MOUNT VERNON — The Knox County commissioners said they will accept a PILOT proposal from Open Road Renewables if the Ohio Power Siting Board ultimately approves the Frasier Solar project in Miller Township.
Under a PILOT (payment in lieu of taxes), Open Road Renewables will not pay personal property or real estate taxes. Instead, the company will pay $9,000 per megawatt (MW) annually to the county and local taxing districts where the solar farm is located.
Open Road filed the PILOT on June 14. On July 12, the commissioners asked for a 30-day extension to accept or deny the PILOT.
The commissioners made their decision on Aug. 8 after hearing from the Mount Vernon City School District and the Knox County Career Center.
In a letter dated Aug. 1, MVCS Superintendent Bill Seder wrote that the board of education discussed the Frasier Solar project and the PILOT application at its July meeting.
“After careful consideration of the facts as we know them today, we would be in favor of approving the PILOT application,” he wrote.
Seder said two significant factors directed the decision:
•MVCS would see a net positive revenue of $5.324 million over the 40-year term of the PILOT vs the traditional statutory assessment if the commissioners denied the PILOT.
•MVCS would not be negatively impacted in terms of state funding if the commissioners approved the PILOT.
Seder referenced a study by Fleeter & Associates that shows state funding for MVCS would decrease by $8.138 million over 40 years if the PILOT was denied. Under the state funding formula, if property values increase, the state reduces funding, which places a greater burden on local taxpayers.
The career center board deferred to Mount Vernon City Schools’ decision.
“Our board is neutral and will support what Mount Vernon City Schools District feels is best for their district since the impact is greater for them,” KCC Superintendent Kathy Greenich wrote in an email. “The 40-year length of the agreement is of concern.”
Greenich added that “we appreciate [Open Road/Frasier Solar’s] efforts to keep the KCCC School District whole in regard to funding based on their 40-year projections.”
“The schools weighed heavily on the decision to go with the PILOT if this project goes through,” said Commissioner Teresa Bemiller.
Bemiller said the Knox County commissioners also talked with the Licking County commissioners. Licking County accepted two PILOTs: the 350 megawatts (MW) Harvey Solar Farm in Hartford and Bennington townships and Union Ridge Solar, a 107.7 MW project in Harrison Township.
“I think what people don’t realize is that most of the revenue from property taxes comes from equipment, not the land, and that equipment depreciates,” Bemiller said. “So even though there’s an increase in [real estate] property taxes, it’s not a significant amount.”
“With the current school funding from the state of Ohio, the PILOT provides the best financial impact for the Mount Vernon City School District. Though this impact will be helpful, it will not replace the need for local support,” Commissioner Bill Pursel said. “Our vote yesterday supports the PILOT and is not a blanket approval of the project. We will have the opportunity to address support or non-support in the future.”