We want to hear from all of you - below are e-mail list members concerns and questions on this issue. Click on this link to read the partnership agreement. Keep the comments coming! Click on this link to send us more comments
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The proposal will be exempt from site plan review and a special use permit.
The partnership does not seem to meet the definition of an approved partnership under the Zoning Ordinance. A proposed wind facility that is providing power or net-metering to municipal buildings is exempt from Site Plan Review and a Special Use Permit. This partnership does not propose any power to municipal buildings or any net-metering for municipal buildings. It should not be exempt from the normal review process, but the partnership agreement defines it as an exempt proposal anyway. We should ask for an explanation at the public hearing of exactly how this proposal complies with the exemption clause. Can a developer be made exempt from the normal development review process simply by giving money to the town?
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The tax assessment will be frozen at the current values for the land plus turbines for a period up to 20 years.
Assessments in Charlestown have increased 6 to 10 times the levels of 20 years ago. This will mean that over time, because of both inflation and the relative increase in the value of coastal land, that the developer may be paying only 10% of his real taxes. I would like to know if the Town Council has calculated the net loss in collected taxes over those 20 years. If the developer adds housing or other non-wind related development to this proposal will that be tax exempt since the taxes can only include the 2010 values of land plus turbines?
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No building permit fees or other fees of any nature will be charged.
What is the total dollar amount of fees being waived? This means the town will also have no money to hire independent experts to verify that the development proposal is in the town's interest.
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Whalerock shall pay Charlestown 2% of what they receive from National Grid, but not to exceed $50,000.
The state legislation allows net-metering to affordable housing. The developer and his lawyer are involved in the construction of hundreds of homes in local towns under the state affordable housing law. National Grid will only make payments after the net-metered electricity is subtracted. If these or other projects are net-metered to the Whalerock turbines, the town will receive 2% of a much smaller figure. The maximum $50,000 is not adjusted for inflation. What will $50K be worth in 20 years? Why isn't the yearly payment to the town increasing with inflation?
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The developer agrees to indemnify Charlestown from any claims that arise out of the partnership.
We have heard from an attorney on the e-mail list that no municipality should rely on an indemnity, especially from an LLC. That is why they are called limited liability companies. He advises that Charlestown should insist on liability insurance in an adequate amount and also be a named insured. Will the town make sure the taxpayers are protected from the costs of law suits from this development?
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The partnership agreement states that it is binding on new owners of the facility which means it can be sold.
That means the development can be sold to the tribe who will claim not be bound by these agreements. The agreement should not allow sale to entities that may claim exemption from zoning or any other laws.
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The partnership agreement states “Whalerock will be enabled to construct, finance and operate the project on favorable terms.”
What does this really mean and why is it in the partnership agreement in this form? Since the partnership agreement represents the entire agreement per Article 6f, are there other more favorable terms not specified in the partnership agreement?
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The partnership agreement states "if Whalerock makes a showing that it has in fact pursued the project with due diligence, this agreement shall be extended for a period of twenty years.”
To "make a showing" seems a low and ambiguous bar that would automatically trigger a 20 year formal contract. What events could trigger a default by any of the signing parties and how could those events be cured?
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The partnership agreement states that there will be a 60 day curing period in case of a default or claim of a default.
There is no indication of what the remedy will be if the default or claim of default is not cured to the satisfaction of the other parties to the partnership agreement. For instance, failure for the Town to be paid in a timely manner would surely be considered a default, but what would satisfy the curing of that default, i.e. simple payment of principal or principal plus interest at 18%? And if the default is not cured in 60 days is our only recourse through legal action or might we be able to seek resolution through arbitration?
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Applied Science Associates has advised Jamestown that they cannot make money on turbines that are designed to produce more energy than they can use with net-metering.
I think it likely that this developer plans to net-meter with other municipalities or with very dense housing projects since selling power directly to National Grid is unlikely to be profitable. That would result in small payments from National Grid and even smaller payments to the Town. Before the Town commits to this partnership agreement we need to see realistic financial projections to determine if we as a Town are receiving reasonable compensation for what we are surrendering. It is not enough to just assume that we will be getting $50,000 a year for 20 years when we have no evidence that that amount has a higher expectation than $500 a year.
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The Washington County Regional Planning Council has received a $750K grant to build wind turbines on town owned land at Ninigret Park.
This project will be sized to net-meter municipal buildings and facilities and buildings owned by Chariho. The Town Administrator explained at the June meeting that the Town cannot net-meter with both its own turbines and those of a private developer. If our electric needs will be provided by this public project at Ninigret Park, what is the partnership with the developer on Rt. 1 about?
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According to the town's wind ordinance, upon entering into a partnership, the Town Council may request advisory opinions from the Zoning Board and the Planning Commission, but the Town Council will act as the permitting authority.
