Akron Hometowner serving the communities of Akron, IA and Westfield, IA with Local News, Sports and What's Happening in the community. Designed by River City Digital Design www.rivercd.com

December 13, 2006


What's

Happening?


Santa coming!

Santa Claus will be at the Akron Public Library Community Room on the

following dates: Wed., Dec. 13 from 4:30 to 7 p.m.; Sat., Dec. 16 from 1 to 4 p.m.; and Thurs., Dec. 21 from 2:30 to 5 p.m.

Santa at Westfield

From 1:00 - 3:00 p.m.,

Sunday, Dec. 17, Santa

Claus will be at the

Westfield Community

Center.

FNB open house

First National Bank is

holding its annual customer appreciation holiday open house Dec.

18-22.

Waffle Feed

Peoples Bank is sponsoring a waffle feed Dec. 12, 5-7:30 p.m., prior

to the home basketball

game.

Open House

postponed

Betty's Home Interior Open House which was scheduled For Dec. 8 and

9 has been rescheduled to

Dec. 15 (3:30-6:30 p.m.) and 16 (9 a.m.-1 p.m.) at

FNB Community Room

due to a death in the family.

Peoples Open House

Peoples Bank is holding a Holiday Open House Friday, Dec. 15, 9 a.m.- 5:30 p.m.

New Year's Eve dance

A New Year's Eve

dance is being planned by

The Akron Golf Course

board for Dec. 31 at the

clubhouse. Dance is from

8 p.m. to 12 a.m., band is Over the Border. Hors d'oeuvres and party favors provided. Advance tickets available from board members.

 

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The Akron Hometowner

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110 Reed St., PO Box 797

Akron, IA 51001

 


 

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What will ethanol do for Akron, Westfield?

 

By Julie Ann Madden

Editor's Note: This is the first in a series of the impact of ethanol plants on Iowa communities.

What impact will an ethanol plant have on Akron and Westfield? Will it bring more families to the communities? Will it increase student enrollment at Akron-Westfi eld Community

School? How will it effect tax revenues? Will it benefit the already established businesses

in the two communities? Since Akron's will be coal- fired, will there be problems with coal emissions, coal dust and storage? What does the community need to do now to prepare

for the arrival of construction workers? Will there be social and/or criminal problems

with the construction crews? What does the community need to do to prepare for an ethanol plant in its midst? Are there traffic concerns, fire and rescue concerns that need addressed?

The answers are not known in Akron and Westfield simply because the Little Sioux Corn Processors LLLP ethanol plant is not built and operating yet, construction is slated to begin in Spring 2007. The communities of Goldfield and Nevada were the first communities in Iowa to have coal-fired ethanol plants. The Akron Hometowner traveled to Goldfield and Nevada to see what impact their coal-fired ethanol plants have had on those communities. The town of Goldfield is about 10 blocks by 10 blocks in size with a population of 680. Goldfield is part of the Clarion-Goldfield School District. Goldfield has an elementary school where preschool and third grade is taught. The rest of the students are educated at the school in Clarion. It looks like a “bedroom” community similar to Westfield. It even has its own chain saw artist. The Goldfield ethanol entrepreneurs toured the Little Sioux Corn Processors LLLP ethanol plant in

Marcus before deciding on an ethanol plant. Goldfield's ethanol plant sets about 1,000 feet from the town's most eastern street. Between that street and the ethanol plant is the

Gold-Eagle Cooperative elevators. That would be comparable to saying the street in Goldfield is Iowa Highway 12 here and the ethanol plant sets on the western side of Farmers Coop in Akron. Goldfield's ethanol plant is called Corn LP and is owned by Gold-Eagle Cooperative, the local farmers coop. Gold-Eagle Cooperative has the largest percentage  of ownership, said Corn LP General Manager Brad Davis, adding 76 percent of the owners live within 40 miles of Goldfield. “There is a separate board of directors for the ethanol plant,” said Davis. “We manage the facility; do all the merchandising.” “It's Gold-Eagle employees who operate the plant,” he added. “The plant manager reports to me.” “We have nine (elevator) locations from which we feed corn to the ethanol plant,” Davis explained. “Gold-Eagle sells the corn to the ethanol plant.” “This ethanol plant is set up like it's another Gold-Eagle location,” he said.

