Illini Bio-Energy representatives ask county for rezoning and enterprise zone for ethanol plant         

[JAN. 13, 2006]  TThe full board of representatives from Illini Bio-Energy, a company planning to build an ethanol plant, came before the Logan County Board on Thursday evening. About a dozen company directors who have worked on the project for several years have been in attendance at local meetings requesting approval to rezone and establish enterprise zone for 220 acres northwest of Hartsburg.

The group took their request before the Logan County Regional Planning Commission on Jan. 4. The planning commission is responsible for regulating zoning and types of growth in the county.

The company went before Logan County Board of Appeals on Jan. 5. The appeals board gives the public opportunity to express their opinions. That meeting was in Hartsburg and had a fair representation of citizens in attendance.

Both bodies placed their stamp of approval for the county board to consider both of Illini Bio-Energy's requests. The appeals board added a sunset clause to the rezoning, stipulating that the zoning would remain in effect only if the company begins construction within five years.

Illini Bio-Energy has requested that the land be rezoned from agriculture to manufacturing (M-2) in order to build an ethanol production facility. The plant will take up only about 60 of the 220 acres, but there are other industries that can harvest their byproducts for reuse or through some reprocessing create other useful products. The company is planning for the future and trying to make it easy for the other related industries that will follow them.

County board member John Stewart asked if there was any industry that would be coming in soon.

A company representative said that a carbon dioxide capturing process would probably be the first. That might happen in the first couple of years after the plant is up. Other processes are still in research and it might be 10 years before they are ready. During the appeals meeting it had been said that it is possible that Illini Bio-Energy could initiate and own one of these industries, but they are looking at other companies being the ones to come in and process their byproducts.

Rob Orr, director of the Lincoln and Logan County Development Partnership, said that he found the economic impact study that was done for Sysco when they were planning to come to Lincoln of great value. A study just like that one was performed by the same source, The Illinois Institute for Rural Affairs at Western Illinois University. Orr introduced the WIU coordinator for the study, Robin Hanna.

Hanna presented the board with a copy of the study. He clarified that the numbers are estimates, meaning that the figures are not based on something that exists already but what is expected if the plant is built. He summarized that the study takes the direct and secondary effects into consideration. "Impact Analysis and Planning (IMPLAN) is based on the theory that when new money centers a community through investment, revenues, or income, some of it is re-spent one or more times in the local economy, thereby creating additional economic impact," the study introduction says.

Hanna reviewed the key figures from that study that would affect the local economy annually.

Direct effects:

Operations and employment at the Illini Bio-Energy facility are estimated to create $112,279,589 per year.

Secondary effects:

An employment multiplier of six jobs created in the county for every one job at the Illini Bio-Energy's facility is attributed to the coal and limestone mining and trucking activities. The impact from other industry employment and compensation is projected at an additional $11,142,649 per year.

State and local revenues would go up $1,793,608 per year.

The board indicated that they would approve the rezoning on Tuesday evening when it comes to a formal vote.

The enterprise zone was not disputed at this or any previous meeting. Even so, county board member Dale Voyles wanted to point out that as soon as the property is rezoned, it goes up in value and the company would be paying higher taxes than what are currently paid on it as an agricultural property.

For the first 10 years, the enterprise zone designation relieves Illini Bio-Energy of paying on the value of the structure that they will build. The company pays nothing more than the unimproved value of manufacturing zoning the first five years. Then they pay 50 percent of the improved value with the structure on it the second five years. After 10 years it goes to 100 percent increased tax value.

The company can also benefit from the enterprise zone when purchasing construction materials. Materials are tax-free when bought from other participants in any enterprise zone.

The enterprise zone is a state-operated program that is intended to spur economic growth for Illinois communities.

The county board indicated the enterprise zone request would also be approved at the meeting on Tuesday.

Voyles said that details of who would be responsible for 2300th Street, which is the east-west road that provides access to the plant from the interstate or from Hartsburg, are still in discussions.

Orville Township has agreed to give over authority for the north-south road, 800th Avenue, where the plant will sit, to the company.

Orville Township still has responsibility for 2300th Street. The county was initially asked to take over 2300th Street, as the township could not afford the upgrades that would be necessary.

Voyles said that the county highway committee has not even discussed it. He said that the county already has projects waiting that were previously identified, and the county funds are committed to those first.

The primary project is one that the city of Lincoln and Logan County are now working on together. It is renovation of Fifth Street from Route 66-Lincoln Parkway to Middletown.

Illini Bio-Energy is working with the state of Illinois in hopes of acquiring economic development funds through the transportation department. It is hoped that Orville Township will be able to maintain control of the road with the use of grants that might help cover the work.

Orville Township authorities would like to see the road widened where it passes through town. Although most truck traffic would come off Interstate 155 and go directly to the plant without passing through town, there is already a need, as many trucks come through town now, and more would be anticipated with the construction of the plant.

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