Keokuk, IA – AMJET Turbine Systems has asked the city for the $200,000 it needs to build a smaller version of its hydroelectric turbine.
Paul Roos says the prototype will help his company secure capital to build the standard-sized turbine.
AMJET Turbine Systems must raise about $1,000,000 to land about $650,000 from the Iowa Power fund.
The Keokuk Economic Development Corporation has voted to borrow the $200,000 for the prototype for AMJET.
Alderwoman Susan Dunek represents the city on KEDC.
Dunek says the money would come from the city. She says the most likely fund would be the bridge demolition fund.
"That (money) is earning a very low interest rate right now," said Dunek. "That source of funds would have no impact on our general fund or our other spending at budget time."
Dunek says the terms of the agreement between the city, KEDC, and AMJET have yet to be finalized. She says the sides will have to decide interest rates and potential incentives.
The Keokuk City Council could hold a special meeting, next week, to approve the borrowing agreement with KEDC.
Dunek says AMJET would like to have the funding in place in time for the November meeting of the Iowa Power Fund.