Midtown EcoEnergy
From:
Carol Greenwood
Date:
Mar 26 20:21 UTC
Short link
March 25 Bridge article
*East Phillips withdraws biomass support*
A required ‘good neighbor agreement’ for a proposed Phillips biomass
project has fallen apart, putting the future of the project in question.
A unanimous vote this week by the general membership of the East
Phillips Improvement Coalition follows a similar vote by the EPIC board
in December to withdraw support for the wood-burning power plant. The
agreement with Kandiyohi Development Partners was one of many
requirements for a city land sale. The neighborhood originally entered
into the agreement in 2005.
In a statement explaining the reversal, Carol Pass, EPIC board president
said, “This neighborhood already is host to two asphalt plants, a
foundry, a superfund site and serious lead issues. The neighborhood’s
willingness and ability to absorb more was extremely stretched.”
Council Member Gary Schiff says he will not support the extension of a
March 30th project deadline. “The city required a good neighbor
agreement for a reason. We are not going to force a project with
environmental impacts in a neighborhood where it isn’t wanted.”
Negotiations to convert a former incinerator into a biomass energy and
district heating facility began with the Green Institute in 2004. After
competition emerged to develop the site, the city issued a request for
proposals and awarded the rights to Kandiyohi Development, the only
company that responded. Seventy-eight million dollars in Empowerment
Zone bonds were issued in the fall of 2006, and have since expired. A
power purchase agreement with Xcel Energy, plus financing commitments
must be in place by the March deadline.
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