Economic Impacts of Wind Power in Kittitas County: Final Report
SummaryEstimates the effect of the increase in jobs and local spending on property values, economic impacts, and tax revenues.
- Surveyed tax assessors in other counties.
- Reviewed available literature on property value effects.
- Used input-output model with data from two companies proposing wind projects in Kittitas County.
- Views of wind turbines will not negatively impact property values.
- Wind plant construction will have significant economic benefits.
- Wind plant operation will provide additional annual economic benefits.
- Property tax revenues will increase.
- Tax revenues to Kittitas County Government will increase.
Project Size: 390 MW potential
Number of Turbines: 260
Location: Kittitas County , WA
Geographic Scope: Kittitas County, WA
Turbine Ownership: Zilkha Renewable Energy (110 turbines) and enXco (150 turbines)
Type of Study: Pre-project
Timeframe of Data: n/a
Model: Input-Output and IMPLAN (Impact Analysis for PLANning)
Data Sources: Surveyed tax assessors in other counties and reviewed available literature to determine potential effects of wind farms on property values; estimated local economic impacts using an input-output model based on construction and operations data obtained from the two companies proposing projects in Kittitas Co.; estimated tax revenues using input-output model results based on tax rate and spending information obtained from Kittitas Co.
Assumptions: Assumed tax rates remained constant when estimating tax revenue; assumed value of each turbine as $765,000; property tax rate used is 1.35%; construction period predicted to last approximately one year.
Special Considerations: Did not consider the increases in costs or the provision of county services that the wind power plant might require; local/state taxes collected by State and distributed to County.
Lease Payments: 30% of the turbines will be built on land managed by the Washington Department of Natural Resources, for which a rental fee will be paid to the State, then returned to schools throughout the State. Annual rental rate: $4,500/turbine. Total amount: $351,000/year
Other Remuneration: $2,927 in all other taxes not mentioned above; $2,094 licenses and permits; $8,509 charges for services; $2,138 fines and forfeits.
Conclusion: The survey of tax assessors and literature shows that views of wind turbines will not negatively impact property values.