County Denies Battery Facility Tax Abatement

Fayette County Commissioners Court voted 4-0 to to deny a reinvestment zone for a proposed Staccato Storage battery facility in Warda. The vote essentially kills the possibility of a tax abatement for the project.

During the public hearing, Evan Horn, a consultant for Staccato Storage, attempted to dispel some misinformation about the Stacatto Storage project.

“We have come out an unequivocally said we have absolutely no relationship with the proposed wind farm,” Horn said. “It is technically and physically impossible for these projects to be related. They interconnect at different points on the transmission line system. They’re separated in distance by nearly 20 miles.

“We’re not a wind farm,” he added. “We are also not a bitcoin mining operation. There have been some discussions about different operations on this similar plot of land. If this facility was built, it is not connected to that (bitcoin) facility. It does not support it. It is not related to it. There is no agreement between these things. We are not bitcoin operators. We are not wind farm developers. What we are proposing is a stand alone battery energy storage system. These are batteries. They are objects that store energy for future use.”

“It comes in on the transmission lines,” he added. “... It just takes energy off the grid when the demand isn’t there. It can instantaneously deliver energy back on to the grid where there is demand. What’s unique about this is these types of facilities fill a gap that cannot be served by any other form of existing technology.”

Several citizens spoke against the tax abatement during a public hearing that took place ahead of the vote.

“I would like to speak to the big picture,” said Jeff Parker. “We’re talking about helping to fund them to build this. Make no mistake. This is a green energy project, and it is not financially viable without subsidies.”

Cecila Dawson said she believes the proposed battery storage facility would infringe on the first amendment rights of worshipers at Holy Cross Lutheran Church in Warda. The church is located less than a half mile from the site where the facility would be built.

Misty Blanchard asked the Staccato representatives several questions related to fire safety and plans in case of a disaster.

“We will provide training to the volunteer fire departments – the fire departments in Warda and whichever other fire departments are in the vicinity,” said Saul Stroud, a project manager with Samsung, the company developing Staccato Storage.

Horn said the safety concerns raised about the project could be addressed by including conditions in the tax abatement agreement. Horn said the developers are willing to consider guidelines regarding fire suppression and support for local first responders.

William Bernsen, who spoke earlier in the meeting, said the tax abatement would be a way for the Commissioners Court to gain some “leverage” in addressing public concerns for safety and cleanup costs. Ken Dernehl said he believes the project will not provide significant employment or economic activity. Horn said the facility would generate substantial revenue for La Grange I.S.D – “If this facility is built, at a minimum, it would afford La Grange I.S.D. the flexibility to build more buildings or even lower the tax rate that everyone else pays to the school district.”

Craig Moreau spoke against granting tax abatements in general.

Mueller asked Horn if the developers would build the facility without a tax abatement.

“These facilities are highly competitive,” Horn said. “Saul is developing dozens of them across the state ... If one county provides an incentive and one doesn’t, that makes a facility more competitive. It is not the only answer. But it is one piece of the equation. I can’t say unequivocally yes or no, but it is a highly competitive environment.”

Pct. 1 Commissioner Jason McBroom and his family owns the property where the facility would be built. They leased the land to Staccato Storage. McBroom has recused himself from all discussions and votes on the project during Commissioners Court meetings ever since Staccato Storage applied for the abatement last October. Thursday’s meeting was no different. He left the courtroom during the public hearing and vote.

The item up for vote Thursday was whether to establish a reinvestment zone for the property, which is the first step in granting a tax abatement. Brossmann moved to deny the reinvestment zone. Mueller seconded the motion. It passed 4-0 with McBroom abstaining from the vote.