CCA September 2010 survey on Town Council 20-year agreement with Whalerock
115 members of the CCA e-mail list submitted answers to this survey. Not every survey taker answered every question. A few of you included names, emails or other identifying information that we have removed to protect your privacy. The questions and all of your answers are below. Some survey responders used all caps or used capitalization for emphasis. We have left those as written, but please remember the emphasis is added by the writer and not by us.
In July 2010, the Town Council signed an agreement with a private developer, called Whalerock, who is seeking to build two wind turbines on land on the north side of Rt. 1. That agreement guarantees a fixed tax assessment, waiver of building fees and other benefits. Survey questions below were meant to solicit your opinions, and are not necessarily the opinion of the steering committee.
We have included responses in the same order as the questions on the survey. We recommend reading the text responses as there are great ideas and lots to think about and discuss in those answers.
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1.) In signing the contract, the Town Council waived the building permit fees and all other fees. The amount of the fees not collected was not disclosed, but we estimate these could be thousands of dollars. Do you agree that the Town Council should waive the collection of fees from a developer?
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2.) Should the Town Council have known the amount of fees before they waived them?
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3.) The developer claims the land is worth nearly $6 million, but it is currently assessed at $1.1 million. As part of the agreement, the Town Council agreed to freeze the tax assessment at the current level of $1.1 million plus the turbines for a period of 20 years. If there is any inflation in land or turbine values over those 20 years then the tax bill will decrease each year. Do you agree that the developer's tax assessment should be frozen for 20 years?
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4.) Should the Town Council have followed a process of examination and evaluation to determine the long term fiscal impact of freezing the tax assessment for 20 years?
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5.) In order to review the proposal for this developer, the Town Council has given itself the powers and duties of the Zoning Board and the Planning Commission. Do you agree that the Town Council should give itself the authority of the Zoning Board and the Planning Commission?
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6.) The developer promises to pay Charlestown 2% of what they receive from National Grid, but not to exceed $50,000. The developer has not disclosed any financial information that would allow the public or the Council to calculate what this payment might be. Should the developer have provided financial projections so we know the probability that we will receive $50,000 per year rather than $500 per year or some other number?
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7.) This payment is not adjusted for inflation so it may have less value in 20 years. Should the payment received in lieu of taxes be adjusted for inflation?
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8.) Please use the following space to let us know your thoughts on this issue or other development issues in Charlestown
Any large development that is proposed in Charlestown should go before the voters of Charlestown.
I strongly want to encourage the use of renewable green energy sources and I am delighted that Charlestown is doing this.
I am NOT opposed to wind turbines but I am adamantly opposed to how this deal was structured. It leads one to believe there are conflicts of interests here--why else would the Town Council have given all this to the developer?
Follow the money. Who is making out on this deal? The Town (NO) The town citizens(NO) Whalerock(YES) LL, LLC(YES) How about the town council members(???????) What is the rush a New council in November
Town should even now hire an Independent Auditor to do Pro-Forma financial projections on entire project.
Why does this developer get special treatment versus any other smaller scale projects in Charlestown? I had to pay all my fees and if I want to put up a fence or a shed on my property I have to pay $100 for planning review and send out $65 worth of certified letters to the abutting property owners. I don't get any tax breaks!
I think that CCA has done a great job in providing important information to the voters. Obviously the majority of the Town Council neither did their homework nor cared to learn -- shame on them and we will remember that on election day
This agreement strongly and unfairly favors the developer at the expense of the town as well as of its residence and tax payers!
This is a prime example of someone getting a favor or an unmarked envelop of money to push this deal through without allowing the residence to have a voice.
It appears we are giving away all types on concessions without really understanding the value of this project. The public and the council should be better informed about the benefits this project will bring to the town before making these decisions. A million dollar assessment without taking into consideration the value of the turbines, what a tax break that is. Why should their taxes be frozen while ours continues to go up year after year? I'm sure the value of the electricity they generate will continue to increase yearly.
In reference to profit margins, who is going to be the Fox in this chicken coupe to monitor profits made by this corporation. Anyone who has been a private business owner can "honestly" state that the expenses associated with owning a private business can be "adjusted" to minimize profits.
