A tax agreement, along with a community host agreement, with Flatiron Energy to build a battery energy storage system (BESS) facility on Muzzey Street looks to bring $43 million into the city coffers over the next 20 years.
The council approved the agreements negotiated by Mayor Patrick Keefe and his administration at Monday night’s meeting.
The mayor said the city pushed as far as it could to get as much as possible from Flatiron in the form of a Payment in Lieu of Taxes (PILOT) agreement and the community host agreement. Keefe noted that given potential state and federal changes in how the battery energy facilities are regulated, the agreements give the city a maximum benefit under current regulations.
Or, as Council President Anthony Zambuto put it, the city had to strike “while the Flatiron was hot.”
While the city has been negotiating the deal with Flatiron, Keefe noted that the project still has to go through the permitting process and is likely about two years out from becoming a reality. Flatiron is also in the process of constructing similar facilities in the region, including in Chelsea and Everett.
The agreements, which would go into effect if the development starts commercial operations, are valued in the first year at $1.6 million for the PILOT and $600,000 for the community host agreement, according to the mayor, with the value increasing over the 20 year length of the agreement.
“Within the Host Community Agreement, the City has targeted investments in fire apparatus and training, deposits into the High School Stabilization Fund, and modest investments to support energy sustainability in the city,” said Keefe.
Through a separate agreement, Keefe said the city secured a commitment from Flatiron that the project will be 100 percent union built.
Fire Captain and Revere fire union president Kevin O’Hara spoke in favor of the agreement.
“When I first began research into BESS technology, I was not in favor of the systems due to several significant incidents that occurred around 2019,” said O’Hara.
However, O’Hara said he has done significant training and research, including traveling to Nevada for specialized BESS training.
“There have been substantial improvements in system design, construction, and modern safety features,” O’Hara said. “Emergency response procedures also advanced and became more effective. One important improvement is that these systems are no longer designed in fully enclosed units, which was a contributing factor to some of the early incidents.”
O’Hara said he is confident the fire department can continue to provide the highest level of service to the residents of Revere and ensure the safety of the firefighters.
“This confidence is contingent upon the resources and support that we have discussed and proposed with Flatiron being delivered as promised,” O’Hara said.
Several local trades union members also spoke in favor of the project, stating that it would bring jobs to Revere.
Several councilors noted that they were initially skeptical about the battery energy facility coming to Revere, but were more comfortable with the idea after doing additional research and meeting with Flatiron representatives.
“I was against this when they first proposed it down at the trailer park, but I did my research on these new manufactured battery storage facilities and they are streamlined, they are very safe, they are self-contained so there are a lot of plus sides,” said Ward 1 Councillor Jim Mercurio. “Of course, the better plus side is the money that the city will be receiving.”
Councillor-at-Large Michelle Kelley praised the mayor’s agreement, but voted present on the approval. She said the only reason she was not supporting the agreements was because she wanted to see Flatiron make a presentation to the council before the vote was taken.
“This did start in the $30 million range for the 20-year proposal, we did push and sweat and we hammered a little bit to get it to almost $44 million,” said Keefe.
The mayor also noted that Flatiron is looking to come before the council in July for another presentation on the project itself.
“I would ask that they come and present and give you all the time in the world to ask questions and then work with the community,” said Keefe.