Members of the Clay County Board of Supervisors on Tuesday approved a six-year, $100,000 loan to help a new company get a foothold in Spencer.

The vote, to assist a prospective company called Terramech, came with a recommendation from the county's recently-created Revolving Loan Board.

Loan board chairman Kelly McCarty told supervisors Terramech will specialize in the design, development, production, marketing and support of small rubber-track undercarriage assemblies, or RTUs.

The initial financing is needed for working capital, according to McCarty. Terramech plans to create 34 jobs, with competitive wages and benefits, in the first three years. Company founders requested a financing package of $550,000, including the $100,000 revolving loan from the county.

The RTUs, and other parts manufactured by the company, would be used on equipment in the agricultural, construction, mining and landscaping industries.

"In addition, the company will engage in the contract manufacturing of parts for aerospace- and defense-related industries," McCarty told the Clay County Board of Supervisors

The company founders also plan to do some customized machining for other companies while they develop a client base for their RTU production.

"We did a lot of discussion with the owners, we met with them last week, which was very beneficial to our committee," McCarty said. "We got to know them and were able to get very comfortable with them. I think they'll be great additions to Spencer and the area with their families."

The Terramech founders will get the county loan at a 4.75 percent interest rate, with monthly payments over six years. The company also must submit periodic financial statements to the county as part of the process.

Community State Bank of Spencer is providing financial support for the project. A Spencer site has been identified, but was not disclosed at Tuesday's meeting because a lease had not been signed.

In other discussion, Clay County Zoning Administrator Tammy McKeever talked to the supervisors about possible changes to zoning ordinances in unincorporated areas of the county.

McKeever noted the prevalence of wind turbines since zoning ordinances underwent an extensive review 18 years ago.

"Right now, the way the zoning ordinances read is: We have a setback of 50 feet all the way around," for turbines, McKeever said. "Well, that's pretty close to a road and pretty unheard of in zoning. When these were written 18 years ago, wind turbines weren't a big deal. It seemed proper that 50 feet all the way around was going to suffice, but it is apparent that you need a farther setback than that for safety reasons."

McKeever explained that county zoning has two major roles -- to protect prime agricultural land and to ensure individuals have an opportunity to enjoy their property.

"If you have a wind turbine built 50 feet from your house that you didn't want necessarily, it could infringe on your enjoyment of your property, so that is what we're looking at," she said.

McKeever also said zoning policies relating to wind turbines may be adjusted before other zoning ordinances are addressed as part of a larger overhaul. The more extensive review of regulations could be a year or two away.

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STRIP CLUBS, ADULT BOOKSTORES -- IN CLAY COUNTY?

Clay County Zoning Administrator Tammy McKeever told the Clay County Board of Supervisors that a refreshed version of county zoning ordinances could be in order. Eighteen years have passed since the regulations underwent a thorough review.

The booming wind energy industry will be one area of focus, but a specific kind of retail may also need to be addressed.

"If someone wanted to come in with adult entertainment, we can't disallow it, no matter what the community's feelings are," she said.

The issue of adult-themed businesses came up at a conference at the state level. She learned a southern Iowa county had been sued -- and lost -- for trying to block an adult entertainment business on commercial property.

The amount of commercial land in unincorporated is limited, so the location of an adult business would likely become a city zoning issue -- if it becomes an issue at all.

"Obviously you wouldn't want some form of adult entertainment next to a school or a church," McKeever said. "But that's why you have zoning. So you can plan to not have conflicting things next to each other."