If granted, a PILOT would provide Towns $15M more than the NYS Uniform Assessment, but will cost the County and School Districts $29.11M, resulting in a net-loss of $14.11M in revenue.
BY RICK MILLER
Olean Star
ELLICOTTVILLE — The Cattaraugus County Industrial Development Agency board will meet in special session Friday to discuss whether to provide tax breaks for the portion of the proposed Alle-Catt Wind Farm in the towns of Farmersville and Freedom.
IDA board members have been mulling whether to grant tax breaks for the 430-megawatt wind farm that if constructed would stretch across northern Cattaraugus and Allegany counties and southern Wyoming County.
Alle-Catt has chosen to pursue a PILOT in Cattaraugus County similar to ones approved by the IDAs in Allegany and Wyoming counties.
The towns of Farmersville and Freedom have been pressuring county lawmakers and IDA board members for months to approve the Alle-Catt payment in lieu of taxes (PILOT) agreement. Both towns have host agreements with Alle-Catt that are contingent on a PILOT.
Under an IDA PILOT, Cattaraugus County, school districts and the towns of Farmersville and Freedom would receive a total of $41.94 million — including host community payments to the towns over 20 years.
Cattaraugus County would receive $8.24 million over 20 years, the Franklinville and Pioneer school districts would get $7.72 million and Farmersville and Freedom would get $3.58 million from the PILOT and $22.4 million from host community agreements.
If the IDA were to deny Alle-Catt a PILOT and the company was forced to use the state uniform tax assessment model the county, school districts and the towns would receive a total of $55.17 — $13.23 million more.
Under the state’s tax model for wind power, Cattaraugus County would receive $23.26 million over the same 20-year period, an increase of $15.02 million from the PILOT. Franklinville and Pioneer schools would share $21.8 million — a $14.1 million increase. Farmersville and Freedom would receive a total of $10.11 million.
Granting Alle-Catt a PILOT would mean an extra $15 million for the towns at the expense of denying Cattaraugus County taxpayers $15.01 million and school district taxpayers $14.1 million they would receive under the state’s uniform tax model.
The proposed Alle-Catt PILOT is seeking $6.4 million in sales tax exemptions, a $7.5 million mortgage tax exemption and a PILOT valued at $38.7 million.
Until the county legislature gave the IDA permission to hold a hearing on the Alle-Catt PILOT request just before Thanksgiving, the IDA had been hesitant to accept a PILOT application.
The proposed $618 million project has been controversial in Cattaraugus County since it was first proposed in 2017.
The Cattaraugus County Legislature initially approved a resolution in 2018 asking the IDA not to provide tax breaks for any wind projects over 5 megawatts.
In an about-face in November 2024, the legislature approved a resolution giving the IDA permission to hold a public hearing on an application for tax breaks submitted by Alle-Catt.
It’s not clear how the IDA will vote on Friday if a vote is taken as Chairman Thomas Buffamante is asking them to consider. Two IDA board members — Joseph Snyder and Ginger Schroder — are believed to be solid no votes, based on their past statements.
Buffamante and board member Brent Driscoll attended the IDA hearings in Farmersville, Freedom and Yorkshire in late December to gauge residents’ sentiments regarding the wind farm.
The wind farm’s 83 600-foot tall turbines will create noise in rural residential areas where there is currently no such noise. Alle-Catt has yet to get approval from the Public Service Commission for the larger turbines.
“It will cause health problems,” said Schroder. Besides the noise level, many residents will be exposed to excessive shadow flicker from the turbine blades, she pointed out.
There are two other considerations for the IDA to grant a PILOT: the 1% administrative fee the IDA charges to administer a PILOT and whether the wind farm would be safely decommissioned at the end of its useful life.
Decommissioning and removal of the wind farm components is a condition of the IDA granting a PILOT. It’s unclear how much the 1% administrative fee would generate for the IDA.
IDA executive director Corey Wiktor said the special meeting at 9 a.m. Friday is only to consider the Alle-Catt PILOT and deviation from the standard 15-year PILOT to 20 years.
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All Rights Reserved. Star News LLC. Eric M. Firkel.
