EDA details how nearly $40 million will be paid to taxing jurisdictions from Hemlock Ridge Solar

Photos by Tom Rivers: Patti Bushover speaks during a public hearing in the Town of Shelby on Tuesday about Hemlock Ridge Solar. Bushover lives on East Shelby Road and doesn’t want the solar panels so close to her home. Bushover said too much valuable farmland is being affected by solar projects locally. The public hearing was on the tax incentives for the project. The state has already approved the project and held its own hearing on the site plan and environmental impacts.

BARRE/SHELBY – The Orleans Economic Development Agency held public hearings in Shelby on Tuesday and Barre on Wednesday for the tax incentives being offered Hemlock Ridge Solar/AES for its $400 million solar project that would be 82 percent in Barre and 18 percent in Shelby.

The company is slated to receive $6,230,000 in tax abatements in year one. AES won’t have to pay $4,930,000 in sales tax or $1.3 million in the mortgage tax. It also will be exempted from $63,583 in the local property tax.

Instead, the company will begin paying local governments nearly $40 million in a host community agreement over the next 30 years. The agreement starts with $900,000 the first year, which is $4,500 per megawatt in a 200 MW project. The amounts then increase 2 percent annually over 30 years.

Map from AES: The 200 megawatt solar project in Barre and Shelby would be along Crane, Townline and Burns roads near the Iroquois National Wildlife Refuge.

The Orleans EDA also will be paid a 1.25 percent administration fee on a $400 million project or $4,519,804 with $750,000 upon execution of the project assistance agreement (within 30 days of the EDA board’s approval of the project) and then another $3,769,804 at the close of financing.

The agreement includes the following payments over 30 years to these taxing jurisdictions:

• The Town of Barre will receive $14,007,929 over 30 years for an annual average of $466,931, ranging from $295,200 in year 1 to $646,077 in year 30.
• The Town of Shelby will be paid $3,074,911 over 30 years for an annual average of $102,497, ranging from $64,800 in year 1 to $141,822 in year 30.
• Orleans County will be paid $7,923,242 over 30 years for an annual average of $264,108, ranging from $64,800 in year 1 to $141,822 in year 30.
• Albion Central School will be paid $10,407,330 over 30 years for an annual average of $346,911, ranging from $256,540 in year 1 to $455,575 in year 30.
• Oakfield-Alabama Central School will be paid $1,213,558 over 30 years for an annual average of $40,452, ranging from $29,914 in year 1 to $$53,123 in year 30.
• Medina Central School will be paid $2,363,633 over 30 years for an annual average of $78,754, ranging from $58,239 in year 1 to $103,423 in year 30.

AES also will pay $100,000 a year for 10 years to National Grid to help lower local electricity bills. That will be for $1 million total over 10 years.

As a percentage of the funds for the taxing jurisdictions, Barre will receive 35.9 percent, Shelby at 7.9 percent, Orleans County at 20.3 percent, Albion Central School at 26.7 percent, Medina Central School at 6.1 percent, and Oakfield-Alabama Central School at 3.1 percent.

The total community payments include $39,989,603 over 30 years with $38,989,603 to taxing jurisdictions and $1 million to National Grid.

The EDA board of directors is scheduled to vote at 8 a.m. on Monday on the tax incentive plan.

Kirk Mathes, a member of the Barre Town Board, speaks at Wednesday’s hearing in Barre, which was only attended by a few people. Steve Harling of the Planning Board is at left. Mathes said the Orleans Economic Development Agency should have better advertised the hearing. The EDA said the notices were on the EDA website and the agency met its legal requirements by posting in the official town newspaper, The Daily News of Batavia. The Orleans Hub and The Lake Country Pennysaver don’t meet the requirement because they aren’t printed periodicals with paid subscriptions.