Loading...
TR-2011-56 RIVERMOOR SOLAR - SHOEMAKER LANE TR-2011-56 A RESOLUTION ENTERINGINTO A TAX AGREEMENT WITH RIVERMOOR-CITIZENS, LLC FOR A SOLAR DEVELOPMEMT PROJECT LOCATED AT 912 SHOEMAKER LANE,AGAWAM, MA (SPONSORED BY: MAYOR RICHARD A. COHEN) WHEREAS, Rive rmoo r-Citize ns, LLC located in the Town of Agawam (the "Town") has entered into a long term lease for the property located at 912 Shoemaker Lane,Agawam (the "Property"); and WHEREAS, Rive rmoo r-Citize n s, LLC, through its wholly owned subsidiary, Rivermoor-Citizens Route 57, LLC(collectively, "Rivermoor-Citizens") intends to develop a photovoltaic solar energy project on the Property(the "Project"); and WHEREAS, photovoltaic installations provide communities with reliable and clean energy and reduces greenhouse gas emissions and local reliance on imported energy; and WHEREAS, Rivermoor has agreed to provided the Town with energy credits upon completion of the project; and WHEREAS, Rivermoor-Citizens and the Town, under the authority of M.G.L. c. 59, §38H(b)o d e t9 7- execute a negotiated tax agreement for payment of taxes on the Project in order to otherwis&e Rivermoor-Citizens from the payment of real and personal property taxes for the Project; and vpr— M WHEREAS, Rivermoor-Citizens and the Town have reached this Tax Agreement as the result of Wd -x:%- faith negotiations so that the annual payment of taxes shall be the equivalent of the property tax obligations based on full and fair cash valuation of the project; and WHEREAS, Rive rmoor-Citize ns and the Town acknowledge that a comprehensive agreement fixing and maintaining mutually acceptable, reasonable, and accurate tax payments for the Project for each fiscal year from 2012 through 2037 is appropriate and serves their respective interests. WHEREAS, photovoltaic installations provide communities with reliable and clean energy and reduces greenhouse gas emissions and local reliance on imported energy; and NOW THEREFORE, BE IT RESOLVED BY THE AGAWAM TOWN COUNCIL pursuant to M.G.L. c. 59, §38H (b) enter into the attached agreement and authorize the Mayor to execute the tax agreement as attached to this resolution. DATED THIS A�DAY OF 2011. PER OF THE AGAWAMPTY COUNCIL JDo Rh a It, President P,R 0 D 0 FORM AND LEGALITY D Rh a It, Pre i, 0 P_R D 0 FORM 0 OA— V i i Cit c Vincen W. ioscia, City Solicitor MAYORAL ACTION Received this day of 2011 from Council Clerk. Signed by Council President this cz I day of &)ftiCM�,K, 201 1. APPROVAL OF LEGISLATION By the powers vested in me pursuant to Article 3, Section 3-6 of the Aga%aa,m,�&er, as aknqnded, I hpreby approve the passage of the above legislation on this day of Kh R4 Qf � 2011. 2�2 - zzL Richard A. Cohen, Mayor DISAPPROVAL OF LEGISLATION By the powers vested in me pursuant to Article 3, Section 3-6 of the Agawam Charter, as amended, I hereby veto the passage of the above legislation on this day of 2011 for the following reason(s): Richard A. Cohen, Mayor RETURN OF LEGISLATION TO COUNCIL CLERK Returned to Council Clerk this day of VitfAiX/ 2011. TAX AGREEMENT ROUTE 57 TAX AGREEMENT WHEREAS, Rivermoor-Citizens, LLC located in the Town of Agawam (the "Town") has entered into a long term lease for the property located at 912 Shoemaker Lane, Agawam (the "Property"); and WHEREAS, Rivermoor-Citizens, LLC, through its wholly owned subsidiary, Rivermoor- Citizens Route 57, LLC (collectively, "Riven-noor-Citizens") intends to develop a photovaltic solar energy project on the Property (the "Project"); and WHEREAS, Rivermoor-Citizens and the Town, under the authonity of M.G.-L. c. 59, §38H(b), desire to execute a negotiated tax agreement for payment of taxes on the Project in order to otherwise exempt Rivermoor-Citizens from the payment of real and personal property taxes for the Project; and WHEREAS, Rivermoor-Citizens and the Town have reached this Tax Agreement as the result of good faith negotiations so that the annual payment of taxes shall be the equivalent of the property tax obligations based on full and fair cash valuation of the project; and WHEREAS, Rivermoor-Citizens and the Town acknowledge that a comprehensive agreement fixing and maintaining mutually acceptable, reasonable, and accurate tax payments for the Project for each fiscal year from 2012 through 2037 is appropriate and serves their respective interests. NOW, THEREFORE, Rivermoor-Citizens and the Town agree as follows: 1. The parties acknowledge that this Agreement is fair and beneficial to them because it resolves all tax issues between them with resulting alleviation of economic and financial uncertainty. Moreover, both parties value the tax and economic stability achieved by this Agreement because it will result in steady, predictable and reasonable tax payments for the Project. The parties acknowledge that this Agreement contemplates any increases in real property taxes on the Property that may be assessed solely as a result of the Project. This Agreement shall not otherwise impact the Town's ability to raise or lower real property taxes in the ordinary course of its tax assessment practices. The owner of the Property shall remain responsible for all real property taxes. 2. The amount of real and personal property tax paid in each fiscal year by Rivermoor- Citizens to the City on account of the Project shall be based on an assessed value $176,500, multiplied by the commercial tax rate for that particular fiscal year. For example, the current commercial tax rate for Fiscal Year 2011 is $28.32 per thousand dollars of valuation, so Rivermoor-Citizens shall pay the town $4,998.48 in property taxes. The assessors may allocate the value on which the tax is based between the Project's real property and personal property in their determination of full and fair cash value of each. 884452v2 (For each fiscal year, Rivermoor-Citizens shall make two payments of the tax obligations required by this Agreement on October I" and February I't at the tax rate for the previous fiscal year, and a pro rated payment on May I"based on that fiscal year's tax rate.) 3. This Agreement is entered into in good faith to achieve predictability and economic stability for both parties by establishing reasonable, accurate, and reliable tax agreement payments for Rivermoor-Citizens Project. Accordingly, Rivermoor-Citizens and the Town agree that neither party shall seek to use the fair market values established by this Agreement in any future proceedings regarding the value of Rivermoor-Citizens' property in the Town or in any other proceeding regarding the value of other Rivermoor-Citizens property, except as provided in paragraph 5 of this Agreement. 4. This Agreement shall terminate as of fiscal year 2037 unless both parties agree to extend the Agreement with its current terms, such agreement to be in writing. 5. The Parties have entered into this Agreement only after full and due consideration thereof and with the advice of their counsel. 6. The Parties agree that, if any provision of this Agreement is determined invalid or unenforceable, the entire Agreement shall be invalid and unenforceable. 7. Rivermoor-Citizens, on behalf of itself and any successors to or assigns of its interest the Project, and the Town shall act in good faith to carry out this Agreement and to resolve amicably any disputes or disagreements which may arise hereunder. 8. In the event Rivermoor-Citizens, LLC or their successors/assigns or its named subsidiary or its successors/assigns in this agreement files for bankruptcy protection this agreement shall become null and void and any taxes accrued from the date of filing shall be in accordance with Massachusetts General Law and not calculated or governed by this agreement. 9. Rivermoor-Citizens, LLC or their successors/assigns or its named subsidiary or its successors/assigns acknowledge that the Town of Agawam shall bear no cost in returning the site to its original condition, Furthermore, Rivermoor-Citizens, LLC or their successors/assigns or its named subsidiary or its successors/assigns state that their lease agreement with the property owner sufficiently address this contingency. It is the intent of the parties hereto that this paragraph shall survive should this agreement become null and void pursuant to paragraph (8) eight. 10. This Agreement is subject to approval by the City Council of Agawam acting through its Mayor, and it's Board of Assessors. 