A Canadian alternative-energy supplier is seeking more than $5.7 million in tax breaks for a new solar farm in the Chautauqua County.
Saturn Power of Baden, Ont., wants to erect a 5-megawatt solar array on 35 acres of agricultural land at 3570 Stone Quarry Road in the Town of Sheridan.
The $7.8 million project would be operated by Rak 1 Solar, a Saturn subsidiary, and the electricity would be sold at a discounted rate through New York State Electric & Gas Corp.'s Community Distributed Generation program.
The project is virtually identical to an earlier one by Rak 2 Solar in the Town of Pomfret, although this one is bigger.
As before, Saturn said in its application that it needs to have a known periodic payment to taxing entities in order to arrange financing for construction and operation of the $5.46 million project.
"The economics are marginal enough that the sales tax and mortgage recording abatements are required for profitability," the company said.
The company is seeking $40,000 in sales tax breaks and $100,000 in mortgage recording tax benefits, plus a 25-year payment in lieu of taxes for the property that would save $5.6 million.
Costs would include $2.205 million for construction, $4.412 million for equipment and $877,000 for site work plus fees. Aside from $780,000 in developer equity, the financing comes from private loans.