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Ottawa Wind Concerns

Tag Archives: Stormont Dundas and Glengarry

Wind farm questions at info night in SDG

07 Thursday May 2015

Posted by ottawawindconcerns in Health, Renewable energy, Uncategorized, Wind power

≈ 3 Comments

Tags

Brinston, Crysler Ontario, Don McCabe, Jane Wilson, North Dundas, OFA, Ontario Federation of Agriculture, power supply Ontario, South Dundas, Stormont Dundas and Glengarry, Wind Concerns Ontario, wind farm, wind farm leases, wind farm noise, wind power development

“Why us?” was one of the questions raised, as more than 125 people gathered in the North Stormont Community Arena Hall in Finch on a fine spring evening in the middle of busy planting time, to hear a panel discuss various aspects of wind power in Ontario.

Speakers for the Lions’ Club event were:  Tom Levy, Director of Technical and Utility Affairs, for the Canadian Wind Energy Association/CanWEA, the industry lobby group;  Jane Wilson, president, Wind Concerns Ontario; and Don McCabe, president of the Ontario Federation of Agriculture.

Tom Levy went over the numbers for wind power in Canada and showed wind power development is growing as a source of power; Ontario currently has over 4,000 megawatts of installed wind power. Wind is cheaper than other forms of power generation, he said, fast to build, emissions-free, and–because power contracts are for 20 years–provides price stability whereas prices for other forms of “fuel” such as natural gas, can fluctuate, he said.

Wilson called for balance in the approach to wind power development in Ontario communities: “If a community wants a wind power project, that’s fine,” she said, “but you have to be assured that no one single person is going to be harmed by it.” Wilson said the recent Health Canada study showed health impacts (“annoyance” is a medical term meaning distress, she said) and called the Ontario setbacks of 550 metres into question.

Quoting a document from CanWEA, Wilson said, “You have a right to ask questions, you have a right to have concerns, and –based on what you learn–you have the right to oppose.” Wilson also mentioned the charge of lease possibility in wind power contracts which meant developers can obtain financing based on the leases on farm properties for turbines.

OFA president Don McCabe pounded the lectern with his fist on the contract issue, saying, Get a lawyer, get a lawyer, get a lawyer. It is up to each property owner to obtain proper legal advice before signing contracts, he said. His view was that farm owners contemplating leases need to get an agreement that will get the most benefit for them.

Mr McCabe made no mention of farm communities, or the effect of farmers’ decisions to lease on their neighbours.

The issue of Ontario’s power supply and electricity bills came up through the evening as Wilson asserted Ontario does not need more power, and has already sold off surplus power cheap in the first quarter of 2015, for a $450-million loss for ratepayers.

McCabe joked that he didn’t think there was excess surplus power at night, and that there was no real surplus of power, only mismanagement “in Toronto.”

The question, “Why us?” was answered by Levy and Wilson. Levy said it was a number of factors that motivated developers to choose an area for power development, including access to the power grid, willing landowners, available wind resource. “Mr Levy hit the nail on the head,” said Wilson; “willing landowners. The real question is, why are power developments not located closer to cities like Toronto where the power is being used?”

The power developer proposing a project for Stormont Dundas and Glengarry, EDP Renewables, will be holding an open house tonight in Crysler at the Community Centre, between 4 and 8 PM.

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Public meeting in Finch on Wednesday

03 Sunday May 2015

Posted by ottawawindconcerns in Ottawa, Renewable energy, Wind power

≈ 2 Comments

Tags

Brinston, EDP Renewables, Finch Twp, Prowind, South Branch, South Dundas, Stormont Dundas and Glengarry, wind farm

The power developer who bought the 30-MW South Branch project in South Dundas from German developer Prowind, EDP Renewables, is now proposing to expand into Stormont, Dundas and Glengarry, and apply for a Feed In Tariff contract. Spokesman Ken Little told South Dundas council the company was planning 30-50 turbines.

Ontario is currently offering contracts for 300 MW of new wind power in 2015, despite a situation of surplus power in Ontario, and the fact that Ontario lost more than $425 million in the first quarter of 2015, exporting surplus power cheap.

A public meeting will be held in Finch this coming Wednesday at the community centre/arena at 7 PM. The goal is to have a panel present various viewpoints on wind power.

Guest speakers will be Tom Levy of CanWEA, Jane Wilson of Ottawa Wind Concerns /Wind Concerns Ontario, and Don McCabe of the Ontario Federation of Agriculture.

EDP’s Brinston project is about 40 minutes south of Ottawa.

ottawawindconcerns@gmail.com

$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.

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