REEDSPORT — Business-man Paul Dailey has been meeting with potential investors in California, Nevada and Oregon to secure the rest of an estimated $10 million to build a wood pellet mill.

If he can line up enough investors, Dailey said he could finalize a sale agreement with Douglas County for the approximately 12-acre Bolin Island plot north of town.

The state Land Use Board of Appeals recently upheld Douglas County Planning Department’s decision to remove a dredge spoils zone at the industrial site. Daily’s optimistic the land use appeals process soon will be behind him.

“We’re looking pretty good. We still have some things to do, but that’s a big hurdle out of the way,” said Dailey, who owns a sawmill up Smith River.

Jan Tetreault, a Loon Lake resident, and Roseburg resident Richard Sommer appealed a county Planning Department decision in June to remove the 4-acre dredge spoils overlay at Bolin Island.

The appeal was sent to LUBA when county commissioners refused to hear it. LUBA found the county’s removal of the overlay is warranted, since county engineer Rob Paul reported earlier this year there’s no room for dredge spoils.

“It’s full. It’s done,” said coastal planner Jonathan Wright.

 The underlying land also does not have an estuary designation, making it developable industry land in the county’s master plan.

County commissioners will decide in December whether to eliminate the review process for removing a dredge site overlay. A site that is determined “full” by an engineer could be closed without a chance for public review — or an appeal.

Dailey said he would accept a legitimate appeal, but, “The process was being used to block development of an industrial site. The process was being abused.”

He still will need building and environmental permits.

The mill would process byproducts such as sawdust and logging residue into fuel pellets. The proposed mill would employ between 25 and 30 people, he said.

“I’m way anxious to get this going,” he said.