County approves Millennium Pipeline tax breaks

One county has rejected the proposal

By FRITZ MAYER

MONTICELLO, NY ¾ The Sullivan County Industrial Development Agency (IDA) voted last week to approve tax breaks to the Millennium Pipeline Company, which wants to expand the existing natural gas pipeline from 12 to 30 inches. The eight Sullivan County towns through which the pipeline travels will received increased tax revenues if the lines go through, but not as much as they would without the tax breaks.

Susan Whalen, counsel to the IDA, said only one member of the seven-member board, Ed Sykes, voted against the approval.

Whalen also said the vote was conditioned upon the approval of the same agreement by the IDAs of all eight counties through which the pipeline will run. The Tioga County IDA has already rejected the proposal, thereby putting the project in some doubt.

A group called Concerned Citizens of Tioga County had petitioned lawmakers there to reject the tax deal because it would not benefit the area by bringing jobs or significant tax revenues.

After the Tioga vote in early June, Michael J. Armiak, a Millennium spokesman, said the move might put a halt to the project because, without the tax breaks, the new pipeline would not be economically viable. The vote of the seven-member Tioga board was unanimous.

Whalan, however, said Millennium executives have indicated that believe they can convince the Tioga IDA to reverse its position.

If the project is ultimately approved, revenues to towns from the pipeline would climb by about 50 percent in the first year. In the town of Delaware, for example, the revenue would jump from slightly more that $8,000 to more than $12,000. However, without the IDA break, the figure would be more than $24,000.