PSC Metals scrap yard

[smeagolsfree]

Big news on the Post site right now regarding PSC! Could be the beginning of the end.

I think the rest of the site in Nashville will sell soon.

[nashvylle]

How long is the current lease with PSC (now SA)? Could this be Icahn wanting to get in on the Oracle action, or would Icahn owning the land and another entity owning the lease complicate things more? 

[Sean blackdog]

PSC Metals move to Southern Recycling?

 

[smeagolsfree]

My guess is that Metro now deals with SA and not PSC in moving their facilities. SA has a location in the Nations as well and I could see them consolidating both locations in to one somewhere else.

[Bos2Nash]

As long as it is not paying to relocate the current operation to a consolidated site. If they have the $290 million to purchase the operations, they certainly have the monies to move it.

The question becomes does Carl Icahn have the monies to do the environmental clean up that will be required.

[downtownresident]

3 minutes ago, Bos2Nash said:

As long as it is not paying to relocate the current operation to a consolidated site. If they have the $290 million to purchase the operations, they certainly have the monies to move it.

The question becomes does Carl Icahn have the monies to do the environmental clean up that will be required.

IMO the question is does Icahn want to spend the money for environmental cleanup. I have a feeling that he’ll be coming to Metro hat in hand to get some sort of deal to help pay for it. 

[rolly]

Finally some action on this site. 

With all the hot projects on the other bank, like 4Seasons, Ritz, Nashville Yards, TonyG'sTowers... Beamon Lot finally selling...

Maybe in 5 years this lot will be ready for something really big...

[nashvylle]

I imagine Carl Icahn will be selling it to the highest bidder, who will have to do the environmental cleanup. 

[smeagolsfree]

I don’t think the Nation’s site is an appropriate site either. It needs to be away from that area as well.

[Bos2Nash]

On 10/29/2021 at 6:06 PM, downtownresident said:

IMO the question is does Icahn want to spend the money for environmental cleanup. I have a feeling that he’ll be coming to Metro hat in hand to get some sort of deal to help pay for it. 

And that's when Metro should open the front and back doors and let him walk straight on through without a conversation.

[Flatrock]

14 hours ago, Bos2Nash said:

And that's when Metro should open the front and back doors and let him walk straight on through without a conversation.

Icahn & his team are well known for playing hardball. That is the business language they understand, and respect. Any sign of weakness from Metro will be leveraged against Nashville, and us, as taxpayers. Maybe there's a conversation, but it's short, to the point, and from a position of strength - protecting the City's interests. 

Edited November 2, 2021 by Flatrock
Grammar

[markhollin]

In Carl Icahn's sale of PSC Recylcing to SA Recycling for $290 million, it included the entire PSC empire of 30 locations in 7 states---except for the 45 acre land itself  on the East Bank of the Cumberland.

The fact that Icahn wants to retain ownership of PSC's Nashville property signals that he sees the development potential for that land. And the new owner of PSC could have an answer to a question that's long stymied efforts to relocate the scrapyard: Where would it go?

A separate acquisition SA Recycling completed in August might provide a solution — one that PSC itself had pursued in years past.

SA Recycling is the new owner of Southern Recycling LLC, which operates a scrapyard in West Nashville, at the edge of The Nations and next to a former state prison near Centennial Boulevard. The 23-acre property has access to the Cumberland River and also rail lines. It is a half-mile from Briley Parkway, which then connects to Interstates 40 and 65.

Icahn's Oct. 29 announcement said Icahn Enterprises would lease the East Bank land to SA Recycling, which would continue operating there for the time being. Terms of the lease were not disclosed, and the PSC sale itself remains under negotiation and may not become official until year's end.

The timing of any potential land sale is unclear, should Icahn agree to a deal. The land is zoned industrial and would rise in value if Metro green-lighted a zoning change to allow for dense, mixed-use development. No doubt that infrastructure and environmental factors would weigh into that dealmaking.

Still, at today's land prices, it's not out of the question that Icahn could command a sum rivaling the $290 million figure he's poised to receive for selling the scrap business to SA Recycling. Icahn could sell the land outright or, through his company's real estate arm, enter a joint venture with a developer.

“In my opinion, [prior talks] failed because the operation here on the East Bank is so successful, nobody wanted to be the one to make the decision to move somewhere else and not have it work," said one-time company lawyer Tom White, in an interview this spring.

SA Recycling's newly acquired West Nashville scrapyard could just be a breakthrough-in-waiting.

More at NBJ here:

https://www.bizjournals.com/nashville/news/2021/11/02/psc-metals-sa-recycling.html

[nashvylle]

Praying 

[Bos2Nash]

18 hours ago, Flatrock said:

Icahn & his team are well known for playing hardball. That is the business language they understand, and respect. Any sign of weakness from Metro will be leveraged against Nashville, and us, as taxpayers. Maybe there's a conversation, but it's short, to the point, and from a position of strength - protecting the City's interests. 

