Friday, March 12, 2010

Howard: PILOT for wind farm gets OK

Howard, N.Y.

Plans to set up a 25-turbine wind farm in the Town of Howard took another step forward Thursday, with the Steuben County Industrial Development Agency approving property tax reductions for the project.

The board approved a 20-year payment-in-lieu-of-taxes – or PILOT – agreement for the EverPower project, Howard Wind.

The amount of taxes the energy company pays will be based on the amount of electricity the wind turbines produce. It will pay $8,300 per megawatt the first year, with 3 percent fee increases beginning the second year.

“We’re obviously very happy that the project is moving forward,” said Kevin Sheen, head of business development for EverPower Renewables in Howard.

PILOTS reduce property taxes for 15-20 years in return for annual payments divided between the town, county and school districts affected by the project.

The payments increase gradually every year until the property is at full taxation by the end of the agreement.

The split between Steuben, Howard and two area school districts has not been determined, but the total first year payment estimate is $415,000-$522,900.

SCIDA’s approval is based on similar approval pending in the town of Howard, and the school districts.

The town has not yet issued permits or collected fees, Sheen said.

Sheen also cleared up information posted on EverPower’s Web site reporting leases held by town officials.

Sheen said the most recent report, filed with the state Attorney General’s office in December, needed clarification.

The developer’s December report indicated brothers Dale and Lowell Smith had lease agreement options for 20 locations on Smith Farm, with each man individual leaseholders, as well.

What was not as clear in the report is all 20 locations were dropped from consideration, and there are no plans to set up any turbines on Smith Farm, Sheen said.

“It is not as clear as it needs to be,” Sheen said. “What this does do is say they have a financial interest.”

Dale Smith is a member of the town planning board, and Lowell Smith is a member of the town board.

The brothers jointly own land scheduled for two leases, Sheen said.

The report also does not include town planning board alternate member Wesley Coots as a leaseholder, Sheen said.

Other town officials with leases for turbines location are Planning Board Chairman Jack Bossard and Town Councilman William Hatch.

Sheen stressed any official on the town or planning boards with leases has not voted on wind farm issues.

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