Rising scrap material prices drive interest in old power plant
Jun. 23—This is likely a once-in-a-lifetime opportunity.
And Logansport Municipal Utilities is ready to pounce. Announcing Tuesday at the Utility Service Board meeting, Superintendent Greg Toth said a remarkable situation is occurring. Reclamation steel and scrap brick prices are so high right now that businesses are making offers on the items at the former Power Generating Plant at Eighth and Race streets.
Those offers from scrap and reclamation companies are offsetting demolition costs of the entire structure by millions of dollars. Whereas the original estimates of tearing down the coal plant were around $3 to $5 million, Toth said he has received quotes that the structure could be taken down to ground level for an overall cost of $1.6 million.
Monies in the amount of $500,000 also may be available through a Community Development Block Grant (CDBG) with the Indiana Office of Community and Rural Affairs (OCRA). The city will find out on Aug. 12 if the dollars will be awarded.
Toth cautioned that the present volatility of the market means that quotes are good for seven days. The fluctuation of steel prices is attributing to the ups and downs.
However, the board approved the gathering of additional bids and the complete demolition of the plant, including the sites of electrical, water with the 125,000-gallon tower, and coal facility as well as removal of all asbestos products, at a cost of $1.6 million or less.
Demolition would take 120 days from the start to the property becoming a parking lot, said Toth, who cautioned the board members that "I can't guarantee it'll happen, but we will proceed."
If successful, "we will drastically change the skyline of Logansport forever," Toth said, adding that the landscape will be changed, too, when the 10th Street dams are removed later this year.
Segueing to water, Toth informed the board that he applied for a state grant under the Safe Drinking Water Act, utilizing stimulus funds, for the purpose of getting enough financial support to help improve water lines. He said the $5.93 million grant request would be a 50-50 match, meaning the city would need to come up with at least $3 million to replace approximately 16,600 feet of 6-inch mains.
According to Toth, new mains would be installed at both north and south water line boundaries from High Street to East Broadway and from 16th to 23rd streets through the Fulton Street neighborhood, replacing 210 meter settings. Work also would include the removal or replacement of more than 10,000 feet of lead service lines and gooseneck. Multiple areas of 100 feet of gap galvanized transmission lines, as well as leaded-joint mains, would be replaced.
Awards will be announced the first of August, he said, explaining that Logansport needs to formulate a long-term plan instead of providing immediate solutions that last for one to three years. There are improvement projects that must be done within the next 10 years, totaling at least $60 million, he said. Of that amount, $28 million is required by the state.
"We need to look at a 50-year plan. We can't dig a hole and dig another hole 25 feet later," said Toth.
Last year alone, the city experienced 101 main breaks, with 35 occurring in the Fulton Street neighborhood. The cost to repair each break averages between $20,000 and $80,000, he said. That's too costly, which means a new solution must be activated.
SOLAR FIELD
Toth said that site visits were held Wednesday and will be held on Thursday at the solar power field off of Ind. 29 at the Industrial Park. Testing will be conducted to make sure there is proper engineering of the site and to ensure the solar field matches up with LMU's grid.
LMU is under contract to purchase 25 megawatt hours per year, which will be included in the overall NextEra energy purchase of 400 kilowatt hours. Certain customers will receive early options to buy power from the solar field through LMU. Then, the ability to buy from solar will trickle out to other customers once the service is up and running.
LMU must sell at least 400 kilowatt hours annually or face a penalty.
Due to the warmer weather during May and the first part of June, he said usage is at 113% over 2020 at this time.
"We need additional load," said Toth. "We need WSP (Waelz Sustainable Products) online to help so we don't end up in the penalty zone."
MELBOURNE AVENUE
LMU's Water Department Manager Cameron Dillon said all barricades around Third Street to Eel River Avenue will be removed, with the exception of the pump station area at First Street, where crews are still working.
Workers also are switching focus to the beautification of downtown Logansport. He said the archway at Little Turtle Waterway will be moved 22 feet to the south of the alley at Fourth Street. This area will be available for pedestrian traffic only.
Reach Kristi Hileman at kristi.hileman@pharostribune.com or 574-732-5150
