The small farming town of Oakesdale is hoping to see a boost to its economy as a result of the planned nearby 58-turbine Palouse Wind project for which construction is scheduled to ramp up next spring.

Residents of the 420-person community aren't sure yet as to how much growth the project might stimulate locally, but the estimated $170 million wind-energy project being developed by Boston-based First Wind LLC is to be situated in wheat fields seven miles west of town.

When completed in late 2012, the project will have an annual capacity of around 105 megawatts, which is enough electricity to power about 30,000 homes. Spokane-based Avista Corp. has entered into a 30-year power-purchase agreement with First Wind to buy the energy generated from the Palouse Wind project, which will help the utility meet ongoing state renewable-energy requirements.

Preliminary site work and the construction of access roads for the Palouse Wind project started early this fall, and some of that work still is under way, says Ben Fairbanks, Portland, Ore.-based business development manager for First Wind's western region.

While the bulk of construction is planned for next spring and summer, when between 150 and 200 mostly locally-sourced workers are expected to be on site, Fairbanks says there now are 10 to 15 people working on the project.

Fairbanks says that First Wind plans to hire all Washington-based subcontractors for the construction of the wind project, both because of state requirements and because it keeps project costs down.

He says the wind-energy company has partnered with Madison, Wis.-based RMT Inc., which specializes in the construction of clean-energy facilities, to serve as the project's general contractor and construction manager.

In January, First Wind plans to hold an open house at its Oakesdale office, located at 105 S. First in the center of town, for any interested subcontractors seeking information on the scope of work and the project's timeline. Not long after that open house, Fairbanks says, First Wind and RMT will advertise for competitive bids for services that are to include electrical, security, office supplies, trailer and equipment rental, trucking, lodging, and raw materials, among others.

So far, First Wind has contracted with several Washington-based companies, he says. Those subcontractors include Goodfellow Bros. Inc., of Wenatchee, and Busch Distributors Inc., an Oakesdale-based fuel supplier.

First Wind is leasing a small office space in Oakesdale, he says, and there are a handful of people who regularly are working there. Once the wind farm is operational, the number of employees based at that office and its on-site maintenance facility is anticipated to rise to include eight to 12 people, he says.

Oakesdale Mayor Dennis Palmer says the town, located about 45 miles south of Spokane, hasn't seen much of an impact from the project yet since only some preliminary construction has taken place.

"But we will," Palmer says.

Palmer is in the third year of his four-year term as mayor and says he's a lifelong resident of the Palouse's rolling hills, having lived in Oakesdale for more than five decades.

During that time, he says he's observed many changes to the agriculturally-focused community with a main street that's only a couple blocks long.

"The town has been losing businesses over the years—all small communities have—it's kind of a sign of the times," he says. "When Palouse Wind came in and wanted to put the wind towers in, I thought it was a great opportunity for the area because you don't get many businesses coming here since it's mostly ag."

Property taxes generated by the Palouse Wind project are anticipated to contribute about $1.2 million to Whitman County's operating budget over the next 20 years, Whitman County Assessor Joe Reynolds said in a story published earlier this month in the Whitman County Gazette, based in Colfax.

The amount of property taxes collected each year for the county's operating fund during those 20 years and starting in 2014 will vary, Reynolds said, because state regulations require the county to lower the turbine's assessed value by 8.5 percent each year. Another federal tax exemption takes 30 percent off the project's total assessed value, he said.

Palmer says he anticipates Oakesdale will benefit more from those property tax collections than some other neighboring farm towns because some of the property on which turbines will be erected is within the town's tax levy district. That district sets levy rates for the Oakesdale School District, which serves about 200 students in kindergarten through the 12th grade.

"The small schools are having trouble getting enough tax money to keep going, and I think this will be a big benefit to them," Palmer says.

Area fire and cemetery districts also stand to benefit from the wind project.

During the project's construction phase, the town of Oakesdale and neighboring communities are expected to see an overall uptick in economic activity as workers on the project frequent businesses there.

Palmer says that because Oakesdale doesn't have a hotel, though, the workers won't lodge there. He adds that he's not sure where First Wind will house those workers, and Fairbanks says that where workers stay likely will depend on where they're from and with which subcontractor they're employed.

Fairbanks says he anticipates that a number of businesses, including Oakesdale's only grocery store, Crossett's Food Market, will see more people this summer when work is at its peak.

He says that during many trips he's made out to the site in recent months, he's noticed that many of the workers have frequented Oakesdale's grocery store.

Mike Crossett, who's been the owner of Crossett's Food Market in Oakesdale for 30 years, says he's not sure how much additional traffic he'll see at his store once the turbines start rising on the horizon next summer.

"I can tell you that I have no idea what it will mean; people keep saying it will mean something and I hope it does," he says.

Crossett says his 4,000-square-foot full-service store sells basic food and living staples, but that because of other small towns also being located near the Palouse Wind project, his business likely won't get all of the extra traffic.

Aside from the increased property taxes collected by Whitman County and the anticipated increase in economic activity in towns near the project, a number of area wheat farmers who are leasing their land to First Wind also will reap the benefits of the project.

Fairbanks says the company has signed 30-year lease agreements with 30 different landowners. The entire wind farm project encompasses about 9,000 acres, he says, and the land impact from each turbine ranges between one and two acres, depending upon the topography of the parcel where each turbine is placed.

He estimates that the total impact of the project on area landowners' property is between 50 and 110 acres.

Area property owners who are leasing their land to First Wind will receive annual lease payments ranging between $4,000 and $10,000, Fairbanks says, depending upon how many turbines are on their land and the selling price of wind energy.

Turbine parts will start rolling into town in July. The large pieces will be rail-shipped to Pasco and then trucked to the wind farm site from there. The erected height of each wind turbine from its base to the blade tip is 426 feet, Fairbanks said, and each blade is about 260 feet long.

Wind turbines for the project are made by Vestas, a Danish company with its U.S. headquarters in Portland, Ore., he says.