Will the Town Council request advisory opinions from Zoning and Planning? How many days will they be given to respond and will they be allowed to hire independent experts to help them review the proposal? Since the Town is giving up its right to charge the developer for these experts, how much will it cost the town?
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According to the town's wind ordinance, upon entering into a partnership, the Town Council must hold a minimum of one (1) public hearing on the application prior to issuing a decision and notify abutters within 200 feet of the proposed property.
When will the Town schedule this public hearing and notify the abutters? Will an approval decision be made at this public hearing even though this is the first time the public will see a presentation on the proposal?
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The deadline to obtain Federal grant funds for this project is December 2010.
I understand that before filing for the grant application, the developer must have all of the appropriate studies completed and ground breaking must have begun. Will we be hearing at the July 26 hearing how the developer plans to do this? One hopes the Town will not be pushed by this deadline to do less than a complete review of the application.
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While I agree that the deal is unusual, one-sided in favor of Larry LeBlanc and the details are very sketchy to say the least, it is not without merit. The contract proposes to use 81-acres LeBlanc already owns and to place to high-yield turbines on it. He pledges to pay a capped level of taxes on it, plus a royalty of up to $50,000 a year to the town. Like Deepwater, we offer a developer a favorable start-up deal and, with minimal risk, we get to see how it goes before plunging into large-scale development.
Like Deepwater, reasonable people can draw different but nonetheless reasonable conclusions. I understand the objections of the Conservation Law Foundation and AG Patrick Lynch to cutting a deal with a favored developer for a small trial project. They argue this will impede launching a more important large-scale wind farm project. But coastal residents - whether they're on Cape Cod, Block Island or Charlestown, don't seem ready to go all in on any huge wind farm project, at least not yet. So why not give this a try to see if it's feasible. Through a two-turbine project, we can decide whether this works for our community and do so with facts and experience, rather than hysterical conjecture. And, yes, the Town Council should fight to get better terms.
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What is going on here?? We are all concerned about this project and its ramifications. The question is, "What is wrong with this council for allowing a project like this to simply slide through!!???" Are there going to be any bonds in place to assure the citizens of the Town of Charlestown that if this project becomes insolvent, that we the taxpayers are not responsible for cleaning up a mess left by an LLC. What is the possibility that this technology will become obsolete in less than twenty years, who cleans up the mess that will be left behind for community and the environment?? Does anyone have any idea what a 500 foot tower will look like in Charlestown. This LLC is getting a tax break, we are getting a tax increase due to our property value depreciating because we have these two towers to look at daily. The bank, the post office, and many of the other businesses are made to comply and fit within the rural design of the area, how are they going to make these behemoth towers fit in with the local rural decor of the community? This is one of the most ridiculous considerations that this council has come with yet!!
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"Why are we allowing this council to follow through and sign a contract endorsing such an undertaking!" It is quite apparent that there are a lot of questions and opinions against this endeavor, yet the march goes on to make this project happen!! What happened to open government and listening to the taxpayers of the community who elected this council!!???? It is beginning to appear that this council is not any better than the council that it replaced; and, that is not saying much for this council at all!!
_______________________________________________________________________ In my opinion, the Town Council is way out of line circumventing the town’s elected planning commission. I understand that the Town Councilors believe that they know what’s best for the town of Charlestown and that there are potential issues involving the developer and his threat to sell the land to the Narragansetts if he doesn’t get his way. I believe that the Town Council’s actions are not in the public’s best interest and reflect badly on the town’s image. The Council’s actions are tantamount to selling the office of town councilor to the highest bidder! Town Council should open this issue up to public discussion and follow the proper process for this project as outlined in the town ordinances.!
_______________________________________________________________________ The contract is much too vague.
Why put a 20 year hold on property taxes. If the business proposition is sound, I am sure that Whalerock intends to make some money and so the town should make some money too . In the event Whalerock has not done their homework and the project is a loser why should the town risk 81 acres of taxable real estate.
Also if the project fails who puts up the the funds to clear and reinstate the lots?
If the intent is to do windmills but also possibly other businesses such as grocery stores, hardware stores, offices etcetera why would you freeze taxes on all these other possible businesses and give them special treatment that might harm other real property owners.
Why would you put a cap on profits of $50,000. Suppose this project is really successful , why wouldn’t the town want to share in the success. Or for that matter why would Whalerock want to cap profits to the town, if the town gave them some breaks on development?
For a rather significant capital project the contract is little more than a hand shake. Is Whalerock a substantial business entity with deep pockets. Compare this to the requirements for just building a simple residence.
Why is the town council circumventing the planning and zoning group.
Has the town council reviewed sufficient evidence that this project is feasible, profitable and the town will make a reasonable return.
Why not use some other town owned parcel of land, possibly some of the land in Ninigrit and put the project out to bid if it is such a great idea?
