By JAN LARSON McLAUGHLIN
BG Independent News
The prospect of Bowling Green having the largest solar field in Ohio appeals to county officials – but they don’t like to be kept in the dark about tax abatement details.
So on Tuesday, company officials involved in building and operating the solar field northeast of the city were asked to explain their request for a 30-year tax break for the $43 million project. Wood County Commissioner Doris Herringshaw noted the confusion on the part of NextEra Energy officials about needing to outline their request. But she explained that the commissioners have a policy of meeting in person with any company that wants tax breaks.
“We certainly feel it’s something we need to know as much as we can about,” Herringshaw explained to representatives of NextEra Energy and AMP Ohio.
The tax abatement request for the solar field is unlike those that normally come before the commissioners.
First, the amount is massive, giving a tax break of $10 million over just the first 15 years.
Second, the duration is proposed at 30 years, compared to the customary 10 to 15 years.
Third, there is no ongoing employment, which is the basis for most tax breaks. Construction of the solar field will employ about 85 people from July 18 to Dec. 31. And 80 percent of those people are required to be Ohio residents – but there is no requirement that they come from Wood County.
Fourth, regular tax abatements require that school districts be “made whole” by the business getting the tax break, but this agreement does not. The company will pay some money to local taxing authorities “in lieu of” the tax breaks, but not the entire amount.
Wood County Commissioners listen to plans for solar field.
One other concern is that the solar array will be built using panels from Hanwha – not Wood County’s First Solar company. Jared Haines, of NextEra Energy, said his company has an ongoing relationship with Hanwha, which produces solar panels that have a “less toxic influence” when they are removed at the end of their usefulness. But Wood County Commissioner Craig LaHote said he believes First Solar handles the disposal of its products.
LaHote asked the NextEra Energy representatives what would happen if the commissioners don’t approve the tax abatement. Janet Ward replied that the cost of the project would go up for Bowling Green. Haines said a rejection could potentially cause the project to derail.
“It’s an exciting project,” LaHote said. But he also said the requested tax break would be huge. “It’s a pretty significant ask.”
Commissioners Joel Kuhlman, Herringshaw and LaHote all said they felt no pressure to approve the tax abatement in order to ensure the project proceeds. The commissioners have until the end of July to take action on the request.
“This is unlike any other abatement request that has come to them,” said Wood County Administrator Andrew Kalmar. The request came from the Ohio Department of Development Services, rather than from the company. The county was given a very short time to make a decision, and company officials were very “tight-lipped” about their plans.
Officials from NextEra Energy and AMP Ohio tried to clear up questions on Tuesday. According to company officials, the solar project offers several benefits to the city and county, including:
- City receives clean, renewable energy at a cost savings for customers in Bowling Green, Tontogany, Portage and parts of the county.
- Fixed-price power purchase agreement protects against commodity price volatility.
- Diversifies power supply.
- Decreases peak electricity demand from power grid.
- Provides system redundancy and back-up power.
- Helps the city and county achieve sustainability goals.
- Project will be the largest solar project in Ohio, bringing positive publicity to the city and county.
- Project brings additional annual revenue of $140,000 to $180,000 to county and other taxing authorities.
The solar field is planned on 320 acres owned by the city of Bowling Green at the southeast corner of Carter and Newton roads. The city will retain ownership of the land and lease 165 acres for the solar development. The remaining acreage will continue to be leased for farming.
The solar array will consist of 85,680 panels that will track the sun from east to west everyday for maximum power generation. The solar project will lease the site for 30 years, at which point the panels will be removed and the land will be returned to the city.
Ward said work is set to begin at the solar site on July 18. “We’re really ready to go,” she said.
NextEra Energy’s Distributed Generation has proposed paying $350,000 up front to cover the cost of road repairs. The company is working on training with Bowling Green Fire Division and Center Township Fire Department.
NextEra has offered Bowling Green State University a $10,000 a year endowed scholarship, and site visits for BGSU faculty, students and alumni.
The site could become a tourist attraction, like the wind turbines west of the city at the county landfill. Daryl Stockburger, with the city, said it may be possible to put an information kiosk at the site, similar to the one near the turbines.
