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NEW CUMBERLAND -- Four days after receiving approval from the Hancock County Commission, a new Payment in Lieu of Taxes agreement for Form Energy got the green light from the county Board of Education.
After being recommended by Superintendent Dan Enich, the PILOT agreement was approved unanimously by the school board Monday, establishing terms for a decade of revenue derived from the real property set to be occupied by the iron-air battery manufacturer in Weirton.
"This PILOT agreement has a 10-year table," Enich said.
During Thursday's county commission meeting, County Assessor Joe Alongi explained the PILOT agreement would allow for revenue to be provided to the county on the real property, even though it normally would not be taxable as it currently is owned by a tax-exempt entity.
Enich noted the county would receive $40,000 for each of the first two years under the agreement. In the third and fourth year, Form would provide 30 percent of what the normal tax rate on the real property would be, with it going up to 50 percent for years five and six, 70 percent in years seven and eight, and 90 percent in years nine and 10.
The agreement includes benchmarks for employees in order for those assessments to be used, with a minimum of 178 full-time employees needed in the third year, for example, and 750 full-time employees in year 10. In the event those employment measures aren't reached, the taxation percentage will be calculated on a pro rata basis based on the number of actual employees compared to the agreed-upon benchmark.
"After the 10th year of the agreement, it would be like any other business," Enich said, adding he had spoken with legal counsel for Form Energy earlier in the day, and was assured the company would reach 750 employees well before the 10th year.
Revenue from the agreement will be divided between the county and the school board. Schools Chief Financial Officer Joe Campinelli explained the greater portion of the taxes would be coming to the school board.
"Whatever they pay in the PILOT, approximately 70 percent comes to us," Campinelli said.
The remaining 30 percent would go to the county commission. Alongi noted Form also would be assessed personal property taxes on any equipment brought onto the property as part of its operations.
The first assessment under the PILOT will be made on July 1.
The company announced its plans to locate in Weirton in late 2022, having selected a site once used by Weirton Steel from a set of 500 candidates across 16 states. Ground was broken in May, with the first pieces of steel raised in July.