County says it may yank tax break for solar site if 80% Ohio labor not being used

Wood County commissioners during meeting earlier this month.

By JAN LARSON McLAUGHLIN

BG Independent News

 

The Wood County Commissioners don’t want to be kept in the dark about possible tax abatement violations at the massive solar project north of Bowling Green. And they are prepared to yank the tax break if they don’t get verification that the contractor is using at least 80 percent Ohio labor.

Last week, the commissioners sent a letter to the Ohio Development Services Agency stating that on July 19, the county approved a “significant tax abatement” for the solar project based on the criteria and regulations developed by the agency. Of great concern to the commissioners was the requirement that 80 percent of the construction labor for the project be Ohio residents.

“Over the past few weeks we have received information stating that the prime contractor, Blattner Energy, may be skirting the 80 percent requirement by leasing local rental housing for out-of-state employees and suggesting that they obtain an Ohio driver’s license,” the letter continued. “Meanwhile, many vehicles parked at the project site have out-of-state license plates.”

The commissioners said it is the state agency’s responsibility to ensure that the project owner and contractor are in compliance, and to provide written verification to the county and Bowling Green officials.

Since construction of the project is to be complete by the end of this year, verification should not be delayed, stated the letter, which was signed by all three commissioners.

Labor at the site was the only item in the abatement agreement that included somewhat local participation. To the commissioners’ displeasure, there was no commitment requiring use of local solar equipment or local contractors with solar experience.

“If information regarding strict compliance with the 80 percent Ohio domiciled labor is not provided and verified by you, we will give serious consideration to rescinding our resolution granting the abatement,” the commissioners stated in the letter.

Bowling Green Municipal Administrator Lori Tretter said this morning that city officials are aware of the county’s letter and the questions raised. “We will be addressing it tonight at city council,” she said.

City council members raised similar questions about the solar project labor earlier this month. Council President Mike Aspacher said he received an email from an AMP official in early September saying that prevailing wages would be paid to workers on the project. However, since then it has been reported that is not the case.

“There’s some conflicting information,” Aspacher said at the last city council meeting.

Council member Bruce Jeffers also expressed his frustration. “I assumed throughout this project that people would be paid prevailing wage.”

The issue is complicated by the fact that Bowling Green owns the property for the solar field at the corner of Carter and Newton roads, northeast of the city. But the solar field is an AMP project, which has contracted with NextEra, which has contracted with Blattner Energy.

Bowling Green Utilities Director Brian O’Connell said the city is hosting the solar field and buying energy from it, but not directly connected to the construction.

“We’re somewhat removed from the construction,” he said. Neither the agreement with AMP nor the tax abatement granted to NextEra require that prevailing wages be paid or that union labor be used.

If the project were the city’s, that would be different, O’Connell said. “We do have a prevailing wage requirement.” But in this case, the city has no control over the wages paid on the project.

But Aspacher was not satisfied. “The fact of the matter is it’s being built on Bowling Green property. So I think it’s a Bowling Green project.”

The giant solar project, costing $43 million, has been welcomed as good for the environment and good for the area’s reputation since it will be the largest solar field in Ohio. The project is located on 165 acres owned by the City of Bowling Green at the southeast corner of Carter and Newton roads. The solar array will consist of 85,680 panels that will track the sun from east to west everyday for maximum power generation.

The tax abatement request for the solar field was unlike those that normally come before the county commissioners in its size – giving a tax break of $7.3 million over just the first 15 years – and its duration of 30 years, compared to the customary 10 to 15 years.