(Originally posted in late 2007, Updated March 25, 2012) Due Diligence is a phrase that everyone has been focusing on since the
announcement of a proposed smelter and port facility in Crystal City. The City claimed that it has done
it's due diligence by investigating all of their options. Our group obtained some very credible documents
that argued otherwise.
Here is a testimony from Nick Frey of Stinson Morrison Hecker law firm stating
that Christine O'Keefe of the Missouri Department of Natural Resources (MDNR) said it would take at least 8 years to build a
smelter and they would need an air permit. Considering that the lease agreement dictates
that they had 5 years to build a successful smelter, you have to wonder if anyone asked the MDNR if building a smelter was
Then there is the letter that Mel Kosanchick, professional engineer that has been involved with thousands of real estate
projects, personally presented to the City Council on November 12, 2007. It suggested that "Purchasing land without a comprehensive
'Due Diligence' Report can lead to bankruptcy".
How about the presentation that Roger Baker, a seasoned mechanical engineer from Crystal City, developed after contacting previous owner of
smelter project and simply "doing the math"? It concludes that "the stated income is less than the Capital
cost amortization, labor cost, and operating costs".
Also, a letter from Tom Kerr, local resident and owner of
Crystal City Underground, outlines eight serious environmental issues with
regard to the PPG property that were uncovered in the process of developing his project.
Finally, Crystal City residents Bill and Debbie McKenna let us know how they feel about Crystal City's due diligence
in a November 2007 advertisement in the local Leader newspaper.