Cochecton seeks moratorium on solar farms

LINDA DROLLINGER
Posted 8/21/12

LAKE HUNTINGTON, NY — After trying unsuccessfully at its August 10 meeting to hash out details of the abandonment clause in a proposed solar farm ordinance, the Cochecton Town Board voted …

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Cochecton seeks moratorium on solar farms

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LAKE HUNTINGTON, NY — After trying unsuccessfully at its August 10 meeting to hash out details of the abandonment clause in a proposed solar farm ordinance, the Cochecton Town Board voted unanimously to schedule a public hearing regarding adoption of a temporary moratorium on commercial solar farms.

Supervisor Gary Maas suggested a six-month moratorium, saying that should give town and planning boards enough time to resolve the matter of escrow account funding, which has so far confounded both boards. The escrow account is designed to protect the town against costs associated with site cleanup, if the solar company abandons the project before conclusion of its 20-year lease agreement.

Town Attorney Karen Mannino stressed the importance of securing escrow account funding sufficient to cover site cleanup costs at any point during the 20-year term of the lease agreement. “To be certain that enough money will be available, if needed, we have to get it up-front,” said Mannino. And there’s the rub. None of the several methods commonly used for escrow account funding seems satisfactory here.

Maas told the board that a Delaware River Solar (DRS) representative had suggested a reclamation bond in the amount of $50,000, estimated present-day cost of a 10-acre site cleanup, with annual increases to compensate for inflation. But Mannino objected, for two reasons. Noting that there would be no legal means of enforcing the annual inflation payments, she also worried that the bond company might go out of business or otherwise default on payment.

When asked if the solar company would be liable for site cleanup costs in the event of its own bankruptcy, Mannino said that would depend on the bankruptcy court ruling, which might well consider them dischargeable expenses. If that were the case, the town could be liable for site cleanup costs unless, as one board member suggested, the lease agreement property owner is specifically charged with liability for site cleanup costs.

There was one other sticking point in the proposed solar farm ordinance: should solar farms be permitted in the hamlet districts of Cochecton, Cochecton Center, Fosterdale and Lake Huntington? Maas noted that it was the first issue on which this year’s board has been split. In fact, the board was evenly split on the issue, until Maas cast his nay vote, breaking the tie.

Former board member Larry Richardson asked, “Can the town realize more revenue from a 10-plus-acre solar farm or from 10-plus acres of other kinds of commercial ventures, such as a car dealership, a hotel or fast food franchises?”

And as all present then acknowledged, 20 years—the term of a solar lease agreement—is a long time in the world of business.

A public hearing to discuss adoption of a six-month moratorium on commercial solar farms will be held at 7 p.m. on September 14 in the Cochecton Town Hall, 74 Smales Rd.

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