This is essentially what I meant. Maybe in one ear and out the other is a better analogy. Either way, Carl Icahn or the new owners of the scrapyard should NOT get a single tax payer dollar for moving or the cleanup.

[markhollin]

Statement by Carl Ichan to NBJ earlier today:

"We understand that Nashville would prefer to see this area redeveloped, and we sympathize with that. Our CEO had long discussions with Mayor David Briley, and we had determined to move down the river and work on a redevelopment plan for this property — and were far down the road with finalizing a deal. We did not ask for any money from Nashville. Our agreement contemplated that, when the development was completed, there would be certain tax sharing and abatements. But even considering this, Nashville would have made a great deal of profit from the taxes that would accrue from the new development. Nashville would have benefitted by beautifying the city and from this increased income. Mayor Briley did not get re-elected and, unfortunately, the new mayor wanted no part of any agreement. We therefore determined to sell the business. However, [Icahn Enterprises] still owns the land on which the scrap yard in question stands. Perhaps in the future, a new transaction can be formulated."


More at NBJ here:

https://www.bizjournals.com/nashville/news/2021/11/04/carl-icahn-psc-east-bank-cooper.html?ana=twt

[MLBrumby]

12 minutes ago, markhollin said:

Statement by Carl Ichan to NBJ earlier today:

"We understand that Nashville would prefer to see this area redeveloped, and we sympathize with that. Our CEO had long discussions with Mayor David Briley, and we had determined to move down the river and work on a redevelopment plan for this property — and were far down the road with finalizing a deal. We did not ask for any money from Nashville. Our agreement contemplated that, when the development was completed, there would be certain tax sharing and abatements. But even considering this, Nashville would have made a great deal of profit from the taxes that would accrue from the new development. Nashville would have benefitted by beautifying the city and from this increased income. Mayor Briley did not get re-elected and, unfortunately, the new mayor wanted no part of any agreement. We therefore determined to sell the business. However, [Icahn Enterprises] still owns the land on which the scrap yard in question stands. Perhaps in the future, a new transaction can be formulated."


More at NBJ here:

https://www.bizjournals.com/nashville/news/2021/11/04/carl-icahn-psc-east-bank-cooper.html?ana=twt

SMH...  Little man Cooper strikes again. 

[nashvylle]

I don't understand why this deal never happened... perhaps Icahn would have complete control on what could or could not be developed on the site, and metro, who might want parks/affordable housing, etc. would have zero say? 

[Rick Dalton]

Love to see Icahn hanging this over our heads. Give me a deal or else the area stays ugly. Like a movie villain.

[MLBrumby]

I expect he'll be developing it when SA leaves the site. 

[samsonh]

19 minutes ago, MLBrumby said:

I expect he'll be developing it when SA leaves the site. 

I doubt it. He most likely wants no part in the environmental cleanup costs and time involved.  

[MLBrumby]

Why would he want to keep the land then? 

[samsonh]

5 minutes ago, MLBrumby said:

Why would he want to keep the land then? 

To sell it or try to get a deal from the city

[MLBrumby]

I have no doubt there'd be steep cleanup costs for anyone.  Who'd buy it if Icahn won't remediate it?  It's possible he might propose to sell to the city for parkland, but that would come down to how desperate the mayor would be to get rid of the scrapyard. If Cooper is still mayor at that point, it appears that he will not deal. Icahn knows the value of that land. He's not a developer but he is a financier. It is a good sign that he didn't sell it to SA. Perhaps that's driven as much by remediation costs as it is his willingness to develop it down the road. We'll see soon enough, as I don't think he'll sit on it. 

Edited November 4, 2021 by MLBrumby

[Flatrock]

3 hours ago, markhollin said:

Statement by Carl Ichan to NBJ earlier today:

"We understand that Nashville would prefer to see this area redeveloped, and we sympathize with that. Our CEO had long discussions with Mayor David Briley, and we had determined to move down the river and work on a redevelopment plan for this property — and were far down the road with finalizing a deal. We did not ask for any money from Nashville. Our agreement contemplated that, when the development was completed, there would be certain tax sharing and abatements. But even considering this, Nashville would have made a great deal of profit from the taxes that would accrue from the new development. Nashville would have benefitted by beautifying the city and from this increased income. Mayor Briley did not get re-elected and, unfortunately, the new mayor wanted no part of any agreement. We therefore determined to sell the business. However, [Icahn Enterprises] still owns the land on which the scrap yard in question stands. Perhaps in the future, a new transaction can be formulated."


More at NBJ here:

https://www.bizjournals.com/nashville/news/2021/11/04/carl-icahn-psc-east-bank-cooper.html?ana=twt

This is exactly what my earlier post was anticipating. Now we wait to see who blinks first.

[bnacincy]

3 hours ago, MLBrumby said:

I expect he'll be developing it when SA leaves the site. 

Has SA said they would relocate the site?