By Matt Marquardt –
MASON CITY – A consultant told the North Iowa Landfill (LNI) Board Thursday night that the financial figures he looked at for the proposed Creative Energy Systems (CES) plant “didn’t pass the sniff test.”
The consultant, Curt Hartog of Foth Infrastructure & Environment, LLC out of Lake Elmo, Minnesota, gave a presentation to the board (pictured) and outlined some of the pros and cons that the LNI could expect if it entered into a contractual agreement with CES.
Hartog pointed out during his presentation that the LNI would only be able to supply CES with 90 to 133 tons of trash (sometimes called municipal solid waste) per day. CES has said repeatedly that it will run 7 days per week and need 250 tons of trash per day. CES would convert the trash to syngas using a process called pyrolysis. The gas powers turbines that create electricity that is then sent to an Alliant Energy substation located adjacent to the proposed CES plant location on 43rd Street in Mason City.
Watch Hartog’s presentation to the LNI Board:
When asked for clarification on the statement “didn’t pass the sniff test,” Hartog told NorthIowaToday.com that he had done a “basic financial analysis of the CES operation based on the stream of trash the LNI could offer CES. “They (the LNI) don’t have the amount of trash they (CES) need. That, and no tipping fees are collected by CES. They are borrowing $35 million. It doesn’t add up. They would be running deficits every year.”
CES has said they need 250 tons of trash per day to generate the 10 megawatts of power they intend to sell to Alliant Energy.
A question and answer session ensued after Hartog’s presentation. Several anti-CES project citizens asked questions of Hartog. They pointed out that the LNI would not be able to supply the amount of trash that CES was requiring.
Larry Elwood of Mason City said that the “hill” at the landfill was getting bigger. “It really is one of the biggest hills in Mason City,” he said, and urged the board to take a good look at the project.
Newly-appointed LNI Board member Scott Tornquist urged the LNI Board to move forward and make a decision on the agreeement with CES on or before January 26th. “If the (CES) project fails, there’s no risk to anybody in North Iowa,” he said. “It’s not our problem if we can’t supply enough trash.”
“The environmental concerns have been addressed,” Tornquist continued. “I don’t see where there is any risk or any genuine concern that we should have at this time.”
Watch Scott Tornquist address the LNI Board before more discussion of the contract takes place:
Tornquist urged the board to look over the agreement during the meeting, and give any concerns it had to LNI’s legal counsel, James Locher. The ensuing discussion turned testy at times, and Tornquist became visibly agitated as some board members expressed concern over the contract.
One board member said “we just got this.” Another said “you can’t even buy a house in two weeks.” Another said “I just feel like this is being shoved down our throats.” LNI attorney James Locher said “I would prefer to have several months for something of this magnitude. There will be considerable backing and forthing on this… that’s a difficult thing.”
Watch video of board members discuss the CES contract:
One of the key terms in the agreement is for a contract term of ten years and CES has an option for another 10 year term. So, the LNI could be bound to CES for a period of 20 years. Some board members pointed this out as a concern.
As some board members began to ask if they could be given more time to look over the contract, and if their legal counsel could also be granted more time to negotiate terms, Tornquist said “Look. There is no two or four month option here. There is a two week option or no project.”
All agreed that CES should have brought the agreement to the landfill board much earlier for consideration, if time was of the essence, as Tornquist stated.
Yet more concerns were voiced with the CES contract. Locher had misgivings about an LNI employee working at the CES plant due to liability reasons. Another board member had concerns about rates for trash collection going up. Another questioned who would pay for various expenses, like hauling the residue from the CES plant to the LNI. Another board member questioned whether communities would enforce the 28E agreements that say that those communities should bring their trash to the LNI. Still another board member said “I don’t want someone sorting through my trash. What if I forget to shred an important document?”
On the positive side, Hartog said lowering the amount of waste buried at the LNI would extend it’s life a number of years, perhaps up to 30. It was also said that the LNI would not lose any tipping fees. Tornquist said no LNI employees would be let go. CES has promised over 50 new jobs at its plant. Eventually, CES would pay taxes on its property and benefit Mason City with those dollars.
It was finally agreed by the board that at a meeting in February (instead of January 26th) the LNI Board would meet and decide on the CES contract.
