Assemblyman Scott Gray and Convergent Energy and Power Announce Host Community and Education Contribution Agreement
Satisfactory Resolution of a Four-Year Tax and Assessment Dispute in Lyme and Chaumont; Anticipated Resolution of Litigation
WATERTOWN, NY – Assemblyman Scott Gray has helped broker a resolution between Convergent Energy and Power, a leading provider of energy storage solutions across North America, and Jefferson County, the Town of Lyme, the Village of Chaumont, and the Lyme Central School District. This resolution establishes a Payment in Lieu of Taxes (PILOT) agreement and financial distribution framework that resolves a long-standing dispute involving taxation, assessments, Real Property Tax Law §487 and related PILOT arrangements that Convergent proposed to the town in 2022.
While the Lyme Central School District accepted the offer in 2023, the Town of Lyme did not approve it and did not offer a counterproposal within the timeframe required under law. Convergent, therefore, was not legally obligated to provide the town any PILOT, though it continued fulfilling its tax obligations to the school district by paying taxes each year in anticipation of reaching an agreement with all taxing jurisdictions.
This resolution now provides the necessary clarification for local governments, the school district and other community members. During this four-year period, Convergent continued to pay all taxes it was assessed, while discussions persisted over the appropriate tax treatment of the solar and battery storage projects. The agreement creates a fair, transparent approach and resolves the dispute.
The final framework features the following key components:
- A separate agreement with the Lyme Central School District, including an education contribution component aligned with the broader resolution.
- A Host Community Agreement with Jefferson County to be administered by the Industrial Development Agency for distribution to the county, town and village.
- A comprehensive settlement that concludes the ongoing litigation and provides a clear foundation for future compliance and administrative practices.
Assemblyman Gray remarked, “Hosting major infrastructure involves responsibilities that extend beyond good intentions, ranging from emergency preparedness to ensuring the provision of local services. This agreement reflects the community’s longstanding desire for a practical, fair and transparent resolution that brings stability and peace of mind.”
As part of broader efforts to secure more funding for the local community, Assemblyman Gray shared that his office has secured a $50,000 grant, administered by DASNY, to assist the Chaumont Volunteer Fire Department with equipment purchases.
Gray praised Convergent Energy and Power for its constructive engagement following outreach efforts last fall.
“Following my October letter emphasizing the importance of reaching a fair agreement, Convergent responded positively and engaged proactively,” said Gray. “My thanks go to Convergent, as well as to local leaders across Jefferson County, the Town of Lyme, the Village of Chaumont and the Lyme Central School District, for their dedication to finding a solution that fosters stability and rebuilds trust.”
Bill Johnson, Jefferson County Board of Legislators, chairman, said: “I want to thank Convergent Energy and Power for their willingness to come to the table and negotiate a fair agreement between all parties.Assemblyman Gray needs to be thanked as well for his involvement in organizing the initial meeting between all the taxing jurisdictions.”
Mark Zegarelli, Town of Lyme supervisor, said: “The town of Lyme is looking forward to putting this issue behind us.We want to thank Assemblyman Gray and all those involved for their work leading to this agreement.”
Jim Morrow, Chaumont Village mayor, said: “I am glad that something fair was worked out for all parties involved.I would like to thank the Jefferson County Industrial Development Agency and Assemblyman Gray for their work on this agreement.”
Darrell DeMotta, president, Lyme Board of Education
Patricia Gibbons, superintendent of schools, said: “The Lyme Central School District is grateful to Assemblyman Gray’s office, our local government partners and to Convergent Energy and Power for coming together to reach a resolution regarding the district’s tax and Educational Contribution Agreement with Convergent Energy. The agreement will provide stability and certainty for the district’s tax levy base in future years, while also providing significant resources for the benefit of graduating seniors in the years to come. Thank you again to our partners for making this possible for the families of the Lyme Central School District.”
Johannes Rittershausen, Convergent Energy and Power Co-CEO, said: “Our company was built around the idea that by working together, we can solve tough challenges, like getting power to communities where the grid can’t provide it. We try to do what’s right in the communities where we operate,” said Convergent Energy and Power Co-CEO Johannes Rittershausen. “In November, when Assemblyman Gray signaled his desire to revive the conversation about taxes, we asked him to convene a group that could make decisions on the unresolved questions about our future tax bills. We resurrected a proposal that we pursued in 2022 and worked with our partners in the North Country in good faith to strike this agreement that we feel is a win for everyone involved. We are excited to build on this partnership and the trust that was built, and we thank the region’s leaders for working with us and providing clarity.”