Dummer residents oppose PILOT agreement with wind farm owner
Written by Barbara Tetreault
DUMMER – At the end of an almost two hour informational meeting on a proposed payment-in-lieu-of taxes agreement with Granite Reliable Power, selectmen asked how many in the crowd of about 30 support that approach. Only three people raised their hands. The majority said they favored the town annually appraising the wind farm property based on its ad valorem or fair market value.
Selectman Dennis Bachand said the informational meeting was set up after voters at the March town meeting overwhelmingly passed a motion opposing a PILOT agreement with Granite Reliable Power for the wind farm components in Dummer. Bachand emphasized the board is still negotiating with GRP's majority owner, Brookfield Renewable Energy Group, and has not signed any agreement.
While all 33 wind turbines are located in the county's unincorporated places, the switching station, maintenance building, and lay down area are all in the town of Dummer.
Representing Brookfield, Attorney Matthew Upton said the company prefers PILOT agreements because renewable energy facilities are very difficult to appraise and such agreements help avoid costly appraisals, appeals and court battles over valuation.
The proposed agreement under negotiation is for eight years and calls for an annual payment to Dummer ranging from $40,000 to $80,000. The agreement sets a
payment of $808 per megawatt of capacity of the generators that are installed and permitted to generate energy. For the 99-megawatt wind farm, that means a maximum payment of $80,000. But Upton said there are times when ISO-New England, which manages the regional grid, curtails the amount of electricity the facility can generate and that would reduce the tax payment. But the town would receive at least $40,000 a year.
If GRP increases the wind farm's overall capacity beyond 99 megawatts, the added capacity would be subject to the same terms.
The town would receive $40,000 to cover taxes from when construction stared through March 1, 2013.
"This agreement took a long time to negotiate," Upton said.
Gary Roberge, head of Avitar Associates of New England, the town's assessing firm, said PILOT agreements benefit both the municipality and property owner by avoiding costly fights over valuation. He said generally neither side is completely happy with the agreement because each has to compromise.
"It stops the bleeding on both sides," he said.
Dummer Town Attorney Bernard Waugh said he is in favor of some agreement between GRP and the town. Without one, he said the two parties are almost guaranteed to end up in court over valuation.
But townspeople questioned how much GRP would pay if the property was appraised at fair market value. Roberge said his firm has appraised the property at $11.4 million. He estimated that would generate between $100,000 and $130,000 in tax revenue. But Upton argued the property is subject to depreciation, which would decrease its valuation.
"The value is there – tax the value," said O'Neil Croteau.
Several residents indicated they were opposed to entering into a PILOT with GRP because of the town and county's past dealings with Brookfield.
The company and Dummer entered up in court in a legal battle over a PILOT agreement for the Pontook hydro facility on the Androscoggin River in Dummer a number of years ago. Earlier this year, GRP challenged the PILOT it reached with the county for the wind farm. GRP argued it should not be held to the full $495,000 payment because ISO-NE had curtailed its power production. The county commission said the agreement clearly stated GRP would pay $5,000 per megawatt of installed capacity. GRP eventually paid the full $495,000.
One resident noted that the town was likely headed for a lawsuit over the assessment of the wind farm even with a PILOT.
"I don't have a lot of faith in Brookfield," said Raymond Holt.
Wayne Moynihan noted the proposed agreement states that if the town disagrees with GRP's calculation of the payment amount, then GRP shall pay what it believes is due while the two sides seek a resolution. Moynihan said if he has a disagreement over the value of his property, he has to pay the full amount while the issue is under appeal. He said GRP should also have to pay the amount the town believes is owed while seeking resolution.
Moynihan also pointed out the agreement states it is null and void if the wind farm ceases to operate for 12 months. At that point, the property would be subject to ad valorem taxation. Moynihan suggested the parties stipulate in the agreement what that ad valorem valuation would be to avoid future disagreement.
Waugh said the meeting had given the board a lot to consider.
"This is not the end of the story," he said.
