Prestage taxes to go to nearby road fixes, wastewater treatment

Monday’s county supervisors meeting continued to illustrate the central conflict of opinion regarding Prestage’s proposed pork processing plant: county officials and citizens who believe the plant will have overall positive effects on the local economy, schools and businesses, vs. citizens who believe environmental damages and other potential negative effects will outweigh any benefits. Use of the taxes that would come in from the plant was another source of conflict.

Of the $2.7 million in taxes that would come in from the Prestage plant each year, about 32 percent will be returned to the company as per the development agreement approved last week. A portion of the remaining funds will go to the protected PPEL and instructional support levies for schools and debt service, and the rest would be used for the Agribusiness Urban Renewal Plan.

“The Urban Renewal Plan allows us to incite economic development activity or rehabilitation activity in this area,” said Bryce Davis, economic development director.

The plan calls for those taxes to go toward transportation infrastructure improvements, such as resurfacing on C56 and Highway 17 from the plant site to the Eagle Grove city limits or a turning lane. Funds will also go toward an extension for the plant to use the Eagle Grove wastewater treatment system and also pay the utility board for improvements.

At current tax rates, there will also be leftover money that can be used for other economic development projects or school improvements, for which the plan can be modified. Out of the $27 million the plant is expected to bring in over 10 years, Davis said they had certified about $13.5 million for the improvements, leaving a good portion for other renewal projects.

Though the taxes that will be used for the Urban Renewal Plan won’t come from county residents, some, like Shannon Walker, Clarion, opposed the idea of any sort of incentive for the processing plant. “If they want to be here so bad, let them pay for it,” she said.

For the full story, see the August 11 edition of the Monitor.