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    Source:  Coalition for the Preservation of the Golden Crescent and the Thousand Islands Region

    Opposition of PILOT for Upstate NY Power Corporation  

    Source:  Coalition for the Preservation of the Golden Crescent and the Thousand Islands Region | Action alerts, Advertisements, Economics, New York, Petitions, Videos

    Background (Preamble):

    Upstate NY Power Corporation has applied for a PILOT as of October 5, 2009. The requested a decision not later than December 31, 2009 to allow their project financing to be completed. They also stated that they are under a strict deadline to allow their construction to start and reach a certain percentage completion, to qualify for 30% Federal subsidies from the Stimulus Fund.

    The application has not provided sufficient details about their financial strength, and actually refuses to provide an SEC 10-K financial statement for the public to view.

    The PILOT will strip US$54,000,000 from the tax rolls, as compared to full taxation. Additionally, the developer will receive nearly US$150,000,000 in federal direct cash subsidy, with an additional US$150,000,000 plus NYS and Federal subsidies in the form of tax credits. The developer is “rewarding” American Manufacturing Unions by investing US$200,000,000 in foreign manufacturing. They plan to create approximately US$15,000,000 in construction payroll (10 foreign jobs created for each American union worker employed).

    The developer is an LLC formed under the NYS Transportation Laws, as a single purpose company. Their principal is a single person. The developer has agreements with other LLC and LP companies to provide construction management and technology. Dun and Bradstreet Risk Management reports do not provide adequate scores to loan US$54,000,000 of County taxpayer’s money.

    Jefferson County is at great risk with the current PILOT proposal in the manner it is being rushed through our Board of Legislators. The Chairman has bypassed the jurisdictional committee normally tasked with all other PILOTs.

    The PILOT lacks certainty required in a normal, well constructed business agreement, such as but not limited to:

    1. County Road Use Agreement for Construction Damages.
    2. Project Labor Agreement
    3. Decommissioning Bonds to protect County taxpayers
    4. Guarantee to the number, type and pay of jobs to be created and sustained for long-term operation
    5. Guarantee of short-term constructions jobs to be created and sustained from Jefferson County trades


    We, the undersigned ask the Jefferson County Board of Legislators to VOTE AGAINST the Enabling Resolution, which would allow the UPSTATE NY POWER CORPORATION PILOT to proceed.

    Furthermore, the jurisdictional committee (Finance and Rules Committee), shall first review this, and any further PILOT applications, prior to the full Board voting on the Enabling Resolution.

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