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City sues state to decertify Exelon tax break By Brendan Clogston
T
he City of Everett is suing the Baker administration to overturn the state’s ruling that the city can’t break off a tax break agreement with a power plant on Lower Broadway. The city has been attempting to overturn its 20-year Tax Increment Financing Agree-
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ment (TIF) with the Exelon Mystic Generating Station on Alford Street, the city’s larger industrial taxpayer and the largest power plant in the state, for a couple of years. Though city officials have been reluctant to speak publicly on the issue for fear of inadvertently affecting the city’s legal position, the basic dispute is clear: the city thinks that Exelon owes the city more money than it’s been paying after additions at the site increased its value far beyond what was evaluated in the late 90s, when the agreement was negotiated. In the late 90s, the station’s current owners, Sithe Energies (acquired by Exelon in 2003) undertook a $604 million project to demolish the site and construct a new natural gas plant. In the midst of this project, Sithe negotiated a TIF with the City that promised to create 1,100 construction jobs and 35 permanent full-time jobs, in exchange for a Payment in Lieu of Taxes (PILOT) agreement with the City. Under this agreement, the company paid $1.5 million to the City in 2000, as well as a one-time, $1 million contribution to the refurbishment of the Central Fire Station. The plant was to make a payment to the city of $17.9 million a year during the first decade of the agreement, and $15 mil-
EXELON | SEE PAGE 9
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