Red Hook board discusses Champlain Hudson Power Express valuation and 'host community' pilot options
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Summary
Town officials reviewed the state valuation on the Champlain Hudson Power Express underwater cable, discussed the developer's valuation challenge and the option of a pilot or host-community agreement to secure predictable payments, and asked staff to model fiscal outcomes for comparison.
The Town Board spent time reviewing the Champlain Hudson Power Express (CHPE) assessment that placed about $12.5 million of the project's value on the town rolls for the current tax year and discussed possible responses.
Supervisor explained that New York State sets the special-franchise valuation for the cable and that developers have challenged the assessment (arguing lower valuation due to the project's incompleteness and concept of obsolescence). Board members asked whether the town should pursue a pilot or host-community agreement (contractual payments and community benefits) rather than rely on the annual assessed value, noting differences in risk (contractual remedies for a pilot vs. tax remedies for an assessment). The board requested staff produce comparative models showing likely revenue under: (a) no agreement (retain whatever the tax roll yields), (b) a 30-year pilot with level payments, and (c) an upfront payment or front-loaded schedule, and to show school-district impacts (which would be larger than the town's share). No final decision was made.
