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| Local Taxing Jurisdictions Agree to Amended PILOT Agreement With Owners of Maple Ridge Wind Farm and Extension Through 2031 01/06/19 11:00am By: Nick Altmire |
amended Payment in Lieu of Taxes(PILOT) agreement with the owners of the Maple Ridge Wind Project for the final fours years of the original agreement, while extending the PILOT through assessment year 2031. The previous PILOT agreement was set to expire during assessment year 2021, but project owners, Flat Rock Windpower LLC and Flat Rock Windpower II LLC, requested to renegotiate the final four years of the agreement due to financial downturns and assessment challenges. Representatives from the affected tax jurisdictions together with the Lewis County Industrial Development Agency (IDA) held numerous meetings with the owners of Maple Ridge Wind Farm to negotiate the amendment to the existing PILOT and the extension. The total value of the new PILOT over the fourteen year period will result in $42 million in payments from the Maple Ridge Wind Farm to be split between the taxing jurisdictions. The split will use the 2005 tax rates from the original agreement for tax years 2018, 2019 and 2020 and the 2018 tax rate for the extended years of 2021 through 2031. The eight jurisdictions and the approximate percentage each receives (based on the 2005 rate) are as follows:
Under the original PILOT agreement, Maple Ridge was to pay $8,075,250 for each year from 2018 to 2020. The renegotiated rate will be $7 million for 2018, $6 million for 2019 and $4 million for 2020. The payment for 2021 will be $3.5 million, with a $2.5 million payment for the years 2022 through 2024, After that the payment will settle at $2 million annually for the remainder of the PILOT. Provisions of the amended PILOT will include the potential for variable payments in addition to the annual base payment, based upon market price triggers, PPA price triggers, and capacity adjustments, if any. The amended PILOT also contains language that will require Maple Ridge Wind Farm owners to hold periodic meetings with representatives of Fort Drum to address the Army's concerns and issues posed by the project, including curtailment periods. The next step will be for the IDA to execute to agreed upon amended PILOT agreement between the taxing jurisdictions and Maple Ridge Wind Farm. IDA Executive Director Eric Virkler anticipates this will take place in the next month or so. Amended PILOT payment chart: |
