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June 26, 2005Manistee woes aside, Tondu eyes Indiana facilityByRecord-Eagle staff writer TRAVERSE CITY - Tondu Corporation has set its sights on a small town in Indiana, even as a legal struggle mounts over a coal-fired power plant the company proposed for the shore of Manistee Lake. Tondu proposed a coal gasification power plant for New Carlisle, Ind., a town of 1,500 and a bedroom community of South Bend. Steven Hora, New Carlisle town council president, said he's aware of the controversy sparked by Tondu's effort to build a plant in Manistee and the $810 million lawsuit Tondu filed against Manistee after the city rejected Tondu's proposal. "At this point right now, our whole council has not taken a position because we don't have all of the information yet," Hora said. Hora said he's obtained little information from Manistee or Tondu about what happened in Manistee, but plans to contact people in other communities where Houston-based Tondu has done business. "Nobody's talking, because of the lawsuit, so we don't know what happened there," Hora said. A message seeking comment at Tondu was not returned. A recent filing in Tondu's suit against Manistee shows Tondu's expert revised damage estimates from $810 million to $59.5 million. The damage estimate represents money Tondu believes it could have made if they had been able to build the plant. In New Carlisle, Tondu proposed a power plant that would use technology it contends is cleaner and more efficient than what was proposed in Manistee. The corporation chose a site where another company started construction and obtained permits for a natural gas power plant before the company went out of business. Hora said he planned to look at Tondu carefully before he took a position. "I'm not saying we're jumping over backwards" for any company that wants to locate in New Carlisle, Hora said. But "you're always looking for businesses that are good and will grow and will help your community." Steven Ross, a county commissioner for St. Joseph County, which includes New Carlisle, said he is opposed to Tondu's proposal. "After having read about their conduct, I don't think they are a very good corporate partner to a community," Ross said. In particular, Ross cited Tondu's murky proposal to Manistee. City officials looking for a boost to the tax base were caught off guard when they learned Tondu planned to partner with tax-exempt public utilities, possibly making the plant tax exempt. Ross said he is also concerned about the coal gasification technology and carbon dioxide emissions that could cause environmental harm in the area. He said the expensive technology could end up raising electricity rates for his community. But Ross said he is not sure he will be able to muster opposition to block the project. "When somebody holds out a billion dollar plant in front of you, and they're trying to say they're going to have 70 jobs that pay $50,000 a piece, it's something that a community doesn't want to turn down," Ross said. See Related Story: Court urged to toss Tondu company's suit - June 26, 2005
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