By RACHELLE HAUGHN, Commercial Review

A South Dakota company is in the process of applying for a zoning change which could allow for a proposed ethanol plant southwest of Portland.

Premier Ethanol LLC of Sioux Falls applied orally for a zoning change on Wednesday, said Bill Milligan, Jay/Portland Building and Planning administrator.

The approximately 180-acre parcel located along the southeast side of Ind. 67, near Meshberger Brothers Stone Corp., currently is zoned agricultural, Milligan said.

The request is to change the zoning to planned unit development — industrial, he said.

Broin and Associates, which is working with Premier on development of the plant, is a part of Broin Companies, which has been involved in developing and managing ethanol plants since 1988.

Broin’s “premiere partners” include 15 limited liability corporations which have established plants in Iowa, Minnesota, South Dakota, Missouri and Michigan. The closest of the Broin-related plants is in Caro, Mich. It began operations in November 2002.

The company could not be reached for comment on the Jay County project today.

The application for the zoning change is expected to be completed this afternoon or sometime Monday, Milligan said. It is scheduled to go to the Portland Planning Commission on June 1.

The company plans to produce 69 million gallons of ethanol fuel per year, according to paperwork filed at the Jay County Public Library in connection with an application for an air quality permit from the Indiana Department of Environmental Management.

Milligan said he recommended company officials apply for a planned unit development because ethanol plants currently don’t fall under any classification listed in the city’s current zoning ordinance, and because the Portland Planning Commission has more control over planned unit developments than other zoning classes.

“Technically, it’s a unique item” and doesn’t fall under the zoning grid, he said. “Under the planned unit development, technically, the planning commission sees everything.”

After the application is complete, the request will go to the planning commission. Premier officials will have to present preliminary plans for the plant to the commission. According to the zoning ordinance, plans must include the layout of streets, the general description of the location and types of structures on the site, and proposals for handling parking, sewage disposal and drainage.

Local residents will have a chance to speak at this meeting. This commission meeting will be held June 1 at 5 p.m. in the Portland Fire Station meeting room.

The commission then will have the option to recommend the Portland City Council grant the zoning request. If this is done, the preliminary plan will go to the council for approval. The planning commission will have the option to suggest changes to the plans or impose conditions for the project.

Before construction work can begin, the final plans will have to be presented and approved by the planning commission.

The idea of building an ethanol plant near Portland first surfaced in April, shortly after Broin applied for an air permit from the Indiana Department of Environmental Management.

Bob Quadrozzi, executive director of Jay County Development Corporation, said this morning, to his knowledge, the company has not been notified on whether or not it was approved for the permit.

Broin has received some news, however, in regards to its water supply.

Members of the Portland Board of Works voted in April to have Bonar Group of Fort Wayne conduct a water study to determine if the city could almost double its daily output of treated water to accommodate the plant proposed by Premier.

Bruce Hosier, mayor of Portland, announced the results of the study this morning. Hosier said the feasibility study determined, “In order for us to provide that kind of water level ... it certainly would have to include some future upgrades and improvements” at the city’s water plant.

Officials with Broin estimated the plant would use 800,000 gallons of water per day. The city currently uses about 1 million gallons per day.

“The main reason for the study was to see if this was a viable option for them,” Hosier said.

The study looked at current water usage in the city and how the project could affect Portland’s current customers in terms of water pressure and water supply.

Hosier said the results of the study came in about a week ago and have been received by the developers.

Using a combination of water sources, such as wells and city water, could be an option for the project, he said.

A large amount of water is required for cooling purposes during the production of ethanol, which is a by-product of grain fermentation. The ethanol is blended with gasoline as a cleaner-burning, renewable fuel.

Another company also has expressed interest in building an ethanol plant in Jay County.

The Andersons Inc. has announced that it is considering building an ethanol plant near the company’s grain terminal just east of Dunkirk.

On Wednesday, members of the Jay County Council voted to grant a 10-year tax abatement to the company for construction of a plant. The real property, which includes structures, is expected to cost $2.9 million. The personal property has an estimated price tag of $1.8 million.

A tax abatement allows companies to pay taxes in increasing increments over several years, phasing in the additional taxes due on the capital investment.

Cardinal Ethanol recently told members of the Randolph County Council that it has chosen the village of Harrisville — located about halfway between Winchester and Union City — as the preferred site of its proposed ethanol plant.

There are currently eight ethanol plants and three biofuel plants under construction in Indiana, with at least 20 others proposed.
-30-