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CRESTLINE -- Black Fork Wind Farm turbines may start popping up next year across Richland and Crawford counties, raising uncertainties about taxes and effects on property values.
Gary Energetics, an alternative energy company (Denver, Colo.), plans to install 112 Vestas 1.8 megawatt wind turbines, starting in the second half of 2010. The turbines would be at various sites encompassing about 46,000 acres crossing the border of the two counties.
About 80,000 homes would receive power from the 200-megawatt wind farm during the project's first phase, said David Hettich, Gary Energetics vice president of business development.
American Electric Power-Ohio will supply power through transmissions from the Vernon Junction substation.
Phase 1 would be operational in 2011. Phase 2 would be able to generate 350 megawatts covering 100 square miles, and begin operation in 2013.
The wind farm is in the early stages of review by the Ohio Power Siting Board. Gary Energetics submitted a 900-page application to the board a month after the first public meeting July 14 in Mansfield.
Hettich said the public will be notified within 15 days of the application's acceptance.
Next, an administrative judge and board staff will conduct a 60- to 90-day project investigation, followed by a second public meeting. The developers await board approval and certification to build the wind farm.
The board monitors construction and the first two years of operation.
State Reps. Jay Goyal, D-73rd District, and Jeff McClain, R-82nd District, discussed the financial issues with Richland and Crawford county officials Friday morning at Lowe-Volk Park.
Phase 1 is estimated to cost $440 million. Each turbine costs $2.1 million.
McClain said a revised House Bill 218 was passed in an effort to reduce tax valuation of property used for renewable energy from 24 to 12 percent. McClain and Goyal doubt tax valuations will drop, especially if a cap and trade plan allows wind developers to trade carbon credits.
Another concern is that more than 6,000 truck deliveries of turbine parts, concrete and cable will cause wear and tear on county and township roads.
Gary Energetics is responsible for the cost of rebuilding roads after construction.
County engineers Tom Beck of Richland County and Cecil Newcome of Crawford County said neither county presently charges for driveway permits. Counties are responsible for issuing driveway permits and large building permits for turbine transportation and construction.
The group agreed pacts should be in place for county and township road maintenance funded by tax revenue.
"(Crawford County) has no countywide zoning, no building permits, so there's no authority to negotiate any fees," Crawford County Auditor Robin Hildebrand said.
She cited statistics from the Benton County Wind Farm in Indiana. Benton County issued building and driveway permits to finance the megawatt production fee fund. The Benton County Wind farm consists of 87 General Electric 1.5 megawatt turbines and began commercial production in April 2008.
Richland County Commissioner Tim Wert suggested both counties use a similar megawatt production fee fund, consisting of building permits for $1,700 per megawatt and driveway permits to provide revenue for inspections and safety services.
Richland and Crawford Counties, townships and school districts within the project boundaries will benefit from additional property tax revenue based on existing tax structure, Hettich said. Homeowners who sign a lease agreement with a wind developer can benefit from lower utility rates in the long run. But a homeowner may worry a turbine sitting 1,250 feet away will hurt the property value.
There is no evidence to indicate the presence of a wind farm decreases a property's value, according to a 2003 nationwide study, "Renewable Energy Policy Project." Hildebrand said it's not known if values will decline until a house is reappraised for sale.
Attorney Dave Nash of McMahon and DeGulis LLP in Cleveland is a lease lawyer familiar with agreements from wind energy developers. He said property values would increase because of the income stream the turbines bring.
"If the projects and leases are done right, the property values should go up," Nash said. "It really comes down to the relationship between landowners and developers, honest and open communication."
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