In December 2011 Algonquin estimated that they would end up paying Loyalist Township $300-400,000 in real estate taxes each year on the project. Not bad for a project that was budgeted in the hundreds of million dollars. But that was 2011. Now it is 2012 and they’ve reduced their estimate to $100-150,000.
One of the excuses offered by the participants for signing their leases was that the additional revenues would be used to improve the roads etc on the Island. I guess they were thinking of Wolfe, where in addition to the taxes there’s an “amenity” payment of $650,000. Aside from the always dubious idea that Loyalist Township would ever actually spend that money on Amherst, now there’s no amenity (thanks to the Green Energy Act, which took away the locals’ ability to negotiate such things) and not even very much tax revenue.
UPDATE – January 31, 2012. Duncan Ashley, who is Amherst Island’s elected councilman, commented that my numbers were off, and after looking at the Algonquin notice more closely I see where I erred. Even though the payment is “to the township”, the new amount gets divided among 3 parties: the Township, the County (Lennox and Addington) and the schools. So Loyalist itself ends up with only about a third of that money. So it is even worse than I thought. Thank you Duncan for setting me straight.