The Wells County Council voted 5-2 Tuesday night in favor of creating an economic revitalization area to grant a 10-year tax abatement for Paddlefish Solar LLC.
The resolution for the agreement outlines a boundary for possible development in Liberty and Chester townships. Senior Project Developer Jesse Laniak of EDF Renewables, which owns Paddlefish, said 12 landowners have signed agreements in this area, totaling 3,000 acres.
Council members in favor of the resolution were Steve Huggins, Todd Mahensmith, Scott Elzey, Chuck King and Seth Whicker. Vicki Andrews and Jim Oswalt, both residents of southern Wells County, were opposed.
The county commissioners also met in a special session preceding the county council to vote on the economic development agreement. The resolution passed 2-0; Commissioner President Mike Vanover was not present.
A full audience was present for the council’s public hearing, which lasted more than an hour and included comments from seven Wells County residents and one out-of-county resident. Laniak, Wells County Economic Development Director Chad Kline, and Barnes and Thornburg lawyer Richard Hall, who assisted the county in the negotiation, were available to answer questions.
Laniak said the agreement is one of several necessary elements for the company to apply for a permit for solar development. Then, should everything move forward, the 10-year abatement period would begin when the solar farm began operating commercially.
Over these 10 years, Paddlefish Solar would be 100 percent property tax exempt. Paddlefish Solar would later provide economic development payments of at least $8.5 million. They have also pledged to invest a minimum of $250 million into development of the project and create 1 to 4 full-time positions.
At a maximum, Paddlefish Solar would develop $300 million and make economic development payments exceeding $11 million.
Paddlefish Solar is a subsidiary of EDF Renewables, which has partnered with Geenex Solar on this particular project.
“The county has an opportunity to advocate for the financial paradigm that they want,” Laniak said.
Of the public comments, several people questioned the purpose or need for the tax abatement.
Laniak responded that the abatement time allows the group to get on their feet financially following the significant up-front costs. Kline then clarified that the payment comes in at 85 percent of the expected property tax Wells County would receive in that period. The abatement offers an incentive toward development that would later bring in more tax funds.
At the end of the 10 years, the property will be reassessed as a solar development, which carries a higher property tax rate than agricultural development. Ultimately, this increase will lower taxes for county residents.
The solar farm is expected to last between 30 to 39 years, with an estimated $110 million in tax revenue.
Trent Lehman, recently-hired superintendent for the Southern Wells Community Schools district, stated he was hopeful for the potential development, but expected SWCS to be included in the discussion of how to use economic development funds.
“We want to ask is that we would be at the table with the money you are receiving, since it’s in our district, to get, ideally, a proportionate share that we would have got if this (abatement) wasn’t a thing,” Lehman said.
Several other residents expressed concern about what the development would do to the value of adjacent properties. Leslie Gaskill said she had seen landfills that were more visually appealing than solar farms.
Council member Seth Whicker responded by stating that solar farms can come in varying forms, but that there were many aspects, like the layout of the area, that would be a part of ongoing and future negotiations and public meetings.
Laniak added that the agreement outlines provisions that all solar development be at least 400 feet from non-participating people.
“I guess what I’m trying to establish is it’s easy to sit here and make decisions, but when you’re firsthand affected by it, you’re going to view it differently,” Gaskill said.
John Maddox expressed a similar sentiment, adding that he thought the incentive was unnecessary.
Becky Bechtel, an Indianapolis representative from the Land and Liberty Coalition, stated businesses and individuals should be allowed to use their private property how they wished.
During the special session, Commissioner Jeff Stringer said this was also an important factor to him. He also asked Laniak how many developments they had and how many they still managed.
“For me, it’s not about pro-solar or anti-solar, it’s about pro-individual rights,” Stringer said. “I don’t believe that we have the right to tell you what you can and can’t do on your ground. We just need to make sure that taxpayers are equally taken care of by their governments.”
Laniak said EDF Renewables has roughly 50 developments and estimated that 15 to 20 percent had been sold to other groups. Additionally, the energy produced would only be available on the local power grid.
From here, the project will still need to go through stages of planning and development and receive the proper permits and further approval from various Wells County governing bodies.
“This does not provide a project for Wells County — this just says that if there’s a project, these are the terms in which the county and the company have negotiated for the EDA if that project comes to fruition,” Kline said.
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