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Tag Archives: leasing land for wind turbines

Wind power ‘tearing communities apart’ say farm owners

02 Wednesday Mar 2016

Posted by ottawawindconcerns in Uncategorized

≈ 3 Comments

Tags

Brinston, community opposition wind farms, Farmers Forum, leasing land for wind turbines, North Gower, South Branch wind farm, wind farm, wind power, wind turbines, windmills

Wind farms cause animosity in Ontario communities

3-MW wind turbine and house near Brinston: Ontario hasn't learned a thing. [Photo: Ray Pilon, Ottawa]
3-MW wind turbine and house near Brinston: communities “torn apart” by conflict. [Photo: Ray Pilon, Ottawa]

While the Wynne government claims to be “Building Ontario Up” the reality is different for rural communities where wind power developers offered leases to farmers, who then chose money over their neighbours and communityFarmers Forum, Eastern Ontario Edition, March 2016

TEARING US APART

Wounds not healing after wind turbines turned friends into bitter enemies

By Tom Collins

BRINSTON—Wind turbines tear apart communities and relationships, causing animosity that lingers for years, warn farmers who have lived through the ugly battles.

Don Winslow signed up almost immediately in 2013 when a wind company planned to build five turbines near Peterborough. Three months later, after immense public pressure and hostility, he couldn’t do it anymore.

“It relieved our stress tremendously [to cancel the contract],” the then-70-year-old Winslow told Farmers Forum after he cancelled his turbine. “We don’t have to sneak around the neighbours hoping not to run into them. There is always an element of society that is going to go overboard but people I respected were just as upset as the real radicals.”

There are only three wind turbine projects in Eastern Ontario – Brinston (10 turbines), Wolfe Island (86 turbines) and 5 turbines just west of Kingston, but there are more than 1,200 turbines in the province with another 1,500 on the way. The province is expected to announce new projects this month that could include another 98 turbines in Eastern and East-Central Ontario.

Most turbines are in Western Ontario where the stories are shocking.

They put their pocketbook ahead of the community

Time doesn’t heal all wounds, said Guelph-area dairy farmer Tim Martin. “There are people here that have absolute hatred for others. I have never seen anything so divisive in our community, ever, in my entire life. You try to say forgive and forget, but a lot of people say ‘We forgive them but we remember.’ They put their pocketbook ahead of our health and above the community’s well-being, and people don’t forget that.”

…

… But not everyone blames wind turbines. Some lay the blame on anti-wind protestors for stoking fears and fueling the fighting. Farmers with turbines have signed confidentiality agreements and won’t speak to news media. However, North Gower farmer Ed Schouten signed up for turbines on his dairy farm years ago but the project never went ahead. Although he is a strong supporter, Schouten said he would have to think long and hard about signing up again if the opportunity arose.

“You’ve got to be careful today because people are jealous and they’ll get back at you,” he said. “We have a lot to lose here. They can easily sabotage something on you. There’s all kinds of crazy people out there today.”*

Schouten credited anti-wind groups for doing a good job of fear-mongering and, while they are a minority, get people riled up.

The anti-wind protestors “say [turbines] tear up the communities. They’re the people that tore up the communities, not the turbines. They say [wind turbines] pit neighbor against neighbor and all this stuff because they want another reason to get rid of them.”

See an excerpt of this article here: Farmers ForumMarch2016-Tearing UsApart

To see the full article, go the FarmersForum.com next week or call 613-247-1334 to purchase a copy.

*Ottawa Wind Concerns Editor note: during the time of community action to oppose the proposed North Gower-Richmond wind power project, there was NEVER any threats of violence or civil disobedience. As to the comments about the opposition being a “minority,” readers will recall that a petition to the City of Ottawa requesting that North Gower be Not A Willing Host to the wind power project garnered signatures from 1,400 residents— almost every taxpayer in Ward 21. The petition was accepted and a motion of support passed unanimously at Ottawa City Council.

More unwanted turbines for Eastern Ontario?

02 Wednesday Dec 2015

Posted by ottawawindconcerns in Renewable energy, Wind power

≈ 2 Comments

Tags

Eastern Ontario wind farms, Farmers Forum, leasing land for wind turbines, wind mills

Wind turbine and home, Brinston, Ontario. Photo by Ray Pilon.

Wind turbine and home, Brinston, Ontario, south of Ottawa. Photo by Ray Pilon.

Unwilling host status no guarantee against provincial green energy push

Farmers Forum, December 2015

By Tom Collins
NORTH FRONTENAC — The province will announce new wind turbine projects by the end of the year — as many as 100 turbines or more —  but seven out of eight Eastern Ontario municipalities that could be impacted by those submissions voted against the projects.

