Pulaski County Commissioners and Council members approved ERA designations and tax abatements for Mammoth Solar and Moss Creek Solar
On January 10, 2022, the Pulaski County Commissioners and Council members approved ERA designations and tax abatements for Mammoth Solar and Moss Creek Solar despite arguments by opposition that the supporting impact study showing a substantial loss in jobs and loss in ag revenues as a result of the proposed solar projects was significantly flawed.
Also, Commissioners Chuck Mellon, Maurice Loehmer*, Mike McClure and Council President Ken Boswell signed the Mammoth Solar Economic Development Agreement (the “Agreement”), despite the Agreement being incomplete and missing several key exhibits. [Click here to view the Agreement that was provided and represented as the final agreement.]
*Commissioner Maurice Loehmer signed the agreement even though he has signed up his personal ground with a solar developer.
Concerns regarding the Agreement:
The Agreement allows Mammoth Solar a 10-year, 100% tax abatement on Real property in additional to the 20-year, 100% tax abatement on personal property investment. The 10-year tax abatement on Real property was NOT disclosed during the public hearing.
The Agreement has a 5% escalation occurring every 3 years to adjust for inflation. However, the country experienced 7% inflation just last year!
Exhibit A - Economic Development Payment schedule is blank. No payment schedule was attached. Why did the Commissioners and Council President sign the Agreement without a payment schedule?
Exhibit B – Real Estate/Project Area is blank
Exhibit C – Statement of Benefits is blank
Exhibit D – Guaranty Agreement is incomplete and not signed. The Guaranty Agreement term is only for 5 years from the construction commencement date. What about the other 25 years? No guaranty?
The Economic Development Payments (the “EDPs”) are guaranteed by Starke Solar LLC. They are agreeing to guarantee their own payments? Do they even have the financial means to guarantee these projects? Did the County Attorney, Economic Development Director, Commissioners, or Council members ask for a financial statement from Starke Solar LLC? Do they even know who the members are of the LLC?
Mammoth Solar also included in the Agreement their intention of possibly producing “Green Hydrogen” with the energy produced by the solar panels, as opposed to connecting and selling the electricity to the grid. Obliviously, the special exception that was granted and which is currently being challenged does not allow for the production of hydrogen. Did the County Attorney, Economic Development Director, Commissioners and Council members miss this?
If the solar project experiences a casualty event, the Agreement requires the County to grant a reduction to their EDPs for the year of the casualty event and the solar developer may request an additional 1-year reduction of the EDPs. This should not have been approved. Presumably, the County develops its budget each year depending on receiving the EDPs. The County cannot afford to reduce or eliminate the EDPs because of Mammoth Solar’s hardship.
The Agreement forces Council and Commissioners to publicly support Mammoth Solar’s project. (Is forcing future elected individuals to support Mammoth Solar’s project even enforceable under Indiana law?)
Under the Agreement, in the 15th year, Mammoth Solar may terminate its obligation to make any of the remaining 5 years of EDPs by providing written notice to County. This could eliminate $9,763,553 of the $34,628,894 Mammoth Solar promises to make. This was not disclosed during the public hearings before the Council. Why wasn’t this disclosed? Why is this acceptable? Did anyone read this Agreement?
Please question the Commissioners, Council members, county attorney and economic development director as to WHY they approved this Agreement
Pulaski County residents and property owners deserve better!