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CHPE Acquiring Easements Along Approved Route; Negotiating Property Tax PILOTS; Construction To Begin In 2024
The Champlain Hudson Power Express (CHPE), which is expected to deliver 1,250 megawatts of renewable energy to New York City, has yet to break ground here in Rockland County, but preparations are underway and the project will have a profound impact on the county soon and for years to come.
The power line that will transmit hydroelectric power will originate in Quebec, run beneath Lake Champlain, surface around the capital region, run under the Hudson River below Greene County, and then resurface in Rockland County before re-entering the Hudson River en route to Queens.
It will pass through 15 New York counties and cover 339 miles with plans to power the equivalent of more than one million households. In Rockland, it will run through parts of Stony Point, the Town of Haverstraw, the villages of Haverstraw and West Haverstraw and parts of the Town of Clarkstown before re-entering the Hudson River to its final destination, Astoria, Queens.
Payments In Lieu Of Tax Agreements
The project has yet to break ground in Rockland County, but CHPE has been actively acquiring easements along the planned route. CHPE has also been negotiating with several towns, villages, and school districts for PILOT (Payment in Lieu Of Taxes) Agreements to provide some certainty in its tax obligations going forward.
PILOTs benefit both CHPE and the various taxing authorities. For CHPE, it enables the company to plan future tax outlays without being subject to different assessors and assessments in each taxing jurisdiction. For the local municipalities and school districts, PILOTs provide a certain stream of tax revenue without the risks associated with tax certiorari challenges and possible tax rebates resulting from tax challenges.
The Rockland County Industrial Development Agency (IDA) approved CHPE’s application for a PILOT program in June of 2022. To take advantage of a PILOT, CHPE would have to lease its real property to the IDA, which in turn leases it back to CHPE. In Rockland County, the IDA cannot impose a PILOT on a taxing authority — it is incumbent on CHPE to negotiate and reach agreements with each individual affected village, town, and school district.
“We can’t share specifics at this stage as Tax PILOT negotiations are confidential until complete, at which point they become public,” said a spokesperson from CHPE. “It’s important to note that CHPE is a unique and difficult asset to value, and that once construction is complete it will not require any services from any community. The purpose of a tax PILOT for a unique project like CHPE is to set a consistent tax rate for the entire 339 miles of the route.”
Estimates are that total annual tax revenue in the affected jurisdiction could reach $4,080,000, but PILOT agreements may impact that total and how it is derived. Current estimated tax revenue for each affected jurisdiction are as follows:
CHPE is not seeking PILOT agreements in neighboring Orange, Ulster or Dutchess counties as the power lines are submerged in the Hudson River north of Rockland County.
Payment For Rights-Of-Way
In addition, CHPE has secured agreements with affected towns and villages to utilize the rights-of-way owned by municipalities. Payments agreed to for the Town of Stony Point, $5.3 million for a Community Fund and $2.9 million for a Streetscape Fund; Town of Haverstraw, $6.8 million for a Community Fund; Village of Haverstraw, $3.5 million for a Community Fund, and $3.85 million for a Streetscape Fund; Village of West Haverstraw, $2.5 million for a Community Fund, $2.23 million for a Streetscape Fund; and Town Clarkstown, $3.9 million for a Community Fund.
Some of the streetscape funding has already been paid to the municipalities.
Acquisition Of Easements Along The Approved Route
Meanwhile, CHPE has also been acquiring options and temporary and permanent easements on properties along its approved route. Options and easements have been secured on more than two dozen properties to date, including on over 200 acres of Tilcon’s property on East Elm Avenue in Stony Point and hundreds of acres owned by the Palisades Interstate Park Commission between Route 9W and the Hudson River in Clarkstown.
Other parcel owners along the route have negotiated easements with CHPE with some receiving as little as $10,000, while most receive more. CHPE paid $250,000 for a temporary easement of 1.84 acres and a permanent easement of .25 acres at 146 South Liberty Drive to Barmart Development Corporation.
Isabella Rose Realty received $250,000 for temporary and permanent easement on .20 acres at 152 North Route 9W in Congers.
The owner of 35-39 Route 9W South in the Village of West Haverstraw was paid $125,000 for easements on about .36 acres.
Smaller easement acquisitions along the route ranged from $7,000 to $60,000, with a few as high as $60,000 each. Total easement acquisitions to date have cost CHPE more than $1.5 million.
When asked how CHPE determines the value of the easements it acquires, a spokesperson responded that “values are based on the market rate for properties” and that the majority of easements required in Rockland County have already been acquired.
Construction in Rockland County is expected to “begin in the next several months and to be completed in the area in the second half of 2025,” a spokesman said.
IBEW Local 363 Electrical Workers are currently installing the electrical conduits near the upstate Albany area for the CHPE project and will also be installing the conduit through towns and villages in Rockland County. Sam Fratto, Business Manager for the IBEW Local Union 363 said, “We are proud to represent the hard working and well trained Rockland County and Hudson Valley electrical workers on this important innovative project.”