The lone wolf was Addington Highlands Township, which approved two turbine projects with a combined 370 MW capacity in July.

Wind turbine developers submitted 27 wind turbine projects by the Sept. 1 deadline. Those proposals equal 2,246.8 megawatts (MW), but the province will approve only 300 MW this year, translating to about 100 large turbines.

North Frontenac mayor Ron Higgins is 80 per cent confident there won’t be turbines in his township as it has declared itself “an unwilling host” but says the province can ignore that designation. Ninety-one of 444 Ontario municipalities have declared themselves unwilling hosts to wind turbines.

Higgins hopes the province will choose to put turbines where they are wanted. The province says wind developers that came to an agreement with a municipality have top priority for approval.
North Stormont Township councillor and Avonmore dairy farmer Jim Wert said there is no upside to turbines for his municipality, but has no confidence that North Stormont will not be getting wind energy.

“I think the track record of this decision-making process speaks for itself,” he said. “If you take a look at the number of municipalities that have had unwilling host status in the past and the number of them that now have windmills, I think that speaks volumes.”

According to numbers compiled by the municipality last year, 89 per cent of wind turbines are operating in municipalities that don’t want them as 25 of 28 municipalities that have turbines declared themselves unwilling hosts.

Wind turbines are a divisive issue for farmers, said Wert. With turbines bringing in around $30,000 a year per turbine, farmers who have the option of having wind turbines are in favour of them, while neighbours who can’t have turbines may be upset about the potential impact on property values.

South Dundas Coun. Bill Ewing said his municipality is against turbines unless the province can justify a need for it. He didn’t believe municipalities would be successful in stopping turbines if they all joined forces.

“That would be like trying to stop the snow from falling,” he said. “They missed the boat when the province first said, ‘you shall.’ (Municipalities) should have all got together and said ‘whoa, stop this.’ It became a dictatorship then.”

The successful applicants are expected to be announced later this month. The seven applications for Eastern and East-Central Ontario include:

  • 35 to 100 turbines for a 200-megawatt project in Addington Highlands Township.
  • 40 to 60 turbines for a 170-megawatt project in Addington Highlands Township.
  • 35 to 50 turbines for a 150-megawatt project in the Nation Municipality, Russell Township, North Stormont Township, and Alfred and Plantagenet Township.
  • 29 to 50 turbines for a 100-megawatt project in North Stormont Municipality.
  • 50 turbines for a 100-megawatt project in North Frontenac Township.
  • 40 turbines for a 75-megawatt project in South Dundas Municipality.
  • 15 turbines for a 40-megawatt project in Nation Municipality and Champlain Township.

On that list, the Nation, North Stormont, North Frontenac and South Dundas have declared themselves as unwilling hosts. Russell Township has approved a powerline through part of its township, but not wind turbines. Champlain Township voted in favour of allowing a substation in its township, but not turbines. Alfred and Plantagenet Township wouldn’t have turbines as part of the project, and they have not made a decision on whether to support wind turbines. Alfred and Plantagenet Township originally approved the project on July 20, but rescinded its decision on Aug. 12 once they discovered the Nation — which would have the turbines — was against it.

According to the Canadian Wind Energy Association, there were 76 Ontario wind developments running as of September, with a total of 2,150 turbines and 4,042 MW capacity.

There are three operating wind turbine projects in Eastern Ontario — 86 turbines at Wolfe Island, 10 at Brinston south of Winchester and five at Loyalist Township west of Kingston.

The province has approved eight other Eastern Ontario projects that are not yet up and running.

 

OTTAWA WIND CONCERNS EDITOR’S NOTE: There are 8 turbines at Brinston, not 10. Of the eight projects approved for Eastern Ontario, all are under appeal.

Please see today’s news story on the Auditor General’s report on the surplus of power in Ontario, and how much wind power has cost the citizens of Ontario.

Farm owners’ property used as security for wind farm financing: what property owners need to know

07 Thursday May 2015

Posted by ottawawindconcerns in Renewable energy, Wind power

≈ 4 Comments

Tags

Brinston, Garth Manning, K2, leasing land for wind turbines, Ontario, property values wind farm neighbours, South Branch wind farm, wind farm, wind farm financing, wind farm lawsuits, wind farm leases, wind power, wind turbines

 

Farm owners’ property as security for wind farm financing: what owners need to know

Wind developers can use farm leases as security for financing the power project
Wind developers can use farm leases as security for financing the power project

Ontario Farmer, May 5, 2015

by Garth Manning and Jane Wilson

It came as a surprise to many in Ontario when it was revealed that the multi-national power developers behind the K2 wind power generation project near Goderich had secured $1 B in financing, and that this arrangement is now registered on title for the 100 farm properties involved as lessors.

