HomeMy WebLinkAbout2019-11-12TOWN OF GROTON — MINUTES OF TOWN BOARD MEETING
TUESDAY, NOVEMBER 12, 2019 AT 7:30 PM
THE TOWN HALL, 101 CONGER BOULEVARD
Town Officers Present:
Donald F. Scheffler, Supervisor
Richard Gamel, Councilperson
Crystal Young, Councilperson
Brian Klumpp, Councilperson
Sheldon C. Clark, Councilperson
Michael Perkins, Highway Supt.
April L. Scheffler, Town Clerk
Charles Rankin, Bookkeeper
W. Rick Fritz, Code Official
Don Armstrong, Attorney
Town Officers Absent:
A. D. Dawson, Town Justice
John Norman, Town Justice
Also Present:
Glenn Morey
Heather McDaniel
Dan Carey
Lisa Maloney Hahn
John Benson
Lillyan McCormick
Abby Corcoran
Averie Roberts
Daniel Spitzer
Andrew Sullivan
MOVED by Councilperson Gamel, seconded by Councilperson Klumpp, to approve the minutes
of the October 8, 2019 meeting as presented.
Ayes - Clark, Young, Klumpp, Gamel, Scheffler
MOVED by Councilperson Young, seconded by Councilperson Gamel, to approve the minutes
of the October 15, 2019 public hearing and special meeting as presented.
Ayes - Clark, Young, Klumpp, Gamel, Scheffler
RESOLUTION 419-101 - APPROVE PAYMENT OF INVOICES
MOVED by Supervisor Scheffler, seconded by Councilperson Gamel
WHEREAS, vouchers for Abstract #11, numbered 492 - 55lwere reviewed and audited by the
Town Board, be it
RESOLVED, that the Town Board hereby approves said vouchers for the accounts and in the
total amounts as follows:
Code
Fund
Totals
A
GENERAL FUND
84,960.67
B
GENERAL FUND PART TOWN
437.79
DA
HIGHWAY FUND
34,539.85
DB
HIGHWAY FUND PART TOWN
3,065.44
SL2-
PERUVILLE LIGHTING DISTRICT
160.81
SLI-
MCLEAN LIGHTING DISTRICT
261.65
Total: 123,426.21
Ayes - Clark, Young, Klumpp, Gamel, Scheffler
Nays -
Resolution Passed
Town Board Allnutes Page 2 November 12, 2019
Monthly Reports:
Charles Rankin, Bookkeeper - Submitted monthly reports for the Board's review and requested
a budget transfer.
RESOLUTION 419-102 - 2019 BUDGET TRANSFERS
MOVED by Supervisor Scheffler, seconded by Councilperson Klumpp
RESOLVED, that the Town Board hereby approves the following 2019 Budget Transfers:
From: General Repairs, Contractual. D135110.4 ....................................$15.000.00
Employee Benefits, Workers Compensation Insurance. DB9040.8........... 500.00
To: General Repairs, Personal Services. DB5110.1................................5.000.00
Employee Benefits, Health Insurance. DB9060.8............................10.000.00
Employee Benefits, Social Security. DB9030.8..................................500.00
Ayes - Clark, Young, Klumpp, Gamel, Scheffler
Nays -
Resolution Passed
W. Rick Fritz, Code/Fire Enforcement Officer - Submitted monthly reports for the Board's
review.
nlichael Perkins, Highway Superintendent - We helped the County with some paving on
Pleasant Vallee and Smith Road. Also assisted with some flooding on Smith Road on
Halloween night. Most of the treks are ready for winter. We did a lot of repair work on the salt
shed and I think in the spring or summer, we'll have to do something different with that. We
fixed up some shoulders and driveways and did a little bit of plowing and sanding.
April L. Scheffler, RMC, Town Clerk/Tax Collector - Submitted monthly reports for the
Board's review which included the _fig & Markets inspection reports on Country Acres Pet
Services.
Don Armstrong, Attorney for the Town - Had nothing to report.
John J. Norman and A. D. Dawson, Town Justices - Were not present.
Councilperson Crestal Young as Representative to Joint Youth Program - Gave the
following report:
Tompkins Coamtr Recreation Partnership Board: Nothing to report
Groton Joint Recreation Committee:
• Cabin Fever event will take place on February 29th. 2020. A grant was completed and
awarded for $1.000.
• Summer Concert grant is done
• Trails Committee:
Working on final reports and submitting reimbursement documents for the Trails
Grant. Will have final report done my mid-November.
Revised Local Law No. 4 for the Park to include 'trails". This includes Hours of
Operation: Entry at other than authorized hours without a permit: Possession or
Town Board Allnutes Page 3 November 13, 3019
consumption of alcoholic beverages: and Disorderly person. This is being taken
to the Village Board for approval.
There were several trees that came down during stone. Some were cleared, but
some were going to be left to deter motorized vehicles on trails.
A document is being drafted to _adopt -a -Trail. Lots of people/groups have
offered so we just need a system in place. There are five sections to be adopted.
Fall and spring will be busy times for these groups for trail cleanup.
Hunting is banned on trails, however there are tree stands that are being used.
These are being taken down and "NO HUNTING" signs are being posted. It was
decided not to close the trails during hunting season, but will post warnings about
hunting season. Most people are aware and avoid trails during hunting.
Plexiglass on one of the trail signs at the park along with fencing was damaged
due to vandalism. Fids were identified.
Big THANKS to Fire Department and EXIT's who spent a day on the trails
evaluating them for emergency response.
Groton Louth Commission:
• Monica has lots of events happening with the youth. _approximately 400 children
enjoyed this year's Trunk or Treat despite the rain.
• Angela Conger was hired as the Media Coordinator for Groton Harvest. Youth will also
be hired this month to begin helping with the "Groton Fresh" program which will allow
25 families fresh produce, spices and recipes to go along with the traditional backpack
food program over weekends and school breaks.
Glenn Morey, County Legislator - Had nothing to report.
Chuck Rankin, as Representative to Health Insurance Consortium - There is a municipal
cooperative agreement between all the municipalities that participate in the Consortium, and
every five years it goes up for review. So. 2020 is the year for review and we're starting to get
ready for it. They've had a bard time getting the labor representatives to come to the meetings.
Currently there is one labor rep for every five municipalities but they have decided to cap it at
ten once they bit 58 municipalities. Right now we are in the comment period and if you think
everything is fine. I have a form letter to be signed. The whole thing is posted online if you want
to read all of it. The big thing is that they are going to go to an executive committee of between
11 and 15 people and there is a new section to lay that out.
RESOLUTION 419-103 - UTHORIZE SUPERVISOR TO SIGN LETTER
TO HEALTH INSURANCE CONSORTIUM
MOVED by Supervisor Scheffler, seconded by Councilperson Gamel
RESOLVED, that the Town Board hereby gives authority to the Town Supervisor to sign the
letter to the Health Insurance Consortium in reference to the proposed changes to the municipal
cooperative agreement.
Ayes - Clark, Young, Klumpp, Gamel, Scheffler
Nays -
Resolution Passed
Town Board Allnutes Page 4 November 13, 3019
Supervisor Scheffler - Last month we tabled the discussion on speed limit changes on Salt
Road. (He asked the Town Clerk if she had received anything else from the petitioners and she
had not.) What does the Board want to do with it?
Councilperson Gamel - My personal opinion is that it's fine just the way it is.
Councilperson Klumpp - I go back to what I said last month, it's not a speed issue, it's an
enforcement issue. We could put the speed limit at 35 and people are still going to go 65 on that
road.
Councilperson Clark - I feel the same way.
Councilperson Young - Yes, I feel the same way. I think it's an enforcement issue.
Consensus of the Board was to take no action.
Supervisor Scheffler introduced Dan Spitzer, an attorney representing _abundant Solar and
Heather McDaniel. _administrative Director of the Tompkins County Industrial Development
_-agency (IDA).
Ms. McDaniel - Just to give you a little bit of background, the IDA was created by the Tompkins
County Legislature in 1973. They are given the authority by the State to abate a variety of
property taxes, sales taxes and mortgage recording taxes for projects. Since 1973 we've
delivered incentives to 139 projects that have paid over 46 million in new property taxes:
invested over 1.2 billion in facilities in Tompkins County: and created over 4.500 new jobs in
our communities. I think we've delivered incentives in every municipality in Tompkins County.
They primarily deliver incentives for industrial facilities and manufacturing facilities. They
create long tern, quality job opportunities. More and more, we've been doing research and
development facilities affiliated with Cornell to help start companies and keep companies
growing in Tompkins County. We've done some work in Groton in the business park there.
You have a new cheese maker out there. And we've partnered with the City of Ithaca to do more
community development projects downtown. We've actually increased the tax base by almost
100 million dollars in the City of Ithaca. So, why would the IDA be involved in solar? It's not
your industrial or manufacturing kind of project. It's not creating direct jobs on site. We got
involved with solar because we started bearing from our counterparts throughout the State that
the State had allowed off-site community solar to happen but no projects we being developed. In
2016 nothing was happening. We were seeing a lot of solar development in other states but in
New York State the electricity rate is very low and the incentive amounts being offered by the
State were very low compared to other states. Other states are incentivizing solar for 10. 15 and
20 years. New Fork the State is providing a declining incentive for 3 to 5 years. So, the
economics for these projects really didn't work in New York. Then layer on top of that, the
property taxes. If you build a building, that improvement increases in value over time and the
way that New Fork State law is written, that's bow you value a solar improvement, much like a
building. But a solar panel doesn't actually increase in value over time, it declines. So, there's a
little bit of an issue with the way the State law is written around valuing solar facilities. They'Ve
fixed that in other states. In 2016 nothing was being developed in terns of off-site community
solar. These are 2-5 megawatt projects that enable consumers to purchase energy that's
generated from renewable sources. So it provides consumer choice. The reason the IDA has
gotten involved is because of this property tax issue, recognizing we can't do anNqhmg about
some of the other issues that were impacting solar. So, we got involved and started looking at
this extensively. We started by looking at the State's goals. The Governor has this Reforming
the Energy Vision and has broad goals around reducing carbon emissions. Then we looked at
Town Board Allnutes Page S November 13, 3019
the County's goals to reduce carbon emissions, transferring more to renewable energy sources.
So, we started talking to solar developers and asked what's going on. The economics don't work
on these projects. So, we took a look and very similar to what happens around wind
development, they've started delivering a property tax payment valued at a certain dollar amount
per megawatt of output of the facility. We were one of the first IDAs in New York State to
develop a policy. _y policy that supports the State's goals and our County's goals around
developing renewable energy. I spent a lot of time working with existing solar developers. They
came in: they opened their books: they showed me their revenue models: they showed me all of
the tax implications for these projects. So, what we did is we set a range, working with
NYSERDA, who is also providing some incentives for solar. So, we sort of identified what a
reasonable rate was based on a number of variables: what utility area you were in: and set a
dollar amount that was a reasonable amount for projects to start happening. Every off-site solar
project that has been built in New York State to date has had some sort of property tax payment
affixed to it that's not based on the actual value. When we looked at the projects, if you assess
them the same as you do a building, their tax payment would be more than 10 times what the
actual revenues on those projects would be without even taking into account any of their
expenses. So, clearly, they weren't going to happen. Our solar policy, we set a tax payment
over 20 years somewhere between $4.200 and $4.800 per megawatt and it increases by 20o per
year. Now, why would you do that? It provides certainty for the taxing jurisdiction. You know
what you're going to get for the tax payment. It provides certainty for the project so they can
underwrite and finance those facilities over a 20 year period. And it provides additional tax
revenue for the municipalities. We've been delivering payment in lieu of tax agreements since
1973. We have a model in place and have experts on staff that can do that. We have a process
for billing all of those PILOTS through the County Finance Department and the County
Assessment Department. So, we stepped in and since 2016, we've approved 13 solar projects
throughout Tompkins County that will deliver almost 52 megawatts of renewable energy
generation. The capitol investment on those projects is over $100 million. With the stable tax
rates that we've assessed for those projects over a 20 year period it's estimated that they will pay
over $10 million in new property taxes. So, that's new tax base for the Town, the County, and
the School District. The School District is really the big beneficiary here because there's no
impact on the School to have solar panels generating renewable energy. I'm happy to answer
any questions. I was asked to give a value if it's a 5 megawatt project. My estimate would be
that they'd pay about $21.000 in property taxes in year one and that would increase 20o a year.
That's based on our policy. So, over 20 years a 5 megawatt project would pay over $522.000 in
property taxes split between the School District, the Town and the County. We do not set any
tax payments for is special districts. Those property taxes would be based on the frill value of
the facility.
Couneilperson Klumpp asked what they would be paying if they didn't have a PILOT.
nls. McDaniel - I can't tell you that number off the top of my bead. It would be significantly
more than that. What I have found is the projects wouldn't happen because they couldn't afford
to pay it.
Couneilperson Klumpp - I understand that but it's important to know what they're asking for. I
spoke with the Tompkins County Assessment Department and I believe the number was $30.000
per megawatt is what they would be paying.
Mr. Spitzer - So that's not assessed value, you're saying that's the tax?
Couneilperson Klumpp - Yes, so we're looking $21.000 a year as opposed to $150.000.
Mr. Spitzer - I think it would be higher than that actually. That sounds pretty low to be honest
with you for frill taxes and what I understood your taxes to be.
Town Board Allnutes Page 6 November 13, 3019
Councilperson Klumpp - I'm just trying to say that those two numbers are a long distance
apart.
Ms. McDaniel - Well they're a long distance apart because there's an issue with the way that the
State values a solar facility.
Councilperson Klumpp - Well, wouldn't it make sense that instead of creating PILOTS for each
municipality, if there's a problem with the way the State is taxing solar fauns, shouldn't it be
solved at the State level? Shouldn't they change it there.
Ms. McDaniel - That's the first thing that I said.
Mr. Spitzer - So, the State doesn't tell you how to value it. It's done by the local assessor. The
problem is that the State hasn't given guidance.
Councilperson Klumpp - It's a State initiative for the green energy.
Mr. Spitzer - It's a State initiative and it's a State entity. NYSERD_y, that said here's a
calculator that you can use to calculate a fair PILOT and here's a calculator to value a fair
assessment.
Councilperson Klumpp - What's fair? Are we using fair correctly?
Mr. Spitzer - _y fair number for a PILOT that my client is looking for is what can they afford to
pay and achieve a rate of return so an investor will invest in the project. If I'm going to invest or
buy this project, there are certain tax aspects that are useful to me.....(not using
microphone)... accelerated depreciation: cash flow attributes: I'm looking for a rate of return
based on my investment. If I look at affordable housing credits: I look at other credits:
opportunity zones that have come up recently, and I say how much money can I make if I invest
in those. And so to have solar or any other competing investment opportunity make sense, you
basically have to have the rate of return.
Councilperson Klumpp - So if a company has a product. It's going to cost me this much
money and I'm going to go to the assessors and say I can only pay this much in taxes or I'm not
going to do it.
Mr. Spitzer - That's exactly right. I don't know of anybody who builds a product or a plant or
solar plant or anyone else if the taxes and other cost are such that they don't make a profit.
Councilperson Klumpp - No, but in this situation you're telling the IDA, your telling the
municipality, we can only pay this much in taxes as opposed to trying to make your product a
viable product.
