City council approves tax abatement for solar farm

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Big Country Electric Cooperative is one step closer to a new renewable electricity source after Monday’s Snyder City Council meeting.
The council granted a tax abatement for Midwest Solar Power, LLC, for a solar farm in the SnTx Industrial Park.
“We know we have to get into solar,” said Mark McClain, Big Country’s general manager and chief executive officer. “This is a way for us to get our feet in it and learn with Jimmy (Chandler). It’s a good chance to get in on a small scale. We know we have to adjust, this is our way to do it.”
Once complete, the company will sell electricity generated at the farm to Big Country Electric.
“The goal is to provide solar power at a better rate than what they’re paying for wholesale power,” said Jimmy Chandler of Midwest Solar Power.
The company was given a 100-percent abatement for 10 years by the city and will now approach the county, Western Texas College and Scurry County Hospital District.
Snyder ISD wrote Chandler that it could not enter into abatement or payment in lieu of taxes agreements on projects of less than $30 million, he said. Snyder ISD Deputy Superintendent Dr. Randy Burks said the state sets guidelines for school district participation in such projects.
“As you are probably aware, these tax abatements are governed by Texas Tax Code Chapter 313. As such, the Texas Comptroller has set a minimum investment for projects that are able to seek tax abatements at $30 million,” the district’s letter stated and included links to state websites that contain information about abatements and school districts.
Chandler, of Wimberly, told the council he plans to spend $550,000 to build the farm. Because of an agreement with Big Country Electrical Cooperative, the company would be able to use a 30-percent tax credit for the first several years the solar farm is in operation. Big Country would have the option to purchase the solar farm’s equipment at a lower cost in the future.
The newspaper previously reported that Big Country Electric would be able to purchase the land. The solar farm will be built on land already owned by the cooperative, and if it purchases the equipment, will be responsible for paying the property taxes after the 10-year abatement expires.
The project is expected to create three part-time jobs during its eight-week construction period, according to Chandler, but no permanent jobs.
McClain also said there could be an opportunity to partner with Western Texas College on a solar energy program, similar to the lineman program.
“Solar doesn’t have a teacher due to a lack of interest. Hopefully this will spark some interest,” McClain said. “There’s no guarantee, but it’s a plus.”
The council gave final approval to an ordinance regulating how recreational vehicles are stored and where there are allowed to park.
According to Snyder City Manager Merle Taylor, RVs may be parked on unimproved pads located on the owner’s property and may connect to electricity in order to charge batteries.
The council approved a resolution to change the city’s personnel policy so that on-call employees are paid $20 per day when they are on call. The rate had been $12 per day, but was budgeted for $20.
The council took no action after a 20-minute closed session to discuss real property.