Council sets March 25 public hearing for Hobo Renewable Diesel development agreement after presentation of site, jobs and infrastructure commitments

The Clinton City Council on March 11 voted to set a public hearing for March 25 on a proposed purchase, sale and development agreement with Hobo Renewable Diesel LLC ("HOBO"). The resolution fixing the hearing date was moved by Council member Sealy and adopted by roll call.

City staff summarized the proposed project and the development agreement during the meeting. Key points presented to the council:

- Parcel and site: HOBO's primary parcel was described in the presentation as roughly 21.14 acres within a larger development area that the presenters said totals 121.14 acres. The purchase price cited in the presentation was about $32,900 per acre for the parcel(s) discussed. Option payments paid to date were noted and would be applied toward the sale price at closing.

- Infrastructure commitments and reimbursements: The developer would fund and deed more than $4 million of public rail improvements to the city, complete concrete work on 30 Sixth Avenue South and asphalt South 50 Fourth, and provide $330,000 toward a sewer line that runs along the project area. The developer's option and escrows include staged payments and a required escrow deposit of $3,000,000 within 90 days of closing for specified infrastructure work.

- Project scale, timing and jobs: Staff said the HOBO facility would produce a biodiesel blend (described in the presentation as a 20,000,000-gallon-per-year capacity). The presentation cited an initial 42 jobs with a target of about 70 employees in a short horizon. Presenters also discussed a tentative timeline tied to Iowa Economic Development Authority (IEDA) approvals: an IEDA high-quality-job (HQJ) designation and board action would be required (staff noted an IEDA board meeting on July 18); additional IEDA steps were cited with an execution contingency by October 20 and a closing deadline of December 31 (dates in the development agreement are conditions precedent and would require modification if not met).

- Public incentives and assessment: The presentation described a minimum assessment agreement and a 20-year, 80% value capture for certain incentive calculations; staff said more detailed tax-rebate mechanics would be applied after final certification of assessed value.

City staff said the council would have a fuller opportunity to question project principals and lenders at or before the public hearing; staff indicated Mike Kois and Randy Gibbs (project backers) would be available online for further questions on March 25. Council members praised staff and private partners for persistent work to reach this stage but emphasized the number of remaining conditions and the need for the council to review the final development agreement in detail.

The resolution setting the hearing passed by roll call; the public hearing is scheduled for the council's March 25 meeting.