The Economic Development Growth Engine for Memphis & Shelby County (EDGE) is holding a board meeting during which the board will consider approving a PILOT tax agreement with Houston-based Plains and Eastern Clean Line LLC.
Plains & Eastern Clean Line (photo – plainsandeasterncleanline.com)
Clean Line is considering setting up a $259 million renewable energy converter station near Millington in Shelby County,Tennessee, or at an alternate site in Tipton County.
The converter station will be at one end of a 700 mile, 600 kilovolt direct current electric transmission line.
The line will bring renewable power from the Panhandle of Oklahoma all the way to the converter station in Tennessee, which will convert the DC power to AC and tie it into the Tennessee Valley Authority network.
If it gets all the approvals, construction will start on the project in 2016 and is expected to be completed in two years.
Once the converter station is built and the entire project is operational, the facility will deliver more than 3,500 megawatts of renewable energy to the mid-South and southeastern United States via the TVA network.
According to the company, the whole project is estimated to create more than 5,000 construction jobs and over 500 permanent jobs maintaining the transmission line.
The converter station project in Shelby County will create 16 jobs at average annual wages of $56,875. The project will also support the creation of another 24 indirect jobs, adding up to a total of 40 jobs.
The company will invest $9.6 million on transmission lines, in addition to $1.248 million for acquiring 208 acres of land for the converter station, and another $10 million to build the 30,000-square-foot facility. The remaining $239 million is for the converter equipment at the facility.
The company is asking for an 11-year PILOT (payment in lieu of taxes) agreement that amounts to a tax abatement of 41 percent on all of the above, including the transmission lines, facility and the equipment.
The project will still generate $36.22 million in new tax revenue for Shelby County over the 11-year period at $3.19 million per year. After that, the county will get the full $5.4 million in annual taxes from the project.
The EDGE board meeting to consider the PILOT agreement with Plains and Eastern Clean Line is scheduled to be held on Feb 19, 2014.
via:http://www.economicdevelopmenthq.com/blog/clean-line-tax-incentives-memphis-tn/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+economicdevelopmenthq+%28Economic+Development+Blog%29
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