After the show of hands revealed most still oppose a PILOT agreement with GRP, several residents asked if the board would hold another meeting before making any final decision. The board agreed that it will continue to negotiate with GRP and report back to townspeople.
Selectman Dennis Bachand said the informational meeting was set up after voters at the March town meeting overwhelmingly passed a motion opposing a PILOT agreement with Granite Reliable Power for the wind farm components in Dummer. Bachand emphasized the board is still negotiating with GRP's majority owner, Brookfield Renewable Energy Group, and has not signed any agreement.
While all 33 wind turbines are located in the county's unincorporated places, the switching station, maintenance building, and lay down area are all in the town of Dummer.
Representing Brookfield, Attorney Matthew Upton said the company prefers PILOT agreements because renewable energy facilities are very difficult to appraise and such agreements help avoid costly appraisals, appeals and court battles over valuation.
The proposed agreement under negotiation is for eight years and calls for an annual payment to Dummer ranging from $40,000 to $80,000. The agreement sets a
payment of $808 per megawatt of capacity of the generators that are installed and permitted to generate energy. For the 99-megawatt wind farm, that means a maximum payment of $80,000. But Upton said there are times when ISO-New England, which manages the regional grid, curtails the amount of electricity the facility can generate and that would reduce the tax payment. But the town would receive at least $40,000 a year.
If GRP increases the wind farm's overall capacity beyond 99 megawatts, the added capacity would be subject to the same terms.
The town would receive $40,000 to cover taxes from when construction stared through March 1, 2013.
"This agreement took a long time to negotiate," Upton said.
Gary Roberge, head of Avitar Associates of New England, the town's assessing firm, said PILOT agreements benefit both the municipality and property owner by avoiding costly fights over valuation. He said generally neither side is completely happy with the agreement because each has to compromise.
"It stops the bleeding on both sides," he said.
Dummer Town Attorney Bernard Waugh said he is in favor of some agreement between GRP and the town. Without one, he said the two parties are almost guaranteed to end up in court over valuation.
But townspeople questioned how much GRP would pay if the property was appraised at fair market value. Roberge said his firm has appraised the property at $11.4 million. He estimated that would generate between $100,000 and $130,000 in tax revenue. But Upton argued the property is subject to depreciation, which would decrease its valuation.
"The value is there – tax the value," said O'Neil Croteau.
Several residents indicated they were opposed to entering into a PILOT with GRP because of the town and county's past dealings with Brookfield.
The company and Dummer entered up in court in a legal battle over a PILOT agreement for the Pontook hydro facility on the Androscoggin River in Dummer a number of years ago. Earlier this year, GRP challenged the PILOT it reached with the county for the wind farm. GRP argued it should not be held to the full $495,000 payment because ISO-NE had curtailed its power production. The county commission said the agreement clearly stated GRP would pay $5,000 per megawatt of installed capacity. GRP eventually paid the full $495,000.
One resident noted that the town was likely headed for a lawsuit over the assessment of the wind farm even with a PILOT.
"I don't have a lot of faith in Brookfield," said Raymond Holt.
Wayne Moynihan noted the proposed agreement states that if the town disagrees with GRP's calculation of the payment amount, then GRP shall pay what it believes is due while the two sides seek a resolution. Moynihan said if he has a disagreement over the value of his property, he has to pay the full amount while the issue is under appeal. He said GRP should also have to pay the amount the town believes is owed while seeking resolution.
Moynihan also pointed out the agreement states it is null and void if the wind farm ceases to operate for 12 months. At that point, the property would be subject to ad valorem taxation. Moynihan suggested the parties stipulate in the agreement what that ad valorem valuation would be to avoid future disagreement.
Waugh said the meeting had given the board a lot to consider.
"This is not the end of the story," he said.
After the show of hands revealed most still oppose a PILOT agreement with GRP, several residents asked if the board would hold another meeting before making any final decision. The board agreed that it will continue to negotiate with GRP and report back to townspeople.
