CHANUTE — City commissioners here terminated their working relationship with Fry Environmental Technology after investing $300,000 from the city’s industrial fund.
The Chanute Tribune reported $78,500 went for compensation, including $58,000 to owner John Fry. The remainder was spent for equipment and machinery, which by terms of the agreement with Fry is city property.
The company came to town 18 months ago with the promise that each waste tire would produce 1.5 gallons of diesel fuel and other byproducts, such as steel, carbon black and steam to be used to generate electricity for the company. Value of reclamation was figured at $12 for each tire.
The company never went into production. City Manager J.D. Lester said there was no reason to wait any longer for progress, the Tribune reported.
Commissioners said they hoped alternative uses could be found for the equipment and that the investment still would bring jobs to Chanute.
The city’s industrial fund has a balance of $66,000.
