The Blytheville city council approved the issuance of Act 9 bonds for Crooked Lake Solar on Oct. 18 during their monthly meeting. However, there was hesitation to do so across the council.
In the previous committee meeting, project manager Syed Rizvi explained the basis of the project and its potential benefits to the area. Crooked Lake Solar of EDP Renewables has already purchased the land at 5402 E. State Highway 18, covering approximately 1,800 acres, with plans to construct a solar array. With portions of the array in the Blytheville and Armorel School Districts, both would benefit from the property tax revenue generated. With the project life expectancy at 35 years, Rizvi estimated the Blytheville School District would receive $7.7 million in funding over that time. He estimated the total property tax revenue at just under $12.5 million over the array’s life expectancy.
During the public hearing prior to the official meeting, Blytheville superintendent, Veronica Perkins, explained how the funding from this project will be put to use within the district.
“One piece I know we would earmark some of the funds for is recruitment and retention, for incentivising quality talent to engage in our school system. There are some areas around transportation, such as our bus system that are very dated and need to be addressed. And thirdly, there are pieces around safety and security that would be addressed. These unrestricted funds would really give us flexibility to help the district,” Perkins said.
She later added, “The economic benefit is good, but we need some other talent pieces too. We have a star academy at the middle school for the eighth grade. And part of the academy is to open possibilities and create a learning environment where students engage in a number of professional and potential pathways. To have him say to me that we would partner in that area, and have opportunities where our students get to learn about solar energy is really important. To get more than just money, and be in true partnership is very important to me and it’s why I chose to support this project.”
Prior to, councilman John Mayberry sought clarity on the project’s full investment and how the city itself can also benefit from issuing the bond.
“We’re trying to see how the city, beside the schools, can have more. And as we discussed yesterday, [previously] the project was for $25 million and now we’re down to $17 million. I’m just trying to figure out how we can make up some additional revenue. We know for a year we’ll have some [construction] workers come in, but what happens after that year? Do we just make a little money here and then nothing? What happens after year one of the bond and how do we keep the city itself having revenue come in from this project?” Mayberry asked.
To this, Rizvi responded, “We also want to have future development here and signifying with the Act 9 bond that the city is willing to do that, incentives us to continue developing. It’s all hypothetical at this point, but we’ve already made investments for future development in that concise area. To your point on the discrepancy of [the total project amount], that was very early in the estimation period. It was our error and we utilized the incorrect depreciation schedule and assessment methodology. After meeting with the county tax assessor, we had to refocus that and it was a benefit to the project that made us more competitive. It allowed us to get to the place we are now, which is actually constructing the project.”
Citing various questions and concerns received from the community, including the county chamber of commerce, councilman R.L. Jones motioned that the issue be tabled to allow for more discussion. The motion later received a second from councilman Matt Perrin.
“Before the vote and to clearly state the case, what we’re talking about is something of a gamble. What we hope is if we do not abate these taxes, EDP Renewables still continues with the project,” Perrin said. “We’ve done our due diligence, their annual report is great. They are doing great things worldwide.”
He later added, “But ff we don’t abate the taxes and they still come, then we’re looking at closer to $23 million for the school districts. Which is why I described it as a gamble, I understand. But it is my belief that without this abatement, EDP Renewables can still come here and make plenty of money. I could be wrong, but I don’t think I am.”
Jones later went on to clarify his motion to table. “I’m not saying I will vote against this, but I do think we need to hold a committee meeting to give these other people who have questions an opportunity. It’s not going to hold the project up. But I’m not going to vote against anything that’s for the school and bringing more finances because it’s much needed.”
The vote to table the issue failed with a split, 3-3 vote. Jones, Perrin and Mayberry elected to table, while councilwomen Vera James and Barbara McAdoo-Brothers, along with councilman John Musgraves electing to make a final decision.
The ordinance to issue the bonds was passed with a 6-1 vote, with only Perrin opposing the decision.
Additionally, the council also unanimously approved an issuance of Act 9 Bonds to Majestic Steel, USA. The company is moving forward with an industrial project at 6719 E. State Highway 167, near the corporate boundaries of the city, on approximately 22 acres of land. The bond issuance will expand across 30 years with a maximum amount of $100,000,000.