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Commissioners continue review of tax abatements for Blue Heron and two solar projects after UXO, depreciation questions
Summary
Mills County commissioners heard a presentation on proposed tax abatements for Blue Heron, Red River Solar and Clean Energy Solar, reviewed depreciation schedules and projected revenue impacts, and were told unexploded ordnance on the site must be removed before construction can begin. The court scheduled further review on Dec. 15 and a possible vote Dec. 29.
Mills County commissioners spent a substantial portion of their meeting Dec. 8 discussing proposed tax abatements for several utility-scale solar projects, including Blue Heron, Red River Solar and Clean Energy Solar.
Jeff (Richard) Allen, who presented the abatement figures, said the depreciation schedule used in the county’s analysis is consistent with appraisals by Pritchard and Abbott and with work he has done in other counties. Allen said the figures are intended to anticipate how the projects’ appraised values may change over the next decade and that the model used a 20% floor in later years. He confirmed the county’s estimated revenue without abatements at roughly $8,700,000 and the suggested pilot scenario at about $6,900,000.
Commissioners questioned whether the depreciation applies to physical assets or production-side income; Allen said he believed the depreciation reflected the physical asset side and offered to get written confirmation from the appraisers and to meet with commissioners in person next Monday to review the abatement agreement line by line.
Commissioner Williams reported field observations at the project site: heavy equipment and multiple trucks, a contracted sawmill hauling mesquite to Abilene, and discovery of seven unexploded ordnance items that must be removed before construction can begin. Project representative Bill Pentac told the court construction cannot start until the UXO is cleared and that access and clearing are controlled until release by the appropriate government agencies.
The judge said the board will continue discussion at the Dec. 15 commissioners court and that a final vote on the abatement is set for Dec. 29. Allen agreed to provide more detailed appraisal methodology and to attend an in-person open meeting to walk through the abatement agreement.
