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Terre Haute Owed $3 Million After Contract Deadline Passes

By Casey Kuhn

Posted January 8, 2015

Terre Haute is still waiting on $3 million Mayor Duke Bennett says was supposed to come by the end of 2014 as part of a business deal.

The city contracted California-based company Powerdyne to take its sewer sludge and convert it to diesel fuel for 20 years. As a part of that deal, Powerdyne was supposed to pay the city $3 million by December and another $3 million at the end of this year.

In an interview last month, Bennett said the contract would be a boon to the city.

"This is a great project and the city is going to be in an excellent position with this," Bennett said. "It's going to provide us an opportunity to lower our expenses and raise some new revenues, so it's a win across the board."

On Wednesday, Bennett declined to comment on the fact that the city has not received the first payment.

That has made Councilmember Todd Nation skeptical about how the business agreement will work. Nation says while cleaner energy would be good for Terre Haute, Bennett hasn't been communicating to the city council about the deal.

"We're just shooting in the dark trying to figure out what has been passed and what kind of impact it might have," Nation says. "The deeper I dig into it the less sense it all makes, frankly."

Powerdyne President Geoff Hirson says some things still needed to be worked out, but would not elaborate on what those issues are.

The expected $3 million is figured into the 2015 budget and without it, Terre Haute's finances will be in the red.

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