GCEDC board approves Plug Power project for WNY STAMP
Plug Power Inc.’s development of North America’s largest green hydrogen production facility at the Western New York Science & Technology Advanced Manufacturing Park (STAMP) received final approval from the Genesee County Economic Development Center (GCEDC) Board of Directors at its March 25 meeting.
Plug Power Inc. plans to build the $232.7 million green energy technology facility at a 29.884-acre site at STAMP, with a proposed initial operation creating 68 new jobs at an average salary of approximately $70,000.
Plug Power Inc. also will invest $55 million to help build a 345/115KV electric substation in partnership with the New York Power Authority and National Grid. The substation will support future expansion and growth opportunities at STAMP’s 1,250-acre mega-site.
“The investments by Plug Power Inc. will advance our region’s expanding green hydrogen economy, create good jobs aligned with our county’s workforce training programs, and advance major infrastructure that is accessible to future projects,” said GCEDC President & CEO Steve Hyde.
“This project by Plug Power, along with the team effort by the GCEDC Board of Directors, the Empire State Development, the New York Power Authority, and National Grid, show our capacity to advance regionally significant projects at STAMP.”
Under the incentives application approved by the GCEDC Board, Plug Power Inc. will contribute approximately $2.3 million annually to support local municipalities and infrastructure development under a 20-year agreement.
In addition to Plug Power, the GCEDC Board also approved or accepted applications from five projects totaling another $420 million of capital investment in Genesee County.
The GCEDC Board approved final incentives for Forefront Power LLC (Elba Solar) for a $9.7 million community solar project on Norton Road in the Town of Elba. The project will generate 5MW of power and generate approximately $518,803 in new revenue to Genesee County, the Town of Elba, and the Elba Central School District over the proposed 15-year agreement.
The board also approved final incentives for Solar Liberty for community solar projects on Tesnow Road in the Town of Pembroke at a capital investment of $7.7 million. The projects will generate 4MW and 5MW of power and will generate approximately $856,024 in new revenue to Genesee County, the Town of Pembroke, and the Akron Central School District over the proposed 15-year agreement.
Finally, the GCEDC Board of Directors accepted initial applications for two other projects:
- Excelsior Energy LLC is proposing to invest $345.55 million in a utility-scale solar project on multiple properties in the Town of Byron. The project will generate 280 MW of power. Excelsior has negotiated a 20-year tax and community host agreements, including payments of $6,500 per MW, with a 2-percent annual escalator, to Genesee County, the Town of Byron, and the Byron-Bergen School District.
- DePaul Special Needs Apartments LP is proposing to invest $3.75 million to expand by 20 living units an existing special needs housing campus in the City of Batavia. The project would increase annual PILOT payments by approximately $6,000 per year for the remainder of the facility’s existing PILOT schedule.
UPDATE: We asked Jim Krencik, marketing director for GCEDC, to clarify the tax abatements for these projects. He provided the following. The "Property Tax Payments" followed by tax savings is the PILOT on the project (payments in lieu of taxes). The sales tax exemption is an exemption on sales tax for materials used in construction.
- Approved Property Tax Payments
- $2.3 million / year
- $46 million / 20 years
- Estimated Savings
- $117.7 million property tax savings / 20 years if assessed at cost of construction ($232.7 million)
- Anticipated assessment is much more likely to be $60-90 million
- · $2.3 million / year = 0 percent abatement on a $65 million assessment
- $1.1 million sales tax exemptions
- Proposed Property Tax Payments
- $1.8 million / year 1, increases by 2 percent annually
- Based on $6,500 / megawatt
- $44 million / 20 years
- Estimated Savings
- $21.4 million property tax savings / 20 years
- On solar panels only, land with panels on them are assessed separately
- $11.2 million sales tax exemption