The Newburgh Town Council approved an extension on its existing Danskammer power plant for another four years at it’s Dec. 23 work session. The extension forms a new Payment In Lieu of Taxes (PILOT) agreement that will replace the current agreement allowing the plant’s location in the Town of Newburgh.
The new agreement will allow for annual increases in payments for the benefit of Orange County, Town of Newburgh, and the Malboro School District at the same rate as the current pilot. The original pilot agreement began in 2014.
This new PILOT agreement will also resolve a tax disagreement between Danskammer, and Orange County, Town of Newburgh, and the Malboro School District. Danskammer will withdraw its claim for reimbursement over allegations that with the current pilot, it overpaid $900,000 dollars in taxes to Orange County, Town of Newburgh, and the Marlboro School District.
“There was some controversy over the billing [to Danskammer] that will be eliminated. So, we won’t have that challenge,” said Town Supervisor Gil Piaquadio during the work session. “The rates will stay the same as the billing they contested, as the payments that they contested.”
This extension will not apply to Danskammer’s proposed new baseload facility. Danskammer is seeking to build its proposed facility near the existing plant. According to Piaquadio, the current plant runs around 18 days a year.
Piaquadio and Town Deputy Supervisor Scott Manley had met prior with plant officials and Malboro School District members about the pilot plan.
“I feel it’s the way to move forward at this time,” said Piaquadio about the extension.
Councilman James Presutti was the only council member who abstained from the vote, the rest voted in favor of the extension. Presutti personally doesn’t typically favor pilot agreements.
After the meeting, he said he abstained from the vote because he wasn’t well informed enough about the issue.
Although, the Newburgh Town Council voted to approve an extension of the pilot, the final decision is made by the Orange County Industrial Development Agency.