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The
Official Newspaper of Manchester and Delaware County, Iowa
Tuesday,
August 22, 2006 | |
Council approves incentive package - total value to ALL Energy would be $7.4 million
by Brian Cook |
The Manchester City Council gave City Manager Tim Vick the green light to offer an incentive package that could be worth up to $7.4 million dollars to ALL Energy, the company that has proposed building a 100 million gallon a year ethanol plant in Manchester.
At its regular meeting on Aug. 14, the council approved Vick’s proposal, which he presented the following day to ALL Energy representatives. Council members Tony Broghammer and Jeff Ogden both abstained from the vote.
Broghammer did not want the appearance of a conflict of interest since his son, James, is the CEO of ALL Energy and one of the representatives of the company negotiating with the City of Manchester. Ogden claimed he lacked the information he needed to vote, but had questioned the city’s financial situation and its ability to offer the incentives during the discussion.
The majority of the value in the incentive package would come in the form of a rebate of tax increment financing (TIF) funds. TIF funds are created when there is an increase in valuation in the TIF district.
In the proposal to ALL Energy a rebate of TIF funding based on a $20 million valuation of the ethanol plant could produce $6.2 million in funds returned to the company. The rebate schedule would be over 15 years, with ALL Energy receiving a rebate of 65 percent of the property taxes the first 14 years and 55 percent on the 15th or final year.
The plant’s valuation is expected to be $18-20 million, which would easily make it the property with the highest valuation in Manchester. Building the plant in a TIF district would create funds that would otherwise not be available.
Vick said the proposal calls for $1 million in capital expenditures up front for water main and sewer main extensions plus turn lanes on the highway. He said they would seek RISE grants for the turn lanes, which would pay for 70 percent of the project with a 30 percent match.
Of the 30 percent match, Manchester would be able to split the cost with Delaware County, costing the city $50-75,000.
The water main extension is expected to cost $643,700, and Manchester would eliminate the $40,000 hook-up fee. The ethanol plant would like the ability to draw 500 gallons per minute of water as a back up for the well system it will have.
The sewer extension would have a cost of $214,950 and the $50,000 hook-up fee would be eliminated for the sewer as well.
“The water and sewer main extensions are infrastructure improvements that could be utilized in the future regardless of this project,” Vick later explained. “We’re not going to make the expenditures unless we are guaranteed they are coming.”
ALL Energy will make $155 million in capital expenditures to bring the plant online wherever the plant is built. The plant will have 50 fulltime employees with a payroll of $1.6 million. ALL Energy built a plant in Steamboat Rock that is a quarter the size of the one being proposed in Manchester, and the company has spent $2.8 million in that community in the last 10 months.
Vick presented the proposal to ALL Energy on Tuesday. The company is expected to make a decision in the next two weeks about where it will build the new ethanol plant. |

WD building project coming along ‘great’
by Latisha Sand |
The West Delaware School Board was updated on the new auditorium and gymnasium project at their Aug. 15 meeting.
“The building outside is going great,” Ron Swartz told the board. Swartz, the director of buildings, grounds and transportation, said some of the footings still aren’t done but you can see where the building will end.
But Swartz is concerned with the drilling for the geothermal units because he wants to make sure the Manchester City Council approves them.
“They have been pushed back three to four weeks,” Swartz said. “They don’t necessarily have to be done and we won’t use them until next fall.”
The committee for the auditorium has narrowed down seating to a chair from Seating Concepts, a company that specializes in seating for movie theaters, performing art centers, stadiums and arenas.
The chairs, that will most likely appear within the auditorium, have no mechanisms, have high backs and, according to Mike Ryan, a board member, have comfortable arm rests.
“Roger (Worm, architect for the project) penciled in $135 per chair and we think these will be $125,” Ryan said.
The curtain color is ‘plum,’ a darkish red color that the committee thinks could go with any color.
The conference center, where the board meeting was held, contained eight different chair styles.
“You’d be surprised how many options there are for chairs,” said Swartz.
