Abatement approved for solar farm in Russell Township

Tuesday, December 20, 2022
Courtesy photo/Arevon Energy

A proposed solar farm in Russell Township took a step toward completion Tuesday evening.

In a 5-2 vote Tuesday evening, the Putnam County Council approved tax abatement for Cold Spring Solar Farm, a proposed 1,800-acre (down from 2,200 acres), 200 megawatt solar farm.

Council President Dave Fuhrman made the motion, which was seconded by Councilman Phil Gick.

The affirmative votes were cast by Fuhrman, Gick, Stephanie Campbell, Keith Berry and Danny Wallace, while Jay Alcorn and Larry Parker dissented.

In introducing the proposal, Greencastle-Putnam County Economic Development Director Kristin Clary noted that the nature of the abatement — 75 percent of personal property taxes abated over 10 years — was different from prior local abatements.

“This is unique,” Clary said. “We’ve never done this before.”

The abatements granted by the county are generally either the traditional “tax phase-in,” which goes from no property taxes to a full payment over a period of years or a full abatement in which no taxes are paid over the life of the abatement, generally seven or 10 years.

It was also noted that abatement is not the final step in giving the go-ahead to developer Tenaska or Arevon Energy, the ultimate owner of the farm.

One hurdle still to be cleared include the Putnam County Commissioners reaching three agreements with the developers regarding an economic development payment, road use and decommissioning.

Additionally, 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 reach a decision.

However, Clary explained that construction on the project, should it be entirely approved, is not planned until December 2026 through December 2027.

Alcorn and Parker, both with backgrounds in agriculture, made their reasons known for opposing the measure.

“Everything I’ve seen shows that this would be an economic benefit to this county, but some things are more important than just dollars and cents,” Alcorn said. “I think you guys need to figure out how to do it without tax abatement. Maybe you get more creative and not take this farmland and outbid farmers for it. There’s lots of warehouses with flat roofs. There’s rough ground. Maybe you need to look at your business model and figure out how to change it."

He went on to note that he is not opposed to green energy, but “I just don’t think it’s the right use for our land.”

“I agree with Jay,” Parker added. “I don’t think it’s the right use for this land. I really feel for the people in this area that don’t get the benefit from this.”

Parker also raised the question as to why the abatement was necessary.

“There’s something like $5-6 million paid up front, then the tax abatement?” Parker said, noting that the economic development agreement will include a sizable payment to the county. “If you guys have $5-6 million up front to spend, then why the tax abatement?”

Officials from the energy company have said the abatement is necessary to make the solar farm viable.

A lifelong farmer himself, Berry felt the need to explain his vote in favor.

“I fully understand where you folks are coming from,” Berry said to the gathered crowd, much of which was opposed. “My concern is, we have someone who owns land, how can anyone tell that person what they can and cannot do with that land they bought? I’m a farmer. Do I want to see land go away? I just hate to see some group, Council or whatever, say what you can and cannot do with land you purchased.”

Parker countered that preservation of farmland was why the county adopted planning and zoning 30 years ago.

“When planning and zoning came in it was because a big landfill was going to come into Bainbridge, and the Commissioners wanted to preserve the farmland,” Parker said.

Also noted during the proceedings was that the abatement only applies to the personal property (that is, the equipment) and not the land itself. Clary said that once the land is no longer used for agricultural production and moved to energy generation, its taxable value will increase nearly tenfold.

One voice that was added to the discussion on Tuesday was that of the Russellville Volunteer Fire Department.

RVFD Capt. Bill Spiegel spoke on behalf of the department regarding safety issues, asking why the department had not been contacted throughout the process of the solar farm coming into the community.

“I am pretty sure that everyone is being told how safe this will be and how nothing can go wrong,” Spiegel said. “While, yes, it may be very safe, what happens if or when something does go wrong?”

Citing a large woods fire that happened in Russell Township years ago, Spiegel asked what would happen if such a fire were to approach the solar panels. Would there be a release of hazardous materials — either liquid or airborne?

