Supervisors deny Biodiesel exemption

During the Board of Equalization meeting Wednesday morning, the Gage County Board of Supervisors denied a tax exemption application for personal property of Beatrice Biodiesel, L.L.C.

The property in question is the Biodiesel plant, but not the land.

The real estate will be taxed as normal, Gage County Assessor Patti Milligan said.

Beatrice Biodiesel filed an application on April 30 to allow the personal property on the land to be taxed at $0.

The current valuation of the personal property is $8,419,200, Milligan said.

On Aug. 21, 2008, two years after its groundbreaking, Beatrice Biodiesel filed for Chapter 7 bankruptcy, in which assets are sold to pay debts. The bankruptcy filings were attached to the tax exemption application.

The Beatrice Biodiesel plant is a $50 million investment which, if running, is capable of producing 50 million gallons of soydiesel fuel per year.

On March 3, 2006, Beatrice Biodiesel, a subsidiary of U.S. Canadian Biofuels, Inc. and Australian Ethanol LTD, announced intentions to build the $50 million facility in Industrial Park.

Due to lack of remaining funds, the plant shut down several weeks prior to its completion.

In their bankruptcy filing, the plant listed an estimated 100-199 creditors and liabilities between $10-$50 million.

About 20 companies and businesses filed more than $3.8 million in liens against Beatrice Biodiesel for unpaid services.

Control of the plant was handed to AgStar Financial Services due to the liquidation bankruptcy.

The plant was completed in March of 2008 but was never up and running.

In the Wednesday meeting, Supervisor Gary Barnard said he felt uncomfortable dismissing personal property taxes that could bring the county $250,000 in tax revenue.

Supervisor Dave Anderson agreed.

“That facility has been out there in progress for at least a couple years.  There’s been fire protection, police protection, workers out there, kids have been going to school. Somebody is going to buy that at some point and hopefully make money on it,” Anderson said. “Perhaps a lot of money on it, we don’t know what the energy sector’s going to do. It just seems imprudent of us to just dismiss it because somebody is having a rough go.”

Alan Slattery, with Rembolt Ludtke Law Office of Lincoln, represented Beatrice Biodiesel at the equalization meeting.

Slattery said, based on state statute, the property, which has never been used to make a profit, should not be taxed.

The property, he said, has never been tested and cannot even be said to be working at this point.

“The statute’s pretty clear that this property is exempt from tax,” he said.

The board unanimously dismissed the exemption application.

In other news:

—The Board of Equalization held a public hearing on tax exemption for $500 of a 2009 Dodge Ram 2500 Pickup, owned by Mosaic. The board approved the exemption unanimously.

—Ehme Gronewold of Pickrell and Arnold Buhr of Beatrice voiced their opinions on the recently mailed land valuations. “People can’t afford to keep their land because their taxes are so high,” Gronewold said. Chairman Rex Adams said that the board and Gage County Assessor Patti Milligan cannot control the valuations, but as budget time approaches July 1, the board will work on the cost of government to help lower some of the taxes, if possible. Buhr said he didn’t like that wages and benefits paid by the tax payers are going up in county offices. He said he appreciates the need for higher wages to equalize people in the courthouse, but does not appreciate using taxpayer money when taxes are hard to pay. Buhr said his taxes increased 20 percent with the recent valuation.

—Per recommendation of Assessor Patti Milligan, the board disapproved an exemption application for Stickney’s Toy Breed Rescue of Cortland. Milligan said the land was in a person’s name with no 501(c)3, or non-profit organization, status attached. No representatives for the business attended the hearing, though given prior notice.

—Supervisors approved the recommendation by the State Liquor Board for a special designated liquor license for the Grandstand and beer garden at the Gage County Fair, July 22-26. The motion passed 5-2, with supervisors Byars and Shirley Gronewold against. Both stated they disapproved of funding an event directed at children with alcohol consumption.

—Glenn Schwab with AFLAC updated the supervisors on the AFLAC 125 Plan, which would allow for tax exempt dollars to pay for out of pocket medical expenses. All county employees are eligible.

—Lori Warner, Beatrice Area Chamber of Commerce president, presented grant information for the courthouse holiday lighting project, which was asked for by the courthouse lighting committee.

Warner said the grant would fund up to $5,600, with Gage County matching the funds acquired from the grant. The grant and matched funds would cover the removal and replacement of light bulbs during roof replacement  and replacing all lightbulbs with resistant, longer-lasting LED lights, which will also lower utility costs. The total project is expected to cost $11,900.

—Supervisors approved a cooperative reimbursement agreement for Child Support Services 7-0.

—Tara Kuipers of the Gage County MAPS coalition and Gage County Sheriff Millard “Gus” Gustafson discussed a grant they’re seeking from the Nebraska Department of Roads Flex Fund. The grant would free up dollars from the Nebraska Department of Highway Safety for Sheriff’s Office mini-grants.

Gustafson announced an $1,800 mini-grant to step up law enforcement during the upcoming weekend.

—The board approved donating a box van on the Emergency Management inventory to the Jefferson County Sheriff’s Office. Barneston Fire and Rescue recently donating a box van to Gage County, and the vehicle became surplus.

—The board approved the bid for all remaining courthouse renovations from Cheever Construction at $2,145,000, a 10 percent mark-up on change orders and 360 working days until completion. Five Star Construction of Beatrice had the second lowest bid at $2,180,000, a 15 percent mark-up on change orders and 540 working days until completion. Hausmann Construction of Lincoln had the highest bid with $2,235,000, an 18 percent mark-up on change orders and 480 working days until completion.