October 21, 2005

FLORENCE - A request for an industrial-use permit to establish an ethanol plant on a 45-acre parcel southeast of Maricopa drew some unexpected opposition from El Dorado Holdings, the largest property owner in the area, including property on the north side of Maricopa-Casa Grande Highway across from the proposed plant site.

In stating his case, engineer Ole Solberg explained that timing was of the essence in moving along the permitting process." The market is very favorable," he said, and that means that lenders are more receptive to financing this kind of project; furthermore, there are federal incentives that are available, so we need to move quickly if we are to be in production by late 2006."

Attorney Ralph Pew, representing El Dorado Holdings, stated his client's support of the ethanol plant but indicated that there was deep concern over the site plan, saying that he regarded it as being rudimentary. "My client is going to be building homes around the plant, so we need to see a more refined plan... a more accurate plan to determine how it will affect the surrounding developments."

Pew mentioned that with the pending annexation of the plant site, it might only be a matter of a short time before the entire matter fell under the jurisdiction of the city of Maricopa. He suggested that it might be in everyone's best interest to continue the case for at least 30 days.

Harlan argued that by processing the IUP, the commission would be acting as the eyes and ears of the Maricopa commission. "What we're doing here will serve as a reference point," Commissioner Frank Salas added.

Speaking on behalf of Arizona Grain, attorney Steve Cooper said: "They have some suggestions on how to develop the site plan. Quite frankly, that's not the function of our hearing today, which is to determine if the site location is appropriate... which clearly it is. We have put them on notice for many, many months and a lot of meetings both here and in Maricopa about the proposed ethanol plant. There have been articles in local newspapers detailing the project as presented, and as Mr. Solberg told you... we have a very small window in which we have to act in terms of market specifics, and if we get derailed for 30 days, your builders and lenders will all have to get back in line and then that 30-day delay doesn't translate into just 30 days. It could mean a year. It could be two years, depending on the economy, the construction industry, hurricane season, unfortunately. This is a very small window for this project.

"The problem as they perceive it is they propose to tell us how we should reconfigure the site plan. They would like you to broker a development agreement, and that's not the function of the commission. They also tell you that we've had a very harmonious relationship. We have, and we're going to continue to do so. They would like us to kiss and make up with them. I'm here to tell you that number one, yes, we will try to make up with them. ...

"We've been there for many years. We originally built it at a $10 million investment and Arizona Grain is a $150 million a year business. They've been in Casa Grande since 1972. Eagle Milling has been in business in Arizona since 1953. There aren't many places in Pinal County where we can rezone this because of the rail spur. We have to be at the site, and the site is appropriate for this use. Their concern is in how it's configured. We own the land. We have a right to develop it as long as we don't harm the neighbors."

The commissioners unanimously forwarded the permit to the supervisors with a favorable recommendation.