Commissioners approve economic development agreement for solar farm

Saturday, August 12, 2023
Courtesy photo/Arevon Energy

After more than a year of negotiations and eight months after a tax abatement was approved for the project, Putnam County now has an economic development agreement on a proposed solar farm in Russell Township.

In a special meeting Friday, the Putnam County Commissioners unanimously approved an economic development agreement with Arevon Energy that will provide the county a payment of at least $5.7 million once construction is complete.

District 1 Commissioner David Berry made the motion, as the development will take place in his district. Tom Helmer seconded the motion, with Rick Woodall joining the affirmative votes to make it a 3-0 decision.

Cold Spring Solar Farm is a proposed 200-megawatt solar project that would be located on private land east of Russellville. The property itself will remain the property of current landowners, with Arevon leasing the land for at least 30 years.

While the exact details of the economic development agreement are now worked out, the final numbers will not take shape until the full scope of the project is determined.

As planned, the project, which developer Tenaska is handling for final owner Arevon, is a $383 million investment for a 200-megawatt farm. Based on these exact numbers, Arevon would owe the county a $6.3 million economic development payment.

If either the investment amount or the number of megawatts generated increases or decreases, the payment would increase or decrease accordingly.

However, the smallest payment the county would receive is $5.7 million.

With the economic development agreement now in place, a tax abatement for the project, approved by the Putnam County Council last December, is now valid.

The council approved a 75-percent abatement of all personal property of the project for a period of 10 years. Despite this discount, Arevon estimates Cold Spring would bring in $40 million in property taxes over the 30-year life of the equipment.

Woodall, who has been central to the negotiations for the county, expressed the mixed feelings he has had throughout the process.

“My stance has always been that I’m not a fan of solar farms, but I’m also not a fan of telling people what to do with their land,” Woodall said. “So if these people want to do this, it’s their land. The cons are it takes out 1,400 acres of farmland. The pros are it will provide electricity, it will lower the taxes to the residents of PC and it will also give an infusion of cash to a county that desperately needs some bridges and some roads fixed.”

Woodall also noted that Putnam would become the first county in the state to receive its economic development payment from a solar development in a single, lump sum.

The commissioners also approved the core language of agreements on both road use and decommissioning. The exact verbiage of these agreements will have to be worked out as the project develops.

There are still multiple hurdles for the project to clear before it becomes reality. One is that Arevon is still awaiting approval for the proposed farm to even connect with the energy grid, via MISO (Midcontinent Independent System Operator). Without MISO approval, there would be no customers for the energy generated.

MISO approval was supposed to come in July, then was delayed until October, and now is being estimated at January or February. This is reportedly an industry-wide problem right now.

Locally, the only remaining hurdle is approval of a special exception by the Putnam County Board of Zoning Appeals. While a solar farm is an allowed special exception, the BZA has the right to impose certain restrictions as part of granting any special exceptions.

The matter is set to be on the BZA agenda during a special meeting at the Bainbridge Community Center at 6 p.m. on Tuesday, Aug. 14. If past practice of the BZA is any indication, it could take several months for the matter to be settled.

Besides any restrictions put in place by the BZA, Cold Spring will need to meet all applicable legal and environmental requirements, including the standards in Putnam County’s solar ordinance, to be approved for construction.

In an unfortunate bit of scheduling by county officials, the BZA meeting will run partially concurrently to the August Putnam County Council meeting, which is set for 6:30 p.m. Tuesday at the Putnam County Courthouse.

A solar farm matter will also be on the agenda for that meeting, with the council considering a request to add additional acreage to the project.

Woodall shared that developers say the best case scenario for them is to have construction begin in 2024 and be done by the end of the year, with power generation by the first quarter of 2025.

If this happened, the county would not see its economic development payment until late 2025 or early 2026, with tax rates likely unaffected until 2027.

“This agreement shows how solar energy can help strengthen Indiana communities. We are grateful to Putnam County for creating an agreement that will benefit their residents, local landowners and Indiana’s energy sector for years to come,” Arevon Development Director Thomas Hudzik said. “County officials struck a great balance between the need for economic development, the interests of the community, and the property rights of individuals.”

According to Arevon, the project would generate enough clean electricity to power more than 30,000 homes while providing lease payments to local landowners and creating more than 220 construction jobs.

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  • When our grandchildren look back on this in 30 years, they’ll wonder why we let a few people benefit at the expense of the rest of the county.

    -- Posted by techphcy on Sat, Aug 12, 2023, at 7:00 PM
  • Really? May be a benefit for rest of county. Could be failure for the few.

    This is energy that is renewable and clean. All should be ok with that. The SSSLLC definitely should not complain. It is good for climate change and takes land away from evil food and feed growers.

    The rightist's can't complain. It supports property rights. We want control of what we own. Those who say they don't are not being honest. Even the most leftist person doesn't want to be told what to do with what they own.

    I am excited to see where this may or may not lead.

    -- Posted by beg on Sat, Aug 12, 2023, at 10:08 PM
  • Property owners can do what they like with their property. The taxpayers should not subsidize it.

    -- Posted by techphcy on Sun, Aug 13, 2023, at 2:05 PM
  • When our grandchildren look back on this in thirty years they'll wonder what took us so long.

    -- Posted by unbiased on Sun, Aug 13, 2023, at 5:03 PM
  • all about $$$$$

    -- Posted by Falcon9 on Sun, Aug 13, 2023, at 6:12 PM
  • This land was most likely already being subsidized by taxpayers as a result of the socialist program commonly referred to as the farm bill.

