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Blowin' in the wind
Windmills proposed for Lackawanna, Hamburg site
Opinions aired on proposed wind farms
Energy source rising on lake shore
Bethlehem windmills now operational
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BQ Energy
The city of Lackawanna and its school system stand to benefit financially from an agreement with the company that eventually will erect 18 more windmills on the former Bethlehem Steel site.
But peace and harmony hardly describe the way the city and school district worked together to get to this point.
The developer, in this case BQ Energy, must either pay taxes to municipalities and school districts or sign agreements to pay a sum in lieu of taxes, or negotiate separate payment schedules.
At issue is an earlier agreement between BQ Energy and the city that leaves the schools out of a 15-year payment plan. That still does not sit well with Paul Hashem, superintendent of schools at the time the deal was negotiated.
He felt, and still feels, the district was deliberately left out of negotiations when Lackawanna Mayor Norman Polanski signed the original Steel Winds deal.
The controversy began with the eight wind turbines occupying the grounds of the abandoned steel mill. Steel Winds I generates up to 20 megawatts of electric power and per the original agreement, signed Dec. 19, 2005, developer BQ Energy pays Lackawanna - the only benefactor of the agreement - $100,000 tax-free every year for 15 years.
A second, tentative agreement signed by BQ this past spring with the city - and this time including the Lackawanna City School District - could pay the city an additional $162,000 a year, once construction begins. The school will get $130,000 annually.
The second agreement will not change any provisions of the first Steel Winds deal, leaving the city as sole benefactor of that contract.
David Bradley chairs the engineering committee for Wind Action Group, an education and advocacy group geared toward maximizing wind energy in Erie County. Of Polanski's ability to negotiate wind deals for the city, Bradley said, "He did well for himself."
Hashem, who retired Feb. 5, said Polanski could have done a better job negotiating for the community had the schools been a party in the talks. Steel Winds I would have benefited the school district, Hashem maintains.
"We could have gotten into an agreement where funds could have helped us get a reading or math teacher," he said. "The problem was the school district had an interest in this, but was not made aware of the negotiations.
"I feel very strongly the city breached an ethical issue, not notifying all municipalities. The school district should have been made aware, to share in the agreement."
Of the original agreement, Hashem said, "The Steel Winds people said they expected the city and the school district to be included, and were disappointed both were not."
Paul Curran, managing director of BQ Energy, negotiated Steel Winds I and Steel Winds II payment agreements. He declined comment when asked to recall his or his company's reaction to the school district being excluded from the first voluntary payment agreement.
"We negotiated an agreement with the city, honored that agreement and are happy with it," he said.
Lackawanna mayor: 'Nobody wanted in'
"The district has to express an interest," said Polanski. "Our first deal with the eight windmills, nobody came and said they wanted in. So the deal I struck was for the city. Once construction started, the school and county were out of luck in demanding revenues."
"The mayor is not being forthright," said Hashem, when told of Polanski's comments. "When they did that first set of negotiations, the school district didn't know they were negotiating with Steel Winds. I believe they did that (to avoid sharing) money with the school district, and that was wrong. This was a really underhanded deal, a deliberate way of excluding one of the partners.
"My understanding when (then-district attorney Carl) Morgan looked at the real property law and researched it ... there wasn't anything we could do," Hashem said. "It was a done deal. We were screwed and that was it."
A call to interim school Superintendent Fred Wille was not returned.
According to Section 487 of the real property tax law, energy systems such as solar or wind are tax-exempt for 15 years. It also states local jurisdictions (such as school districts) may require solar or wind energy systems to enter a payment-in-lieu-of-taxes (PILOT) contract. When the district opted out of the exemption from taxation on Nov. 15, 2006, it legally secured its place in negotiations for Steel Winds II.
Read more: Wind turbine deal spins up controversy - Business First of Buffalo
Part of the Problem OR Part of the Solution?
" All tyranny needs to gain a foothold is for people of good conscience to remain silent." Thomas Jefferson. Found this on another thread.
I asked a group of Seniors recently why they think in this day and age that nobody can find Bin Laden?
The answer was that they are scared to rat him out because his followers would seek the person who talked and hunt him and his family to the end of the world for revenge!
