In other business Monday night, the City Council approved a payment-in-lieu-of- taxes agreement for Steel Winds II, the second phase of the wind energy development on the former Bethlehem site.
The agreement covers each of the proposed 13 turbines for 15 years, beginning when each is put into place. The payment will be based on $10,000 per megawatt for the 32.5 megawatts expected to be produced.
Each turbine is expected to generate 2.5 megawatts of power and $25,000 of revenue. The city will receive 50 percent; the school district, 40 percent; and Erie County 10 percent.
Under a voluntary agreement for Steel Winds I, only eight of 10 proposed turbines were erected on the site. The city receives $100,000 annually for those, which amounts to the same $12,500 per turbine they will receive under the new agreement.
A significant change in the new agreement is the inclusion of the school district and Erie County in the disbursement of PILOT monies. Neither was included in the original agreement, and the School District had explored options to stake a claim to money from the project.
School Board member Ronald Miller was among those who attended the City Council meeting. Referring to the PILOT for Steel Winds II, he said: “I hope that this fosters a closer communication and working relationship.”
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