Nov. 01-- Nov. 1--COLCHESTER -- Colchester First Selectman Art Shilosky said that a proposed 10-megawatt fuel cell power plant on Old Amston Road is a "great opportunity" for the town.
"It's here," he said "It's not going away."
Colchester had a special meeting Wednesday and agreed to allow Shilosky to enter into a 20-year tax stabilization agreement with a Connecticut branch of Bloom Energy, based in California.
John Chaponis, Colchester's assessor, said the contract for the agreement is almost complete and being reviewed by attorneys for both Bloom Energy and Colchester.
According to an interdepartmental memorandum from Chaponis, Bloom Energy officials claim they're "working on an extremely thin margin," and "they could not complete this project" without the tax stabilization agreement.
The total project is estimated to cost $35 million, according to finance board minutes from Oct. 16. Before the meeting, Shilosky said that Colchester's only cost is paying the town's lawyers to look over the contract.
Bloom will pay the town more than $9 million over 20 years. However, the stabilization will affect how its paid. Instead of being taxed $766,343 in year one, with payments reducing to $221,440 by year 20, Bloom Energy will pay $455,535.36 annually.
Chaponis said these taxes also account for a 2% yearly increase in the mill rate.
As for what the project entails, Eversource is building a natural gas pipeline mostly on state roads and Bloom Energy is building a fuel cell that will connect to the pipeline. Bloom Energy will pay Eversource for natural gas to run the fuel cell. The power generated by the fuel cell will be sold to Eversouce and United Illuminating.
During the meeting, first selectman candidate Mary Bylone brought up concerns about the financial health of Bloom Energy. According to the New York Stock Exchange, Bloom Energy closed at $23.74 per share on Nov. 1. 2018, and closed at $2.70 on Oct. 29.
"The company will become yet another tombstone in the Silicon Valley cemetery of dead unicorns," she said.
Justin Adams, permitting manager for Bloom Energy and a resident of Colchester, attended the special meeting. When asked about Bloom's finances, he said he couldn't comment but said that since Bloom is a public company, people who are concerned can look up information on the company.
"It's only a matter of what's in the public space," Adams said.
In the event that Bloom Energy is unable to pay taxes to Colchester, Chaponis said the town can take conventional measures to recoup the loss, including seizing the property.
Adams said that Bloom's work in Colchester will give the town plenty of opportunity because Colchester residents will gain access to natural gas and contribute to the state's carbon reduction goals.
"We're excited for the project," Adams said. "It's a win for the town and a win for Bloom Energy."
Source: INACTIVE-Tribune Regional
(November 1, 2019 - 10:18 PM EDT)
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