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Chickasaw County reviews Homeland Energy expansion; board to consider urban renewal plan to enable TIF
Summary
Homeland Energy Solutions presented a proposed $40M expansion that would raise corn purchases and local tax revenue; the company asked the board to authorize development of an urban renewal plan that could allow project-specific tax increment financing (TIF). Board delayed final action pending legal review.
Beth Hyler, chief financial officer of Homeland Energy Solutions, told the Chickasaw County Board of Supervisors on Oct. 14 that the ethanol plant has grown since it began production and is seeking county authorization to develop an urban renewal plan that would permit project-specific tax increment financing (TIF) for a roughly $40 million expansion.
Hyler said Homeland is owned by about 1,250 members, many local farmers, currently employs 67 full-time workers and asked the board to authorize plan development so the company and county can negotiate possible TIF terms. She told the board the expansion would increase the plant’s permitted capacity under its Iowa DNR approvals and would raise local demand for corn by about 12,000,000 bushels annually, increasing tax revenue that flows to multiple taxing bodies, including school districts.
County staff explained a project-specific TIF differs from a broad urban renewal district: a project-specific arrangement would tie reimbursements to the actual incremental tax revenue produced by the expansion, would not be used for school debt service, and would be structured as a contract for a fixed period. Hyler and staff discussed a company request to consider up to a 90% capture of incremental tax over 10 years as one negotiating point; presenters emphasized the resolution before the board would only authorize development of a renewal plan and not commit the county to any TIF payments.
Supervisors pressed for additional detail and legal review before committing. County counsel urged negotiations with general services and the county’s attorney, and several supervisors said they wanted specific cost, notice and contract terms hammered out before taking action. The board agreed to return the resolution to the next agenda after staff and counsel have had the opportunity to review details and consult with the company.
The board took no final TIF vote at the Oct. 14 session. Hyler said Homeland’s consultant can prepare legal documents and that further fiscal-year assessment timing would affect when any incremental taxes become payable once a project is completed.