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With experience in the finance and commercial real estate, I believe this proposed deal is ludicrous. I have never seen a developer achieve such a sweetheart deal. To cap an assessment for 20yrs is unheard of. How about the council countering with a 5yr freeze, a typical concession?
Additionally the town will incur inspection costs as experts will be needed to assess this new technology.
Despite all the concessions, the developer is only willing to give 2% capped, on one type of revenue stream. Why doesn't the town get a % of net revenue or net profit? Doesn't make sense. Why is the town foregoing all this revenue ? We need answers.
_______________________________________________________________________ The town of Meyersdale, Pennsylvania had leased land for wind turbines in return for electricity produced by the company. The residents have stated how happy they are with the arrangement. Maybe the Town Council should contact Meyersdale and learn about their arrangement that seems to be working well.
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Never mind the contract......who the hell wants two monstrosities of 500 feet rearing their ugly heads over such a nice town????? and for a proven inefficient generator of electricity
_______________________________________________________________________ I agree who wants these monstrosities I for one do not.
_______________________________________________________________________ I think we should be focusing on this ridiculous agreement rather than the pros and cons of wind turbines. The cart is already out of the barn on this one—the Town Council passed a wind ordinance—despite huge public pressure to have more thorough research on wind turbines. This Town Council defied the public and now we are stuck with turbines projects that protect developers rather than homeowners. The important thing is to remember that Forrester Safford, Charlene Dunn, Greg Avedesian and Marge Frank—who are all running for re-election—wrote a wind ordinance without thoroughly protecting homeowners who live near any proposed turbines. They are the same people who most likely will vote for this sweetheart deal with Whalerock next Monday night so voters should also remember this on Nov. 2.
_______________________________________________________________________ This issue is getting the attention it deserves but the basic facts of the project would be helpful.
First is the land owned by the developer? Who is financing the project? Has anyone seen a proforma for the project over the 20 year period? If the proforma projects a positive cash flow then there is room for negotiating on both sides. If there is a tax relief for the project then a percentage of the net profit is due to the Town for the tax concessions. I have traveled all over the world and large windmill farms are everywhere the conditions make them viable. The higher the windmill the more wind. Windmills are now and will be a integral component of a green energy generation system. Personally I find them beautiful and graceful and the fact that they are "green energy" just makes them more attractive. If we have enough wind in Charlestown let's lead the state to a greener future.
I must say that I am disappointed in the failure of the Town Council to fulfill their promise of a open government. I voted for the CCA backed candidates in the last election with the hope for a council we could all be proud of, that is not happening. I certainly hope that we can do better the next election. While I'm spouting here why is there no concern about the Town budget? How can a budget pass with 3% of the registered voters participating? You can bet that most of these who did vote were town employees. We need to pass a regulation requiring notification to all voters when the budget will come up for a vote and require that a minimum of 30% of the registered voters vote on the budget in order for it to pass. We need a council that can reform the budget and get reductions in all departments. 12 % unemployment in the state. 5 million shortfall on the school budget due to State cuts; does anyone know how this will be addressed? Pensions and benefits are unsustainable. The public sector has to be reformed to mirror the private sector. This means all positions have a full days work to do. Pensions eliminated in favor of a 401K plan with the tax payers matching employee contributions to a maximum of 5%. Health care premiums frozen at current levels and all future increases are paid by the employees. These are the hard facts that the private sector has to deal with it's time the Town deals with today's economy. Lastly when is the police department going to start buying fuel efficient vehicles; $5/ gallon gasoline will be coming back again.
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Reply to previous response: If you don't even know when to vote on the budget, maybe you should get a tad more involved! If the town employees voted, that is their right and privilege, just as it is every citizen's.
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As I understand the partnership, about 6 months ago the town council passed a resolution stating that if the town enters in to a partnership they become the authority and projects do not have to go before the Zoning and Planning boards. Today the council wants to sign a partnership agreement, not with one (1) LLC but with two (2) LLC's. If you know about the Tweed Ring in New York, when caught they all stood in a circle, arms crossed pointing at one another. This partnership agreement has NO protection, NO protection for the town of Charlestown. They don't have enough insurance nor do we.
The agreement also states that it does not take effect until a public hearing 7c ordinance. We to the best of my knowledge have not had a public hearing.
I hope enough citizens show up and demand a public hearing before this town council signs anything.
_______________________________________________________________________ People keep throwing around the $50,000 figure as if it is essentially guaranteed. Without financial projections we have no more of a probability that we will receive $50,000 per year than $500 per year.
_______________________________________________________________________ Apparently Polytop Corp (one of RI’s largest employers located in Woonsocket) has spoken against wind energy as it would increase their operating costs significantly. You might want to get their input. Wind energy may be a good alternate source of energy but it will come at an extra cost over fossil fuels and whatever deal Charlestown makes it should be a good one. The Whalerock deal does not impress me as it does not seem to be well thought out.
