Pennington Co. commissioner questions rail loan - KOTA Territory News

Pennington Co. commissioner questions rail loan

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A loan to benefit a KOTA Territory wood pellet company could leave taxpayers in Pennington County to foot the bill, says on commissioner.

Deadwood Bio Fuels Inc. is asking for a loan to build a railroad spur to their factory on Old Folsom Road.  In order to get the loan, they are asking county commissioners to create the Rushmore Regional Rail Authority.

The new authority would then lend the company $375,000 in state funds for the project.

But, if the company defaults on loan, the Rail Authority would have the power to levy a tax in Pennington County to get the money back.

That is troubling to some commissioners. "The thing that bothers me a little bit is why the Governor and the state of South Dakota loans them the money, but makes us back it up with taxpayer money to pay it in case they default on the loan the state gives them," says Pennington County Commissioner Ken Davis. 

Company officials say the spur would save Deadwood Bio Fuels time and money, getting rid of the need for trucking.

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