MOUNT VERNON – The solar controversy in Knox County continues.

The Ohio State University (OSU) recently released a detailed report confirming Open Road Renewables’ analysis that a Payment In Lieu of Taxes (PILOT) program for their Frasier Solar project in Knox County will produce greater and more stable revenue for the county than a property tax rate structure.

In its analysis, OSU also refuted recent analysis from the Buckeye Institute that traditional property taxes would be better for the county. 

“We’re pleased that Ohio State University, the state’s leading and most trusted research institution, has confirmed what we know – Frasier Solar under the approved PILOT is a major victory for Knox County and will benefit local schools and services for years to come,” said Craig Adair, vice president, development at Open Road Renewables.

“We look forward to continuing to work with the community and the Ohio Power Siting Board as our project moves forward and starts generating stable revenue for the county and supplying reliable, low-cost energy to the electric grid.”

As confirmed in OSU’s analysis, under the traditional property tax structure, payments would start high but decline over time as the value of the facility declines.

Under the PILOT, however, annual payments are fixed and stable over time.

OSU’s report and analysis also directly refutes claims by the Buckeye Institute that the property tax valuation is best for Knox County. 

The Buckeye Institute’s initial analysis omitted significant reductions in state need-based education funding for local schools that would occur without a PILOT. 

It also argues that cash flow to the county is more valuable at present than it will be in the future because of inflation and because of the preference for accessing money today versus the same amount in the future.

Therefore, Buckeye contends, a property tax structure would be better.

OSU analyzed the data, did its own calculations, and disagreed with the Buckeye Institute’s conclusion based on the data and misguided assumptions underlying the Buckeye Institute’s analysis. 

The Buckeye analysis also ignores a key risk associated with traditional property taxes, which is a sudden drop in expected tax revenue in the event of a devaluation of a major infrastructure facility like a power plant.

This unfortunate scenario happened recently at the Davis-Besse Nuclear Power Plant in Ottawa County, with the result that the local school district, township, and county will lose millions in anticipated revenue in 2024.

Under the approved Frasier PILOT, local taxing jurisdictions don’t have to worry about such a scenario occurring in Knox County.  

Last August, Knox County commissioners approved a PILOT for the Frasier Solar project.

The PILOT, which has since been certified by the State of Ohio, will pay county taxing authorities $1,080,000 every year for up to 40 years, which is 47 times what the land currently generates in taxes.

This translates to $42.8 million of stable, guaranteed revenue over 40 years, nearly half of which would go to the Mount Vernon City School District.

For more information on Frasier Solar’s PILOT, visit www.frasiersolar.com/pilot.