by Otis Lewis
North Iowa better wake up!
$35 million dollars and 50 jobs are great sales tools! Extend the life span of the North Iowa Landfill by 5 fold? CES don’t know that, no one does.
The “extending the life 5 fold of the landfill” statement should tell you that CES is not telling the truth. They will say anything to get this “untested” scheme pushed through.
Here are some additional facts of the matter, and what all of North Iowans better think about before they jump off the deep end. Toxins and air pollution should not be the only concern.
The CES management and promoters are going to make significant money just building it. The outcome is not quite as important to them, as they would have you believe.
I don’t know when the people of North Iowa are going to figure out that the CES developers, by just building this facility will stand to make significant money, upfront. They borrow the money from investors; pay themselves UPFRONT doing the project and promise/hope to make it successful. The usual fee is between 10% and 20% managing/building, the project to fruition. Even 5% of 35 million is a paltry $1,750,000.00 for just doing the deal. Management fees they call them.
If it isn’t successful, they cut and run with their already earned big bucks.
Is there not a thinker in the crowd?
In my professional career I have seen this scheme pulled dozens of times (one kind of project or another) in many unsuspecting towns USA. You have no safeguards built into this project to protect you from the “just doing the deal” and “we are taking all the risks” part of the contract.
If this project does not perform to bring in a profit on their proposed pro-forma for there investors, during bankruptcy and after, there will be years of litigation and down line expenses to the North Iowa Landfill and surrounding communities after it closes down. The demands by attorneys will be un-ending and usually costly. Higher landfill fees, taxes, ECT.
You need to listen to your gut on this one.
If you don’t believe me just ask all the investors/farmers that got burned in the local Bio-Diesel plant sitting idle on old highway 106 now known as 19th street or 255th ST.