Mr. Spitzer - Go back to what Heather said the goal is here. The way community solar works
is, it only works if you can take the revenues they give you and the subsidies and the tax credits
and sell energy in a way that local people within the zone save 100 0 on their energy bill. If I get
an invitation to buy from a solar facility and it's going to cost you 100o more obviously you're
not going to buy it. One of the things we often do as far as the PILOT is give people in the Town
first right of refusal and say the people in the Town get the benefits first and get the first shot at
the energy savings. That's very typical in our offers. Sometimes, if the numbers are right, we
give an additional discount to the people in the community. It's all about at the end of the day
can you sell your product for a profit. And selling our energy for a profit, it means that we have
to sell energy for less than it costs. Energy is actually very cheap these days.
Councilperson Klumpp - But you can't sell your product at a profit unless you get a significant
reduction on what you're paying on taxes.
Town Board Allnutes Page - November 13, 3019
Mr. Spitzer - That's exactly right. That's the reason why, as Heather mentioned, every single
generation project, not just solar, that's been built in this State has tax break.
Councilperson Gamel - You're certain about that?
Mr. Spitzer - Oh absolutely. I've probable worked on more solar than anyone in the State. But
I'm not aware of anyone who ever built a power plant of any kind without going to an IDA or
otherwise getting a tax break. For example, one of the things that happens when you build solar
facilities or other generating facilities, by state law, most of the generating facilities are exempt
from sales tax. The panels, for example are, not the whole project. The State Legislature made
the detennination, we're not going to charge sales tax on certain equipment and power
generating equipment is one of those things that they've exempted. So, there's no project in the
State that would ever say, know what New Fork. I'm not going to take that sales tax break,
here's a check for sales tax anyways. I'm quite positive that every power plant has gotten at
least a sales tax break. You cannot afford to build a profitable project and pay frill taxes, so
you'd just walk away. Also, from Houtan Moaveni, who you may be aware of. I spoke to him
again recently and I've worked with NYSERDA actually, helped them write the solar calculator
and PILOT laws. Every project in the State has gotten some tax break. You can not afford it and
have a profitable project and pay frill taxes. So, you would walk away rather than build that
project.
Supervisor Scheffler - Then it's not a viable business.
Mr. Spitzer - It's a viable business under New York State Law.
Supervisor Scheffler - But not on even keel with any other business.
Mr. Spitzer - Well. I'd like to know what business you think- is going to come to town without a
tax break. No factory is going to come to town without a tax break.
Supervisor Scheffler - I beg to differ with you. We have successful businesses here now that
have never asked for a break or expected a break.
Mr. Spitzer - Do you have a lot of fanning here? 9000 of exemption on their taxes because of
ag exemption. Take some of those exemptions away and tell me how many fauns would be left.
Supervisor Scheffler - They'd all be left because we have to eat and the price of food would go
up.
Mr. Spitzer - That's really not true of agriculture in this state. If you took those ag exemptions
away, our fanners are already hurting in this state. The State proposes an enormous impact
......?.... (not using microphone).......... So, you're absolutely right that this model would not
work without a property tax break. If anybody comes to you and says A this isn't a break, or
we're not getting a break, they're obviously not telling the truth because it is, as Heather said, a
tax break. Now, let's talk about why you would give a tax break. What would you get if you
didn't give a break. And anybody who tells you, A this is the exact amount of a fair break. I'd
like to meet that person, because it certainly is an art more than a science in teams of what the
correct break is. But there's a lot of things we use, so let me give you an example. On of the
problems that schools have with PILOTS is that PILOTS help tax base, not towns and schools
and counties. PILOTS go against your tax cap. Now, if you're a town you can override the tax
cap with three votes. If you're a school district, and all of a sudden the PILOT money disappears
after 15 years, you've got to go out to the vote of the people. So, one of the things we've done
with school districts, and I don't know if anyone has done this with your IDA, instead of giving
them a PILOT, we call their share an educational contribution agreement. And we take the
money that we give the school and we fund scholarships, science fairs, trips, we fund all the
things that taxpayers can't fund. What that does is add wealth to the community with this
Town Board Allnutes Page 8 November 13, 3019
payment, rather than just saving taxpayers some money. Everybody understands that the PILOT
money reduces the burden on the taxpayer but it doesn't necessarily create wealth for the entity
itself. We did this with an IDA up in Wayne County, the Town of Williamson, we took their
town payment and figured out what the payment would be over the period of time and we wrote
one check to them and they were able to do a project that they wanted to do without financing it
because they got it all at once. So, while Heather has described what a typical PILOT is under
New York law which is an annual amount divided up amongst the entities by tax rate there's
actually ways to work with the solar companies to actually increase the wealth in the community,
not just save the taxpayers a little bit of money. That's what PILOTS do. If I gave you a PILOT.
