By JIM BARBIERI, Bluffton News-Banner
Capping a three-hour marathon session Tuesday night, Bluffton City Council advanced and kept moving forward the proposed $134 million ethanol plant project in Bluffton and Wells County -- the largest economic development project in Wells County history.
Council voted 4-1 for a resolution declaring the city’s good faith intention to work with the county to provide $800,000 a year in support of the project, using CEDIT and other revenues.
Contained in the measure by the volunteer statement of Indiana Bio-Energy LLC (the ethanol company) was that city council can revoke the action prior to implementing.
Left by the resolution was for the county and city to settle on how to make up the $800,000 a year, although it is based on the $500,000 already voted in county CEDIT money by the county commissioners plus $300,000 in city CEDIT and other revenues.
The city would use $75,000 annually in city CEDIT money and $175,000 per year in Keebler Funds -- money from the city’s economic development revolving loan fund with a balance of nearly $1 million and earning interest regularly.
In addition, the city commitment would be for only seven years -- the period until 2012 when the county has the courthouse renovation paid off.
The city also would put up out of CEDIT an estimated $500,000 on what is roughly estimated a $2.5 million road-street need for the plant in what would be sought for a federal aid 80-20 project -- matters on which the state often helps and the city will work with State Rep. Jeff Espich accordingly. Indiana Bio also may have to help with this need. The plant is expected to be served by 150 semis a day.
After the 2012 county payoff of the $240,000 a year courthouse renovation obligation, the county, under the plan, would hike its $500,000 a year commitment to about $750,000, taking the project the rest of the way through 2031.
Noted was the high probability that with the ethanol plant, the current CEDIT levels will rise from the county’s current $734,000 and the city’s current $308,000.
Pointed out was that while city has recognized potential benefits of its own from the ethanol plant, including about $3.5 million in electric utility revenues, ultimate tax base help beyond the TIF (tax increment financing) period, much area employment and investment gain, etc., those in the city also are part of the county and share in the county obligations.
Cited in the explanations was a desire to cap the city “commitment at $2.1 million -- seven years of $300,000 support.
The county commissioners will have to work out such a division with the city for it to work as intended.
Reminded throughout was that neither the county nor the city will be asked to spend a dime in support of project bonds.
The sums being cited could be given and/or spent only if there would be a default.
Otherwise, they can be used in the meantime if the governments desire, or parts of them could be used. Especially that is true with Keebler Funds, which the city currently uses for cash flow needs of its own, repaying loans by year-end. The city could continue to do so.
The sizable crowd of more than 30 people was composed mostly of supporters including a number of the dozen investors in the ethanol company, Farm Bureau and other rural representatives citing the benefit to farmers corn prices from the expected buying of 36 to 40 million bushels of corn for the plant annually, and general supporters of the need for economic development so that Bluffton and Wells County do not dry up or fade as have other rural communities and counties.