Monday, June 08, 2009

IDA to review proposed PILOTs for wind farms

ELLICOTTVILLE — The board of directors of the Cattaraugus County Industrial Development Agency is expected to review a proposed agency policy Tuesday that will establish how much industrial-scale wind farms must pay to local taxing authorities during their incentive periods.

The IDA provides tax exemptions for 10 to 15 years, along with other incentives, to developers seeking assistance and conduit loans. The new Uniform Tax Exemption Policy would affect only wind energy projects and would establish how wind power developers’ payments-in-lieu-of- taxes (PILOTs) are shared among the towns, county and school districts where they are located.

If the board decides Tuesday to move ahead with a PILOT policy for wind projects, a public hearing will be scheduled to take comments on the policy proposal.

According to the meeting agenda, a brief presentation on wind energy will be provided by East Aurora engineer John Schenne before the resolution and public hearing are discussed.

The idea that the IDA will divide up the PILOT shares has been controversial. Some officials and residents believe towns should be able to establish PILOT payments and withhold the tax revenues from schools or the county because the towns take the brunt of the impacts.

IDA director Corey R. Wiktor has maintained the towns are free to adopt zoning or permit laws governing such projects, will be free to negotiate terms for host fees and set up guidelines for the development.

Wind energy experts say these power plants are not economically viable if taxes must be paid and so developers must seek IDA assistance when automatic state real property tax exemptions on alternative energy projects are lifted. Wiktor also stated that wind developers, even with tax incentives, can only afford to pay about $10,000 per megawatt to the local taxing authorities but must know in advance so they can attract bank loans to finance the construction and operations.

Representing the IDA on the committee are Executive Director Corey Wiktor, IDA attorney George Cregg and IDA Board Chairman Thomas E. Buffamante. Several town boards were asked to send three representatives to serve on the committee also. They chose Ashford Town Supervisor Chris Gerwitz, Allegany Town Supervisor Patrick Eaton and Lyndon Town Supervisor Dale Carlson. Cattaraugus County Legislature Chairman Crystal Abers appointed Jerry E. Burrell, R-Franklinville, Donna Vickman, R-Farmersville, and Jim Boser, D-Allegany, as delegates. Several school districts chose Allegany-Limestone Central School business administrator Mike Watson, Franklinville Central School Superintendent Dennis Johnson and Pioneer Central School Superintendent Jeffrey Bowen.

The IDA board will meet at 11:15 a. m. Tuesday in the agency’s office at 3 E. Washington St.

No comments: