PETERSBURG — Township Committee is preparing to generate as much as $9 million in revenue from a renewable energy firm generating electricity atop an old landfill.
Committeeman Tyler Casaccio said Jan. 12 that he had met with interested contractors about renting the old landfill on Butter Road for a solar project.
“They’re going to lease the land from us to put solar panels, so that’ll be a nice income for the township to have yearly as we’re going forward,” Casaccio said.
He said it is a great use for an otherwise worthless property.
“Not a whole lot you can do or build on an old, abandoned landfill, so a good way to make use of the space and bring in some money,” Casaccio said.
“Right now it’s just not getting any use,” solicitor John Amenhauser said, noting the township solicited bids for the project and received just one, from national firm Cultivate Power.
Amenhauser said the firm is seeking a 20-year lease at a rate of $12,000 a month, based on using 12 acres of the property, amounting to $144,000 per year. Cultivate Power also has proposed a 2 percent annual escalator as well as the option for four five-year extensions.
“By the end of it, you’re talking about between $8 (million) and $9 million that you generated for the township for use of this land,” he said.
All of the costs associated with obtaining approvals and construction will be borne by Cultivate Power.
“Hopefully, the township has no responsibility to do anything related to the operation of this property,” Amenhauser said. “You’re really just collecting money hopefully over the course of the next 40 years for solar generation.”
“It’s been a long road, and this is a good source of revenue and it’s a gift that keeps on giving,” Mayor Curtis Corson said.
Amenhauser said the firm must seek multiple approvals before starting the project, noting there is a due diligence period that will be built into the contract. In the meantime, the company would pay $7,500 for the first year and $10,000 for a second year.
Amenhauser said the next step would be to sign the contract.
“I think it’s pretty much a no-brainer to me,” Corson said.
“There’s not a whole lot you can build on a contaminated landfill,” Casaccio noted. “It’s a great way to reuse the land.”
– By CRAIG D. SCHENCK/Sentinel staff
