Delaware County examines solar projects and potential economic development agreements

The Delaware County Commissioners meeting on April 21, 2025, focused on the implications of solar energy developments and their impact on local taxation and economic growth. A key discussion point was the assertion that Delaware County does not face an electricity shortage, which has attracted interest from various companies looking to establish solar projects in the area.

Commissioner discussions highlighted concerns regarding the potential sale of solar projects to real estate investment trusts (REITs) or utility companies, which could lead to tax-exempt status and reduced revenue for the county. The current structure of business personal property taxes was also a significant topic, with an increase from $80,000 to $2 million projected over the next two years. This change raises questions about the long-term financial benefits of solar developments, as the depreciation of assets could lead to diminished assessed values.

The commissioners noted that the removal of a 30% floor on business personal property tax would further complicate the financial landscape for solar projects. They emphasized the need for economic development agreements to ensure that these projects contribute meaningfully to the county's tax base.

Discussions also included the complexities surrounding property tax responsibilities for solar developments. The assessed value of farmland in Delaware County is significantly lower than its market value, and there is uncertainty about who will ultimately bear the property tax burden for solar projects. Some companies indicated that this aspect remains undefined, raising concerns for landowners involved in contracts.

The meeting concluded with plans for further discussions with the Hawthorne project, which is currently the only solar project with an economic development agreement in progress. The commissioners expressed the importance of these agreements in securing financial benefits for Delaware County moving forward.