REQUEST FOR LEGISLATIVE ACTION
Description (e.g., Contract Authorization for Information Services):
title
REQUESTING AUTHORIZATION TO ENTER INTO A PILOT AGREEMENT WITH RESERVOIR ROAD SOLAR, LLC
body
Date: 2/19/2025
Department: Real Property
Attending Meeting: Michael McGuire
Submitted By: Michael McGuire
Title: Director
Phone: 518-487-5292
Purpose of Request: Other (State if not Listed) Solar PILOT agreement
CONTRACT TERMS/CONDITIONS:
Party Names and Addresses:
Reservoir Road Solar, LLC
55 Technology Dr, Ste 102
Lowell, MA 01851
Term: (Start/end date or duration) 01/01/2027
Amount/Raise Schedule/Fee: Fiscal Year Payment to County Year 1 $ 5,000.00 Year 2 $ 5,100.00 Year 3 $ 5,202.00 Year 4 $ 5,306.04 Year 5 $ 5,412.16 Year 6 $ 5,520.40 Year 7 $ 5,630.81 Year 8 $ 5,743.42 Year 9 $ 5,858.29 Year 10 $ 5,975.46 Year 11 $ 6,094.97 Year 12 $ 6,216.87 Year 13 $ 6,341.20 Year 14 $ 6,468.03 Year 15 $ 6,597.39
BUDGET INFORMATION:
Is there a Fiscal Impact: Yes ☒ No ☐
Anticipated in Budget: Yes ☐ No ☒
Spreadsheet attached: Yes ☐ No ☐
Source of Funding - (Percentages)
Federal: Enter text. County: Enter text.
State: Enter text. Local: Enter text.
County Budget Accounts:
Revenue Account and Line: A1310 01081 - Other Payments In-Lieu of Taxes
Revenue Amount: $5,000 a year with annual 2% escalator for 15 years
Appropriation Account and Line: Enter text.
Appropriation Amount: Enter text.
ADDITIONAL INFORMATION:
Mandated Program/Service: Yes ☒ No ☐
If Mandated, Cite Authority: Albany County Legislature Resolution 21-192
Request for Bids / Proposals:
Competitive Bidding Exempt: Yes ☒ No ☐
# of Response(s): Enter text.
# of MWBE: Enter text.
# of Veteran Business: Enter text.
Bond Resolution No.: Enter text.
Apprenticeship Program Yes ☐ No ☒
Previous requests for Identical or Similar Action:
Resolution/Law Number and Date: Resolution 24-366 and 24-367
DESCRIPTION OF REQUEST: (state briefly why legislative action is requested)
The Real Property Tax Service Agency respectfully requests authorization to enter into a Payment in Lieu of Taxes (PILOT) agreement with Reservoir Road Solar, LLC. Reservoir Road Solar, LLC is proposing to develop one 5 Megawatt AC solar energy system on a parcel of land located within the Town of Knox East of NYS Route 156 (Tax Map #47.-1-27).
Real Property Tax Law (RPTL) § 487 exempts the value of a solar energy system from local property taxes. Under the law, any increase in the property value attributable to the addition of the solar energy system is exempt from property taxes for fifteen years. Pursuant to §487, a taxing jurisdiction can require a solar developer to pay an annual fee or “payment in lieu of taxes” as a replacement for the taxes it would have otherwise collected. Under the law, PILOT amounts cannot exceed what the tax amount would have been without the §487 exemption.
The developer proposed an annual PILOT payment of $1,000 per Megawatt AC of Capacity with a two percent annual escalator. This amount falls within the NYSERDA PILOT rate guidance for National Grid territory. Based on the size of this project the first year PILOT payment will be $5,000.00. The 15-year term shall commence on January 1st of the year immediately following completion of construction, or the date when the Project is recognized as exemption from taxation on the municipal assessment roll, which will result in an initial PILOT payment in January of 2027.