According to the letter, interconnect agreements with Duke Energy could not be reached in October, but Franklin says a final agreement was reached on Friday, Dec. 11.
Franklin said the changes to the agreements that the council had approved in October would have required additional approvals from the city council and the utility service board and that because of advertising requirements, it would be difficult to acquire the necessary government approvals before December 31.
Franklin references a motion filed by attorney Jim Brugh to “intervene and reverse the ‘already granted IDEM approval’ to conduct test burning of the proposed fuel pellets.” He says because of the move, the company’s rate of return on their investment and their business model could no longer be viewed with any degree of certainty.
He says in a conversation Tuesday night with SG Preston Energy, they informed him that “even though all $300 million in funding was available, they were no longer willing to invest their assets into a city with such a toxic and unwelcoming business environment.”
Franklin said he feels it is in the best interest of the city to terminate negotiations with any and all developers at this time. He says he further recommends that the council officially terminate the RFP process and rescind the authority of the mayor to negotiate a build operate transfer ordinance agreement.
The Logansport City Council’s Utility Committee is set to meet at 4:45 p.m. Friday, followed by a special meeting of the Logansport City Council at 5 p.m.
