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Supervisors raise fee-in-lieu threshold on Tunica solar project from $60M to $100M
Summary
The board approved an amendment to the fee-in-lieu (FIL) agreement for a proposed solar project, updating the FIL threshold from $60 million to $100 million so the FIL and tax-abatement provisions align with state guidance and the developer's expected project size.
The Tunica County Board of Supervisors approved revisions to a fee-in-lieu agreement connected with a proposed large-scale solar project, raising the capital-improvement threshold in the FIL from $60 million to $100 million so the FIL and the county's tax-abatement language track state guidance.
County attorney and development counsel said the change aligns the FIL agreement with the tax-abatement statute so both instruments operate together for projects at or above the $100 million threshold. "The fee-in-lieu kicks in at $60 million and the tax abatement kicks in only at $100 million," attorney Riles told the board; the revision makes clear that the two agreements will be paired for this project because the developer expects the project will exceed $100 million in capital investment.
The board heard that the FIL agreement before it is a legal-technical correction to reflect current statutory thresholds and recommendations from the Mississippi Development Authority. Riles and the county attorney said the FIL agreement in question would expire after 10 years, and that tax-abatement provisions provide an initial 10-year exemption with a potential additional 10-year exemption for qualifying expansions.
Board members discussed revenue implications and statewide competition for renewable projects. Counsel said projects of this size generally generate more local tax base than smaller projects and that developers often seek larger single-site projects to secure interconnection agreements with grid operators.
Supervisors approved the amendment by motion and vote. The board previously approved related tax-abatement agreements; the current action makes the FIL language consistent with how state statute and the NDA counsel recommended treating projects expected to be $100 million or greater.
Ending: The board adopted the FIL threshold change and requested no further immediate changes; the county will monitor project development and tax-exemption terms as the project advances.
