East Hill WInd Farm News Archive >Back to News Archive Reunion unveils PILOT proposal 06/29/06 Cooperstown Crier, Jim Austin Cherry Valley, NY - Reunion Power this week submitted a proposed tax package for the 24-turbine wind farm it hopes to develop three miles east of Cherry Valley on East Hill. The proposal comes one week after the Cherry Valley planning board recommended an 18-month moratorium on major development. If the moratorium is approved by the town board, it could stall the wind farm project. Reunion's tax package proposal could generate as much as $7.5 million for the Cherry Valley area over the 20-year life of the project. "The proposed wind farm would contribute significant funds to Cherry Valley over the long-term," said David Little, Project Manager for Reunion Power. "We believe that annual revenue of this magnitude can make a difference in Cherry Valley, bringing tax relief or needed community projects." Reunion Power has proposed a package that would deliver a guaranteed minimum of $300,000 per year to the town, county, and school district. The proposal was submitted to the Otsego County Industrial Development Agency (IDA) under the Payment in Lieu of Taxes (PILOT) program typically used for new economic development. It is expected that the IDA and Reunion will enter into negotiations for the terms of the PILOT agreement and subsequently the IDA will negotiate the allocation of the funds among the taxing authorities. Under a typical PILOT agreement, funds would be distributed to the town of Cherry Valley, the Cherry Valley-Springfield Central School, and Otsego County. Distribution of the funds will not be decided by Reunion Power. "With the rising costs of high quality town services and the uncertainties of future education spending, the PILOT would provide financial security for the next 20 years," said David Little. "Further, the community would share in the upside of the project by receiving revenues that are linked to the actual renewable energy produced by the wind farm. The estimated average per year is approximately $375,000, with no cap on the upside revenue payment." "The PILOT proposal is the first component of the community benefits package. Negotiations are underway that will offer additional benefits for the community at large," Little said. Town supervisor Tom Garretson said it was too early for him to comment on the PILOT proposal because he had not had a chance to review it. Earlier in the week, Little and Reunion's public outreach specialist Marion Trieste talked about the proposed moratorium. "It does have huge implications for the project," Trieste said, adding that nothing has been approved. Trieste said Reunion had been waiting for the completion of a local wind ordinance that would have taken care of issues that may arise with the project. She said she was under the impression that the moratorium was not aimed at wind power facilities specifically, but at major development generally. She said Reunion is "very close" to being ready to submit a site plan application for the East Hill wind farm. How a moratorium would impact Reunion's plans is a good question, Little said. The town has a choice of a moratorium which is putting off a decision or taking the proactive role through a wind ordinance and making a decision, he said. Little, too, was expecting the local wind ordinance and expressed his surprise at the moratorium. "I think people know a lot about the issues. People are ready for a pro-active decision. An ordinance is a pro-active way of dealing with the issue. I think a lot of people are supportive of it," he said. Little said they are very much on schedule to have the wind farm operational by the end of 2007. He said the reason they haven't submitted a site plan application is that they were working under the guidance of what they understood the town wanted - the wind ordinance. "We could have filed under the current site plan law, but chose not to do so," Little said. There were indications from the town that they wanted to advance their site plan law to give guidance to what would be appropriate for the town, he said. "We were following their lead." Little said they did not want to submit a site plan application if a wind ordinance was being developed which would set standards. "We were working on good faith that the town wanted to take a proactive approach," he said. "We're ready to file. We wanted to be complete as possible. We didn't want to submit an application that created more questions," he said. Little said he still feels "extremely positive" about the project and that "more than ever, feels strong support for the project." He said it is important for people to know the economic benefits and take them into account. "We're very excited to get the word out about what the economic benefit is to the community. I think folks need to clearly understand what the benefits are and what delays could mean," he said. In addition to the PILOT proposal, Little made reference to an "electricity benefit" for people in the town. He declined to discuss details of the benefit, but described it as "essentially a rebate on power bills." Little said he doesn't know what Reunion will do if an 18-month moratorium is adopted. "There's a lot of moving parts. I can't give a definitive answer." Supervisor Garretson said he plans to present the moratorium to the town board during its next meeting July 13. If the board is supportive, he plans to schedule a public hearing on the local law that would create the moratorium. "Jeff [planning board chairman Jeff Wait] and I are both in the same position where we really feel what we're doing is best for the town. I've received a lot of positive feedback from the silent majority. What Jeff and I are doing is something we feel the town needs at this point in its history," Garretson said. >Back to News Archive