By Geoff Frank, Bluffton News-Banner
Site development work for a proposed ethanol plant at the southwest edge of Bluffton is expected to begin by mid-November.
Edgar Seward, general manager for Indiana Bio-Energy LLC, said the company hopes to break ground soon.
"We will be moving dirt within 10 days to two weeks," Seward said Friday afternoon.
A formal ground-breaking event likely will be put together at some point, but IBE does not want to delay earth-moving work for the ceremony.
The clock is ticking for IBE on its timetable for Minnesota-based Fagen Inc. to begin construction of the ethanol plant.
If all goes as expected, construction crews are expected to begin work Jan. 3, with the plant now expected to be in operation by December 2008.
"We need to have the dirt work completed before Fagen arrives in early January, so at this point, we have eight or nine weeks to complete that, so we need to get busy," said Seward.
"We're still on track to meet that (Jan. 3) date," said Seward. "Assuming we don't have any major stumbling blocks, we're in good shape with the time line," he said.
Another key issue on that timetable is action by the Indiana Department of Environmental Management on IBE's request for an air quality permit.
"That's the key that drives the foundation work," Seward said about the air quality permit. Foundation work on the plant cannot begin until the state gives its approval.
Weather will be another important factor for IBE, Seward noted. "We hope for dry weather so we can move dirt and proceed," he said.
Progress on the site development work is among several recent developments with IBE, Seward noted.
Others matters related to the 100 million gallons-per-year dry-mill corn-processing ethanol plant include:
- Purchase of property at the site. IBE has had options to purchase land from several local property owners. The company planned to close on its first purchase this morning and will exercise options today for other property at the site.
IBE officials expected to close on the Lindsay property in the southwestern-most portion of the proposed development this morning.
Although that portion is not part of the tract approved by the Wells County Area Plan Commission recently, it had a option to purchase that would be expiring.
Strategically, it made sense for IBE to buy the land now for long-term development, Seward noted.
IBE also planned to exercise options for the other properties at the location today.
"We're just letting the land owners know that we intend to purchase, and then over the next month or so we'll proceed through the closing process," he said.
"We're going to close on those pieces that are critical to us immediately, as soon as we can, so we can get started," he said.
Initial purchases will include the Wells County Chamber of Commerce property and the Fiechter property where early site work will be focused.
- A soil erosion and sediment control plan meeting state standards for the location has been approved by the Wells County Soil & Water Conservation District.
- IBE's equity drive has been completed. The equity campaign raised $51.8 million. The company's financing also will include $100 million in senior debt, $22 million in bonds, and initial seed capital. Seward, an experienced ethanol plant manager in his 17th year in the industry, now also is among investors on the project.
- The project now is valued at $176.3 million, according to Seward. That figure includes working capital for initial startup operations of the plant.
- IBE has been allocated $22 million in solid waste disposal facility revenue bonds through the state, Seward noted. The title recognizes the company's need for equipment to process waste material from the ethanol process and make it a saleable product.
Bluffton City Council will be asked for its approval of the bond authority as part of the regular process for such financing. There is no liability to local or state government should there be a default on the bonds, it was pointed out.
- There is a good deal of work under way on contracts for providers of services. Among them are negotiations with natural gas suppliers on the gas pipeline into the facility. IBE officials hope to have that selection made by the end of the year.
- Seward said he has continued to have discussions with City of Bluffton departments and has incorporated several good discussions. IBE will put one of its internal fire hydrants near the city hydrant along Adams Street to provide both the city and IBE with additional water capacity in case of fire at either the ethanol plant or neighboring businesses or areas.
Capability also will be there for the city to tap into the IBE detention ponds for additional water.
"Those kind of synergies ... those were there all along. It takes discussion and people to bring it up," said Seward.
"At this point, we haven't moved any dirt, so those kind of things in the big scheme of things are inexpensive to do now," he said.
"Once the roads are in place and all the underground is in, it's difficult to move a hydrant or do something, but until it's built, it's quite easy to do that," said Seward.
City officials in early September had expressed concerns over a lack of detailed information about the proposed plant.
"The lack of substantive information provided with the development plan application makes it impossible for the City of Bluffton to offer an opinion," wrote Mayor Ted Ellis to Wells County Area Plan Commission officials early last month.
APC officials noted at their Sept. 7 meeting that IBE officials had satisfied development plan requirements and gave unanimous approval.
IBE officials committed to working with city officials on the specific information needed.
Signoff by city officials would be needed before the APC will issue a building permit for the plant.
IBE officials also agreed to meet again with APC officials six months after they begin operation to review the project, its compliance with local planning regulations and concerns of neighbors.
IBE officials earlier had met Aug. 8 with the APC's plat review committee and had satisfied the committee's normal checklist of concerns.
- Initial tests have not identified any damage to area water wells. The Indiana Department of Natural Resources performed well measurements before, during and after the tests, he said.
"We ran the test at twice, nearly twice our consumption rate and we didn't significantly, we didn't impact anyone," said Seward.
IBE continues to stand by its commitment to fix any damage to neighboring wells.
"The impact wasn't significant enough to warrant any additional wells, but in the future, if there is an impact, we certainly would do that.
The company has repeatedly expressed desires to be a good neighbor.
- IBE has added a second water detention pond to its plans that will be located to the south of the plant site. It will have an underground connection to the originally planned detention pond, to be located in the railroad oval to the east of the plant.
A portion of a legal drain through the site will be rerouted around the plant building.
IBE officials have agreed they would assist with a solution to any drainage problems that might result from the project.
County Surveyor Jarrod Hahn has noted he was satisfied with IBE plans for drainage and said the company worked with him to go beyond normal requirements.
The site drains into the Addington Tile. Water then empties into the Schwartz Open Ditch before flowing into Bills Creek and then the Wabash River.
Seward believes that the plant actually will help drainage in the area, since it will restrict runoff during periods of heavy rainfall by keeping more in its detention ponds to reduce impact into the county-regulated drain system.
The proposed ethanol plant would be located at 1441 S. Adams St. in industrial I-1 zoned land.
The location is at the southwest edge of Bluffton. Bluffton City Council has taken steps to annex the portion not already in the city limits.
The proposed ethanol plant site detailed recently for the APC development plan review consists of 346.08 acres.
Boundaries for the site include the Wabash Central short line rail line on the north, Adams Street (County Road 100E) on the west, the Norfolk Southern Railroad line on the east and County Road 200S on the south.