“Everything we set up out here is fairly unique,” said Davis. “It works pretty slick here.” “It's a 50 million gallon ethanol plant but we will expand to 100 million in 2009,” said Davis. Corn LP is building a second ethanol plant at Wesley. It will be a 100 million gallons facility. The equity drive will begin in February 2007 with construction later that Spring. There are plans for a biodiesel plant at Goldfield but it is not through Gold-Eagle Cooperative. Effect on City Utilities Goldfield has its own municipal water and sewer utilities but not electrical. The ethanol plant uses no city utilities for its ethanol production even though the land it sets on was annexed into the city. The Corn LP only uses city water for drinking water at the plant and city sanitary sewer for the plants' toilets. The Corn LP plant is hooked to Goldfield's water tower just in case there would be an emergency need for water. The biggest question in Akron and Westfield residents' minds seems to be what will a coal-fired plant do to the community environment. Goldfield residents didn't know the ethanol plant was up and operating for about two weeks, said Davis, explaining that with a coal fired plant, there is no vapor cloud shown out of the stacks unless the temperature drops below 50 degrees. “We're evaporating 60,000 pounds of water per hour from our dryers,” said Davis. “It's just because of the temperature and humidity that you see nothing.” There are no black smoke clouds like people may remember seeing at the Pittsburgh steel mills, he said. “That's not the case with

today's technology.” Corn LP uses Powder River Basin coal from Wyoming. It is trucked in because they wanted to focus on making ethanol, not unloading train cars, said Davis. The largest coal pieces are half the size of a man's fist, he said. The trucks pull into a “coal delivery” building, which is like driving into an above-ground tunnel -- the whole truck and trailer fit inside this building where the coal is unloaded. Inside the building is a computerized weigh scale which weighs the truckload to verify the amount of coal received, he explained.

As the coal is unloaded, the building is “fogged,” just like fog coming off the coastal waters, said Davis. At three gallons of fog per minute, the fog attaches to the microscopic coal particles, making the particles drop, preventing coal dust issues. “Unless the wind is really blowing, we leave the doors (where the trucks enter and exit) open. “You don't see any coal particles or dust around here,” said Davis. On the day of The Akron Hometowner 's visit, there were a few coal pieces on the ground outside the building due to a truck losing them as it left the building. Davis told The Akron Hometowner that this building had not been cleaned once in its nearly 11 months of operation. The Akron Hometowner noted that there was just a slight whitecolored dusty film -- similar to a dust coating one finds in their home when they live on a gravel road in Plymouth County and dust on a regular basis. There was no dust on The Akron

Hometowner's vehicle after being parked at the plant office, about 1,000 feet from ethanol plant for a couple of hours. One gets much more debris on their vehicle parked at the west end of Reed Street during harvest in Akron. The Goldfield ethanol plant receives 12 truckloads of coal each day plus loads of limestone which is unloaded in this same building. All handling of coal is done inside the facility. There is no outside storage of coal. “You wouldn't know this is a coal-fired facility,” said Davis, adding if they decide later on to bring the coal in by railroad car, they will continue to unload coal inside a building. The Goldfield ethanol plant has two large coal storage silos, which hold 1,100 tons of coal each. Carbon dioxide is pumped into

the silos to displace oxygen, which prevents spontaneous combustion of the coal. Spontaneous combustion can happen when coal is stored longer than its shelf-life of about ' days. “We have seven to eight days supply on site,” said Davis. The coal comes out of the bottom of the silos, then goes through a “sizer,” which grinds the coal so that each piece is no more than one-fourth inch in diameter. The crushed coal is then transported by conveyor belt to three stoker bins and into the furnace. As the coal burns, the heat in the furnace is transferred into a boiler to produce steam. “Throughout the whole plant we need steam to make it function,” said Davis. “That's really the difference between coal-fired and gas-fired -- where steam is being produced from the heat of the coal. The only other difference between the two heating systems is that the coal-fired plant has two large fans instead of one. Every

ethanol plant has to have a fan in the thermal oxidizing process to take care of organic compounds when drying distiller grains, just like a cooperative uses to dry corn. A coal-fired plant has another fan which blows air through the furnace to keep the oxygen level high enough to get a good burn from the coal. “The rest of the plant is identical to a gas-fired plant,” said Davis, adding it costs a lot more to build a coal-fired plant. Coal ash particles leftover from the burning of the coal fall down into stainless steel ash collectors and are transported to an ash storage bin. During the burning process limestone is added to remove sulfur and anhydrous ammonia is used to help control “NOX,” nitric oxide by-products from being emitted. Any coal particles which remain suspended are removed as it goes through the next building, which is called the “bag house.” This building is like a huge vacuum cleaner,” explained Davis. “Everything has to go through the filter bags before it can go out as exhaust through the chimney so that eliminates our particles.” The final ash is removed from