Spiegel said the department has done its homework regarding expensive equipment that would be needed, including protective clothing, additional breathing aparati and special equipment for fighting chemical fires. All of this in addition to needing additional training.

“While some may think this is a great project for our community, what will it really cost us all and who will bear the cost?” Spiegel said.

It’s unclear what effect such arguments will have as the matter moves forward, but for now the developers have cleared the first hurdle to final approval.

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  • Everything I’ve seen shows that this would be an economic benefit to this county, but some things are more important than just dollars and cents,” Alcorn said. “I think you guys need to figure out how to do it without tax abatement. Maybe you get more creative and not take this farmland and outbid farmers for it.

    Sounds like an admission on 2 levels- an economic positive and selfish position regarding a competitive market place.

    Mr Berry brings practical sense with personal experience to this. Kudos for his perspective. Thanks Mr Berry

    -- Posted by beg on Wed, Dec 21, 2022, at 12:34 AM
  • Just because something is an “economic benefit to the county” doesn’t mean that benefit is experienced equally by everyone, or even by everyone who funds it with their own tax dollars. When the “benefit to the county” is ten million dollars but 9.5 million of that goes into the pockets of a small handful of people while the rest get next to nothing, that’s just abuse of government power, no “benefit” at all.

    See Dixie Chopper for a prime example.

    -- Posted by techphcy on Wed, Dec 21, 2022, at 7:29 AM
  • So much for our elected officials actually listening to the majority of the public. So how much abatement?

    -- Posted by Alfred E. on Wed, Dec 21, 2022, at 8:20 AM
  • Beg - I do not believe Mr. Alcorn was being selfish. Sometimes you have to look at things from the global perspective. And, that is what farmers are expected to do. We are on course to have 9 billion people on this planet by 2050. Currently, we do not raise enough food to feed 9 billion people. Farmers are expected to raise their yields annually so America can maintain its status as the "safest and cheapest food supply in the world." All of this must be accomplished while balancing sustainable agriculture methods. I believe what Mr. Alcorn is stating is that we have land that cannot be used for production agriculture. That land may be too hilly, not have a deep enough soil profile, or is already occupied by buildings. Why don't we make better use of the non production land and allow for those spaces to be used for green energy? You will see a great example of this type of use at the Indianapolis airport. Have you seen the solar fields there? The ground the solar fields are occupying is NOT able to be used for production agriculture. Now, do I believe that land owners should be able to do with their land what they want? Absolutely! The question last night should not have focused on whether solar should be considered as a viable use for the land, but should we allow an abatement? I was not in favor of an abatement. My concern is that the company will go belly up before they begin paying taxes. At that point, it is money I work hard for going to pay for someone's failed business plan.

    You may believe I am exaggerating when I state that farmers have to think "globally". I encourage you to research where the majority of our phosphorus fertilizer comes from. While you are reading that article, you will find the same country raises 35% of the world's wheat crop. The words to type into your google search engine are, "what are the effects of the Ukraine and Russia war on agriculture".

    -- Posted by jetmx96 on Wed, Dec 21, 2022, at 9:08 AM
  • Very well stated, jetmx96. Cannibalizing prime farm ground just does not make good sense, but at question is tax abatement. A project that is not viable without abatement will not survive in the long run.

    -- Posted by Inn at DePauw on Wed, Dec 21, 2022, at 10:34 AM
  • I'd like to thank Mr Alcorn and Mr Parker! These gentlemen are protecting our county's farm ground and the farmers of said ground! Without representatives like this in our county, we will become another Johnson, Hancock, Boone, or Hendricks County sooner than we expect! Lets think of the future while respecting the past history!

    -- Posted by ValHalla84 on Wed, Dec 21, 2022, at 11:09 AM
  • Jet,

    Don't disagree with any of what you said. I just made an observation of a statement. Both can be true in this instance.

