The Burgess BioPower plant in Berlin. (LISA D. CONNELL PHOTO)


BERLIN — Members of the city council reviewed the “first amended and restated” payment in lieu of taxes plan between the city, Berlin Station and its affiliate, Burgess BioPower LLC, an amount totaling $2,435,000.

The draft agreement, not yet fully finalized, was discussed in nonpublic session during the council’s Jan. 21 work session. A copy of the document was given to the Sun after the meeting.

The plan would allow Burgess BioPower LLC to emerge from bankruptcy and continue to operate as a 75-megawatt biomass plant.

Under the agreement, a payment in lieu of taxes, or PILOT as it is known, from Burgess is expected to be on a different, shorter schedule.

The original PILOT agreement between the city and Burgess began April 1, 2011, and was intended to go through 2033. Now, the amended dates remain April 1, 2011, and “is intended to cover the entire tax year starting April 1, 2024, through the first half of the tax year beginning April 1, 2026.”

Berlin officials seek payment owed to the city for property taxes due by Burgess. The taxes are considered “ad valorem taxes,” which are taxes based on the assessed value of an item such as real estate or personal property,” an online investment website notes.

The tax bill, as outlined in the proposed agreement, and anticipated payments, are $1,235,000 for year 2024 for June and December installments; $400,000 due June 2025; $400,000 for December 2025; and $400,000 for June 2026.

This is a temporary two-year PILOT agreement that will allow Berlin Station, LLC to emerge from bankruptcy and for the city of Berlin to get paid in the short term. This will also allow the city to negotiate a long-term fair and equitable PILOT agreement for Berlin Station, LLC.

The biomass plant transforms organic material, in this case low-grade wood, into energy. Renewable energy is produced.

Burgess BioPower filed for Chapter 11 bankruptcy on Feb. 9, 2024, and has continued to operate the 75-megawatt biomass plant with the help of debtor-in-possession loans.

lisa@berlindailysun.com

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