Tyson Foods to acquire the closed Cargill plant in Springdale 

Tyson Foods will acquire the shuttered Cargill turkey plant located on Randall Wobbe Road in Springdale, with the city council on Tuesday (Nov. 25) approving the issuance of revenue bonds for the action.

Nathan McKay, president of Tyson’s poultry segment, appeared before a Springdale city council committee Nov. 17 to inform them of plans to buy the meat processing plant, which closed in August. He asked the city to issue industrial revenue bonds to help with costs necessary to convert the plant for chicken processing purposes.

McKay said Tyson would retrofit the plant into another chicken processing facility. He said it would be used for portioning operations and further processing, and not a slaughter plant like the one the company operates on Spring Street, just a few blocks away from the former Cargill facility.

The agenda packet included information on the cost projections of around $127 million. The request for issuance of industrial revenue bonds was approved at Tuesday’s city council meeting. The city council approved the resolution to authorize the issuance of the revenue bonds. This vote allows Tyson Foods to purchase the facility. Tyson will transfer the property to the city in exchange for the funds from the bond. The city will then lease the property to Tyson Foods in order for the company to retain a tax-exempt status with regard to property taxes. This is allowed under Arkansas law.

Tyson will be exempt from taxes in lieu of repaying the debt incurred from the revenue bonds. Kutak Rock LLP was appointed as bond counsel with respect to the issuance of the bond, and the fees and expenses will be covered with proceeds from the bond or by Tyson Foods.

Tyson’s proposal estimates that around 200 people will work at the plant following the planned upgrades and modifications to suit chicken processing. The company could also not rule out that production at other facilities might be impacted when the new plant comes online.

Tyson operates a small chicken plant near the shuttered Cargill facility. It was the first processing plant the company opened in 1958, and was later upgraded and turned into the company’s Cornish game hen slaughter and processing facility. The company has earmarked three years to make the capital investments within the facility, which is more automated than a turkey processing plant.