Nodaway commission mulls cut-rate tax zone for wind farm developers

Decision time is nearing for the Nodaway County Commission, which must move forward this month with creation of an Enhanced Enterprise Zone for a number of proposed private-sector wind energy development projects or risk losing those projects to adjoining states and nearby counties offering a better deal.

The commission met last week with superintendents from six of the county's seven school districts to discuss the possible impact of a so-called EEZ on property tax revenues, the primary funding source for public schools.

Vickie Miller, superintendent of Maryville's R-II School District, said the consensus among educators attending the meeting tended toward support of an EEZ, even though such a district would reduce potential property tax revenues that might be derived from additional wind farms.
The commission also met with state Sen. Brad Lager, who said he believed that "renewable (energy) is the right way to go," but expressed concerns about the viability of wind power, which receives significant subsidies from the federal government.

"If the federal government ever gets rid of those subsidies they're going to shut those windmills off," said Lager, whose district includes Nodaway County.

Lager also claimed that, even with federal dollars, wind energy is about twice as expensive as electricity generated by burning coal. Significant reliance on wind power could ultimately raise energy costs for consumers, he said, noting that Missouri currently has the fourth-lowest utility rates in the United States.

Nodaway County now has two wind farms embracing a total of 24 wind turbines. There are 18 turbines in the Jefferson C-123 School District near Conception Junction and six turbines in the South Nodaway R-IV District near Graham. South Nodaway did not have a representative at last week's commission session.

Both the county's wind farms are owned by Wind Capital Group, which pays full taxes on their leased property. That won't change. But should the three-member commission create an EEZ, future wind farms would be assessed a flat rate per megawatt (1 million watts) of power. 

Most of Wind Capital's turbines rate between 1.5 and 2 megawatts, which means that, for example, a $3,000-per-megawatt EEZ tax could generate $225,000 a year from a 50-turbine wind farm.

That's significantly less revenue than such a farm would bring in under a regular property tax evaluation, but the area's two most viable wind companies, Wind Capital and Trade Wind Energy, along with several other ventures, have told commissioners they're not interested in Nodaway County without some kind of discount.

There is more involved, however, than corporate welfare. North District Commissioner Bob Westfall said wind developers want an EEZ because it would provide protection from rising property assessments. This is important, he said, because Kansas City Power & Light Co. reportedly wants to negotiate a 20-year deal to buy wholesale wind power at a fixed rate.

Northwest Missouri State University President John Jasinski, who was present during the meeting with the superintendents, said the county was facing a "watershed moment" and needed to act for the long term.

"These companies are going to go somewhere," he said. "It's very competitive out there."

Jasinski said he expects Wind Capital Group to build "three or four" wind turbines on the university's R.T. Wright Farm north of Maryville sometime in 2010 and also noted the possible positive impact on employment.

Wind farms, he said, generate about 10 jobs for every 70 turbines.