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St. Louis Post-Dispatch

Lee Enterprises

Tuesday, August 12, 2008 3:11 PM CDT
Mattoon backs Coles Together on FutureGen land deal

By HERB MEEKER, Staff Writer
hmeeker@jg-tc.com

MATTOON — City commissioners voted Monday to seek a letter of credit for backing the $3-million FutureGen land purchase commitment of Coles Together.

But city officials emphasize this action will not reach into taxpayers’ pockets. Coles Together, which has pledges from donors, needs this backup to meet the deadline for exercising options this week on purchasing the land for the FutureGen power plant site this year.

“The funding is fairly secure so the city won’t be out of $3 million with this agreement,” said Mattoon City Attorney and Treasurer Preston Owen before the votes on the standby letter of credit resolution with First-Mid Illinois Bank and Trust and intergovernmental agreement with Coles Together on Monday morning. Action on the sale options is expected at mid-week.

Mayor Dave Cline said this is another step toward making FutureGen a reality.

“This is one of the more postive steps forward the city is taking on this project to see it completed here,” Cline said after the unanimous vote for both the letter of credit and intergovernmental agreement with Coles Together. “Nothing will be coming out of city coffers for this. We are putting our faith in the people who have pledged to support it.”

The action is much like a private party co-signing on a loan since Coles Together has received $3 million in pledges to exercise legal options on the 440-plus acres of land for the plant site west of town.

FutureGen Alliance, a group of coal-related corporations across the globe, will pay $3.5 million as its share of the land purchase to bring the coal-fueled, near-zero emissions electrical power plant to Mattoon. Coles Together has not yet collected on all its pledges so this allows the deal to move ahead now.

Right now, all supporters of the energy project are waiting on a change in the White House administration. Earlier this year, Department of Energy officials scrapped the project for Mattoon and proposed a new plan calling for multiple smaller sites for perfecting clean coal technology with the use of underground storage of carbon dioxide emissions.

Local, state and federal officials have opposed the DOE plan. Illinois lawmakers in Washington have secured the status quo on FutureGen funding for now to help the project move forward.

Griffin said both presidential candidates have expressed support for clean coal efforts.

Still, there are concerns on what happens next year. If federal backing does not materialize for the FutureGen site here, the land will go back to Coles Together for about three years to market for other projects, officials said.

Contact Herb Meeker at hmeeker@jg-tc.com or 238-6869.

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Harry Potter wrote on Aug 12, 2008 7:44 AM:

" I'm willing to bet this will be another one of those deals like the county board buying the old bank building in Charleston for several hundred thousand dollars, then tearing it down and allowing it to turn into a weed infested eyesore. When it comes to making money decisions, watch out for the politicians! LOL! "

Old Grumpy wrote on Aug 12, 2008 9:45 AM:

" Hold on to your wallets Mattoon. If Coles Together had the money they would not need co-signers. I see a lot of potential problems here.

If someone backs out on their pledge Mattoon residents will have to pick up the tab.

If federal backing does not materialize the land goes back to Coles Together to market for other projects.

Try out this scenario, let's say one or more of the pledges back out on their parts. The City of Mattoon as co-signer has to come up with the cash. Now the federal backing does not come through so Coles Together gets the land. After a couple of years without being able to interest anyone in buying the expensive property Coles Together decides to sell the ground for a land-fill or maybe a mega hog farm.

Would Mattoon citizens be able to get their money back if FutureGen is really dead? If federal backing does not come through and Coles Together ends up with the property would Mattoon have any say on what goes up on the property? Just how much of their part of the 6.5 million has Coles Together raised? How solid are these pledges?

With the City crying about being broke where are they going to get the millions pledged to the Mall and to Coles Together? More taxes? Less services? This Council appears to be signing away the City. When this house of cards comes apart look for property tax increases and sales taxes to go up. By the time this Council is through Mattoon will be so far in debt our grandkids will be paying for it when they turn 50. If we are smart we will advise them to move away from Mattoon when the get out of school.

I was born in Mattoon and I have lived here all of my life so it really hurts to see this bunch run the City into the ground. Does anyone know if a City can be repossessed? "

The Question wrote on Aug 12, 2008 12:13 PM:

" Harry and Grumpy both make good points. How about some journalism that really examines the details of this deal before taxpayers get stuck holding the bag yet again? "

Don G wrote on Aug 12, 2008 9:27 PM:

" I certainly agree with you on this point Harry, Sounds just like the bank deal.
Pay way over market price, and then get stuck and no matter what they say, taxpayers foot the bill. By co-signing this loan, they have put the name of every taxpayer in their district on it.
One thing I dont understand tho is, why do they have to get this done before these supposed "options to purchase " expire? Is there someone else standing in line waiting to pay 3 or 4 times the market value for this ground?? What is wrong with just waiting till the first of the year and see if the Appropriations committee has a change of heart on this matter?..Hmmmm... If the First mid bank, who surely understands risks better than our council, wants a co-signer, then it is because they are not foolish enough to finace the deal in case the Alliance goes to pot, which will happen of course if the federal money does not come thru. Since at the present time, the energy sub-committee of the senate appropriations committee has denied the billions of subsidy dollars the Alliance has requested, my bet is it will never happen. No matter who wins the white house, The Appropriations committee and the sub comittee will likly not change after the election member wise. It is entrenched with the leftist "No Energy" leaders and for what ever reason these people have denied any kind of increase in the supply of energy for the American people. Even the current president cannot make them budge, I don't see how the next one will be able to. Further more, if Obama get the whitehouse, he is the least likely to go against Pelosi and Reids policies, since he will owe them the most for his new digs.
Personally, I am really glad I moved out of Mattoon 12 years ago because this looks really bad for my friends and the taxpayers of my old hometown. "

The Question wrote on Aug 13, 2008 9:27 AM:

" Great nonsensical spin there, Don. But FutureGen was killed by Bush's Energy Department because the billions weren't going to Bush's crooked corporate pals in Texas. They called Mattoon a "swamp." Did that slip your mind? "

coonbug wrote on Aug 13, 2008 2:21 PM:

" We've got money to buy more land but we can't afford to MOW THE LAWN? "

Don G wrote on Aug 15, 2008 9:53 PM:

" TQ....
""" Great nonsensical spin there, Don. But FutureGen was killed by Bush's Energy Department because the billions weren't going to Bush's crooked corporate pals in Texas."""

I know that this is mistaken opinion is not yours alone TQ...But I followed the FutureGen hearings by way of the senates web site...watched every hearing and read every testimony. So I tell you what I write is not spin....it is what I see in the records and vote counts. I have tried to get you and others to read the facts as represented at the source, but you, and so many others simply dont want to believe it so you wont go and look for yourself. Until you do, you are not qualified to discuss it with me, or any one else who has read the records. "