CHENOA - An ethanol plant that could cost $180 million to build, produce up to 500 construction jobs and employ 65 people full time in production has been proposed for a Chenoa industrial park.

Construction on the 100-acre complex could begin as early as April if U.S. Ethanol receives the necessary permits and financial incentives from a tax increment financing district. The plant could be online 18 months after construction begins.

Representatives from the New York-based company met the City Council on Wednesday to announce the plant.

"I have to say I'm ecstatic," said Mayor Walt Hetman. "This will produce jobs and be a real boost to our economy. We have everything they need and we're ready to build here in Chenoa."

The plant would be able to process as much as 40 million bushels of corn a year into 100 million gallons of ethanol annually, said Pat Hinner, owner of AGRA Industries, which has been hired to build the plant for U.S. Ethanol.

U.S. Ethanol founder David Khalizad said the Chenoa plant would be the first of six such plants to be built this year. Khalizad, who also is CEO of the Geneva Capital Corp. investment firm, plans to build another plant in Illinois, two in Indiana and two in California.

He said he hopes to build four more plants in 2008, bringing the company's ethanol production to more than a billion gallons by 2010.

"When I consider the greatness of the United States and the citizens, I ask myself, 'What can I do to help liberate us from our dependence on foreign oil?'" said Khalizad. "This nation prevailed against the Nazis and the Communists, but our dependence is helping to finance the terrorism.

"This plant will help the local economy, and in a broader picture, help the country to be less dependent," he said.

The industrial park will be part of a yet-to-be-developed TIF district, which would use property tax revenue from the district to pay for infrastructure and development incentives. The TIF incentives the city will offer the plant haven't been determined.

U.S. Ethanol has hired Hinner's Merrill, Wis.-based company to design and build the facility in the recently formed 500-acre industrial park on the city's south side.

Hinner said his company will be responsible for plant design, fabrication and construction and will employ up to 500 people during the peak of construction.

"We want to use as many local contractors as possible," said Hinner.

Once completed, the plant will operate 24 hours a day and employ up to 65 people.

The plant would be able to store up to 1 million bushels of corn and receive grain by truck and rail, he said.

"We'll try to use as much local corn as possible - whether that's by buying directly from the farmer or from a co-op is not up to me," Hinner said.

AGRA Industries, a division of Merrill Iron & Steel Inc., has built seed, feed and ethanol processing plants in Wisconsin and throughout the Midwest, and is committed to building environmentally friendly facilities, Hinner said.

The plant will have its own water system, which will recycle back into the plant, Hinner said.

There should be no smell or noise problems because the plant would use a dry milling process, he said. Any discharge will be burned.

"We still need to file permits and complete feasibility studies, but I'm confident that we can get permits in time to begin construction on time," said Hinner.

"We hope to break ground in April and should be done in about 18 months."