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Council May Renegotiate French's Landfill Solar Deal

Bond approved on first reading, but more negotiations could take place

The township coucil this week voted 6-1 in favor of approving a $34 million bond measure to fund the construction of a solar array at the former French's Landfill site, but they may renegotiate some terms of the deal surrounding the project.

Councilman Jim Fozman cast the lone dissenting vote on the bond measure, which was passed on first reading. Before the bonds can be issued, a second vote must be taken after a public hearing.

Council President John Ducey said this week that the council may look to renegotiate some terms of a deal with the project's redeveloper, Standard Alternative, LLC, in the interim.

"Our focus is on trying to get the town as much money out of the deal as we can," Ducey said.

Under the deal that was negotiated under the previous council, the township would borrow the cost of constructing the solar array at the former Superfund site at a special reduced interest rate reserved for municipalities, but Standard Alternative would pay the money back – not taxpayers.

The company would pay Brick a $2.5 million upfront lease payment, then up to $85,000 per year for 15 years. During that time, the township would purchase energy from the the company at a significantly reduced rate, saving taxpayers what will amount the millions of dollars over the 15 year period, officials have said.

After 15 years, the township would take over the array.

Oscar Wilde February 17, 2012 at 10:01 PM
why does Scott Pezzaras need a $150,000 Assistant ?
Brick Skeptic February 17, 2012 at 10:31 PM
Here is the issue laid out and the problem. The mayor and the previous council did a bad job negotiating this deal. They keep saying that they were not getting any bids. Here's why. The mayor made part of the deal that the developer would pay the town all of the rent money for the 15 years up front - $2.5 million. The mayor wanted to fill a hole in his budget. Collecting this money up front represents poor fiscal policy - No surprise from Acropolis. Of course, nobody wanted this deal to give us $2.5 million up front. It would be like saying "I am going to pay you $1000 to paint my house, but first I want you to pay me $200." No wonder we didn't get any bids other than the Standard Alternative bid. So they finally get a company to agree to this bid and it is not competitive because only one company was willing to do it this way. so it is not a very good deal. So, why not renegotiate a completely new deal with another company? Good question. The problem is that there is a federal subsidy that pays for 30% of the project, which saves the developer (and by extension, the town) $9 million. So we can't get a better deal than this because the federal subsidy program expired on Dec 31, 2011. I summary, this is not a very good deal, but we can't do better without the 30% federal subsidy, which we are no longer eligible to get. I just hope the new Democrats on Council can renegotiate portions of this deal so it will be more profitable for the town.
Waste February 19, 2012 at 12:26 AM
This whole solar thing is out of control. No matter how you look at it there is no way that it will pay for itself without some sort of government assistance or tax. The taxpayers and All current rate payers of the electric company are footing the bill for this nonsense. Wake up people, do some homework on the industry, it is estimated that the solar panel scam will be over installed by 35 to 45 percent this year causing the SREC prices to continue to drop. Germany is already abandoning the solar industry because it’s too costly to maintain. http://www.slate.com/articles/news_and_politics/project_syndicate/2012/02/why_germany_is_phasing_out_its_solar_power_subsidies_.html
time2go February 20, 2012 at 04:36 AM
thay should look at a wind fram instead wind blows 24 hours a day the sun is out 12 hours max and that if there no clouds and you will pay the note off faster .
Dawn Marie White February 20, 2012 at 05:03 AM
All of these questions have been asked and answered in detail. Watch the Feb 7th council meeting http://brick.granicus.com/MediaPlayer.php?view_id=2&clip_id=389 And once they post last weeks meeting watch that one too. As more questions and valuable information was given. Iron State is multibillion dollar company with 4 decades of experience in the industry (formally Applied Housing Company which was formed in 1970 by Joseph Barry and Walter Barry.. They are Backing standard Alternative as subsidiary, in light of the green building boom. Most multimillion dollar company's set up subsidiaries when they partner with additional principals. As far as negotiating this contract . We all would like to see more in Bricks Bank Account especially if the price of the SRECS skyrocket. Which if you truly do the research you will see how SRECS work and why the price has declined and what the future expectations are. They will go back up especially once federal subsidies end. When is the last time your electric bill went down? Yeah right! Once they close Oyster Creek everyone who is a naysayer will bit their tongues. What most people do not understand is there are maybe 7 companies in the United States that are capable of completing such a project, those companies were looked at and Standard Alternative gave Brick the best Bottom Line... Germany ! Where is the sun? ..... Here is the difference http://www.solarmash.com/articles/2011-04-21/top-10-solar-friendly-states-12939/


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