The Cass County Boards of Supervisors this (Friday) morning, held a public hearing on a proposal to enter into a General Obligation County Purpose Loan Agreement, and to borrow money in a principal amount not the exceed $4.5-million, with regard to infrastructure improvements for the Elite Octane, LLC ethanol plant currently under construction. There were no comments received from the public.

Afterward, Auditor Dale Sunderman said the County’s financial advisors said there’s good news with regard to interest rate and that the county may not need to seek the maximum $4.5-million previously discussed. That’s thanks in-part to a RISE (Revitalize Iowa’s Sound Economy) Grant the County has received from the State.

He said with the RISE grant and the low bid on the construction project, the County may need to only borrow $2.76-million General Obligation. Also, with projected interest rates at 1.72- to 2.53%, the County will be able to pay off the loan in 10-years.

The $2.76-million does not include the greywater installation from the City of Atlantic’s Wastewater Treatment Plant, the bid for which won’t be available until July 21st. It would include the road projects we’ve previously mentioned (Echo, Buck Creek and Glacier Roads). It would also not include any contingencies, which is why the Supervisors provided their verbal approval to enter into the agreement. The agreement will be formalized soon after the greywater bids are received, and that part of the project awarded to a contractor.

Regardless of the actual final amount of the G-O loan request, it will be paid for through Tax Increment Financing (TIF) derived from future taxes paid by the ethanol company, Elite Octane, LLC.  The tentative timeline for the project and financing are as follows:

July 20^th – Bids for greywater construction project received; July 24^th – Borrowing amount finalized; August 9^th – Final terms and bond purchase contract presented to the Supervisors for approval.

In other business, the Cass County Supervisors approved the renewal of a 28-E cost sharing agreement with the City of Anita for mutual aid law enforcement support provided by the Cass County Sheriff’s Office. The current four-year “Uniform Patrol Service Agreement,” as it’s known, expires June 30, 2017. The renewed price for the service is $67, 547 with a three-percent per annum increase. The County has a similar agreement with the City of Griswold for law enforcement support.