County Council conducts public hearing ahead of solar decision
With less than a month until the Putnam County Council votes on a tax abatement for a proposed solar farm in Russell Township, it’s not clear what the decision will be.
It is clear, though, that public opinion remains divided regarding Cold Spring Solar Farm.
It should also be clear that, even if the abatement is approved during the Tuesday, Dec. 13 Council meeting, it’s not the final hurdle developers will have to clear.
On Tuesday, nothing regarding the solar farm was up for approval or denial by the Council. Instead, the matter at hand was a public hearing, a chance to explain the perspective of both the developers and the county’s finances, as well as a chance for members of the public to express themselves.
The matter attracted a full house to the Commissioners Courtroom in the Putnam County Courthouse, with a number of people sporting “I support solar” stickers, though quite a few more were also clearly in opposition to the proposition.
After Council President Dave Fuhrman gave a brief introduction and asked everyone to “please keep it cordial,” Putnam County Economic Development Director Kristin Clary opened the hearing with a presentation on the process of potentially granting abatement to Cold Spring Solar Farm.
A project of Arevon Energy Inc. and Tenaska, Cold Spring Solar LLC would bring a 2,300-acre, 200-megawatt solar farm to Russell Township.
The Council originally approved the area in Russell Township as an economic revitalization zone back in July, which made the property eligible for abatement.
However, a decision on granting the abatement has been delayed while county officials have gathered more information and negotiated with Arevon and Tenaska regarding an economic development agreement as well as agreements on road use and decommissioning.
An abatement could go in two ways — it could be a 10-year “tax phase-in” in which taxes go from $0 to the full amount over the period or it could be 10 years of full abatement, or no taxes paid.
Should the latter be approved, Arevon’s economic development payment to the county would likely be higher.
Chris Matthews of Arevon, which will take ownership of the project once it has been developed by Tenaska, explained the benefits of the project to the county, including “millions of dollars of property taxes” over the life (estimated 30-35 years) of the solar farm.
He also noted jobs, which would be 214 direct and 118 indirect jobs during the construction phase, estimated to be 12-18 months during 2024 and 2025, as well as five direct and 11 indirect jobs once the farm is up and running, would add money to the local economy.
Jarrod Pitts of Tenaska noted that even with abatement, which the companies have said is essential to their model, the project would bring more than $40 million in additional taxes to the county, besides the economic development payment.
He also noted that the property owners would end up paying a much higher rate on the land, as the land itself is not eligible for abatement. This means the county would begin collecting more money from the property even with the abatement in place, as the tax rate would increase by nearly tenfold.
Pitts also addressed some of the concerns addressed by residents, saying there would be little-to-no sound and that the land will, by contract, be returned to its original form following its use.
Representing the county’s interest, Jason Semler of Baker-Tilley presented the findings of a financial study on the project. He noted that, as proposed, the project represents a $231,400,000 estimated taxable investment.
He noted that the estimated assessed value of the land in question would go from $94.5 million in 2027 (the estimated first year taxes would be paid on the completed project) to $129.7 million in 2028 and back down to $90.1 million in 2029 and beyond. Semler noted, however, that none of this considers the possibility of much of that tax revenue being abated.
Finally, Semler emphasized how a project like this reduces the tax rate for other taxpayers in its various taxing districts. This is because the county, school corporation or other entity cannot simply increase its tax levy. Instead, when a property or properties increase in value, they simply assume a larger percentage of the overall tax base.
In this light, the tax rate would decrease by an estimated $0.0217 in Putnam County, $0.0277 in Russell Township, $0.1437 in North Putnam Community School Corp. $0.0028 for the Putnam County Public Library and $0.0017 for the Putnam County Airport Authority.
This means that for Russell Township residents, who pay taxes for all of these entities, the tax rate would decrease by an estimated $0.1976.
“Those who pay in the North Putnam School District will see the biggest benefit,” Semler said. “But everyone will see some aspect. The farther you go out, the less you will save.”
With the official presentations complete, the public had a chance to comment, though there did seem to be some confusion in the room regarding not everyone signing in and therefore not having a chance to comment.
Kelly Colvin, who lives nearby, expressed a number of concerns, including the loss of farmland, the effect on the views in the area, noise from the movement of the solar panels, possible water contamination and the effect on property value.
Husband Chad Colvin expressed a general distrust of the process, including not being sure about what the county government would use the economic development payment for, the fact that Cold Spring is listed as a limited liability corporation (and, in Colvin’s view, could walk away from the project without any recourse) and asking why Indiana when many other states receive more sunlight.
Teresa Finchum, who also lives in the area, also expressed her desire not to be surrounded by the solar panels.
“I’m going to have it in front of me, beside me and behind me,” Finchum said, “and I don’t want to look at it.”
However, a number of supporters were also in attendance on Tuesday,
Among these was Nick Gentry, who is the community representative for the project, noting that he has lived in the community for 35 years and that the project includes land his family settled on.
Speaking on behalf of landowners who were not in attendance, he noted that the project borders against a toxic waste dump and therefore has minimal impact on society, that turning it down takes money out of the county’s lands and constituents’ hands, that it would infringe upon their property rights.
DePauw Professor Jeanette Pope, who has a background in geology, spoke about the need to look toward renewable resources, saying fossil fuels are limited and don’t burn cleanly. She said it’s time to seek other, renewable methods, such as solar.
“That is going to be the future,” Pope said. “It has to be the future.”
Steve Eberly, executive director of Hoosiers for Renewables said the cost of renewable sources has come down, so projects such as this should be supported.
“Solar power and wind power now cost just about the same as coal and gas,” Eberly said.
Colby Strasburger, one of the landowners who stands to lease his ground to Arevon, said arguments about what solar panels might do to the land or the water pail in comparison to the Heritage Environmental landfill that’s adjacent to the land in question.
“I can look that way (east) and there’s the most hazardous waste dump east of the Mississippi — I could walk to it,” Strasburger said. “There’s no way a solar panel can compete with that.”
Strasburger also expressed his desire to do what he sees fit for his own family.
“I just don’t see how anybody could complain if I want to better myself and my family, how anybody could say that’s not a good idea,” Strasburger said. “I never once said anybody else could not better themselves and their family.”
The question before the Council, though, is not about land use, but about finances. During the December meeting, the seven members will have to weigh the wisdom of granting abatement alongside the economic development payment and other agreements.
Should abatement be granted, it won’t be the final step. At that point, the matter will go before 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 earliest the matter would likely be in front of the BZA would be January, and the board has a habit of not hurrying through decisions, sometimes taking several months to consider all factors.
In the meantime, the debate will continue among residents of Russell Township and the county as a whole.