April 5, 2005: PILOT Agreement Terms Under Discussion for Cogeneration Facility

FULTON, NY-- The County of Oswego Industrial Development Agency (IDA) is working in cooperation with the City of Fulton, Fulton City School District and the County of Oswego on matters involving a Payment in Lieu of Taxes (PILOT) agreement between the IDA and Fulton Cogeneration Association, L.P. (FCA).

Lion Capital Management Group (LCM), its partner Fimab, Promeneur and Hausmann, Inc. recently acquired the Fulton Cogeneration Association, L.P. (FCA) from El Paso Power Merchant of Houston, Texas.

The cogeneration plant is a 45-megawatt, natural gas-fired, combined-cycle power plant facility located adjacent to New York Chocolate & Confections Company (NY3C) in the city of Fulton. The plant has been in operation since June 1991 and is located on approximately 1.2 acres. The plant was originally established to sell electricity to Niagara Mohawk (and later to the spot electricity market) and steam for Nestle (now NY3C).

“The IDA recognizes the significant and important role that the FCA facility plays relative to providing steam resources to the NY3C plant for both production and heating requirements. The future success of both FCA and NY3C are extremely critical and important to our economic base and job creation. These factors weight heavily on coming to both a short term and long term solution that is supportive of economic growth and stability,” said L. Michael Treadwell, CEcD, IDA secretary/treasurer.

According to Treadwell, the IDA, in partnership with all taxing authorities, is supportive of looking at various options relative to revisions in a PILOT agreement or the transference of the property to the tax roles at a fair and reasonable assessment valuation for upcoming years.

“The objective of the negotiations between all parties is to find solutions that satisfy the terms and conditions of the 2005 PILOT agreement which would be mutually beneficial to all parties,” he said.

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