Trailblazer Energy Center
Project Journal
DECEMBER ENTRIES
Sweetwater Industrial Foundation Urges Passage
of Tenaska Abatement
December 30, 2008
Nolan County commissioners received a letter from the Sweetwater Industrial Foundation supporting the Tenaska Trailblazer Energy Center. The project could benefit local contractors and businesses during the five-year construction period and over the 50-year life of the project.
The letter urged county commissioners to pass Tenaska’s requested property tax abatement at 75 percent for 10 years.
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Sweetwater City Commission Passes Resolution
Supporting Trailblazer
December 23, 2008
The Sweetwater City Council today unanimously passed a resolution [PDF] supporting the Tenaska Trailblazer Energy Center and directing the City Manager to work with Tenaska and Nolan County official to encourage the plant’s construction in Nolan County.
The resolution recognized the tremendous economic benefits that Nolan County and Sweetwater will receive should the Tenaska Trailblazer Energy Center become a reality. The resolution especially noted the 1,500 jobs the Trailblazer project will provide at peak construction and the 105 permanent jobs when the plan begins operations. It also acknowledged that the project would add an estimated $742 million in county economic activity during construction; and the more than $300 million annually for the remaining 50-year life of the project.
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SEED Board Supports Tenaska’s Tax Abatement
December 19, 2008
The Sweetwater Enterprise for Economic Development (SEED) Board of Directors met today and reviewed Tenaska’s application for a Nolan County property tax abatement for the Trailblazer Energy Center.
Board members reviewed the estimated economic impact the facility will have on Nolan County, the number of jobs the project will add, and the projected tax revenue the project will provide for the county.
After their review, the SEED board unanimously voted to send a letter [PDF] of support to the Nolan County Commissioners for the Tenaska Trailblazer Energy Center and a property tax abatement of 75 percent for 10 years.
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Nolan County Commissioners Consider Property Tax Abatement
December 8, 2008
In their regular meeting this morning, Nolan County commissioners held a hearing on Tenaska’s property tax abatement request.
Tenaska has requested a 75 percent tax abatement for 10 years, starting in 2016 – the plant’s first full year of operation. An abatement of this percentage will contribute toward the financial viability of the project.
Financial viability is the most important factor in Tenaska’s decision to move forward with the Trailblazer Energy Center. It also is a major signal to the financial sector that the community is solidly behind the project and has implemented policies that help bring the project to fruition.
Under the proposed agreement, Tenaska will pay 100 percent of its taxes during development and construction of the Trailblazer Energy Center – an estimated $24 million under current law at today’s tax rates.
The cost, size, and economic benefits of the Trailblazer facility are such that, if the project were fully operational today with no tax abatement in effect, the plant would pay more than $8 million in property taxes annually. The entire 2008 Nolan County budget was approximately $6 million. Tenaska compiled a chart [PDF] to illustrate these estimates.
Tenaska chose to request the same abatement it requested and received for three other generating stations in Texas. According to the latest figures from the Texas Comptroller’s office, the average tax abatement in Texas is 76 percent for 10 years.
County Commissioners must classify the Trailblazer site as a Nolan County reinvestment zone before it can consider granting a property tax abatement. The commission’s vote for the reinvestment zone is scheduled for Jan. 12. The final vote on Tenaska’s property tax abatement is scheduled for Jan. 26.
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Study: Tenaska Trailblazer to Bring Economic Boost
December 5, 2008
Tenaska recently learned the results of an economic analysis performed by TXP, Inc. The study indicates that the proposed Tenaska Trailblazer Energy Center would be a significant economic boon to Sweetwater and Nolan County.
The economic impact study is an important tool for Nolan County commissioners who on Dec. 8 will consider giving Tenaska a property tax abatement to encourage economic development.
TXP reviewed the Nolan County region’s economic base and demographic data, researched the area utilities and energy industries, and built econometric models to simulate the project’s impact in dollars on the regional economy. The result is a detailed report, The Potential Economic and Tax Revenue Impact of the Tenaska Trailblazer Energy Center.
TXP determined:
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During construction, the Trailblazer Energy Center would inject more than $742 million in economic activity in Nolan County over five years and provide about 1,500 jobs at peak. |
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The Trailblazer Energy Center would add more than $1 billion (in 2014 dollars) in taxable property to the Nolan County tax rolls. |
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After completion, the plant would add 105 jobs at the plant, an estimated 71 jobs in the community due to increased local spending, and an over $300 million annually in economic activity over the projected 50-year life of the project. |
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Enhanced oil recovery using CO2 captured by the plant would increase annual Permian Basin oil production by more than 10 million barrels. |
In addition, TXP projected that the application of new energy technology in Texas could contribute to the economic vitality of the state, especially if more plants like the Trailblazer Energy are constructed and the cost of energy drops.
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More information about the Tenaska Trailblazer Energy Center and illustrations for press use may be obtained at www.tenaskatrailblazer.com.
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