PENDLETON — A deal creating a solar park in Pendleton has been reached between the town and the Indiana Municipal Power Agency.
Town Manager Tim McClintick confirmed an agreement had been reached between the two sides and said construction of the park is set to begin sometime in early June.
"Right now they're in the paperwork phase," McClintick said. "But they're hoping to start building the first week in June."
Chet Babb, a Town Council member, was selected by the Pendleton Redevelopment Commission to negotiate with IMPA on the final contract. Babb said IMPA paid about $7,200 per acre and bought 16.1 acres of land near Exit 219. The land is just south of the intersection of State Street and West Fall Creek Drive near the American Legion.
The contract is for 45 years. Babb said IMPA will not have to pay taxes on the land but will pay taxes to the town on the equipment it uses. Generally, towns will offer a company a tax abatement instead of not collecting property taxes, but Babb said Pendleton couldn't offer the abatement because the land was given to the town as a gift.
One of the biggest hang-ups Babb had going into the negotiations was who would control the land should IMPA pull out before 45 years. He said he was able to get that straightened out prior to agreeing to the contract.
"You just never know what's going to happen with energy five or 10 years down the road," Babb said. "I wanted to make sure, if they left, the land would go back to the town."
The power generated by the park will not go directly to Pendleton homes but will feed into the general IMPA system, of which Pendleton is a member. More inexpensive energy in the entire system will keep rates down for all customers, including Pendleton residents.
IMPA's manager of energy efficiency, Dan Worl, said purchasing coal-powered energy is becoming more expensive. On especially hot summer days when everyone is using their air conditioning units, IMPA sometimes has to buy extra energy on the open market, which raises everyone's rates. Worl said adding additional forms of energy will limit the number of times IMPA has to buy more.
This will be the second solar park built by IMPA in Madison County after constructing one in Frankton in 2014. Worl said IMPA is hoping to build one in every member municipality as the agency continues to expand on renewable energy.