The arrangement is between K2 Wind Ontario Inc. and Mizuho Bank Ltd. Canada Branch. It secures a revolving credit facility of up to $1 billion at 25% on a number of items, including the contracts between landowners and K2 for land and road agreements with municipalities.

Another, smaller example has also come to light: a wind power project south of Ottawa in Eastern Ontario, where the five landowners leasing land for a 30-megawatt, 10-turbine project now have charges on their properties for $70 million.

Immediately, questions arise as to what would happen if the power developers were to default on their loans: would the lender then own the farm properties? How would that affect road use agreements with municipalities?

The fact is, this is a common practice. Property owners can refer to the leases imposed by the developers to review this potential situation, and many others that may affect operation and ownership of their land while leasing land for the power projects.

In an Invenergy standard contract, for example, is this clause: “In connection with the Lessee’s financing of the Project, the Lessee….is hereby given the right by the Lessor…to mortgage its interests in the Lease…and to assign this Lease, or any part of parts thereof, and any subleases as collateral security…”

The proper term for this is a “Charge of Lease” but may also be referred to as a “Demand Debenture.” What it means is, the present value of the wind power contract (i.e., the Feed In Tariff or FIT contract with the Ontario government) is greater than the present value of the lease amount. The difference between those two amounts is security for the loan to the power developer. It is a charge against all contracts favourable to the wind power developer, which may also include road use agreements.

It is like a line of credit for the developer and typically, advances against the amount are tied to certain milestones such as stages of construction.

The critical factor, however, is what it means for the lessors, in other words the farm owners who have leased their land for wind turbines, access roads, substations, transmission lines, etc. The importance lies not so much that the farmer lessors might on default lose their land (the farm land itself is not mortgaged, just the turbine contract on that land) but the damage it does to that property owner if he/she wants to sell, or to renew an existing mortgage, or place a new one, or in any way borrow money for which the lender would want security on his/her land.

Let’s assume a farm owner wants financing for farm operations or improvements. That might now pose difficulty: lenders do not like to be second in line, as they would be where a charge of lease is in place.

If the farm owner wishes to sell, similar difficulties arise: the lawyer for a purchaser in the case of an agreement to purchase will do a title search and discover the Charge of Lease on title, then immediately advise his or her client that the client is entitled to get out of the deal unless the registration of the Charge is removed from title. A purchaser is not expected to assume any risk of this nature.

In the case of renewing an existing mortgage or placing a new one, the lawyer for the bank or other lending institution would take the same position — no renewal or new mortgage unless the customer sees that the Charge disappears from title.

This is one of several important characteristics of signing a lease to have wind turbines, and needs to be thoroughly considered. Other legal issues to be carefully considered may include potential liability for the substantial cost of “decommissioning” turbines at the end of the lease, difficulty obtaining insurance on property with wind turbines, loss of autonomy over building on the property and carrying out regular farming practices, and, last, the potential for nuisance suits from neighbours affected by noise or property value loss.

Property owners should consult with a lawyer before signing any agreement.

Garth Manning is a retired lawyer and former president of the Ontario Bar Association, who lives in Prince Edward County. Jane Wilson is president of Wind Concerns Ontario; she lives in North Gower.

$70-million charge on Brinston farm titles for wind farm

28 Tuesday Apr 2015

Posted by ottawawindconcerns in Ottawa, Renewable energy, Wind power

≈ 10 Comments

Tags

Brinston, Charge of Lease, demand debenture, leasing land for wind turbines, Prowind, South Dundas, Stormont Dundas and Glengarry, wind farm, wind farm financing, wind farm leaseholders, wind farm leases, wind power, wind turbines

 

Construction of one of the 3-MW turbines at Brinston--30-50 more proposed by EDP Renewables

Construction of one of the 3-MW turbines at Brinston, now operating–30-50 more proposed by EDP Renewables

Ottawa Wind Concerns has learned that a “Charge of Lease” has been placed on the South Branch wind “farm” in the amount of $70 million. The charge is on the leasehold interest in five properties, where property owners have leased land for wind turbines, access roads, substations, and other parts of the wind power generation project.

Earlier this month, details came to light on the 140-turbine K-2 project near Goderich, Ontario, where a charge of lease has been filed on the title for 100 farm properties, in the amount of $1 billion.

The Charge of Lease is basically a financing agreement between a lender (who may represent investors in the wind power project) and the wind power developer, that can function as a line of credit. The basis for the Charge, as we understand it, is that the present value of the contract for the turbines, i.e., the Feed In Tariff contract for power with the Province of Ontario is greater than the present value of the lease agreements with the landowners; the difference between those two values is the security for the loan.

