Illinois Valley News

Commissioner Sandi Cassanelli (left) decried the lack of financial disclosure contained in JSWCD“s grant report as Commissioner Dave Toler looks on. (IVN photo)

An $85,000 economic development grant allocated by the Josephine County Board of Commissioners last year continues to be mired in controversy and consternation.

The grant was among many issues discussed during the commission“s Wednesday, March 3 weekly business session at Anne G. Basker Auditorium in Grants Pass.

Josephine Soil and Water Conservation District (JSWCD), which was charged with administering the grant to Eugene-based N.W. Seed Crushers, gave a presentation on biofuels created as a byproduct of canola and camelina.

But politically charged statements were made even prior to the JSWCD presentation.

Selma resident Mark Seligman, who has filed to run against incumbent Commissioner Dave Toler, took to the podium during the portion of the meeting set aside for requests from citizens. He asked if audience members could pose questions following the presentation.

Board Chairman Dwight Ellis responded by saying that questions could be asked of the presenters. Seligman insisted that inquiries also be directed at commissioners, but Ellis said that would not be permitted.

“I don“t want this to turn into a commissioner bashing session,“ Ellis said. “This is a presentation.“

Seligman said that his main concern is the grant money given to N.W. Seed Crushers, which has since gone into bankruptcy. He questioned the firm“s track record, as well as Toler“s, which he characterized as “poor.“

“This is costing the county money,“ Seligman said, referring to the matter as a “debacle.“

Seligman also accused Toler of vilifying fellow Commissioner Sandi Cassanelli and aiding in the recall of five Grants Pass city councilors last year. Toler has consistently denied that charge.

Grants Pass resident Malcom Drake spoke up, and said he was tired of hearing Seligman make disparaging remarks about Ellis and Toler.

“It seems more like propaganda for his election campaign than trying to share information with the public,“ Drake said.

Kit Doyle, president and co-founder of Southern Oregon Seed Oils (SOSO), started the presentation by stating that he attended a meeting of area growers facilitated by JSWCD.

Doyle said that he traveled to Montana to purchase 12,000 pounds of camelina. He said that he was able to use an old Grange building as a facility, and also had access to a seed cleaner in operational condition. A seed crusher was purchased and set up next to the seed press, Doyle said.

SOSO has contracts with “half a dozen different farmers,“ Doyle stated, and is marketing a body oil product locally and in Portland.

Approximately 100 acres of camelina were planted last fall, Doyle said, with a few hundred more anticipated to be planted this spring and fall.

“It looks like it“s going to be a good product for this area,“ he said.

Doyle added that he was in discussions with a company that wants to relocate to the West Coast. That firm could create 50 jobs if a 3,000-acre crop rotation could be established, he said.

The goal is to have 1,000 acres planted by the end of the year, Doyle said, which should be “feasible.“

SOSO did not receive any grant funds, Doyle said, but was inspired by the grant allocation to develop a business model. Around $40,000 in private funding has been invested in SOSO, he said.

Doyle said that he “would not be opposed“ to applying for the remaining grant funds. Approximately $42,000 of the $85,000 already has been spent.

Toler defended the grant allocation, and said that its purpose was to enable 300 acres of bioseed to be planted in the county. He said that commissioners always try to obtain leverage when allocating economic development funds.

Around 400 acres were planted in 2009, Toler said, with 10 growers participating. More than 600 acres are projected to be planted in 2010, he said, with 15 jobs expected to be created as a result.

It“s too early to measure the long-term effects of the project on the county“s agricultural sector, Toler said.

Cassanelli, board vice chairman, said the project has “morphed“ from its original intention. The grant was supposed to be allocated so N.W. Seed Crushers could grow canola, Cassanelli said.

She held up a sheet of paper and stated that it is not a detailed itemization of how the grant dollars were spent. She asked where the money went, who obtained those dollars and what was purchased with them.

Doyle reiterated that his firm was not part of the grant allocation.

“All we did was run with it,“ Doyle said.

Toler responded that under the terms of the grant, it was up to JSWCD to determine who should receive the contract to meet the project“s objectives.

JSWCD Vice Chairman Connie Young said that the Oregon Attorney General“s office has advised that group to not discuss the matter.

Michael Smith of Southern Oregon Regional Economic Development Inc. stated that N.W. Seed Crushers and SOSO are completely different organizations.

The biofuels project did not go as planned, Smith said, but can still be made right by helping SOSO, a local firm.

Smith urged the audience to stop the “political footballing“ and “political wrangling,“ which drew strong applause from attendees.

Seligman asked where the $42,000 in grant money went. He said that either JSWCD or Toler is to blame for problems that have arisen as a result of the allocation.

“We can“t trust either of you,“ Seligman said.

Richard Lewen of JSWCD said that litigation is pending between that group and N.W. Seed Crushers. He added that JSWCD still has the grant funds not paid to N.W. Seed Crushers, and that no dollars from the county will be spent in the litigation.

Toler stated that the project has surpassed its initial goals, and predicted its long-term success.

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