Two independent energy generating companies are vying for the Flats in Coatesville that if either proved successful would poor millions of dollars into the city's financially strapped coffers and could possibly radically transform future revitalization plans.

Both LSP Power Group and Florida Power and Light Company want to purchase the 26-acre Flats site to build gas-to-electricity generating plants. Both promise hundreds of construction jobs during the two to three years it will take to build the power plants estimated to cost upwards of $500 million. Just how many of those jobs would go to Coatesville residents was only vaguely discussed. LSP and Florida Power and Light Company both said when completed the plant would only require 25 to 30 employees to operate.

LSP Power Group has already presented its proposal to the city's Redevelopment Authority which owns the Flats. The St. Louis-based company made public at last week's RDA meeting a $10 million offer for the site.

Coatesville City Manager Harry Walker said regardless of which company builds the plant, once completed it will generate upwards of $3 million in new taxes. This year the city projects collecting only $2.9 million in real estate taxes.

Walker said the city would become a boom town during the construction period with 800 construction jobs with a $100 million annual payroll comes to the city. "They have to eat and sleep somewhere," Walker said during last week's RDA meeting.

Two strong opponents of the power plant project are Don Pulver and Carl Chetty.

"This is a switch in directions that will basically blow out the whole downtown development plan," said Pulver, at last week's RDA meeting. "It probably won't be beneficial to what we are trying to do up by the bypass."

Pulver is scheduled to begin construction in April of a hotel and restaurant complex and multi-story office complex near the Route 30 bypass interchange on Route 82. The total project cost is estimated at $36 million, $20 million is in government grants and low-interest loans.

Chetty, whose plans to build Pennock Place, the first of seven high-rise condominium towers in downtown Coatesville, has stalled because of finances, told council last night that a power plant on the Flats was not in keeping with the city's revitalization plans. "If anything it will drive away economic growth," he said.

"The RDA (Redevelopment Authority) plan has not worked for us," said Council Member Kurt Schenk.

When the RDA acquired the Flats through two separate purchases from G.O. Carlson Inc. and then ISG (International Steel Group) totaling $1.8 million, it was with the idea the site would be used for residential and commercial development. At that time Bart Blatstein of Tower Development was planning to build several high rise condominiums surrounded by a grocery story and several restaurants along the proposed riverwalk.

"A decision on the power plant is not being made at this point," said council Vice President Kareem Johnson. "Maybe we would not be looking at is so hard if we were not in the present financial situation."

Council is faced with paying back a $7 million line-of-credit taken out by the RDA. The money was supposed to be used to acquire property needed for redevelopment. The idea at the time was there would be a quick turnaround sale to the city's preferred developers.

"None of the projects have moved forward in the time planned," said Johnson.

Council has yet to vote on a $2.3 million offer for the Flats made by Bob McNeil of Penguin Properties. Last month, the RDA voted to sell the property to McNeil. At that time it had already been informed of the interest of LSP and Florida Power and Light Company in the site.

"If we get the $2.3 million we're going to have to raise taxes to pay back the other $5 million," said Council Member Patsy Ray.

A major stumbling block with the McNeil offer is the lack of a development plan for the site. McNeil, who long has been a major philanthropist for Coatesville, has said he prefers commercial and residential development of the site over industrial development.