Judge: County renegotiates tax pact with Plug

Young County Judge Win Graham said he had multiple meetings with the County’s attorney to discuss amending the Tax Abatement Agreement with Plug Power to keep the hydrogen company in compliance with its agreement to build a hydrogen plant in Graham.

“Plug will not meet their obligation to complete the building of their plant in time under our original agreement; thus, the agreement will expire unless amended,” Judge Graham said in a Facebook post. “I hope to restructure the agreement to encourage Plug to build their new plant in Young County and supply our taxing entities with a new revenue source to help provide services to our citizens.”

Judge Graham said the proposed amendment will allow Plug Power to keep the tax abatement agreement with the County by accelerating the timing of the payments the company has already agreed to make to the county.

“This will allow the County to collect tax revenue from Plug for two to three years before the plant is in service and effectively end the agreement two to three years early,” he said. “It should be a win-win for all the parties involved.”

The tax revenue from Plug Power has figured in expansion plans for Newcastle Independent School District and the Olney Hamilton Hospital. In November, voters approved a $33 million bond issue for the construction of a new hospital with the understanding that the 30-year general obligation bonds would be repaid by tax revenue from local wind farms and the hydrogen plant.

Anticipated tax revenue of about $6 million from the proposed facility was factored into a decision by the OHH board to sell the bonds.

Voters approved the issuance of the bond on Nov. 7 based in part on assurances that revenues from Plug Power and from wind farms would prevent the need to raise property taxes in Olney and Newcastle.

Plug Power said in January that it had finalized a term-sheet negotiation with the Department of Energy for a $1.6 billion loan facility.

The company, which is a pioneer in hydrogen cell technology, has been undergoing liquidity challenges, issuing a going- concern warning late last year.

Plug Power’s Georgia plant, which also had been delayed, is now operational, the company said.