Details of the contract outlining an agreement between Brick Township and Standard Alternative, LLC show that there are protections against taxpayers ending up on the losing end of a deal to create a solar farm at the former French's Landfill site, officials said.
The township council authorized a redeveloper's agreement with the Hoboken-based Standard Alternative on Tuesday.
Under the agreement, Brick will float low-rate municipal bonds to fund the installation of solar panels at the former Superfund site off Sally Ike Road, but Standard Alternative will pay the debt service, according to Business Administrator Scott Pezarras. Additionally, Standard Alternative will pay Brick $2.5 million in the first year of the contract, then a portion of the revenue realized by the energy the solar arrays produce. Additionally, Brick will purchase energy at a reduced rate from Standard Alternative.
Standard Alternative will continue to make annual payments to Brick – in addition to paying off the bonds – over the course of 15 years. Then, after the contract ends, the township will take full control of the solar array and may use the energy in any way officials want, presumably, however, to eliminate electric bills for the municipal government at BTMUA.
"All of the market risk is going to be taken by the redeveloper," Pezarras said, explaining that even if Standard Alternative went out of business, the solar array would immediately become township property, and the energy produced by the site would far outweigh the relatively small amount of debt service produced by the bonds.
"Once he gets the solar array built, if he goes belly up, it's on our property and we collect all the money," said Pezarras.
Pezarras said in all, the township will most likely bond about $23 million for the project, after factoring in grants and an upfront down payment that will be made by Standard Alternative. In order to take advantage of federal grant money, however, an order to purchase the solar equipment must be made by the end of the year – the primary factor, Pezarras said, driving the deal to be done by the close of 2011.
Council President Brian DeLuca said Tuesday that Standard Alternative is planning a 6.5 megawatt solar array for the site.
As Brick Patch reported Tuesday, while the redeveloper's agreement is in place, the deal is not set in stone. The bonding to support to the project must be approved by the incoming, Democrat-controlled council after the start of the new year.
What you did not see was my hand was up from the beginning and I was sitting directly in front on Joe Lamb. Brian did not call on me and then stated we were paying for the owner's time so he cut the questions off. I have been complaining for months that we are not being given enough information. That it is the Council's duty to supply enough details for us to understand what they are casting their vote for and why. He knew I would question who were the owners of the business, exact information about what we are laying out and when . . . I have stated this is not something we should have to spend our time and money to find out that is what we come to the Meetings to hear. Not only is Brian a bitter loser he brought it on himself by not listening to us.
would like to know who they are, Thank You
Keep what cash??????
So I am confused by your statement.
Of course unless you are just trying to stir the pot.
We should not have to put in OPRA requests. The requesterd information should have been details explained to all who attended the Council Meeting. No information of any value was provided. Scott, I realize it is not your place to provide this information unless requested to advised to by the Council President. Brian has refused to follow proper protocol most of this year.
That answers the question of whether I spoke with him. As I stated previously, Brian refused to call on me even thought he plainly saw my raised hand from the beginning.
Keep what cash????? The company will only expend money before any money comes in from the grant. Scott
Copies of documents are governed under an OPRA. You are more than welcome to come in and read the document as it is available in teh Clerk's Office, but if the public wants a copy of it they will have to file an OPRA request.
Some of the answers are vague.
It is only a term of the redevelopers agreement. It has not been issued yet. It will be pursued when the notes/bonds get issued for the project.
If you google federal tax credits solar panels, you will find that the credits have been extended through 2017. This isn't a $12 million company, never mind $12 billion. Mrs. Edwards, wife of the Bd of Ed Business Administrator, was introduced as the financial advisor. Financial advisor to whom? Councilman DeLuca made it sound like Mrs. Edwards was advising the Township of Brick. I want my money back.
It is not tax credits for the project, it is a Federal 1603 Grant that will fund approx. 1/3 of the project cost. The primary shareholder in Standard Alternative is the company with over 1 billion in assets and cash on their balnce sheet. Ms. Edwards reviewed these financials for the Twp. (she is the manging director for Acacia Financial ). They have been the twp's financial advisors for years after Municipal Advisory Partners (the prior FA) merged with Acacia Financial.
What's the point of saying the shareholder has over $1 billion in cash and assets? Let's believe the shareholder has a billion in assets, I'll bet the shareholder has no where near $1 billion in cash. Can we find out what company is the shareholder? Who else are shareholders?
The majority shareholders are going to back the notes until the system comes online. I am not sure I can divulge the name(s) of the major shareholders, since the FA has signed a non-disclosure agreement. I will check with the attorney when I return to work.
What you say is not true. The Twp can anticipate the revenue as long as there is a reasonable expectaion it is going to materialize. It is a anticipated revenue with prior consent of the Director of the Division of Govt Services. Since the redevelopers agreement provide for this payment to be given to the Twp before the budget is adopted, it most likely would be approved by the Director. The Twp did the same thing with a liquor license that was under contract to sell.
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