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Cattaraugus County Legislature OKs resolution for IDA hearings on Alle-Catt request for tax relief

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By RICK MILLER

Olean Star

LITTLE VALLEY — Six years ago, the Cattaraugus County Legislature approved a resolution asking the Industrial Development Agency not to approve a payment in lieu of taxes (PILOT) agreement for any large wind energy projects. 

On Tuesday, county lawmakers approved a resolution asking the IDA to hold a public hearing on a request for financial assistance from Alle-Catt Wind Energy, which has proposed an 83-turbine wind farm in northern Cattaraugus and Allegany counties and southern Wyoming County capable of generating 340 megawatts of power.

Alle-Catt Wind Energy’s parent company, Chicago-based Invenergy, estimates the cost of the wind project at $618 million, up from $500 million in 2017.

In its application in July for benefits under a PILOT agreement through the IDA, Alle-Catt is seeking $6.4 million in sales tax exemptions, $7.5 million in mortgage recording fee exemption and a proposed PILOT of $855,000 in the first year with a 1% escalator clause. 

Over the term of the 20-year PILOT, the payment would total $18.8 million. That would be divided between three Cattaraugus County towns, Farmersville, Freedom and Yorkshire, two in Allegany County, Rushford and Centerville and the town of Arcade in Wyoming County, plus the three counties and school, districts within those towns.

The payroll for the 10 jobs to maintain the 83 turbines ranges from $530,000 to $910,000, according to Alle-Catt’s application to the IDA.

BRISKY, SCHROEDER, HELMICH AND BOBERG SPONSOR RESOLUTION TO HOLD PUBLIC HEARINGS ON IDA BENEFITS FOR WIND ENERGY PROJECT

Four legislators sponsored the resolution asking the IDA to “exercise its due diligence” and hold a public hearing on Alle-Catt’s application. They are: Joseph Boberg and Richard Helmich of Delevan, Michael Brisky of Franklinville and Ginger Schroder of Farmersville.

After Tuesday’s county legislature meeting, Brisky said the resolution “doesn’t mean this body supports the project.” He added that the legislature “also doesn’t oppose the project.”

Brisky said Alle-Catt is giving every indication that the project will go through even though there are a large number of issues the company must resolve before construction begins.

This contradicts Alle-Catt’s comments to the IDA in July that if they do not receive a PILOT, they will forego any wind development Cattaraugus County.

See: https://oleanstar.com/blog/2024/07/17/ida-accepts-alle-catt-application-for-618-9-million-in-tax-incentives-takes-no-action/

In addition to the PILOT payments, municipalities have received offers of community host agreements from Alle-Catt. Freedom, Farmersville and Yorkshire have pressured county officials and the IDA to grant the PILOT.

Schroder, who is also a member of the IDA and was an opponent of the Alle-Catt Wind Farm, said the resolution only asks the IDA to set a public hearing. 

She said the IDA would hold three separate hearings, one in each municipality. In the end, an independent body (IDA) gets to decide, Schroder added. Schroder is a member of the independent body that gets to decide.

Last month, the IDA sent a letter to the County Legislature that it requires a request in order to hold a public hearing on the Alle-Catt PILOT application.

The resolution states: “Although the County Legislature does not have a vested interest in the project itself, it does have a vested interest in protecting and aiding the residents and taxpayers of the towns of Freedom, Farmersville and Yorkshire to secure any and all entitled financial assistance from Alle-Catt.”

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