Committee Debating PILOT Vs. Full Taxation

HAMMOND - If the town decides to opt out of section 487 of New York State's Real Property Law, any company looking to build a windmill farm in Hammond, according to Jane Powers, director of St. Lawrence County Real Property Office, would be required to pay taxing jurisdictions a total of $42,929 for each two- megawatt turbine.

Mrs. Powers was the guest speaker Monday evening, as the wind advisory committee to the Hammond Town Board met at Hammond Central School.

Section 487, Mrs. Powers said, provides exemption from taxation for certain solar or wind energy systems or farm waste energy systems. While section 487's current effective date stands at Jan. 1, 2011, Mrs. Powers said that Governor David Paterson is currently working with NYSERDA (New York State Energy Research and Development Authority) to extend the deadline to Jan. 1, 2013.

"If the deadline is not extended," she said, "all turbines would be subject to full taxation."

With the state's goal of producing 25 percent of its energy from renewable sources by 2013, Mrs. Powers said, section 487 allows for taxation exemptions for a period of 15 years. She said she feels the deadline will be extended.

Based on Jan. 2010 town and county tax rates and school tax rates from the current calendar school year (2009-2010), Mrs. Powers made her best estimate as to what opting out of section 487 would mean for the town when it comes to taxation.

By opting out of section 487, Mrs. Powers said, there is no Payment in Lieu of Taxes (PILOT) agreement and a wind company would be fully taxed at the current rates for each individual turbine.

Each two-megawatt turbine, she said, was hypothetically assessed at $2 million. Full taxation for such a turbine, Mrs. Powers estimated, would work out to be $42,929, or about $16,000 for St. Lawrence County, $900 for the town, $900 for the Hammond Volunteer Fire Department, $1,200 in chargebacks, nearly $24,000 for Hammond Central School, and another $50 for the Hammond library.

The same two-megawatt turbine, under a PILOT agreement, Mrs. Powers said, would see a wind company responsible for a total of $16,000 in taxation, or approximately $6,000 for the county, $300 for the town of Hammond, $450 in chargebacks, almost $9,000 for HCS, and another $20 for the library.

"There are a lot of players involved," Mrs. Powers said. "Its a balancing act and someone is going to have to negotiate.

"If you want the project," she continued, "you will be asked by the wind company to enter into a PILOT agreement. If you don't want the project...."

Wind advisory committee member Steven Sarfaty asked why the town would want to go with the PILOT option, given the huge discrepancy in tax payments.

Mrs. Powers explained that wind farms are expensive to construct and maintain and that wind companies "would expect taxes to be reduced."

Following Mrs. Powers' presentation, the committee went back to work on its charge of taking a "hard look" at the existing wind ordinance.

"We've been here how many times now, and accomplished nothing," said Leonard Bickelhaupt, committee member. "We've got to pick something - I don't care what - and go with it."

Facilitator David B. Duff asked the committee to identify large areas of concern that all committee members can address for next week's meeting, to be held Monday at 7 p.m. in the Village Hall.

"This committee needs momentum," he said. "A list of major issues must be prioritized."

Three primary concerns were named, including economic viability (to include property value effects), setback distances (to involve noise, shadow, health/safety, wildlife, and visual impacts), and "processing issues" (i.e. complaint resolution, decommissioning, ownership succession, etc.).

The topic of noise will be addressed at next week's meeting.

Committee members now have versions of the law that they can "apply an electronic sticky note" to, addressing areas of concern and issues they may have with certain sections within the law. Mr. Duff suggested committee members start listing resolutions along with their concerns.

Committee members will be making their suggestions as to noise issues via e-mail over the course of the week.

The goal is to end up with one working document containing all committee member's additions.