The developer interested in the steel mill property is also seeking to purchase IP land, according to state officials. Hewitt said it could be beneficial to have one developer overseeing both the steel and paper mill sites. 

Goldfinch, however, said he doesn't see that as a viable option. He said it would be challenging to put housing and other mixed-use development on a property that may have been contaminated by the paper mill.

"To me, that’s always going to be an industrial site," he said.

Georgetown County Councilman Raymond Newton said he supports a biomass plant being constructed on the IP property.

"I know there's been a few people that have come out against it, but I am definitely 100 percent behind it," he said. 

Newton doesn't think a biomass plant would interfere with plans for waterfront revitalization on the port and steel mill properties. He added that the county still plans to make an offer on three small pieces of IP land to be used for its port redevelopment.

IP has said it's willing to sell the land to them, but nothing has been finalized, Newton said. 

Environmental and air quality concerns 

State Sen. Ronnie Sabb, D-Georgetown, said he doesn't have a preference between mixed-use development and heavy industry on the IP property. 

"My hope is that the direction we head in charts a new course for our beloved Georgetown and adds futuristically to our quality of life," he said. 

However, he said his knowledge of biomass plants raises concerns about potential environmental and health impacts. 

Biomass plants are often marketed as carbon-neutral or low-carbon, but that's not necessarily true, especially when burning wood, according to Heather Hillaker, a senior attorney at the Southern Environmental Law Center. 

Burning wood, which is common in U.S. biomass plants, releases carbon dioxide in even larger amounts than coal per unit of energy generated, Hillaker said.