Last OK awaited for loan to buy land

By D.a. Wilkinson

A state spokesman said the loan approval could come by spring.

SALEM — The Columbiana County Port Authority has cleared another step in its plan to buy land for a facility that would turn coal into liquid fuel.

A $4.5 million loan has been approved by the state Development Financing Advisory Council with the support of Gov. Ted Strickland and local legislators.

Tracy Drake, authority chief executive officer, said Tuesday he was trying to determine when the last approval would occur.

The Ohio Controlling Board will have the final say.

The controlling board is to meet Feb. 9, but the $4.5 million loan request is not on its agenda for that meeting.

Robert Grevey, a public information officer for the Ohio Department of Development, said approval could come “sometime this spring.”

Drake had said in early January that the state had $4.5 million for land acquisition and was told by state officials to apply for all of it.

In a release, state officials said the loan is in support of acquisition and site preparationto cost $91 million that would create 135 construction jobs at the site.

Baard Energy of Vancouver, Wash., wants to build the fuel facility near the Ohio River at an estimated cost of $6 billion. The fuel can be used by military aircraft.

Plant construction, which would take several years, would employ several thousand temporary workers and several hundred permanent workers.

The first step expected to begin this year will be to level a hill on the west side of state Route 7 in Wellsville.

The Baard project is expected to require about 600 acres at the site, but other businesses may be attracted to additional acres. The process of turning coal into fuel would also produce electricity for sale. The port authority has been considering the financial and legal structure to do that.

Drake said that if the project is funded and meets certain criteria, the state could forgive repayment of the loan.

wilkinson@vindy.com