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In November of 2007, an ongoing effort by
Noble Power to bring an alternative, environmentally friendly
power source resulted in the success for Franklin County. Now
home to two “Wind Tower Parks” with yet more planned, Franklin
County is fast becoming home to alternative energy products. The
CFIDA managed the PILOT negotiations on behalf of the project.
On 27 November the Franklin county Industrial
development Agency closed with Noble Environment Power on their
application for tax relief. Noble Power obtained from the Agency
– with the consensus of the taxing jurisdictions – real property
tax reduction, mortgage recording tax exemption and sales and
use tax exemption on their $226 million project in the Towns of
Bellmont and Chateaugay.
 This was the Agency’s first application of a
straight lease transaction in its organizational history. “ This
was not the type of project one want to cut their teeth on,”
commented Executive Director Jackson. “This was an immense
educational process for everyone involved.” In negotiating the
trans action the Agency was sensitive to ensuring local control
in the approval process and respect for the State Environmental
Review Process. “It was my intent to access the impact of these
towers on the character of the community with respect to follow
on investment,” said Jackson.
However, According to the Center for
Government Research this was the first time anyone asked the
question whether these “wind farms have a positive, negative or
neutral impact on follow on investment.” “What is the impact
within the view-shed for housing starts or business formation?”
“Can we measure the impact before or after these things go up?”
These questions could not be objectively answered for now.
Mark Lyons of Noble Power – who was the
company’s principal negotiator – initially objected to the
Agency’s review process as excessive but came to respect the
Agency’s approach. In a written statement to the Chairman of the
Industrial Development Agency, Lyons wrote, “Executive Director
Jackson and his staff conducted a thorough application process
for these two projects, which stand as a model for future
projects in Franklin County and elsewhere in New York State. The
result is a PILOT and Community Host payment structure that
fairly and appropriately allocates benefits, allows these
projects to move forward, and creates an investment fund through
which the Agency can promote future development opportunities.”
The outcome for Noble Power has been a
substantial savings in its real property tax obligation in order
that the firm could secure financing. `There is no `undue
enrichment here” cited Kent gardener of CGR in his cost-benefit
analysis to the Agency’s savings. Project savings over the term
of the 15-year PILOT equate to over $67M.
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