COLDWATER TWP. — The Coldwater Township board approved Branch County's first solar farm taxing agreement with Apex Clean Energy Monday night under a state law passed last year to guarantee annual tax revenues.

The Payment In Lieu of Taxes, known as a PILT, provides Coldwater Township $2,000 per megawatt for 20 years from the 150 megawatt project covering 1,600 acres across Coldwater and Ovid townships. Coldwater Township has 56.25 megawatts.

Apex development manager Connor Podkul said construction for the Coldwater River Solar farm should begin this summer.

The name change brought a dozen residents to the Monday hearing, who were concerned there was a new proposed solar project.

The PILT replaces the personal property taxes on the solar panels and equipment to operate the mega solar farm plus land taxes.

The legislature approved the alternative PILT taxation after legal battles over wind farm taxes in mid-Michigan in the last decade.

Assessed values and depreciation schedules radically dropped tax income after the first several years of operation. The PILT stabilizes tax income.

Apex agreed to pay Coldwater $3,000 per megawatt annually in a "Community Benefit Agreement."

Prior story Special-use permits approved for solar farm that will straddle Ovid, Coldwater Twps.

Because the 571 acres leased in Coldwater Township for the project are listed in a federal and state "opportunity zone," the PILT is capped at $2,000.

Ovid Township can receive $7,000 a megawatt for the 93.75 megawatts on 1,109 acres under lease in its township. Ovid is working on a PILT agreement.

Township supervisor Don Rogers said the community benefit money for "Law enforcement, fire protection, inspection services, improved roads, parks and recreation, permitting and consulting services," goes only to the township. The annual $168,750 in benefit funds are not shared.

The $112,432 PILT must be split among 13 taxing agencies and millages as are current property taxes.

The solar farm completion is projected for the end of 2025:

Current and approved future tax distribution

Entity Current Tax PILT Tax 

• State Education Tax $3,309 $15,066

• Branch County $2,596 $11,812

• COA millages $399 $1,811

• 911 millage $546 $2,475

• Jail millage $682 $3,105

• Library millage $603 $2,745

• BATA millage $187 $843

• Veterans' millage $54 $247

• BISD millage $4,477 $20,381

• Coldwater Schools $1,414 $51,637

• Coldwater Twp. $508 $2.306

Totals $14,527 $112,432

These numbers would shift as millages expires or new ones are passed.

After 20 years, the project will go on regular tax rolls, or a new PILT can be signed.

County Treasurer Steve Rutz favored solar energy but expressed concern if the project stopped operating. "You can't foreclose on personal property," Rutz explained.

Rutz expressed concern about the loss of farmland.

Rogers pointed out that a $5 million bond will pay for removing the project when it ceases operation. The project is projected to operate for at least 30 years.

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While Apex did not confirm who will receive the solar power, DTE Energy is now monitoring the progress of Coldwater River Solar's development.

The Detroit-based company is completing this fall its own 150-megawatt project on 1,100 acres in Union Township.

The company is leasing more land in Quincy and Butler townships.

 — Contact Don Reid: dReid@Gannett.com 

This article originally appeared on Coldwater Daily Reporter: Coldwater Township approves taxing agreement with Apex Clean Energy solar farm