HomeMy WebLinkAbout2004-06-28 Applicant Ltr to CCANIL
XCUIEnergy SM
1103 King Plant Road
Bayport:, Minnesota 55003 -1000
June 28, 2004
City of oak Park Heights, M N
Mayor, council Members, Management and staff
14168 oak Park Boulevard No.
P.O. Box 2007
Oak Park Heights, MN 55082 -2007
Dear city of oak Park Heights Representatives,
I would like to take a moment of your time to share with you information
regarding the positive impact the Metro Emissions Reduction Project (MERP) will
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have on the surrounding areas we serve and particularly the city of Oak Park
Heights. our MERP communication effort strongly addressed the positive
environmental changes that will be occurring as a result of the project, but as a
p ower p y plant host city we are aware of your concern regarding the direct benefit
that you will enjoy. There will be several changes occurring at King plant
including remodeling and improving much of the existing equipment, adding new
operating equipment, as well as the new environmental equipment that will serve
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the plant.
Over the past many years, King plant's management and employees have
ap preciated the close and positive working relationship we have had with the city
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of oak Park Heights. As Director of the A. S. King Plant, I feel a strong
commitment to continuing and strengthening this relationship. To meet this goal
feel it is important to share information, as it exists, regarding the tax base
revenue the cit y of oak Park Heights may anticipate receiving following the
completion of the MERP project at the A. S. King plant.
This letter rovides an estimate of the property tax revenues from the King plant
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reflectin g the impact of the MERP project. The actual property tax could be
different from this estimate if, for example, actual project costs are different from
current estimates.
Estimated total property tax from the King plant for 2005 (based on taxable value
at 1/02/04) _ $2.0 M
The MERP J
ro`ect started in 2004 and will be complete in 2007, with most of the
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p roject costs failing in the years 2005 2007. The work affects the property
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taxes p aid in the years 2000 through 2000, but the effect on 2000 taxes is
minimal.
Over the period from 2000 to 2009, estimated property tax from Ding is projected
to increase from about $2.0 M paid in 2000 to about $4.2 M paid in 2009.
If the actual project cost is less, the property tax amount will be less. For
example, at 10% less project cost, property tax payable in 2009 would be about
$3.8 M. Also, these tax figures reflect Xcel Energy's estimate that about half of
the total value of the MERP project would qualify for pollution control tax
exemption. The MPCA makes the final determination of what equipment qualifies
as pollution control tax exempt.
In sharing this information with you I hope I have addressed some of your
questions and concerns. However, I want you to be aware that as our process
moves forward we remain available to address your questions and comments.
Sincerely,
P
Mark J. Fritsch
Director, Allen S. King Generation Plant