Consider and/or act upon West Texas Solar 1, LLC Application for Tax

Staff Report & Agenda Item Details

Consider and/or act upon West Texas Solar 1, LLC Application for Tax Abatement June Gray, vice president of Macquarie Capital (USA) Inc., presented the West Texas Solar 1, LLC application to the Board of Directors. • Solar power generation facility utilizing solar photovoltaic modules to generate electricity. The anticipated generation capacity of the project is 160 MW. • Phase 1 approximately 110 MW - construction to be completed in approximately mid 2016. The estimated value of proposed improvements is estimated to be $275,000,000. • Phase 2 approximately 50 MW - construction to be completed in approximately late 2016. The estimated value of proposed improvements is estimated to be $75,000,000. • The estimated taxes to be assessed for the 10-year abatement period are $123,620. Estimation of amount of ad valorem property taxes to be paid to MPGCD after expiration of abatement for years 11 – 25 is $262,500. • The required $1,000 application fee is paid. • Mike Gershon, MPGCD legal, said the application is complete. • There will be minimal impact to the water table. About 38 acre feet of water will be needed during the construction phase, and about 1 acre foot thereafter. A well of John Harris, Jr. will be utilized and the well has a production permit. • Production life of proposed improvements is 25 – 35 years • The project is estimated to create hundreds of temporary jobs during the construction period and 2 permanent jobs during the operating period. Middle Pecos GCD Minutes for October 21, 2014 Page 3 Alvaro Mandujano, Jr. made a motion to accept the application for the West Texas Solar 1, LLC tax abatement. Motion seconded by M. R. Gonzalez. Motion carried without opposition. VIII

This motion is scored as EXPANDS_GOVERNMENT (Impact Weight: 5.1/10). Under the Bastiat Liberty Watchdog Index, measures that increase tax rates or fee schedules, issue new debt or Certificates of Obligation, expand regulatory/zoning restrictions on private land use, or authorize unbudgeted spending expansions reduce an official's Freedom Score when voted YES (and reward dissenting NO votes).