The town Of Charlestown had a great opertunity at senior low in come housing on this land,,they killed that idea.Then the plan for a school fell on its face,lets see if you can kill this idea as well.If this does'nt fly,,my feeling is Whalerock will sell to the indians,,then the town will really have problems on its hands.Lets not forget,,the town actually talked "Whalerock"owner into buying this land years ago with golden promises of assistance and cooperation from the town,,Never happened..
This deal is not fair to the residents and taxpayers of Charlestown. This is a deal with a private, for profit, developer, not a non-profit one. This guy is laughing all the way to the bank! On our tax dollar!! And the wind is not even that strong where they propose to build them. Now the neighbors, who pay big taxes, have to look at and listen to these behemoth turbines. How nice a view! What happens to these turbines after 20 years? Who will pay for it then? And this seems to be more of an experiment, let's see what happens. We are taking the risk, not the developer. If there is not enough wind to generate power, how much money will the town get then? What can the developer do with the remaining land? Can he build on it and sell it off? And still get the tax breaks? Why are we only taxing $1.1 million and giving them the breaks on all the other fees, too? These turbines are privately owned on private land and we can not use the/any power for our municipal buildings and schools, etc. Why not build them at Ninigret where we actually have consistent wind and the town could benefit from it?
this towns government is as bad as the last dictator we had
The town has an Economic Development Commission. Should they have some input into this decision? The financials appear to be very fuzzy. This does not look like a very professional approach by the council for a long term contract. It provides some lack of confidence in their business skills. On the surface it does not appear to be a win win for the town, but if anybody does win, it will be the developer. The town stands to lose potential revenue. Yes
This form is biased. There are no positive question but many negative one's
While I agree that wind energy could be a good thing we don't know enough about small wind farms ( 2 & 3 turbines) to determine there financial success. As to question number 5, the Council acting as a planning and zoning board/commission, I agree that there are times when a council needs to step in. I feel our planning commission has acted as obstructionists from time to time and the Council should be prepared to reverse those type of decisions.
Charlestown town government needs transparency, these turbines are merely a symptom of a much greater problem.
Town governance should assure its town members that they are making prudent decisions that will benefit the town both short and long term. It does not appear that the town is acting in the best interests of the town. It appears that the town is acting in the best interests of the owners of this property. The town government should have a consistent and even handed approach to developing new businesses (even if we are developing green technology). If the town used this approach for all businesses this would not be sound management. I fail to see the logic or justification for the town council promoting this proposal. Perhaps they could explain their position.
The Town Council should provide taxpayers with the same due diligence they would provide for their own personal investment portfolio or those of their business partners, families, and estates.
It is very obvious that the Town Council did the bidding of the developer and did not have the interests of the town in mind.
It seems to me that this is just another example of the town council not doing its due diligence before committing the town to long term debt or revenue limitations.
This projects hints of a backroom deal. I would suggest that the Attorney General's office conduct an investigation of the relationship between the developer and each Town Council member.
I encourage development of alternate clean energy sources but think the council should have all the facts before agreeing to anything. A business plan would be a start with facts and figures, reviewed by another professional and lawyer. Also there should be a clause stating that any offset of taxes or other dispensations are only for the energy development and the land cannot be used for other purposes without the normal reviews. However we don't want to unduly discourage the energy development but neither do we want it to be used as too much of a lever to have special provisions we might regret. What was Rich Hosp's take on it as a budget person? Yes
This project is something that should have been fully investigated before getting this far. The developer gets federal incentives for a project like this. Why should the town also give them any incentives at all. Especially when there are no guarantees of what the town will get both now and in 20 years. How can the town council take any authority to make such decisions. It should be fully researched with all with all the facts and projections, including any future costs to the town and then put up for a vote.
Sounds like they are taking authority where they should not. What gives this body of people the right to give special treatment to DEVELOPERS while taxpayers have to ALWAYS follow the rules.
