LYONS FALLS — With ReEnergy’s former biomass energy facility in Lyonsdale only partially demolished and the hand-over deadline for the cleaned 46-acre property fast approaching, the company sought, and received, an extension.
In July, the Lewis County Industrial Development Corporation acted on behalf of the town of Lyonsdale, South Lewis School District and the county by negotiating a deal in which the Latham-based company would demolish and clean up everything on the site except the fuel-yard infrastructure and utility interconnection, to an environmentally acceptable level.
The cleanup process of the 3823 Marmon Road facility was expected to be completed by Oct. 15 when the property could be signed over to the IDA.
However, the company recently requested an extension until Dec. 31 for both transferring the property and paying the $22,000 in lieu of taxes, or PILOT, for Lyonsdale.
IDA Executive Director Eric Virkler said that while the board was willing to grant the deadline extension on the property hand-over, ReEnergy is still expected to make the cash payment by the 15th.
The agreement was made after ReEnergy informed the IDA in December that it was going to default on its final $100,000 PILOT.
“The alternative was to let them default on the payment, which would have required the county to make the town and the school whole, paying out what would have gone to them from the PILOT,” Mr. Virkler said.
The property is to be transferred to the IDA in “ready” condition to be re-marketed and sold.
Two solar companies and a company that uses “pyrolysis,” a process that uses high temperatures to turn wood into other products, have shown interest in the property, Mr. Virkler said.
The 22-megawatt biomass-to-electricity energy facility had used material from logging and sawmill operations to produce an average of 162,000 MWh of electricity per year.
ReEnergy closed the plant in 2017 because it no longer had a contract to sell renewable energy certificates to the New York State Energy and Research Development Authority.
The energy company acquired the Lyonsdale facility in March 2011 from Central Hudson Enterprises Corp., Poughkeepsie.
ReEnergy Black River still owns and operates the Fort Drum biomass facility.