that would go against your tax cap unless you had additional needs .... that way you'd be
spending the same and it would save taxpayers money. There's no question. The larger the
project is, for example the wind faun up in Clinton County, up by the Canadian border, they get
PILOTS from two wind fauns. They have no town tax at all and they write one check to the
County for everybody's county tax. The benefit there is to the taxpayer. The budget of those
towns stay the same. So, if you were to allow this project in, what would you get? You'd get
around $21.000 a year, going up every year at least for 20 years. That would save the taxpayers
in the county, school, and town, that much money. It would shift the money over. But we could
set the agreement up in certain ways, with the IDA's help and your help, so that we call it
different things, we could actually improve the wealth of the community. If there was no tax
break, if you said we understand that the State has stated that these will be tax exempt however
we want a PILOT equal to frill taxes. I assume you all know that even if you haven't opted out,
you can ask for a PILOT equal to frill taxes, which opt outs are nice but they're meaningless,
because you have a right to a PILOT that's equal to frill taxes. So, you work out a deal that
brings money into the community that the community otherwise is not going to get. Unlike most
IDA deals, you don't get a lot of jobs. You get some constriction money and jobs because
everything is done as local as it can be, but this is not like bringing in a plant with 50 or 100 jobs
by any means. But it does add to the community. More importantly, it doesn't cost the
community anything. There's no negatives. No police requirements, no fire requirements, and
the fire people, they get frill taxation. There's school increases. So you get an increase into your
community. The fanner gets some revenue. I have a lot of solar projects that I've worked on
that the only thing keeping the faun alive and making a difference is to lease the land to us for
more than they can make growing crops on it. In a lot of cases we are keeping fauns around the
State in business because of that extra revenue. Everything that solar does adds to the
community value at almost no cost. People say, now wait a minute, you're not paying frill taxes.
Well, if you noticed, that you're clearly aware of, at frill taxes, we're not here. It's simply a
matter of you cannot afford to sell your product that local energy users will buy if you have to
pay frill taxes, and that's the reality of it. So, the question is that if we have a product that has
virtually no environmental impact, if we have a project that meets some of the goals of the
community in teens of cleaner air. Some of the other problems that are coming on board as the
government shirts down all of these power plants, you're going to see more and more of New
York become like California in teens of liability issues. Having a local solar facility gives you
the ability to potentially built a micro -grid or otherwise protect yourself in terns of resiliency. A
lot of the solar projects that I work on, in addition to selling to the community, we have purchase
agreements lease departments, hospitals, schools, so that they're going to stay on if the power
otherwise goes down. That's a benefit the community doesn't get without a tax break. So, are
you giving a tax break, yes. Are you taking money away from anybody, the answer is no. So,
finding the right number, but I have absolutely no question that you are adding wealth to the
community by saying yes to a PILOT.
Ms. McDaniel - I would just add to that that all of these projects that I've seen in Tompkins
County, they've spent significantly on the interconnect, which means that they're upgrading the
Town Board Allnutes Page 9 November 13, 3019
electrical infrastructure. All over New York State our grid is in dire need of investment and so
these companies are coming in and they're actually reinforcing lines, putting new lines in, which
is a benefit to the users of this system. The other thing that I've seen is that communities can
develop a host community agreement. They've worked in tandem with the IDAs. The IDAs
have reduced the property tax payment and then left it up to the municipalities to negotiate a host
community agreement that provides an additional payment that's not a property tax payment.
So, there's benefits there for the community.
Mr. Spitzer - Said that the production from the solar panel decreases over time, but to remember
that the payment with a PILOT increases 20o a year. Also, that if you didn't do a PILOT there
was no guarantee that frill taxes would still be a higher amount at the end of the 20 years, it could
actually be lower than what you would get with a PILOT.
Supervisor Scheffler - If you want a tax break now because you can't afford it, but 15 years
from now, you can pay 20o more but the income from your solar panels has decreased, how is
this balancing out? How can you pay it then and at the same time you're going to go to the
assessment office and say that my solar fanm is only worth $2.000 and get your assessment
lowered. Then we still wouldn't get anything.
Mr. Spitzer - Well, obviously, if you have a PILOT, you don't care about the assessment, except
for the fire department, which is very low. So, you don't go to the assessment office, you don't
get an appraisal, you don't spend that money fighting in court over assessments. _also. I'm not
aware of a subscription to solar that stays at the same price, so the price also goes up. These
companies obviously do business models and they figure in the price they have to charge for
these subscriptions. They're not going to charge the same price 20 years from now as they are
charging today. Just like everything else in life, things go up, and it's built in. When we do
things for a town and give the $50.000, that's capitalized debt, so we actually borrow that.
Where we get that is from our investors and we're able to take that as part of our investment. So,
that's covered in the price from day one and it's actually cheaper that way for us. That's why we
like to offer that to towns.
Supervisor Seheffler - I wish our Fire Chief was here. I realize that they will get a higher
amount because that's not part of the PILOT. But it worked out to about $4.000 a year. They
have to send all the guys to training and there's no money out there for training. So, that's not
going to go very far.
Mr. Spitzer - With due respect. I'm not aware of anybody who had a solar fanm catch fire in this
state. But the training, why don't you ask us to pay for it? Why don't you say in addition to the
PILOT, we want you to pay for the training? With the wind fanms we do that all the time.
Councilperson Gamel - Why can't we ask you to pay more taxes then?
Mr. Spitzer - Because at a certain point, training is not that expensive, you can ask us to pay a
higher PILOT and we'll figure out what the PILOT is, but if you ask us to pay frill taxes, the
project won't get built.
Councilperson Gamel - So there's a breaking point for you. Why don't you just come out and
tell us the breaking point.
Mr. Spitzer - $4.300.
Councilperson Gamel - Of course it is. So, if we come together and say $4.500 a megawatt,
you're going to walk?
Mr. Spitzer - No, probably not. I also said it was an art. If I expected you not to negotiate I'd
be ver, embarrassed that the Town Board didn't at least tr,.
