City waits on plant annexation
By BENJAMIN C. SHARP bensharp@journal-spectator.com

Initially convinced that annexation of the Colorado Bend Energy Center was in the city's best interest, the Wharton City Council now appears less certain.

At Monday night's meeting, Council took no action on a proposed ordinance that would annex 1,000 feet of property along Texas 60 up to the southernmost edge of the Navasota Energy owned property.

The council also took no action regarding a proposed Industrial District Agreement - an agreement that Navasota officials have presented as an alternative to annexation.

Instead, the council voted to discuss the matter further at a special meeting scheduled for 5 p.m. Monday, Oct. 15, at city hall. During the public comments portion of the meeting, Wharton resident Jim Cockrell urged Council to delay bringing the power plant into the city limits.

"I feel like they are being a good neighbor and I don't feel that the time is right," he said. "They came here in good faith. I am totally against it."

Navasota is against the annexation. In a meeting with city and county officials last week, Navasota Company President Frank Giacalone said the taxes the company would have to pay if annexed would virtually cripple plans for future expansion - specifically, the construction of Phase III.

An initial building phase was completed earlier this year. A second phase is now under way.

Once complete, the power plant will be capable of generating 550 megawatts. A third phase, now planned, will boost that to 825 megawatts.

"If we are forced to pay (taxes), then we will pay what we have to pay," Giacalone earlier said.

"But we won't be able to do Phase III if we don't deliver the return we thought we were going to on Phases I and II."