Pact for gas-fired power plant gets council’s OK

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When Mayor Joseph Polisena addressed Tuesday’s Town Council meeting regarding proposed resolutions, he believed the future of the town was at hand.

On Feb. 4, Johnston Clean Power LLC acquired an option to purchase property at 70 Shun Pike for the purpose of developing a 225-megawatt, combined cycle, natural gas-fired power plant. The property is currently a brownfield site owned by Rhode Island Resource Recovery Corporation (RIRRC).

“What we’re doing here is securing the future of Johnston,” said Polisena of the proposed resolution. “This agreement is good for the town, and of course it’s good for Clean Power LLC. This area of Shun Pike is becoming a Mecca for renewable energy.”

The agreement will see Clean Power provide a payment in lieu of taxes – also known as a PILOT or stabilization agreement – for a period of 20 years, beginning with the initial operation of the facility. In the first seven years, the payment is $250,000 per annually. During years 8 through 10, that figure rises to $345,000, with additional annual increases that will eventually reach $421,000 by the 20th year.

This will be the third power plant in the area. Two are currently in operation, and there’s a proposal for a food waste power plant being developed.

Polisena said Clean Power’s facility is meant to actively operate for less than 1,000 hours annually, and only at peak power usage times.

“They’re going to spend about $250 million and create hundreds and hundreds of construction jobs, not to mention the full-time jobs that become available once the facility opens,” Polisena said. “The developers are in the process of putting their application together to the federal government, which requires among other things comprehensive information on all financial matters, including their pilot agreement.”

The council gave the agreement its unanimous backing. Approval was necessary for the developer’s application to move forward with the federal government. It is anticipated construction of the plant will begin in 2019.

“I’d like to see next a huge solar powered plant in the area, to really put us on the map,” Polisena said. “I can tell you we’ve negotiated the best, and I repeat, the best possible deal for the citizens of the town.”

In other business Tuesday, the council reviewed several business requests, and six business operating licenses were granted approval: Spirit Halloween, a seasonal Halloween retail store at 1386 Atwood Ave.; Rhode Island Bartending School, a bartender training facility at 1395 Atwood Ave.; JC Landscaping, a lawn services company for phone calls only at 63 Archer Ave.; M&P Cleaning Services, a housekeeping and cleaning service seeking approval for phone and mail usage at 21 Flanders St.; Gorton’s Refreshments LLC, doing business as Del’s Lemonade at 1501 Hartford Ave., for a transfer of a license; and Dreamland Learning Center Inc., a child care center at 1253 Hartford Ave.

One business liscense, VIP Entertainment located at 2111 Plainfield Pike, was postponed for lack of payment to the Police Department.

“I think they still owe us from [police] details, and I would ask the council not to grant a license until they pay their bill. If not the taxpayers have to pay for that,” Polisena said.

A representative for the business was not in attendance, however the amount owed to the town was $931.50.

Another business license was denied. Urelax Center, at 1500 Atwood Ave., was seeking a business operating license for holiday sales dealing with reflexology, upper back and body rubs.

“This is probably because of a two-page police report stating prior issues in Massachusetts and suspension of licenses there,” said Council President Robert Russo, when asked for the reason for the unanimous council denial.

Council members also addressed their constituent requests during an open forum. Councilman Richard DelFino III asked for a handicapped parking sign per a request at 65 Walnut St., and a traffic study on Priscilla Lane after residents voiced concerns about 18 wheelers using the road to access the business at the end of the street.

Councilman Anthony Verardo had two requests for Lewis Drive – one for new “no parking” signs to replace old faded ones, and another for a “dead end” sign on the road, which currently does not have such signage.

Councilman David Santilli addressed Dyerville Avenue residents’ concerns over debris on the road from the Metals Recycling plant, as well as graffiti that was on the fences of the road.

Russo asked the mayor for an update on the football field at the high school and recent concerns of trespassing and possible damage.

“I believe there were six people who were given citations this week who happened to jump the fence, and out of those six people, two were adults. They were given citations, and our concern with them jumping the fence is if they get injured,” Polisena said. “I understand that one of them has been trying to make phone calls not to pay the fine, but if I get struck by lightning that day, I’ll be in here in the court on a stretcher, because it’s ridiculous.”

The council also approved a resolution awarding a bid and authorizing the mayor to enter into an agreement for the statistical revaluation of properties within the town.

“We thought we were going to be able to hold this off, because there was legislation making its way through the General Assembly, and it was to put these statistical revaluations throughout the state on hold,” Polisena said. “We’ll probably spend over $300,000 for this revaluation. Unfortunately we have to go through with this, and this is a budget item.”

Lastly, about 10 members of the Auburn Avenue and Oneida Street neighborhood addressed the council regarding ongoing flooding issues in their neighborhood. Polisena and Public Works Director Arnold Vecchione stated they would have engineers look at the situation to provide solutions, and would advise residents within 10 business days of progress.

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  • aricci

    As usual, such an important agreement was not presented at a special meeting so that the public (the ones paying for it) would be able to have input. The first gas power plant at the landfill did this same thing and then sold the deal for a profit without ever having any intent on actually building a facility. Did the mayor put a clause in this agreement that the pennies on a dollar agreement could not be sold? What would the developers actual tax bill be without this back room deal? Another nail in the Johnston coffin. Word travels fast that there is a town in Rhode Island that can be bought at the lowest price so expect more of this as long as we keep putting this level of "representatives" in office.

    Thursday, August 13, 2015 Report this