Tuesday, August 22, 2006

Steuben County Industrial Development Agency

Windmill Projects Update

Mr. Sherron distributed a handout showing the progress of the various windmill projects in the County. He stated they have put together a proposed PILOT for all of these projects. Hopefully following that, we will be going forward with getting compliance from the towns. We don’t want to move forward unless the towns sponsor these projects. The PILOT is $5,300 per rated mega watt. There would be a 4 percent increase per year, escalator fee. In year 2020, the rate would be $9,300 per mega watt. In addition, we are looking at providing up front relief for development. They do get a sales tax break through a letter of agency, which is a lease, lease back. There will be a $1.2 million investment if these projects go forward.

Mr. Sherron commented West Union, Greenwood, Jasper and Troupsburg are areas that are considered good wind resources. We are working with Bell Independent Power on a bio-mass fuel project. This is a 30 mega watt producing facility and we are the lead agency. There is a brokered agreement and this could go to the Avoca Gas Project area. The facility would use wood chips. They would work with the forestry industry to cull trees, and work with loggers to take the tree tops and grind them. This will be a clean burning operation. We are seeing more conversions to ethanol, butanol, bio diesel, etc. We are keeping all of our options open. If these operations become a reality, the hope is to provide a location in the Avoca Gas Project area.

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