Calpine OKs plan for tax abatement
Published 12:00 am Tuesday, December 31, 2002
Real positive news -- that's the way one Lawrence County official describes an e-mail yesterday from Calpine Corporation officials, verbally accepting the county's proposed tax abatement plan.
Lawrence County Commission President Jason Stephens said late Monday evening that he and other area leaders had received the e-mail from Calpine.
The county had offered Calpine a 100 percent tax abatement for 10 years, but in lieu of taxes, Calpine would pay a yearly donation that would be equal to a 50 percent tax abatement. That would be roughly $14.260 million spread over that 10-year period.
In his e-mail, George Bacon, director of project development wrote "This proposal represents a significant achievement for you and your committee. The county's proposal will allow Calpine flexibility in the timing of its project while providing the county protection against future tax increases."
Calpine would also pay any additional levies imposed in the future by any of the affected taxing bodies, such as school districts and townships, at a rate of $42,150 per mil.
"I think we're moving in the right direction," Stephens said. "I think the whole county should be commended.
Our community once again worked together very well. I think we showed with Duke that we can welcome a top-notch company with open arms and a level playing field and provide incentives that are conducive to business and to the taxpayers of Lawrence County."
As with the tax abatement plan given Duke Energy, the largest slice of the Calpine donation pie would go to the Rock Hill School district -- approximately 69 percent. Lawrence County's general fund would receive 9.38
percent, followed by the Lawrence County Joint Vocational School (8.73
percent), Hamilton Township (4.24
percent) and the Lawrence County Board of MR/DD (7.46
percent) and the Lawrence County Health Department (.085 percent).
Stephens said he spoke briefly with Bacon on the telephone, and no timetable for construction was mentioned during the conversation. In February, Calpine officials announced the project was being delayed because of a downturn in the nation's economy.
The proposed site, dubbed Calpine Lawrence Energy Center, will generate electricity using natural gas to produce steam. Calpine representatives have said previously the plant will generate enough electricity to meet the needs of 800,000 homes throughout the region. It would be a 1,100 megawatt project.
Company representatives have said $510 million of capital investment money will be placed in the plant. The company also estimates the creation of 350 to 400 union construction jobs to build the plant in the first phase of development. The construction phase is projected to take two years to complete.