Ellsworth County commissioners learned a bit more about wind farms, payment- in-lieu-of-taxes and donation agreements Monday during a meeting with Ellsworth native Josh Svaty.

Svaty met with commissioners on behalf of the Advanced Power Alliance, which represents the clean energy industry in Kansas and is a trade association for all wind power developers.

Commissioners are scheduled to meet with representatives of Pattern Energy, owners of the Post Rock Wind Farm, April 24 for possible negotiations as they look ahead to prepare the county’s 2024 budget. It was noted Enel has already renegotiated a continuation of their donation agreement.

Svaty said technically there are three wind farms in Ellsworth County. Two are owned by Enel (Smoky Hills Wind Farm Phase One and Phase Two) which are mostly in Lincoln County, and the third is the Pattern Energyowned Post Rock Wind Farm, which is mostly in Ellsworth County.

Svaty said all three of the wind farms are under the old model of a lifetime property tax exemption. That exemption was passed in the mid-1990s.

He said that in 2015, the state legislature passed a law which stated as of Jan. 1, 2017, all wind farms developed in Kansas after that date would be under a standard property tax exemption of 10 years for energy sources, then after that they go on the property tax rolls.

“There are a lot of wind farms right around that 2017 mark, so it’s kind of gray whether or not they have a lifetime property tax exemption under the new model,” Svaty said. “Pattern definitely, I think, was 2012 or 2013, so it definitely fits under the old model of a lifetime (exemption).” Svaty said Pattern Energy does what is known as a donation agreement.

“Some people call it a payment-in-lieu-of-taxes, but it’s a donation agreement,” he said.

Svaty then posed the question of how commissioners can consider negotiating a new agreement with Pattern Energy now that the original agreement is ending.

“The only thing I can say is that it kind of cuts both ways,” he said. “You can ask for whatever you want to ask for — there’s sort of no limitation — but it’s also a donation agreement. They’re not obligated to give you anything. So, balancing those is the way you manage it when it comes down to it.”

County Clerk Shelly Vopat presented the original agreement between Pattern Energy and Ellsworth County for the Post Rock Wind Farm. It uses the term payment-in-lieu-of-taxes. Moreover, that agreement indicates the wind farm is exempt from ad valorem taxation.

“We’ll have to talk to Pattern Energy when they come in and see what we can work out,” Commission Chairman Greg Bender said.

In other business:

• Approval was given to Resolution 2023-R03, authorizing a tax foreclosure proceeding in Ellsworth County District Court for real estate. County Attorney Paul J. Kasper said as of Monday, 40 properties in the county are to be part of the tax sale. That number may decrease, however, before the sale, which is to take place sometime in October.

• A document proclaiming April as Sexual Assault Awareness Month in Ellsworth County was approved.

• No action was taken after a 10-minute executive session with Vopat to discuss non-elected personnel (pertaining to the Family Medical Leave Act).

The next meeting of the Ellsworth County commissioners is at 9 a.m. Monday, April 17, at the county courthouse.

“There are a lot of wind farms right around that 2017 mark, so it’s kind of gray whether or not they have a lifetime property tax exemption under the new model. Pattern definitely, I think, was 2012 or 2013, so it definitely fits under the old model of a lifetime (exemption).”

Josh Svaty

Advanced Power Alliance