11. This Agreement is full, final and complete expression of the parties' agreement on all real and personal property tax issues respecting all of Rivermoor-Citizens' Project at the Property in the Town of Agawam. 2 Executed this_day of 2011, by the undersigned who represent that they are fully and duly authorized to act on behalf of their principals. TOWNOFAGAWAM By Its Mayor, Richard A. Cohen Rivermoor-Citizens Route 57, LLC By 3 A Town of Agawam Assessor's Office 3 6 Main St, Agawam, Massachusetts 0 100 1-183 7 Tel. 413-786-0400 X258 Fax 413-786-9927 Email: assessor@agawam.ma.us TO: Agawam City Council CC: Mayor Richard Cohen, John Tourtelotte FROM: Kevin Baldini DATE: November 17, 2011 SUBJECT: Solar Project Information Enclosed please find information regarding the two solar projects proposed by Riven-noor Energy. The packet of infon-nation contains an excerpt of MGL Chapter 59, Section 38H, Subsection B, which authorizes a city or town to enter into a tax agreement with an electric generation facility. I have highlighted sections of the law that I believe are most important to consider. I have also included an opinion letter from the Massachusetts Department of Revenue dated February 10, 2000 regarding a tax agreement for your review. Pertinent information regarding the payment agreement in this broad opinion letter is contained in Question#3 and its subsequent answer in the body of the opinion letter, There is also information regarding each proposed project, including an assessors' map delineating each site, tax agreement numbers and also cost numbers as a basis for property taxes if there were no tax agreement in place. In regard to the Tax Agreement pages enclosed, the tax agreement amounts of$5,000 and $8,000 were numbers that were offered to the Town of Agawam by Riven-noor as part of their proposal. As a point of clarification from an earlier handout from Rivermoor Energy, these numbers were not generated by this office. I have converted each of those tax amounts to an assessed value in order to better comply with DOR advice on how to structure tax agreements. In this way, the tax payment is tied to the commercial rate that is set each year, instead of being a flat dollar amount each year. I have anticipated a 2% increase each year of the agreement, which may be a little generous, since the value doesn't change over the term of the agreement. The net metering credit amounts on the Shoemaker Lane agreement were supplied by Rivermoor Energy as their best estimate of the energy savings to the town. There is no net metering credit to the town on the Mushy's tax agreement,. The proposed project for this agreement is sited on a former dump. The spreadsheets entitled Cost Basis for Property Taxes are my best estimate of what the project would produce in tax revenue if assessed as part of the regular tax base. I have used detailed cost figures for each project as supplied by Rivermoor Energy since they have experience in working with contractors to build these types of projects. Based on conversations with people in the assessment and appraisal field, I believe these cost numbers to be reasonable. The original cost number at the top of each page only considers the physical assets of each project, and not any soft costs such as engineering, installation of materials, overhead and developer's profif. This is typical of the way personal property is assessed for property tax purposes. I have used a depreciation schedid ed supplied by Patriot Properties, the company that values all of the personal property in the town. In the 91h year of the term, the depreciated cost is set at 25% of the original cost for the rest of the term. For the tax rate, I have started with the current commercial tax rate and increased that by 2% for each year over the 25 year agreement. It must be emphasized that this cost projection is highly speculative due to the length of the projection itself, and also due to the fact that solar power, not unlike other technology based industries, changes at a very fast pace. The likelihood of the cost of solar panels continuing to decrease is very high in the competitive world market. This would in turn lower the assessed value in this projection. The spreadsheet is simply being used as a means to get a general idea of what the potential tax obligation would be if assessed as part of the property tax base. In this way, a rough comparison can be made as to the relative merits of the proposed tax agreements purely on a tax dollar basis. If you have any questions regarding the above information, please feel free to contact me. Sincerely, 6 K aVn A' or -10 Town of Agawam Assessor's Office 36 Main St, Agawam, Massachusetts 01001-1837 Tel. 413-786-0400 X258 Fax 413-786-9927 Email: assessor@agawam.ma.us I MGL Chapter 59, Section-38 H, Subsection B A generation company or wholesale generation company which does not qualify for a manufacturing classification exemption pursuant to paragraph (3) of the clause Sixteenth of said section 5 may, in order to comply with its property tax liability obligation, execute an agreementfor the payment in lieu of taxes with the municipality in which such generation facility is sited, and said company shall be exemplfrom property taxes, in whole or in part, asprovided in any such agreements during the terms thereof. Any such agreement shall be the result ofgoodfaith negotiations and shall be the equivalent of the property tax obligation based on full andfair cash valuation. Any such negotiated amount shall be included in the tax base for purposes of determining the levy ceiling and levy limit under section 2 1 C and in determining minimum residential factor and classification of property under section I A of chapter 58 of the General Laws and section 56 of chapter 40 of the General Laws. The department of revenue may issue guidelines for implementing the provisions of this subsection consistent with preserving the negotiated payment amount in the local tax base for such purposes. Massachusetts Department of Revenue Division of Local Services Frederick A.Laskey, Commissioner Wa-filynBmw1e, Chief,Bureau of Local Assessment 2 February 10,2000 J. Raymond Miyares Pickett and Miyares 47 Winter Street, Th Floor Boston, MA 02108 Re: Agreement for Payment in Lieu of Taxes - Nickel'Hill Energy, LLC& Dracut, MA Our File No. 99-775 Dear Mr. Miyares: You have asked the following questions concerning the agreement noted above: 1, Is the twenty-year term of the agreement permitted under G.L. c. 59, §38H? 2. Is a schedule of payments to be made under the agreement permissible under the law, given that the guidelines indicate that a valuation or valuation formula should be utilized? 3. Must the agreed payments closely approximate the amounts that would be made if the property were valued and taxed in the absence of a PILOT? In our opinion, the answers to these questions are as follows, subject to the discussion in the remainder of the opinion: 1. Since G.L. c. 59, §38H(b) provides no specific limitation period for any general PILOT, we believe any such agreement must be reasonable under the circumstances. Since the state legislature has approved such agreements for periods of up to twenty-five years, we cannot say that the period provided in this agreement is per se unreasonable. See c. 462 of the Acts of 1996. 