    I am in the food production industry so yes, must think globally. That includes policy that supports innovation all over the world

    -- Posted by beg on Wed, Dec 21, 2022, at 11:55 AM
  • Putnam County Council made a big mistake in approving a 75% abatement for 10 years. By my calculations, a traditional 10 year phase-in averages 55%. Why the extra 20% for 10 years?

    Director Clary of the G-PCED comments gave no reason(s) for the bringing up the 75% abatement.

    Have our county officials been following Montgomery County just to our north and their dealings with these companies? Apparently not. Go to the Crawfordsville Journal-Review website and look at the "letter to the Editor" responses over the past 2 months. A lot of questions raised have not been answered.

    If my understanding is correct, Montgomery County did not approve any abatement for the companies proposed project. So have the companies left Montgomery County and come to Putnam County to get a sweetheart deal?

    The Putnam County Commissioners and the Putnam County Board of Zoning Appeals should take their time and really study these two companies - Tenaska, Aervon Energy - before making a decision.

    -- Posted by Lookout on Wed, Dec 21, 2022, at 11:59 AM
  • This is a wonderful opportunity for Putnam County. Thank you to all of the forward looking members of the Putnam County Council for moving this forward.

    -- Posted by Koios on Wed, Dec 21, 2022, at 5:44 PM
  • Well that settles it. The wacko left wing is in favor, so it must be a bad idea.

    -- Posted by techphcy on Wed, Dec 21, 2022, at 6:14 PM
  • It’s infrastructure week! Maybe for real this time.

    -- Posted by Koios on Wed, Dec 21, 2022, at 6:47 PM
  • Putnam County Officials - Did a little searching on the Internet.

    Posey County, Mt Vernon Indiana has been working on a 300MW downsized to 200MW solar project with NO TAX Abatement for two years. NO TAX abatement. Call their local representative, Stacy Wagner @ 812-573-0032 Thursday 9AM-1PM and ask her.

    The 12/19 Banner-Graphic article stated "Tensaka and Arevon said the economics of the solar farm did not work without the granting of abatement."

    The Putnam County Council voted 5-2 to approve a 75% abatement. Why?

    -- Posted by Lookout on Wed, Dec 21, 2022, at 8:55 PM
  • Why? Because it will be good for the county.

    -- Posted by Koios on Wed, Dec 21, 2022, at 10:10 PM
  • "A project that is not viable without abatement will not survive in the long run." Very true, but sometime that project is necessary. Ever heard of farm subsidies? Many farmers couldn't survive without them, but we still need them if we want to have food readily available.

    -- Posted by unbiased on Wed, Dec 21, 2022, at 10:37 PM
  • Good point. The farm bill is the greatest socialist experiment the government enacts other than maybe welfare and disability benefits. I’d rather get something out of a government/taxpayer investment.

    -- Posted by Koios on Wed, Dec 21, 2022, at 11:03 PM
  • do you all know that 80% of the farm bill has nothing to do with the farm?

    -- Posted by beg on Thu, Dec 22, 2022, at 12:22 AM
  • I thought the council would have done their homework better. Instead, they listened to their local experts at the "Development Center".

    "Solar is the future" if I remember the quote correctly.

    That doesn't mean today.

    Solar on its best day gives 40% efficiency of sunlight to electricity conversion. Best full sunlit summer day...40%.

    10am to 3pm that's all you can expect from this type of array.

    Is it worth this attention and tax abatement exception?

    Just remember that when the snow falls and the temperatures fall too on a cloudy winter day. How much would it contribute to the grid when you need it the most?

    How much public money will they give away to get such an unreliable, inefficient boondoggle that is a solar field?

    Another woke delusion.

    -- Posted by direstraits on Thu, Dec 22, 2022, at 9:35 AM
  • I’m not sure if I am reading this correctly. What is the abatement on? Is it the panels and associated equipment only? Does the”farmland” fall under a different tax now that it is no longer farmland? If so who pays for the tax increase, the landowner? If so how much more will the former farmland generate in taxable income for the county?

