Indeck gets approval from Michigan Strategic Fund for tax capture

Published 11:52 am Thursday, January 4, 2018

Indeck Energy will invest nearly $1 billion in capital investment. This article has been corrected.

NILES — By this summer, officials behind the Indeck Niles Energy Center are expecting to host a ground-breaking ceremony, launching construction on the proposed 210,000-square-foot energy center at 2200 Progressive Drive in the Niles Industrial Park Area.

Throughout 2017, the company took strides in further developing these plans, clearing another big hurdle at the end of December when they received final approval from the Michigan Strategic Fund for $34,800,264 in local and school tax capture for the city of Niles Brownfield Redevelopment Authority to conduct remediation activities, such as demolition, removal of debris and site preparation.

Indeck officials reported to the city in June that four parcels of land between Progressive and White streets are contaminated, making the land a Brownfield. Energy company representatives told city council members that contaminants can be traced back to the property’s former use as a railyard. The operation used foundry sand, which is now known to contain heavy metal contaminants.

In regards to the approval from the Michigan Strategic Fund, Barkley Garrett, the Southwestern Michigan Economic Growth Alliance executive director, said he and partners with the state were happy to see the Indeck project take another big step forward.

“We are very pleased with the decision,” Garrett said. “I think a number of factors came into play [for the approval]. Obviously, it is a wonderful project for the city and the community in general.”

Garrett said he expects Indeck to bring good things to the city of Niles, including new jobs and nearly $1 billion in capital investments.

“It’s something new and different that we don’t have in our community,” Garrett said.

He also touted Indeck Energy as a “clean fuel technology,” which he said will be in demand in the years to come. The company claims on its website to produce 50 to 90 percent fewer emissions than traditional coal-fired plants.

While Indeck has twice proposed projects at the site in Industrial Park — both of which fell through — Garrett said he does not feel any apprehensions about the project falling through a third time.

Factors, such as a spike in the prices of natural gas were among the reasons for the former project’s collapse, which Garrett said the company could not control.

Michael DuBois, the vice president of project development for Indeck, said 2017 was a year of marked progress in the project’s development.

In an email, DuBois said only minor permit approvals are needed to move the construction phase of the project forward.

“All major approvals have been received from the city of Niles,” DuBois said. “Our construction contractor will secure minor permits as part of their normal construction process.”

The natural gas to energy plant is expected to generate 1,000 megawatts of electricity — enough power for about 635,000 homes — to residents across Michigan and the surrounding states, as well bring about 300 to 600 jobs during the three-year construction phase. While in operation, 21 full-time jobs are expected to be available.

In the months to come, DuBois said residents can expect to see the beginning phase of construction manifesting at the site.

“We will have up to 600 craft employees working at the project site,” DuBois said. “The primary entrance for employees will be off Korn Street. The first 12 months will be earthwork and equipment foundation installation. Major equipment deliveries will occur in 2019.”

When asked about how the company will work to be transparent with the Niles community, DuBois said the company intends to communicate project impacts with the city administration. Additionally, he said the leadership hopes to host meetings, where community members will be welcome to ask questions. He also said they hope to engage area youth by providing tours to those interested in learning about power plant operation or construction.

DuBois advised those interested in learning more to visit the Indeck Niles webpage at indecknilesenergycenter.com.