By Gregory Bacon

gbacon@observertoday.com

Tax incentives for two new solar projects in the town of Dunkirk are under consideration.

During the recent Chautauqua County Industrial Development Agency meeting, the board of directors was presented a plan regarding a 5 megawatt project and a 4.8 megawatt project. The two solar projects would be placed on about 56.8 acres of land at 3761 East Lake Road.

Construction for the solar project is expected to cost around $22,361,000.

The developers are requesting a 25-year Payment In Lieu Of Taxes agreement, as well as sales tax abatement.

According to Rosemarie Strandburg with the county IDA, if the PILOT is approved, it would mean about $1,302,000 in payments to affected taxing jurisdictions. The total tax exemption would be $2,464,091 plus $900,000 in sales tax abatement.

Strandburg said the town of Dunkirk is in support of the project.

“We wouldn’t move forward without their support,” she said.

She also said the projects have been in the works for several years.

Developers said the projects have a decommissioning plan approved by the town and will have a decommissioning bond in place after the Dunkirk Town Board approves the Host Community Agreement, which is expected in November. He said the bond will be updated every three years in correlation with rising construction costs.

The developers said trees will be planted to shield the projects from nearby residents and that the town approved of their landscaping plans.

The developer said they would like to do some preliminary work this winter and start construction in the spring. Construction is expected to last three to five months.

According to Dan Leary, one of the developers, energy from these projects are not going to any specific home or business, but are designed to benefit the local community.

“All the electricity goes into the grid but all the financial value associated with that, because these products are designated what is referred to as community solar, all the financial value of these systems can then be sold to any homes and businesses in the area and it actually is sold at an immediate discount to their bill,” he said.

About two years ago, county IDA Director Mark Geise announced that the IDA was going to start capping the number of new solar projects, in part because of grid space available, and to get some of the current projects completed.

Geise referenced that cap during the recent IDA meeting.

“We have so many projects stacked up right now, that if these projects aren’t well along … then we’re not going to entertain them. But, of course, if they’re already down the path pretty far, then of course we will,” he said.

He confirmed that these Dunkirk solar projects have been in the works for a while.

The IDA Board of Directors approved a “due diligence” resolution, which allows the IDA to begin exploring the project, including reviewing environmental studies. No final decisions were made.