Tentative agreement with Lordstown power plant would pay schools about $26 million

Staff report

LORDSTOWN

The Lordstown Board of Education has approved an agreement with power-plant developer Clean Energy Future that would pay the district between $24 million and $28 million over 15 years if a second power plant is constructed in the Lordstown Industrial Park.

The Lordstown Energy Center now under construction is expected to provide the district with revenue of about $22.5 million over 15 years when it is up and running, said Terry Armstrong, Lordstown superintendent.

The agreements are in exchange for allowing a 15-year, 100 percent property-tax abatement.

Clean Energy Future hopes to build two $900 million gas-fired power plants on the same site.

The additional revenue to the school district is estimated to be around $48.5 million per year for 15 years when both plants are running. That would be about $3.2 million per year.

The district has an annual budget of $7 million to $7.5 million, but it is gradually losing around $1.5 million annually in tangible personal property taxes from the state, Armstrong noted.

The agreement will now go to Lordstown Village Council on Monday and then goes to the Trumbull County commissioners for their approval.

The second power plant, to be known as the Trumbull Energy Center, is still being reviewed at the Ohio Power Siting Board in Columbus.

This agreement is structured a bit different from the first one in that the schools and village will share a “net profit tax” of 1 percent, with the village getting the first $500,000 and the schools getting half of the rest.

The second plant could possibly provide the schools with more revenue than the first one because the revenue will be based on profits instead of guaranteed money, Armstrong said.

The schools will receive $800,000 when ground is broken for the second plant and income taxes from constrution wages. The village gets the first $10,000 of income-tax wages and shares the rest 50/50 with the village, Armstrong said.

“Lordstown schools appreciates the opportunity to continue working with the village of Lordstown and Clean Energy Future,” Armstrong said. “This will help support a future of innovation and engagement at Lordstown Local Schools.”