The Marysville Board of Education is being forced to look into the sun.
While solar farms in Union County have generated a great deal of discussion in the North Union School District, Marysville decision makers have been largely quiet on the issue.
Two large solar farms are planned for the northern district, but one, the Cadence Solar Farm, will also stretch into Marysville’s district and a second could be on the way. The planned operation would pump at least $500,000 annually into the Marysville district coffers.
“I would like for people to be very thoughtful about this process,” board member Dick Smith said.
The issue of solar farms locating in Union County has been a contentious one. Landowners around the proposed projects have been vocal in their opposition, citing drainage issues, unsightly appearance and elimination of viable farmland as reasons. On the other side, the operations would generate millions of dollars for schools and Union County.
This issue will likely come to a head at a meeting Tuesday when the Union County Commissioners have asked stakeholders and the public to be on hand to comment on legislation that would largely prohibit new solar projects.
At a Thursday night meeting of the Marysville board, Treasurer Todd Johnson led a discussion about the role the district plays in the process of the Cadence Solar Farm approval. The short answer is, it doesn’t.
Johnson explained that while the district would benefit financially, the county commissioners could ultimately decide the fate of the projects.
The future of the solar farms may hinge on how they are taxed.
In October, officials with Invenergy, the company hoping to develop the Cadence Solar Project, met with the Union County Commissioners. Invenergy officials asked the commissioners to allow the solar company to make a set, annual payment in lieu of taxes (PILOT). Generally, a PILOT exempts the property from paying local tax in exchange for an annual payment based on megawatts generated, to be divided among local taxing entities.
All of the solar farms interested in locating in the area have expressed interest in entering a PILOT agreement.
Members of the board asked Johnson about the financial impact to the district in a PILOT versus non-PILOT situation.
Johnson said the district appears to be in line for annual payments of $500,000-$700,000 over the next three decades if the PILOT is accepted. At other meetings, North Union officials have been told they stand to make $750,000 per year from the Cadence farm.
If the county commissioners do not approve the PILOT, the Marysville School District would receive an annual revenue of $848,000. North Union Local School District would receive an annual revenue of $981,000 without the PILOT.
Johnson explained that the non-PILOT number could also grow, if district voters were to approve levies down the road.
Board members then asked if the solar farm would locate in the area if the commissioners deny the PILOT request.
“The solar company wants the PILOT,” Johnson said. “I guess I would put it like that.”
Johnson said district attorneys have said similar projects have abandoned plans in other areas when tax incentives are not extended. Comments from Invenergy officials at a recent meeting with the Union County Commissioners seemed to echo that idea.
Ryan Van Portfliet, manager of renewable development for Invenergy, said that without the PILOT, the company would reconsider locating in the community.
“It allows for the project to be more economically viable for us, meaning the expense, in a non-PILOT scenario, would make this project more difficult to go forward in term of the bottom line for our project,” Van Portfliet said.
Johnson also noted that a second farm in the Marysville District has just started organizing. He said that project would be smaller than Cadence, but could still generate a six-figure annual payment to the district.
Johnson reiterated that the final decision on the issue will fall to the commissioners and, so far, the district has not weighed in. The commissioners have, however, asked North Union officials for their opinion.
Union County Commissioner Steve Robinson met with the North Union Board of Education to discuss potential tax revenue from the Cadence Solar Project on Jan. 8. The Cadence Solar Project is expected to be a 275-megawatt, solar-powered electric generation facility on approximately 4,900 acres in York, Liberty and Taylor townships. Its payments would go solely to NU.
The North Union board members were opposed to voicing an opinion about the PILOT program because, ultimately, they have no control over the commissioners’ decision and felt they did not have enough information at the time to make an educated decision.
Marysville Board President Sue Devine seemed to echo that idea, noting it wasn’t the board’s job to weigh in, but saying she would be thrilled with the revenue. She said the commissioners are charged with doing what is best for the county as a whole.
Smith said the area has allowed a great deal of residential growth in recent years, which will create additional enrollment in the schools. He said the community has prepared itself for industrial growth and solar farms should be considered as such, because they add revenue to the district without creating additional student.
The county’s special session to discuss solar farm legislation is set for 7 p.m. Tuesday, in the commissioners’ hearing room in the County Office Building, 233 W. Sixth St. Officials have said that the meeting could be moved to the building’s auditorium based on attendance.