Ethanol Plant next to MHP


#1

Does anyone have experience living close to an ethanol plant, or information about the impact a new plant would have on a community?

My concerns are due to finding out that a MHP that I have under contract is located across the street (about 1000’ down) from a new facility that will be built for ethanol production in the next 2-3 years.

In talking to lenders and investors they seem to have two opinions- #1- the plant would provide ideal jobs for the MHP residents, and the land would ultimately be worth more as a commercial property than as a MHP and #2- the traffic and smells would impact quality of life in the park, and would make the park less desirable 10 years down the road as a place to live. It’s not really possible to predict how bad the smells and traffic would be, and its effect on a potential sale down the road. I intend to buy and hold, probably selling in 10-15 years.

I uncovered this during due diligence and am not sure what to do about it. Any park owners out there have an opinion? If you had discovered this next to a really nice park during due diligence would it kill the deal for you? Would it make it more valuable? Would you try to negotiate a price reduction?

Thanks for any answers,

Anne


#2

Is the plant upwind or downwind, uphill or downhill, public water or well? Do a google search on public hearing ethanol plant, or ethanol plant impact. I am not sure hiow many jobs this facility will provide? Not many probably.


#3

I’d go find another ethanol plant, tour it, smell around, ask nearby residents if there are any quality of life issues.

Surely you’ve finished The Deathly Hallows by now - you have time to drive.

;-)3


#4

reading that book…I had to wait until Jen was done.

What a GREAT book!

With all of the Federal regs on ethanol plants, I bet they are pretty tidy. The EPA has very strict guidelines on emmissions. We looked at a Park in GA right down the street from a dump and there was NO smell. Folks backed their trucks up and dumped into a concrete trough. Earth movers moved the trash, placed in plastic lined trenches, another liner was applied over top, it was very neat. They hosed down the trough each night.

Anne, you never know if you don’t ask for a reduction…

Good luck Anne (this dd is tense work, eh?),

Greg