Terre Haute river development group eyes former paper plant property

Ownership would allow Riverscape, officially known as Wabash River Development and Beautification Inc., to turn the land over to another buyer for future development. Purchase details have not been finalized.

It was not immediately known what Riverscape’s plans meant for the Powerdyne project. Mayor Duke Bennett did not immediately return phone messages seeking comment Wednesday.

“Who knows how long it will take to find somebody?” Riverscape president Charlie Williams said Wednesday. “We have confidence that we can find somebody in 90 to 180 days.”

During its regular meeting Wednesday, Riverscape’s board voted to move forward on an option to buy the 63 acres on Prairieton Road from Highland TH LLC.

Riverscape is a non-profit organization devoted to transforming Terre Haute’s riverfront into an area of community activity.

Williams said he envisions a variety of uses for the land such as condominiums, apartments, recreation and shopping. He said Riverscape planned to have the property rezoned from industrial use.

“We don’t think that’s the place for heavy industry,” he said.

International Paper owned the property until November 2014, when Highland purchased it for $550,000, according to public records.

At the time, Powerdyne Terre Haute Holdings — which established Highland as part of plans for a proposed sludge-to-diesel plant — would not confirm or deny whether the plant would be built on that site.

Florida-based Overseas Lease Group took over Highland, its equipment and property in November. Highland TH LLC and Overseas Lease Group have since sued the City of Terre Haute for $172.6 million because it claims the city changed course on its wastewater sludge contract and cost Overseas profits projected over 20 years.

In April, Overseas president George Badcock told the Tribune-Star the company no longer needed the property and wanted to sell it.

Williams said Riverscape reached out to Overseas after Badcock’s comments were published. He said the organizations hopes something will be built to make the area around Interstate 70 and the future Vigo County School Corp. aquatics center\, under construction in Vorhees Park, more appealing.

“Something more in keeping with the Riverscape plan that the city and the county invested in some years back,” he said.

Williams said he didn’t think the pending lawsuit would prevent Riverscape from purchasing the land.

“[Badcock] certainly sees that as no hurdle,” he said. “In fact, I think the courts would probably be pleased that he’s trying to lessen the community’s expense in this whole thing.”

Speaking to the Tribune-Star Wednesday, Badcock confirmed Overseas was in touch with Riverscape about its plans.

“They approached me and asked me if we would be interested in selling the property, and I said, yes, we would be,” Badcock said.

He said Riverscape reached out again a month later to say it still wanted the land and was waiting for board approval before moving ahead.

Williams said board members had no opposition to proceeding, either in vote or discussion.

Riverscape’s talks with Overseas included a non-refundable deposit. Williams said the board approved a range of $10,000 to $25,000, depending on how long Riverscape is given to come up with the money to purchase the land.

International Paper, which closed in 2007, owned 895 acres of land west of the river and 367 acres east. In autumn 2007, the company donated 16 1/2 acres of land to the Vigo Park and Recreation Department for a wetlands and nature trail system planned on the river’s west side.

The city also owns a portion of the former paper company’s property.

Public records indicate, in May 2010, the company sold 76 acres at 2403 Prairieton Road to the city for $267,500. The company transferred the deed to the city’s sanitary district.

In July 2013, the sanitary district transferred the deed to the City of Terre Haute Board of Public Works and Safety.

Williams said the organization was convinced it could find an owner who shared its vision for the riverfront.

“We just have confidence that people will see the property’s clean,” he said. “There’s water, there’s sewer, there’s utilities there.”