Queensbury School & Town object, but IDA okays PILOT for solar project

By Cathy DeDe, Chronicle Managing Editor

Despite objections from the Town of Queensbury and Queensbury School, the Warren-Washington Industrial Development Agency Monday night approved a PILOT agreement — payment in lieu of taxes — and other incentives for a 5-megawatt solar “farm” in the town.

It will be situated on 35 acres of an 88-acre property between the Quaker Road Walmart and Warren County Airport.
The developer is CVE North America.

“It’s a really good use of the property,” CVE representative Carson Weinand said in an introduction. “It’s tough to develop. It’s landlocked, swampy, includes State DEC designated wetland property.”

The local IDA approved nearly $4-million in incentives:

• PILOT payment of $6,500 per megawatt in the first year, with annual increases of 15% over 15 years to $8,577 per megawatt in the final year — for a total of $562,036 in PILOT payments, a projected incentive of $2,549,417.

• Exemption from state and local sales and use taxes, estimated at $982,500, for $9.75 million in expected purchases.
• Exemption from mortgage recording tax, estimated at $162,844.

The estimated total project cost is $14,474,000. CVE will pay full taxes for special districts, such as for Water and
Sewer, EMS, and Crandall Public Library. By law, the developer must also pay full taxes on the underlying property itself.

School & town’s objections

During the public hearing that preceded the IDA meeting, lawyer Carla Bittner, representing Queensbury School, said the district will see the biggest impact from the PILOT incentives, as school taxes represent 78% of the total tax rate.

Ms. Bittner noted that the district specifically exercised its right to opt out of the state’s plan to offer exemptions for solar projects, when the state offered that option in 2016.

“The purpose and decision of the school to opt out of these exemptions is of no avail,” if the IDA goes forward, she said.
Lawyer Bob Haffner, representing the Town, said several other solar projects in Queensbury that have not gone through the IDA are not receiving the same incentives. (See sidebar for list.)

“It is important that all be treated the same,” Mr. Haffner argued. “It doesn’t make sense to have developers shopping around to find the lowest PILOT. It should be consistent in the town.”

While the school simply opted out of the state solar exemptions, Mr. Haffner said the town board considered “balancing environmental benefits and the need to have every person pay their fair share.”

“The Town Board’s approach has been to offer a 50 percent reduced tax rate on such projects,” Mr. Haffner said, suggesting “the town’s policies should apply to all projects whether or not the IDA is involved.”

Queensbury Supervisor John Strough reiterated the argument.

Travis Whitehead: Numbers, more

Community member and frequent commentator Travis Whitehead said during public comment that the project doesn’t create jobs, and “takes resources away, largely from the school system, and puts them back on the individual taxpayer.”

Mr. Whitehead suggested the agreement might cause other renewable energy providers — specifically hydro provider Brookfield Renewable — to seek additional incentives, at potentially great cost to the town. He also questioned the calculations of the PILOT agreement, which he said underestimated the cost to the town.

‘What should we do?’

Following the hearing, IDA Chair David O’Brien — the supervisor of the Washington County Town of Hampton — requested that a board member move to proceed on the PILOT resolution, but he was met by a long silence.

“To discuss the matter,” he clarified.

So moved and seconded. There followed further conversation between board members, Mr. Barton, Mr. Weinand and Mr. Whitehead — including some discussion of tabling the resolution.

Chuck Barton, the IDA’s CEO, said that even with the school’s “opt out,” the IDA legally can override it.

Mr. Barton added that even with incentives the PILOT payment represents “a significant amount” of tax money that will go to the school, that would not if the property remains undeveloped.

“We are actually trying to keep tax money in the district,” he said.

Mr. Barton said, and Mr. Weinand reiterated later, the project places little or no burden on the school or the Town. “No additional students in the district, no water and sewer need, little infrastructure.”

Without the incentives, Mr. Weinand said, “The project is at risk to not getting financed and built.”

After discussion, Mr. O’Brien asked the board, “How do you want to proceed?”

Again, a pause.

Mr. O’Brien asked, “Is there a motion to call the question?” So called, so voted, unanimously.

Besides Mr. O’Brien, board members present were Hunt Companies Chief Financial Officer Juan Gonzales; Hebron Town Supervisor Brian Campbell; Glens Falls Ward 4 County Supervisor Dan Bruno; Nicholas Caimano of Queensbury; NBT Bank Vice President Tim Robinson.

CVE, based in New York City, is part of a solar energy company based in Marseilles, France, Mr. Weinand said.
“We have a 13-project portfolio set to start construction in New York, including this one,” he said. The company has nine completed projects in Massachusetts. Its tagline: “Changing visions of energy.”

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Queensbury School Superintendent Kyle Gannon told The Chronicle Tuesday evening, “The school is always in favor of solar. The school supports the IDA in bringing economic growth to the community.”

But he said, “The school board had acted in 2016 to treat these solar enhancements as fully taxable. Additional solar enhancements have been added in the community that have been treated as fully taxable.

“This circumstance is different because of the IDA’s role in creating the PILOT agreement. Under Real Property Tax Law, when the IDA sponsors a company for tax exemptions, the school is not able to challenge the PILOT agreement.”

Mr. Gannon said “the school did see how there was a major tax break for CVE to be able to put this solar field in place in our community; therefore, we felt that it was important for us to speak on behalf of all Queensbury School taxpayers.”

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