By Myrna Trauntvein
Times-News Correspondent
Phase one of the Moroni Feed/IFA railroad spur,
located just south of Nephi, has proved to be so successful
that phase two and three will be built in the near
future.
Spence Lloyd and Brad Allred, representing IFA, met
with Juab County Commissioners to request the county allow
bonding of the new project using the industrial development
bonding method used to construct phase one.
Lloyd said that authority was granted to allow such
bonding in Utah Code, Title II, Chapter 17, the Utah
Industrial Facilities and Development Act.
"There is no liability to the county," said Lloyd. "We
need an inducement resolution from the county."
In that act, the Legislature declared that the
acquisition or financing, or both, of projects under the
Utah Industrial Facilities and Development Act and the
issuance of bonds under it constituted a proper public
purpose.
The act does allow for the county to back bonding
needed for the expansion of the site used by IFA. It allows
for the issuing of revenue bonds for financing to be used
for the acquisition, construction, and equipping of the
facility.
Before the final resolution is passed by the county,
said Lloyd, the county will be required to hold a public
hearing with 14 days advance notice.
Phases Two and Three will allow further expansion in
the county of the facility which is now used to flake corn
which comes from Moroni feed.
"The additions will allow us to blend, mix, put in
molasses and minerals and get the product to dairies," said
Allred.
Part of the process is now being done at IFA in
Spanish Fork. The various components are now trucked to
Spanish Fork and are processed there and then trucked to the
railroad spur.
"When Phase Four is completed, the whole feed business
will be brought to this county," he said.
The Spanish Fork location, however, will remain viable
and will be used for other purposes, which are also and
important part of IFA.
Under state code, the bonds of the county will "be
secured by a pledge of one or more notes, debentures, bonds,
other secured or unsecured debt obligations of the user, or
such sinking fund or other arrangement as in the judgment of
the governing body is appropriate for the purpose of
assuring repayment of the bond obligations to investors in
accordance with their terms."
Commissioners agreed to support a motion by Robert
Steele, commissioner, to approve commission chairman, Neil
Cook's, signature on the inducement resolution, pending the
review of Juab County Attorney Jared Eldridge.
"The resolution only allows us to begin the process,"
said Lloyd. "We will be back to you for final approval."
Cook said he was excited to see the expansion project
take place and was pleased that the facility in Juab County
had proved to be so successful.
"We appreciate your being here in our county," said
Steele.
|
