BY CHRISTINA M. SEILER, Rochester Sentinel News Editor
Indiana Renewable Fuels will ask Fulton County commissioners and council members for economic development assistance on Thursday.
The special joint meeting is at 7 p.m. in the Fulton County Office Building.
Indiana Renewable Fuels is working to develop an ethanol plant in or near Fulton County. Board President Glen Bode this morning declined to discuss details of the request but said the company would use the meeting as an opportunity to discuss its project and situation.
Project details have not been discussed publicly since March. Then, organizers said they would like to build a $67 million plant that would produce 50 million gallons of ethanol per year and require 18 million bushels of corn.
A plant that size could provide 32 to 45 jobs with annual payroll between $1.9 and $2.6 million per year, they told the public when seeking investors.
The group has received two financial boosts so far.
In March, Fulton County officials approved a $34,750 forgivable loan from Fulton Economic Development Corp. to conduct a feasibility study.
In October, U.S. Sen. Dick Lugar announced the limited liability corporation was to receive a $100,000 grant from U.S. Department of Agriculture’s Rural Development.
Formulating a financial assistance package for such a huge project is difficult, said Fulton Economic Development Corp. Director Mike Busch.
He’s worked with the Indiana Renewable Fuels board of directors, attended an ethanol industry meeting in Kansas City during the summer, and studied similar projects.
“Other communities aware of this project would love the opportunity to see this in their community,” he said today. “Siting a plant like this requires unique features. Fulton County does not have a monopoly on those.”
Offering assistance is important for the long run, says Busch. “It is important because the size of the investment generates significant property tax improvements in the future despite the size of incentives.”
If asked by county officials, Busch said, he would recommend that the county back a bond issue for the project.
“A county-backed bond issue, I believe, is in the best interest of Fulton County,” Busch said, adding the county pays nothing unless the ethanol company defaults.
If the company does default, the county pays the bond payments.
A government-backed bond issue would limit the county’s bonding capacity for other projects.
“This project is different,” Busch said. “We have not asked the county to go into considerable debt before.”
Cass County gave $2 million in cash to The Andersons to help with a new ethanol plant near Clymers, Busch noted. That plant is now being constructed.
Some states extend tax abatements past 10 years for ethanol plants, Busch said. Indiana does not.