By Roland Murphy for AZBEX
Since we broke the story of the KOREPlex site in Buckeye quietly going on the market and confirmed the demise of the planned $1.5B-plus battery plant, several new details have come to light. (AZBEX, Jan 31)
While we won’t devote a lot of resources to reporting on a dead project, several of these newly disclosed items will continue to impact Arizona companies and projects for some time to come. As a result, we feel compelled to give them due coverage.
Yates Recorded a $10.4M Mechanics’ and Materialmen’s Lien
On Jan. 14, KOREPlex general contractor Yates Construction recorded a Mechanics’ and Materialmen’s Lien with the Maricopa County Recorder’s Office for $10,391,258.12 against the KOREPlex property. The 241-page notice and supporting exhibits were submitted on Yates’ behalf by Snell & Wilmer, LLP.
Interestingly, the LoopNet listing for the 214-acre site at Baseline Road and State Route 85 notes the property went on the market Jan. 16.
The lien amount would be paid from the proceeds of the site sale. Theoretically, project owner KORE Power could choose to pay the disputed amount directly or negotiate a settlement with Yates to have the lien removed before the sale.
Any lien against a property makes the sales process more complicated and adds significantly to the due diligence portion of the transaction.
Arizona law requires a 20-day notice to be provided by the company filing the lien to the recipient. The preliminary 20-day notice is dated March 2023.
The notice of lien recorded with Maricopa County lists the date of completion for Yates’ work on the project as September 17, 2024.
Cancelation Confirmed, CEO Resigns
In a detailed article that came out just a few hours after our own Jan. 31 front page, Phoenix Business Journal reported it received a statement from KORE Power that the company is continuing its efforts to grow and manufacture power storage systems in its Vermont facility but has recently undertaken a restructuring to help ensure its long-term success.
The article quoted the statement as saying, in part, “Plans for the KOREPlex in Buckeye, Arizona will not move forward at this time. While KORE is selling the proposed greenfield project site, the company has been exploring other opportunities to expand its domestic manufacturing that have led to this pivot.”
The article also reported on a separate update from the issued statement. KORE announced the resignation of Founder and CEO Lindsay Gorrill, who will remain on the company’s board of directors. As of Feb. 1, KORE Power’s new CEO is Jay Bellows, who was elevated from the position of president.
In a LinkedIn post from the end of last week, Gorrill announced his departure and Bellows’ elevation. Part of the post said, “I want to extend my deepest thanks to our team, customers, and stakeholders who have contributed to making KORE what it is today.”
As of 4 p.m. on Sunday, Feb. 2, the announcement of Gorrill’s departure and Bellow’s promotion has not been posted to KORE Power’s website. The site has, however, been updated to remove the pictures and biographies of the company’s leadership team, which were in place last week when we were working on the original story. As of press time, we do not know if any other leadership or senior staff changes have been put into effect or are planned.
