Tax Abatement for Wind Farm Possible
Glasscock County’s Commissioners’ Court met in special session April 28 with representatives of Wind Plus, a renewable energy company. In six to eight weeks, the company is likely to ask the county for a tax abatement for a wind farm it is planning to construct in the county. At a later date, the company may also ask for easements along some county roads for construction of transmission lines. The company has leased four sections of land in the northeast part of the county. The leased sections are: Sec. 4 (Ray Walker), 6 (Marck Schafer), 10 and 12 (Emma Schafer and Rosie Roberts), Blk. 32, T-3-S, T. & P. RR. Co. Survey.
The company intends to build a wind farm of 42 turbines, which is to be called the Schafer Ranch Project at an estimated cost of $105 million. The turbines are expected to generate 75 mega watts of electrical power, which will be transmitted over about eight miles of TXU lines to a Forsan substation and sold to retail electric providers. The construction will take 9 to 12 months, with an expected completion date of January 2007. The life of the project is expected to be more than 20 years.
Company May Employ Locals During Construction
The company representatives said construction of the wind farm will require 50 to 100 contract employees, and that they have asked contractors to use local people wherever possible. Test towers will soon be installed in order to compile data for several months. A maintenance crew is to remain after the project is completed.
The Wind Plus representatives explained to the county court what steps would be necessary to set up the legal structure necessary prior to actually voting for a tax abatement at a later date. There was no definite percentage of abatement discussed, nor was there an estimate as to the taxable value of the installation.
The representatives told the court that Howard County has granted them a 70 percent abatement on 10.5 sections for 10 years and that Sterling County has given 70 percent for 10 years on 12,000 acres. State law allows counties to abate up to 100 percent of a property’s assessed tax value.
School districts are not allowed to give tax abatements; so here, Glasscock County and the Glasscock Groundwater Conservation District are the only taxing entities which could do so.
County to Create Reinvestment Zone
According to materials the Wind Plus representatives provided, tax abatements are available only in “reinvestment zones.” An area may be designated as a reinvestment zone if, as a result of the designation, it is reasonably likely that it would attract major investment and be a benefit to the property and would contribute to the economic development of the taxing unit.
The county commissioners’ court may designate any qualifying area of the county as a reinvestment zone. To do so, it must describe and designate zone boundaries and must hold a public hearing with seven days notice by publishing in a circulated county newspaper and delivering it in writing to the presiding officer of the governing body of each taxing unit. A designation is granted for five years and may be renewed for periods not exceeding five years.
Guidelines and Criteria to be Established
The governing body of each taxing entity must establish guidelines and criteria for tax abatements; adopt a resolution stating the taxing unit elects to participate in tax abatements; finalize the abatement agreement (governing body may exempt all or part of the increase in property value for a period of up to 10 years); ensure that the abatement agreement and property itself meet the established guidelines and criteria, and finally, approve the abatement agreement in a formal resolution.
In answer to questions, the Wind Plus representatives said they chose Glasscock County because they were able to get land in a place where people are not the “not in my back yard” types; the wind data and terrain of land were right; they were able to get right of way for interconnection to the Howard County project, and transmission lines are accessible for getting generated power out. They also said they would be able to condemn land if necessary to get right of way necessary to access the lease, but they would do that only as a last resort and do not expect to do so.