Wind project developer to give, receive
BY MARY PERHAM THE LEADER

PRATTSBURGH - A developer will receive tax breaks while paying the Town of Prattsburgh millions over the next two decades to erect towering wind turbines that will generate electricity.

Work on the second wind farm project in Steuben County could begin in January by a developer called UPC. Th e company plans to build 36 wind turbines in Prattsburgh and is also in the process of erecting wind turbines in the Town of Cohocton.

UPC has agreed to pay the Town of Prattsburgh more than $4 million over 20 years. In exchange, the company will receive tax breaks.

The town will receive its first payment in 2009 of $405,000, said town Supervisor Harold McConnell.

The agreement includes annual supplemental payments of $25,000 totaling $500,000 by 2028, with another $85,000 set aside for town projects, such as the library and school.

The new revenues are likely to have a significant impact on property taxes, but the actual decrease won't be determined until next year, McConnell said.

The town budget this year is $1.6 million, he said. "So it'll have an effect but we won't know what it is, just yet," McConnell said.

The sales tax exemption the company receives is the first of two financial breaks the county is expected to give the project. A PILOT, or payment in lieu of taxes agreement, could be settled some time next year.

PILOTs typically provide annual payments instead of property taxes during a 10- or 20-year period, with the payments gradually increasing each year.