Dallas County officials will consider next month whether to rezone approximately 250 acres of farmland near Interstate 80 east of Dexter for a rail-industrial park that investors hope will attract an ethanol production plant. It would also be the first industrial park in the county to have rail access, an amenity that has become increasingly popular as higher fuel prices increase shipping costs.

“We used to see one rail project inquiry by a company about once a year; now we’re seeing about one a month,” said Linda Schaut, executive director of the Greater Dallas County Development Alliance.

The Dallas County Planning and Zoning Commission last month denied a request to rezone the property to a planned industrial park designation, saying it needed more information regarding the possible ethanol plant use. Currently, the county’s designation of a PIP does not include an ethanol plant as one of the approved uses.

The Development Alliance is working with Fort Dodge-based McClure Engineering Co. to design the industrial park, which would be located south of I-80, about two miles southeast of the town of Dexter. It would be served by the Iowa Interstate Railroad, whose main line borders the southern edge of the property.

“It would be a rail-industrial park with high visibility,” said Terry Lutz, McClure’s president and CEO, who also represents a group of Central Iowa investors interested in developing the business park. “If our vision really came true, this could really become a significant agriculture-related park that would serve not only Dallas County but Madison County as well.”

In addition to being a good location for an ethanol plant, Lutz said the rail park will also be designed to accommodate businesses needing as little as three to five acres. Eric Woolson, a member of the Planning and Zoning Commission, said he voted against the project in November because the investor group hadn’t contacted all of the adjoining landowners.

“It’s my hope that the project will move forward,” he said. “But it was my concern that if we voted for it, it would move forward without the neighbors’ concerns being recognized. I would hope that (the investors) could work something out with the neighbors … It would seem to me if you’re developing that much land, it might make sense to buy those (adjoining properties).”

The closest industrial rail park is located about seven miles to the west in Guthrie County. A rail spur built there about four years ago serves Wausau Supply Co., a wholesale building materials supplier. The rail park has not yet attracted additional businesses, however.

Dennis Miller, president of Iowa Interstate Railroad Ltd., said large volumes of business aren’t required for the railroad to serve an industrial park.

“We stop at several customers that just do several cars a year,” he said. “It’s nice to have bigger companies, but typically a big company is made up of a lot of smaller companies.” Iowa Interstate plans to invest up to $25 million in track upgrades over the next two years that will allow its trains to operate at 40 mph and handle heavier, 286,000-pound cars.

A developer has not yet been chosen for the proposed rail park, Lutz said. Provided the rezoning request to a Planned Industrial Park designation is approved, the site would then be marketed based on a development plan designed by McClure.

The Dallas County Planning and Zoning Commission is scheduled to hear the rezoning request at its Jan. 24 meeting.