Work is underway at the site of a new industrial hemp processing plant, the former General Henry Bakery, in Du Quoin Industrial Park.
Du Quoin Mayor Guy Alongi talks about a new industrial hemp processing plant coming to Du Quoin Industrial Park in spring 2020.
DU QUOIN — At 6 p.m. Monday, Du Quoin Mayor Guy Alongi announced a new industrial hemp plant will open in the city’s industrial park, located in the former General Henry Bakery. The plant will produce hemp oil for use in other products, such as CBD products.
During the city’s regular meeting Monday evening, the council passed three resolutions related to the business and another grant application to improve infrastructure. All three resolutions benefit Slainte Real Estate, the owner of the property.
The first resolution on the agenda was authorizing the mayor and city clerk to submit a grant application to U.S. Department of Commerce and Economic Development for infrastructure improvements.
The second, third and fourth resolutions authorized the city to enter a redevelopment agreement with Slainte Real Estate for a $250,000 loan through Du Quoin Community Development Corporation to be paid back over 10 years. The funding will come from a $150,000 loan from the city’s gaming fund and a $100,000 loan from a commercial lender.
The total cost of the project will be around $7 million.
Jeff Ashauer, an economic and business developer contracted by the city, said the business is licensed to process and transport industrial hemp. No marijuana is involved, and none of the products extracted at the plant or the raw materials will contain the chemicals that produce a high.