the plant by being loaded inside a building, too, said Davis. “With the permitting you do with the Department of Natural Resources and the amount of particulate you are allowed to emit - - whether unloading corn, coal or dried distiller grain -- it all has to be measured and controlled,” said Davis, “so you don't have those (environmental issues).” “Even if we wanted to be poor steward of the environment, we just didn't care and were going to do it anyway, legally we couldn't do it,” said Davis. There is a small building setting adjacent to the coal delivery building, which contains the Continuous Emissions Monitoring System. “We're monitoring (24 hours a day, seven days a week) emissions going out of the stacks,” said Davis. “The DNR and EPA can come in and look at it at any time. All the data is fed into our system as well. (Our computer operations personnel) continuously monitor the levels.” “They will absolutely, positively never know there is an ethanol plant (in Akron),” said Davis. “There will be no odors, no smoke. There will be no noise. They've got truck traffic on a major highway.” “There's going to be tremendous opportunity for people who want to change job responsibilities or people who need to move to Akron because they got a job in Akron,” said Davis. The Goldfield Fire Department consists of volunteer fire-fighters like Akron's. Gold-Eagle Cooperative took a proactive stance when it came to preparing for any future industrial

disasters such as chemical leaks, injured employees or an explosion, said Davis. Any disasters would be similar to a gas station fire, a tanker tipped over or an employee being injured -- cuts, bruises or needing rescued from tops of silos, he said. During the construction phase, they had about 10 different meetings with area fire departments, which would respond to any disasters at the facility. The firefighters were given many tours of the facility during construction so they would have firsthand knowledge of how the facility was built and operated. In addition, Gold-Eagle Cooperative contributed between $10,000 and $15,000 to the departments to pay for training the responders needed in case there was an issue, said Davis. There wasn't much more training the firefighters needed but Gold-Eagle Cooperative donated a barrel of ethanol for the firefighters ' training. “We provided as much as we could for specific training,” said Davis, adding that they also keep special foam on hand at the ethanol

plant in case of a fire emergency. They also installed fire loops and hydrants at the facility. “We just have a great relationship with local fire departments,” said Davis. “If any local fire department gets in trouble financially or needs pieces of equipment, we'll be there in a heartbeat, too.” “Truck traffic doesn't interfere with the town,” said Davis. “It comes off Iowa Highway 3.” The plant uses 50,000 bushels of corn per day, he said, explaining a truckload is about 1,000 pounds and they receive corn five days each week. “Roughly 350 trucks come in

each week (to the plant),” said Davis. There is no backup on the highway because there is room to hold about 50 to 60 semi tractor-trailers in the plant facility, said Davis. All the corn used to come through town to the Gold-Eagle Cooperative, said Davis. Now, it goes straight through on the highway to the ethanol plant so it decreased traffic in town. “The truck traffic doesn't hurt us,” said Mayor Rick Rasmussen, adding it diverts the traffic from town. One advantage is that school transportation of students isn't effected by the truck traffic because the school sets on the west side of town. Effect on Local Economy Corn LP has had an impact on Goldfield. Its main impact is that it offered people in the region a better paying job and increased some business such as at area convenience stores. The economic impact was greatest during the construction phase. “It was a boom to this community (during the construction phase),” said Goldfield City Councilman Tom Stevenson, adding besides benefiting the food establishments, every house and/or apartment was rented. Although the dining establishments benefited, it wasn't like what has been discussed in Akron. When Fagen Inc. personnel came to Goldfield to begin construction, the first thing they did was construct a large heated hoop building at the site, said Davis, explaining the building was full of picnic tables and had vending machines. “Most (construction workers) never leave the plant once they come to work,” said Davis. “They carry their lunch to work.” “A few employees leave the site to go to a restaurant but I bet it's less than 5 percent,” he said, “so it absolutely didn't overwhelm the community.” Gold-Eagle Cooperative provided a few free noon meals for

the workers to show their gratitude for getting an ethanol plant in Goldfield. There were three restaurant owners who brought meals to the site, said Davis, explaining that one would bring like 10 to 15 hamburger- fries meals, and another brought a Chinese smorgasbord to sell on site. After a few times, these businesses had some steady patrons who counted on the daily

meals. A few times, Fagen Inc. offered the workers “potlucks.” The workers each pitched in a few dollars, and Fagen Inc. brought in food. The construction workers rent homes, stay in motels,” said Davis. “When you bring in this number of people, they get disbursed 20 to '

miles from the site.” “There's not enough room in a small community like Goldfield,” explained Davis, adding, many restaurants, gas stations and convenience stores benefit in a 10 to 20 mile radius. For example, the local Casey's General Store had to have two cashiers working.

