Posted: 6:10 p.m. Thursday, March 19, 2015

COMPLETE COVERAGE

Middletown expects influx of tax revenue from power plant construction

By Chelsey Levingston and Ed Richter

Staff Writer

MIDDLETOWN — 

    The city of Middletown expects to get a one-time boost of approximately $420,000 in income tax revenues over a three-year period from the construction of a new natural-gas fired power plant here, according to a city staff report.

    Construction should take three years and the city could start collecting as soon as June, assuming the project by Florida-based NTE Energy LLC meets all regulatory approvals and starts construction as planned.

    The influx of cash could be spent on improving roads and other infrastructure, City Manager Doug Adkins told the Ohio Power Siting Board last fall during a public hearing for the project.

    “Our hope is to take the benefits of this project, which will be a one-time large influx of income tax dollars for the city, pool it with the fact that our schools are now in the process of developing two to three new schools, which will expand again our source of one-time revenues, and use that strategically with our new plans to develop infrastructure,” Adkins said last October.

    Projections are that the equivalent of 200 full-time temporary construction jobs will be created in the city as a result of the approximately $500 million power plant build. Those jobs will generate a total payroll of about $24 million between this summer and the power plant’s opening in 2018. Estimates call for the creation of 300 to 400 total jobs for people including full- and part-time work at a peak.

    Once built, the power plant will hire about 25 permanent employees for ongoing operations and maintenance. Those workers will generate about $2.2 million in new annual payroll, generating an additional $36,500 a year in revenues for city coffers, according to the staff report prepared for city council.

    Extra details are coming in about the power plant’s impact as city government considers whether or not to approve a financial incentive package for NTE Energy’s investment.

    City Council at its meeting Tuesday discussed offering the company a 75 percent, 10-year property tax abatement under the Enterprise Zone program.

    NTE could also qualify for a “large user” discount on a water and service agreement with the city, according to Middletown Economic Development Director Denise Hamet. The NTE Energy power plant would consume 2.21 million gallons of water a day, which would make it the city’s largest water user, according to city records.

    Middletown City Council on Tuesday gave first readings on the two ordinances — the water and service agreement and the the property tax abatement — but because the city did not provide ample notice to the schools, council could not adopt the legislation. A special meeting for the purpose of approving both ordinances has been set for 7:30 a.m. March 27 at the City Building, at One Donham Plaza.

    Plans were first announced last year to build the power plant in Middletown, and later those plans easily passed several key regulatory approvals from Ohio Environmental Protection Agency and Ohio Power Siting Board.

If everything moves forward, NTE Energy of St. Augustine, Fla., plans to start construction this year and open in 2018, producing more than 500 megawatts of electric power year-round. The power plant could be built near the intersection of Cincinnati-Dayton and Oxford State roads.

    It would provide a cleaner source of energy to the region’s electricity supplies, company executives previously said.

So far, NTE Energy has: received an air permit from Ohio Environmental Protection Agency; received a Certificate of     Environmental Compatibility and Public Need from the Ohio Power Siting Board to construct an electric generating facility; received approval of its application to Ohio Power Siting Board for Middletown Energy Center’s electrical interconnection; and completed the Feasibility Study and System Impact Study of PJM’s three-part study process, looking at the project’s ability to interconnect to the electric system, according to the company.

    PJM Interconnection operates the region’s transmission grid and serves 61 million people in 13 states, including Ohio and the District of Columbia.

    Before NTE Energy can start construction, it must still: complete the Facilities Study with PJM; finalize the project’s financing; and once the financing closes, the general contractor will complete its design of the power plant and obtain the remaining approvals from the city to start construction.

    “The project is progressing very well and following the completion of the financing process, construction of the facility is on schedule to start this summer,” said Michael Schuster, project developer for NTE Energy.

CONTINUING COVERAGE

Since plans were revealed proposing to build a power plant in Middletown, this newspaper has provided in-depth coverage on the topic

Jan. 2014:$500M natural gas plant planned for Middletown

Jan. 2014:Power plant not a done deal for Middletown

Feb. 2014:Energy plant to bring jobs, revenue to region

Feb. 2014:Pending Supreme Court decision has implications for Middletown plant

Feb. 2014:Duke Energy to sell Midwest power generation business

March 2014:Potential for six power plants to operate in Butler County

March 2014:Hamilton hydroelectric power plant, Ohio River’s largest, nears completion

March 2014:Hamilton’s massive hydroelectric plant impresses city leaders

April 2014:Middletown power plant project progressing

Oct. 2014:Natural gas development in Butler County brings risks, rewards

Oct. 2014:Middletown power plant project called a “game-changer” for region

Nov. 2014:Final air permit approved for Middletown power plant project

 

It is absolutely disgraceful, beyond pale, the city and residents have tolerated this situation for 30 years of more. The streets have never looked worse than now, after 2 brutal winters. Middletown will never recover from this tragic mistake back in 1986.