Adams Township’s New Zoning Affects Circle Power and the Scotia Wind Farm

ADAMS TOWNSHIP – Some of the wind may have fallen flat in Adams Township on Monday. The new zoning ordinance gives the township and their residents more control over developments in the area. That includes the proposed Scotia Wind Farm from Circle Power. Circle Power’s VP, Chris Moore spoke at the Keweenaw Alliance Breakfast this morning to bring people more information on what step the company is at with its proposed wind farm. Moore and his company said the township may not have followed proper procedure when approving the new zoning ordinance.

“The concerns that Circle Power has with Adams Township’s new zoning, so the new zoning process. Is, we do not believe that it was put in place properly. Prior to them embarking on this process, we sent them a nine page letter from our legal council providing a roadmap to how the zoning process should be done. We don’t believe they followed that process. And that’s what we’re trying to do right now, is determine what exactly is the process, if any there is. And if the existing zoning that, as it’s been put in place, what can be done. And we don’t know the answer to those questions.” – Chris Moore, Vice President Circle Power

Circle Power plans to move ahead with the project, even if it means resubmitting its site plan to the township. The township developed a master plan from Houghton County’s own around 2008. Making zoning an option for the small town in the years since. The Circle Power project development seems to have inspired the township to put together the zoning ordinance.

“The land is in place. The transmission agreement is in the process. And that’s typically on the schedule, the thing that takes the longest. That’s a 3 to 4 year process. Permitting can be anything from one to multi-year, depending on what studies are required. And in fact, in this particular case, it’s already a multi-year, because we’ve put three years of studies in place, because that’s what’s required by the U.S. Fish and Wildlife’s wind installation guidelines. So it’s a multi year process. We’re probably 75-80% of the way through, if I had to put a number on it.” – Chris Moore

The Scotia Wind Farm is more than halfway through the process before construction begins. Adams Township did add to the zoning ordinance before approval,  going through the process for setting up a Zoning Administrator and Zoning Board of Appeals. Circle Power has made public statements contending  the procedure was improper. The company faces push-back from another group as well. James Mihelcic from the Guardians of the Keweenaw Ridge will lead a talk with the Upper Peninsula Environmental Coalition about the issue tomorrow night.

Scotia Wind Farm

UPEC, James Mehelcic Zoom info 8pm EST 2/10/2022;

https://us02web.zoom.us/j/86075269466?pwd=OFZCTk1ERHdJSEJOUlNWbW5UaTA3QT09

Meeting ID: 860 7526 9466   Passcode: 2022

Facebook live link

Payment in Lieu of Taxes Release from Circle Power;

Earlier this week, Circle Power Renewables shared draft Payment In Lieu of Taxes (PILT) contracts with local units of government that are slated to receive property tax revenue from the Scotia Wind project. If constructed, Scotia Wind is estimated to provide a minimum of $15.9 million in new revenue to Adams Township, Adams Township Schools, Houghton County, and the Copper Country Intermediate School District.

Circle Power Renewables CEO Jordan Roberts had this to say about offering up the contracts, which would guarantee the revenue to these entities:

“We heard real concerns from residents that we at Circle Power would try to lower our tax bill after Scotia Wind is permitted. However, when we said the project would result in at least $15.9 million in new property tax revenue, we meant it. Host communities deserve to know they can count on our commitment, which is why we are offering this contractual, legally-binding guarantee.”

In putting together the draft PILT agreements, Circle Power Renewables turned to tax attorney Jack Van Coevering of Foster Swift. Van Coevering has represented many Michigan communities in defending property tax litigation, often after the taxpayer received tax incentives from the local government unit. He has been an outspoken advocate against the practice of companies using tax appeals, often without merit, to force local units to accept a lower valuation simply to avoid the cost of litigation. Van Coevering has long represented the City of Escanaba in its fight to defend against a “Dark Store” appeal.

​

“Tax appeals harm a local unit’s ability to maintain a stable budget and keep millage rates at acceptable levels,” said Van Coevering. “Financial uncertainty and the prospect of expensive litigation and costly refunds are significant threats to local units.” Van Coevering continued, “Entering a separately enforceable contract with businesses provides certainty apart from the many changes that may arise in tax law. It lends substance to the company’s promise of local goodwill. Working with Houghton County and Adams Township entities, Circle Power Renewables is acting in good faith and is willing to guarantee that this revenue will materialize. This allows local entities to budget appropriately and plan for the future.”

The proposed payment structure provides each entity with a minimum annual guarantee based on the Scotia Wind project’s estimated value. As is normal with property taxes, payments would gradually decrease on an annual basis based on a standard depreciation formula.