CONNEAUT — The first company to make a pitch for a wind turbine farm on Conneaut's East Side was also the first to see its proposal rejected by City Council.
By a 5-2 vote, council Monday night rejected a contract with SGR Site Associates of Willoughby that would have sold the company nearly 160 acres of land within the East Conneaut Industrial Park. The contract, tabled earlier this month for further study, was revived for a deciding vote at Monday's meeting.
The measure would have given SGR a two-year option on the land and the chance to buy the property for $2,400 an acre. With the contract, SGR planned to use the option period to study the study and site and gauge its potential to host several of the mammoth turbines.
SGR officials have said the city-owned land was flanked by larger parcels to the north and south. The city land was needed to create a massive 2,500-acre tract split evenly between Ohio and Pennsylvania. SGR leadership said there was a chance the city land would be used primarily for access roads and not host a turbine.
Negotiations on the SGR contract began months ago. While some members were initially enthusiastic about the transaction, others believed the city was being paid less for its land than the adjoining property-owners, and also were leery of selling the land instead of leasing.
SGR also faced competition from two other companies that expressed interest in wind-related development projects. Early this month, council heard from an energy consultant who advised the city to move cautiously and carefully in its dealing with wind company developers.
Voting against the contract were Council President James Jones, Councilman-at-Large Chris Castrilla, Ward 1 Councilman Dave Campbell, Ward 2 Councilman Charles Lewis and Ward 3 Councilman Greg Mooney. In favor of the contract was Councilman-at-Large Jacob Chicatelli and Ward 4 Councilman Tony Julio.
Last week, Chicatelli said the city was better off accepting the cash offered by SGR rather than risk future revenue on a per-turbine lease deal. There's no guarantee any turbines would rise on the city-owned land, he said.
Julio, in his defense of the contract, said council hadn't seriously considered SGR's recent offer to lease — not buy — the land. Also, money from the sale could be pumped back into the industrial park, he said.
Opponents gave various reasons for their vote. Castrilla said too many questions were unanswered on the deal. Mooney said information he requested, such as a tentative site plan and the status of the adjoining landowners, never materialized.
Campbell thanked SGR for its patience, but said he still believes the proposed purchase price was well below the market value. He also felt the job-creation potential of a wind farm was lacking and was unsure about SGR's financial stability.
The future of a wind project in Conneaut is uncertain. It was not immediately known if SGR would submit a different contract for council's review.
Some members were intrigued by BQ Energy of New York, whose staffers have developed wind farms across the country. Representatives came to town a few weeks ago, and after speaking to council were told they may be asked to submit a proposal.
Jones and Finance Director John Williams visited a BQ-managed wind farm in Lackawanna, N.Y., on Friday.
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