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This is all just so disappointing. I don’t care if we debate wind turbines or placement or height or private funding or government grants…or whatever. But let’s talk and debate it, as a town. Forget everyone’s personal opinion and views on this for a second. The town council is supposed to be folks we elected there to represent us and help move forward with agendas we, as a town, decide to move forward with. What is it that happens that the council members, once elected, decide that we only want THEIR opinions to count? This seems to be a repeated “disease” in our town. Why does this continue to happen? We have a great thing in Charlestown here. All we really need is a few intelligent people on the council that REMEMBER how they got there, which is by US voting them there.
Isn’t this government 101? Isn’t that the ENTIRE idea behind it?
When your own small town local government isn’t listening to it’s own people nothing happens the way it should.
I don’t know contracts too well or much about wind energy. But that agreement is just ridiculous. $50,000 a year is not much money now and even less every year going forward. To freeze taxes on that land for 20 years is just crazy. That short little contract didn’t do anything for us, as a town. Except hurt us in the long run. No one who loves Charlestown would even consider entering into something like that without 10 times more research than we have. This is not about wind energy: it is about using your head, talking to experts, doing your homework and making educated decisions that benefit the town, if and when the town people decide they agree.
If wind energy is so great, why give this away to a developer? If it is going to happen here in Charlestown, why not at least explore if we as a town can reap the benefits instead of giving them away? No developer is going to put these up for a profit of only $50,000 a year. The developer will make many many times that in profit. Why don’t we want that?
I mean really, we aren’t even going to get any electricity from this deal? Seriously? Not even our municipal buildings?
Who reads this and thinks it’s a good idea for our town? Not me. And I am not opposed to wind energy.
It’s just frustrating.
And on a side note: I agree strongly with another comment made about voter turnout and town communication. There is no town communication, on anything. I only learn anything about this town through CCA. And I much as I like and appreciate that, it is not how it should be. Mailings, postcards, newsletter…even an automated phone system to place calls about elections, town meetings, zoning changes/requests…. anything…
_______________________________________________________________________ First and foremost I would like to address the fact that I thought this forum was to talk about the wind turbines in the town of Charlestown and the politics surrounding it. I am disappointed that an opinion on the town's employees and the town benefit packages has been allowed by the CCA in such a form; perhaps we could make this another issue to be discussed and debated at another time and with facts and not imputations. The issue is wind turbines and foremost the fact that the citizen's voices are not being heard. Perhaps the council can combine the wind turbine boondoggle with the mud cove boondoggle on the same land; these projects are and will be their demise. I personally live near the proposed site for the turbines and I will be able to see and hear their presence--as most people will who live in Charlestown--and this is not what I care to be part of; yet, it is being jammed down my throat by a council that apparently has another agenda. This project is surrounded with such hypocrisy that it is pathetic. Small businesses are forced to keep their signs to a minimum and businesses are forced to design their buildings to conform with the rural setting of the area; how does one build a five-hundred foot wind turbine to meet the rural setting!!?? I remember when the Washington Trust bank was forced to reduce the height and size of its American Flag to meet with the standard of the rural setting!! I voted for most of the people on this council and I am quite surprised to witness their performance on the many issues at hand. And... I am embarrassed to admit that I did vote for them and cannot believe their actions on town matters!! And... I too hope that "everyone" remembers the behavior of this council in November.
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Did anyone notice that the Whalerock agreement is listed as the 18th item on the agenda monday night, out of 20 items. Seems to me, this Town council wants nobody there when this is discused. What a joke about open government. This Town Council should be ashamed of themselves. Another example of this council being gutless phonies. Can't wait for November......
_______________________________________________________________________ Warning, all you angry fellow citizens. Your anger over the current council may blind your eyes to the reality of the chaos we enjoyed with Mr. Mageau just 4 years ago!!! Take time to consider your vote and FIND OUT ABOUT THE CANDIDATES IN ADVANCE! Blind "hope voting" without knowing won't "git er done." Practice democracy and be responsible voters.
_______________________________________________________________________ There is no way the Town Council can or should proceed without pro-forma financial projection statements by an independent consultant to be attached to the agreement for all to see. Also, why is the 2% Royalty capped at $50,000?? That alone gives this agreement a foul odor !!
Whalerock's financial projections must show a number far beyond the 2% to cap the royalties at $50,000 !!
_______________________________________________________________________ One paragraph in the revised agreement would make an imprisoned Florida real estate developer proud:
"Any proposed wind facility..., may be exempted by Town Council approval, from the process requirements for Site Plan Review and Special Use Permit. The Town Council may request advisory opinions from the Zoning Board and the Planning Commission, but the Town Council will act as the permitting authority....(after) a minimum of one (1) public hearing."
We must ask why it is necessary to eviscerate town government to get this proposal approved. |