Developers of the USA’s first large-scale offshore wind farm have reached a new milestone for the project with the signing of a Host Community Agreement.

The Vineyard offshore wind project is advancing through the permitting process and is on track to start construction in 2019, according to Avangrid and Copenhagen Infrastructure Partners.

Under the Host Community Agreement, Vineyard will make annual payment to the town of Barnstaple, Massachusetts, of at least $1.534 million. The pact guarantees a total Host Community Payment of $16 million, plus an additional $60 000 (adjusted for inflation annually), for each year the project is in operation beyond 25 years.

The agreement with Barnstable follows the award and execution of long-term contracts between Vineyard Wind and Massachusetts’ electric distribution companies (EDCs) to construct an 800 MW wind farm in federal waters south of Martha’s Vineyard and approximately 34 miles south of the Cape Cod mainland. The project includes the construction of a new substation near the town of Barnstaple.

The agreement has been filed with the Massachusetts Energy Facilities Siting Board, Vineyard Wind said.