The New Jay Solar project has been canceled.
Jay County Council terminated a tax abatement with Hodson Energy for its proposed New Jay Solar project Wednesday.
County attorney Wes Schemenaur informed the council he recently received an email from Hodson Energy stating the company will not move forward with its solar project in Jay County.
Hodson Energy had been planning a 39-megawatt, 311-acre farm in Richland Township just east of Dunkirk near The Andersons Grain Elevator. The company first sought approval from county officials for the project in December 2023. Last year, Hodson Energy amended its agreements with the county, pushing its expected completion date back to December 2028.
“They were not able to secure a buyer for their electricity,” said Schemenaur. “They have decided it’s not a feasible project for them.”
Hodson Energy’s tax abatement with the county would have abated 100% of property taxes over a 10-year period, saving the company $4.4 million in property taxes. The company had agreed to provide $2.156 million in economic development funds to the county over four years.
Hodson Energy was the last of four companies to approach the county with plans for a solar farm.
Other prospective farms include Scout Clean Energy’s Sun Chief Solar northeast of Redkey, Invenergy’s Skycrest Solar in northwest Jay County and Leeward Renewable Energy’s Rose Gold Solar north of Dunkirk.
Sun Chief Solar received approval from Jay County Commissioners on Wednesday for a more than $5 million bond tied to its decommissioning agreement. (See related story.)
Skycrest Solar was approved for a limited construction permit last year.
Invenergy planned to seek a full construction permit later, with timelines requiring the company to have the solar farm complete by the end of 2028.
Rose Gold Solar is expected to start construction by June 30, 2027, with the work to be completed by the end of 2028.
Council members Matt Minnich, Cindy Bracy, Bryan Alexander and Faron Parr, with Michael Brewster, Randy May and Harold Towell absent, terminated the agreement with Hodson Energy.
The related economic development agreement will likely be considered for termination by Jay County Commissioners next week.
Also Wednesday, the council agreed to cover a $123,776 funding gap for Jay County Community Corrections, approved at least 2.5% raises for county employees and OK’d various requests from department heads.
Jay County Community Corrections executive director Yvette Weiland and deputy director Gary Hendershot shared a presentation with council about the department’s responsibilities.
Launched in 2000, the department oversees home detention sentences for offenders. The department also oversees Community Transition Programs for those transitioning back from prison life to society.
While on house arrest, offenders are actively contributing funds back into their community compared with those serving sentences in jail, Hendershot said.
Since 2020, the county has saved $261,450 utilizing home detention sentences for juveniles. Between 2020 and 2025, the county saved more than $1 million offering home detention sentences for adults.
Jay County Community Corrections has been funded through state grants since its founding. Recent years have shown a drop in crime as well as participation in the local program. New rules for decreasing sentences, “time cuts,” have also decreased participation.
This year, the state cut $20 million from its community corrections budget. In May 2026, Jay County Community Corrections’ program overview with the state also led to a decrease in funding.
“They stated that the majority of the individuals we supervise are a local problem,” Hendershot said. “It’s juveniles, misdemeanors and low-level felonies, and that’s not a state problem. I argue, judges argue, that if we can nip it in the bud early, that becomes not a state problem, that’s a good thing.”
Alexander voiced frustration with the state government’s choice to cut funding.
“I am so sick and tired of the state of Indiana telling local governments, ‘It’s your problem,’” he said. “I don’t understand this mentality. I think this punishes rural communities like Jay.”
He indicated there have been talks about restoring state community corrections funding in the next budget cycle.
Council members then agreed to fill the local program’s funding gap for one year.
Also, council members approved granting at least 2.5% wage increases for employees.
Minnich and county auditor Emily Franks shared calculations with council members for potential raises, showing the cost to push employees to 50%, 75% or 100% of the gap between their current salary and the midpoint for their salary as determined in a study by consulting firm Waggoner, Irwin, Scheele and Associates. They also presented options to include anywhere from zero to 3% raises for other employees already at the midpoint for their wage.
Minnich suggested granting 2.5% raises for employees already at the midpoint and, for those whose salary isn’t at the midpoint, increasing their salary to 75% of the difference. Council members agreed.
Additional requests from department heads that were approved Wednesday included $195,200 for various software, which includes a $127,292 conversion fee to new property tax software for Jay County Auditor’s Office and Jay County Treasurer’s Office; $55,120 to hire another heavy equipment operator for Jay County Highway Department; $50,000 for overtime and other compensation in Jay County Jail’s budget; $20,000 to hire an intern for Purdue Extension Office of Jay County; $19,500 more in Jay County Prosecutor’s Office’s fund for its deputy prosecutor; $11,022 for overtime and other compensation in Jay County Sheriff’s Office’s statewide 911 fund; and $10,000 to create a part-time chief deputy role for Jay County Coroner’s Office.
A request from Jay County Highway Department to hire an additional truck driver was not approved, with council members suggesting the additional heavy equipment operator could fill in as needed.
The council also forwarded another tax abatement request from Jay County REMC to Jay County Tax Abatement Advisory Committee.
Last month, council approved a 10-year real property tax abatement for the electric cooperative’s proposed warehouse and office. Improvements are estimated at $8 million, and the real property tax abatement will save Jay County REMC $682,347.60 in taxes.
Franks noted Wednesday the council had also received but not approved a personal property abatement request. The proposed five-year abatement would save the company $6,842.56 in taxes. Alexander suggested council forward the request to Jay County Tax Abatement Advisory Committee, with council members agreeing.
In other business, council:
•Agreed to a public hearing at 6 p.m. Sept. 30 for proposed changes to the local income tax rate. Council agreed to Franks’ recommendations in July to move forward with increasing the public safety allocation of the local income tax rate from 0.25% to 0.35% and decrease the levy freeze rate from 0.2% to 0.1%. The proposed changes include adjusting the certified shares rate from 1.25% to 1.15%.
•Made the following additional appropriations: $11,567.79 for Jay Emergency Medical Service training expenses and $3,200 for Ritter Strategic Services’ professional services involved with purchasing a new emergency responder radio system.
•Transferred $9,000 in the former Jay County Retirement Center budget from the meals fund to the gas utilities fund.
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