WELLINGTON — The Wellington City Council approved the annexation of land east of the city on which a renewable natural gas company plans to build a facility that would create 40 jobs within the first six months of its being built.
The property is 144.5 acres located at the southwest corner of U.S. 160 and Seneca Road and owned by Charter Equities II, LC. This property would be the location of the Verbio North American Corporation, a biomethane plant out of Big Rapids, Michigan.
The development agreement between the city and VNA is for Phase I of a larger project that may be developed over time. VNA agrees to invest $45 million in Phase I with the total amount of project investment to be approximately $150 million.
VNA would receive a tax abatement for 10 years. The council approved the issuance of Industrial Revenue Bonds not to exceed $45 million. An IRB is issued by a government entity like municipal government to a private business which is responsible for repayment. It is tax exempt.
Taxpayers will not be responsible for the bond in any way.
“I want to make that crystal clear,” City Councilman Kevin Dodds said.
The property does not adjoin any existing property located within the city, but it does adjoin city owned property where the city’s gas turbine generator is located. The plan is for the city-owned property to be annexed.
VNA estimates the company will bring an extra $4.9 million to the tax base, and with the 40 extra jobs, 21 new residents to the city.
A public hearing is scheduled for Aug. 20 for approval of the bonds.