Tipton ponders annexation of proposed ethanol plant

TIPTON — Tipton County officials have said they think an ethanol plant about to be built here will benefit everyone. Taking them at their word, city officials are considering becoming part of the plan.

The city’s annexation committee is discussing whether to annex the site of the ASA Biofuels ethanol plant, as well as that of the Cargill grain facility.

City Councilmen Brett Curnutt said council would seek voluntary annexation from both facilities. If all else fails, council would be willing to prepare an incentive package to do so.

“We feel it’s important to have Cargill and the ethanol plant in city limits,” Curnutt said.

He said he hopes to have the annexation process complete before the ethanol plant becomes operational in 18 to 24 months.

ASA spokesman Mike Slaney did not comment on the proposal, but said ethanol plants typically use upwards of 1.5 million gallons of water per day to operate.

In this case, that water would come from the city.

Cargill officials with could not be reached.

Annexation committee member Joe Vanbibber said the real issue is whether the city should provide utility services to areas outside the city limits.

Vanbibber said a precedent on the issue has not been firmly established, however previous discussions indicate utility service is a primary focus of annexation, and vice versa.

“It works both ways,” he said.

Estimated tax revenues from the property are vague at best, he said.

“I’ve heard $125 million thrown out, but I’m sure it wouldn’t be that from an assessed valuation standpoint,” Vanbibber said. “Obviously, though, it would be substantial.”

Vanbibber and Curnutt said they expect the committee to meet again in the next few weeks.