The Jefferson County Industrial Development Agency disregarded county lawmakers in resubmitting for approval the same payment-in-lieu-of-taxes agreement for the Galloo Island wind farm, which lawmakers questioned.
The agency raised expectations that it would revise the PILOT to address growing doubts about the plan when IDA officials withdrew the proposal from consideration at a Board of Legislators meeting earlier this month. Now the same PILOT is back. The JCIDA intends to resubmit the same proposal despite objections that county residents should not provide millions and millions of dollars in tax subsidies.
Lawmakers questioned the 20-year term of the proposed PILOT rather than the standard 15-year plan. Has that changed? No.
The route of the proposed transmission line through parts of southern Jefferson County with the possible use of eminent domain has been in doubt. Has that been resolved? No.
The cost of decommissioning has been raised. Is that part of the PILOT? No.
Legislators requested a uniform PILOT agreement instead of one specifically designed for this project. Is this a policy for all wind power developers? No.
Absolutely nothing changes. The JCIDA offers only promises of more agreements to come on decommissioning and a project development agreement to hire local workers and support county businesses.
Huge local tax subsidies and federal stimulus funds are underwriting the project. The 20-year PILOT proposal gives Upstate NY Power more than $5 million in tax breaks beyond what they would receive in the standard pilot. County taxpayers will pay for that lost revenue. Yet, the JCIDA did not even bother to take Upstate NY Power Corp. up on its offer to accept a shorter 18-year agreement worth another $5 million to the county, town of Hounsfield and Sackets Harbor School District.
In exchange, Upstate stands to receive $150 million in federal stimulus funding if it meets construction schedule guidelines. It will get another $23 million break on mortgage and sales taxes for the wind farm at a loss of $4.5 million to Jefferson County and $5 million to the city of Watertown, towns and villages that could use it to build a street, replenish reserves or hold the line on property taxes.
Contrary to JCIDA claims that the proposed PILOT will be the exception to a uniform policy, it sets a precedent for all other wind power developers to demand the same terms in their PILOT .
The PILOT remains a win for developers exploiting Jefferson County's natural resources at the expense of county residents.
The JCIDA had its chance to negotiate a PILOT that will serve Jefferson County. It did not. Now it's time for the county Legislature to assert more leadership.
We do not object to the wind farm on Galloo Island. However, there should be a standard 15-year PILOT, no sales tax exemption, no mortgage tax exmption, and an underwater route for the transmission line to Oswego County that does not go through some of the best farmland in Jefferson County.
The Legislature should make clear those terms for a PILOT and then let JCIDA reach an agreement, or better yet take over the negotiations.
No comments:
Post a Comment