Duke Energy Renewables Solar LLC received approval Tuesday of a revised tax abatement — covering seven years instead of 10 years — from the Vigo County Council for a proposed $180 million solar farm to be build in southern Vigo County and northern Sullivan County.
Council President Aaron Loudermilk said there was some confusion as an ordinance presented to the council stated real and personal property taxes, however, that is statutory language to establish an economic revitalization area for abatements, he said. The abatement petition was only seeking a personal property tax abatement on $100 million in equipment, as about 60 percent of the project is in Vigo County, said Nathan J. Hagerman, attorney for Duke Energy.
Tyler Coon, business development manager for Duke Energy Renewables Solar, presented a revised tax abatement option Tuesday for seven years. The difference between a seven year abatement and 10 years is the company will pay $122,474 more in taxes. Over seven years, the company will pay $5,091,804 in taxes, but have $7,876,184 of taxes abated.
Additionally, the company revised its employment to three permanent jobs at a total of $200,000 annually, or more than $66,000 a year per job.
Councilman Travis Norris questioned if the company would seek an abatement from Sullivan County and if an abatement in Sullivan County was denied, would it stop the project.
Coon said Duke Energy would then seek to obtain more land in Vigo County. Coon said the tax abatement is important to keep the project competitive.
The 175 megawatt, ground-mounted solar generation facility, would provide enough electricity to power 35,000 homes. The solar farm is slated for a 1,500-acre site that includes 896 acres in Vigo County (in Pierson Township and Linton Township) and 604 acres in Sullivan County. It is located on reclaimed coal strip mine currently being used for crops.
The site is connected to a 138-kilovolt Duke Energy Indiana transmission line through a utility-owned interconnection switching station near Farmersburg. Duke Renewables will lease the site from Farmer Jack Land Company LLC and Hoosier Jack Land Co. LLC, both owned by Terre Haute businessman Greg Gibson, for the solar project.
The project is slated to start by June 2023 and be completed by December 2024, according to the tax abatement.
In other business, the council approved $170,000 for a restroom on Ivy Tech Community College campus to serve as the trailhead for the new W. Keith Ruble Park, slated to open in September next to the college campus.
Ivy Tech Chancellor Lea Anne Crooks said a memorandum of understanding is being formed for approval by the county. The understanding would include the restroom would be maintained by the college and it would be for use of the public for the park.
The council debated how to fund the project, with Councilwoman Marie Theisz saying the project is economic development and should be funded from the county’s Economic Development Income Tax. Council President Aaron Loudermilk also voiced support to use EDIT funds.
Theisz made a motion to pay for the project through EDIT funds, however, the motion died for a lack of a second.
County Auditor Jim Bramble recommended the council use general funds saying the county will have about $20 million remaining in the fund by the end of the year. Bramble said any fund deficits could be made up from about $20 million the county will receive through the American Rescue Plan Act. The council voted 5-2 to approve general funds to pay for the restroom project.
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