Clay County is facing a potential $1.5 million shortfall due to Shannon Wind Farms filing for Chapter 11 bankruptcy, influenced by operational disruptions from the 2021 winter storm. This financial hit comes as the wind farm was due to make its final payment to the county under a 2015 tax abatement agreement. County commissioners are now reassessing the budget to prioritize essential services, while also hiring a bankruptcy attorney to attempt to recover some funds.
Clay County is facing a potential $1.5 million shortfall due to Shannon Wind Farms filing for Chapter 11 bankruptcy, influenced by operational disruptions from the 2021 winter storm. This financial hit comes as the wind farm was due to make its final payment to the county under a 2015 tax abatement agreement. County commissioners are now reassessing the budget to prioritize essential services, while also hiring a bankruptcy attorney to attempt to recover some funds.
CLAY COUNTY — The Clay County budget could be facing some changes after a major county wind farm filed for bankruptcy.
Shannon Wind Farms filed for Chapter 11 bankruptcy last month.
Shannon Wind Farms received an abatement from Clay County commissioners in 2015, in which they would give the county an annual payment in lieu of taxes.
According to court documents, the farm fell victim to the February 2021 winter storm, which prevented the windmills from making electricity, and the company could not keep up with the market price at that time.
This year was supposed to mark the final payment the county received from the abatement, but with the wind farm filing for bankruptcy, the county could potentially miss out on $1.5 million.
According to …
... more [truncated due to possible copyright]CLAY COUNTY — The Clay County budget could be facing some changes after a major county wind farm filed for bankruptcy.
Shannon Wind Farms filed for Chapter 11 bankruptcy last month.
Shannon Wind Farms received an abatement from Clay County commissioners in 2015, in which they would give the county an annual payment in lieu of taxes.
According to court documents, the farm fell victim to the February 2021 winter storm, which prevented the windmills from making electricity, and the company could not keep up with the market price at that time.
This year was supposed to mark the final payment the county received from the abatement, but with the wind farm filing for bankruptcy, the county could potentially miss out on $1.5 million.
According to Judge Campbell, commissioners now must revisit their budget and look at where money is currently being spent.
“There are things that we’re required to do, and there’s some things that are just nice to do,” Campbell said. “The things that we like to do and want to do [are] support our volunteer fire departments, our ambulance service, our hospital, that sort of thing. But, you know, this is when you have to take a hard look at everything.”
Commissioners are hopeful that budgeting will remain the same without the final payment. Campbell said the county has hired a bankruptcy attorney to try to recover some of the final payment.