The Jeff Davis Parish Police Jury agreed Wednesday to support an industrial tax exemption for a solar powered generation facility planned in the Topsy area.
The Police Jury backed the request from Aypa Power to participate in the state’s Industrial Tax Exemption Program (ITEP) and set a public hearing for June 24 for the Cajun Crescent Energy Center project .
The ITEP exemption has already been granted by the Louisiana Board of Commerce and Industry, but it needs the blessing of a newly formed local ITEP committee, according to Police Jury President Steve Eastman. The three-member committee will include the police jury president, school board president and the sheriff.
“The way I understand it, the state has already granted it, but it comes down to the locals and the state will take into consideration whether we grant it or we don’t grant it,” Eastman said.
Cajun Crescent Energy is seeking an industrial tax break for construction of a $440 million facility which will span across 2,000 acres of pine plantation across rural Jeff Davis and Calcasieu parishes. Nearly 400 acres of the project will be located south of Cormier Road in Topsy in northwest Jeff Davis Parish.
The project is expected to generate up to 300 jobs during peak construction and will support new industrial loads’ demand for clean power while increasing local electrical grid reliability.
“I think the key thing on this project is that it will not have a negative impact to any parish roads because there’s no access to any parish roads,” Parish Administrator Ben Boudreaux said. “At the same time it is going to provide economic benefits for that area, specifically for that fire district and that drainage board.”
It is estimated the parish will receive $800,000 within the first year for the purchase of material and equipment including steel, tractors and solar panels, with additional taxes received every year after.
The parish will also receive additional revenue for property taxes which help support local schools, fire and police protection, roads and other infrastructure.
Eastman said the parish is currently earning about $1,338 a year on property taxes for the 400 acres. It is estimated to receive $138,402 a year for 5-10 years with the ITEP in place.
“It is going to influx money into the drainage board and fire district on an annual basis, which is something they desperately need,” Eastman said.
The parish will not receive any revenue from the sale of the electricity. The project is expected to generate up to 375-megawatts of electricity.
Forrest Forster, vice president of development at Aypa Power, said the project will be largely out-of-sight and have a minimal impact while boosting the economy and tax base.
The parish is projected to receive more than $10 million in project-driven taxes vs. current use taxes over the next 30 years, he said. Of that $1.6 million will be generated from near-term construction local sales taxes.
“That’s $800,000 for the police jury, but in total for the parish that’s $1.6 million,” Forster said.
Forster said the company has been working to advance the project, including soliciting feedback from the community. An open house was recently held at Gillis Elementary School to discuss the project.
“The meeting was well attended and we got some good feedback there, reinforcing some of the plans we already have,” Forster said. “We are continuing to enhance some of those plans around setbacks and buffering. We have also done more to integrate wildlife management corridors.”
Plans for the facility include a 50-foot landscape buffer to minimize public visibility and a 500-foot setback from any dwelling.
The company is also working with Sheriff Kyle Miers on reinforcing camera monitoring throughout the facility.
“We plan to be here for the long haul and be a good community member so we are thinking about what that means as far as donations to places like the fire department and opportunities to reach out for education,” Forster said.
Construction of the facility is slated to begin in 2025 with operations underway by late 2026.
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