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TAMA NEWS-HERALD-

Tama City Council members were asked Monday night in a letter received by Mayor Chris Bearden to endorse an application for up to $520 million in bonds to pay for "acquisition, development and construction of the fully integrated bio-energy campuses in Dexter and Tama." Similar endorsements are being sought from Tama County and the State of Iowa according to the letter.

No action was taken Monday night.

The letter was from Alpha Holdings CEO Christopher Miller, the Reno, Nevada, developer who proposed the 2006 ethanol plant.

Tama Ethanol LLC was formed in 2006, broke ground in December just east of Tama and promptly became dormant, at least on the surface. The plans for a $50 million ethanol plant grew that year to a cost of $165 million.

Much of the language of the letter is in legal or financial terms. Sought is adoption of a "resolution of inducement." The letter explains Tama and the State of Iowa are "conduits."

The request emphasizes "the City of Tama and the State of Iowa will not be incurring any debt or liability in this transaction."

Detailed plans for the new venture were not made known in the documents released Monday night. However, Bearden said the operation here would involve manufacture of nine bio-energy products. He also said the Tama location is expected to be bigger in scale than Dexter due to location and railroad service factors.

The documents made public Monday said the Tama project will involve 409 acres along the south side of present U.S. Highway 30 between L and M avenues. This is consistent with the area Tama Ethanol originally "staked out" in 2006. At Dexter, 119 acres is involved mainly in Dallas County.

Both the Tama and Dexter locations will produce "food for human consumption, high protein animal feed, ethanol, corn germ, corn bran, corn oil, high protein DDG, ethanol-related products, algae, CO2, celluloses ethanol and bio-diesel products"

Bearden said such an investment in Tama is unprecedented and holds vast opportunity.

Tama Pack

He said if the former Tama Pack were to reopen, the bio-fuels plant would be able to use animal wastes from the packing plant which would result in eliminating the need for the present lagoons.

Bearden said in reaction to the current problems in the ethanol industry, the original plan for Tama Ethanol LLC had been reworked.

Miller, Alpha Holdings head, will be asked to present more details of the plan to the city council, Bearden said.

In other business Monday, the council:

voted 5-0 to accept the deed to a property at 505 Harmon which had been held by Noah and Amanda Morrow. A determination by Kent Scheid, building and zoning administrator, will be made wether to rehabilitate the home or demolish it.

tabled for a second time a request from the Tama-Toledo Fraternal Order of the Eagles to remove a portion of bricks and a flower planter in front of the club on East 3rd Street.

approved the reappointment of Sally Willett to a six-year term on the Tama Library Board.

approved rental of a "Jet Vac" machine for use in July to clean pout storm sewer basins at a cost of $3,000 for a 30-day period. Stuart Eisentrager, street superintendent said it takes at least two years to manually clean all of the basis.

approved a liquor sales license renewal for Aqui Te Espero Bar and Grill.

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