The Tazewell County board has backed away from plans to extend its enterprise zone, which would have allowed Horizon Wind Energy to operate with sales tax abatements.

Houston-based Horizon Wind Energy LLC hoped the county would allow the proposed Rail Splitter Wind Farm into the enterprise zone that is controlled jointly by the county and the City of Pekin, but the board voted to table the issue.

Tazewell County State's Attorney Stewart Umholtz has said extending the zone with 3-foot strips of land down to the southern part of the county to include the wind towers is against the letter and spirit of the state's Enterprise Zone Act.

"This proposed expansion of the enterprise zone is in clear conflict with the purpose, intent and standards of the Enterprise Zone Act and its accompanying administrative regulations," Umholtz said in a written decision issued Monday. "As proposed, the expansion of the enterprise zone is an abuse of the Enterprise Zone Act, and passage of the recommended expansion constitutes a knowing disregard for state statute."

The board's Executive Committee voted 9-2 on April 23 to recommend to the full board that the expansion be approved.

Bill Whitlock, project development manager for the wind farm, said then the project would likely proceed if Tazewell County doesn't grant admission into the zone.
But Whitlock told the board Wednesday he couldn't make that promise.

"I can't stand here before you today and say it will go through or it won't go through," Whitlock said. He declined to comment after the meeting.

To be included in the enterprise zone, both the county and Pekin must agree to the expansion. Pekin has already approved the necessary changes for extending the zone.

Pekin city attorney Burt Dancey said he disagrees with Umholtz and said the legality will be up to the Illinois Department of Commerce and Economic Opportunity.
Logan County and Lincoln have already granted Horizon the use of the enterprise zone with special conditions. The county will receive a building permit fee of $7,000 for each of the 29 proposed towers.

Lincoln stands to gain up to $150,000 in enterprise zone administration fees from the Rail Splitter Wind Farm, which is proposed for construction on land miles away from the city limits.

But, at a $5,000 annual payment to the city by the wind farm, it will take 30 years to earn that much. At the moment, the city only has a guarantee to receive the annual payments through 2017, when the Lincoln-Logan County Enterprise Zone is due to expire.

State officials could extend the zone's life, but there's no guarantee that will happen.
Horizon Wind Energy's agreements in Logan and Tazewell counties specify that the company will not take advantage of property tax breaks that are one of the incentives of building inside an enterprise zone.

Whitlock has said the company only wants to utilize the zones' incentive that will allow the company to pay no sales tax on all in-state purchases of construction materials. He said Horizon intends to make Illinois its point of purchase for the wind turbine components.

The regional planning commission is expected to give its approval for Horizon to begin construction at its May 7 meeting at 7:30 p.m. From there, the issue will go to a board of appeals in the Emden area where both proponents and advocates will be heard.

The county board is due to take the final vote on the matter in a May 20 adjourned meeting.