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Charles Mix County board approves memorandum to enable revenue bonds for proposed Platte ethanol plant
Summary
Commissioners adopted a resolution authorizing a Memorandum of Agreement with Progressive Energies, LLC, signaling county willingness to act as conduit for up to $20 million in revenue bonds to finance an ethanol plant project; the agreement requires later bond terms, matching approvals and a lease or purchase agreement with the company.
The Charles Mix County Board of Commissioners voted Sept. 3 to approve a resolution authorizing execution of a Memorandum of Agreement with Progressive Energies, LLC, laying groundwork for the possible issuance of revenue bonds to finance an ethanol‑plant project in the Platte area.
Under the action, the county said it would issue one or more series of revenue bonds under South Dakota law to finance project costs currently estimated not to exceed $20 million, and authorized county officials to execute the memorandum that describes mutual commitments. The company agreed to pursue purchasers for the bonds and to enter, when required, a lease, sale or financing agreement that will obligate it to make rental or other payments sufficient to service the bonds.
The memorandum adopted in draft states that issuance and sale of any bonds, and the final lease or financing terms, are subject to further mutual agreement and certain conditions, including a deadline for the parties to reach mutually acceptable terms. If those conditions are not met within the agreed period, the memorandum permits termination and requires the company to reimburse the county for any direct out‑of‑pocket expenses incurred at the company’s request.
Commissioners said the authorization is an initial, nonbinding step that enables further negotiation; it does not itself sell bonds or obligate the county to repay them from general funds. The memorandum and accompanying resolution record the county’s intent to aid a private project by making revenue bond proceeds available and to follow state statutory processes for conduit bond issues.
Board records show the resolution and memorandum were approved on a recorded vote. The board asked county counsel and counsel to the company to finalize details of the agreements and to return for later approvals, including any required findings, bond documents, and approvals by outside counsel and state agencies.
Next steps recorded in the minutes included drafting and execution of the definitive lease or financing agreement, securing purchasers for bonds, and any required federal or state approvals. The board’s action was accompanied by presentation materials and a draft memorandum that outline the parties’ responsibilities and the county’s intended role as issuer/conduit.
The commission’s adoption concluded with direction to keep final bond documents and any future public notices or hearings transparent and publicly recorded. No bond sale or financing closing was recorded in the minutes; those steps will require additional board action and documentation.