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aescayuga_plant120The Tompkins County Industrial Agency (IDA) has approved amendment of the payment-in-lieu-of taxes (PILOT) agreement for the AES Cayuga power plant in Lansing.

The amendment, approved by unanimous vote of the IDA on April 20, reduces the underlying value of the plant to $112,500,000 (from $120,000,000).  Beginning in School Year 2011, the plant will make payments of approximately $3.1 million, a decline of approximately $207,000 from the prior agreement.

The reduction is the result of continuing economic challenges experienced by the coal-fired plant, which has resulted in a continued drop in the value of the plant.  The negotiating team that developed the proposed amendment over a nine-month period included representatives of Tompkins County, the County’s Industrial Development Agency, the Town of Lansing, and the Lansing School District.

The IDA also authorized officials including the County Administrator, Finance Director, Director of Assessment, and its administrative director to make minor wording changes, as necessary, in the final form of the agreement.

The parties have agreed to re-open the PILOT agreement later this year to consider further changes, either upward or downward, that may be warranted as economic conditions change.

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