County Hears About Solar Farm Economic Impact
Even With Tax Abatements, Company Projects It Would Pump Millions into County Coffers Over 25-Year Period
Fayette County Commissioners Court received an application from Candela Renewables for a property tax abatement at a meeting held Thursday, May 28.
Commissioners voted back in February to offer property tax abatements after the company expressed interest in building a $190 million solar array near Muldoon called the 7V Solar Ranch. The company is asking for a 75 percent tax abatement for 10 years. According to the application filed by Candela last Thursday, the project would involve some 3,800 acres of land, although not all of that land would be occupied by solar arrays.
Evan Horn, a tax specialist working on behalf of the Candela, told Commissioners last Thursday that most of the 3,800 acres is currently appraised at ag production values for property tax purposes. He said about 2,200 of those acres would actually be used for the solar farm. That land would be taken out of ag production and appraised at market value market value.
The figures Horn presented at Thursday’s meeting show that the property, valued at around $25 million, would generate about $116,000 in property taxes for the County in 2022 if it stays in ag production. If the project moves forward, assuming a $190 million investment, the property would generate $886,846 without the abatement. However, Horn stated at a meeting back in February that the project was not economically viable without a property tax abatement.
If Commissioners approve the 75 percent abatement, the property would bring $221,711 in taxes for the county in its first year, 2022. That’s a lot more than it currently generates. However, the company’s $190 million investment would depreciate over the 10-year abatement period. In year 10, the application states that the abatement would generate just $35,468 for the County.
Over the 10-year abatement period, Candela estimates that the property would bring $1,085,712 in taxes for the County. That’s just a few thousand less than the property would generate under ag production at current market values. Over the estimated 25- year lifetime of the solar arrays, the property would generate more than $3.3 million for the County.
Candela would also be subject to a three-year tax rollback payment for moving the property from ag production to market value. The company estimated that payment at $141,311.62.
Citizens will get a chance to comment on the proposed abatement at a public hearing that commissioners scheduled for July 9. The application is available for the public to view on the County’s website, co.fayette. tx.us. Scroll past the coronavirus information to find the link.
In other business Commissioners voted unanimously to hold a celebration on the Courthouse Square June 12 for Flag Day. County Judge Joe Weber and the four commissioners will set up flags and grill hot dogs on the square. The event will be free and open to the public.
Also at Thursday’s meeting, Commissioners took the following actions:
• Signed a resolution concerning the Help America Vote Act (HA VA) and the 2020 The Coronavirus Aid, Relief, and Economic Security (CARES) Act Grant and authorizing the Fayette County Judge to execute all documents necessary to apply for the grant.
• Entered into an Interlocal Agreement between Fayette County and Washington County for Road Improvement Services for the portion of Raymond-Lehmann Road located north of Ledbetter.
• Signed an agreement with the Texas Department of Transportation for the replacement or rehabilitation of two bridges off the state system: Warda Blacktop Rd over Pin Oak Branch and Teinert Rd over Pin Oak Branch, both located in Pct. 1.
• Accepted and approved the written plan of Fayette Water Supply Corporation (FWSC) to bore under East Parker Road in Precinct 3, and to place and install a new water service line and meter for a customer,
• Accepted and approved the written plan of Fayette Water Supply Corporation (FWSC) to bore under Three Mile Road in Precinct 3, and to place and install a new water service line and meter for a customer,
• Acknowledged the new service drop plans of Colorado Valley Telephone Cooperative, Inc (CVTC) to install new buried fiber optic cables and copper cables within the corridors of the following road(s): Robinson St in Precinct 2.
• Signed a Resolution Authorizing the Disposition of Salvage and Surplus Property, concerning a 2006 CPS belly dump trailer with said property to be used as trade-in value.
• Approved the purchase for Precinct 1 a new 2021 Armor Lite Belly Dump, presently located at Alamo City Trailer Sales, LLC, in Luling, for $32,500 with trade-in value of $6,000 being a total value of $26,640 payable to Alamo City Trailer Sales, LLC, using Precinct 1 Road and Bridge funds that are available and in the 2020 Precinct 1 budget, and authorizing County personnel to sign all necessary and required paperwork.
• Approved the Pitney Bowes Postage Meter Leasing Agreement Renewal for the Fayette County Elections Office.
• Approved the Fayette County Employee Health Insurance Renewal with the Texas Association of County Health and Employee Benefits Pool (TAC HEBP) effective 10/01/20, and
• Canceled the Catapult Health Checkups scheduled for Fayette County Employees on July 21 - 23.