Oct. 8--BURLEY -- The Burley City Council voted unanimously Tuesday not to waive unpaid lease payments on ground in the Burley Industrial Park for potential buyers of the bankrupt ethanol plant.

Burley city attorney Randy Stone said a request had been issued asking the city to forgive $77,000 in back lease payments at the industrial site for the potential buyers of Renova Energy LLC's Heyburn facility. The 21-million gallon-per-year facility filed for bankruptcy June 20, 2008.

Along with unpaid lease payments to the city of Burley, the company owes Minidoka County $327,936 in unpaid 2008 taxes for the plant, transfer station and tanks, along with late charges and interest, according to Minidoka County Treasurer Laura Twiss.

Burley City Admini-strator Mark Mitton said the company never made any of the lease payments due to the city.

"So while we're down they want to give us a little kick," said Vaughn Egan, city councilman.

Renova Vice President of Marketing Terry Oldfield said Friday a company was interested in purchasing the plant and if the deal goes through the company would make the uncompleted plant operational within the next 18 months.

Construction on the plant was suspended in December 2007 with the company owing $15 million to subcontractors, many of them local. Oldfield said if the purchase does not go through the creditors will have a short window to purchase the plant themselves. Short of that, it will go on the auction block. Oldfield said the company hopes to emerge from bankruptcy by the end of October.

Pacific Ethanol Inc., including its Burley plant, filed for Chapter 11 bankruptcy on May 18.

Mitton said Pacific Ethanol, which opened the Burley plant in May 2008, has paid all taxes to the city and the county treasurer's office said the company does not owe any county taxes either.

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