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

“Property Value”
I do want to mention, on another topic, property value, as a question that’s come up related to the development of our facility in this, just east of the Industrial Park. And we hired an independent study to be conducted by a certified real property appraisor …Mark Wittinger (sp?) was unable to join us tonight to share the results of his study but I’m gonna skim through real briefly his conclusion of his study, just to give you the highlights of it.

Mark said in his conclusions that the question that he was answering was: “Will the location of the Elk Run Energy Station have more impact on value than the currently existing locational and neighborhood characteristics that already existed.” And his conclusion were, first of all, residentially, the subject surrounding area has not experienced growth or a large increase in property values long before anydiscussion occurred about a coal fired power plant. The dynamics of the adjacent large industrial facilities, the disctance to major retailers, schools, medical services all contribute to lack of developers who are willing to construct new residential subdivisions in the area

In S. Waterloo, West and South Cedar Falls have both attracted developers of residential subdivisions because of their locational characteristics, which appeal to developers. If the power plant has a negative effect on value, why has the value of residential properties around the Cedar Falls plant and UNI’s plant increased steadily over the past 5-10 years? And he goes through the study to explain specific examples of how property has increased in those areas around the existing plants and also the Council Bluff’s plant. There’s a residential subdivision in proximity to the coal fired power station in Council Bluffs, it’s a large residential subdivision within very close proximity. And the answer here is that there are numerous factors that create real estate values. So based on the current locational characteristics, it would NOT appear that the location of the Elk Run Energy station would have more negative impact than the location of Deere & co., Tyson Foods, Kinder Morgan, Warren Transportation or Eagle Ottawa Tannery would have. The majority of new residential has trended toward areas with shopping, medical services, adjacent schools, and access to major arterials.

That’s the basis of the study, and the complete study is included in our application.