Vote on wind farm PILOT up in air
The proposed payment-in-lieu-of-taxes agreement for Galloo Island Wind Farm could be voted down today by the Jefferson County Board of Legislators — if it even comes to a vote.
The Planning and Development and Finance and Rules committees never held votes on the PILOT, so the full board must vote to suspend the rules to consider the resolution without committee approval.
The rule suspension requires a two-thirds majority, or 10 votes.
Although Chairman Kenneth D. Blankenbush, R-Black River, hasn't counted votes, he said, "There's a good chance that it might not make the floor tomorrow."
Barry M. Ormsby, R-Belleville, chairs the Planning and Development Committee that first aired a resolution on the PILOT on Nov. 17.
"I don't know how it's going to go at this point," he said. "I know there's a large percentage of the legislators that want to move forward and get a vote in one way or the other."
If it passes that hurdle, Legislator Scott A. Gray, R-Watertown, said the PILOT will go down with at least eight opposed on the 15-member board.
"There is at least one who wants to kill it and there may be a consensus to send it back to the IDA to re-enter with a true uniform-type PILOT that is not tied to a specific project at any time, which is what our original charge to the IDA was," he said.
The board asked the Jefferson County Industrial Development Agency to develop a uniform tax-exempt policy for all proposed wind projects in the county in May 2008. JCIDA moved forward with the Galloo Island project separately after the developer, Upstate NY Power Corp., presented a timeline that required local approvals done by the end of 2009 to qualify for a 30 percent rebate through federal stimulus money.
Mr. Blankenbush said if the Legislature does not vote to suspend the rules, he will ask board members what they'd like to do with the PILOT.
He expects it would go back to JCIDA, though. Issues that may have to be addressed include the amount of the PILOT and sharing PILOT proceeds with neighboring towns that also feel the effects of projects.
"We'd have to get a more uniform PILOT together so we don't have to go through this every time a wind farm comes to the area," he said. The local jurisdictions "should be making the decision."
Mr. Blankenbush hasn't counted votes on the rule suspension or PILOT vote or told anyone which way he'll vote.
"This particular project has been such a controversial project that I didn't want to get into pressuring any of the legislators into a vote on this project," he said. "I know it's going to be a close vote."
The resolution allows for deviation from a normal PILOT in giving a 20-year term instead of a 15-year term. It also divides the pot of money by fixed percentages of 15 percent to Hounsfield, 35 percent to Jefferson County and 50 percent to Sackets Harbor Central School District. Normally, PILOT payments are based on the proportional distribution of property taxes among the jurisdictions.
The three jurisdictions will receive a base of about $54 million over 20 years, plus any supplemental payments based on electric price thresholds on the state wholesale market.
Also tonight, the board will consider two resolutions that would protect the county in case the project shut down. The first asks for an agreement with JCIDA that the agency will not vacate the PILOT to the property for a year. That keeps the county from paying full property taxes on the wind farm to the town and school district if the developer pulls out.
The second resolution allows Mr. Blankenbush to authorize a decommissioning agreement with the developer and the town of Hounsfield. The decommissioning bond would increase as required by the county to match current costs.
BUSY WEEK FOR GALLOO ISLAND
Here is a schedule of actions contemplated this week on the Galloo Island wind farm proposal.
■ Today: County Board of Legislators will consider the payment-in-lieu-of-taxes agreement, 7 p.m. in the board's chambers, Historic Courthouse, 195 Arsenal St.
/ Wednesday: County Planning Board will review the site plan, 2 p.m. in second floor of the County Office Building, 175 Arsenal St.; Hounsfield Planning Board will act on the site plan, 7 p.m. at the town offices, 18774 County Route 66
/ Thursday: Jefferson County Industrial Development Agency will vote on the PILOT if the county board approves it, 8 a.m. at the Watertown Center for Business and Industry, 800 Starbuck Ave.
