By RICK MILLER
Olean Star
ELLICOTTVILLE — An application for tax benefits for the proposed $618.8 million Alle-Catt Wind Farm under consideration by the Cattaraugus County Industrial Development Agency appears to have a take it or leave it provision.
Alle-Catt Wind Energy LLC, a subsidiary of Invenergy, the Chicago-based alternative energy giant that first proposed the wind farm seven years ago, addressed the application at an IDA meeting Tuesday.
The proposed 340 megawatt wind farm has gone from 116 turbines to 83 with the decision by Invenergy to use a larger turbine requiring a taller tower and blades measuring 591 feet from ground to blade tip.
Thirty-eight of the turbines are proposed for Cattaraugus County — 25 in Freedom and 13 in Farmersville — producing an estimated 58.8 megawatts of electricity. At $5,000 per megawatt, the payment in lieu of taxes or P.I.LO.T. for the two towns, school districts and Cattaraugus County would be more than $2.9 million a year.
In addition to the turbines in Cattaraugus County, there would be others in the towns of Rushford and Centerville in Allegany County and the town of Arcade in Wyoming County. There would also be a 10-mile power line to carry the electricity to the grid.
IDA member Ginger Schroder, a county legislator from Farmersville and a long-time opponent of the wind farm, told Alle-Catt local representative Sean Perry and attorney Dan Spitzer Invenergy had given everyone the impression that the project would proceed with or without IDA incentives including sales and mortgage tax exemptions and a P.I.L.O.T.
On page 3 of the application, Alle-Catt states: “Large scale renewable energy systems are not financially viable absent financial assistance for IDAs. While there are some tax exemptions that already apply, such as sales tax exemption for production equipment, absent significant assistance on the remaining sales tax cost, real property taxes and mortgage recording tax, this project is not financially viable.”
Perry told the IDA board, the “layout would change should the IDA choose not to grant incentives.” The 38 turbines in Freedom and Farmersville could shift to sites in Allegany and Wyoming counties, he added.
Spitzer explained that without Cattaraugus County IDA benefits, host community agreements in Freedom and Farmersville would not go into effect.
Invenergy is seeking IDA assistance for the proposed Alle-Catt project in the three counties because they can be sure of what their costs will be over time, Spitzer said. State aid to companies involved in these large wind and solar projects can change year by year. “Invenergy wants long-term, stable costs.”
Spitzer also said the project would use “local materials and labor as much as possible.” He said finding skilled workers is one of the project’s greatest concerns.
“It’s hard to find employees. If they are here, we want to find them,” he added. The project needs about 400 construction workers
The project, which will get underway in November with tree removal, will be competing with other big projects for workers, Spitzer said. The company earlier this month started construction of a $5.1 million operations center in the town of Yorkshire
Alle-Catt Wind Energy LLC submitted an application for tax benefits for its proposed $618.8 million wind farm with the Cattaraugus County Industrial Development Agency.
There will be about $81 million of taxable costs and services for the project. About $6.4 million in sales tax, $7.5 million in mortgage tax and a first-year P.I.LO.T. of $855,000 with a 1% annual escalator are listed in Alle-Catt’s application to the IDA. There are also about $1.6 million in annual host community payments
Of the P.I.L.O.T. payments, about 55% would go to school districts, 25%-30% to the county and 10%-15% to the towns.
Alle-Catt estimates an annual payroll after completion of the wind farm at between $535,000 and $910,000.
The total cost of turbines and related equipment is $270.8 million. There is another $115.6 million in soft costs such as legal, architectural and engineering, and $51.1 million for utility interconnection.
Once Perry and Spitzer left the meeting, Schroder called the revelation that Invenergy planned to seek IDA incentives “shocking,” particularly since the company had indicated it would forego them and finance the project through state incentives. “They told everybody this project was on with or without IDA incentives,” she stated. “Leaseholders signed because they were told it was going to happen regardless.” Host community agreements were said to be “dependent on IDA involvement. Now we are being told otherwise. Aren’t you shocked?” she asked fellow IDA board members.
“We are going to hold the ball on this project,” Schroder said. “We are now going to be responsible for putting turbines in Cattaraugus County.” IOf the IDA does not participate, “it will avoid” the county. “It’s a rope-a-dope.”
Schroder also noted there are no provisions for additional studies of noise and sun flicker from the larger turbines and blades.
“The SEQRA (State Environmental Quality Review Act) is essentially done,” said IDA executive director Corey Wiktor.
The IDA got permission from the Cattaraugus County Legislature leadership to accept the application. Several years ago, county lawmakers passed a resolution asking the IDA not to grant incentives to large industrial-scale wind farms. While that resolution is still in effect, the IDA is an independent body although it appoints IDA members. The IDA requires letters of support from towns impacted by alternate energy projects. IDA chairman Thomas Buffamante said he is also asking the county legislature for a similar letter.
The IDA’s dilemma is that while it can reject the Alle-Catt project in this county by refusing to grant tax incentives, the towns stand to lose millions of dollars in host community fees and P.I.L.O.T. payments.
No public hearing was set for the Alle-Catt application.