Town Board Allnutes Page 10 November 13, 3019
Councilperson Klumpp - I want to bring up a point because that's what we're doing right here,
we're negotiating. I don't like that there's different riles for different businesses. So, if solar
companies have the right to come before municipalities to negotiate, if that's the case, then every
business owner should be able to come in front of the Town Board and say I don't want to pay
frill taxes. I'm a doctor. I'm offering a good service, and your community needs a doctor, so I
really can only afford to pay $300 a year for my property taxes.
Ms. McDaniel - The Town doesn't have the ability to negotiate property taxes.
Councilperson Klumpp - Well, the IDA, my point is still there.
Ms. McDaniel - For an industrial project every IDA has their set incentives. For the Tompkins
County IDA, we do one of the most conservative abatement schedules in all of New York State.
For a manufacturer, it's a 7 -year faze -in of your new taxes associated with your project. We
abate 930 0 of the taxes in year one and it declines over seven Nears. If you go to Steuben CountN
and you're going to make the same investment, you're going to get a 20 -Near abatement and I
would guarantee you it's going to be 10000 of your new taxes for the first 10 Nears. Most IDAs
do 10. 15 and 20 -Near abatements. We're talking about industrial development, a multi-million
dollar investment. Those are projects the that we will deliver incentives to. I don't know of any
IDA in New Fork State that's going to deliver a property tax incentive for a single sen7ice
provider.
Councilperson Klumpp - That's my point.
Mr. Spitzer - We're talking about a company that's coming to your community and investing
10 -million dollars. We're not talking about a civil sen7ice....
Councilperson Gamel - But they're not investing it here.
Mr. Spitzer - Well of course they are. We're building it in your town.
Councilperson Gamel - Yes, but you're not investing in our communitN.
Mr. Spitzer - What does that mean? We're spending 10 -million dollars in your eonnnunitN.
Councilperson Gamel - Not to us, you're not. You're not giving that to us.
Mr. Spitzer - Neither does anyone else. No one writes a check to you for the 10 -million dollars
that it takes to build an office building.
Councilperson Gamel - They are paying taxes.
Mr. Spitzer - They pay workers to do the construction.
Councilperson Gamel - They create jobs.
Mr. Spitzer - Nobody builds a new office building in this state without tax breaks.
Councilperson Klumpp - Okay, that's my second point. New Fork State realizes that their
property taxes are so high that we can't get people to build here unless we give them a tax
break.....
Mr. Spitzer - I'm not aware of any state that doesn't give tax breaks....
Councilperson Klumpp - Can I finish? New Fork State's property taxes are. I believe, the
highest in the country. If not, they're number two. So, therefore, they're changing tax laws.
providing PILOT programs, giving IDAs opportunities to give new businesses or existing
businesses that want to expand, they're giving them tax breaks in order to improve New York
State's economy. If lower taxes are going to improve the economy, then why not give lower
taxes to everybody, big and small?
Town Board Allnutes Page 11 November 13, 3019
Ms. McDaniel - That's not a problem I can solve.
Mr. Spitzer - Leah, we're not the New Fork State Legislature.
Councilperson Klumpp - Well. I'm making a point. I have a chance to vote on something right
now...
Mr. Spitzer - ...investing in my community because it's too expensive to build in New Fork.
Every town in Upstate New Fork is losing population....
Councilperson Klumpp - .....because our property taxes are too high. We're relying on our
Governor and our State Legislature that really isn't representing Upstate New Fork very well.
We're relying on them and their past decisions. Downstate. New York Cite is much different
that Syracuse. Utica. Groton, in that it doesn't matter bow high the taxes are in New York Cite,
people are still going to build there, move their businesses there because it's the financial capitol
of the world. They have a draw there. We don't have the draw. So if we have these property
tax values that are based on downstate assemblymen and senators, we have a big problem. I
think Upstate communities should start pushing back on these high taxes.
Ms. McDaniel - I don't think we're going to solve any of that here......
Mr. Klumpp - We can solve that here....
Ms. McDaniel - ....I'm here to say that the Tompkins County IDA has been delivering PILOTS
since 1973. We're certainly trying to find ways that increase tax base, and increase benefits to
communities. We have a police that we will implement for off-site conunercial solar projects
and part of the police for solar is that we've asked municipalities to support our ability to do that.
And that's completely up to you. I'm happy to answer questions. If this is a project that you
want to see move forward, and you'd like the IDA to be involved in terms of delivering that
property tax payment amount, we're happy to do that. I'm happy to come out and answer
questions if you have follow up questions or want any other specific information and that's really
why I came here today. I don't think I can solve the State's tax situation. I've seen what other
states are doing in terns of solar and they are giving away a lot more at the state level than New
York State even with the IDAs.
Mr. Spitzer - Can I ask where we are with the project? It's my understanding from Rachel is
that this project is not moving in terns of review of the project. I don't understand so can you
fill me in on that? She sent an application for approval of the zoning, is my understanding.
A lot of people were talking at once. The Board explained that Rachel was originally given what
needed to be submitted but did not do anything for quite some time. Somebody said that Mr.
Broclnt had submitted some plans but it was not clear exactly bow many megawatts were going
to be built as the Board was told it could be 2 or 3 or up to 8.
Councilperson Gamel - So, we've been told as high as 8 megawatts. We're talking about green
things, but some of the things that just don't mesh for me is 8 acres of trees being cut down to
put in solar panels. That's a big one for me.
