Windfall

Taxing districts to split payments from KCPL

Photos

Mark Reagan

The Spearville wind farm is seen in this photo taken Monday. The Ford County Commission has accepted a document from Kansas City Power and Light detailing a payment in lieu of taxes agreement, of PILOT, for the second phase of the wind farm.

  

Yellow Pages

By Eric Swanson
Posted Sep 21, 2010 @ 11:00 AM
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Ford County and five other taxing districts will split more than $200,000 a year in payments from Kansas City Power and Light, which is developing the second phase of the Spearville wind farm.
    On Monday, The Ford County Commission accepted the distribution schedule for a payment in lieu of taxes agreement, or PILOT, with KCPL. The commission approved the agreement with KCPL last month, but the distribution schedule had not been finalized at that time.
    Under the agreement, KCPL will pay $274,636 in lieu of taxes to the six taxing districts, plus a fund for community projects, in 2011. The amount of the payment will rise by 2.5 percent each year over 30 years, ending with a $562,017 payment in 2040.
    The lion's share of the money will be divided among the county, Dodge City Community College, Spearville Township, the Spearville Hospital District, the rural fire district and Pawnee Watershed District. A portion of each payment will be earmarked for community projects, which will be selected by the commission.
    The Spearville school district will also receive a payment in lieu of taxes, but it was not included in the distribution schedule because the district has a separate gift agreement with KCPL.
    The school district will receive $121,974 from KCPL in 2011, and the amount will increase each year for 30 years, said Spearville Superintendent Daryl Stegman.
    "I think it's a good deal for our school district and our community," he said in a phone interview Monday afternoon.
    Ford County Commission Chairman Kim Goodnight hailed the agreement as a boon for the county — especially the money reserved for community projects.
    "This allows flexibility of the county commission to pick and choose projects, whether it be Bucklin, Ford or Spearville, on ways to improve the community," he said. "And it's not just limited to that. Certainly, Dodge City is part of that community also."
    Commissioner John Swayze added: "It's a pretty darn good deal."
    A KCPL spokeswoman declined to comment on the details of the PILOT agreement.
    The wind energy company enXco, which is developing the Spearville wind farm with KCPL, received a conditional use permit for the second and third phases of the project in April 2009. But enXco has encountered some difficulties since then that forced the company to postpone construction of the second phase.
    Earlier this year, enXco sought and received a permit extension which gave the company until April 2011 to begin the second phase. EnXco will supervise construction of the second phase, then turn the completed project over to KCPL.
    The transfer applies only to the second phase, not the third phase.
    
 

Ford County and five other taxing districts will split more than $200,000 a year in payments from Kansas City Power and Light, which is developing the second phase of the Spearville wind farm.
    On Monday, The Ford County Commission accepted the distribution schedule for a payment in lieu of taxes agreement, or PILOT, with KCPL. The commission approved the agreement with KCPL last month, but the distribution schedule had not been finalized at that time.
    Under the agreement, KCPL will pay $274,636 in lieu of taxes to the six taxing districts, plus a fund for community projects, in 2011. The amount of the payment will rise by 2.5 percent each year over 30 years, ending with a $562,017 payment in 2040.
    The lion's share of the money will be divided among the county, Dodge City Community College, Spearville Township, the Spearville Hospital District, the rural fire district and Pawnee Watershed District. A portion of each payment will be earmarked for community projects, which will be selected by the commission.
    The Spearville school district will also receive a payment in lieu of taxes, but it was not included in the distribution schedule because the district has a separate gift agreement with KCPL.
    The school district will receive $121,974 from KCPL in 2011, and the amount will increase each year for 30 years, said Spearville Superintendent Daryl Stegman.
    "I think it's a good deal for our school district and our community," he said in a phone interview Monday afternoon.
    Ford County Commission Chairman Kim Goodnight hailed the agreement as a boon for the county — especially the money reserved for community projects.
    "This allows flexibility of the county commission to pick and choose projects, whether it be Bucklin, Ford or Spearville, on ways to improve the community," he said. "And it's not just limited to that. Certainly, Dodge City is part of that community also."
    Commissioner John Swayze added: "It's a pretty darn good deal."
    A KCPL spokeswoman declined to comment on the details of the PILOT agreement.
    The wind energy company enXco, which is developing the Spearville wind farm with KCPL, received a conditional use permit for the second and third phases of the project in April 2009. But enXco has encountered some difficulties since then that forced the company to postpone construction of the second phase.
    Earlier this year, enXco sought and received a permit extension which gave the company until April 2011 to begin the second phase. EnXco will supervise construction of the second phase, then turn the completed project over to KCPL.
    The transfer applies only to the second phase, not the third phase.
    
 

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