So is this why people who know the dirt on the dirty in Lackawanna are scared to squeal? :confused:
Or is it that they just don't care enough about the poor people?:(
Then there are tons connected to the club through a paycheck. This gang really has tunnel vision by choice or dum dum syndrome and could care less about the struggling innocent taxpayers who foot the bill for their free cars, trips, etc.
But I know in my heart that their are good guy current or ex-City Hall employees who know alot of dirt and it makes their stomach turn, but.....:( Please find the courage to do the right thing to put an end to the bullies.
In 2005 LA got $100,000/yr x 15 yrs for 8 Turbines......
Region Schools Wind power tax deal approvedBy Karen Robinson
NEWS STAFF REPORTER
Published:
October 21, 2010, 12:00 AM
Font Size:
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The Frontier School District this week gave the green light to a payment-in-lieu-of-tax agreement for six new wind turbines that will extend the Steel Winds project along the Lake Erie shoreline.
Approval of the agreement — which was amended by the board in a unanimous vote Tuesday — came after a lengthy closed-door meeting and a private meeting with a First Wind company representative who flew in from the company’s Boston headquarters.
The district stalled its approval of the PILOT agreement earlier this month and then amended it Tuesday night to say it would not take effect immediately, but rather when the district receives fully executed agreements between the Town of Hamburg and Erie County with Erie Wind LLC. Erie Wind is the name of the company’s individual project. It is tax-exempt.
“There were a number of issues the board needed clarification on and the distribution of payments in lieu of taxes and the scholarship,“ board President Michael Comerford said.
Of the six new windmills, four of them will be located within the Frontier School District in Hamburg and two in Lackawanna. Five will be built south along the lake-shore, continuing the existing line of eight windmills. The other will be installed north of the eight windmills.
The 15-year tax agreement calls for a yearly payment of $100,000 to be split among Frontier, the Town of Hamburg and the county — $38,500 annually for Frontier, $20,000 for the county and $41,500 for the Town of Hamburg.
In all, Frontier could receive $577,500 over the life of the PILOT. At the end of 15 years, the company could renegotiate the PILOT, or the property could be fully returned to the tax rolls. Also at stake is a $3,000 scholarship the company offers each year to a graduating senior, but in this case, it is not guaranteed to both school districts — Frontier and Lackawanna. A third-party scholarship administrator hired by First Wind selects the recipient, and it would be just one student, either from Lackawanna or Frontier.
First Wind development manager David Velez said the company hopes to start construction on the additional wind turbines by the end of the year. Velez said the machines will be identical to the ones already in place. Each windmill is designed to produce 2.5 megawatts of power hourly if it is running at full capacity.
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Per above Hamburg got $100,000/yr for 4 Turbines---you can do the math!
ANDDDDD..........
THE COUNTY----SCHOOLS and TOWN share the wealth! Refer back to the Business First article and re-read where it states "Polanski says you didn't come forward to the LA School District-----Hashem says how could we come forward when you had secret negotiations excluding the School and County from getting OUR share of the "Windfall"?":rolleyes:
Citizens Should Be Outraged!
I do not understand the complacency of Lackawanna in general??!!
Are there more people related and intertwined with the system than those of us who abhor the crooks corruption? What Gives? :confused:
I know many-many folks care about and love Lackawanna--so why aren't more people stepping out in anger against the mis-management of THEIR hard-earned money?
I know it is not a easy path and it is a lonely road that most do not even understand, but Conrad Hilton. My own family hates that I spend so much time on politics, going to meetings etc.--many think things will never change.
But I do and so do lots and lots and lots of others---next year is going to be a BIG HISTORICAL YEAR! I FEEL IT!:) This year too, GOD is peeling it back, one ay at a time. He has a plan.
Believe me, I have a full life and wished I did feel called to keep vigilant---especially with winter coming.
So, if everything was run above board--"WE" would NOT be able to call it out now, would we?
Danger, but mayby there is a Silver Lining.....
Back in 2006 the State Comptrollers' office found The City of Lackawanna to be at 97% of the State Constitutional Taxing Limit.
Last night when I questioned our p-t retired City Comptroller about the condition of our City Fund balance he stated, "We are under audit now with Fox Co.---concerns because we are close to our State Taxing limits". I asked real close?--"Yes".
:eek:
When they reach 100% they are not allowed to tax The People over that amount. Hmmmmm......
Is there a Control Board on our horizon.......? What really is going on with the cash flow?:rolleyes: