Village Farms ‘definitely wants to be a part’
PRESIDIO –– The Geothermal Working Group convened at the Presidio Municipal Development District (PMDD) office at 5 p.m. on Wednesday, August 28. Local leaders and business representatives met to hear a presentation by Dub Taylor of the Texas PACE Authority as well as insights from Dr. Michael Bledsoe, vice president of Food Safety and Regulatory Affairs at Village Farms, and Chandra Eggemeyer, community relations specialist for West Texas with the Governor’s Office for Economic Development.
Trey Gerfers, who has been working on geothermal for Presidio County over the past couple of years, kicked off the gathering with a recap of the last meeting. He highlighted the critical role that federal and state agencies, such as the Department of Homeland Security, the Texas
Department of Transportation, and the U.S. Department of Agriculture, will play in shaping the final layout of Presidio’s port of entry and associated industrial facilities. Gerfers emphasized that closer coordination with these authorities is crucial, pointing to the need for strategic planning to ensure the optimal placement of geothermal infrastructure.
John Kennedy, city planning consultant with the PMDD and City of Presidio, echoed these sentiments, noting that Presidio has historically lacked influence in key decisions affecting its development. He assured the group that efforts are underway to engage these agencies more effectively and to secure a more prominent role for Presidio in the decision-making process.
Dub Taylor of the Texas PACE Authority then launched into his presentation. The Texas PACE (Property-Assessed Clean Energy) Authority is an “innovative financing tool” using private capital secured by a “special local property assessment” that remains in place over the term of the loan. Interest rates are generally reduced by half a percent to 1% as compared to conventional financing based on the assessment to be paid for the project. In addition, there is always the option to refinance if interest rates decrease during the life of the loan. According to Taylor, the borrower is “not necessarily locked in.”
PACE is also unique because it provides for certain improvements to be made with the loan payments spread out over a much longer period than with a conventional loan, thus reducing the upfront debt load while increasing net operating income. PACE-eligible improvements include projects that reduce energy or water usage or generate power onsite. PACE “is a very good match for any project with high capital costs up front and long-term benefits,” said Taylor. “And geothermal certainly meets that definition.”
The geothermal electricity plant will likely be funded with the grants available to rural, low- income communities like Presidio County. But these grants often require the community to provide matching funds. Taylor stated that PACE is well acquainted with the “stacking of financial layers,” including grants, cash, and tax incentives and credits, to bring a project to fruition and has often provided matching funds in the amount of up to 25% of the value of the property “post-project.” For example, if a piece of property costs $1 million and the improvements to be made to that property bring its value to $2 million, then PACE could provide up to $500,000 toward the completion of those improvements. Taylor also emphasized that the timing for the geothermal project could not be better, since the Presidio County commissioners recently agreed to participate in the Texas PACE program, thus providing access to this valuable source of capital within the county.
Bledsoe of Village Farms expressed that his company is “seriously interested” in the potential possibilities of geothermal. After speaking with his CEO, Bledsoe affirmed that they “definitely want to be a part … because we’re part of this community.” He also explained that Village Farms has been expanding its operations in other parts of the world, especially in the cannabis sector, “with enormous benefits” for the local communities. And he looked forward to exploring the opportunities for expansion afforded by geothermal in Presidio County.
Chandra Eggemeyer with the Governor’s Office expressed strong support for the geothermal project, offering to facilitate connections with the U.S. Economic Development Administration and the USDA. Presidio County has a lot of “good qualities,” she said, that could be attractive to companies that are approaching the Governor’s Office about economic development opportunities.
As interest in the Presidio geothermal project continues to grow, representatives from potential funding sources, including the North American Development Bank and the Water Finance Exchange, are slated to present at future meetings.
The next meeting of the Geothermal Working Group is scheduled for September 11 at 5 p.m. Contact John Kennedy at john@bigbend.bike for more information.