2, The Bureau of Local Assessment prefers agreements that establish values or formulas for values since such agreements are more consistent with the property tax laws and are less cumbersome to administer. However, the statute authorizes agreements for "payment in lieu of taxes", and several agreements currently in place have provided for fixed payments rather than values or value formulas. We have been able to address the administrative problems presented by such agreements by converting the payments into attributed values for use in calculating levy ceilings, levy limits and minimum residential factors, as well as determining the classification of property. Post Office Box 9490, Boston,MA 02205-9490, Tet 617-626-2334,*Fax:617-626-2330 Ray Miyares Page 2 3. The statute provides that any ag-reement "shall be the result of good faith negotiation and shall be the equivalent of full and fair cash valuation." In our opinion this does NOT require that the agreem;Lmt payments or values closely approximate actual value based taxes, since that is inherently speculative over a significant period of time. However, in order to meet the good faith directive, we believe the town negotiating body must have adequate appraisal information or advice to understand the potential tax revenue that could be received over the term. DISCUSSION We have been provided with a copy of an Agreement for Payment in Lieu of Taxes (PILOT) executed June 7, 1999 by Nickel Hill Energy, LLC and the Town of Dracut. We have also received a copy of the June 7, 1999 town meeting vote approving and ratifying the PILOT agreement. (The vote also authorized, but did not require, a petition to the General Court for a special act to approve the agreement). We are further aware that a ten taxpayers' suit has been filed in Middlesex Superior Court challenging the agreement and the town meeting vote approving the agreement. See Bean v. Town of Dracut, Middlesex Superior Court Civil Action No. 99-03914. The PILOT agreement states that Nickel Hill is the prospective owner of a proposed 750-megawatt, gas fired combined cycle power plant to be constructed in the town of Dracut. The agreement further provides for annual estimated tax payments of$3 "Ilion a year for the period of FY2003 through FY2012 (or the first ten years after completion of the plant) and $4 rnillion for FY2013 through FY2022 (or the second ten years after completion of the plant). No appraisal documentation has been provided, but we are advised that the town utilized an engineering consultant on the issue of the probable valuation of the plant with the cxpected parameters. At the outset we note that the agreement purports to limit or eliminate taxation of the plant during the period prior to completion of construction and, as a result, will extend the period of the agreement for that period. While the agreement provides that it covers the real estateand personal property associated with the plant, Nickel Hill does not own the land and expects to ]case it, at least initially. In our opinion, to the extent that Nickel Hill does not own the land, it cannot be covered by the agreement, and the board of assessors will have to assess taxes on the full and fair cash value of the land to its owner. The land will become subject to the agreement upon acquisition by Nickel Hill. 1. With respect to the issue of the reasonableness of the twenty-year agreement period, we look first to the enabling legislation. Nothing in G.L. c. 59, §38H(b) specifies a limit on the term of any generally authorized PILOT. However, Section 38H(a) prescribes a 12 year transition period, ending in FY2009, during which payments in addition to taxes may be required for any pre-existing plant that loses value as a result of restructuring. Section 38H(b) did provide for special agreements with New England Power Company and host communities for the years 1997 to 2001, and Section 38H(c) authorized an agreement on Ray miyares Page 3 the nuclear plant between Plymouth and Boston Edison for the greater of the license termination date, including any renewal thereof, or 15 years. None of these provisions, with the possible exception of Section 3814(c), would permit an agreement of 20 years or more. Given that the only general provision was the transition provision that limited transition payments to a 12-year period, the guidelines indicated that a twelve-year term would be a reasonable one. IGR 98-403, Part I.C., first bullet point, p. 4. Nevertheless, we do not believe this sets an upper limit on the number of years for an agreement such as the onenegotiated by Dracut and Nickel Hill. All the PILOT periods specifically defined in Section 38H addressed existing power plants in which agreements were in the process of negotiation or had been negotiated when the Electric Restructuring Act was passed. In fact, one NEP agreement and the Plymouth agreement, both intended to be covered by Section 38H, were later specifically approved by special legislation. See Chapter 32 of the Acts of 1998 (Salem - NEP agreement FY1997-FY2007) and Chapter 24 of the Acts of 1999 (Plymouth - Boston Edison agreement FY1998-2012). Dracut and a number of other towns are facing a different situation negotiating agreements for power plants yet to be constructed. The companies building the plants are insisting upon longer agreements to facilitate financing arid stability during the repayment period for the borrowing costs associated with construction. Typically, these agreements are being negotiated for 20 years or more- In Blackstone and Bellingham, for instance, the agreements are for 20 years with town options to extend them an additional 10 years. More significantly, in 1997 the town of Charlton negotiated an agreement for a prospective plant very similar to that of Dracut with a period of 20 years plus each construction year. That agreement pre-dated the restructuring act and was authorized by a special act of the legislature. Chapter 462 of the Acts of 1996 authorized a Charlton agreement "not to exceed twenty-five years" from the effective date of the act Uanuary 6, 1997). We think this special act is indicative of the length of time such agreements concerning prospective power plants will be considered reasonable. See also St. 1993, c. 92 authorizing an agreement between the city of Lowell and L'Energia Limited Partnership for twenty years. Thus, we cannot say that the Dracut agreement is unreasonable with respect to the term of its application. 2, Also in the guidelines, we stated that "agreements should fix values or formulas for determining values (rather than fixing tax payments)." IGR 98-403, Part I.C., second bullet point, p. 4 (emphasis added). The Bureau prefers this form of agreement because it more closely parallels the property tax system and simplifies calculation of levy limits and residential factors in the classification process. However, we did not say that such agreement inust fix values or formulas for determining values, and we did not rule out agreements based on prescribed tax payments. Ray Miyares Pagc 4 G-L. c. 59, §38H(b) provides that a generation company may "execute an agreement for the payment in lieu of taxes with the municipality." It further provides that the agreement"shall be the equiValent of the property tax obligations based on full and fair cash valuation. Any such negotiated amount shall be included in the tax base for purposes of determining the levy ceiling and levy limit ... and in determining the minimum residential factor and classification of property... " (emphasis added) These provisions use valuation and tax levy terms interchangeably. A payment in lieu of tax is gq�nerally considered to be the equivalent of the tax itself. The term "tax base" is sometimes used to refer to the taxable valuation base, but may also refer to the taxable revenue of a municipality. The levy ceiling and levy limit reflect the maximum amount of actual tax that may be levied, but use the full and fair cash value in making the calculafions. The minimum residential factor is used in classifying property and establishing multiple tax rates, but is calculated using full and fair cash valuation of property by class. Based on the language of the statute, we cannot say that such agreements are not permitted under the law. 3. We now address the issue whether the agreements must approximate full and fair cash valuation over the life of the agreements, In the guidelines we statdd that the values or formulas for values fixed by any agreement "should be representative of the future full and fair cash values of the plant for the term of the agreement..." IGR 98-403, Part I.C., second �ullet point, p. 4. Certainly, negotiated payments utilizing sophisticated projections of value and tax rates without discounting the tax would best approximate the taxes that would have been assessed but for the agreement. However, we are aware that valuation of a power plant is an inexact science, even when valuation on a single date is involved and all the data necessary for the calculation is already known. The value of a plant will vary over time dependent on a number of factors that cannot be known in advance. Such factors as new technological developments (economic depreciation), fuel costs, fuel availability, supply and demand, regulatory changes and the like will have considerable influence o*n value