Solar farm near New Carlisle will generate more than clean energy

2022-05-28 09:10:45 By : Ms. mary xu

A massive solar development just east of New Carlisle will create up to 200 construction jobs, three to five permanent positions and about 150 megawatts of clean energy — enough power for about 24,500 homes, officials from the firm say.  

But for local taxing authorities, the biggest benefit will come from the more than $27 million in additional real and personal property taxes that will be generated by the $164.7 million project in the first 25 years of its existence — even while it's passing back $37 million to the developer.

Lightsource BP, which took over the project called Honeysuckle —from a company called RES last year, plans to install 407,000 solar panels on about 1,100 acres of leased land bounded roughly by U.S. 20 and Spruce, Tamarack and Darden roads. 

Years in development:St. Joseph County working on plans for massive solar farm called 'Project Honeysuckle'

Construction is expected to get underway later this year, but first the proposal needs to go through a variety of steps that include the approval of a development agreement between the county and the developer as well as the creation of a tax-increment financing district or TIF. 

The development agreement has already been approved by the redevelopment commission, and commissioners are set to vote on the proposal on Tuesday. County Council recently tabled the agreement to give the developer more time to work out construction labor agreements. 

Those agreements basically stipulate what portions of the construction project will be handled by area trade unions, said Chris Brown, an economic development specialist with the county. 

After the development agreement is approved, the process to create a TIF district will then get underway, said Brown. The creation of the TIF allows taxes generated by the project to remain in the district over the next 25 years. 

That’s important because it would allow the county to incentivize the project by passing back $37.4 million of the projected $61.5 million in new taxes to the developer through the agreement. 

But it would also allow the redevelopment commission to capture a bonus $2.4 million for the New Prairie United School Corporation, $18 million for the underlying taxing units such as the school district, Olive Township, the St. Joseph County Public library, the South Bend airport and the county plus another $3.75 million for the redevelopment commission — presumably for future infrastructure improvements in the district. 

In all, Lightsource BP would pay about $27.4 million in taxes, a far sight from the $1.9 million in taxes if the land was used for farming over the next 25 years, according to the development agreement. 

“The construction jobs and the five permanent positions are definitely a benefit,” said Brown, “but the longer term benefits come from the increased property valuation and the taxes it will create.” 

Lightsource BP intends to operate the solar field for 35 years with options to extend the project even longer. But tax proceeds from the project would revert to normal tax distributions once the TIF expires in 25 years. 

Beyond the windfall for taxing units and the boost to the county’s overall assessed valuation, the project won’t generate any additional traffic, pollution or noise, said Brown, adding that it will also give the farmland a chance to rest. 

The county wants pollinator plants used as ground cover, and at some such sites, honey bees are also kept and plants are kept under control by goats. 

If the project is approved, it would be the largest in St. Joseph County, dwarfing a 210-acre solar field that began producing energy last year in the northeast part of the county along the Indiana Toll Road. 

But it would be a fraction of the 13,000 acre solar farm that is planned in Pulaski County.

Massive:Northwest Indiana will be home to largest solar farm in U.S., covering 13,000 acres

Honeysuckle would be the company’s second solar project in Indiana. The company hopes to complete a slightly larger project called Bellflower, about 40 miles east of Indianapolis, later this year. 

“We’re hoping to get this underway," said Darrin Jacobs, development manager for Lightsource BP. “We think it would be a great project for the community because of the taxes and jobs it would create. 

“But it also shows that a community is progressive,” he added. 

If it’s able to break ground this year, Lightsource BP believes the solar field could be operating in late 2023 or early 2024. 

“With the feedback we’ve received, this project checks all of the boxes,” said commissioners’ president Andy Kostielney. “It produces clean energy, creates jobs and generates taxes. 

“And it also guarantees the land will be undeveloped for the life of the project,” he added, pointing out that it could presumably be returned to agricultural use in 35 years. 

If it’s able to break ground this year, Lightsource BP believes the solar field could be operating in late 2023 or early 2024.