Cairo Association of Teachers - Newsletter

CAT Tracks for June 12, 2007 POSITIVE NEWS FOR CAIRO, BUT...

...the Cairo airport emerges as a deal breaker! Will the FAA and IDOT REALLY kill the possible rejuvenation of the southern tip of Illinois?

Tentative groundbreaking set for two of three energy projects

By Rudi Keller ~ Southeast Missourian

Ullin, Ill. -- Of three major energy projects proposed in Southern Illinois, the first to be announced was a 100-million gallon ethanol plant in Pulaski County.

But when civic and economic development leaders met Monday to hear an update of plans for major projects in the region, the ethanol plant was the only one discussed that didn't have a projected groundbreaking date. Two diesel plants -- a biodiesel facility in Cairo and a coal gasification plant just north of the city -- both gave tentative dates for the start of construction to the annual meeting of the Southernmost Illinois Delta Empowerment Zone, or SIDEZ.

"We do this meeting once a year," said Donna Raynalds, executive director of the three-county empowerment zone. "This year there are so many large projects that are looking at the area that people don't know about. We wanted to notify the communities that, hey, we need to get organized and ready for change."

The biggest proposed project is the 2,000-acre, 50,000 barrels a day coal-to-diesel plant being pushed by Clean Coal Power Resources of Louisville, Ky. The $3.4 billion plant has lined up investment banking funds and a customer who has promised to buy all the diesel it can make for 20 years, said Bill Capie, a former administrator at Southern Illinois University who has become the public spokesman for the project. He showed a timeline for meeting regulatory and other hurdles that included a projected March 2008 groundbreaking.

If the plant is built, it will provide 1,000 construction jobs for two years and 750 permanent jobs, Capie said.

To be feasible, he said, the project must have the support of local governments, state government and the federal government to provide the incentives that will help offset some of the massive private investment. A recent air pollution permit for construction of a plant near Taylorville, Ill., that will use some of the same technology is a good sign, Capie said.

But one major stumbling block to the proposed plant is what to do about the Cairo Regional Airport, which sits in the middle of the proposed plant site. The Federal Aviation Administration and the Illinois Department of Transportation are unwilling to approve closing the airport, he said.

While the developers are willing to help relocate the airport, he said, the plant can't be built if the airport stays in place.

"It is not possible to do this around the airport," he said. "The airport is a drop-dead issue."

The two other major energy projects are:

* The Renewable Energy Group project for a 100-million gallon a year biodiesel plant near the Bunge Corp. facility in Cairo. Mike Eickhoff of Duff and Phelps Financial Consultants of Chicago said he expects construction to begin in the fall of this year.

* The MOR Energy project in Pulaski County. The plant, also 100 million gallons a year, would produce ethanol. Kevin Ulrich, representing the developers, didn't give a date for construction but said "every day we are inching closer."

The Renewable Energy Group project will use tax increment financing, or TIF, to help pay for the infrastructure needed to support the plant. The details are still being worked out, said Cairo Councilwoman Linda Jackson, who attended the Monday meeting.

The Cairo City Council will decide tonight on how to proceed with gathering public comment on the proposed TIF district, Jackson said. And the council will also be choosing a consultant to study the feasibility of a "transloading" facility to move freight between barges, trains and trucks at Cairo.

Jackson said the two energy projects have strong backing among council members. "I want to commend them for their efforts," she said. The council will support "whatever benefits the businesses."

And Alexander County commissioners are backing the proposed plants as well. Commission Chairman Mike Caldwell and Commissioner Angela Greenwell attended the meeting and said they believe both projects are strongly backed and seem far more likely to become reality than they seemed a year ago.

"It is phenomenal to think we are the chosen ones," Greenwell said.

Johnson County Commissioner Ernie Henshaw, president of the SIDEZ board of directors, said the projects have the potential to transform the region, long mired in decline and poverty. "For the first time in many years, people are feeling a sense of hope," he said.

And, from the Southern Illinoisan...

Southernmost counties get update on planned projects

BY BECKY MALKOVICH, THE SOUTHERN

ULLIN - With three proposed production plants in the works, the future of Illinois' southernmost counties could be fueled by alternative energy sources.

Nearly 200 residents and community leaders turned out Monday night for an update on the proposed coal gasification plant, biodiesel plant and ethanol plant, as well as other progress being made in the Southernmost Illinois Delta Empowerment Zone, which includes Pulaski and Alexander counties and portions of Johnson County.

The SIDEZ region update meeting was held at Shawnee Community College in Ullin.

"The future looks promising," said Donna Raynalds, SIDEZ executive director. "We feel very hopeful about these projects. Our rural area lends itself to that type of development. We also have good infrastructure and are situated between two major rivers. We have rail service and interstates nearby. All in all, this is a prime area for any sort of development."

Bill Capie of Clean Coal Power Resources said plans for the construction of a $3.4 billion coal gasification plant are moving along. The coal-to-liquid project would be located in Alexander County.

"We would use 7½ million tons of coal per year to make 50,000 barrels of clean-burning liquid fuel per day," he said.

Phase one of the project would take two years to construct and provide 1,000 construction jobs, with 750 permanent jobs available once the plant is operational.

"This project is for real," Capie said. "We're getting closer but we still have a lot of obstacles to overcome."

For instance, he said, issues with the airport in Cairo could spell trouble for the project.

Because the plant would have several tall towers, "The height restrictions and insurance risks require airport closure, but the FAA and Illinois Department of Transportation are unwilling to close the facility," he said.

The project must also successfully complete the permitting process. Capie said he hopes to apply for an air permit by July 1.

Thirty full-time jobs will be created at a planned biodiesel plant. Renewable Energy Group plans to build the plant in Cairo, adjacent to a plant owned by Bunge North America, one of the project's financial partners, said Mike Eickhoff, who represented the energy group at the SIDEZ meeting.

Eickhoff said the project represents a $100 million investment in the region. Construction could start in the third quarter of this year, he said.

A $90 million ethanol plant planned for Pulaski County also continues to move forward, said Kevin Ulrich, spokesman for MOR Energy. The plant could produce 100 million gallons of ethanol annually and create at least 80 jobs. The lead investor of MOR Energy is Curt Jones, a Southern Illinois University Carbondale graduate and president and founder of Dippin' Dots.

"We continue to jump through hurdles, but I am very pleased to state that we are making progress," Ulrich said. "Each day inches us closer to bringing hundreds of construction jobs to the region. Progress is being made."

Also speaking at SIDEZ region update was Theresa Monzulla, who with her husband, Bruce, purchased The Gambit Golf Club in Vienna last October. The couple has already made many changes, she said, and more are planned.

New additions at The Gambit include the 19th Hole Bar and Grill and fine dining at Christophe's at The Gambit. Renovation of The Gambit Inn should be completed this fall.

"Our ultimate goal is home development. We want to build a gated community with private homes, assisted living and rental cabins," she said.

A resource fair preceded the region update meeting. Representatives from local, state and federal organizations were available to talk to community leaders and residents about resources available to help meet needs of communities.