Naples, N.Y. - The Naples School Board voted last week to accept an agreement with First Wind that would give the district higher payments on any windmills the company may build within the district boundaries.

"I feel very positive about this resolution concerning the Prattsburgh Windfarm project," said Interim Superintendent Jerry Macaluso.

According to Macaluso, the district will receive $860,686 during the life of the 20-year payment-in-lieu-of-taxes agreement, once the eight wind turbines are constructed and connected to the grid.

PILOT agreements typically allow an entity to operate for up to 20 years without paying taxes on the full value of its property. Instead, businesses pay a fee that gradually increases to full taxation.

The first year of the PILOT will generate $36,628 in revenue for the district, Macaluso said, and the final year, the district will receive $55,509.

The current windmills visible from Naples are part of the two Cohocton wind farms, a separate project from the wind farm plans in Prattsburgh. Under the original PILOT agreement, Naples would have received a total of $649,964, but the district's attorney Ed Premo said in May 2008 the district should receive more. Both Naples and the Prattsburgh school district sued, seeking a greater share.

At this point, Macaluso said First Wind has put the project on hold because of finance troubles.

"The Naples Board of Education is to be commended for its due diligence on this matter and its fiscal and civil concern for the community of Naples," Macaluso said.