Parents and students will notice a new sign and more lights at Lambert Elementary School this year as well.
“I’ve saved money over the years from fundraisers,” said Principal Carol Tjaden. “Parents have complained that it was to dark when they come for conferences.”
The lightning strike from the July 19 storm is still causing problems at the high school. According to Swartz, there is still no communication to the bus barn and the intercom throughout the high school is down.
Jon Nordaas, the high school principal, informed the board that they will have to e-mail additional announcements each period and they will also rely on teachers to dismiss the students from each class.
Swartz said that fixing the existing system will cost around $4,000 and a new one will cost about $7,300. But that only covers 64 rooms. Once they make the decision for a new system it could take up to two months to have it installed.
Swartz also approached the board about purchasing another bus for this year because the 2007 models will include an ultra low sulfur fuel and a converter.
“The new busses next year could increase to $6,000 or $8,000 per bus because of the converter,” Swartz said.
The 2006 bus would allow the school an additional 18 months before they would have to buy a bus with the converter.
“We would have to change over the whole fleet and it could cause problems with the older buses,” he said.
Swartz is hoping that after the 18 months, other school districts will have gone through the switch and worked through potential problems.
All board members agreed it was a good way to save money and approved the purchase.
The board also approved:
• the Administrator Mentoring and Induction Program agreement with SAI,
• the Comprehensive School Improvement Plan,
• the Business Procedures Manual and the 2006-07 Middle School staff and substitute teacher handbooks,
• the increase of adult school lunches to $2.65,
• and the transportation request from a family with the Maquoketa Valley School District who wants to send their child to St. Mary’s. The board approved to charge the family $360 a year to pick the child up within the two-mile range of the district.
The board, however, tabled the Community Child Care 28A Agreement because of some confusion about costs. They may be holding a special session in case the agreement deadline comes before their next meeting in September.
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Open house held at Manchester’s new compost site/brush dump
by Brian Cook |
The City of Manchester along with T&W Grinding held an open house last Friday at the new compost site on South Brewer Street.
Manchester was required to relocate the compost site and brush dump to its current location, east of the wastewater treatment plant, to move it out of the Maquoketa River floodway at its former location west of the treatment plant.
The total cost of the project ended up being just $80,281.47. The City’s cost share excluding labor and equipment, but including an allowance for land value was $44,057.62. The rest of the cost was paid through a DNR Swap Grant and a forgivable loan. Of the money from the DNR, $20,000 was in the form of a forgivable loan and the balance in a zero interest loan.
Manchester’s final “out of pocket” costs were $12,074.62 with a land allowance of $18,000 for the six acres and $14,222.55 in city labor and equipment costs.
Street Superintendent Larry Schmidt said they were able to use what they had for base material from the old compost site, which was crushed construction material. |


T & W Grinding held demonstrations of the equipment they use to turn the compost windrows and grind the brush brought by Manchester citizens to the brush dump during the open house Friday.
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By reusing the millings from the old site, it minimized what the City had to buy.
Under the original plan the budget for the project was $215,283 with Manchester paying $127,440.
Schmidt said those numbers figured purchasing all the fill, base materials, millings and sealer.
Friday’s open house was one of the requirements for the DNR grant. Randy Thuman and Lee Wilson were on hand to demonstrate the equipment T&W Grinding uses in making the compost.
They grind the brush and turn over the compost piles at least once a month.
There is still material composting in the former brush dump. The remainder will be finished and screened out to use by late October. The old site, which is five to six acres, will be seeded down.
The new site is also six acres.
“We always had a good site,” Schmidt explained. “It’s unfortunate that we had to move, but I feel we made its access cleaner and neater and it’s a better site.”
Only Manchester city residents are able to bring material to the brush dump, but as it’s available, anyone can remove wood compost, wood chips and fire wood.
Manchester city residents are those who receive a water bill each month.
To learn more about T & W Grinding, go to www.tandwgrinding.com.
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