The sight of smoke stacks from a gas-to-electricty power plant towering over downtown Coatesville is fading fast, despite the promise from their developers to pump millions of dollars into the city's cash-starved coffers.

At last night's council meeting, John Pawlowski, of Madison Street, presented council with a petition signed by 700 city residents opposed to the sale of the 26-acre Flats site to either of two utility companies wanting to construct power plants on the site. "We went door-to-door and we only had one person who refused to sign," said Pawlowski.

LSP Power Group, of St. Louis, and Florida Power and Light Company both want to to purchase the Flats; LSP has offered $10 million for the Flats. Both have promised hundreds of construction jobs during the two to three years it will take to build the power plant estimated to cost upwards of $500 million. Just how many of those jobs would go to Coatesville residents remains unknown. LSP and Florida Power and Light Company both said when completed the plant would only require 25 to 30 employees to operate.

Council, according to City Manager Harry Walker, now prefers a proposal by Iacobucci Homes and its parent company, Baker Companies, to purchase the Flats for a reported $5 million for a mixed-use of residential and commercial development.

"I hope the power plant is a moot point," said Council Member Kurt Schenk, who now favor the Iacobucci project.

Last week a sense of euphoria swept through council chambers when the cash-rich Baker Companies presented the city Redevelopment Authority (RDA) with a plan to build 112 owner-occupied townhouses and 90,000 square feet of retail space on the Flats. Central to their plan is the city's development of a Riverwalk along the Brandywine Creek.

"There is a synergy there," said Ian Jones, vice president of Baker Residential, subsidiary of Baker Companies . "The Riverwalk is a key element in bringing up the value of the area."

Ray Iacobucci, vice president of Iacobucci Homes, said the two-bedroom town homes proposed for the site will sell between $175,000 to $225,000, ranging in size from 1,400 to 1,900 square feet. The town-homes would be located on the north side of the high railroad bridge which bifurcates the Flats.

The entire project would be self financed through cash balances, said Iacobucci. "There is no construction debt," said Iacobucci.

Both Jones and Iacobucci were less detailed about plans for the retail side located south of the railroad bridge and borders more with the city's main business district along Lincoln Highway. However, they both laid out the possibility of a grocery store. It is important, they said, finding an anchor store for the retail side. Several restaurants along the the riverwalk were suggested. But much depends on when the riverwalk is developed.

"Right now I think you would have trouble finding a restaurant anchor without the riverwalk being completed," said Jones.

According to sketch plans presented at the RDA meeting, the Iacobucci/Baker plan calls for the town homes to be located on 10 acres north of the arched railroad bridge which bifurcates the Flats; the retail section would be located to the south side of the bridge. At the RDA meeting, Jones put the land value where the townhouses are planned at $3 million. Tim Smith, director of planning and site development for Iacobucci, put a $2 million value on the retail area.

The RDA purchased 17 acres of the Flats in 2004 when it bought the defunct G.O.Carlson plant for $1.7 million; the final nine acres was purchased the following year from then ISG, now Mittal, for $169,000. The RDA drew down on a $7 million line of credit to purchase the Flats.