It was explained that the Town had hired an engineer and that they were still waiting to bear
from him.
Mr. Spitzer - Well. I assume you have the application because I have a copy of it. I'd like to
have a process for our engineers to talk to each other and make sure that we're answering your
questions. What you said is a question when you do the SEQR review. That's one of the
reasons I was sent here tonight is to figure out where the process stands. I wasn't just sent to
make you upset about taxes.
Town Board Allnutes Page 13 November 13, 3019
The Board discussed the fact that they had not beard from their engineer
Attorney Casullo was supposed to be communicating with the engineer.
said that be didn't know anything about it.
. Someone said that
Attorney _ mistrong.
Supervisor Scheffler - We are not against solar or this plan. We just want to treat everybody
the same and tr, to be fair to ever,bod,.
Again, everybody started talking at once. Mr. Spitzer said that if the Board didn't want them to
come to just say so and they would go away. The Board said that they were not against solar.
Mr. Spitzer said that the $21.000 split between the County. Town and School would be a benefit.
Supervisor Scheffler - I'm hard pressed, other than the $21.000, to see the benefit for the Town.
When I look at this and Abundant Solar is from Canada, their investors are in New York and
Connecticut, they're buying their equipment from Germany, and there are no jobs. The
electricity is cheaper here now than what you can provide in the Village, so there's only half the
Town you can help. We get cards in the mail every day that we can get 1000 off our bill for
doing nothing. So. I want to see a benefit somehow.
Mr. Spitzer - Well I've told you the benefits. You may not agree that the benefits are
worthwhile, for example the trade off for the trees. But the benefit is plain cash. That's 21 -
grand in your taxpayers' pockets, which means something to your taxpayers. Number 2, it does
contribute to reducing the carbon footprint within the County. Number 3, they're going to spend
10 -million dollars on construction, mostly in the State, and local people are going to do some of
that construction and they're going to spend their money locally, including at retail places. The
IDA has facts on where they figure out those benefits for every construction project. Number 4,
you're going to add value to the school with my taxes or an educational contribution agreement.
The question for you, as leaders of the community, is when you have a project that has virtually
no cost other than things like cutting trees or if they want to put in a wetland.
Councilperson Klumpp - The cost is fairness.
Mr. Spitzer - Then tell us to go away. If the Board feels that solar can't be built here unless
they pay frill taxes, just say that. That's your call. And if that's bow you feel, just say I don't
want solar because you can't pay.
Councilperson Klumpp - I'm not saying that I don't want solar. That's very misleading.
Several things that you say are misleading because that isn't what I'm saying. I'm saying that I
want a fair playing field. I'm not saying I don't want solar.
Councilperson Gamel - Heather. I'd like to thank you for coming today because I think the
number that you presented was different than Rachel has presented along the way.
Ms. McDaniel - $4.300 per megawatt.
Councilperson Gamel - Said that this was the first time that Heather had been here to explain
the PILOT and that Rachel had been asked for that back in Januar,.
Supervisor Scheffler - Asked bow much the total taxes currently are on the property and was
told approximately $1.800. Supervisor Scheffler said that would need to be subtracted because
they would no longer pay that.
Mr. Spitzer - No, we'd still have to pay land taxes, why wouldn't we pay that?
Ms. McDaniel - Any additional property tax. So, the $1.800 could very well be paid if there is
just land there with no improvement. The PILOT would govern the improvement, not the land.
Supervisor Scheffler - Can you at some point tell us how big this solar farm is going to be? Is it
going to be 1 megawatt or 5 or 8?
Town Board Allnutes Page 13 November 13, 3019
Mr. Spitzer - You said it was between 3 and 8? That's the first time I've beard any number
other than 5.
Councilperson Gamel - The map we got went up to 8 megawatts.
Mr. Spitzer - That's a very fair question. I'll find out for you. I can only tell you what I beard
is 5.
Supervisor Scheffler - They occasionally throw in a disqualifier that they don't know exactly
what it's going to be so someone who was here said that we need to nun our numbers on what
they actually build. No one is guaranteeing if it is going to be 5 or 1.
Mr. Spitzer - There's generally a rile for this type of solar that it can't go past 5 or they have to
subdivide it.
Councilperson Gamel - And they talked about that. They also talked about how it was based on
the capacity that the grid could bold. There was a little research by someone here that said the
maximum on the grid we have right not could be 3. So, now we're talking $21.000 just went
down by two-fifths.
Mr. Spitzer - That's true. Just to be clear, it's not based on how much it does produce but on
what it could produce. It's always based on the capacity.
Supervisor Scheffler - Right. But what are they going to build. Is it going to be 1 or 5 or 3.
That's what the $21.000 is based on. If it's 1, we could build a house on it and make just as
much.
_y lot of people spoke at once. Mr. Benson said that be thought the map was for 5 but it could go
up to as much as 9. Councilperson Gamel thought that if the Board approved 5 and it went up,
that the Town would lose money. Mr. Spitzer said no, and they wouldn't be able to subdivide
without the Town's approval.
Mr. Spitzer - Would you want a host agreement that says the amount will be N and if you build
less than N, we still get N?
Councilperson Gamel - Absolutely. There's no question.
Mr. Spitzer - Yeah, that's a possibility. So, these questions should be answered by the
interconnection study.
Councilperson Gamel - We don't have that information.
