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Wind power blows new funding into rural community's coffers
dbertola@bizjournals.com | 716-541-1621
Five years ago, the Town of Eagle was in the early stages of researching how wind energy could generate money as well as power.
"Our goal was no town taxes, free garbage pickup and to put enough money away for the future," said town Supervisor Joseph Kushner.
Since then, the idea has become reality and the town of 1,200 is enjoying what Kushner had envisioned and more. The bounty of the turbine-dotted farmland includes newly paved roads, free senior and summer programs and, last year, a new $130,000 ambulance was purchased. More recently, the town added a new fire truck and plow truck, each of which cost $200,000.
Income from two wind projects helped pay for all of it. Kushner said Eagle will get approximately $970,000 this year from them. As a bonus, residents pay no town taxes.
Eagle is home to 93 turbines: The first 67 were completed in 2008 and are part of the Noble Bliss Windpark. In a second phase completed last year, 26 more were built as part of a project that also saw 58 go up in Wethersfield.
Kushner estimates the largest company in Eagle to be a 250-cow dairy, small when compared to 2,000-cow dairies nearby. Most of the nearly 850 land parcels in Eagle, he said, are owned by non-residents and/or for recreational use such as summer homes or snowmobile trails.
Leadership was key to getting deals done
So when Noble Wind Energy LLC came looking to talk about setting up a wind farm, Kushner listened. He said the first project went smoothly, but negotiations for Phase II became complicated.
He said that's because Noble hired family of a board member he would not name. The company did this to get contract language written in a way that favored it, he said.
"Let's just say we got thrown under the bus," Kushner said.
Of Noble, he added: "They questioned our integrity; they tried to divide and conquer. My warning to anybody doing projects like these is that they (the wind company) will try to influence your town board or city councils. That's the way the game is played."
Kushner said those negotiating on Noble's behalf painted a picture of Kushner, a town construction engineer and the highway superintendent, as being dishonest during negotiations.
But as upset as he gets when talking about Phase II negotiations, he refers to Brett Hastings, who lives in Bliss and is director of operating projects for Noble Environmental Power LLC, as one whose "integrity you cannot question."
Hastings' first day with Noble, in August 2005, was a public information meeting with Eagle town leaders. He describes his job as striking a balance among a variety of factors: safety, maximizing revenue to benefit landowners and stakeholders, controlling expenses and keeping in compliance with state and federal regulations.
"All the board members had different questions and concerns," Hastings said. "It was our duty to answer everybody's questions, and each of our team members strove to be transparent throughout the development process."
Kushner credits attorney Eric Dadd of Attica-based Dadd Nelson and Wilkinson PLLC and the leadership of Doug Berwanger, chairman of the Wyoming County board of supervisors, for getting the deal done in a way that benefited his town. He said the board of supervisors provides equal representation for all towns, regardless of size.
"Everything is decided on an equal basis in committee, and the chairman brought our situation to the Wyoming County Industrial Development Agency and explained the difficulty small towns have, and made it well-known that the effects of the project would be felt in the town of Eagle," Kushner said. "So he felt Eagle should get the bulk of the finances."
Added Hastings: "The entire process was a learning experience through development into construction and now as we're operating. I watched the whole process, and Joe got the best deal for his town."
Noble pays for DirecTV for some homeowners
From Hastings' office window on Route 78 in Wethersfield, he can see some of the turbines. All told, he is responsible for 408 in Bliss, Wethersfield and four other Noble wind parks in New York that generate a total of 612 megawatts. Across the street and behind his office, some blades remain still, which likely means the wind isn't strong enough to propel them.
Based on project deliverables, the safety record and revenues, Hastings considers the Bliss and Weathersfield projects successful. Citing confidentiality agreements with landowners and shareholders, the company declined to share revenues on the Bliss and Wethersfield projects. Noble spokeswoman Maggy Wisniewski said the company is looking for a steady return on investment over a long period of time, performance that is measured over a span of 20 to 25 years. Providing returns at this point, she said, is premature.
Hastings said only a few people have expressed displeasure with the wind parks. Kushner said there was one individual in particular who actually fired a gun at a turbine.
"It's a criminal offense that is under investigation," Hastings said.
Other full-time residents who claimed reception was affected by rotating blades now have DirecTV service paid for by Noble.
And despite the wrangling that came with the second set of turbines, Kushner said the benefits outweigh the headaches.
"It was worth it. I would do it all over again," he said.

