Pekin took the first step Monday toward the possible construction of an estimated $550 million methanol plant at 300 Hanna Drive in the Riverway Business Park.
The Pekin City Council voted 5-2 to approve giving Ambient Fuels of New York, N.Y., the opportunity to purchase about 47 acres of a 57-acre site from the city for the plant. Ambient plans to use ethanol, carbon dioxide and green energy like offsite solar to manufacture methanol with a lower carbon footprint than traditional plants.
Ambient has a two-year option to purchase the 47 acres for $1 million. The company will make quarterly payments to the city of $7,500 in the first year and $16,750 in the second year while its doing its due diligence for the plant.
These payments will not be part of the purchase cost.
The appraised value of the property is $20,374 per acre. Ambient would be paying $21,276 per acre.
City economic development director Josh Wray said Ambient is seeking TIF funding for development costs and approval of zoning requests, and could terminate the option agreement if those requests are not met.
Post-development, Wray said, the plant would generate an estimated $16.5 million in new property tax revenue that would go into the Southern Industrial Park TIF District Fund. After the TIF ends, the city would receive about $1.65 million annually in property tax revenue.
Emily Wolf, senior director of development for Ambient, told council members by speaker phone that about 25 head-of-household jobs would be created by the plant in addition to 50-100 temporary jobs during development and construction.
Wray said Ambient will bring in carbon dioxide through a 4-6-inch transmission line, and not send it out for sequestration, which is a community concern.
"Staff isn't concerned about Ambient's plans for carbon dioxide transmission," Wray said, adding that there are carbon dioxide transmission lines in the vicinity of the plant site.
Lloyd Orrick and Rick Hilst voted against the option agreement.