Mr. Spitzer - So. I've sent a text to Rachel saying, size of project?
Supervisor Scheffler - What typically is a host agreement that you would go for up front?
Mr. Spitzer - We would figure out the present value of the payment to the Town over the 20
years and we write a check for that amount. So, in Williamson, the total PILOT up there was
around $50.000. I wasn't involved in that, but generally what you do is figure out the present
value of the solar payments and write a check for it. _y lot of communities like that because if
they have to deal with the tax cap, they only have to deal with it once. Or let's say you're buying
a new snowplow and you're going to finance it, so if you have 50 -grand it would reduce the
amount that you're borrowing. It all depends on what works best for you.
Supervisor Scheffler - So you're not going to do a PILOT and a host agreement?
Mr. Spitzer - It's possible. (He talked about how some agreements were handled in other towns
and other counties and also talked about wind farms, but was not using the microphone.)
Town Board Allnutes Page Il November 13, 3019
Councilperson Young asked what the checklist would be to move the application forward.
Councilperson Gamel said that hearing back from the Town's engineer was the first step. Clerk
Scheffler read excerpts from the October minutes when the Board had declared their intent to be
lead agency for SEQR. She said that she had sent notices to all involved agencies on October 10
and had heard back from a couple who stated that they had not problem with it and the others
had not replied. She had also referred the application to Tompkins County Planning, but had not
received a reply from them. It was determined that the 30 day time limit to reply was up.
RESOLUTION 419-104 - DECLARE THE TOWN OF GROTON
LEAD AGENCY FOR SEQR REVIEW
MOVED by Councilperson Klumpp, seconded by Councilperson Gamel
RESOLVED, that the Town Board hereby declares itself Lead Agency for State Environmental
Quality Review purposes relative to an application for a Special Permit for a Solar _dray
submitted by Abundant Solar Power, Inc.
Ayes - Clark, Young, Klumpp, Gamel, Scheffler
Nays -
Resolution Passed
Councilperson Klumpp said that be would contact the engineer. Clerk Scheffler will let the
Board know as soon as she bears back from County Planning. She said that they will need to set
a public bearing at some point. Mr. Spitzer said be would try to get answers to the Board's
questions. Councilperson Young said that the environmental factors needed to be looked at.
Supervisor Scheffler said be doesn't see any jobs. Mr. Spitzer said that generally what be sees is
that the workers building the project spend in the community as the benefit, but they do look for
locals to do the work also.
Ms. McDaniel - At the IDA we do require that all of our projects submit monthly reports of
where every single laborer on the job is from. What I've seen with the smaller solar projects is
that they've hired local funs. Some of the bigger ones, they have brought a bigger crew in and
filled in with some of the locals and they are getting maybe 600 o local labor which is a lot more
than you would see on a 50 -million dollar building in the City of Ithaca.
Supervisor Scheffler - These are questions and answers we just haven't had before.
Councilperson Klumpp - On the application it is Abundant Energy Groton, LLC. Why is that?
Mr. Spitzer - When you do these projects, you usually have a developer that develops it and
builds it and sells it to a portfolio owner. That way by having what they call a "special purpose
vehicle." an LLC that owns just this particular project. If you need to transfer it, it's all under the
same name, and what you're doing is you are selling your membership interest in the LLC as
opposed to the asset itself. So, it's done for corporate purposes in terns of putting each separate
project in a separate LLC and then if you decide to sell it, you basically don't have to come back
to the Town and say, guess what, we are now XYZ Company, because it's the same company.
It's just easier corporate -wise. If any other questions come up, please don't hesitate to contact
me.
The Board thanked Mr. Spitzer and Ms. McDaniel for coming
Town Board Allnutes Page 15 November 13, 3019
Supervisor Scheffler had been asked a question about training for the Planning Board. It had
been asked whether certain training classes could be used to satisfy the training requirements for
the Planning Board. _after some discussion it was the consensus of the Board that the particular
training classes mentioned did not qualify as Planning Board training.
Privilege of the Floor:
Dan Carey, Agricultural Advisory Committee Chair - Said that the agricultural communitN
feels that solar arrays should not be placed on tillable land. They do however recognize that
solar arrays may be of some benefit to the community. He thought that the Town should work
with the ID_A. He also said that he had not heard the landowner brought up in any of the
discussions. Mr. Carey feels that the landowner is being held hostage by the Town not moving
forward with the application and that he might lose his sale because of this.
Councilperson Gamel - Said that he thought the solar company should be buying the land up
front. When the oil companies came through and leased everyone's land, they paid up front and
then didn't end up doing anything. These companies are not in it for the environment: they are
in it for the money in their pocket. The Town Board has to look out for the entire Town. Shame
on them for not paying for the land up front. They have the money and we don't. While the
Board all feels bad for the landowner, it's the energy eompanN's fault for not buying the land.
Mr. Carey said that if they got the $1.800 for the land taxes, plus the PILOT, that should be
considered.
Mr. Gamel said that be had beard more tonight than previouslN
Lillyan McCormick, Abby Corcoran, and Averie Roberts introduced themselves and said
that they had attended the Board meeting as part of their Government Class.
There being no further business. Councilperson Gamel moved to adjourn, seconded by
Councilperson Clark, at 9:16pm. Unanimous.
_-April L. Seheffler, RMC
Town Clerk