{"id":2728,"date":"2015-08-30T19:00:45","date_gmt":"2015-08-30T23:00:45","guid":{"rendered":"https:\/\/huntsville.dopperonline.ca\/?p=2728"},"modified":"2016-09-05T20:56:49","modified_gmt":"2016-09-06T00:56:49","slug":"town-moves-forward-with-brunel-locks-hydro-project","status":"publish","type":"post","link":"https:\/\/doppleronline.ca\/huntsville\/town-moves-forward-with-brunel-locks-hydro-project\/","title":{"rendered":"Town moving ahead with Brunel Locks hydro project"},"content":{"rendered":"<p><a href=\"https:\/\/media-doppleronline-ca.s3-accelerate.amazonaws.com\/2015\/08\/Greenbug.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-3436\" src=\"https:\/\/media-doppleronline-ca.s3-accelerate.amazonaws.com\/2015\/08\/Greenbug.jpg\" alt=\"Ariel photo provided by GreenBug energy suggesting the site of the Screw.\" width=\"300\" height=\"201\" \/><\/a><\/p>\n<h6><em>The hydro generation project at the Brunel Locks would include an educational component and is not expected to interfere with its existing uses, as per a municipal staff report.<\/em><\/h6>\n<p>If all goes according to plan, Huntsville residents may see shovels hit the ground at the Brunel Locks in late 2017.<\/p>\n<p>Council is moving ahead with a 40-year-lease and limited partnership agreement with Green Bug Energy Ltd., making it a 15 per cent shareholder in the company\u2019s planned hydro generation.<\/p>\n<div style=\"float: left; margin-right: 14px;\"><strong><broadstreet-zone zone-id=\"45658\" keywords=\"\" soft-keywords=\"true\" zone-alias=\"\"><\/broadstreet-zone><\/strong><\/div>\n<p>The town would lease land at the Brunel Locks to Green Bug Energy for a dollar a year and contribute an estimated $198,000 to the project from general reserves in 2017. In exchange, the Town would receive 15 per cent of net revenues from the sale of power. The 15 per cent is the least amount the Town can hold in order to access Ontario\u2019s Feed-In Tariff Program incentive (FIT).<\/p>\n<p>Initial projections would see the Town making approximately $54,400 a year in returns, starting in 2018.<\/p>\n<p>Town executive staff, supported by legal counsel, have been negotiating the agreements behind closed doors and presented their final drafts for approval at council\u2019s August 24 meeting.<\/p>\n<p>\u201cThere have been several iterations, the ones in front of you today are ones we feel confident in,\u201d said Manager of Parks and Cemeteries Colleen MacDonald, who made reference to the lease agreement\u2019s insurance requirements, as well as additional provisions protecting the Town. She also made note of an out-clause in the partnership agreement, which gives the town the ability to opt out of the project before construction begins.<\/p>\n<p>While Huntsville councillors gave the agreements their stamp of approval, thereby paving the way for a FIT application, some expressed reservations.<\/p>\n<blockquote class=\"modern-quote full\"><p>\u201cI realize everybody likes this project. I have two concerns actually, my biggest one is funding of it from general reserves. So we\u2019re going to fund this project to the tune of $200,000 from general reserves, which has a $2.5 million deficit. I just don\u2019t see how we can keep doing this. How we can keep spending money we don\u2019t have.\u201d<\/p>\n<p><cite>Deputy Mayor, Karin Terziano<\/cite><\/p><\/blockquote>\n<p>Terziano also questioned an allotment of $5,000 for audit fees. Director of Protective Services and Fire Chief Steve Hernen clarified that the fee would be more in tune with $2,000 and only used  if  the municipality feels there\u2019s a reason to audit the books.<\/p>\n<p>Hernen reiterated that once the FIT application has been approved, the Town will have an opportunity to look over a more detailed project plan, design and corresponding financials and decide whether to continue moving forward at that time.<\/p>\n<p>Councillor Brian Thompson asked if the Town would be able to carry a debenture loan to buy more shares of the project in future, Town Treasurer Julia Finch said that while she\u2019s waiting on an official response from the District, debentures are generally for capital expenditures only, not for the purchase of shares in a company. She anticipated that the initial commitment of funds to Green Bug could be treated as a short-term loan.<\/p>\n<p>Councillor Jonathan Wiebe suggested the Town\u2019s <strong><a href=\"https:\/\/doppleronline.ca\/huntsville\/?p=3026\">dividends from Lakeland Holdings Ltd.<\/a><\/strong> could be used to purchase shares in the company. but Finch explained that part of the revenue is used to offset the levy, while the remainder goes to general reserves to pay down the Town\u2019s deficit.<\/p>\n<p style=\"text-align: left;\">Huntsville mayor Scott Aitchison said that in light of the municipality&#8217;s financial woes, he sees the project as a \u201ctremendous opportunity for us to help ease the burden on our taxpayers.&#8221;<\/p>\n<p style=\"text-align: left;\">He also said the budget sub-committee, tasked with making recommendations to council during its 2016 budget deliberations , will have to take a good hard look at what the municipality spends on.<\/p>\n<p style=\"text-align: left;\"><em>What do you think? Is there a risk in the Town investing so heavily in Green Bug?<br \/>\n<\/em><\/p>\n<p style=\"text-align: center;\"><strong><broadstreet-zone zone-id=\"45657\" keywords=\"\" soft-keywords=\"true\" zone-alias=\"\"><\/broadstreet-zone><\/strong><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The hydro generation project at the Brunel Locks would include an educational component and is not expected to interfere with its existing uses, as per a municipal staff report. 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