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The sPower plant is a "loser" for County and other revenues.
The sPower plant is a "loser" for County and other revenues.
Concerned Citizens estimates that the County will lose $88 million in revenues -- from lost property values and planned residential construction that will not occur, over the 35-year life of the project -- more than negating the tax benefits from the facility.
We find several reasons for this:
- Property values around the entire perimeter of this enormous power plant will inevitably decline. This lowers tax revenues.
- 200 acres of Fawn Lake are to be sold to sPower. There will thus be no tax revenue and no construction earnings from 191 previously planned homes.
- The depreciation of the solar plant's equipment makes tax revenues in the "out years" negligible.
DETAILS:
1. 5% Drop In Nearby Property Values:
Studies have show up to a 30% decline in values of homes bordering solar plants.
Local real estate agents already report that buyers are steering clear of purchasing these homes. This will likely worsen once (if...) the solar plant is built.
Common sense: would YOU buy or build a home bordering on a power plant, 10-square miles in size, with 1.8 million solar panels? (That's why the Fawn Lake developer is selling the lots to sPower rather than building on them.)
This chart shows the decline in net County tax revenue with a decrease in local property values of 5%:
2. Fawn Lake lot sales:
A key element of the sPower plan now calls for the additional purchase of approximately 200 acres containing 191 Master Planned Fawn Lake lots to access County water for its massive "Site A". This will mean an annual loss of $333,000 in Spotsylvania County property tax revenues. ​There will be an additional $311,000/home or $59 million lost by local businesses who would have been involved in the construction of these homes.
3. Depreciation of solar plant equipment
Not only has the governor and legislature mandated that local entities -- that would be us: Spotsylvania County -- forego 80% of the customary taxes that a utility plant would pay to the County, but since the equipment will depreciate over the lifetime of the plant, that will further erode any required tax payments from sPower.
So on a $550 million plant, where sPower states they plan to generate $8 BILLION (with a "B") dollars in revenues, Spotsylvania County will receive a paltry $48,000 / year in tax revenues after year 15, and a total of $10 - $11 Million (with an "M") over the 35 years.
Who's benefitting here? sPower and its investors. Certainly not Spotsylvania County nor its taxpayers.
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