Decision still looms for future of once proposed biomass plant site

Published 9:00 am Wednesday, July 27, 2011

There are still no official answers from the Valdosta-Lowndes County Industrial Authority to explain what will become of the 22.2-acre tract of land that was projected to be the location of a biomass power generator facility.

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Despite passing the 60 day deadline provided by Wiregrass Power LLC. legal representatives in a letter submitted to the Industrial Authority on May 25, 2011, which states the intention of the company to purchase the tract of land despite failing to meet a number of key project goals, no decision has been made by the Authority.

Wiregrass Power LLC. proposes purchasing the property at a cost of $430,000, minus $30,000 already submitted by the company on Sept. 1, 2010 for the right to extend the commencement of construction and installation of the project an additional nine months, to June 1, 2011.

Section 2.5.12 of the contract between the two parties states, “In the event Wiregrass does not create 80 percent of the job estimates outlined in this section and make $80,000,000.00 in capital investments in the Project, Wiregrass agrees to reimburse the Authority an additional $230,000 at such time as Wiregrass exercises its option to purchase said property and pays the $200,000 “Purchase Price” under the Indenture of Lease.”

City manager, Larry Hanson, sent a letter to Robert Turner, project development director of Sterling Planet, the parent company of Wiregrass Power LLC., on July 18, informing the company of the position of the City of Valdosta regarding the sale of gray water or services for the proposed facility.

“…this letter will serve as notice that the City has no plans nor has made any commitment to serve this property if ownership changes. If the company acquires the property from the Authority, as an owner of private property located outside the City, the company can explore any and all options for utility services, which could include private wells, or service by the appropriate governmental entity. However, I felt it important to inform you that at the present time, the City has no agreement to serve the property and we want to be sure the company is aware of this and does not rely upon any assumption or expectation the City will serve the property in any of its negotiations or deliberations with the Authority or other parties.”

The proposed biomass facility requires thousands of gallons of water to operate per hour.

Dr. Michael Noll, president and co-founder of Wiregrass Activists for Clean Energy (WACE), one of the most visible organizations opposed to the proposed construction of the biomass facility, has sought counsel from attorney Jon L. Schwartz of Atlanta for his opinion on the legality of the company’s request to purchase the land.

Stated in the last paragraph of a certified letter sent to the Industrial Authority board members and staff on July 8, 2011, “Wiregrass Power, LLC had no right to exercise a purchase option prior to the June 15, 2011 commencement of the Lease Term. However, to the extent there is ambiguity in the Lease, the controlling factor must be whether the parties intended for Wiregrass Power, LLC to have a right to purchase the land prior to construction and installation of the Project and whether the parties intended for Wiregrass to have a right to purchase the land after failing to meet the deadline for commencement of construction set forth in the Lease and Development Agreement.”

When asked about any decisions the Authority has made regarding the company proposal, Authority attorney, Steve Gupton, responded, “I cannot comment on that due to potential litigation regarding Wiregrass Power.”

When asked if there would be an answer in the near future for the public, a similar response was issued: “At this point in time it is something I’m not going to talk about,” said Gupton.

When questioned if going past the 60 day deadline requested by the company would have any negative consequences, again, Gupton responded, “I cannot comment on anything related because of potential litigation.”

When asked if there was any official response to the letter submitted by Schwartz, Gupton stated, “I cannot comment on anything related to the issue because of potential litigation.”

An Open Records request was filed Tuesday by the Valdosta Daily Times with the Industrial Authority and law offices of Stephen Gupton for further documentation regarding the possible transaction, as the Open Records law does not include an exemption for future litigation. The results of the request will be made public when the Authority responds.

Newly appointed Industrial Authority Chairman Roy Copeland offered no additional insight into the matter.

“We have met with our counsel and the counsel is dealing with the issues raised with the request,” said Copeland. “Due to the sensitive nature of this matter, that’s all I can say at this point.

“It’s forthcoming. I can’t tell you anything because quite frankly, lawyers have their own schedules. I literally do not know specific details because I’m not privy to that information as of this moment.”

Noll, who just recently returned from Germany, was disheartened to see the biomass project remains a potential option for the community and hopes Authority members negate the contract.

“Wiregrass Power has a diverse portfolio of possible projects they could bring to this area,” said Noll. “If they wished to extend the solar facility, we would support their decision, but we cannot support a project that will release dangerous levels of pollutants into the atmosphere. We’re afraid there is a back-door deal going on when nobody in the community is really in love with the project.”