A model project

Galloo PILOT is now the standard

Now that the payment-in-lieu-of-taxes agreement for the Galloo Island Wind Farm has been approved, the Jefferson County Industrial Development Agency has declared a moratorium on accepting tax abatement applications from other wind developers.

That is disingenuous. After setting the template for wind PILOTs with the Galloo deal, the JCIDA board says it will now develop a uniform tax-exempt policy for such projects.

Why was that not done before Jefferson County relinquished its right to have the Galloo developer pay sales, property and mortgage taxes?

The JCIDA board and Jefferson County Legislature have endorsed a sea-change in tax policy for the county. In a rush to judgment, they approved an ad-hoc agreement that exempts the developer, Upstate NY Power Corp., from paying millions of dollars to local taxing jurisdictions.

After approving all this, and deviating from the standard 15-year PILOT to increase it to 20 years, Jefferson County officials want to contemplate how to handle the next wind developer.

But in all fairness, the Galloo PILOT should set the standard for future developers, wind and otherwise. Why should new motels in the county not receive a similar sweetheart deal? Why should any company breaking ground in Jefferson County not expect tax exemptions similar to what Upstate received?

All developers should get a 20-year pilot from Jefferson County, complete with special exemptions afforded the Galloo developer. That should happen without the county bothering to know what the developer's project will cost and what the earnings will be.

After all, that has happened with the Galloo project. Referring to Upstate, JCIDA attorney W. James Heary articulated county policy: "We don't necessarily need to go into the nitty-gritty of their plan."

So far as future wind development is concerned, the Galloo model now serves: approve the site for wind turbines, work out the details for the transmission line later.

What is fair for one is fair for all.