Scaled-down aluminum plant possible

With an exclusive developing agreement expiring in just two weeks, City Manager Curt Mitchell announced Monday that the status of a proposed aluminum plant is still “unlikely” but a scaled-down version of the project could be built.

“It’s very unlikely the project will proceed as originally planned,” Mitchell reported to the City Council. “The property options also expire on Nov. 30 and we are being reimbursed for our actual expenses for the purchase of those land options.”

City officials unveiled the plan in March to construct a 964-acre aluminum plant just south of the defunct Sun & Sky Golf Course. The City Council approved the framework of a redevelopment agreement with Newport Beach-based Scuderia Development to build the 2.95 million-square-foot facility for China Zhongwang Holdings Limited. If built, the plant was expected to employ as many as 2,000 skilled workers.

“While the original project will not move forward, it should be noted that Eric Shen, the chief operating officer for Scuderia, is no longer working for the company,” Mitchell said. “However, he is interested in developing a scaled-down version of the project with private financing. We are only in preliminary discussions regarding a possible smaller version of the project at this point.”

Mitchell first downgraded the project as “unlikely” during the Aug. 18 City Council meeting. He partly blamed the high cost of electricity in California.

“The overall financials didn’t work out for them,” Mitchell said in August.