Time to decide on school district wind farm

Now, the hard part begins.

For months, Community Unit District 300, Keeneyville Elementary District 20 and Prospect Heights District 23 have been exploring building a wind farm in downstate Stark County.

The districts have gone through several financial models, finally settling on one they think will work. The latest model would use a mix of private investment, federal grants and tax incentives to fund the project.

But that's only on paper.

Over the next few months, officials in the three districts, their consultants and their lawyers will put the financial model through the paces to see if it is economically feasible.

That is only if the District 300 school board officially signs off on an agreement formalizing its partnership with the two other school districts and initiating the intensive development phase of the project.

The cost of simply exploring the feasibility of the project is not negligible, however. Officials estimate the three districts will be on the hook for $2 million in development costs and $150,000 in legal fees before one turbine even goes in the ground.

Of course, school officials and their advisers have factored that cost into models of the wind farm's viability, and those bills would be paid by bonds sold by the partnership, not the districts' operating funds.

But that assumes the districts proceed with the project. As District 300 officials pointed out this week, the school board could decide a few months from now to pull out of the partnership - even if the wind farm is viable.

What happens then? According to officials, District 300 would still be liable for its portion of the development costs - unless the consultant, Heston Wind, is able to sell District 300's stake in the project. Mind you, 80 percent of $49.5 million, the estimated construction cost, is nothing to laugh at.

Officials were quick to point out this week that board members would have little reason not to move forward if the numbers check out and the rest of the groundwork is laid for the project.

But people decide against seemingly sound investments all the time, and they do so for valid reasons - an aversion to risk-taking, the uncertainty of any revenue-generating venture, the debt required to finance large projects.

Illinois's budget difficulties don't seem to be getting better. The state still owes District 300 $12.3 million from the 2009-10 school year, and the district is set to negotiate a new teacher's contract during the upcoming school year.

All of which means the District 300 board needs to decide now whether it will proceed with the wind farm if the project is economically feasible.

There's always a chance board members could get cold feet. But unlike a bridegroom, if District 300 skips the ceremony, it will be out $2 million.

As District 20 Operations Director Gary Ofisher put it this week: "If they do feel uncomfortable, they should decide now."