The Town Council seems to be operating in a mode of desperation. We all recognize the need to reduce dependence on foreign oil. And most folks recognize the benefits of sustainable and renewable energy. However, this particular applicant is not the only "game in town". The Town Council should have investigated the availability / interest of other development firms to locate a wind turbine facility in town. This would improve the chances that the best deal is made for Charlestown residents. As an aside - do Mr. Leblanc and his associates have a proven track record in the design, construction, operation and maintenance of wind turbine facilities?? I wouldn't want the Town of Charlestown to be his prototype or proving ground. Yes
How will these turbines affect our visual environment? Will there be a public hearing before the passing of this issue?
This is meaningless unless if you do not print a complete copy of the agreement along with the minutes of the TC meeting that lead up to the signing
I believe the people of Charlestown living nearby and that will experience the most impact from this development should have been informed about this development and be offered a say in its course of action.
It seems like someone on the Town Council is in the developer's back pocket. Why are the circumventing procedures and giving this developer preferential treatment at Charlestown taxpayer's expense?
Transparency in decision making is necessary in Charlestown. 1.Only if the fees were part of a negotiated incentive with the company. 2.The Town Council should have known what the fees were. They didn't? and didn't even ask? 3.Is there a reason for the wide difference in value to tax assessment value? My home certainly could not be valued at close to six times it's assessed value. It is understood that tax incentives are often offered, but on the face of it this looks excessive. No, the town should offer a reevaluation assessment schedule (different from the town home assessments schedule). If this company were offering jobs, my consideration would lean toward using this as a negotiating point. 4. What is the company's initial investment cost? Over the course of twenty years, the industry itself expects that value will rise and operating costs will decline. Why would the town then assume a loss in revenue if the company's profits are going to rise, unless the town is expected to carry the company's start up costs over the cost of twenty years? One would expect that town development goals/financial projections would be presently available. Is that not the case? It is unrealistic to think we can accurately financially project twenty years out, but it does seem that a best effort to do so should have taken place, if only to identify future possibilities. 5. What are the reasons being given? Why is the town council assuming zoning board and planning commission authorities? Unless reasonably explained, the answer should be no. Is there a requirement for haste? Why? 6. In keeping with transparency all information regarding utility contracts, including projections (it being clearly understood that they are projections and not promised) should be open and subject to review. Is the 2% figure within standard for contracts presently being made within the industry? 7. Within the industry, the value is expected to increase while the cost of generation will decrease. The payment should be tied to inflation and also to the regulatory and tax increases/decreases within the energy industry.
Do it Right, or Don't Do it at all!
These are complicated issues. Charlestown's interest lies in renewable energy so that we are not under water in 50 years AND preventing a casino from ruining our town. This project serves both aims. Kudos to a brave town council!
The Town Council is responsible to the town's citizens, not to Whalerock. The Council owes it to us to reveal what it has learned (if anything!) about economic benefit of this deal TO THE TOWN, and how it arrived at its conclusion. In the absence of such information, the published terms are without meaning. Through a lack of transparency (or a lack of sound judgment; who knows which?) and by usurping the authority of the Zoning Board and the Planning Commission to fast-track this deal, the Town Council leaves any sentient voter to suspect foul play. November can't come soon enough!
if the developer wants to build them that's fine but they should not get any brake...or expect to get a brake on any thing that they want to do! Will the council give that kind of a brake to any of us if we wanted to build? As it stands right now the life of a windmill is only10 to 15 years, and by that time they will be outdated many times over so why give them a brake let alone a 20 year brake!!!? I'm sure the town cant give up that money on the hopes that they MIGHT get up to $50000 a year.
I am appalled that the Town Council would take it upon itself to enter into this absurd agreement. I can't imagine that the majority of Charlestown residents is in support of this arrangement. Do we have any say???
It seems the Town Council is overly trusting of the Whalerock developer and not trusting enough of the Town Planning Commission or the Zoning Board made up of Charlestown citizens.
