LOGANSPORT, Ind. (WLFI) – Logansport is one step closer to bringing a multi-million dollar power plant to the city.
“We’ve set a time frame for votes and we’re finally one way or another going to put this thing to bed,” Logansport Mayor Ted Franklin said.
The purchase power agreement is ready to head to city council and utility service board members for a vote. It outlines an agreement between the city and the developer Total Concept Solutions. Logansport will get the electricity at a low rate, create 160 jobs and bring in millions of dollars.
“We will be getting four percent of the growth sales across our system for the use of our lines,” Logansport Municipal Utilities superintendent Paul Hartman said.
“That percentage is guaranteed at no less than $5 million a year. Depending on the cost of electricity and the size of the plant, that amount could go up to as much as $70 million dollars a year,” Franklin said.
The $803 million plant will be solely funded by Total Concept Solutions. The plant will use natural gas to create energy, but will have the option to turn waste into energy. The city and taxpayers won’t pay a dime.
“This is the game changer. This alone could totally eliminate property taxes in Logansport,” Franklin said. “It could if that’s what we chose to do with the money. That’s the kind of money we’re talking about here.”
Franklin said the city will also be given the option to take ownership at no cost to the city after the 20-plus year agreement is up with Total Concept Solutions.
However, the city has invested more than $1 million in legal fees and consulting services already.
“Is the city at risk right now? Yeah we’re out $1.6 million dollars,” Franklin said. “That’s what we are out. If this thing truly happens, and if we don’t get sued again and get delayed again and all those other things, then we will make $1.5 million dollars a week.”
The purchase power agreement now must pass the utility service board and city council. If passed, the city will be reimbursed the 1.6 million dollars. The plant has to be up and running by Jan. 1, 2019. Franklin said it could take at least a year to get air permits.
There will be a public hearing May 15.