Plans to house as many as 1,600 construction workers expected to flood into Kemmerer for TerraPower's nuclear power project are in limbo after the project’s lead contractor, Bechtel, backed out last month.
Bechtel had solicited proposals from companies interested in building temporary workforce housing facilities in Kemmerer.
It was considering about seven when the company announced it was parting ways with TerraPower after the two companies failed to agree on terms for the next phase of construction.
TerraPower has yet to name a replacement as lead contractor, leaving unanswered questions about what will become of the workforce housing proposals Bechtel received and whether a temporary housing hub will be needed at all.
Meanwhile, Kemmerer officials are keeping their options open.
Holding Pattern
On Monday, Kemmerer City Council approved an extension of a lease-option agreement with Target Logistics Management for more than 70 acres of city-owned land near the Antelope Ridge subdivision.
The extension gives Target until Dec. 8 to determine whether it wants to move forward with a potential lease, should the company be selected to provide temporary workforce housing for TerraPower's Natrium nuclear reactor project.
Target was one of seven companies that submitted proposals to Bechtel.
Kemmerer Mayor Robert Bowen told Cowboy State Daily the extension buys time while TerraPower determines its next steps.
Bowen said he understands that Bechtel intended to pass the workforce housing proposals it received to whichever company replaces it as lead contractor.
"But that's all unconfirmed," he said.
If the Dec. 8 deadline passes without a decision, the City Council would have to approve another extension to keep the lease option alive, Bowen said.
For now, the city is trying to prepare for a massive influx of workers without knowing exactly where they will live.
"Up to this point, TerraPower and Bechtel had been wanting local housing to catch up to demand, hoping to meet needs without a hub," Bowen told Cowboy State Daily. "But we can't have workers come with nowhere to live."
A Backup Plan
Bowen described the possibility of a temporary workforce housing hub, commonly called a man camp, as a contingency plan rather than a primary component of TerraPower's construction project.
The hope has been that existing housing, new residential development and additional RV spaces could absorb much of the demand.
But the numbers are daunting.
At the height of construction, the Bill Gates-backed TerraPower project is expected to bring more than 1,600 workers to the Kemmerer area.
That's a substantial influx for a city with a population of 2,415, according to the 2020 U.S. Census. Neighboring Diamondville has approximately 600 residents.
The $4 billion Natrium project involves construction of a 345-megawatt sodium-cooled fast reactor, with the ability to increase output to 500 megawatts through an integrated energy storage system.
The facility is being developed near the retiring Naughton coal-fired power plant.
Construction began in April, and the project is expected to be completed around 2030.
City officials have been working to increase available housing in anticipation of the construction boom.
Kemmerer City Planner Bob Muir told a local radio station last week that 83 new RV hookups are nearing completion at Foothills Trailer Park.
About 25% of TerraPower's anticipated construction workforce is expected to use RV accommodations, he said.
"I think we're ahead of the game so far with housing," Muir said.
He added that the city hopes to accommodate as many workers locally as possible.
Still, the possibility of a large temporary housing complex has generated opposition from residents near the city's proposed site.
Homeowners have raised concerns about the prospect of a man camp in their neighborhood.
The lease-option extension does not mean the facility will be built. It simply keeps the possibility alive while TerraPower's contracting situation remains unresolved.
Another Man Camp Gets Approval
While the future of Target's Kemmerer proposal remains uncertain, another company has taken a step toward developing temporary workforce housing on privately owned land in the city.
The Kemmerer zoning board recently approved a special-use permit for a proposed workforce housing facility associated with Iron Guard, Bowen told Cowboy State Daily.
The development would be west of and adjacent to U.S. Highway 189 and south of U.S. Highway 30.
The approval followed a special zoning board meeting that included a public hearing and an opportunity for comment.
In July, the Kemmerer City Council approved the third and final reading of a zoning change involving approximately 60 acres of private land known as the Fox King property.
