Public hearing set to discuss landfill offer

Cards Recycling made an unsolicited offer of more than $20 million to purchase the Sallisaw Landfill Facility and waste collections operations at a special meeting Monday night.

The city of Sallisaw will hold a public hearing at 6 p.m. Monday to discuss the offer from Cards Recycling to purchase the Sallisaw Landfill Facility and waste collections service. As of Tuesday, the offer was $20 million for the 1,200-acre landfill and $1.5 million for the collection service. The deal would also include recurring revenue back to the Sallisaw Municipal Authority as part of the deal.

“We are at the very early stages of trying to work up the numbers,” City Manager Keith Skelton said. “I’ve told the council this is just the opening offer.”

When including the release of $2,850,891 in funds required to be held as a “Closure Cost Liability” on the city’s books, the value of the current offer is $24,350,591, Skelton said.

“Our landfill is unique because it is 1,200 acres with lots of room for expansion,” Skelton said. “We see it as an 80-year life span based on our tonnage.”

The landfill has had customers outside of Sallisaw for many years. Currently the largest customer is LeFlore County, where the city receives 100% of that county’s waste, Skelton said.

Skelton said the Sallisaw Municipal Authority had net revenues for the past five fiscal years of:

• 2018 $77,000

• 2019 $511,000

• 2020 $291,000

• 2021 $271,000

• 2022 $453,000

The current offer on Tuesday morning included recurring revenue of $1 per ton as a “Landfill Tonnage Royalty” that Skelton estimates will bring in $240,000 and $2 per home in collection services, which will bring in an estimated $87,052 per year. In addition, the city will retain a 100% methane gas royalty valued at $310,212 annually.

The Sallisaw Landfill Facility, located southeast of Sallisaw, opened in February 1994, and eight cells have been opened to date. Your TIMES published stories in 1992 and 1993 detailing problems with the old landfill, which was shut down by the state Health Department after just 15 days notice in November 1992.

Cards Recycling serves 27 communities in Oklahoma, Arkansas, Texas and Missouri, and has acquired 10 trash hauling companies since 2020, according to the company’s website. Cards serves residents who live outside Muldrow, and purchased Whittinghill Disposal Services (WDS), a commercial and industrial waste hauling services company in Muskogee last month. Whittinghill serves Muskogee, Tulsa, Wagoner and Mayes Counties. More information about the company can be found at cardsrecycling.com.

The public hearing will be held at the Council Chambers at 113 N. Elm in Sallisaw.