By JIM BUTLER
England Authority commissioners will consider at their meeting today a Payment in Lieu of Taxes agreement related to Applied Digital’s data center near Boyce.
The PILOT, an often-used incentive in economic development packaging, allows the company to factor a fixed cost rather than a potential fluctuating one into its operating projections, and recipients to do the same with agreed payment schedules.
As one might expect with a $3 billion investment involved, the sums are large.
The terms are contingent on the company executing a lease of at least 15 years with a recognized US-based tech company with consolidated annual revenues of $100 billion or an affiliate of such.
Tax payments over the 15 years and two five-year optional extensions would total close to $400 million.
Additionally $18 million would be paid each year for three years as seed funding for a matching funds trust for regional community and infrastructure development and support for local taxing bodies.
The document does not pinpoint where that trust is housed, nor does it stipulate where an annual administrative fee, capped at $600,000, is banked.
A new agreement is called for should any expansion occur at the center beyond 300 megawatt critical IT load.
While the data center agreement is still in formative stages another major Authority project – a UCore plant – is underway.
Commissioners today will get an update from plant manager Greg Montgomery on the $75 million investment to separate rare earth elements used in permanent magnets and other clean energy applications.
Also on the agenda is a proposed pay raise for Executive Director Ralph Hennessy.
The Finance/Audit Committee is expected to recommend an increase to $240,000 annually, effective May 1.
According to the most-recent Authority audit, Hennessy, who took the job in December 2022, had a base salary of $209,615 in the year ending last June 30. Total package cost was $266,733.
The current fiscal year budget lists a $215,000 base.
Discussion of a raise apparently began at an Admin/Legal Committee meeting this month, when it was aired in executive session.
That recommendation will be heard by the Finance panel today and, if endorsed, passed on to the full Authority.