Visit Clean Line's website touting the reasons Arkansas landowners should be comfortable with the Department of Energy granting this private company the right of federal eminent domain against unwilling sellers, and what do you find? "The Solution":
So, when does "The Solution" become "The Problem"? When Clean Line says things like this:
Opposition to the Plains and Eastern Project has been screaming for months that, should Clean Line (CLEP) get its way at the Department of Energy (DOE), they will be exempt from paying ad valorem taxes to counties within the state on both: 1) the transmission facilities within the state, and 2) the property that would be taken via federal eminent domain by the Southwestern Power Administration (SWPA). Clean Line has been touting the "ad valorem taxes" they would be paying to counties in Arkansas for at least the last year in an attempt to garner support from someone, anyone, in our state. The examples of Clean Line stating this are numerous: Here, here, here, and here. I am sure there are more, but I don't feel like looking for them, honestly.
The truth of the matter: If Clean Line is approved by DOE under their proposed terms, ALL transmission facilities and property obtained by the SWPA via federal eminent domain would, in fact, be tax exempt.
The Problem:
Clean Line has plainly admitted on the first page of the "Agreement" that their facilities will not only be exempt from any ad valorem taxation, but also that any payments that are given to counties are completely voluntary. Unless, of course, each of the twelve counties agrees to the terms of CLEP's agreement that their representatives have been busy bees distributing to them recently. So, given that fact, why is Clean Line still saying that they are going to be providing "tax revenues" to counties in Arkansas along the route? I don't know, but someone with authority should ask them.
In addition, what happens to the tax revenues on the actual physical property that SWPA "opens up" via federal eminent domain? The portions of the parcels of land that would be owned by SWPA that property taxes are currently collected on would, presumably, become exempt from taxation as well. So, what happens if a large portion of landowners just say "no" in each county, and the SWPA is required to own a significant amount of parcels in those counties? What does that do to county revenues? Hypothetically, the revenues could either be a wash, or even a net negative.
The Problem:
In addition to plainly stating that they would be tax exempt in all counties, Clean Line is asking your county officials (you know, the ones you elected?) to guarantee them that the county wouldn't pass anything to "prohibit or materially burden the development, construction, or operation of the Project, or the enforcement of this Agreement" once it is signed. Read that a couple times for effect. Let's say landowners get really loud about this if it is approved. If your county has signed this agreement with Clean Line, you are powerless as a landowner to peaceably assemble and lobby your local government to do anything on your behalf against them. That seems important.
Further, Clean Line is setting the terms about how and when the "Agreement" can be terminated:
They do this by defining a "Company Default" and a "County Default" on page three:
So, if a "Company Default" is defined as a "failure of the Company to pay when due the amounts set forth in Section 2" and "such Monetary Breach continues uncorrected through January 15 of the following year", what is the recourse for the county if Clean Line just doesn't pay? Well, Clean Line tells the county that they can break the agreement, or...? Who knows? Take Clean Line to court to enforce the agreement, presumably spending taxpayer money to do so?
Also, who determines that the county has executed a "County Default"? It appears like Clean Line is attempting to define what that would be, too. So, what happens when Clean Line says the county has "Defaulted"? It appears like Clean Line can terminate the agreement with the county. So, what does the county do? Again, take Clean Line to court, expending taxpayer money to try to attempt to enforce a voluntary agreement from this private company, or just not receive any money from CLEP anymore and they become tax exempt again... just as they would have been had the county not signed their agreement and agreed to shut out a sizable portion of citizens of the county in the first place? That seems important, too.
Fourth Page:
The moral of the story here: if you are an affected party in any of the counties this monstrous private toll road would cross, if your county officials don't agree to shut you out of your right as a citizen to lobby your local government on your behalf, but instead to always side in Clean Line's favor: the county's not getting squat, PERIOD.
All that glitters isn't gold. Read carefully before signing any "solution" that Clean Line is offering... it may end up becoming the problem.
