Lorain County, power company settle tax dispute

Avon Lake Schools, the Lorain County Auditor’s Office and NRG power company have settled a dispute over the financial value of the company’s power plant on the Lake Erie shore.

The legal dispute dates back to at least 2013 and could have taken another two years to resolve as the case landed in the Ohio Supreme Court, said county Auditor Craig Snodgrass.

Instead, the county, school district and power plant have agreed on a plan for property taxes covering the time from 2013 to 2020, Snodgrass said.

NRG officials are pleased to settle the case, said company spokesman David Gaier.

“We’re pleased to come to an agreement with all the taxing jurisdictions in a way that gives us all certainty in the future and in a way that is fair to all the parties,” Gaier said.

In 2013, the county auditor’s office estimated the value of the Avon Lake Generating Station, 33570 Lake Road, was about $54 million. NRG contested that value, arguing it should be appraised at $10 million at most, Snodgrass said.

“I brought in an expert because we’re going to fight for these values, not because we’re trying to go after the taxpayer, but we want things to be right,” he said.

The dispute over the financial value translates into real-world money for Avon Lake schools and the other political subdivisions that receive money from property taxes, Snodgrass said.

Every $1 million change in property valuation amounts to more than $28,000 in property taxes paid or not, Snodgrass said.

In the legal case, the Ohio Board of Tax Appeals ruled the value of the power plant should be about $38.66 million, according to records from the Ohio Supreme Court.

In the settlement, the county, schools and NRG agreed to maintain the real estate value for the tax years 2013, 2014, 2015 and 2016, Snodgrass said.

The value of the power plant will be reduced in tax years 2017, 2018, 2019 and 2020, he said.

Avon Lake schools, the Avon Lake Public Library and the county will not have to refund any money to NRG related to real estate taxes, according to the settlement.

There will be an estimated $2.3 million personal property tax credit applied to the taxes paid by the company for tax years 2017, 2018, 2019 and 2020.

Based on the settlement, the plant would have an eight-year average value of $39.5 million, Snodgrass said.

“Yes, we’re going to have to drop the values each year for the next four years to accommodate that average, but the key part is that we’re not going to be giving out refunds,” Snodgrass said.

The settlement also advances closure for the legal dispute, which has stretched for years, Snodgrass said.