More details to come on this developing story.
How could they get a loan to build this if they can not supply enough energy to show a profit? I bet Bookcryier and Turdquest made their money
Where will the extra trash come from? That can be our new industry. We can get a big marketing campaign going (let’s use taxpayer dollars). We will solicit trash, what a deal, maybe we can be the new YUCCA Mountain since that got canceled in 2009. Talking like that is irrational, well hmmm who would ever think Mason City would be in this position, with having this CES plant shoved down our throat before the proper scrutiny?
You can tell Tornquist is lying, his lips are moving.
There is enough garbage coming out of Tornquist’s mouth to supply enough electricty for whole United States. Just let him keep talking. LOL
Everyone knows Tornquist is a dumb ass, ask anyone on the streets.
Ces says it needs 250 tons of trash seven days a week to produce the 10 megawatts of power they intend to sell to Alliant. LNI says it can only supply 135 tons and our trash routs run five days a week. Where will all the extra trash appear from.
The stupidity of Tornquists statement is almost beyond comprehension. Your telling the taxpayers to invest money in infrastructure and countless city employee man hours in a project that is doomed to fail. It is our money and our problem. And how could you ever get an investor to risk his money knowing this. The only answer is what our mayor and his sidekicks are becoming known for. Backdoor politics. This whole project is like a rerun of the movie dumb and dumber.
His highness Tournquest says the project is no risk to us if we cannot supply enough trash thats their problem. I suppose you and bookmeyer could supply the missing tonage from the garbage you two produce.
Does the mayor and some counsel members think the people of Mason City are that stupid? This whole ces deal has stunk from day one. They have been saying this is so great for the city, maybe great for the mayor and the newly appointed landfill board member tornquist. The way they have been trying to pass this deal through so quickly is so obvious and bypassing anyone who has legit questions, Pam Myre and Max Weaver. Sounds like they both have legitimate questions that the mayor and others don’t even want to listen to. Listening to Mr. Hartog’s presentation on waste to energy on YouTube was very informative. He said there is 175 vendors that do this in the country and we pick the first one that approaches us? Who in they’re right mind buys the first car they look at without looking or considering another possibility? Especially something of is magnitude. Can you blame ces? They just knocked on the door, the mayor and others just opened it without looking threw the peephole.
This situation is ridiculous! These people from CES, or wherever they are from, do not care how this impacts not only the LNI but the north Iowa area in general. Why the rush? Is it because if it is looked into too much it will be discovered these are fly by night folks? AND that the Mason City mayor and his henchman: Tornquist are dishonest and unethical? Why are they trying so hard to force this down the throats of the LNI board? There has to be a reason. And if Tornquist is saying this is time sensitive then why does he not share with the other members why it is time sensitive? Once this plant is operational they will not need to adhere to any new EPA standards, they will be grandfathered in. Ask any employee of the LNI if they want this plant placed, I will bet it is a resounding NO. Watch Mr. Tornquist in the video’s, is this how he conducts business? His physical and emotional agitation is quite obvious, he believes he is “right” when much of his information is skewed or comes directly from CES. Another question becomes what does Mr. Bookmeyer and Mr. Tornquist get from this if it is passed? Tornquist is saying it should be passed even if the board knows ahead of time that the operation will fail, as he puts it “what does it matter” to the LNI if it doesn’t stay operational. Why vote for a project ahead of time that is most likely to fail? Don’t let the board be bullied by Tornquist or his puppet master, Bookmeyer.
I have always been a believer in the free enterprise system which created this great country of ours. People willing to take chances. But along with this came the system of corruption. This project is quickly falling into a pit headed up by our overinflated mayor and his side kick Tournquist. The removal of personal who may question this project and replacing them with organ grinder monkeys is the visible action. One can only imaging what is being done behind closed doors. With out a doubt Bill Rowland is being put under heavy pressure now. A truley sad day for every resident of our city.
Interesting. At the public meeting and at the ZBA, CES said that they would increase the lifespan of the landfill “by a factor of 5”. There is 50 years of capacity left; if the CES plant is built it should extend the life of the landfill to 250 years. The landfill’s consultant says that it will extend it by 30 years. That’s 80 years total. Something doesn’t figure here.
I vote NO.
Send em packing down the road.