Expansion plans are on the horizon for the South Central Grain Elevator in Sterling, an affiliate of CHS Inc.

The company is requesting a 100 percent three-year tax exemption on the addition.

The Burleigh County Commission on Thursday set a public hearing for 5:15 p.m. Oct. 20 on the the company's request. County Auditor Kevin Glatt said South Central Grain is seeking the exemption under the status of new expanding business property.

According to Bill Schauer, general manager of South Central Grain, the addition includes three cement silos, each able of holding 157,800 bushels.

"These would increase our storage capacity by 519,000 bushels, bringing our total storage capacity to 1.065 million bushels," he said Friday.

Each silo will match the size of the existing infrastructure at the site, measuring 128 feet high and attached to the existing buildings.

A representative from the Sterling School Board and the Sterling Township will be included in the hearing negotiations as non-voting members considering the temporary exemption.

Schauer said permitting for the new silos is still pending.

He added if the addition is permitted early, work could start this fall.

"If it starts getting into frost, we won't start until spring," he said. "It will take six months from when we start to complete. We could have it done in September 2009 in time for the late harvest."

Schauer said the elevator's current storage capacity limits how much grain it can move from the site.

"We have storage for 550,000 bushels and we can only use one 410,000-bushel-unit train, 110 cars," Schauer said.

With the expansion, he said said the elevator would qualify to use two unit trains to carry the grain to markets.

"We could have better leverage in the market and better serve our customers," Schauer said.

Commissioner Marlan "Hawk" Haakenson said a previous request from the company drew a large crowd.

South Central Grain was previously granted a 50 percent exemption for two years in 1998 and 1999 when it first built the terminal.

Glatt said the proposed exemptions would apply only to the new section of the terminal after it is built. Taxes for that section of the terminal are projected to be $40,000 per year.

The company handles spring wheat, barley and sunflowers. It also operates elevators in Hazelton, Kintyre, Napoleon and Wishek. It has markets in both the East and West Coasts.

(Reach reporter LeAnn Eckroth at 250-8264 or leann.eckroth@bismarcktribune.com.)