Powers officials claim money is on way for trash-to-ethanol plant

Offering no firm timeline on when money for a proposed trash-to-ethanol plant would be in the bank, a man claiming to be the owner of a Nevada-based hedge fund said he is committed to funding the project.

But some Lake County municipal officials, made skeptical by years of delays with the project, weren't convinced Wednesday by the promise of financing.

Hugo Cadena, who identified himself as chairman of Las Vegas-based hedge fund Visage 1 LLC, said he expected to be able to provide $300 million in financing for the proposed trash-to-ethanol plant in Schneider "very soon."

Cadena, speaking from California, and Earl Powers, who plans to build the plant under contract with the Lake County Solid Waste Management District, addressed district board members Wednesday night via teleconference at Purdue University Calumet's Merrillville facility.

Cadena described his hedge fund as low key, lacking a corporate website and ready and willing to sell bonds to pay for the multimillion-dollar plant, which Powers proposes to build in Schneider.

But Cadena said he could not give a firm timeline of when the project would be financed, prompting questions from some board members.

"We've had delay after delay with the funding," said district board member and Griffith Councilman Rick Ryfa. "At what point are we going to start raising red flags again if we find out there is no funding available, or it is being delayed?"

Ryfa was referring to several occasions within the past year during which financing for the project was promised by either Powers' company officials or other board officials only to not come through.

Cadena again declined to give a timeline but, in response to another question from Ryfa, said he expected something to happen within 90 days, possibly sooner.

Cadena said he began working with Powers, the CEO of Evansville-based Powers Energy of America, about eight months ago to develop a financing plan for the trash-to-ethanol plant.

During Wednesday's meeting, Powers also attempted to assuage board members' concerns that Powers recently lost his option to purchase a site in Schneider upon which to build the plant.

Powers said his option expired last month because he lacked financing and because the owner of the site, a former sod farm, was asking for too much money for the land.

Powers said he is exploring two or three other parcels in or near Schneider that would be more reasonably priced.