(July 7, 2016) Following the Worcester County Commissioners’ decision to table the discussion at its June 21 meeting over a requested tax abatement to support the development of solar facilities in Worcester, the commissioners rejected the proposal on Tuesday.
Longview Solar, a joint venture between Seattle-based Tuusso Energy, a utility-scale solar developer, and Elemental Energy, based in Portland, Oregon, has two solar power facility projects slated for Worcester.
The first is a 20-megawatt solar photovoltaic project, the Heron Solar Farm, which would be constructed on an 190-acre portion of an approximately 285-acre private property located south of Libertytown Road, a few miles west of Berlin.
Also the Seabeach Solar Project, a 15-megawatt photovoltaic project, would be built on three parcels of land totaling 125 acres on the north side of Public Landing Road, approximately one mile east of Snow Hill.
On Tuesday, Phil Thompson, county treasurer and finance officer, cautioned against the proposal noting that it could create a financial quagmire.
“In a nutshell, I support the development and the implementation of solar facilities in the county,” he said. “I do, however, have a sincere concern that any significant change to our existing tax structure in the form of abatements or pilot agreements could have long-lasting implications.”
Thompson also pointed out the project already qualifies for a 50 percent tax abatement through the state.
“I feel these projects should be viable and financially feasible on their own without any form of subsidy or abatement,” he said.
After tabling the topic at its June 21 meeting, the commissioners asked Thompson to investigate other deals the county has awarded to foster job growth in the region. He cited two examples from Pocomoke City. Bel-Art Products, which manufactures lab equipment, and Hardwire LLC., which produces bulletproof armor material.
“In one case, Bel-Art specifically asked us for a $25,000 loan agreement, which resulted in the creation of 25 jobs in the county,” he said.
To help Hardwire launch regional operations in October 2006, the county obtained federal funds from a Community Development Block Grant through the Department of Housing and Community Development, which was used to acquire and demolish a former Campbell Soup manufacturing facility in Pocomoke.
“In the case of Hardwire, it was a partnership with a CDBG grant totaling $450,000, again resulting in 25 relatively high paying permanent year round jobs,” he said. “In stark contrast, what’s being asked from Longview is going to cost us at least, in the first five years, approximately half a million dollars per year and result in maybe one or two part time jobs.”
While noting that Longview’s representatives have been reasonable to work with during ongoing negotiations, Thompson said in addition to the return on investment being problematic, the agreement could pave the way for similar financially challenging requests.
“My concern is once we set that precedent, we’re opening the door that is going to be somewhat of a challenge to close,” he said.
In Thompson’s comments, Commissioner Chip Bertino made a motion to deny the request.
“There are a number of businesses who are not solar businesses, who are working very hard to increase employment in the county,” he said. “As much as I value solar energy, and the development of solar energy, I don’t feel this is the right fit for our county.”
Seconding the motion was Commissioner Joe Mitrecic, who agreed this project wasn’t an ideal fit financially, but said the issue needs further study.
“We’re going to have to develop some sort of tax abatement type program to lure manufacturing jobs and jobs to this county, especially to the lower end of the county,” he said. “I think it’s important that we do so, however this is not a project that increases jobs.”
From his perspective, Mitrecic said tax incentives should be reserved for businesses that are going to increase Worcester’s job base.
“I believe the tax abatement should be based on how many full-time jobs they’re going to create in this area,” he said. “It doesn’t benefit the taxpayers, other than it’s a clean form of energy.”
While in basic agreement, Commissioner Ted Elder said solar energy is the “thing of the future” and pointed out that facilities are generally located on sub-prime farmlands.
“We really need to address this in some way in the future that we could have some sort of a smaller tax abatement,” he said. “Some type of initiative for clean energy.”
He also noted that solar farms have a minimal impact on surrounding lands and produce limited development or traffic impacts.
“I would be in favor of a small tax abatement but certainly not in the neighborhood of what was asked here,” he said. “In the future, if the commissioners would like to discuss that sometime, maybe we could do something for the green energy. I know a lot of places are going green and it would be a good thing.”
