TIF plans appear to be on track for state’s first ethanol plant

Discussion

March 22, 2006

By Robert Barron The Enid News and Eagle Wed Mar 22, 2006, 04:12 PM CST

As it draws closer to final approval by the Enid City Commission, a proposed Tax Increment Finance District to assist an ethanol plant in Enid appears to be receiving favorable comment.

Environmental concerns that surfaced by some North Enid residents appear to have been resolved, and the issue seems to be on its way to the city commission.

Enid won out over several Oklahoma communities that vied for the plant. Supporters say the plant will employ about 30 people with an annual payroll of at least $900,000.

Creation of the TIF district would pave the way for the $71 million plant. TIF funds would provide an estimated $600,000 a year for 12 years. The Oklahoma Economic Development Autho-rity will provide Oklahoma Ethanol with a $250,000 project development incentive, provided the plant employs the number of people and has the annual payroll it predicts within three years of the start of operations and maintains those levels for at least three years.

If those conditions are met loan payment will be forgiven. If the conditions are not met, the loan will become due immediately.

Construction is expected to start this year, pending regulatory approval, with a completion date of about March 2007.

Terry Detrick, vice president of Farmers Union, which is a principal partner in the project, said the plant will refine 50,000 bushels of sorghum and corn a day into the fuel additive ethanol. It will produce 50 million gallons of ethanol a year.

It also will produce about 160,000 tons of distillers grain, which is a high-protein feed used by the livestock and dairy industries, and eight million cubic feet of carbon dioxide daily, to be utilized for carbonation of soft drinks and in tertiary oil recovery operations to rejuvenate some old Oklahoma oil fields.

The grain used will be shipped to the ethanol plant by rail and stored in the Acher Daniels Midland elevator, adjoining the property.

A total of 40 acres was purchased from ADM as the site of the ethanol plant.

Opponents of the plant, including Dr. Edwin Kessler of Norman, questioned the legality of Tax Increment Finance District for the plant and the efficiency of producing ethanol.

Kessler said the plant is not economically feasible because the cost of producing ethanol is too high, and the plant may be closed in 12 years.

Detrick responded saying ethanol is not an alternative fuel, but a companion fuel to petroleum-based fossil fuels. The plant also offers the opportunity for farmers to try new types of farming, such as no-till with alternate crops that are cash producing.

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