    -- Posted by Simplelife on Thu, Dec 22, 2022, at 3:29 PM
  • I do support wind power. I would love to know those that supported here in words- would if your property was impacted? If you could hear the humming/ buzzing? If it would be in your view?

    -- Posted by beg on Thu, Dec 22, 2022, at 6:00 PM
  • The NIMBY argument is very coastal/suburban elite bougee. But if that’s what you got, I guess you use it.

    Kind of like the stolen election. Funny how Fox News talking heads are now admitting under oath that they knew that was a lie. Hmmm.

    -- Posted by Koios on Thu, Dec 22, 2022, at 9:26 PM
  • playbook!!!

    -- Posted by beg on Thu, Dec 22, 2022, at 11:48 PM
  • Remember this, the only electricity heating your homes today is coming from coal or natural gas-powered generators, HYDROCARBONS from the earth. Very efficient and warm.

    Those that are cozied up to their solar and wind generators...not so much.

    Let's see now... which administration commanded that "WE WILL NOT allow anymore coal plants be constructed in the US because we will regulate you out of business!"

    Oh yeah...Obama/Biden

    Remember now?

    -- Posted by direstraits on Fri, Dec 23, 2022, at 6:20 AM
  • I wonder if buggy makers preached how bad cars were

    -- Posted by beg on Fri, Dec 23, 2022, at 8:25 AM
  • Different paradigm.

    Gasoline engines in autos and utility vehicles made for less stressed life, more productive and increased efficiency.

    Imagine the amount of horse crap in the streets of a city of any size. Quality of life increased. It was obvious, everyone working man or woman saw the benefits of that paradigm shift.

    Not so today.

    Imaginary manmade climate change forcing alternative fuel dictates. A whole industry of high-cost environmental notions threatens our economy and sovereignty on a global scale.

    No thanks.

    -- Posted by direstraits on Fri, Dec 23, 2022, at 2:29 PM
  • “Imaginary climate change” is burying your head in the Saudi Arabian sand. The same Saudis who were mostly responsible for 9/11. Wake up. Stop believing the lies. From both sides of the political aisle. It’s the only way forward.

    -- Posted by Koios on Fri, Dec 23, 2022, at 9:56 PM
  • KOIOS, do you mean that neither the democrats or republicans are telling the truth or are both the anti-fossil fuel or pro-fossil fuel groups misleading us?

    And on the side, referring to your comment concerning Saudi Arabian sand, I'm having difficulties making the connection between a bunch of rabid jihadists and Saudi petroleum policy, but then, again, I live in Cloverdale and eat at Macdonald's.

    -- Posted by Prince of Stardust Hills on Fri, Dec 23, 2022, at 11:14 PM
  • Climate change doesn't need to be questioned. Most science agrees Upper Midwest was under glaciers. We need to go back to that proper temp. We all would have to move but it would save the earth.

    the point- climate change is real but don't think we need to go off the deep end to support the radicals who make a ton of money promoting fear. The extremes are making it hard for practical folk to take this seriously.

    Be practical, be good stewards, embrace proper innovation. Oh, and based on images during 2020 covid shutdowns, metropolitan areas need to ban all gas powered vehicles and have factories cut back their production.

    -- Posted by beg on Fri, Dec 23, 2022, at 11:55 PM
  • Playbook.

    -- Posted by Koios on Sat, Dec 24, 2022, at 12:14 AM
  • “People are desperate to save the environment, and are willing to spend boatloads of taxpayer money to do so. I can scam those people out of billions of dollars if I promise a solution that doesn’t really help, but sounds like it would.”

    Ethanol and solar in a nutshell.

    -- Posted by techphcy on Sat, Dec 24, 2022, at 6:36 AM
  • Yes, being practical, wise, open mind to consider the facts in that specific instance. Yes, an excellent playbook. Merry Christmas.

    -- Posted by beg on Sat, Dec 24, 2022, at 11:16 PM
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