Progress moves forward with CP solar farm

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Como-Pickton CISD

COMO-PICKTON—Como-Pickton Consolidated Independent School District took the first step toward a final agreement with the Telios Corporation for a possible solar farm by approving an application for value limitation.

“[A]ll it does is say we’re interested in doing due diligence and knowing what impact it [the solar farm] will be and if it will be in the best interest of the district,” attorney Rick Lambert with Powell, Youngblood and Taylor law firm said at the Monday school board meeting.

Before the board voted on the application, members acknowledged any conflict of interest stemming from their association with Telios or owning any real property that could be impacted by the project.

Brittany Smith and Mark Humphrey both disclosed they had conflicts of interest. Smith said it was related to “immediate family and property,” and Humphrey said his conflict was related to a possible “economic impact.” Both abstained in voting on matters relating to the solar farm.

Telios proposes 300 full-time construction jobs and commits to create two permanent jobs after construction is complete. Companies are required to create 10 permanent jobs to receive a value limitation, but that requirement can be waived under certain circumstances. According to the Comptroller’s website, “more than half of applicants in fact receive such waivers.”

“There’s one job for every 150-200 megawatts,” Michael Fry said, who is the senior property tax consultant with tax firm KE Andrews. He, along with Telios President Shannon McCall and general counsel Ty Gomez, were present at the meeting.

According to Fry, the farm will be approximately 299.25 megawatts. The number of acres for the solar farm was not said during the meeting, but according to real estate company Landmark Dividend’s website, 2.5-4 acres can generate 1 megawatt based on the region’s sun intensity. The farm will be in the Pine Forest area near Pickton west of FM 269 and northwest of FM 3105.

Shelly Leung from PYT law firm gave a presentation to the board regarding the state laws about economic development, specifically chapter 313 on value limitation and tax credits.

“This is at the local government level your tool to incentivize development in your specific areas of the district,” she said.

Leung stressed that a value limitation is not a tax abatement “where you’re not accepting any taxes,” but rather, it limits the project value for tax purposes during a 10-year period. She added the comptroller requires a minimum investment of $20 million in CPCISD as part of these agreements.

“The school district must elect to participate in order for the company, Telios Corporation, to receive that tax benefit,” Leung said. “Like Rick had mentioned, at this stage, we’re only accepting the application to submit it to the comptroller for formal review.”

Based on if the board agrees to the value limitation by Dec. 1, Telios would begin construction in April 2020, and commercial operations should start in December 2021. The 10-year value limitation would begin in January 2022 with the property worth $20 million, and in January 2032, the value will revert to a projected worth of $50 million.

“The total new investment is $285 million,” Leung said. “This is, from all projects I’ve seen, a very large project.”

Telios also pledges yearly supplemental payments amounting to roughly $74,000 for the 10-year period in addition to paying taxes on the property’s limited value.

“It’s a way for the applicant to share a portion of their tax savings with the school district,” Lueng said.

In an email, Bower said, as more information becomes available, his opinion might change, but he is currently optimistic.

“I believe this to be an incredible opportunity, economically speaking, for our school district,” he said. “I believe that it will benefit both Como-Pickton CISD as well as the investors.”