The South Branch contract with the Ontario government runs for 20 years and is worth millions to the developer, who bought the project from Germany-based Prowind.

The importance of the existence of these agreements is the effect they have for the landowner leasing land for the wind turbines. In the opinion of a lawyer advising us (who prefers the term “Demand Debenture” for this arrangement:

It’s not so much that the farmer lessors might on default lose their land (the land itself is not mortgaged, just the turbine contract on that land) but the damage it does to that farmer if he/she wants to sell or to renew an existing mortgage, or place a new one or in any way borrow money for which the lender would want security on his/her land.

Assume a binding Agreement of Purchase and Sale. The lawyer for the purchaser does a title search and discovers the Demand Debenture. The lawyer would immediately tell his/her client that the client is entitled to get out of the deal unless the registration of the Demand Debenture is removed from title, and would also insist to the farmer’s lawyer that this be done otherwise the deal cannot close. A purchaser is not expected to assume any risk of this nature nor to be in the position of “buying a law suit”.

in the case of renewing an existing mortgage or placing a new one, the lawyer for the Bank or other lending institution would take the same position – no renewal or new mortgage unless the customer sees to it that the Demand Debenture disappears from title. Period. End of story.

This is another example of the very serious questions that need to be asked by anyone considering leasing their land for a wind power generation project. There are many serious and long-lasting effects to signing these agreements that need to be properly understood.

In 2013, the Not A Willing Host group of municipalities met in Ottawa at the Association of Municipalities of Ontario convention. At that meeting, one Ontario mayor said, What people need to understand is that basically, they sold their property for the amount of the lease agreement.

** Please see also, the article from the May 5th edition of Ontario Farmer on the charge of lease issue, here.

Farmers at London Farm show: NOT in favour of wind turbines

07 Friday Mar 2014

Posted by ottawawindconcerns in Renewable energy, Wind power

≈ 2 Comments

Tags

income wind farms, leasing land for wind turbines, property value loss wind farms, wind farms Ontario

Farmers object to wind turbines, survey says

By Blair Andrews
LONDON — The debate over wind turbines in Western Ontario is generating some lively opinions among farmers with a clear majority strongly opposed, a Farmers Forum survey suggests.
A random survey of 50 farmers at the London Farm Show on March 5, found that 58 % disapproved of wind turbines.
Just 20 % of survey respondents approved and 22 % were neutral on the issue. Among those who had an opinion, farmers opposed to turbines outnumbered those who approved by almost three-to-one.
Almost 80 % of those who disapprove believe the wind turbines are too costly and are an inefficient source of electricity.
“The capital cost of erecting the wind turbine in the first place is far in excess of what I would think a reasonable return on the investment would be in terms of the energy that is generated by one of those,” said Harold Jackson, a cash crop farmer from Middlesex County.
“I don’t believe the economics are there; this is a money grab,” said a Brant County cash crop farmer who noted that he has worked near wind turbines. “I believe there are health issues. I don’t care what the experts say.”
A few other farmers were concerned about losing farmland to wind turbines.
“The power belongs in the city where it’s being demanded,” said Tyler Vollmershausen, a cash crop farmer from Oxford County. “We’re on this infrastructure across the countryside and the power is being demanded in the city. Why are we producing it out here?”
“The windmills don’t belong on farmland,” said Lambton County cash crop and livestock farmer Peter Aarts. “We have solar panels but the solar panels are on the roof and nobody notices that they’re there.”
Other reasons for disapproval included decreasing farmland values, adverse health effects, their appearance, and that the issue pits farmer against farmer.
Of those who approve of wind turbines, their reasons were evenly split between generating income for the farm and producing a renewable energy source.
“I have no problem with them. It’s green energy,” said Gary Van Leeuwen, a cash crop farmer from Elgin County. “It’s pricey, but we have to look long term, not short term.”
“I am against nuclear and I’m very concerned about the storage facilities for nuclear waste in the Kincardine area,” said Huron County cash crop farmer Uli Hundt.
Middlesex County cash crop farmer Charlie Paas is planning to earn some income from a wind turbine when one is built on his farm this year.
“You can complain about changing the landscape, but you stick a house somewhere you change the landscape too,” said Paas.
“I approve of them in the right location,” said Wayne Cunningham, who likes the aspect of producing green energy.
But the Wellington County cash crop farmer echoed some of the concerns of those who disapprove.
“I don’t approve of them going into prime farmland. We’re losing too much agricultural land every year.”

Read the full story here

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