Longview Solar, a joint venture between Seattle-based Tuusso Energy, a utility-scale solar developer, and Elemental Energy, based in Portland, Oregon, has two solar power facility projects slated for Worcester.
The first is a 20-megawatt solar photovoltaic project, the Heron Solar Farm, which would be constructed on an 190-acre portion of an approximately 285-acre private property located south of Libertytown Road, a few miles west of Berlin.
Also the Seabeach Solar Project, a 15-megawatt photovoltaic project, would be built on three parcels of land totaling 125 acres on the north side of Public Landing Road, approximately one mile east of Snow Hill.
On Tuesday, Phil Thompson, county treasurer and finance officer, cautioned against the proposal noting that it could create a financial quagmire.
“In a nutshell, I support the development and the implementation of solar facilities in the county,” he said. “I do, however, have a sincere concern that any significant change to our existing tax structure in the form of abatements or pilot agreements could have long-lasting implications.”
Thompson also pointed out the project already qualifies for a 50 percent tax abatement through the state.
“I feel these projects should be viable and financially feasible on their own without any form of subsidy or abatement,” he said.
After tabling the topic at its June 21 meeting, the commissioners asked Thompson to investigate other deals the county has awarded to foster job growth in the region. He cited two examples from Pocomoke City. Bel-Art Products, which manufactures lab equipment, and Hardwire LLC., which produces bulletproof armor material.
“In one case, Bel-Art specifically asked us for a $25,000 loan agreement, which resulted in the creation of 25 jobs in the county,” he said.
To help Hardwire launch regional operations in October 2006, the county obtained federal funds from a Community Development Block Grant through the Department of Housing and Community Development, which was used to acquire and demolish a former Campbell Soup manufacturing facility in Pocomoke.
“In the case of Hardwire, it was a partnership with a CDBG grant totaling $450,000, again resulting in 25 relatively high paying permanent year round jobs,” he said. “In stark contrast, what’s being asked from Longview is going to cost us at least, in the first five years, approximately half a million dollars per year and result in maybe one or two part time jobs.”
While noting that Longview’s representatives have been reasonable to work with during ongoing negotiations, Thompson said in addition to the return on investment being problematic, the agreement could pave the way for similar financially challenging requests.
“My concern is once we set that precedent, we’re opening the door that is going to be somewhat of a challenge to close,” he said.
In Thompson’s comments, Commissioner Chip Bertino made a motion to deny the request.
“There are a number of businesses who are not solar businesses, who are working very hard to increase employment in the county,” he said. “As much as I value solar energy, and the development of solar energy, I don’t feel this is the right fit for our county.”
Seconding the motion was Commissioner Joe Mitrecic, who agreed this project wasn’t an ideal fit financially, but said the issue needs further study.
“We’re going to have to develop some sort of tax abatement type program to lure manufacturing jobs and jobs to this county, especially to the lower end of the county,” he said. “I think it’s important that we do so, however this is not a project that increases jobs.”
From his perspective, Mitrecic said tax incentives should be reserved for businesses that are going to increase Worcester’s job base.
“I believe the tax abatement should be based on how many full-time jobs they’re going to create in this area,” he said. “It doesn’t benefit the taxpayers, other than it’s a clean form of energy.”
While in basic agreement, Commissioner Ted Elder said solar energy is the “thing of the future” and pointed out that facilities are generally located on sub-prime farmlands.
“We really need to address this in some way in the future that we could have some sort of a smaller tax abatement,” he said. “Some type of initiative for clean energy.”
He also noted that solar farms have a minimal impact on surrounding lands and produce limited development or traffic impacts.
“I would be in favor of a small tax abatement but certainly not in the neighborhood of what was asked here,” he said. “In the future, if the commissioners would like to discuss that sometime, maybe we could do something for the green energy. I know a lot of places are going green and it would be a good thing.”