over time. Thus, the best projected valuation that can be achieved is only an approximation of value based on currently known or anticipated factors. The statute provides that the agreement "shall be the result of good faith negotiations and shall be the equivalent of full and fair cash valuation." (emphasis added) We think the agreement may still be in good faith if the amount of payment negotiated reflects a discount or a premium, provided the municipality's negotiating officer or board has independent evidence of potential value to know what the town may lose or gain in the negotiations, and the agreement is ratified by the municipal legislative body. The goal of the restructuring provisions is to encourage the building of efficient power plants and the reduction in cost of electricity to all consumers. This goal is enhanced if the parties may negotiate such discounts or premiums based on the relative merits of the proposed plant and needs of the proposed host community and are not constrained to follow the approximate value of the plant under the usual taxing provisions. Again, we cannot say that any agreement Ray Miyares Page 5 providing for payments that are not closely related to actual projected values and tax rates over the period of the ag-reement is necessarily prohibited. We hope this addresses your concerns. If we may be of further assistance, please do not hesitate to contact us again. Very truly yours, Bureau of Local Assessment r I'l lit rage 1 01 1 ME ;E�tv GARDEN S7 11 1010 ST i� AV. — , .mo1,ff,0,t-' jai r ISO$ �—J 7- 0 T?o 0— RISING ST i A OEM /* ?_,e -If-!��NF7 3 1 #4 CEBAN ST 0 .1= % if Date: 11/09/11 Parcel ID: F7 3 1 0 621 1241 Feet Owner; WESTMASS AREA DEVELOPMENT Interactive Map I Parcel Address. LOT B SHOEMAKER LN Scale: I"=621'(1:7447) http://hosting.tighebond.coni/agawam/print.aspx?maptype=5&image=http%3a%2f'/o2fproj... 11/9/2011 912 SHOEMAKER LANE TAX AGREEMENT NOVEMBER 16, 2011 Total Project Size 1.67 MW Estimated Hard Construction Cost of Project $ 4,700,000 Rive rmoo r-Citizens will pay current land taxes, $10,972 subject to a nnua I Prop 2.5 tax increases Tax Rate 0.02832 Tax Agreement $ 5,GOO Assessed value for Tax Agreement �_ 176,554 Rounded $ 176,500 Estimated Annual Power Production 2,171,000 kWh Net Metering Rate $ 0.0835 Value o(15%Annual Savings,Year 1 $ 27,201 DOE Historical Annual Price Growth in Power Rates 3% * Note: For simplicity,we have not included 0.5%solar module performance clegreclation per year. Year 1 2 3 4 5 6 7 8 9 10 10 Yr TOTAL Tax Agreement $5,000 $5,100 $5,202 $5,306 $5,412 $5,520 $5,631 $5,743 $5,858 $5,975 $54,749 Net Metering Credits $27,201 $28,017 $28,858 $29,723 $30,615 $31,533 $32,479 $33,454 $34,457 $35,491 $311,829 Total Benefit to Town $32,201 $33,117 $34,060 $35,029 $36,027 $37,054 $38,110 $39,197 $40,316 $41,467 $366,578 Year 11 12 13 14 is 16 17 is 19 20 20YrTOTAL Tax Agreement $6,095 $6,217 $6,341 $6,468 $6,597 $6,729 $6,864 $7,001 $7,141 $7,284 $121,487 Net Metering Credits $36,556 $37,653 $38,782 $39,946 $41,144 $42,378 $43,650 $44,959 $46,308 $47,697 $730,901 Total Benefit to Town $42,651 $43,869 $45,123 $46,414 $47,741 $49,108 $50,514 $51,960 $53,449 $54,981 $852,388 Yea r 21 22 23 24 2S 25 Yr TOTAL 25 Yr AVG Tax Agreement $7,430 $7,578 $7,730 $7,884 $8,042 $160,151 $6,406 Net Metering Credits $49,128 $50,602 $52,120 $53,684 $55,294 $991,729 $39,669 Total Benefit to Town, Rivermoor-C $56,558 $58,180 $59,850 $61,568 $63,336151,151788-0-1 $46,075 PRODUCED BY KEVIN BALDINI ASSESSOR COST BASIS FOR PROPERTY TAXES 912 SHOEMAKER LANE NOVEMBER 116, 20111 Original Cost $4,400,000 Year 1 2 3 4 5 6 7 8 9 10 Assessed Value $4,048,000 $3,608,000 $3,168,000 $2,684,000 $2,376,000 $1,848,000 $1,496.000 $1,320,000 $1,100,000 $1,100,000 Tax Rate $28-32 $28.89 $29.46 $30.05 $30.65 $31.27 $31,89 $32.53 $33.18 $33.85 Property Tax $114,639 $104,222 $93,342 $80,663 $72,835 $57,782 $47,712 $42,941 $36,500 $37,230 11 12 13 14 15 16 17 18 19 20 Assessed Value $1,100,000 $1,100,000 $1,100,000 $1,100,000 $1,100,000 $1,100,000 $1,100,000 $1,100,000 $1,100,000 $1,100,000 Tax Rate $34.52 $35.21 $35.92 $36.63 $37.37 $38.11 $38.88 $39.65 $40.45 $41.26 Property Tax $37,974 $38,734 $39,508 $40,298 $41,104 $41,926 $42,765 $43,620 $44,493 $45,383 21 22 23 24 25 Assessed Value $1,100,000 $1,100,000 $1,100,000 $1,100,000 $1,100,000 Tax Rate $42.08 $42.92 $43.78 $44.66 $45.55 Property Tax $46,290 $47,216 $48,160 $49,124 $50,106 Total Tax Solar Equipment $1,344,568 25 YR AVG $53,783 Assumptions.- 1- 9 Year Depreciation Schedule with a use value of 25%at the end of the 9th year 2- Commercial Tax Rate will Increase 2%each year of the agreement PRODUCED BY KEVIN BALDINI ASSESSOR 21.70 AC 20.17 AC 35232 SF N 292DD 5F 39825 SF 19700 SF 3 9 12 18525 SF ISNO SF 13 1.32 AC 120 AC 10 23940 SF T 6 -,I_ 14042S 12121)SF M58 SF 8252 ELF 14DOO SF �70 1 3. '425'a SO, 4- 97 AU 16000 sr 3 F--j ' ., F—� iws 3 2 1.250 SP 4256 S SA 1300D.BF � v STA 33872 SF 250 ODW 12250 IF 720.00 IDOOD SF 13950 SF 9 9 " 5 3" 2000 13 1.19 AC 1 ILI. F Map: K13 J12 Kli- I January 2008 MUSHY'S TAX AGREEMENT Nove m ber 16, 2011 Total Project Size 1.7 MW Estimated Hard Construction Cost of Proiect $4,500,000 Tax Rate 0.02832 Tax Agreement Amount $8,000 Assessed Value for Tax Agreement $282,486 Rounded $282,500 Year 1 2 3 4 5 6 7 8 9 10 10YrT0TAL Tax Agreement Payment(est) $8,000 $8,200 $8,405 $8,615 $8,831 $9,051 $9,278 $9,509 $9,747 $9,991 $89,627 Net Metering Credits $0 $0 $0 $0 $0 $0 $0 $0 so $0 $0 Total Benefit to Town $8,000 $8,200 $8,405 $8,615 $8,831 $9,051 $9,278 $9,509 $9,747 $9,991 $99,627 Year 11 12 13 14 15 16 17 18 19 20 20YrTOTAL Tax Agreement Payment $10,241 $10,497 $10,759 $11,028 $11,304 $11,586 $11,876 $12,173 $12,477 $12,789 $204,357 Net Metering Credits $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Benefit to Town $10,241 $10,497 $10,759 $11,028 $11,304 $11,586 $11,876 $12,173 $12,477 $12,789 $204,357 Year 21 22 23 24 25 2SYrTOTAL 25 Yr AVG Tax Agreement Payment $13,109 $13,437 $13,773 $14,117 $14,470 $273,262 $10,930 Net Metering Credits $0 $0 $0 $0 so $0 $0 Total Benefit to Town $13,109 $13,437 $13,773 $14,117 $14,470 1 $273,262 1 $10,930 PRODUCED BY KEVIN BALDINI ASSESSOR COST BASIS FOR PROPERTY TAXES MUSHY'S GOLF CENTER NOVEMBER 16, 2011 Original Cost $4,500,000 Year 1 2 3 4 5 6 7 8 9 10 Assessed Value $4,140,000 $3,690,000 $3,240,000 $2,745,000 $2,430,000 $1,890,000 $1,530,000 $1,350,000 $1,125,000 $1,125,000 Tax Rate $28.32 $2&89 $29.46 $30.05 $30.65 $31.27 $31.89 $32.53 $33.18 $33.85 Property Tax $117,245 $106,591 $95,464 $82,497 $74,490 $59,096 $48,796 $43,917 $37,329 $38,076 11 12 13 14 15 16 17 18 19 20 Assessed Value $1,125,000 $1,125,000 $1,125,000 $1,125,000 $1,125,000 $1,125,000 $1,125,000 $1,125,000 $1,125,000 $1,125,000 Tax Rate $34.52 $35-21 $35.92 $36.63 $37.37 $38.11 $38.88 $39.65 $40.45 $41.26 Property Tax $38,837 $39,614 $40,406 $41,214 $42,039 $42,879 $43,737 $44,612 $45,504 $46,414 21 22 23 24 25 Assessed Value $1,125,000 $1,125,000 $1,125,000 $1,125,000 $1,125,000 Tax Rate $42,08 $42.92 $43.78 $44.66 $45.55 Property Tax $47,342 $48,289 $49,255 $50,240 $51,245 Total Tax Solar Equipment $1,376,127 25 YR AVG $55,005 Assumptions: 1- 9 Year Depreciation Schedule with a use value of 25% at the end of the 9th year 2- Commercial Tax Rate will Increase 2% each year of the agreement PRODUCED BY KEVIN BALDINI ASSESSOR TR-2011-56 A RESOLUTION ENTERING INTO A TAX AGREEMENT WITH RIVE RM 00 R-CITIZE NS, LLC FOR A SOLAR DEVELOPMEIVIT PROJECT LOCATED AT 912 SHOEMAKER LANE,AGAWAM, MA (SPONSORED BY: MAYOR RICHARD A. COHEN) WHEREAS, Rivermoor-Citizens, LLC located in the Town of Agawam (the "Town") has entered into a long term lease for the property located at 912 Shoemaker Lane,Agawam (the "Property"); and - WHEREAS Rivermoor-Citizens, LLC,through its wholly owned subsidiary, Rive rm oor-Citi ze ns Route 57, LLC(collectively, "Rive rm oo r-Citize ns") intends to develop a photovoltaic solar energy project on the Property(the "Project"); and WHEREAS, photovoltaic installations provide communities with reliable and clean energy and reduces greenhouse gas emissions and local reliance on imported energy; and WHEREAS, Rivermoor has agreed to provided the Town with energy credits upon completion of the project; and WHEREAS, Rivermoor-Citizens and the Town, under the authority of M.G.L.c. 59, §38H(b), desire to execute a negotiated tax agreement for payment of taxes on the Project in order to otherwise exempt Rivermoor-Citizens from the payment of real and personal property taxes for the Project; and WHEREAS, Rivermoor-Citizens and the Town have reached this Tax Agreement as the result of good faith negotiations so that the annual payment of taxes shall be the equivalent of the property tax obligations based on full and fair cash valuation of the project; and WHEREAS, Rive rmoo r-Citizens and the Town acknowledge that a comprehensive agreement fixing and maintaining mutually acceptable, reasonable, and accurate tax payments for the Project for each fiscal year from 2012 through 2037 is appropriate and serves their respective interests. WHEREAS, photovoltaic installations provide communities with reliable and clean energy and reduces greenhouse gas emissions and local reliance on imported energy; and NOW THEREFORE, BE IT RESOLVED BY THE AGAWAM TOWN COUNCIL pursuant to M.G.L. c. 59, §38H (b) enter into the attached agreement and authorize the Mayor to execute the tax agreement as attached to this resolution. DATED THIS DAY OF . 