PILOT plans draw outsider comments

PILOT plans draw outsider comments

By NANCY MADSEN
TIMES STAFF WRITER
TUESDAY, NOVEMBER 10, 2009

A handful of people from outside Hounsfield commented on the proposed Galloo Island Wind Farm payment-in-lieu-of-taxes agreement Monday night.

The PILOT considered at the hearing, held by the Jefferson County Industrial Development Agency, only covers the 84 turbines and ancillary structures on the island and the underwater transmission line in Hounsfield. There will be PILOT negotiations and a public hearing sometime in the future for the part of the 50.6-mile transmission line that runs from Henderson to the town of Mexico.

Wind farms shouldn't qualify for PILOTs, asserted Albert H. Bowers III, Chaumont.

"My understanding is that a PILOT is a reduction in property taxes to entice employment and economic activity," he said. "I don't believe that industrial wind turbines qualify for either."


Instead, he said, wind developers make their money off of tax incentives from federal and state governments.

"I think it's a misuse of the PILOT concept to use the PILOT to encourage a developer who will reach into our pockets at the federal and state level," he said. "All of this comes at our expense."

In its application to JCIDA, Upstate NY Power projected 24 jobs created in the next three years, along with 200 to 250 construction jobs.

JCIDA, using a consultant, devised a two-tier collection on the wind farm PILOT. It would include a base payment of $8,500 per megawatt of rated capacity, plus a supplemental payment based on energy prices, the source of revenue for wind projects. Those supplemental payments would kick in when energy prices top $60 per megawatt, which has happened three out of the past four years.

Clayton Supervisor Justin A. Taylor warned JCIDA that other taxing jurisdictions involved in wind power development may not accept the same system. Clayton and Orleans are the proposed locations for Horse Creek Wind Farm, a 62-turbine development whose application is currently suspended.

Besides the PILOT, Upstate NY Power Corp. asked for a sale-leaseback arrangement with JCIDA. That could save Upstate NY Power about $22.7 million in sales and mortgage recording tax breaks.

A few people talked about the possible harm of the project.

Robert E. Ashodian, Henderson, said the wind farm will hurt property values in Henderson.

"The residents of Henderson will see their very, very brilliant viewshed destroyed by the construction of the project," he said. "There will be a deterioration in our assessed values."

Edward H. DeMattia Jr., Lyme, said, "It will affect me and the value of my property and my neighbors."

County Legislator Barry M. Ormsby, R-Belleville, said local and county officials do understand other towns besides Hounsfield will feel the effects of Galloo Island.

The town of Hounsfield, Sackets Harbor Central School District and Jefferson County will need to approve the PILOT and agree on how they're sharing the proceeds. The base payment for the 252-megawatt project will be about $2.14 million.

Representatives of the town and county said Monday they have a tentative agreement, but would not talk about the specifics.

Before the hearing, town Supervisor Martin A. DelSignore said the Town Council may discuss the PILOT as soon as Thursday. County administrator Robert F. Hagemann III said he expects the town and school district to act on the full agreement before the county Board of Legislators votes on the action.

"Without local approval, it doesn't make sense to have the more macro-level approvals first," he said.

The JCIDA board will consider the PILOT at its next meeting, 8 a.m. Dec. 3 at the Watertown Center for Business and Industry.