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 http://www.heraldandnews.com/articles/2005/11/30/news/top_stories/top3.txt

Cob tax deal hearing scheduled

November 30, 2005 by ANGELA TORRETTA

The Klamath County commissioners will once again take up the proposed Cob power plant at a hearing Dec. 13.

County commissioners said Tuesday a Cob representative would be in town to discuss the enterprise zone. Commissioners and Klamath Falls City Council both agreed to grant the zone that would give tax breaks to the power plant if it were to be built.

The plant developers, Peoples Energy of Chicago, stirred controversy when it unveiled plans to build a gas-fired plant on farm land outside of Bonanza.

Peoples offered to pay $1.5 to $2.5 million a year, depending on the plant's size, to the county for 15 years instead of paying property taxes. The offer pleased commissioners Al Switzer and John Elliott. Bill Brown, a Langell Valley native, asked for the plant to pay its full share of taxes.

The agreement also calls for Peoples Energy, or anyone who buys the plant, to pay $500,000 for road repairs plus property taxes during the plant's construction. The construction should take about two years, and property taxes during that time would be about $4 million, said Paul Turner, Cob spokesman.

The deal wasn't finalized at the time and will also have to get final approval from the Klamath Falls City Council.

The commissioner's hearing room is located on the second floor of the county's government center at 305 Main Street. The meeting is scheduled for 10 a.m.

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