In addition, Davis' wife saw an increase in customer traffic of employees' wives in her gift shop

in Eagle Grove. He said not all the workers come at once. For example, the concrete workers may come first; then the electricians; then the plumbers and so on. The number of construction workers steadily builds to a peak number and then slowly declines as groups of workers leave, said Davis. Goldfield's ethanol plant was unique in that it would receive several tax incentives if it was operating by Dec. 31. Therefore, they had 180 - 190 workers but we were very unusual, said Davis. “Normally, it peaks out at about 80 construction workers.” Some of the workers stayed until February 2006 as part of the troubleshooting crew, he added. “We don't have many food places in town but it still helped them quite a bit,” said Mayor Rick Rasmussen. Effect on Society “They really get involved in the community,” said Davis, about the Fagen Inc. workers. “Many bring their families with them.” The Fagen Inc. employees participated in Goldfield's Sesquicentennial celebration that summer. “The community really liked them,” said Davis. Davis knew of only one criminal incident that was conducted by a construction worker. He said an employee who lived 10 miles from the site and was hired by Fagen Inc. for the construction phase was arrested for operating a motor vehicle while intoxicated (OWI). “He was immediately let go,” said Davis. “I think (the Akron-Westfield community) will absolutely embrace the construction workers because they are great people,” said Davis, “and they spend a lot of money.” Now, the plant has 38 or 39

employees, said Davis. “Goldfield is such a small town,” said Davis, adding the Coop already had most of the employees here. I think four or five live in town. Some commute 20 miles.”

“We only brought in three people (to the area),” he said. “All the rest were hired from the area: Clarion, Humboldt and Eagle Grove.” The three people bought acreages so there was no housing benefit to the City of Goldfield. “People who came to work (at the plant) have much better paying jobs so someone else had to import employees because we took employees that used to work in the area,” said Davis. “The City of Goldfield has more dispensable income now because of the ethanol plant,” said Davis, adding Goldfield hasn't had a Main Street business district for at least 20 years. Two of the four restaurant facilities in town remain in business. According to the townspeople,  one had closed several years ago. A steak house that had done a booming business during the construction phase closed shortly after due to alleged mismanagement. Remaining is the Dari-Y, an establishment similar to Akron's Dean's Dug Out, and the Cheese Mart, which is well-known for its cheese products. The City of Goldfield gave Corn LP a 20-year 100-percent tax abatement on its ethanol facility. The Corn LP owners decided to give an annual monetary gift to the city in return.

Although it's not quite the amount the city would receive in tax revenues on the facility, the money has no strings attached. We can spend it anyway we want, said Mayor Rick Rasmussen, adding we have all ready spent some on our police and fire departments, which were the two entities that had the most need. “During the construction process, it brought a lot of income into the town,” said Mayor Rick Rasmussen. “It brought in a lot of sales tax revenue.” Effect on School District The Clarion-Goldfield Community School District hoped to

increase its student enrollment with the opening of the ethanol plant -- just as Akron-Westfield Community School administrators are. However, it only temporarily increased student enrollment, said Clarion-Goldfield Elementary Principal John Suhumskie, who has been the principal for the past 20 years. Only two construction workers brought their school-age children with them, he explained. Once their work was done, the construction workers moved on taking their children with them. The ethanol plant brought no children to either Clarion or Goldfield once it began operating either, he said. “It was disappointing,” said Suhumskie. “They originally said they'd hire 40 or 50 people for the plant but what they did was hire people from surrounding communities, including Eagle Grove, Humboldt and Fort Dodge.” Suhumskie remains optimistic. “I'm hoping in the next few years we might get some people to move in that would gain us some students,” said Suhumskie. Student enrollment has increased in the school district but it's because of the increase of swine and chicken confinements in the area, said Suhumskie. The ethanol plant has brought some notoriety to Goldfield -- just for having one, he said. “It was interesting watching it go up,” said Suhumskie. “You never saw anybody work on it but the next morning another piece of it was up. They worked on it 24 hours a day.” “I can't honestly give you a negative on it -- except I haven't gotten the kids I thought I would,” said Suhumskie. “Not that they were promised to me but I just assumed that we would get families to come in.” “Part of the problem might be we don't have the housing,” he said. “I'd love to see more kids come out of (having an ethanol plant),” said Suhumskie, “but maybe we will some time.” “I honestly think the only thing

