In studying the 2015 contract between the city of Newton Illinois and Newton Bio-Diesel Plant #2 LLC I see red flags all over the place.
In my opinion these raise questions that need to be answered.
The condensed version of the contract is that Newton Bio-Diesel Plant #2 LLC will buy the existing plant "exhibit "B" from BN national trail
and who ever else has a lien against it, create at least 30 million gallons per year, employ at least 50 people and pay the city of Newton
$1,000,000.00 yearly. City of Newton will then give Newton Bio-Diesel 24 more acres in the industrial park, exhibit "A".
Red Flag 1. Multiple corporations, so far I have Identified 3 separate newly formed Delaware LLC'S with California addresses,
Newton Bio-Diesel Plant #2 LLC formed on 5/10/16 which oddly is 8 months after they enter into contract with Newton
Newton Biofuels LLC formed on 10/27/15
Newton Holdings LLC, formed on 4/26/17
I suppose that there are valid reasons why a California based company would form multiple LLC'S in Delaware to do business at a single
location in IL. but the only ones that I can come up with are not good.
Red Flag 2. Newton has been promised a $1,000,000.00 annual "Good Neighbor" grant to the city of Newton ostensibly forever,
what company would make such a promise.
Red Flag 3. Terre Haute's dealings with Powerdyne which appears to be the parent company of the multiple LLC'S
A. The proposed $300,000,000.00 Terre Haute sludge to biodiesel plant plan was analyzed by the Rose Hulman Institute of Technology
who were proven right when they determined that the plan was totally unworkable.
B. Terre Haute found that their contract with Powerdyne was unenforceable.
C Terre Haute was promised a "Good Will" payment of $3,000,000.00 that they never received.
D When questioned at a Terra Haute council meeting about where the 300 million dollars would come from Mr. Hirson said that his company
has access to 1 billion dollars through backing from a pension plan but when questioned further could provide no details, when questioned
about other similar plants Mr. Hirson said that he had a pilot sludge to bio plant running and had other plants using different processes in
operation but again could not provide any specifics.
Red Flag 4. The Powerdyne web site which is apparently the parent company looks impressive and makes all kinds of claims that they have
developed the technology to do very impressive things that no one else has been able to do but what you will not find are any specifics, no
mention as to where any of this advanced technology is actually being put to use like in a actual working plant, you would think that for
instance if you could convert sewer plant sludge into biodiesel as they claim that you would be proud to tell where such a plant was in
operation and in fact would take potential buyers of such technology on a tour but when A Terre Haute councilman asked this very
question he was told it was not possible because of non disclosure agreements.
Red Flag 5. The contract was signed over 21 months ago and so far all that has happened is that the property has been mowed with a bush
hog a few times.
Red Flag 6. Mayor Bolander says "This effort should be the one that gets the facility into operation"