Friday, Jan. 6

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Residents put seal of approval on ethanol plant          Send a link to a friend

[JAN. 6, 2006]  HARTSBURG -- There was no opposition at a public hearing intended to hear what the people of the community had to say about an ethanol plant locating just outside Hartsburg. The Logan County Board of Appeals took the meeting to Hartsburg last night. The plant would be just outside Hartsburg (population 358) and near Emden (population 515).

The crowd packed into the Orville Township Maintenance Shed meeting room consisted mostly of county officials, a few township officials, Hartsburg Mayor Tom Anderson, a little more than a dozen Illini Bio-Energy representatives and maybe a dozen local citizens.

The question put before the residents was whether they would approve rezoning agricultural acreage to industrial and a variance in building height.

Members of the Illini Bio-Energy board and staff were on hand to answer questions important to the community.

Dean Toohey, chairman of the appeals board, opened and mediated the meeting. He asked the company representatives to speak first.

Ernie Moody, company chairman, provided most of the information about what they are planning to do and how the plant would benefit the community. The director, Dave Ramsey of Rochester, also joined him in the presentation. Other company board members supplied specialized information during the question period.

The company has an option to purchase 220 acres, one-half mile northwest of Hartsburg. They indicated that they plan to complete that purchase soon and then intend to begin building as soon as Environmental Protection Agency approvals come through -- hopefully, in about 14 months.

First the representatives explained what the plant would be doing and how it would affect the area economically.

The two explained about the plant that uses coal to process corn and make ethanol and about the potential for future industries on the site, related to the byproducts of the processed corn.

A key factor that the company reps wanted to emphasize to the farm-based community that they were speaking to is that the intentions of the company are to be mostly locally owned. The top red-letter, underlined notation on their prospectus says, "A locally owned Central Illinois Community Economic Development Project." They expect that it will be 80 percent to 90 percent local and central Illinois ownership.

In addition the company anticipates purchasing locally grown corn as much as possible.

The company says that the ethanol plant is expected to:

  • Produce 50 million gallons of ethanol per year.
  • Create a new market for 18 million bushels of corn annually.
  • Produce an estimated 165,000 tons of distillers dried grains annually. (DDGS is a byproduct that has numerous uses now and in research is nearing other significant uses.)
  • Use an estimated 80,000 tons of coal annually.
  • Employ 38-42 people on-site with annual salaries from $35,000 to $60,000.
  • Generate at least $1.2 million annually in state and local taxes.
  • Create and support another 516 local jobs.
  • Add $19.6 million in annual household income to the region.

The representatives defined why they need and want to rezone the full 220 acres, not just the area that the plant would sit on.

The new tracks to the railroad line would border the perimeter of the property to the east and north. In the event that they should need to import corn from outside the area, there could be as many as 100 rail cars that would take up all of the extended line.

They would like to have property west of the plant already rezoned for businesses that are likely to follow them that would further process their byproducts. This would make it easier to attract those businesses and save time in the future.

Citizens' responses were general inquiry about the potential effect on the water supply, road weight limits, drainage and traffic.

The company built on research previously performed by a Bloomington firm looking for a water resource. Aquifers provide more-than-adequate water in the area. A test well pumping 15 1/2 million gallons per day created equilibrium at a 30-foot sustainable depression. The water table returned to normal as soon as the pump was shut off.

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One citizen, Gary Cross, questioned their commitment to purchase corn locally.

Representatives provided one example of when they would potentially purchase corn from farther than a 50-mile radius. This might happen in the case of drought, when aflatoxin may strike local corn. They also acknowledged that, naturally, there would be times that they would buy from other sources if the price were lower. "We have to buy grain locally, we have to be competitive," said Illini Bio-Energy representative Brian Wrage.

The company says that local farmers can expect to see an increase in value on their corn.

A representative said that they would have only enough room for 10 days' storage for grain on-site. This would influence how they buy their corn.

Another citizen near the potential plant location was concerned about the amount of discharge water that would enter the drainage ditches. When water in the ditch reaches a certain level, their basement floods, and his wife isn't happy about that. Any addition would increase how often they get flooded.

A representative said that most of the water is lost as steam. The refuse water will go to one of their retention ponds, where it will undergo further evaporation and then go to the drainage ditch. It would be equivalent to running eight garden hoses, or maybe one-sixteenth of an inch of water would flow in the ditch. He said he would get further information on that.

It has not been determined who will be responsible for an upgrade to a section of roadway from 800th Avenue eastward on 2300th Street. It currently belongs to the township, but they are asking the county to take it over. The county has been asked to take over the section from 800th Avenue westward to Interstate 155 as well. Illini Bio-Energy has asked the township for control of the section of 800th Avenue where the plant would sit. That section would be closed off from public use, and the company would be responsible for the road renovation on that portion.

Illini Bio-Energy is under a "quiet period" regulated by the Security Exchange Commission. The company can do no public speaking that could be construed as promotion that would presell stock. They can go about the business of getting the plant set up, including sharing information as necessary at meetings to get approval from citizens and government.

In response to a question by Roberta Rademaker, government officials explained what might happen in the future if the property were rezoned to M-2, general manufacturing. Under the manufacturing zoning there are stipulations about what types of businesses can be built. In addition, if a business wants to come and build, they have to get a building permit, and then there would once again be public hearings that would give people a chance to say if they wanted it there or not.

A former county board member, Wayne Conrady, added encouragement for the people to OK this proposed business that would bring economic improvement to the area. He said he watched opportunities for Lincoln get turned down and thrown away many times years ago. He said you have to look at progress and how this is going to benefit the community.

The meeting was brought to a close when all had spoken. Wilbur Paulus summarized the board's assessment from the public comments and said, "In general the area would be better off." The appeals board would send a recommendation to the Logan County Board to approve the rezoning of the property from agriculture to manufacturing and a structure height variance. An added condition would be to require that Illini Bio-Energy begin construction within five years.

The matter will go before the Logan County Board for discussion on Jan. 12.

[Jan Youngquist]

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