2010-02-24 / Front Page

County wants more time to consider tax abatement for Sebastian area Windfarm

Robert Pena of Duke Energy Corp. visited Commissioners Court at a special meeting Tuesday afternoon.

He came to court hoping to leave with final approval of five agenda items that concern his company's plan to build a 325 megawatt windfarm east of Sebastian.

Pena got the okay on four of the five but the most important item, the abatement of taxes for DEGS Wind 1, LLC was held off pending further discussions between interim county judge Aurelio "Keter" Guerra and the company.

DEGS stands for Duke Energy Generation Services, Pena said. Guerra said the proposed agreement was presented to him at the last minute and he isn't sure the commissioners completely understand the issue.

"Ths will mean more jobs and that is a plus but we need to look carefully into the benefits and also the negative aspects, if there are any," said Guerra.

Pena said Duke Energy is a Fortune 500 company and that he has worked there since the late 90's. The company operates and owns wind farms in Kentucky, Louisiana and Indiana as well as two in Texas at Sweetwater and Odessa.

His company has 20,000 acres under lease east of Sebastian between FM 507 and FM1O18, he said. FAA clearance has been granted as well as a two year study of migratory bird flights. Because most of the land leased is plowed farm land there will be no major impact on the bird population by the 160 to 175 wind turbines DEGS plans to build, he said.

Pena said his company is asking for tax abatement for the $400 million investment they are making in the county for 10 years.

He referred to Judge Guerra as a "good steward and a tough negotiator and said that he is agreeable to 70 percent tax abatement for 10 years. The project will provide 140 to 170 construction jobs for 12-18 months and seven to 10 permanent jobs later.

Commissioners agreed to accept the abatement application from DEGS on a motion by Judge Guerra.

Commissioners agreed to designate the area the company has selected for their project as "Las Palmas Reinvestment zone" on a motion by Pct. 2 Commissioner Eddie Chapa.

Permission to use certain county roads for acess to the company's leased property was approved on a motion by Judge Guerra, after Pena explained that his company is planning to improve the roads they use from dirt to calichi, and to widen them to county standards.

Finally, Commissioners agreed to waive development permit fees on a motion by Commissioner Chapa.

But,on the key item to grant tax abatements of 70 percent for 10 years, Commissioners hedged. Chapa's motion to grant preliminary approval for Judge Guerra to continue negotiating with the company was the best that DEGS could do on a cold, rainy it rainy day in Willacy county.

IN OTHER BUSINESS

Commissioners agreed to pay the $5,036 cost of professional liability insurance for County & District Attorney Bernard Ammerman and his staff. The first year's payment will come from the D.A.'s drug fund and will be a line item in the future.

Amermann's office also got the okay to apply for two grants, one to fund a prosecutor's salary and the other to fund the office of a crime victim coordinator.

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