you can expect is a positive,” he said. “Hopefully with Akron you'll get people to move into Akron.” “I think it's great,” said a woman eating at the Cheese Mart in Goldfield the day The Akron Hometowner visited. “It's a wonderful facility. A good thing for our community.” “It helped Goldfield economically,” she said, adding she wished to remain anonymous. “It's financially locally owned. It helps them have a good economic impact personally.” “They give money back to the community,” she added. “That money will help with (municipal) infrastructure.” “There is a noise,” she said, “but there always was from the (Gold- Eagle Cooperative) elevator and trucks.” “We don't hear it,” said Bill Olson of Goldfield as he enjoyed a cup of coffee. “We don't smell it.” “There is no smell,” agreed Sandi Gangstead who owns the Cheese Mart. Although some people said it smells like baking bread or making

beer, no one that The Akron Hometowner met said the smell was a bother. In addition, Davis hasn't received any complaints of odor since the plant began operations in December 2005 but they are “still tweaking, making adjustments” in the ethanol process. “It's absolutely wonderful (having an ethanol plant in Goldfeld),” said Gangstead. “My business was increased (during the construction phase).” “It doesn't have much effect now,” she added. “It's a big deal for our small town,” said Jerry Rust, who joined others for afternoon coffee at the Cheese Mart. “The only thing wrong is it started ' years too late. We should have started something

like this years ago.” “The only negative impact would be a little bit of noise,” said Councilman Tom Stevenson, “and occasionally a little odor from it. It smells like a bread factory.” “The negative comments come from people who said it was a mistake to do it to begin with and

didn't invest in it,” he said. “The sour grapes stuff.” “(Corn LP personnel) have come out and checked noise levels,” said Mayor Rick Rasmussen. “They are still working with that. Any new industrial will have noises different than what was here before.” “The biggest thing was were we going to have coal dust,” said Mayor Rick Rasmussen. “We don't have anything. We absolutely don't even know there's coal out there.” It did provide '-plus jobs for the community but only a few of the people hired were new to the Goldfield community, said Rasmussen. “Some people changed jobs who were already working in the community.” “I don't know that we had an influx of people for employment,” said Stevenson. “Clarion, Eagle

Grove and Humboldt are larger towns so that is where they want to live.” In fact, Davis commutes from Eagle Grove. Stevenson doesn't see their empty Main Street changing. It's

been that way since the farm crisis of the 1980s. “We're too close to Clarion and Humboldt,” said Stevenson. “We're always going to be a bedroom community,” said Rasmussen, who owns a landscaping business. The town has seen four or five houses built in the last five years; however, all were built before the ethanol plant vision was proposed, said Rasmussen.

“It's good for our city,” said Stevenson. “My only regret is I don't have more stock in it.” “I think it's a big positive,” said Rasmussen, “and I'm not a stockholder. I think it's a win-win situation

for Goldfield.” “I'm glad we got it,” said Stevenson. “The more activity you have in a community, the better it is for your community.” When asked what advice they'd give to other city officials contemplating an ethanol plant in their city, Councilman Tom Stevenson responded, “The only thing I'd want to be sure of is get everything in black and white (such as) the infrastructure costs: Who's paying for the water line going out there? Who's paying for land restoration afterward?” “You want to be sure that's very well understood between the two

parties,” he added, “because we had a little controversy but not enough -- no fist fights -- but it was discussed.” Traffic control and routing needs to be addressed, said City Councilman

Tom Stevenson. He explained that they should have had Iowa Highway 3 made into a four-lane highway out passed the ethanol plant site. One problem they've discovered is the right turning lane into the ethanol plant ends immediately at the entrance to the plant. The pavement ends, and motorists not realizing it, end up driving on the gravel shoulder of the roadway while trying to reenter the lane of traffic. “With four lanes, you might not have needed a turning lane,” said Stevenson, adding they didn't know how harvest traffic would affect the traffic issues since the ethanol plant hadn't opened until winter. The harvest traffic in 2005, without an ethanol plant, backed up one-fourth mile along the highway, said Rasmussen. “State officials were mad because you can't block a highway.” The Gold-Eagle Cooperative

elevator is adjacent to the ethanol facility. “We could probably have done a better job if we had foreseen some of the things,” said Stevenson. “We didn't know any better then.” “Gold-Eagle has been very good if we have a problem, they take care of it,” said Mayor Rick Rasmussen. “They are very good at supporting our community,” agreed Stevenson.

 

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