Oswego County Legislature OKs Tax Pact For FitzPatrick Plant

by Steve Yablonski | April 14, 2016 11:51 pm

OSWEGO – The Oswego County Legislature voted Thursday (April 14) to approve a tax agreement, ending several years of litigation over assessment of the James A. FitzPatrick Nuclear Power Plant in Scriba.

There were two public hearing on the local law and ensuing tax deal. However, no one spoke at either.

The local law allows the county to enter into a proposed five-year tax agreement with Entergy for the FitzPatrick plant. It takes effect Jan. 1, 2017 and expires at 11:59 p.m. on Dec. 31, 2021.

“Under this agreement, of the funds available, the county will receive 30.5%, the town of Scriba 4% and the Mexico school district will receive 65.5%,” Legislator Jack Proud said.

There are several important point to remember about the deal, the long-time Mexico legislator said.

“This is a five-year financial plan, outline that we can deal with. Secondly, it does away with the tax certiorari lawsuit which Entergy brought against the town of Scriba in 2011, challenging the tax assessment of the FitzPatrick plant for 2010 through 2015. Perhaps we would have had to make refunds to Entergy for back taxes,” he explained. “It basically clears the decks so we can go ahead and deal with the future of the FitzPatrick site.”

The proposed agreement prevents another challenge to the current assessment, Kevin Gardner, chair of the legislature, said Thursday night.

Under the agreement, the town will receive $1,100,000. The county’s share will be $8,387,500. And over the life of the deal, the school district will get $18,012,500.

It’s nice to have an agreement, Gardner said following the meeting, adding that he wishes there was a way they could keep the plant open.

“Unfortunately I don’t think that is possible,” he said. “But it is an agreement. We need to move on; we need to settle this on both sides and then move on.”

There are a lot of things going on in hopes of keeping the plant open and preserving the hundreds of jobs, he said.

“But it’s all up to the company. If they want to negioate or talk to us, we’re there. We are willing to listen. Maybe if they tell us what they want, maybe we could work with them. But, I think it’s above the county.”

The chairman thanked the county officials that work on preparing the agreement.

The Mexico Board of Education and the Scriba Town Board also need to approve resolutions authorizing the agreement.

Highlights of the Agreement:

–  The town of Scriba, Oswego County, and Mexico School District will NOT have to pay any refunds to Entergy for the years the company claimed they were over-assessed.

–  If FitzPatrick closes and begins decommissioning on schedule in 2017, the tax jurisdictions will be paid $27.5 million in declining tax payments by the company over five years.

–  If the FitzPatrick plant continues to operate and generate electricity, the tax jurisdictions will be paid $12 million per year for five years.  This is $2.8 million per year more than the 10-year tax agreement that expired in 2010. As an inducement to remain open, this payment is less than what Entergy would pay if the plant remained on the tax roll as an operating plant.

–  If the FitzPatrick plant is sold to another generator, the tax agreement is voided.

Source URL: https://oswegocountytoday.com/news/oswego/oswego-county-legislature-oks-tax-pact-for-fitzpatrick-plant/

---