Fisher County and the Fisher County Hospital District received its outstanding tax abatement payments from Mesquite Star Special LLC late last week, curing the default local taxing entities officially began taking action against earlier this month. The payments generate over $1.2 million in additional revenue for taxing entities during this fiscal year.
Spearheaded by Hill Country Wind Power then later established through Clearway Energy Inc. in late 2018, Mesquite Star Special, LLC’s 419-megawatt wind farm came online in the summer of 2020. In the years and months prior to its operation, the company negotiated numerous agreements, none as pivotal as tax abatement agreements with local taxing entities.
The company negotiated tax abatement agreements with Fisher County and the Fisher County Hospital District (FCHD), as well as a Chapter 313 agreement with Roby CISD. While these agreements essentially abate tens of millions of tax levies, each entity would still receive millions in some form of payments in lieu of taxes or PILOTs during their terms.
Additionally, Mesquite Star is responsible for 100% of its I&S taxes, which is projected to cover nearly half of the repayment schedule for the school’s roughly $11 million bond voters approved in 2020. With the bond project only now in its finishing stages and just in year three of Mesquite Star’s operations, voters across the county were concerned with the news the company was behind on making this year’s PILOTs.
The FCHD Board of Directors officially placed the company in default status during a special meeting earlier this month after district administrators worked with company representatives through February to resolve its $530,000 delinquency. The Fisher County Commissioners followed suit in their regular meeting last week, also notifying the company the default of its $640,000 payment and triggering the 60-day cure period.
Company representatives spoke with the Chronicle during the past few weeks and although have declined to comment on rumors the company was experiencing cash-flow issues, assured payments to each entity would be made no later than March 31.
Officials with the county and hospital confirmed that each of the outstanding payments were received on Friday, well within the 60-day period. The Fisher County Appraisal District also confirmed with school officials on Monday that Mesquite Star was also up to date on tax payments. After the Chronicle confirmed receipt of the payments earlier this week, Clearway Energy later comment saying, “We take great pride in the economic benefits we create in the communities where we live and operate projects. We’re glad that this issue was resolved and look forward to our ongoing partnerships with Fisher County.”The Roby CISD capital improvement bond has a 20-repayment schedule. Tax abatement agreements between Mesquite Star Special LLC and Fisher County Taxing entities are set to expire in 2031, when the company will then be taxed at the depreciated value of the wind farm at that time.