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Reading the article it appears to be a drawn out scheme by the mayor to flip land and water rights for cash
Yep, the mayor (Kidston) tried to enrich himself years earlier selling water rights of the town to Toledo. The mayor was successful in using his insider knowledge to buy up the land before the sellers knew there was a development interest, then the mayor sold the land for $2.1m to the company he was lobbying for. So he screwed the town, local governments (that backed loans), and even the company.
For those wondering why the facility was never finished its this part:
"Despite the opposition, the state granted the water permits, explaining that all requirements were met and certain safeguards were in place. But AquaBounty still had a problem: It didn’t have a way of moving water between its farm and the site about a mile east where it planned to withdraw and discharge it — on land owned by Kidston’s company."