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Commissioners Court abatement for wind farm

Pecos County Commissioner for Precinct 3 Jay Kent speculated aloud about how much money the county was losing, but after a discussion the Commissioners Court approved unanimously Monday a tax abatement for the Sherbino II Wind Farm LLC, a development venture of British Petroleum Alternative Energy. The court approved the agreement with amendments. One removes a clause that requires an invoice be sent to BP each year, placing the onus for payment by Jan. 31 of each year of the abatement upon BP; the second specifies a public notice to other taxing entities.

Pecos County Commissioner for Precinct 3 Jay Kent speculated aloud about how much money the county was losing, but after a discussion the Commissioners Court approved unanimously Monday a tax abatement for the Sherbino II Wind Farm LLC, a development venture of British Petroleum Alternative Energy.

The court approved the agreement with amendments. One removes a clause that requires an invoice be sent to BP each year, placing the onus for payment by Jan. 31 of each year of the abatement upon BP; the second specifies a public notice to other taxing entities.

The tax abatement, scheduled to take effect in 2010, would be 100 percent each year for 10 years. BP agrees to pay the county $300,000 in the first and second years of the abatement, and $550,000 in the eighth and 10th years, for a total payment in lieu of taxes of $1.7 million.

"How much actual tax dollars are we giving up here?" Kent asked before doing some rough calculations figuring depreciation into the equation and mentioning an amount of $5 million. "If you asked for an abatement, you wouldn't get it, and if I asked for an abatement, I wouldn't get it. ... There's a perception out there that only the big corporations are... more [truncated due to possible copyright]  

Pecos County Commissioner for Precinct 3 Jay Kent speculated aloud about how much money the county was losing, but after a discussion the Commissioners Court approved unanimously Monday a tax abatement for the Sherbino II Wind Farm LLC, a development venture of British Petroleum Alternative Energy.

The court approved the agreement with amendments. One removes a clause that requires an invoice be sent to BP each year, placing the onus for payment by Jan. 31 of each year of the abatement upon BP; the second specifies a public notice to other taxing entities.

The tax abatement, scheduled to take effect in 2010, would be 100 percent each year for 10 years. BP agrees to pay the county $300,000 in the first and second years of the abatement, and $550,000 in the eighth and 10th years, for a total payment in lieu of taxes of $1.7 million.

"How much actual tax dollars are we giving up here?" Kent asked before doing some rough calculations figuring depreciation into the equation and mentioning an amount of $5 million. "If you asked for an abatement, you wouldn't get it, and if I asked for an abatement, I wouldn't get it. ... There's a perception out there that only the big corporations are getting the abatements."

Commissioner for Precinct 1 George Riggs responded: "That's one way to look at it. The other way to look at it is we're creating economic opportunities here in Pecos County."

Fort Stockton Economic Development Corporation executive director Doug May told the court the abatement for the $250 million project is very similar to what the court approved for Phase I.

May also reminded commissioners that the county sets the precedent for other taxing authorities with regard to abatements.

Future financial concessions may be required, May said, depending upon the actions of other taxing entities, particularly the actions of the Iraan hospital district.

Still, May was positive in his recommendation of the abatement.

"The benefit for the county is very strong," May said. Among other business, the court:

>> approved a lease in the industrial park with BOF Services Inc.; according to May, the five-year lease will be graduated, with BOF Services paying $1,000 per month the first year, $1,250 the second, $1,500 the third, $1,750 the fourth and $2,000 the fifth year; payment will be made once annually and BOF Services expects to take up the lease in September, making the first year's payment $4,000; BOF Services is an oilfield service company in business since 1981; the company currently has nine yards, including one in Pecos, and expects to have 12-15 local employees

>> declined approving a plat for the Fort Stockton Industrial Park as submitted by Doud BTS, which has purchased 100 acres of land east of the city; the plat was declined in order for Doud to resubmit with additions to remedy two concerns of the court: a 40-foot easement on the south side of the property and road specifications

>> awarded a bid for 18,000 linear feet of concrete and materials for cartpath work at Desert Pines Golf Course to Highland Concrete for $162,400; the bid is for 140 loads or 1,400 cubic yards of concrete

>> awarded a bid for labor to finish and form 18,000 linear feet of concrete cartpaths at Desert Pines Golf Course to D & D Pavers for $34,254

>> amended the contract with EDC for the construction of a housing facility at Fort Stockton-Pecos County Airport for CareStar 2 employees; the amended contract will include water, sewer, electric, parking lot, paving, heliport, fencing, lighting and other aviation safety equipment, for construction purposes, at an additional cost to not exceed $75,000

>> approved raising the county mileage rate to 58.5 cents per mile to conform to Internal Revenue Service guidelines; the raise is retroactive to July 1; the previous rate was 50 cents per mile

>> approved increasing the per diem rate for meals to $36 per day, retroactive to July 1; the previous rate was $30 per day

>> called for bids for a crossover or sport utility vehicle for the family and consumer science agent at the extension office; bids are to be opened at 11 a.m. Aug. 11

>> approved a request from the county to the Fort Stockton Convention and Visitors Bureau for funds for a new roof on the "Old Jail"; a quote from West Texas Contractors for labor materials totaled $4,750

>> approved a list of election judges and alternates for 2008-09

>> approved purchasing property at 209 W. Callaghan for $2,105.51 in unpaid taxes

>> approved the demolition of the house at 209 W. Callaghan

>> approved a bid of $15,200 from Angelo Refrigeration and Restaurant Supply for a Vent-a-Hood, commercial range and miscellaneous kitchen equipment for the Iraan Senior Citizens Building

>> approved the use of a part-time employee for Justice of the Peace Precinct 6 as a temporary full-time employee until a full-time employee is able to return to duty

>> approved waiving green fees at Desert Pines Golf Course for fundraising tournament Sept. 20 to benefit the Children's Miracle Network

>> approved the transfer of funds, the payment of overtime and the accounts payable from Pecos County Memorial Hospital

>> approved the payment of county overtime

>> approved the line item transfers and budget amendments, reports of county officials, the financial report and all accounts

>> received a presentation from Pecos County State Bank regarding the installation of credit card/debit card machines and/or ATMs at several county offices; the discussion pinpointed the Tax Assessor/Collector, Justice of the Peace Precinct 1, the County Clerk's Office, the District Clerk's office and Justice of the Peace Precinct 3 as candidates for the machines; the court took no action pending further discussions and the item will be placed on the agenda for the July 28 court session

 


Source: http://www.fortstocktonpion...

JUL 18 2008
http://www.windaction.org/posts/16030-commissioners-court-abatement-for-wind-farm
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