Vermillion to face economic hit when VX eliminated

By Patricia L. Pastore/Tribune-Star

December 29, 2004

The Newport Chemical Depot, site of the Newport Chemical Destruction Facility, employs 1,066 individuals and has a monthly payroll of about $6.7 million.

The chemical depot is Vermillion County's largest employer, however, the Department of Defense "has no further plans to use the Chemical Depot once the destruction of nerve agent VX is completed," said Terry Arthur, Army spokeswoman.

"We have been trying to prepare Vermillion County for years for the time when this installation closes," Arthur said. County officials know the Depot is at peak employment through the ongoing process of preparing to destroy VX continuing through its destruction.

Once the VX is neutralized, there is no reason to employ security personnel or maintenance personnel, she said.

The loss of more than 1,000 good jobs will have a tremendous effect on the economy of this county of about 16,000 people.

"Obviously it will be a big hit," said Ed Cole, executive director of the Vermillion County Economic Development Council. The council plans to ask the Department of Defense to transfer the Chemical Depot grounds, more than 7,000 acres, to the county at no cost or a very low cost, he said.

Such plans have existed since the VCEDC formed in 1996, Cole said. One-third of the depot grounds and buildings inside the fence easily will be adapted to serve business and industry since the infrastructure already is in place -- water wells, a sewer plant and a network of roads, he said.

"We are in a wait-and-see mode now," Cole said. We are waiting with a reuse plan when the VX is destroyed and the Army no longer needs the facility. We are going to try to turn around the job loss so it will have less impact on the county's economy."

The 1,066 high-paying jobs could be gone in two years.

Spokeswoman Ginger Corado of Parsons, the contractor the Army hired to design, build and destroy the 1,269 tons of deadly nerve agent stored in the Depot, estimates it will take two years to neutralize all the VX.

Eli Lilly Clinton Laboratories, formerly the largest employer in Vermillion County, shut down a part of its plant earlier this year. It once employed about 2,000 and is down to 610, said Susan Zanandrea, Clinton Laboratories spokeswoman.

"We expect through attrition about 550 employees will be employed at Lilly Clinton Laboratories by the end of 2006," she said.

Clinton Laboratories discontinued making human pharmaceuticals for its manufacturing network, general manager Ed Canary told the site's Community Advisory Panel in November.

"We do know that the closing is not a reflection of how we conducted business at Clinton Labs, and as we move forward, I have full confidence that the Elanco business can sustain this plant," he said in November. "What we have left here is a good, solid business."

The Elanco division of Lilly manufactures animal health products. Clinton Laboratories have made products for Elanco since the plant began operations in 1970, Zanandrea said.

With the Newport Chemical Depot at peak employment, the community hasn't felt the full effect of the jobs lost at Eli Lilly, said Tim Wilson, president of the Vermillion County Board of Commissioners.

"We are supporting the Vermillion County Economic Development Council in its endeavor to acquire the Chemical Depot grounds to promote business and industry for the county for future development," Wilson said. "Our main concern is to get control of the Depot water supply. The water wells supply the water for our country jail. This may sound like an old Western movie, where ranchers and cattlemen fought over water rights. It is really important that the county control the water rights to the wells on the Depot site for the jail and for economic development."

The back portion of the Chemical Depot grounds is open farmland leased to neighboring farmers by the Army, Cole said. He said the county needs to acquire all the Chemical Depot lands so it can lease the farmland to the same farmers. With the funds from the leases, it could maintain the water system, sewage system and network of roads.

"Senator Bayh and Senator Lugar have been tremendous resources in giving us information on how to work with the Department of the Army," Cole said. "Other land on the Depot site could be targeted for recreational use such as hunting and hiking."

The Chemical Depot lands have tremendous potential, said Sandi Treaster, a former executive director of the VCEDC.

"Lilly has been wonderful for this county but I told county authorities a long time ago they had to look beyond Lilly for jobs and income resources. I told them when we started developing a plan for Depot land use that Lilly might not be there forever. We have to prepare for the future. That was nine years ago. It was a good time to start making plans."

State Rep. F. Dale Grubb wants VX destroyed as quickly as possible since the Newport Chemical Destruction Facility employees are highly trained and certified as ready to neutralize the VX now, he said.

"We seem to have money to throw away and create the largest budget deficit in history, but not to destroy VX now," he said. "I've been dealing with this issue for the 17 years I've held office, enough is enough, it's time for closure. I support Senator Bayh in his efforts to assist Vermillion County. The people have lived with the deadly nerve agent for more than 40 years in their back yard. The Department of Defense should turn the land over to them and allow the Economic Development Council to get on with its plan."

Patricia Pastore can be reached at (812) 231-4271 or pat.pastore@tribstar.com