Saturday, June 2, 2012

Five-year PILOT for Fort Drum biomass plant to be proposed to municipalities


By TED BOOKER
TIMES STAFF WRITER
SATURDAY, JUNE 2, 2012


A five-year payment-in-lieu-of-taxes agreement for the biomass energy plant to be constructed at Fort Drum by ReEnergy Holdings LLC, Albany, will be proposed to taxing jurisdictions for approval in June.
The Jefferson County Board of Legislators will vote on the PILOT agreement June 5, Carthage Central School District will vote June 11 and the town of LeRay will vote June 14.
The five-year PILOT plan will take effect in 2013, and the plant’s $32 million property assessment will be fully taxable in 2018. The following payment schedule will start in 2013 and end in 2017: 40 percent of an assessed property value of $28 million; 45 percent of $29 million; 50 percent of $30 million; 55 percent of $31 million and 60 percent of $32 million.
ReEnergy CEO Larry D. Richardson said the deal was negotiated over a six-month span and that the five-year payment term — shorter than most PILOT agreements — was agreed on to make the deal palatable for the taxing jurisdictions involved. The company plans to invest about $34 million to convert the post’s coal-fired plant to produce energy using biomass materials.

Link here to full story from the Watertown Times

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