THE TOWN COUNCIL DOES NOT UNDERSTAND, OR DOES NOT CARE, ABOUT THE NEGATIVE HEALTH AFFECTS WIND TURBINES WILL HAVE ON HOME OWNERS WITHIN SEVERAL MILES OF THEM. THESE AFFECTS HAVE BEEN WELL DOCUMENTED WORLD WIDE. ALSO, WIND TURBINES ARE NOT WHAT THE INDUSTRY PORTRAYS THEM TO BE. THEY DO NOT MAKE ECONOMIC SENSE; THEY RESULT IN THE DEATH OF MANY BIRDS & BATS; THEY RESULT IN LOWER PROPERTY VALUES; THEY REDUCE TOURISM IN AREAS THEY HAVE BEEN LOCATED IN; AND THEY REQUIRE COAL/OIL BACK-UP FACILITIES BECAUSE WIND IS UNPREDICTABLE. SPAIN HAS STOPPED SUBSIDIZING THEIR WIND INDUSTRY-IT WAS ADDING TO THE COUNTRY'S FINACIAL PROBLEMS. THEY HAVE MADE IT CLEAR TO OUR GOVERNMENT THAT WE ARE MAKING A BIG MISTAKE GETTING INVOLVED WITH SUBSIDIZING WIND TURBINES, THEY MAKE NO ECONOMIC SENSE.
These wind turbines, being placed north of "Route 1, will be an eyesore to our community. The Habitat house being built on Kondike Road which was opposed by the surrounding homeowners is being built on a very dangerous part of the road. It will endanger all drivers who have to travel on Klondike to get to our homes. At the zoning hearing, the town officials did not listen to the community and had already determined that it would be built regardless of the zoning and the danger it poses to the community. What is wrong with this town??
The questions above can not be answered in isolation. What can be said is that given the financial complexity of the project the Zoning Board and or the Planning Commission may not have the expertise required to evaluate the financial aspects of this project. Likewise the TC probably doesn't have the expertise either. In any event, once the deal is thru negotiation, but before it is signed, the TC should make public all the terms of the project and solicit comment from the taxpayers.
We as a small town ought to be able to band together and in some way assure ourselves that we are not siding with the corporations that are taking more and more wealth away from the middle class in the name of too big too fail... As a small town we have opportunities to make sure that corporations not take the upper hand in deal making....on the federal and state level we have pretty much lost our capacity as a middle class to have influence....On the ground level her in our town we ought to be a model for not letting corporations have the upper hand....The individuals in town stand to lose big time, if we are not alert to the nuances of these "deals"...
If this project was helping our economy, jobs and decreasing our tax base, I would be in favor of it . It seems like a project to make someone get richer on our backs. It has not been handled in our favor but almost seems like a special interest project, I agree with the concept of wind turbines but not as a private enterprise that is taking advantage of tax payers.
I agree that we need to have alternative sources of energy in Charlestown & every other town in the state. However, the development of the project should not be done at the economic peril/expense for the town. Tax payer's dollars should not enter into the picture nor should tax breaks or adjustments be part of the deal. The land should be accessed at fair market value just as every resident's land is assessed. Charlestown should not be taking on ANY of the liability for this project. Whalerock, as an entrepreneurship, must be responsible for the all of the risks.(sink or swim). If for some reason, this project fails financially, Charlestown should not be left with any financial burden or loss. What happened to risk vs reward? If Whalerock has done their homework they should be able to tell if this is a feasible project without any subsidy from the town..
First they wrote an ordinance just for this developer, then they wrote a contract that exempts him from fees, and meaningful taxes, then they took away review from the town boards who normally review development, then they scheduled a public hearing before he had his application in. When they review his application will they be able to find a rubber stamp big enough???? When he actually builds it will he pour the concrete when the building inspector is on vacation or will he just be exempted from inspection? I think wind turbines are beautiful, but everything about this deal and relationship with some of the Town Council is as ugly as you can get. There is not one normal procedure that was followed here. They beat up the Planning Board last year for being too strict with enforcement and now we get to see what they consider to be model behavior of a review board. Why even bother having zoning?
I am a fan of wind energy; I think it holds much promise for our future energy needs. However, I feel that any business proposal should stand on its merits, without government financial aid. This business of aiding some favored businesses over others has got to stop.