2011, PER ORDER OF THE AGAWAM CITY COUNCIL ZDo M. Rh a Lft, President 0 >C) CIO;= P,R 0 D 0 FORM AND LEGALITY iosc City Sc Vincen ioscia, City Solicitor �7? :-bl.C) TAX AGREEMENT ROUTE 57 TAX AGREEMENT WHEREAS, Rivermoor-Citizens, LLC located in the Town of Agawam (the "Town") has entered into a long term lease for the property located at 912 Shoemaker Lane, Agawam (the "Property"); and WHEREAS, Rivermoor-Citizens, LLC, through its wholly owned subsidiary, Riven-noor- Citizens Route 57, LLC (collectively, "Rivermoor-Citizens") intends to develop a photovaltic solar energy project on the Property (the "Project"); and WHEREAS, Riven-noor-Citizens and the Town, under the authority of M.G.L. c. 59, §38H(b), desire to execute a negotiated tax agreement for payment of taxes on the Project in order to otherwise exempt Rivermoor-Citizens from the payment of real and personal property taxes for the Project; and WHEREAS, Rivermoor-Citizens and the Town have reached this Tax Agreement as the result of good faith negotiations so that the annual payment of taxes shall be the equivalent of the property tax obligations based on full and fair cash valuation of the project; and WHEREAS, Rivermoor-Citizens and the Town acknowledge that a comprehensive agreement fixing and maintaining mutually acceptable, reasonable, and accurate tax payments for the Project for each fiscal year from 2012 through 2037 is appropriate and ser-ves their respective interests. NOW, THEREFORE, Rivermoor-Citizens and the Town agree as follows, 1. The parties acknowledge that this Agreement is fair and beneficial to them because it resolves all tax issues between them with resulting alleviation of economic and financial uncertainty. Moreover, both parties value the tax and economic stability achieved by this Agreement because it will result in steady, predictable and reasonable tax payments for the Project. The parties acknowledge that this Agreement contemplates any increases in real property taxes on the Property that may be assessed solely as a result of the Project. This Agreement shall not otherwise impact the Town's ability to raise or lower real property taxes in the ordinary course of its tax assessment practices. The owner of the Property shall remain responsible for all real property taxes. 2. The amount of real and personaI property tax paid in each fiscal year by Rivermoor- Citizens to the City on account of the Project shall be based on an assessed value $176,500, multiplied by the commercial tax rate for that particular fiscal year. For example, the current commercial tax rate for Fiscal Year 2011 is $28.3 2 per thousand dollars of valuation, so Rivermoor-Citizens shall pay the town $4,998.48 in property taxes. The assessors may allocate the value on which the tax is based between the Project's real property and personal property in their determination of full and fair cash value of each. 884452v2 [For each fiscal year, Rivermoor-Citizens shall make two payments of the tax obligations required by this Agreement on October 1" and February Is' at the tax rate for the previous fiscal year, and a pro rated payment on May I't based on that fiscal year's tax rate.] 3. This Agreement is entered into in good faith to achieve predictability and economic stability for both parties by establishing reasonable, accurate, and reliable tax agreement payments for Ri vermoor-Citizens Project. Accordingly, Rivermoor-Citizens and the Town agree that neither party shall seek to use the fair market values established by this Agreement in any future proceedings regarding the value of Rivermoor-Citizens' property in the Town or in any other proceeding regarding the value of other Rivermoor-Citizens property, except as provided in paragraph 5 of this Agreement. 4. This Agreement shall terminate as of fiscal year 2037 unless both parties agree to extend the Agreement with its current tenns, such agreement to be in writing. 5. The Parties have entered into this Agreement only after full and due consideration thereof and with the advice of their counsel. 6. The Parties agree that, if any provision of this Agreement is determined invalid or unenforceable,the entire Agreement shall be invalid and unenforceable. 7. Rivermoor-Citikens, on behalf of itself and any successors to or assigns of its interest the Project, and the Town shall act in good faith to carry out this Agreement and to resolve amicably any disputes or disagreements which may arise hereunder. 8. This Agreement is subject to approval by the City Council of Agawam acting through its Mayor, and its Board of Assessors. 9. This Agreement is full, final and complete expression of the parties' agreement on all real and personal property tax issues respecting all of Rivermoor-Citizens' Project at the Property in'the Town of Agawam. Executed this. day of 2011, by the undersigned who represent that they are fully and duly authorized to act on behalf of their principals. TOWNOFAGAWAM By Its Mayor, Richard A. Cohen 2 Summary of Tax Agreement between Rivermoor-Citizens, LLC and the Town of Agawam Landfill—Hood Solar Agawam City Council November 21, 2011 Project summaU Rivermoor-Citizens, LLC is currently developing a ground-mounted, solar electric generating facility at Mushy's Driving Range(former Grasso Landfill). The system is 1.7 megawatts(MW) in size, large enough to power approximately 30% of the electrical needs of the Hood plant. The electricity will be sold under a long-term, net metering contract to HP Hood, which abuts the property. This project will also have a larger social benefit by offsetting environmentally harrnful coal,oil, and natural gas power plants. A portion of project revenues will support Citizens Energy's charitable programs, such as the heating oil program. Since 2006,Citizens has donated 36,000+gallons of heating oil (267 households) to Agawam residents. Applicability of the Tax Agreement The tax agreement will only be applicable to personal property taxes associated with the installation(which includes all of the equipment associated with the solar facility). Additionally, real estate taxes will increase because the property is currently taxed under Chapter 61 (recreational land). The town will receive roll-back taxes and a higher valuation of the property since the land will no longer be taxed under Chapter 6 1. Therefore,the tax agreement on the personal property is purely additional benefit.to the City of Agawam coming frorn an otherwise undevelopable property(a landfill which can not ever be built upon due to inherent geotechnical conditions of landfill properties). Dollar amount The amount of the tax agreement for personal property taxes will be$8,000 per year, (This will be in addition to the approximately $850 per year currently paid in real estate taxes on the land plus an additional $2,550 in additional real estate taxes for land because the property will no longer being taxed under Chapter 61, for a total of approximately $3,400.). This amount was calculated based on the value of the personal property and through an analysis of comparable renewable energy facilities in the region. Economic and Community Benefits of the Development for HP Hood &the Town of Agawam • HP Hood is a Major Employer and Taxpayer in the Town