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Ethanol plant asks for help

By Sara Quam
Odor is still an issue for the Luverne ethanol plant, and its manager, Rick Serie, hopes the city can help change that.

While Agri-Energy has reduced odor emissions by installing a scrubber in the dryer stack and by increasing the height of the stack, residents still donÕt like what they smell.

Serie spoke to the Luverne City Council Tuesday to explore whether the city could help Agri-Energy with costs for a thermal oxidizer, which would make the odor all but disappear.

"We truly believe that the correct fix is to install a thermal oxidizer, which they did in St. Paul. It would eliminate 99.5 percent of the odors," Serie said.

At the most recent meeting of Concerned Citizens for Quality of Life, Serie said he would speak to the council.

Serie said he was on a "fact-finding mission" to help gauge whether he should pursue help from the city. He said the low-interest loans cities have access to would be one option he'd like.

Serie said, "It would help us in our decision-making process if we knew what the city would be willing to do."

Council members didn't make any promises but are interested in the prospect of the odor being eliminated. City Administrator Matt Hylen will research what the city could legally do if council members voted in favor of financial assistance.

Councilman Keith Erickson said, "I really do think that we should show support. We need to be creative to see how the city can help."

Whenever tax money is used for business projects, laws limit cities in their scope. New jobs or increased future tax revenues are usually tied to tax money going to businesses.

As far as council members or city staff could tell Tuesday, quality of life or future residential lot sales arenÕt allowable conditions to loaning or granting businesses money.

The thermal oxidizer comes with a price tag of almost $1.5 million. CCQL member Bob Kaczrowski said the city was involved with the plant from its founding in Luverne and should stay involved.

"I think the city is doing a real disservice to the community if something isnÕt done with the odor issue," Kaczrowski said.

Although oxidizers have been around in other production plants, they are relatively new to ethanol.
"This is the ultimate fix, basically," Serie said.

Serie said that the ethanol plant could probably get its own financing for the oxidizer but that the city's access to lower interest rates or grants would make better sense for the business.

"We've come off an extremely good run, but we're down to where itÕs getting pretty tight," Serie said. "Ethanol follows gas prices, and they're going down."

Councilman David Hauge said that the business might have thought ahead and during high profit times invested in the oxidizer.

Serie said, "It's not like we haven't been proactive. We've put a lot of money into solving the odor issue."

The St. Paul ethanol plant was turned down by the City Council and the state of Minnesota for funding help with its oxidizer earlier this year.

Wine tasting events
The City Council regularly approves one-time liquor permits for the Blue Mound Wine Club. In order to let the council know more about events it approves, Christy Hess, wine club founder and leader, presented a summary to the council.

"It's been a wonderful experience," Hess said.

The events are sponsored by city-owned Blue Mound Liquor, where Hess is employed.

Mayor Glen Gust said, "I've heard numerous compliments about Christy and the club itself."

The club was started to familiarize people with different wines and offers them a chance to sample without purchasing an entire bottle.

Each wine tasting event at the Coffey Haus is pre-sold at a cost of $7. It includes six or seven wine samples, cheese, bread, crackers and a dessert. Wine company representatives are at the events to answer questions or give advice.

The guest list for the wine tasting events has increased from an average of 24 the first year to 40 at the last event.

The tasting events have helped sales, too. The first year of the wine tastings, sales increased 5 percent, but as of November of this year, Hess said wine sales are up 15 percent.

Hess said the liquor store has changed the display system so people can find wines more easily. And the store has started shelving the wines on their sides so corks remain moist, which wine connoisseurs appreciate.

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