Sounds like a sweet heart deal to me. Is our town council in bed with these people, or are they just dumb and lazy?
This will affect everybody in our town , why can't we have a vote on it. it costs four times the amount to produce electricity this way. This whole thing is insane these monsters should only be built offshore for many reasons, another backroom deal at our expense again we have the few deciding for the many its sickening. The only thing green about this project will be our tax dollars.
Government must do due diligence in obtaining all pertinent information before proceeding with any project of such magnitude. That is their job.
The Town Council has usurped the rightful responsibilities of two important commissions that would review the wind turbine project. There is no reason for this to happen if the Town Council wants to be transparent and open about its approval process. Wind energy is controversial and potentially harmful to the town and the project's neighbors. This a project where more information rather than less and more discussion rather than less is in the best interests of all participants. I can only imagine the magnitude of litigation this project may be subjected to, at a cost to taxpayers. I hope the town council members have adequate personal insurance because I am sure they will be dragged in to the litigation and I don't see that the Town should be footing this bill.
Charlestown needs wind power and should lead the way in South County but this is no reason not to follow the usual procedures. And why should there be a cap on the measly 2% and less taxes on the property.
I think it to be absurd that the long term impact of a project of this nature is not fully investigated. How can I get my property assessed at 15% of the market value and then the taxes frozen for the next 20 years?
The council is outgunned by this developer. It is unfortunate that they do not know what they do not know. When you are aware of your own inexperience with long term business contracts, wiser men turn to the expertise of those who have successfully managed long term business contracts. They seek out wisdom and experience.. Alas, this council is being bamboozled by a very successful and clever developer. And they don't even seem to realize it.
Large Town Projects should have a feasibility study (with cost-benefit analysis)... done by a Independent Consultant... with the Final Report available for Public Review. If the town is only getting 2%,then, why is it capped at $50,000?
The evaluation of the Whalerock Wind Turbine proposal has suffered a great loss in transparency by the town council's taking on the powers of the Zoning Board and Planning Commission and effectively excluding them from participation. It is a mystery as to why an open competition process is not being fostered.
Why don't the members of the Council each write a paper explaining his/her thinking processes in regard to this proposal. They should clearly define both the positive and negative aspects that they took into consideration in making their judgments. That is the only way to build trust and give the citizens a way to judge an issue.
Personally I am a strong supporter of developing renewable resources and encourage community participation to further these goals. I believe that the coastal ridge is a promising location for harvesting wind power. However I also believe that for profit corporations should pay taxes to the communities they reside in and that, without a limit on what the top executives can extract in salary & benefits Charlestown could wind up subsidizing greed not energy. We certainly should not be giving benefits that we cannot account for. History has shown that the crown jewel in the corporation is the accountant that can bury the profits and hide them from these kind of tax liabilities as they call them. On the surface undervaluing the property at 1/6th it's value seems wrong- my property taxes just went up. Also protecting against inflation when neither the taxpayers or ratepayers are afforded this benefit seems wrong. I would much rather this Public/Private partnership go to power the schools or municipal buildings to reduce the cost of operating the town for everyone. This ridge is a great community resource that will become even more valuable as Global Warming accelerates and oil becomes more dangerous/expensive to extract. Giving it up to the first developer that wants to snatch it up for 2% minus untold tax breaks frozen at 2010 prices with caps on remittances to the town doesn't sound prudent. I like the idea of this development, just not the plan or the way it is being done. This is probably more than the zoning board or the planning board were set up to and the need to move in this direction is urgent so I can appreciate the Town Councils initiative. We do need to a balance sheet as a minimum along with an assessment of other renewable resource opportunities that will insure a sustainable Charlestown and disclosure of this corporations compensation structure before I can really access how I feel we should move on this proposal.
Although I agree we need wind turbines, I do not think the developer should only pay 2% , it should be more so we could pay less on our energy charges from National Grid
The practices our government takes is simply incredible. They are not in any way representing the citizens and certainly not the best interests of our town. Why cant we get our voice heard...there is something very wrong here.