County agrees to delay in tax abatement

A wind farm tax abatement was pushed back for a one-year period when Donley County Commissioners met Monday, March 9.

County Judge John Howard said the abatement agreement with Cielo Land & Cattle remains unchanged except for the start date. Cielo’s project construction schedule has shifted one year to accommodate the extension of the federal production tax credit and to secure appropriate financing.

“The project is moving forward,” Howard said. “They plan to begin construction next spring and complete it by the end of 2016. Production [of electricity] would start in 2017, and the tax abatement will start that year for ten years.”

In November 2013, Donley County officials approved granting Cielo a ten-year, 100 percent abatement from ad valorem taxes, but the agreement also sets up payments to the county in lieu of taxes during the period of the agreement.

At that time, Cielo agreed to pay the county $2,000 per megawatt of electric generating capacity up to a maximum of $200,000 per year. The agreement also stipulates that Cielo will develop a minimum of 80 megawatts of capacity in Donley County, which would result in no less than $160,000 in income for the county annually for ten years.

In other county business, the commissioners’ court took no action on a request to use the Courthouse lawn for a proposed Wind, Water, & Wildlife Festival on April 20-22. Howard said Judy Burlin, who had requested the item on the agenda, did not appear at Monday’s meeting.

Commissioners also discussed the possible sale of the old appraisal district building on Sully Street across from the Courthouse.

The county will advertise the building to take sealed bids on the property in the near future with the intention of opening bids at the commissioners’ next regular meeting.