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MIDDLETOWN — Now that Middletown City Council has rezoned 157 acres of the Bake-Martin parcel off Ohio 4 for industrial use, SunCoke Energy must finalize its property purchase, deal with a lawsuit, get federal and state approval and have the city OK a tax abatement and permits before it can build its proposed $340 million coke-making and electric generation plant.

Michael J. Thomson, SunCoke's executive vice president and chief operating officer, stated in an April 11 letter to City Manager Judy Gilleland that "because of the time-sensitive nature of this

project" the new plant needs to be in operation no later than Dec. 31, 2009, to remain eligible for federal tax credits for alternative energy fuel sources.

A delay also could increase the cost of the project and getting critical equipment for the plant, he said.

Those federal tax credits also would benefit AK Steel Corp., according to an April 11 letter from James L. Wainscott, AK Steel's chairman, president and chief executive.

SunCoke estimates it would take about 14 to 18 months to construct the plant, which is projected annually to produce 550,000 tons of coke and 50 megawatts of electricity.

AK Steel has signed a 20-year agreement, pending regulatory approvals, to be the exclusive customer.

SunCoke has applied to the Ohio Environmental Protection Agency for a permit to install equipment.

However, SunCoke still has to finalize the purchase of the land, which has an obstacle after Frank and Joan Schiavone filed a lawsuit Monday in Butler County Common Pleas Court against the owner of part of the rezoned land, Dr. Theodore Martin and Martin Meadows Limited Partnership. The Schiavones, whose Monroe property is adjacent to the Martin property, also filed a permanent injunction against the sale of the land to SunCoke.

Marty Kohler, city planning director, said SunCoke also will have to apply for a zoning permit and a site development plan that verifies conformance to city zoning code.

Kohler said if the the plan meets the zoning code, approval can be done administratively. If not, SunCoke would have to get approval for a variance.

Bill Murphy, the city's economic development director, also said SunCoke's request for a enterprise zone agreement that includes a 10-year, 75 percent tax abatement on real property, will go before council in early June.

According to SunCoke's application, the abatement is needed or it may have to consider options in Kentucky.

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