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Riverbank could take a key step toward 2,000-plus jobs at its old Army ammo plant

The Riverbank City Council could take a major step Tuesday night in converting the former Army ammunition plant to new uses.

Much of the Claus Road site would be leased for 15 years to Aemetis Inc., which plans to make ethanol from woody orchard waste there. The Cupertino-based company also would become the “master developer “ for the overall property, including subleasing space to other new employers.

The 173-acre site has about 650 people working for 35 companies. Aemetis projects about 50 for its ethanol operation, and as many as 1,000 indirect jobs for haulers of orchard waste. The company already makes ethanol in Keyes.

Riverbank aims for a total of about 2,000 people working directly at the plant as the master developer finds new tenants in the coming years.

“With the Aemetis plant as the anchor, the remainder of the property has the potential to become a rare industrial hub on the east side of Stanislaus County,” City Manager Sean Scully said in a report to the council.

Plant dates to World War II

The Army opened the plant in 1943 to process aluminum for World War II aircraft. It shifted to ammunition in 1952, during the Korean War, and topped 2,000 employees during the Vietnam War. They made cartridges and casings for mortars and grenades, through a contract with NI Industries.

In 2005, the site was scheduled for closure as part of a militarywide trend at the end of the Cold War. It was deactivated in 2009 and leased at no cost to Riverbank the next year. It is now known as the Riverbank Industrial Complex.

Aemetis would make a total of about $10.4 million in lease payments to the city for the 13-acre ethanol plant site over the 15 years. The company also would have the option to purchase the property outright for $8.8 million.

The $280 million ethanol plant would support California’s ambitious goal of reducing fossil fuel consumption. It also would help almond and walnut growers comply with a phaseout of open burning of pruned limbs and trees pulled out of production.

Green trend among new employers

The ammunition plant has been redeveloped amid the ongoing cleanup of toxic waste left from decades ago. It has about 150 buildings and extensive open land.

The current tenants include a few recycling businesses, part of Riverbank’s effort to market the site for green manufacturing. Others provide pest control, auto repair, security doors, conventional fuels, railcar management and other goods and services.

The council will meet at 6 p.m. Tuesday, Aug. 24, at 6707 Third St., Riverbank. It has resumed live meetings following COVID-19 limits. The public also can take part virtually. Instructions are included in the agenda, at www.riverbank.org/agendacenter.

John Holland
The Modesto Bee
John Holland covers agriculture, transportation and general assignment news. He has been with The Modesto Bee since 2000 and previously worked at newspapers in Sonora and Visalia. He was born and raised in San Francisco and has a journalism degree from UC Berkeley.
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