Commissioners finalize RES Poly deal
By Mike Marturello | KPC Media - The Herald Republican
The Steuben County Board of Commissioners approved updated documents that will eventually provide a $1.5 million loan to the town of Ashley for infrastructure to accommodate the construction of a waste-to-fuel production operation on Monday in a special session.
Commissioners approved an updated agreement with Ohio-based RES Polyflow. The $1.5 million loan will also have to be approved by the Steuben County Council.
The agreement is contingent on RES Polyflow repaying a $1.5 million loan it had received from the county to help it secure its initial financing for the $130 million project.
“Until they (RES Polyflow) pay the money back, you can’t lend money, the council can’t loan money it doesn’t have,” said Don Stuckey, county attorney.
Commissioners have approved offering tax abatement to RES Polyflow, which also must receive approval of the County Council. Details of the abatement were updated and approved by commissioners on Monday.
In May the commissioners agreed to loan $1.5 million to Ashley for infrastructure once RES Polyflow repay its loan.
Ashley has enough money to pay for the road at the site, which is just east of Klink Industries. The road will cost about $500,000, but Ashley needs funds to build sewer and water.
The infrastructure would serve an 80-acre parcel with a road, sewer and water. The land is owned by Wayne Klink, who is donating land for the road and rights of way for utilities. RES Polyflow is going to use 40 acres, leaving another 40 acres for other development, shovel ready, once the infrastructure is built.
Ashley plans to repay the county the $1.5 million at a low interest rate over about 8-9 years. Because of delay in getting tax revenue due to the tax abatement, it will take a couple years before Ashley starts repaying the loan, said town Clerk-Treasurer Karen McEntarfer.
RES Polyflow plans to employ 130 people at its facility. After many announcements for proposed ground breaking dates, Michael Dungan, RES Polyflow director of sales and marketing, said he is confident construction will actually start soon.
The RES Polyflow process converts a wide mix of co-mingled plastic waste into a consistent hydrocarbon. Once online, the Ashley facility is expected to create a new market for the growing stream of complex plastic film, flexible packaging and other low value, non-recycled plastic waste that typically ends up going to landfills or fouling local waterways.
The RES Polyflow plant will convert 100,000 tons of plastic waste into 16 million gallons of ultra-low sulfur diesel fuel and naphtha blend stocks per year. The project is expected to begin processing in 2019. The facility will also produce commercial grade waxes for sale to the industrial wax market.