citizens of the Cedar Valley address the proposal for a coal burning power plant

Waterloo, Iowa

City Council meeting

May 7, 2007

 

 

 

c e d a r v a l l e y s p e a k s

Elk Run Energy (St. Louis, Missouri )/LS Power/Dynergy
Mark Milburn, Elk Run Energy Project Development Manager

“Highlights of Our Application”
First of all the economic benefits and impacts of the facility. As you know the Greater Cedar Valley Alliance commissioned an independent study to evaluate the economic impacts, both the regional direct, indirect, and induced impacts in the three-county region of Grundy, Bremer and Black Hawk County.

The scope of study included short term impact during the 4-year construction period, and the long term impact to the community during the operational years of the facility. The study found that the construction and operation of the plant would provide an incredible boost to the Waterloo/CF Metropolitan statistical area. Local impacts result in direct labor costs, purchases of good and services, and operations in maintenance of the facility. There is also an estimated 3.15 million in annual taxes to local and state governments ….and I’ll briefly mention more detail about the tax revenue in a moment.

In addition, the study identified that the local impact during the 4-year construction period to the three county area would be more than $270 million, and then annually, during operation, $26 million. And that’s merely from the paychecks and the good and services injected here locally, that doesn’t include revenues to the plant, coal purchases…railroad aspects of the plant. It’s merely workers goods and services related to the project.

At the peak of construction there would be more than 1200 jobs required…and 100s of jobs throughout the construction period. And once we’re up and running, approximately 100 full time, highly-paid skilled operations and maintenance staff.

In addition there would be substantial sales tax and school infrastructure tax revenue on construction-related purchases, and we also have committed to a number of direct financial contributions to various different programs throughout the community which we’ll talk about later tonight as we discuss a development agreement that we propose to bring before you, members of the council.

One of the important aspects of the plant is that is difficult to quantify is the fact that it contributes to downward pressure on electric rates here in the area, and in this part of Iowa. And it’s a foundation for future of economic growth b/c of the abundance of low electric rates. And also b/c of the availability of domestic coal supply here in the U.S., building this type of facility helps mitigate the dependency on foreign energy imports such as liquefied natural gas or oil.