IDA Approves Wind Farm Moratorium
IDA Approves Wind Farm Moratorium
A five-month moratorium on incentives for wind farm development was approved by the Cattaraugus County Industrial Development Agency's (CCIDA) Board during its June 21st meeting as the agency struggles to identify the actual host community benefits for renewable energy projects.
The topic wasn't on the agenda, but the decision followed an impromptu discussion with solar developers who asked to attend in response to last month's board decision to put new solar applications on hold until the end of November.
CCIDA Director Corey Wiktor introduced representatives of New Haven, Connecticut-based Olivewood Energy, a solar and energy storage developer attempting to build two rural 20-megawatt solar arrays on Martin Road in Machias and Bakerstand Road in Franklinville. The firm sells wholesale power to the state Energy Research and Development Authority (NYSERDA).
"Last month when the Board elected to place a moratorium on solar it was the right thing to do and we'll return to the metrics," Wiktor said. He explained IDAs are evaluated on job creation in exchange for tax incentives, he said, but CCIDA's "biggest gripe" is creating one job in exchange for incentives of $4 million. He said he has learned that there are between 100 and 200 laborers working on solar projects in the three Southwestern New York counties, but he asked if those temporary jobs on 4.5 megawatt projects bring a fair return on a $5 million property tax abatement.
Olivewood President Mike Caplan, along with his colleague Domanic LaBell, said they attended the meeting along with their siting advisor Dave Zilker, a local realtor and County Planning Board member, to listen. They said PILOTS can provide certainty and are a planning tool. Caplan said there are tradeoffs and risks involved in renewables. The men explained there is a difference between large-scale industrial solar and the community solar projects. In siting, they said, brownfields sites are smaller and hard to find, and ag land might be preferred because "not all prime farmland soil is prime" in Cattaraugus County.
Wiktor and the Board members in turn brought up issues they are researching, such as an apparent lack of transparency in financing, subsidies and utility rates, misleading consumer participation discounts, host community liabilities, property assessments, legal challenges and the fact that the agency's payment-in-lieu-of-taxes (PILOT) formula set in 2010 is lower than most counties, at $5,000 per installed megawatt for wind for 15 years and $6,000 per megawatt for solar over 25 years.
NYSERDA recommends only $2,000, but most IDAs charge "exponentially more" for PILOT payments, most between $8,500 to $12,000 per megawatt. One told Wiktor they charge $99,000 per installed megawatt for PILOTs. Recent laws have taken away the host community's home rule authority and opened IDAs to pressure campaigns by developers to "green light" the power projects before applications will be accepted at the state level.
"Should this board be the rationale of the public/private decision that here's a good investment," Wiktor asked, noting he is obtaining PILOT agreements from other IDAs. Also, he noted, Town of Freedom officials asked him to verify the Alle-Catt Wind developer Invenergy's promotional literature about CCIDA's PILOT information but the agency has no application or specific information to use as a basis to respond.
After the wind moratorium was approved to run concurrent with last month's solar moratorium, Wiktor said it will not affect any energy projects which have already submitted applications and are in process. He promised to report further on his research in July.
The Board also heard from Olean Center Mall owner, Angelo Ingrassia of Rochester, who intends to apply for financial assistance in a phased "redevelopment and reimagining" of the 355,000 sq. ft. retail location that is spread over four parcels along North Union Street in the city. The project wasn't on the meeting agenda, but in an 11-page letter Ingrassia said he hopes to submit an application in the future for a plan to demolish the former Bon Ton wing and develop 30,000 square feet of ground-level retail space, with a four-level, 72-unit senior housing facility above it.
Ingrassia, a former auto dealer who owns and manages commercial real estate, described his 2016 purchase of the blighted Irondequoit Mall in Rochester and its similar redevelopment concept that includes retail renovations, and construction of a Community Center, a transit hub and a 167-unit senior living facility.
