September 8, 2007
Contracts, New York

Host Community Agreement Between the Town of Butler and Empire State Wind Energy, LLC

Empire State Wind Energy

Community wind is touted as solving the exploitative relationship of developer and host town. In fact, it conditions the payments the developer would have made anyway on obligations of the town in support of the development.

VI. Host Community Payments.

“An annual host community fee, payable in annual installments, equal to seventy five per cent (75%) of the net revenues received by ESWE for the sale of electricity generated by the Facility will be paid by ESWE to the Town.” [Note that the real value of a wind energy facility is not in the sale of electricity, but in the sale of renewable energy credits (or green tags) and the reaping of tax credits.]

X. Obligations of the Town.

“The Town agrees and covenants that it will not institute or maintain an action pursuant to Article 78 of the Civil Practice Law and Rules against any governmental authority relating to the issuance of any authorization or permit construct and operate the Facility, as defined herein, in the Town of Butler.”

“In the event that the Town, in the future, modifies the terms and conditions of any authorization issued to ESWE or its regulations governing operation of the FAcility in a manner which substantially interferes with the operation of the FAcility, which is inconsistent with any STate regulation of the facility and which requires ESWE to materially change its operations to its significant detriment, ESWE may opt, at its discretion, to terminate this agreement. …”

XII. Purchase Option.

“Upon the expiration of ten (10) years, or upon an earlier termination of this Agreement the Town shall have the option to purchase the Facility …” [Right when the tax credits run out!]

XIII. Contingencies.

“This Agreement is contingent upon the following: ESWE determining, solely within its own discretion, that the Facility is technically and financially feasible. ESWE reserves the right to withdraw from the project at any time prior to the construction of the Facility. In such case this Agreement shall become null and void.” [Note that the Town does not have a similar right.]

Download original document: “Host Community Agreement [1]

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