The council changed the property's designation from heavy industrial to light industrial, making it eligible for consideration as a temporary workforce housing site.
The Iron Guard proposal adds another possibility to Kemmerer's growing list of accommodations for workers expected to arrive as major industrial projects take shape across southwest Wyoming.
But Bowen cautioned that receiving a permit is not the same as committing to construction.
The property owners are not obligated to build a workforce housing facility simply because they have permission to do so, he said.
"They could use it for anything," Bowen told Cowboy State Daily. "It's their facility. They can use it for anything they want."
Bowen referred Cowboy State Daily to local property owner Bob Fox for additional information about the proposal.
Fox declined to discuss the project, saying only that he is working on paperwork related to it.
Whether the development moves forward, when construction might begin and how many workers it could accommodate remain unclear.
More Than Just TerraPower
Even if TerraPower decides it doesn't need a large temporary housing facility, Kemmerer could still find itself in the middle of a regional construction boom.
"We have two major projects going on in either direction that this hub could be used for," Bowen said.
To the south, the Prometheus Hyperscale data center project in Uinta County is expected to bring thousands of construction workers to the Evanston area.
To the north, a helium plant project near LaBarge represents another potential source of housing demand.
That puts Kemmerer in an unusual position: A community of fewer than 2,500 people could become a temporary home base for workers involved in multiple major industrial developments.
For companies considering investments in workforce housing, the region's other projects could provide opportunities beyond TerraPower.
But the existence of those projects does not guarantee that any particular housing proposal will move forward.
Evanston Moving Ahead
In neighboring Uinta County, Target Hospitality has already secured approvals for another temporary workforce housing development intended to serve construction workers at the Prometheus Hyperscale data center.
In August, Uinta County commissioners approved a five-year lease and conditional-use permit for the company to develop a workforce housing complex on approximately 194 acres of county-owned land east of Evanston, adjacent to Bear River State Park.
The facility is designed to accommodate approximately 3,300 workers during the data center's primary construction phase.
Under the county's approval, the temporary housing complex could remain in place for up to five years.
The development is expected to generate approximately $1.28 million annually in revenue for Uinta County.
Plans call for single-story housing structures, with mezzanines permitted, to comply with requirements intended to protect views from nearby Bear River State Park.
The complex would also include an on-site recreation facility.
Target Hospitality CEO Troy Schrenk has said the location was selected in part because of its access to Interstate 80 and its proximity to the data center construction site, approximately eight miles away.
The company estimates construction of the workforce housing facility will take about a year, with completion targeted for October 2027 if the project remains on schedule.
The Evanston development illustrates the scale of temporary housing being considered across southwest Wyoming as industrial construction accelerates.
For Kemmerer, however, the question remains whether a similar facility will be needed — and who would build it.
Bechtel's Departure
Bechtel's September announcement that it would no longer serve as TerraPower's lead construction contractor introduced another layer of uncertainty into the Natrium project.
The specific points of disagreement between the two companies have not been publicly detailed.
Bechtel has said it does not expect its departure to affect the project's construction schedule.
The company also announced plans to reduce staffing as its remaining work winds down, with approximately 200 positions and employees expected to be affected beginning on or about Nov. 16.
Those workers could be laid off or reassigned.
Meanwhile, TerraPower has not publicly identified the company that will take over Bechtel's responsibilities.
The transition raises questions about whether the new contractor will pursue the same temporary housing arrangements Bechtel was considering, seek new proposals or rely more heavily on existing accommodations in Kemmerer and surrounding communities.
Cowboy State Daily reached out to TerraPower and Target Hospitality for comment but did not receive responses before publication.
Despite the uncertainty surrounding the contractor transition, Muir said work on the Natrium project continues, with subcontractors moving forward.
He said he does not expect the change to affect the overall construction schedule.
Kate Meadows can be reached at kate@cowboystatedaily.com.
