Martin court approves resolution for $300 million solar facility

By Lilly Adkins

BSN Associate Editor

INEZ — The Martin County Fiscal Court held a special meeting Wednesday, Dec. 2, and unanimously approved a resolution supporting a $300 million project that could bring between 250 and 300 jobs to Martin County.

The project will consist of a solar electrical generating facility at the location of a reclaimed surface mine formerly known as Martiki Coal.

The resolution of the Martin County Fiscal Court said it “encourages and induces the Martin County Solar Project, LLC to proceed with the acquisition, construction, installation and equipping of a solar electrical generating facility.”

The court agrees to “undertake the issuance of industrial building revenue bonds, in an aggregate principal amount not to exceed $300 million, issued in one or more series and or denominations” and “to a memorandum of lease and a payment in lieu of taxes agreement, subject to final approval of an incentive package provided by the commonwealth of Kentucky,” according to the resolution. The court also agrees to “take such other action as necessary or required to authorize the issuance of the bonds.”

Former State Auditor Adam Edelen is heading the project and assured the fiscal court that if it approved the resolution, the project would happen.

Edelen said the project would provide jobs for 250 to 300 local hires, with preference given to displaced coal miners.

Edelen also said they would begin hiring for the positions as soon as 2021.

According to the resolution, the Martin County Solar Project, LLC, desires to acquire, construct, install and equip a new approximately 100 to 200 MWac solar electrical generating facility consisting of real property, real property improvements, and tangible personal property, which may be developed at the company’s discretion in one or more phases, all within Martin County.

The company desires to enter into, at the appropriate time, one or more lease agreements with the county pertaining to the project, the resolution says.

“Discussions have occurred between representatives of the company and the county regarding the issuance of industrial revenue bonds by the county and it is the intention of the county, and the county agrees with the company, to issue industrial revenue bonds upon compliance by the company with such reasonable conditions and obligations as the county may require and subject to the approval by the county of the terms of all agreements, resolutions and other documents incident to the industrial revenue bonds,” the resolution said.

Based upon the estimated costs of the project, the “county proposes to issue its industrial revenue bonds at such time as is needed by the company in an aggregate principal amount not to exceed $300 million for a term to be determined by the company to pay costs of the project, including costs incident to the authorization, sale and issuance of the bonds and other financing costs, but with such other financing and contributions from the company as may be necessary,” the resolution said.

The bonds “will not be secured by the full faith, credit and taxing power of the county, nor any of the county’s other assets or properties, but will be payable solely from payments to be made by the company under the lease agreement and any other revenue sources arranged for by the company and specifically pledged for the payment of principal, premium and interest on the bonds,” the resolution said.

The company has represented to the county that it will have “sufficient financial resources to acquire, construct, install and equip the project to operate the project throughout the term of the bonds, meeting the obligations of the lease agreement when due,” the resolution said.

Edelen said during the fiscal court meeting that they would be paid $300,000 a year for 30 years and that the amount wouldn’t change.

“It’s the largest pilot amount agreement ever made in Kentucky,” Edelen said.

The county assumes no responsibility for the acquisition, construction, installation, equipping, completion or operation of the project, which shall be the responsibility of the company, the resolution said.

The resolution and memorandum of agreement approved constitute the present intent of the county to issue the bonds at a later date, provided however that the issuance of the bonds is specifically conditioned upon approval of the state of the incentive package for the project. The commitment of the county and the company are further conditioned upon the county and the company executing and entering a PILOT agreement and finalizing and agreeing to the terms of the lease agreement, the resolution said.

Project costs shall be paid using the proceeds of the bonds, supplemented by contributions of the company as necessary to complete the project and the lease agreement shall establish sufficient safeguard to insure that all money provided by the county from proceeds of the bonds will be expended by way of direct expenditure or reimbursement solely for the purpose of the project, the resolution said.

The total amount of money necessary to be provided by the county through the issuance of the bonds for acquisition, construction, installation and equipping of the project will not exceed $300 million, the resolution said.

The costs of acquiring, constructing, equipping, and operating the project will be paid out of the bonds together with contributions of the company as it may be necessary, the resolution said.