Developers outline Fleming County solar project as officials weigh participation in tax-exempt bond process

At the Fleming County Fiscal Court meeting on Jan. 12, 2021, representatives of AEUG Fleming Solar LLC presented details of a proposed solar energy project and asked the court to consider participation that would allow federal, state and local tax-exempt status for Industrial Revenue Bonds (IRBs).

The developers — Adam Stratton (Director of Solar Development), Mark S. Franklin (bond counsel) and Thomas M. Todd (local landowners' legal counsel) — described the project scope and fielded questions from magistrates and several leaseholders and citizens. Questions focused on how the project site was selected, whether equipment would be purchased from international suppliers, the status of any power purchase agreement, the application's status with the Kentucky State Board on Electric Generation and Transmission, and what environmental and geotechnical work (including sinkhole risk) had been done.

Treasurer Kathy Dryden and other court members pressed for details about construction bonds, expected construction costs, and whether EKP transmission-line upgrades would be required. Several leaseholders and citizens told the court they saw potential economic benefits for Fleming County, including construction jobs and increased local business sales; others raised concerns about long-term guarantees of lease payments and the local tax consequences if property used for the project is reassessed from farmland to commercial status.

Stratton told the court that if the Fiscal Court declined to participate in the IRB/tax-exemption process, "a reconsideration of the project's costs would be conducted that could potentially slow down the process or cease due to the loss of federal, state and local tax exemption status." Assistant County Attorney Nathan Tomlin said the Fiscal Court must have the opportunity to review drafted documents before any approval to participate would be considered.

Franklin, Todd and Stratton agreed to send the drafted project documents to the Fiscal Court and to the County Attorney's office for review, and to submit information required to the Fleming County PVA office for property valuation reassessment. No formal vote or commitment to participate in the IRB process was recorded during the meeting; court members voted unanimously on separate routine agenda items later in the session.

What happens next: court attorneys and staff will review the documents once provided, and the Fiscal Court can consider any inducement resolution, memorandum of agreement, local ordinance or pilot agreement only after reviewing finalized paperwork and legal advice.