Last Updated on Wednesday, 24 April 2013 22:36
Hits: 438
No interest yet in school board vacancy
Written by Barbara Tetreault
BERLIN – With two days left, no one has filed yet to fill the vacant position on the Berlin school board.
As of yesterday afternoon, City Clerk Debra Patrick reported she had not received a single letter of interest in the vacancy created by the resignation of Nathan Morin. The seat runs through 2014.
The deadline to submit a letter of interest in the position is 4 p.m. this Friday, April 26. Candidates must be registered voters in the city. Letters of interest may be submitted to the City Clerk, 168 Main Street, Berlin, or e-mailed to This email address is being protected from spambots. You need JavaScript enabled to view it. .
The council is scheduled to interview candidates at its work session this Monday, April 29.
As of yesterday afternoon, City Clerk Debra Patrick reported she had not received a single letter of interest in the vacancy created by the resignation of Nathan Morin. The seat runs through 2014.
The deadline to submit a letter of interest in the position is 4 p.m. this Friday, April 26. Candidates must be registered voters in the city. Letters of interest may be submitted to the City Clerk, 168 Main Street, Berlin, or e-mailed to This email address is being protected from spambots. You need JavaScript enabled to view it. .
The council is scheduled to interview candidates at its work session this Monday, April 29.
Last Updated on Wednesday, 24 April 2013 22:36
Hits: 159
Trustee estimates $1.5 million needed to stabilize TCCAP
Written by Barbara Tetreault
NORTH COUNTRY – Tri-County Community Action Program's financial reports and books were in such disarray that auditors had to adjust and correct entries representing more than a quarter of the agency's annual budget to produce an accurate fiscal 2012 audit.
In his latest status report to the Coos County Probate Division, special trustee Todd Fahey states an infusion of about $1.5 million is needed to permanently stabilize the organization.
Fahey wrote that "adjusting entries of approximately $5.5 million were needed – and made – to correct accounting errors and to ensure TCCAP's books and financial records were accurate" as of June 30, 2012. He said the adjusting entries were many and varied and represented more than 25 percent of TCCAP's annual $20 million operating budget.
"The size and extent of the entries show how disorganized and adrift the organization's finances were which, in turn, contributed to TCCAP's near collapse in mid-December of 2012," Fahey said.
The recently completed audit, by the auditing firm Mason and Rich of Manchester, show TCCAP sustained an operating loss of approximately $1 million from July 1, 2011 to June 30,2012. Fahey said that was not unexpected given that about $1 million was used to fund operational shortfalls. At the end of June 2012, TCCAP had assets of $8,064,387 and liabilities of $7,423,637
Fahey, who was appointed by the court in December to oversee TCCAP, said since then hundreds of thousands of dollars in expenses have been cut and several programs that perennially lost money were discontinued or replaced with others that break even or generate a small surplus. Still, he said lasting stability for the organization will require an infusion of about $1.5 million.
Fahey reported insurance claims have been filed "under a theory of internal (versus external) misappropriation" to recover $224,000 taken from client funds in the Guardianship Services Program and used to pay TCCAP's general operating expenses. He said there has been no response from the insurer. In the meantime, TCCAP is repaying the fund at the rate of $20,000 a month.
TCCAP has a $750,000 line of credit with TD Bank that contained a Feb. 1 deadline to pay down $350,000 of the amount. The deadline was extended to May 31 and Fahey said he has advised the bank it is unlikely TCCAP will meet that deadline.
The special trustee said TCCAP also does not have the liquid assets to repay the agency's use of a $533,000 advance for the Low-Income Home Energy Assistance Program (LIHEAP).
Fahey said he believes the state must step up with some funding and said there are on-going discussions with key lawmakers on options for funding to help with the agency's debt.
The Coos delegation has discussed a $1 million loan to TCCAP from the state Office of Energy and Planning using Electric Assistance Program funds. The loan would be repaid over 20 years. Fahey said it will become clear during the next few weeks if legislative assistance will be successful. Reaction to the proposal has been mixed.
While the state faces fiscal challenges, Fahey said he is confident state leaders recognize the importance of TCCAP to the vulnerable people it serves in the North Country.
