Editor’s note: This article is by Domenic Poli, of the Brattleboro Reformer, in which it was first published May 22, 2015.
BELLOWS FALLS — The village of Bellows Falls, the town of Rockingham and the public education system of Vermont could all take a big financial hit if Trans-Canada wins a tax appeal regarding its dam at 20 Mill St. in Bellows Falls.
Those in charge of the North American energy giant disagree with some of the components that went into an evaluation a state-hired appraiser gave of the company’s hydroelectric generation facility in 2012 and the issue went to court this month. TransCanada insists the dam is worth $67 million, but Rockingham and Vermont maintain the value is more than $108 million — a difference of $41 million. The lower the facility’s appraisal, the less the corporation will have to pay in taxes.
Municipal Manager Willis D. “Chip” Stearns II said if Trans-Canada wins the appeal, it will be owed $3.6 million, plus interest, by the town, the village and the Vermont education system. Stearns explained this figure comes from the 2012, 2013 and 2014 tax bills TransCanada has paid. He also said there would be 1 percent interest charged per month.
The two parties were in Windham Superior Court: Civil Division in Newfane from May 11 to May 13.
They finished submitting evidence and presenting witnesses, but TransCanada external communications specialist Sharan Kaur told the Reformer both parties have until June 26 to submit post-trial memoranda and can submit reply memoranda by July 3.
“While there is no deadline for the court’s decision, we anticipate that the court will issue its decision in late August or September,” Kaur said.
Judge John Wesley is presiding over the case.
Bellows Falls resident Doug MacPhee, who once served on the Rockingham Board of Civil Authority, said a victory for Trans-Canada in this case would be detrimental to the village, town and state.
He said the town and village would likely have to secure a bond to pay TransCanada the money it would be awarded.
MacPhee said Trans-Canada represents 23 percent of Rockingham’s Grant List and 41 percent of Bellows Falls’ Grand List.
“It could be a very serious thing for this town and village,” he said. “The case is over. It’s in the hands of the judge. He has a lot to look at.”
