Incentives for ethanol plant approved (02/07/06)

As counties in the area bargain to attract ethanol production plants to set up in their neighborhoods, Jay County Commissioners approved an incentive package Monday afternoon to be offered to an Iowa-based firm.

However, the commissioners agreed only to offer what would be offered to any large industry that wanted to locate in Jay County.

Jay County Development Corporation executive director, Bob Quadrozzi, met with commissioners Milo Miller Jr., Gary Theurer, and Faron Parr on Monday afternoon and explained the package a project advisory group would like to present to Cardinal Ethanol LLC officials.

Jay County’s incentive package must now be approved by the Jay County Council, Quadrozzi said. The council will meet Wednesday night.

Miller has also been talking with officials at The Andersons about their plans to construct a plant near its Dunkirk site, and he said Monday afternoon those talks are still ongoing.

“This does not kill the other project,” Quadrozzi said about The Andersons proposed plan. “It was still on the table as of last Friday.”

He later explained it was possible the two companies could work together to create one facility.

“That would be the ideal situation,” he said.

Quadrozzi said the package to be offered to Cardinal Ethanol included a maximum allowable local tax abatement, a five-year loan of up to $250,000 from county Economic Development Income Tax funds with collateral to be negotiated at the time of closing; up to $50,000 of EDIT funds to be made available to cover costs of any training not covered by state programs and documentation and reimbursement costs to be overseen by Quadrozzi; and assistance from JCDC staff in providing access to any state incentives.

Cardinal Ethanol executives have been meeting with officials in Jay, Randolph and Delaware counties in the past few months to determine what site would best fit their needs and who could offer the best incentives.

He added the incentives are subject to the site being qualified and all permits receiving final approval. Additionally, following commissioners’ and council’s approval, the proposed package will be effective for 90 days.

In Jay County the plant may be located in the Redkey or Dunkirk area to provide access to railroads, Quadrozzi said, adding, “they favor the Dunkirk site.”

Commissioners approved the package that now puts Jay County in competition with Randolph County for the production facility. Officials in Randolph County recently approved providing a $10 million unsecured loan as well as $250,000 from EDIT funds to attract the facility.

“We wanted to offer them something,” commissioner Milo Miller Jr., who served on the ethanol plant advisory group, said, “but we didn’t want to give away the farm. We’re treating them just like anyone else who comes into town.”

Quadrozzi said a 14-member advisory group consisting of mayors, city and county councilmen, JCDC board members, and other local officials, as well as himself, have met during the past several weeks and recommended the package.

He said the 100 million gallon per-year plant would use about 36 million bushels of corn, create 45 to 50 new jobs, and have a capital investment of about $150 million.

“They can do one of three things,” Quadrozzi said about presenting the incentive to the proposed developers. “They can refuse it, say ‘that’s fine,’ or say ‘here’s our counter offer.’”

“I’m comfortable with it,” Miller said about the incentive package for Cardinal.

“I think it’s fair,” said Theurer, “we’ve treated them like everybody else.”

Theurer, however, expressed concern at the plant’s use of 1,200 gallons of water per minute and the extensive amount of corn that would be needed.

Theurer asked if the water table would be able to handle the demand. Miller said the issue would be studied extensively before construction began.

“With all the confined feeding operations we have here, I just wonder if there will be enough corn,” Theurer said.

Quadrozzi assured him extra corn could be brought in to the proposed plant by rail.

Also Monday afternoon, a name change for a local mental health facility upset Miller.

Commissioners learned that Comprehensive Mental Health Services, with an office in Portland, has changed its name to Meridian Services.

“This upsets me,” Miller said, picking up the phone and calling directors of the facility.

Explaining, “they felt it was time for a name change. They told us ‘maybe we should come over and put on a program,” Miller said following the call.

He said the name change does not reflect the program’s purpose. “Who’s gonna know what this is?”

As a state recognized program, the county is instructed to pay it four percent of its assessed valuation which provides $104,000 annually to the Meridian Services.[[In-content Ad]]