Fahey said an offer has been made to fill the vacant chief financial officer position. The position has been vacant since the termination of Dori Ducharme on Dec. 3. He also reported the agency is advertising for a new chief executive officer. That position has been vacant since Joseph Costello was suspended in December. The closing date for applications is April 30.
The cost of the team of experts overseeing the reorganization of TCCAP totaled over $200,000 as of the end of March. While acknowledging the charges may seem high, Fahey points out the agency has been without a CEO and CFO since December.
Fahey's firm, Orr and Reno, has billed over $116,000 for his services at $275 an hour. John Gilbert, president of the management consulting firm Synchrony Advisors LLC of Exeter, has invoiced over $62,000 for services, and CPA John Killion has billed over $35,000 for services.
In his latest status report to the Coos County Probate Division, special trustee Todd Fahey states an infusion of about $1.5 million is needed to permanently stabilize the organization.
Fahey wrote that "adjusting entries of approximately $5.5 million were needed – and made – to correct accounting errors and to ensure TCCAP's books and financial records were accurate" as of June 30, 2012. He said the adjusting entries were many and varied and represented more than 25 percent of TCCAP's annual $20 million operating budget.
"The size and extent of the entries show how disorganized and adrift the organization's finances were which, in turn, contributed to TCCAP's near collapse in mid-December of 2012," Fahey said.
The recently completed audit, by the auditing firm Mason and Rich of Manchester, show TCCAP sustained an operating loss of approximately $1 million from July 1, 2011 to June 30,2012. Fahey said that was not unexpected given that about $1 million was used to fund operational shortfalls. At the end of June 2012, TCCAP had assets of $8,064,387 and liabilities of $7,423,637
Fahey, who was appointed by the court in December to oversee TCCAP, said since then hundreds of thousands of dollars in expenses have been cut and several programs that perennially lost money were discontinued or replaced with others that break even or generate a small surplus. Still, he said lasting stability for the organization will require an infusion of about $1.5 million.
Fahey reported insurance claims have been filed "under a theory of internal (versus external) misappropriation" to recover $224,000 taken from client funds in the Guardianship Services Program and used to pay TCCAP's general operating expenses. He said there has been no response from the insurer. In the meantime, TCCAP is repaying the fund at the rate of $20,000 a month.
TCCAP has a $750,000 line of credit with TD Bank that contained a Feb. 1 deadline to pay down $350,000 of the amount. The deadline was extended to May 31 and Fahey said he has advised the bank it is unlikely TCCAP will meet that deadline.
The special trustee said TCCAP also does not have the liquid assets to repay the agency's use of a $533,000 advance for the Low-Income Home Energy Assistance Program (LIHEAP).
Fahey said he believes the state must step up with some funding and said there are on-going discussions with key lawmakers on options for funding to help with the agency's debt.
The Coos delegation has discussed a $1 million loan to TCCAP from the state Office of Energy and Planning using Electric Assistance Program funds. The loan would be repaid over 20 years. Fahey said it will become clear during the next few weeks if legislative assistance will be successful. Reaction to the proposal has been mixed.
While the state faces fiscal challenges, Fahey said he is confident state leaders recognize the importance of TCCAP to the vulnerable people it serves in the North Country.
Fahey said an offer has been made to fill the vacant chief financial officer position. The position has been vacant since the termination of Dori Ducharme on Dec. 3. He also reported the agency is advertising for a new chief executive officer. That position has been vacant since Joseph Costello was suspended in December. The closing date for applications is April 30.
The cost of the team of experts overseeing the reorganization of TCCAP totaled over $200,000 as of the end of March. While acknowledging the charges may seem high, Fahey points out the agency has been without a CEO and CFO since December.
Fahey's firm, Orr and Reno, has billed over $116,000 for his services at $275 an hour. John Gilbert, president of the management consulting firm Synchrony Advisors LLC of Exeter, has invoiced over $62,000 for services, and CPA John Killion has billed over $35,000 for services.