In 2020 he obtained the City Assessor's agreement to freeze the property value at $450,000 through the 2024 tax year and intends to ask the CCIDA to base a 25-year PILOT on that figure and to collect PILOT payments on only those portions that receive a final certificate of occupancy. He also requested a waiver on the agency fee and flexibility in the duration of sales tax exemption benefits. He described his concept as a work in progress.
Wiktor said the project will require a PILOT deviation for some of the terms but it can be an important one for the city and he is working with Ingrassia to prepare the application materials for the July 26th meeting agenda.
The Board then adopted three inducement resolutions. Megalomania LLC and Marquee Brewing plans to convert a former drug store at 12 S. Main, Portville, to a brewery for alcoholic and non-alcoholic seltzers and sodas to be sold at retail and wholesale. One employee will be retained and three part-time workers will be hired, with the promise of three full-time positions created for an annual payroll of $130,260. The company will invest $111,503 for equipment and renovations, for which about $8,900 in sales tax exemptions have been granted.
County Line Recovery, Inc. and its parent, MRC Companies, will receive incentives to invest $1,050,000 in a state-permitted waste management facility for construction and demolition debris, recyclables, and a transfer station at 7023 Henrietta Road in the Town of Ashford. The project is designed to assist municipalities, especially Cattaraugus County, in sorting recyclables and finding markets for those materials. The owners intend to retain four part-time workers, with 10 new part-timers to be hired within two years of the project's January 2023 completion, for a payroll of $7,624,259 over 10 years.
The deal grants County Line exemptions in state and local sales and use taxes on purchases of about $1 million, mortgage recording taxes and a partial real property tax abatement in a 10-year PILOT arrangement worth $274,918 in incentives. County Line will make PILOT payments totaling $247,194.
New York State has conducted a review and declared the project will have no significant environmental impact, noting the facility will accept up to 300 tons daily of municipal solid waste and construction and demolition waste and 50 tons of recyclables, along with electronics, yard waste and brush. Waste will be sorted and transferred to the Chautauqua County Landfill. The Town of Ashford held a public hearing on the proposal on June 20th, but the nature of comments, if any, were not made known.
Lebanon Seaboard Corp. will receive incentives to purchase the former Mosler Safe and Dave's Christmas Store based on a deviation in the usual criteria for a PILOT because its company, Penn Turf, is losing its lease in Arcade. Penn Turf produces the Green View Brand, Seeding Success, for retail customers, and also produces PennMulch Seed Accelerator for professionals and retailers.
The deviation will include a 15-year PILOT deviation, with real property tax abated for the first 10 years, then $23,000 to local taxing entities for each of the final five years. Lebanon will invest $4,025,000 and purchase the 56,000 square foot manufacturing property on 4.5 acres at 69 S. Main St. in Franklinville. In addition, a 55-foot tall "penthouse" addition to accommodate a portion of the manufacturing process, electrical upgrades and other construction are also planned.
Newspaper, text books and mail are recycled and processed into turf with an absorbent polymer and fertilizer. Sales tax incentives of $12,320, and property tax abatements of $245,255, are included in the deal.
The move will keep the manufacturer in New York State, retaining 5 employees, and creating two new full-time positions within two years of completion on Dec. 31, 2022, for a payroll of $9,885,000 and annual salaries ranging from $36,000 to $102,000.
Board members briefly discussed potential impacts and issues the $500 million Great Lakes Cheese plant relocation will pose for the host communities of Franklinville and Farmersville, and agreed to look into the possibilities for sponsoring a planning consultant grant application to help them update planning documents and manage the growth that is expected in the area.
Wiktor expressed hope that the momentum will continue, with potential for updating feasibility and traffic studies. He added that a key group of officials in the two towns brought the project in.
He then asked the Board to recognize deceased Farmersville Town Supervisor Pete Lounsbury, for his dedication to the county and the community, stating, "He was one of the good guys. I'm going to miss him and his team.”
The Board will next meet at 11:15am July 26th in the Olean Business Development Corporation offices.