    -- Posted by Koios on Sun, Aug 13, 2023, at 7:39 PM
  • What is the obligation of the county in exchange for the $5.7 million? I may be mistaken, but I don't recall this type of agreement in the past. Does the county have an obligation to the company to provide certain goods and services? Or, is this just a new way to buy your way through the approval process?

    -- Posted by rawinger on Mon, Aug 14, 2023, at 6:05 AM
  • Are Putnam County and the City of Greencastle competing for the biggest financial boondoggle -Solar farm vs. YMCA center?

    -- Posted by Lookout on Mon, Aug 14, 2023, at 10:22 AM
  • While I don't personally agree with tax dollars (any tax dollars) supporting Solar I guess this project might somehow benefit Indiana. I do have a concern with the panels that fail. There isn't much that is salvageable and therefore most of the failed panel is shredded and sent directly to the landfill. So many "Green " projects are not so green if you look at the entire process from mining, processing, manufacturing and the disposal.

    -- Posted by Alfred E. on Mon, Aug 14, 2023, at 10:52 AM
  • I am glad to see the SSSLLC supports nutrition for the hungry

    -- Posted by beg on Mon, Aug 14, 2023, at 12:26 PM
  • Beg:

    Expiain "SSSLLC".

    -- Posted by Lookout on Mon, Aug 14, 2023, at 1:34 PM
  • Let's see where all this money coming from.

    The Feds are anteing up the big subsidies in the name of saving the planet from climate change.

    Look here:

    https://www.americanexperiment.org/solar-subsidies-amount-to-50000-per-acre/

    Of course, we all know by now, we don't have revenues to cover that so they "borrow" or more accurately print dollars, increasing inflation that devalues current and future dollars, if we stay on that course of spending.

    We used to used to rely on our own natural resources to fuel generators like coal and natural gas, which we have plentiful amounts for electric grid needs. Now, those are deemed off limits.

    Like it so far?

    So, the subsidies are allocated to the various (largely newly created) companies that begin the process of developing solar farms in poorer rural areas that will jump at the chance for Federal subsidies. (The Washington eletes don't want solar farms in those lobbyists backyards don't ya know)

    At each point of the process a little bit of those dollars have to be paid off to get the permission to proceed to the next step. Every large and small bureaucrat gets a piece of the action. Ya see?

    Did we get the best deal we could? Doubt it.

    The biggest piece still remains with the big lobbyists though. They never lose.

    You know em, Rich Men North of Richmond.

    -- Posted by direstraits on Mon, Aug 14, 2023, at 1:39 PM
  • That sounds like the same type of attitude that people had when they argued against the Industrial Revolution. The Industrial Revolution happened despite those type of views.

    -- Posted by Koios on Mon, Aug 14, 2023, at 8:49 PM
  • The Industrial Revolution and its consequences have been a disaster for the human race. But by all means, let’s just repeat the mistake.

    -- Posted by techphcy on Wed, Aug 16, 2023, at 5:12 PM
  • that is an interesting statement. I assume you don't utilize any aspect of it? Still doing everything as in 1850? Don't drive a car?

    -- Posted by beg on Wed, Aug 16, 2023, at 10:56 PM
  • Solar farms, wind farms are simply another waste of tax money that will never deliver electricity when the base load of the grid needs it.

    That means when the sun goes down or the wind isn't blowing in the dead of winter or in the heat of summer, if the reliance is on these sources of electricity is predominate, they cannot deliver.

    We can expect rolling blackouts and brownouts will happen when the reliance on these sources of power fails. California and Texas and soon Florida are examples of states that are not being well served by these expensive low producing schemes.

    But, that won't stop the well-placed politicians and bureucrats from promoting them. High stakes virtue signaling is what gets them re-elected all on our tax dollars.

    You can bet they won't be affected when the grid gets throttled down and the heat goes out or the A/C gets turned off by your smart meter.

    Just keep listening to the same old b/s.

    -- Posted by direstraits on Thu, Aug 17, 2023, at 7:01 AM
  • direstaits-You are smack on! In only a few years, everyone seems to have forgotten the experience, or suffering, of Texas when the ice storms collided with Green energy. It wasn't pretty. And, as you wrote, the Texas disaster was only one of many emergencies/disasters.

    High-stakes virtue signaling? How true! Soon, the word responsibility will be removed from the dictionary.

    -- Posted by Prince of Stardust Hills on Thu, Aug 17, 2023, at 9:49 AM
  • @beg It’s a quote from an infamous manifesto. It doesn’t mean that I/we are opposed to industrialization and modernization; what it means is that we’re opposed to the manner in which it has been done. People jump on a giant airplane anytime they want and go anywhere they want, sometimes just one single person is transported at a time this way, with no consideration of the impact that has. We use many billions of single use plastic products per year. For decades we spewed lead vapors from our vehicles (in some cases that’s still legal), poisoning entire generations of children. Lobbyists and bad actors divide the people on every issue of consequence, all the while stuffing their pockets with the spoils of a silent war.

    Crony capitalism, the combination of an intentionally rigged economic system and a bought-and-paid-for (worldwide) government, is destroying us all, and we happily oblige as long as the cell towers keep working.

    -- Posted by techphcy on Thu, Aug 17, 2023, at 3:00 PM
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