Trustees Grant Tax Value Limitation for Wind Project

Los Fresnos CISD trustees approved granting a Chapter 313 tax value limitation agreement based on the recommendation of the Texas Comptroller’s Office for the development of wind farms located within the boundaries of the Los Fresnos CISD.

Cameron Wind, the developer, will build 80 turbines. The project size is 165 Megawatts, which is enough to power 55,000 average homes.

The land is more than 7,000 acres on both sides of FM1847 between FM 510 and the Arroyo Colorado. Most of the property where the turbines will be built is between FM 803 and FM 1847, but there are a few west of FM 803 and east of FM 1847.

About an acre or less of farmland is taken out of production for each turbine. The final number is dependent upon the need for access roads and access road length.

Turbines are sited to minimize impacts to nearby homes and to accommodate the existing use of the property. No turbine will be closer than 1,000 feet from an occupied structure.

The legislature created these in 2001 to encourage job growth and clean energy.

For an eight-year period beginning in 2016-17, wind farm developers will pay taxes on only $10 million worth of the project even though the actual value is more than $200 million. In return for the value limitation, they will pay the district what is referred to as PILOT (Payments in Lieu of Taxes). Over the life of the agreement, the Los Fresnos CISD will receive about $7.7 million and the company will save approximately $8.5 million.

More information about these agreements and Cameron Wind can be found on the district website www.lfcisd.

“This is a win-win wind project,” Chief Financial Officer David Young said. “The district will see increased revenue, landowners will receive rental income for the use of their property, much of which is barely marginal farm land now, the company will be able to make a profit, and the community will see an increase in the number of jobs and clean energy.”