By GEOFF FRANK, Bluffton News-Banner
At first glance, the numbers don't add up.
The Wells County Board of Commissioners on Monday agreed to back the proposed ethanol plant financing with $500,000 a year of County Economic Development Income Tax funds in case of a default.
Earlier in the meeting, however, the commissioners put together a plan for how they would spend all of their CEDIT funds in 2006 and there is no mention of ethanol anywhere.
Even the portion of CEDIT monies lumped into a general capital development budget line item — $394,088 — is significantly less than the $500,000 commitment.
Here are the numbers:
• Wells County is expected to receive $734,088 in CEDIT funds in 2006.
• The commissioners agreed Monday to spend $340,000 for specific purposes, including:
-- $240,000 for the continuing payments on the Courthouse restoration project
-- $65,000 for economic development-related operating expenses of the Wells County Chamber of Commerce
-- $15,000 for the Boys and Girls Club
-- $20,000 for computer-related costs.
• The remaining amount — $394,088 — was allocated for capital development, an area they indicated could include roads, bridges or other county projects as needed.
Discussing their actions after the meeting, the commissioners shed additional light on the matter.
Even in the event of a default of the proposed ethanol project — something they viewed as unlikely — there would be at least two years warning before the county would need to come up with any funds, they noted.
Board members indicated that the project has built-in protections that would, in essence, give the county two years warning before it would have to come up with funds.
CEDIT funds could be reallocated in such an event to prepare for the need, they noted.
During the meeting Monday, David Dale, chairman of Indiana Bio-Energy, the company formed for the project here, asked the commissioners to ratify the action taken by Wells County Council.
At their Dec. 6 meeting, council members voted 7-0 to support use of CEDIT funds to back the ethanol project bonds in case of a default.
The county commissioners are actually the governmental body that approves CEDIT expenditures for the county.
On Monday, both commissioner Kevin Woodward and commissioner Paul Bonham expressed support for the project.
They voted 2-0-1 to follow county council's lead and support use CEDIT funds to back the bonds in case of default.
Commissioner Randy Plummer, who is one of the initial investors in the project, abstained from the vote.
Both Woodward and Plummer indicated concern that no report has come back to them as yet from the consultant engaged by the county.
They did not sign a revised non-binding resolution offered by Dale for consideration.
From behind-the-scenes discussions, Dale summarized that the consultant's work had stopped when it appeared there was no hope the county would approve property tax-related backing for the ethanol plant financing in case of a default.
The Indiana Bio-Energy board, which would be paying the bill for the consulting work, had indicated willingness for the consultant work to continue now, but it has a couple of requests, Dale noted.
The company board wants a deadline for the consultant's work and would like to be able to use the work product of the consultant for the company's purposes if the project does not go forward in Wells County. The work project would be helpful in other potential locations as well, he noted.
Dale noted he is waiting to hear back from county council president Pete Cole on the consultant issue.
Dale and Indiana Bio-Energy will be in front of Bluffton City Council tonight asking for city backing as well for CEDIT funds support for the bonds in case of a default.
If the county and city are unwilling to support the project, there's no hope for the project to proceed in Wells County, Dale explained early in his presentation.
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