Last Updated on Wednesday, 24 April 2013 22:36
Hits: 87
Two local women in Miss New Hampshire Scholarship Competition
Two young local women will be competing in the 67th annual Miss New Hampshire Scholarship competition this weekend at Stockbridge Theatre located at Pinkerton Academy.
Miss Berlin-Gorham Mallory Coulombe and Miss Littleton Linda Montminy will be among the 28 outstanding young women from across the state competing for the title of Miss New Hampshire 2013.
Coulombe, a Gorham resident, will sing 'Voice' and will present her platform on the prevention of and education of tobacco abuse.
Montminy, who grew up in Gorham, will be singing "Someone Like You." Her platform is HOOAH (Helping Out Our American Heroes).
WMUR-TV Sports Director Jamie Staton and Miss New Hampshire 2012 Megan Lyman will emcee the event. The winner will receive a $13,000 scholarship, represent the state at ceremonial functions and welcome visiting dignitaries.
"We are pleased to announce the continued tradition of the Miss New Hampshire Scholarship Competition," stated President and Executive Director of the Miss New Hampshire Organization, Brenda Keith. "Our organization empowers young women by recognizing their levels of excellence in the areas of scholastic achievement, performing arts, healthy living, leadership and community involvement."
Tickets can be purchased for the Miss New Hampshire Scholarship Competition and After Party Gala at the Miss New Hampshire Scholarship Program Office located at 20 East Broadway, second floor, Derry, NH or by calling (603)347-9027. The preliminary competitions on April 25 and 26 begin at 7 p.m. Tickets are $10. Saturday's final competition is at 6 p.m. Tickets range from $20 to $50.
Guests can also celebrate with the newly crowned Miss New Hampshire 2013 and all the contestants at the Center of New Hampshire-Radisson Hotel in Manchester for the After Party Gala. Tickets are $40 each with tables of 10 available for $400.
The Miss New Hampshire Organization is a state chapter of the Miss America Organization. The Miss America Organization began in 1921. Today is the largest provider of scholarships to women in the world. Last year it awarded over $70,000 in scholarships to 28 young women in New Hampshire.
Miss Berlin-Gorham Mallory Coulombe and Miss Littleton Linda Montminy will be among the 28 outstanding young women from across the state competing for the title of Miss New Hampshire 2013.
Coulombe, a Gorham resident, will sing 'Voice' and will present her platform on the prevention of and education of tobacco abuse.
Montminy, who grew up in Gorham, will be singing "Someone Like You." Her platform is HOOAH (Helping Out Our American Heroes).
WMUR-TV Sports Director Jamie Staton and Miss New Hampshire 2012 Megan Lyman will emcee the event. The winner will receive a $13,000 scholarship, represent the state at ceremonial functions and welcome visiting dignitaries.
"We are pleased to announce the continued tradition of the Miss New Hampshire Scholarship Competition," stated President and Executive Director of the Miss New Hampshire Organization, Brenda Keith. "Our organization empowers young women by recognizing their levels of excellence in the areas of scholastic achievement, performing arts, healthy living, leadership and community involvement."
Tickets can be purchased for the Miss New Hampshire Scholarship Competition and After Party Gala at the Miss New Hampshire Scholarship Program Office located at 20 East Broadway, second floor, Derry, NH or by calling (603)347-9027. The preliminary competitions on April 25 and 26 begin at 7 p.m. Tickets are $10. Saturday's final competition is at 6 p.m. Tickets range from $20 to $50.
Guests can also celebrate with the newly crowned Miss New Hampshire 2013 and all the contestants at the Center of New Hampshire-Radisson Hotel in Manchester for the After Party Gala. Tickets are $40 each with tables of 10 available for $400.
The Miss New Hampshire Organization is a state chapter of the Miss America Organization. The Miss America Organization began in 1921. Today is the largest provider of scholarships to women in the world. Last year it awarded over $70,000 in scholarships to 28 young women in New Hampshire.
Last Updated on Wednesday, 24 April 2013 22:36
Hits: 221
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