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The Bright Arrow solar project is located in the northwestern part of Hopkins County and is wholly within SSISD, according to maps on the Texas Comptroller's website. This was compiled and labeled by staff. Courtesy/Bright Arrow, LLC
Findings of fact presented at board meeting
The Sulphur Springs ISD school considered approval of an appraised value limitation agreement Monday night for a multi-million dollar solar development northwest of Sulphur Springs.
Before the board voted on the application, members acknowledged any conflict of interest stemming from their association with Bright Arrow Solar or owning any real property that could be impacted by the project.
No board members acknowledged any conflict of interest, although board members Jason Dietze and Kerri Wright were not present for this portion of the meeting.
An appraised value limitation on qualified property allows developers to significantly diminish the property tax liability that composes a substantial ongoing cost of operation that directly impacts the economic rate of return for the project. In the absence of an appraised value limitation, the development of renewable energy facilities becomes financially uncertain as the rate of return often fails to meet the minimum return required to proceed.
The application was delivered to the Texas Comptroller’s Office for review pursuant to Texas Tax Code 313.025 last year. A copy was delivered to the Hopkins County Appraisal district for review pursuant to 34 Texas Administrative Code 9.1054. The application was reviewed by the Comptroller’s office and a determination was made that the application was completed Nov. 5, 2020. The Comptroller of Public Accounts conducted an economic impact evaluation Nov. 24, 2020 pursuant to tax code 313.026, and the Board of Trustees considered the evaluation.
RWE Renewables, LLC, the company behind Bright Arrow Solar, predicted that the tax value of the company will create approximately $6.1 million for SSISD and will continue for approximately the next 35 years, according to Shaun Barnett from Powell, Youngblood and Taylor legal firm.
After hearing presentations from the district’s administrative staff, and from attorneys and consultants retained by the district to advise the board in this matter the Board of Trustees made the following finding: “considering the purpose and effect of the law and the terms of the agreement, it is in the best interest of the district and the state to enter into an agreement for limitation on appraised value of property for school district maintenance and operations taxes.”
Per Bright Arrow Solar, LLC, “The state’s geographic position and containment of several large population centers has made Texas a favorable location for renewable energy development.”
The 300-megwatt solar farm project covering roughly 3,000 acres will be constructed by RWE Renewables Americas, LLC. The farm will consist of 876,000 photovoltaic panels and 85 central inverters. The farm is a $275 million investment and will create around $360,000 of revenue within its first few years of operation.
The revenue gains that will be realized by the school district will be significant in the long term with special reference to revenues available to support school district debt. The project is likely to generate tax revenue in an amount sufficient to offset the school district maintenance and operations ad valorem tax revenue lost as a result of the agreement.
The project is estimated to create 300-350 part time jobs as well as two full time maintenance positions after completion.
The average salary level of the qualifying full time jobs is expected to be at least $45,958 per year, which complies with the requirement that qualifying jobs pay more than the minimum weekly wage. Subsequent economic effects on the local and regional tax bases will be significant.
Construction is projected to begin in the summer of 2021 and possibly be finished by December 2022.