of Agawam • HP Hood is headquartered in Lynnfield, MA. The Agawam plant is Hood's only operating plant in the Commonwealth. Hood employs over 200 skilled workers at its plant, many of them Agawam residents. Hood is a substantial taxpayer in the Town. Hood has requested that the Town approve the tax plan so that it can move forward with the solar plan and remain operationally efficient for the long run. • Hood will save 15% on its utility cost for the power produced by the solar development on the former Grasso Landfill. Electrical costs are one of the top three cost categories for the plant, along with labor and dairy inputs into the production process. This agreement will also provide additional, stable tax revenue to the Town in addition to the significant utility cost savings for the Town outlined above. • Job Creation During the Six Month Construction Period o Rivermoor-Citizens estimates that fifty skilled construction position-, will be created during the construction period. We expect to have a number of construction positions for experienced Agawam residents in the construction industry. • Environmental Leadership and Health of the Agawam Community o The Town of Agawam has the opportunity to take a leadership role in caring for the environment and reducing air pollution from the use of fossil fuel (asthma,children and elderly health problems related to pollutants and particulates in the air,etc.) HP Hood will show strong corporate leadership by offsetting approximately 30%of its electrical usage through power produced by the solar array. Summary of Tax Agreement between Rivermoor-Citizens,LLC and the Town of Agawam Town of Agawam Solar Agawam City Council November 21, 2011 Project summa1y Rivennoor-Citizens,LLC is currently developing a ground-mounted, solar electric generating facility on Route 57 in Agawam, MA. The system is 1.67 megawatts (MW) in size, large enough to power approximately 200 homes annually. The discount of 15% on the electricity produced by the solar asset will be provided under a long-term agreement with the Town of Agawam. The 15% utility discount will benefit the citizens of Agawam through reduced governmental operating costs. From an environmental perspective, the solar asset will reduce the local need for harmful coal, oil, and natural gas power plants, improving local air quality and public health. Additionally, a portion of the revenues from the project will go to support Citizens Energy's charitable programs, such as the heating oil program. Since 2006, Citizens Energy has donated over 36,000 gallons of heating-oil (267 households)to Agawam residents. Projects such as this one help support these charitable programs. Applicability of the Tax Agreement The tax agreement will only be applicable to personal property taxes associated with the installation (w hich includes all of the equipment associated with the solar facility). Real estate taxes on the land will continue to be paid in addition to the tax agreement. Therefore, the tax agreement is purely additional revenue to the Town of Agawam coming from an underutilized property. Dollar amount The amount of the tax agreement is $5,000 per year(this will be in addition to the approximately $10,800 per year in real estate taxes). This amount was calculated based on the value of the personal property and through an analysis of comparable renewable energy facilities in the region. Economic and Community Benefits of the Development for the Town of Agawam • Utility Cost Savings to the Town of Agawam o Over the initial 20 years of the net metering agreement,which provides a 15%discount on the power produced by the solar asset(2.1 million kWh of annual power production) using the historical 3% annual inflation rate in electrical power rates,the 20 year savings to the Town of Agawam on its annual WMECo utility costs is estimated to be$730,900. Over a 25 year period,the savings are estimated to be$991,728. o This agreement will provide additional, stable tax revenue to the city in addition to the significant utility cost savings for the Town outlined above. • Job Creation During the Six Month Construction Period o Rivermoor-Citizens estimates that fifty skilled construction positions will be created during the construction period. As was the case with the permitting and engineering phase, in which our lead engineer is an Agawam resident, we expect to have a number of construction positions for experienced Agawam residents in the construction industry. • Environmental Leadership and Health of the Agawarn Community o The Town of Agawam has the opportunity to take a leadership role in supporting the development of renewable energy, caring for the environment and reducing air pollution from the use of fossil fuel in its community (asthma, children and elderly health problems related to pollutants and particulates in the air, etc.) Summary of Tax Agreement between Rivermoor-Citizens, LLC and the Town of Agawam Town of Agawam Solar Agawam City Council November 21, 2011 Project summa[y Rivermoor-Citizens, LLC is currently developing a ground-mounted, solar electric generating facility on Route 57 in Agawam, MA. The system is 1.67 megawatts (MW) in size, large enough to power approximately 200 homes annually. The discount of 15% on the electricity produced by the solar asset will be provided under a long-term agreement with the Town of Agawam. The 15% utility discount will benefit the citizens of Agawam through reduced governmental operating costs. From an environmental perspective, the solar asset will reduce the local need for harmful coal,oil, and natural gas power plants, improving local air quality and public health. Additionally, a portion of the revenues from the project will go to support Citizens Energy's charitable programs, such as the heating oil program. Since 2006, Citizens Energy has donated over 36,000 gallons of heating oil (267 households) to Agawam residents. Projects such as this one help support these charitable programs. Applicability of the Tax AUeement The tax agreement will only be applicable to personal property taxes associated with the installation (which includes all of the equipment associated with the solar facility). Real estate taxes on the land will continue to be paid in addition to the tax agreement. Therefore, the tax agreement is purely additional revenue to the Town of Agawam coming from an underutilized property. Dollar amount The amount of the tax agreement is $5,000 per year(this will be in addition to the approximately$10,800 per year in real estate taxes). This amount was calculated based on the value of the personal property and through an analysis of comparable renewable energy facilities in the region, Economic and Community Benefits of the Development for the Town of Ag4warn • Utility Cost Savings to the Town of Agawam o Over the initial 20 years of the net metering agreement, which provides a 15%discount on the power produced by the solar asset(2.1 mi Ilion kWh of annual power production) using the historical 3% annual inflation rate in electrical power rates, the 20 year savings to the Town of Agawam on its annual WMECo utility costs is estimated to be$730,900. Over a 25 year period, the savings are estimated to be$991,728. o This agreement will provide additional, stable tax revenue to the city in addition to the significant utility cost savings for the Town outlined above. • Job Creation During the Six Month Construction Period o Rivermoor-Citizens estimates that fifty skilled construction positions will be created during the construction period. As was the case with the permitting and engineering phase, in which our lead engineer is an Agawam resident, we expect to have a number of construction positions for experienced Agawam residents in the construction industry. • Environmental Leadership and Health of the Agawam Community o The Town of Agawam has the opportunity to take a leadership role in supporting the development of renewable energy,caring for the environment and reducing air pollution from the use of fossil fuel in its community (asthma,children and elderly health problems related to pollutants and particulates in the air, etc.) 25 Year Benefit to Agawam $2,000t000 $378,553 TOTAL 1,885,045 Town will receive over $1.5 million in ADDITIONAL taxes from these parcels $1500,F000 Town Savings on Electric BiP $1,0000j,000 Tax Agreement, Landfill $500,P000 Tax Agreement, Shoemaker S27.117 Real Estate Tax,, Landfill Real Estate Tax, Shoemaker $0 M" Without Solar With Solar *Assumes town will ask to extend contract in years 21-25 Other Tax Agreements APCIOS-001� AnOGSTOOK MW NE Mars Hil PGCATACU13 Mars Hill Wind N Lowell, VT $3.88/MWh Kingdom Community Wind SOmIRSET F $2.59/MWh N RSCA-AQUIS S zENOESCUT WA�HIHGTQN ISLE FR4141111 ORUE4,1 N ESSEX coos L"3ILLZ D-FORD �ANCOCK Ili TCN- �ED�r N k wALno DIN KE NINEEIEC' ASHVGTO mTORI H7 DESEF]I 15L., e--\ NDPO -,ScCGI71IN L NCOM alWntl TIPANGF R4F nh 1101G9 Florida, MA .Hancock, MA Berkshire Wind ULU Hoosac Wind $4.33/MWh $3.11/MWh WIN A 2--- 1 Agawam Projects: HILLSBORO ROCKINK44 C'HESHIH 1755EX Agawam, MA Mushy's Landfill H.0 SHIRE WORCESTER �LIDDUE55E, I BERK i— —SUFFOLK SHINE -FJORFOLK $3.76/MWh PON —11 PNDHAM PDRO"I rty- Agawam, MA TOL. E N& rAOUTH Holyoke, MA TFO;O L0DI �ZNI TOL EPW 'T*LE, Shoemaker Lane Holyoke Solar .1 EW LONDD� $2.50/MWh DI NEWPORT $4-OO/MWh BRISTOL RAMUCrET 0 AMiled Nuim f GMXR*V4W4 kX TO: Members of the Agawam City Council FROM: Jeffrey S.Ciuffrecla, President,Affiliated Chambers of Commerce of Greater Springfield DATE: November 21, 2011 SUBJECT: Tax agreements for proposed solar powered structures in Agawam I regret that due to a conflict in my schedule, I am unable to be present at this evening's meeting but I wanted to express my support for the two proposed solar powered projects,-one at 9:12 Shoemaker Lane and the other at 365 Main Street that are subject to a hearing. These are two exciting projects with multiple benefits to multiple parties. It is not often a statement like that can be made! Recently changes to our environmental laws and those regulations our electric industry operates under have been made. Efforts have been increased to reduce our dependence on electricity from fossil fuels and the industry itself is under mandates to have certain percentages of their electric portfolio made up of various sourced power.Therefore,these projects would not only be environmentally friendly, but would be welcomed by our regions electric companies. Other beneficiaries of these projects are local businesses,some members of this Chamber, some benefitting more directly than others.In this very competitive climate our businesses are in,competing with not only businesses in our area but also nationally and internationally,any opportunity to ensure their competitiveness must be taken.These agreements are such an opportunity. Lastly,the town itself will benefit from a stable source of property tax as both entities are willing to enter into a long term agreement with the town,ensuring that the amount of taxation is agreed upon and will be paid according to a schedule. As stated above,these projects have multiple benefits for multiple parties.I sincerely ask that you give both agreements before you this evening,an affirmative vote.I thank you in advance for your consideration of this memo. Sincerely, 1441 Main Street,Springfield, MA 01103 Tel:413-755-1312 Fax: 413-755-1352 Town of Agawam Town of East Longmeadow FY2012 Regional Community Development Program Application Purpose of the Public Hearing • Public discussion of the application • Council's vote of support by passing the proposed resolution authorizing the application by the Mayor's Office Grant Program Background • Community Development Block Grant (CDBG) program, funded by US Department of Housing & Urban Development o Projects generally serve low-to moderate-income beneficiaries or eliminate 'blight' • Administered for communities of below—50,000 population by the Massachusetts Department of Housing and Community Development as the Community Development Fund • Competitive grant program with 18 month performance period Application Basics • Regional CDF application. Agawam (Lead Community) & East Longmeadow • Up to $900,000 in total funds requested: 50/50 split between towns • Application due date: December 16, 2011 • Potential award date: June/July, 2012 Proposed Proiects Summa • Regional Housing Rehabilitation (HR) program (appx. 14-16 homes): appx. $448,000 • Regional Housing Authority improvements project (electrical and windows in Agawam, doors and entry ramp in E. Longmeadow): appx. $119,000 • Regional ADA Self-evaluation and Transition Plan project (planning for improved access to Town services and facilities for disabled persons): $97,000 • Springfield Street sidewalk improvements (Agawam, design-engineering): $61,000 • Senior Center emergency generator (E. Longmeadow, construction): appx. $80,000 • (Grant Administration: $90,000) o Total apelication: appx. $895,000 o Final cost estimates still pending on Housing Authority, HR and Sr. Center projects Public Involvement Process • Community Development Advisory Committees provide guidance in both towns (public meetings September through November, & ongoing) • Advertised public meetings to discuss Community Development Strategies (October) • Project-specific public meetings and outreach (October through November) • Media coverage and advertisements • Advertised public hearing today (November 21) Westmass Westmess Area Development Corpomtion November 14, 2011 Ms. Barbara Bard City Council Administrative Assistant Agawam Town Hall 36 Main St Agawam, MA 01001 Re: Rivermoor-Citizens Energy, LLC Solar Project, Shoemaker Lane Dear Ms. Bard: The Westmass Area Development Corporation (Westmass) is supportive of the development of Green Energy and the proposed Solar Farm on Shoemaker Lane within the Agawam Regional Industrial Park (ARIP). Westmass believes that the parcel's existing characteristics, namely its irregular shape, physical and visual separation from other developments in the ARIP, difficult access and wetlands along Shoemaker Lane have presented challenges to businesses and developers interested in typical commercial and industrial development. These conditions have resulted in a lack of demand for the site over the last decade or more. Rive rmoor-Citizens Energy, LLC has proposed a project for the site that can work with the site's challenges. The fact that this project is consistent with the Commonwealth's efforts to generate an increasing amount of energy from renewable sources and Agawam's desire to control the town's energy costs over the long term will make this an important part of your community for years to come. Rivermoor-Citizens's project has helped retain engineering and site planning/permitting jobs and will provide construction jobs starting in the spring of 2012 with the installation of the equipment. The Rivermoor-Citizens project creates an opportunity for Agawam to be actively engaged in renewable energy development and will provide Agawam with significant savings on its municipal electric costs. It is for these reasons that Westmass reaffirms its support for the Rivermoor-Citizens Energy Solar Project. Please contact me if you have any project related questions. Thank you. Sincerel 'e 4 4 4= . 4Ke eth W, Delude --- President/CEO > 255 Padgette Street-Chicopee,Massachusens 01022-1308-(413)593-6421-www,westmassdevelopment.com Affiliated with the Economic Development council of Westem Mmachusetts,inc. Cr 1W Page I of I barbara bard From: Stevens, David [David.Stevens@hphood.com] Sent: Monday, November 14, 2011 7:14 AM To: barbara bard Subject: Barbara Bard, Town of Agawam for the November 15 City Council Finance Meeting Good Morning Barbara, My name is Dave Stevens and I am the Senior Director of Operations for HP Hood LLC responsible for the Agawam site located on Main Street in Agawam. I am sending you this correspondence to let you and the Town of Agawam know that HIP Hood is highly interested in having the 1.7 Megawatt solar development occur on the former Grasso Landfill, which is currently operating as Mushy's Driving Range. HP Hood anticipates saving approximately 15% on its electrical power bills for the energy produced by the solar array and that this cost savings is important to the ongoing successful operation of the Agawam plant. Thank you for your time, Respectfully, Dave Stevens Senior Director of Operations HP Hood LLC 11/14/2011 Page I of I barbara bard From: Don [don@ messag eon hold ne,com] Sent: Tuesd ay, N ove mbe r 22, 2011 11:10 P M To: barbara bard Subject: Vote regarding Solar Barb; We need to take another vote regarding the amended version presented us at last evenings meeting. This was not done and brought to my attention by Dennis. It is my policy not to act on anything handed to us the night we are voting on a given subject. That information should have been provided to us in our packets. We will vote the proper motion at our December 5th meeting so use the same docket number.and the time frame shouldn't be a problem for them. Had they given me the courtesy and explained the situation the outcome may have been handled differently. I don't have the time a few minutes before running the meeting to read and digest several pieces of paper presented at that late hour. You'll need to contact them as to the situation. Call me with any concerns and I'll try and stop in. Also, would you call the appropriate State Bureau and check on 6e required vote needed. I have a gut feeling it's 8. Sue in W>S might be able to help you on this. You might want to do this first because it would present a whole different senario. Thanks, Don 11/23/2011 November 18, 2011 Dear Agawam City Council: My property abuts the solar panel project on Shoemaker Lane. My experience to date with John Tourtelotte of Rivermoor Energy and Brian Morrissey of Citizen's Energy has been a positive one. They have taken the time to talk with me on the many concerns I have had about the project. Their approach has been to view this as if they had to live here. I believe they have accomplished that with the changes they made from the suggestions and the concerns both the neighbors and the planning board have had. As the project moves forward, I believe they will be available to the neighborhood to make this a positive experience for all concerned. Sincerely, Gary Guidetti 68 Cesan Street Feeding Hills, MA 01030 Page I of I barbara bard From: John Robertson grobertson@mma.org] Sent: Monday, November 28, 2011 9:43 AM To: barbara bard Subject: Re: Agawam City Council Hi Barbara, I am sorry to be delayed in responding to your question about voting on a tax agreement. The section of property tax law authorizing the agreement should state the vote needed to approve it and would specify two-thirds if that is the requirement. What section and chapter number are referenced in the agenda item. We cannot provide the City with legal advice. Has the City's counsel provided advice on the vote? Thanks. --John From: "barbara bard" <BBard@agawam.ma.us> To: 1robertson@rnma-org" <jrobertson@mma.org> Sent: Wednesday, November 23, 2011 11:46:09 AM Subject: Agawam City Council Hi Mr. R6bertson, The Agawam City Council has an item of Agenda in front of it regarding entering a tax agreement with a certain company for a solar development project. How many votes are required to enter into a tax agreement? Would it be a majority of those present and voting or 2/3 majority or 8 votes? Please inform. Thank you. Barbara A. Bard Administrative Assistant to the City Council 36 Main Street Agawam, MA. 01001 (413) 786-0400 x233 (413) 786-9927 fax bbard@agawam.ma.us Confidentiality statement This Town of Agawam electronic message along with any corresponding attachments may contain privileged or confidential information. This information is for the use of the iniended recipient(s)only.Any disclosure.copying,distribution,or use of the contents of this message in any manner is strictly prohibited by anyone other than the intended recipient(s).If you have received this email in error.nofify the sender immediately by email and delete all copies from your network. 11/28/2011 masscbi Massachusetts Chamber of Business &Indus" November 18, 2011 Agawam City Council Members, The Massachusetts Chamber of Business & Industry would like to applaud the interest of Agawam's City Council in the Rivermoor-Citizens, LLC. solar power plant proposal. Approval of this facility upholds the Commonwealth's pledge to developing its Renewable Energy Portfolio Standard program and helps Massachusetts lead the way nationally for state-level diversification of its energy resources. This solar power plant will also assist the Commonwealth in meeting the annual goals established in the Alternative Energy Portfolio Standard enacted by Governor Deval Patrick in 2009. In addition to the environmentally conscious thinking that Agawam's City Council displays, the decision to approve this project also reflects the town's commitment to creating a business friendly environment. The significant savings that solar power will offer HP Hood will go a long way in ensuring existing business will remain in Agawam, while simultaneously showing why Agawam is a great place to do business in. MassCBI looks forward to hearing more about Agawam's progressive leadership in Western Massachusetts. If we may be of any service to you in your future endeavors, please feel free to contact us directly. Sincerely, Debra Boronski, President Massachusetts Chamber of Business & Industry 143 Shaker Road, P.O. Box 414 East Longmeadow, MA 01028 (413)426-3850 (617)512-9667 president@masscbi.com www.masscbi,com NrlWest of the River Chamber C Agawam West Springfield November 18, 2011 Agawam City Council Members, West of the River Chamber of Commerce (WRC) would like to express its support for the proposed solar power plant put forth by Rivermoor-Citizens, LLC. This project is poised to help reduce Agawam's operating expenses, increase tax revenue for the town while creating jobs and showing the town's commitment to renewable energy resources. It is WRC's understanding based on the projections made by Rivermoor-Citizens, that the project on Shoemaker Lane will provide the town of Agawam with: • an additional $15,800 in annual tax collection, • create 50 construction jobs in 2012 in addition to the support staff that will be retained to manage the plant once completed, and • reduce the town's electrical bill by 15%, saving Agawam an additional $41,500 annually, $830,000 over 20 years. Rivermoor-Citizens' proposed plant would also help reduce energy costs for HP Hood. Approval of this project will help keep HP Hood competitive and show Agawam's dedication to fostering the town's business friendly environment. This solar power plant will also assist the Commonwealth of Massachusetts in meeting the goals established in the Alternative Energy Portfolio Standard for incorporating renewable energy resources, enacted by Governor Deval Patrick. For the reasons outlined above, West of the River Chamber of Commerce supports Rive rm oor-C itizens' proposal and respectfully requests that Agawam's City Council votes on this measure at the November 2 1" meeting, without further delay. Postponement of a vote jeopardizes Federal funding for this project, which would reduce the positive economic impact this development would otherwise have. We thank you for the opportunity to speak on behalf of the Agawam business community. Respectfully, Board of Directors, West of the River Chamber of Commerce PO BOX 48;West�Sprin,g field,M.�0 1090-0048., Inf60( P hoh6�':4111426938801�-FAX-888- V TO: Agawam City Council FROM: Mayor Richard A. Cohen C�2? -0 DATE: November 3, 2011 SUBJECT: Tax Agreements with Rivermoor-Citizens, LLC P C- Enclosed please find two resolutions for New Business for the Council's November 9, 2011 meeting. The resolutions concern proposed Tax Agreements with Rivermoor- Citizens, LLC for the construction of two solar powered structures facilities in Agawam. The proposed location for one facility is 912 Shoemaker Lane, on a 13-acre parcel of vacant land owned by Westmass Area Development Corp. The proposed facility, when constructed, will provide power to the Town of Agawam at a 15% discounted fate. This will save the town approximately $40,000 on average per year of the agreement. The excess power generated will be returned to the electricity grid for sale by Rivermoor- Citizens, LLC. The proposed location for the other facility is 365 Main Street, on a 20.75-acre parcel of land owned by Mushy's Golf Center, LLC. The proposed facility, when constructed, will provide power to HP Hood Inc located at 233 Main Street at a discounted rate, with the excess power generated returned to the electricity grid for sale by Rivermoor-Citizens, LLC. This savings will help keep people employed in difficult times and help to reduce HP Hood's costs. Further documentation regarding the specifies of each proposed facility will be provided prior to the November 21, 2011 Council Meeting.