Fayette County is now 75 percent of the way to completely signing off on a proposed wind farm project for the northwestern portion of the county.
County commissioners unanimously approved Tuesday three contracts with NextEra Energy Resources — a decommissioning contract, an economic development contract and a road use contract — to put the county on the path toward being one of three host counties for the proposed Whitewater Wind Farm.
The contracts are three of four steps Fayette County government must take — a 10-year tax abatement for NextEra Energy Resources being the other —to make the project possible.
Rick Hall, an attorney with the Indianapolis firm Barnes and Thornburg LLP who was hired by the county in September to help in negotiations between the county and NextEra, detailed stipulations of the contract during Tuesday’s meeting for those in the audience.
“These agreements are consistent with what has been put in place in other parts of Indiana,” he said. “As you know, I have represented just about every county that has a wind farm in Indiana and they have agreements similar to these.”
The Whitewater Wind Farm, if it becomes existent, is projected to produce 86 megawatts of wind energy through 43 turbines being placed in Posey and Fairview townships, at an investment between $120 to $141 million, according to Hall. The project, he added, would also create three to five jobs.
Hall then detailed the economic development agreement between the county and NextEra, which would see the county receive cash payments of roughly $2,000,026 over a span of the first seven years of the 10-year tax abatement.
“(The county) could use it to better the county through capital improvements, pay operating expenses for those capital improvements, etc.,” Hall said. “Things that could advance the county and, therefore, economic development.”
Those payments will only occur, however, if the project actually commences construction, Hall added.
The agreement also covers the county, according to Hall, if there should be any change in law which results in the county no longer receiving the property taxes from the wind farm.
“There’s a provision in the agreement that provides that if that ever happens, (NextEra) will make payments to the county that are equivalent their taxes that they owe. So there’s the ability to preserve that major benefit for the county.”
The economic development agreement between the county and NextEra also has a stipulation for a 1,400-foot setback for the wind turbines, which is 400 feet more than what county code currently has in place.
With the road use agreement, Hall stated that NextEra will be able to use the county roads for the project but that they “have to upgrade those roads to a condition that’s capable of handling these huge blades and trucks that will be using the roads.”
The road use agreement also stipulates that NextEra, upon completion of the project, “have to repair the roads to a certain condition that’s set forth in the agreement,” according to Hall. “As a result, at the conclusion of the project, the roads of that area will be at a standard your highway personnel is a very good standard, and you’ll have better roads in that area than you have now.”
The obligation to repair the roads will also be secured by a third-party, according to Hall, in order to protect the county should NextEra run into financial difficulty and not be able to repair to roads.
“Prior to construction, (the county) will go to a third-party surety provider ... you get from them security on this obligation to repair the roads,” Hall said. “If they fail to repair the roads, the county can do it themselves and go to the third-party surety provider and get those costs paid for.”
The road use agreement also lays out fines NextEra could incur, should it violate the road use agreement, Hall commented, and also extends to cover county drains.
Finally, Hall detailed the decommissioning agreement for the wind turbines, should they need to be taken down.
“What this agreement does is it requires them to take down the turbines if they cease producing electricity for a period of time,” Hall said. “This obligation of theirs to take down the turbines is also secured by a third-party surety bond, of a sufficient quality, that can provide the county the comfort that if (NextEra) doesn’t take down the turbines as required ... the county can take down the turbines, then turn those costs into the third-party and the third-party is required to pay those expenses.”
With agreeing to the three contracts, Fayette County joins Rush County and Henry County to coming to terms with NextEra Energy Resources in these areas. Rush County has also approved a tax abatement for the project, while tax abatement votes are still pending in Fayette and Henry counties.
All three commissioners, after Hall’s presentation detailing the contracts, voiced their support for the project.
Outgoing commissioner Barton Barker spoke of a trip last week to White County, where commissioners spoke with residents, county officials and toured a wind farm on their own.
There appeared to be no adverse affects from wind turbines on property values or health or other areas from those commissioners spoke with, Barker commented.
Fellow commissioner Frank Jackson said he came away impressed with the White County wind farms after visiting them, and commissioner Zane Badore added that the proposed wind farm project can be nothing but beneficial for the county.
“This is a great project for Fayette County,” he said. “It will do great things for Fayette County and the city of Connersville ... we need this as a community...this is saying we’re ready to make a change.”
Those in the audience gave commissioners a round of applause after their unanimous vote to approve the contracts.
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