Aug. 5--JANESVILLE -- Announced, delayed, constructed, mothballed, bankrupt, thrice sold, the long-awaited Janesville ethanol plant will be fully operational this fall, according to its new owners.

The plant -- completed but never put into operation when its second owner declared bankruptcy -- will be sold by AgStar Financial Services of Mankato to an ownership group made up of nine existing locally owned ethanol plants, according to AgStar and the new owners.

At 110-million gallons, the facility's production capacity makes it one of the state's largest ethanol plants. It's likely to be Janesville's second biggest employer of full-time workers. And it will soon be Waseca County's largest taxpayer.

For Janesville residents who have watched the plant's laborious birth, Tuesday's news was encouraging. But they also vowed to remain skeptical until they saw the plant taking its first breath.

" Nobody's putting a lot of stock in this until they see the steam coming out of the stacks," said Paul Pfenning, chairman of the Janesville Chamber of Commerce.

The plant is expected to bring about 50 full- time jobs, which would likely put it behind only the public school system among Janesville's employers, said Janesville City Administrator Clinton Rogers. Although the plant was built just east of town -- meaning there will be no direct boost in the city's property tax base, the new jobs and potential for higher incomes for area farmers should benefit the city's businesses.

" It's obviously going to affect the local economy in a good way if you have more employees moving into the area," Rogers said.

" It's definitely going to affect the stores and businesses."

Like Pfenning, Rogers injected some caution into his optimism.

" I certainly hope it's successful," he said.

Any uncertainty would be lessened with the closing of the sale -- which could come as soon as Sept. 15 with full operations beginning 30 to 60 days after the closing, according to AgStar Financial. The Mankatobased ag- focused financial services company took ownership of the plant in January in an auction approved by a bankruptcy court.

AgStar was the lead lender for the facility, being constructed by VeraSun Energy of Brookings, S. D., which declared bankruptcy last fall. VeraSun had become owner following a merger with U. S.

BioEnergy, the original developer of the project, in April of last year.

AgStar paid $ 55 million for the facility, essentially what lenders had loaned VeraSun for the project.