In deals kept under wraps for almost two months, the builders of a proposed $120 million ethanol plant in Conoy Township have pledged hundreds of thousands of dollars to the local fire and police departments if the plant is built.

In the signed agreements, the Bainbridge Fire Company and the Susquehanna Regional Police Department agreed not to oppose the conditional-use permit sought by Lancaster Biofuels, although the fire company reserved its right to review the plant's fire and safety plans.

No one is saying the deals are illegal, but questions are being raised about why the agreements were kept secret for so long. Critics say it adds to the sentiment of those who feel the supervisors' decision to approve the plant was influenced by money.

The agreements were signed several weeks before the supervisors voted 3-2 in favor of the plant on March 13.

The agreements drew mixed responses today from opponents and backers of the ethanol plant.

Judith Nissley, co-owner of Nissley Vineyards, which this week appealed the township's decision in county court, said, "From the standpoint of the conditional-use hearings, they were backroom deals. They never reported at the meetings that those agreements were made."

She said the agreements strengthen the case that Conoy supervisors were influenced by money.

But supervisors Chairman Stephen Mohr this morning denied any irregularity.

"There wasn't talk among supervisors about who is going to get the most dollars," he said. "Our legal advisers and both of our engineering firms all said positively that Lancaster Biofuels met all the requirements of the conditional-use permit."

Although Lancaster Biofuels' commitment to pay Conoy Township an estimated $450,000 a year in payments in lieu of taxes was made part of the written decision on March 13, no mention was made at any public hearing of the pledges to the fire and police departments.

That was because the deals were negotiated separately by the two groups and not by Conoy Township, says Matthew Creme, township solicitor.

However, Jill Nagy, a Berks County attorney hired by the township as special counsel and "township advocate" in the ethanol proceedings, served as negotiator for the fire and police departments in their talks with Lancaster Biofuels.

When a New Era reporter requested the agreements two weeks ago from Supervisor Mohr, he said he would get them from Nagy. Several days later, Mohr said he was advised by Creme that they shouldn't be released until the deadline for an appeal had passed.

Creme denies that he told Mohr not to release the agreements. "I did tell Mohr they were not public documents. I did not tell him not to release them," Creme said. "They are not township documents. The township doesn't even have a copy."

In its court appeal of the township's conditional-use permit, Nissley Vineyards argues that one ground for overturning the decision is that the supervisors engaged in "contract zoning."

The supervisors "...approved the application solely in exchange for payments not otherwise required, and not related in any way to any mitigation of impacts imposed by the proposed ethanol plant," the appeal states.

Nissley said this morning that the disclosures strengthen the case of the appeal.

"I can understand the fire company wanted a separate agreement because the last time with the incinerator they were left out of the loop," Nissley said. "But I don't understand why it wasn't made part of the conditional-use process. Why was it not part of the record? (The fire and police departments) are a public service.

"I think the fire department acted in good faith, I think the supervisors acted in good faith. At some point along the way things started happening in secret &tstr; that's what I object to," Nissley said.

Mohr said today that even though the supervisors had sent attorney Nagy to negotiate for the fire and police departments, the board was not involved in the agreements.

He said the fire and police departments probably did not reveal the deals to the public before the decision on the plant because "they did not want to influence votes.

"People have to realize everyone was looked out for in this project," Mohr said. "The idea is to look out for yourself and that is what we did. We made sure everyone in Conoy Township, whether fire people or police or just a citizen, that their thoughts and concerns were entered into it."

He said Lancaster Biofuels agreeing to provide the departments with training and updated equipment only "makes common sense" since the corn distillery presents special needs for security and public safety.

Seth Obetz, Lancaster Biofuels president, released copies of the agreements, on request, Thursday afternoon. He said he had told the fire and police officials it was up to them to release details of the agreement. "I didn't want to take credit for it," he said.

He said contributions would go to the fire and police departments because "we don't want to be a financial imposition to them."

Voluntary payments to the police and fire departments &tstr; and $450,000 a year to the township for payments in lieu of taxes &tstr; are in addition to required school taxes that might approach $500,000 annually, as well as $100,000 a year in county taxes.

Obetz noted the Lancaster County Solid Waste Management Authority provides more than $650,000 a year to Conoy Township in host fees that enable Conoy to be one of just four townships in the county without a real estate tax.

"We are pleased to be able to provide these significant levels of support and look forward to also being a supportive member with other community organizations," he said.

Bill Rhoads, a director of the fire company, said it is unfair to suggest the fire company was bought out.

"The fire company took a very neutral stance in this whole thing. In case of fire, we pretty much told them if you're going to build this facility, then we have to have some training and some equipment that is special to your facility."

Ed Haugh, chief of Susquehanna Regional Police, said he was grateful for a "windfall" to put computers and other updated communications in police cars. He said other businesses contribute to the police department. "It saves taxpayers money."

MONEY PLEDGED BY ETHANOL BUILDER

• $450,000 annually to Conoy Twp. for payments in lieu of taxes.

• $120,000 for special firefighting equipment and training, and $60,000 per year to Bainbridge Fire Company.

• $8,000 per year for improved in-car communications to Susquehanna Regional Police.


Staff writer Ad Crable can be reached at acrable@LNPnews.com or 481-6029.