BY CHRISTINA M. SEILER, Rochester Sentinel News Editor
Ethanol consultants presented a new five-bond financing plan Wednesday that is more complicated – but less risky to Fulton County than its predecessor.
Four of the bonds would be issued by a new County Economic Development Commission. None of the payments would be made by the county. The plan calls for the county to post $1.6 million of cash reserves and to finance about $400,000 in new road work.
An earlier proposal by Indiana Renewable Fuels called for the county to post a $10 million bond.
Wednesday’s session, at the Fulton County Fairgrounds, included county commissioners, council members, and members of the newly-formed county redevelopment commission and the county advisory plan commission.
Thirty-four investors want the county’s help to build a 100-million-gallon-per-year ethanol production plant.
The $150 million Indiana Renewable Fuels plant would have an estimated assessed valuation of $13.3 million for real property and between $25.8 and $47.1 million in personal property.
The company has options on three sites, all of which are near the Fulton-Marshall county line and County Line Landfill.
Their request includes three bond issues totaling more than $36 million, two more bond sales and a $400,000 road upgrade.
Of that, Fulton County would be obligated for as much as $2 million – $1.6 million of it cash reserve in case the ethanol company can’t make its bond payments, plus the road work.
No decisions were made and the issue wasn’t discussed after the presentations were done.
Ice Miller attorney Thomas “Buddy” Downs and Umbaugh Associates accountant Todd Samuelson cautioned four county boards, which met jointly Wednesday, to open and close their meetings properly and be cognizant of Indiana’s Open Meeting Law to avoid jeopardizing the financing.
The request is “light” for projects of this size, Downs said. It is less risky to the county than an earlier request, which was for a $10 million government backed bond and a 20-year tax abatement. Those requests, Samuelson said, have been withdrawn.
The consultants also outlined the mechanics for declaring an economic development area, drawing up a redevelopment plan and declaring the Tax Incremental Financing District.
In a TIF district, the property taxes generated by new development are put into a special fund, which is used to pay for infrastructure needs such as roads and sewer.
The consultants estimate the plant will generate $656,000 of new taxes yearly. They want all of that directed to the project. The proposal would not affect property taxes now paid within the district.
A TIF district lasts for 30 years. It begins with a plan written by a redevelopment commission.
Fulton County’s new redevelopment commission – Councilman Mike Gearhart, Commissioner Roger Rose, Terry Lee, Bob Peterson and Dee Williams – met for the first time Wednesday. Rose was elected president, Bob Peterson vice president and Lee secretary. The commission passed its bylaws and decided to meet at 7 p.m. on the second Tuesday of each month.
The full board of commissioners, county council and Fulton County Advisory Plan Commission also met.
The county council was the only other board to have official business. It read two times an ordinance to establish a Fulton County Economic Development Commission.
The economic development commission would issue the economic development bonds the project needs. It will be three people, a commissioner, a council member and one citizen who has no vested interest in the project, either by way of farming and selling corn or by being an investor.
A third reading of the ordinance will occur later, at which time the commission will be appointed.
The consultants’ proposed timetable calls for financing work to be done as early as July 26.
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