with a starting bid of $680,000 with Hendricks and FCE bidding. FCE's final bid was $710,000, which after a 5 minute recess the bid was rejected by the trustee and secured parties. The original $500,000 bid for Package A was also rejected.



Bills Introduced in Minnesota Legislature to Prevent Future "Porter Elevator" Type Incidents

District 16A Representative Chris Swedzinski has introduced House File 3186. The bill is co-authored by 6 other members of the House of Representatives and was introduced on March 16 and referred to the House Committee on Agriculture Policy, which is chaired by Rep. Paul Anderson, a co-author of the bill from Starbuck.


District 16 Senator Gary Dahms has authored a companion bill in the Senate, Senate File 3161, that was heard on March 23 and referred to the Senate Committee on Jobs, Agriculture and Rural Development.


The Bill would establish a grain credit contract indemnity program established, bond amounts for licensed grain buyers increased, portion of sales tax revenue derived from the sale of grain bins dedicated, sales tax on grain bins eliminated, gross receipts tax for grain bins established to fund the indemnity payments if program funding falls below a threshold amount, and money appropriated.


This bill is retroactively set to take effect on January 1, 2015 so that it would specifically assist farmers impacted by the Porter Elevator Closure and Bankruptcy through which dozens of farmers lost millions of dollars combined in deferred payments that were due in January 2016.


The full text of the bills can be accessed here:


House File 3186


Senate File 3161


Contact members of the legislature to share your opinion on these proposed bills!



Porter Elevator Stored Grain Sold

The United States Department of Agriculture has completed the sale of all stored grain located at the now bankrupt Porter Elevator, and has contracted the hauling of the grain to other facilities. Begining on Monday, February 22, Farmers Cooperative Elevator of Hanley Falls, which has branches in Taunton and Minneota, began hauling all grain stored at the Porter Elevator. Corn commodities have been sold to ADM Corn Procesing in Marshall and Soybean commodities have been sold to AGP Cooperative in Dawson. Farmers owning grain in storage at the Porter Elevator will receive payment from the USDA once the sales are complete.



Consumer Confidence Report Released

The 2015 Porter City Water System Consumer Confidence Report has been published. To view the report click on "City Government" under the Explore Porter heading and then click on the "City Reports" link.



Porter Community Hall Shadow Boxes Complete

New shadow boxes have been built in the Porter Community Hall and will be used to display memorabilia from Porter's past. If you have any items you wish to donate to the city to have displayed, please contact any city council member. Original or high-quality newspaper articles will be accepted.



Porter Community Hall Information

Check out the new area of our website with information about the Porter Community Hall. www.portermn.org/porterhall



Porter Event Photos

Do you have photos of Harvest Festival, the Porter Auction or other events? Email them to josh@portermn.org with caption descriptions and they will get posted to the Porter Website!



Keeping The Community Informed Has Never Been Easier

Now it is even easier to pass the word about events in Porter and the surrounding area. Simply fill out the information form at the bottom of the all new Community Events and Calendar Page and submit your event. Your submission will be validated and posted to the calendar promptly!



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