Do the math, property values decline around stacks

This is fascinating testimony in the Hopkington biomass power plant case that outlines the negative impact that Laidlaw could have on local property values -- on both sides of the river. Download final_letter.pdf
and here's the full testimony Download louis_court_testimony.pdf

Comments

[Ebenezer Screwed.]

60 days or sooner! Ok 30 more days. Now even this pathetic loser cannot even guestimate a closing date. This City better be prepared to make a better offer to NAD or it will again miss that boat. Or sooner indeed.

What did Berlin do to deserve this. Coinciding with the Federal prison dumping 500 new jobs on the community we have the community in shambles and an eyesore and uncertain future guaranteeing no Federal workers will choose this community to actually live in. What unique thing is the community doing to attract those Federal workers to live in Berlin? I guess even the folks that lobbyed for the prison do not get this historic opportunity and neccesity for the city to improve her appearance, define her future and offer incentives for prison workers to live in the community. Just keep offering incentives only to poor people....

[Lea]

Someone made the point on Byte & Chew - what happened to HH Capital Advisors? I thought they were the buyers and Laidlaw was the leasee?? Bartoszek is sooo full of crap he can't even keep his stories straight.

[Lea]

More BS from the KING of BS himself:

Tuesday, September 9, 2008
Berlin Transaction Update

I've probably received about 50 e-mails over the last week or so inquiring about the "upcoming deadline" for the closing of this deal. I want to clear up any confusion about this.

First of all, there is no "deadline". The buyer (us), the seller (North American) and our investors are all working together on the closing and it has been agreed among the parties that the closing will be extended until the deal is done. There are still some outstanding land use issues concerning easements the project needs, and this needs to be finalized so we can receive a satisfactory title commitment prior to closing. I think we are pretty close to finishing this and once it is done we will make another milestone payment to the seller and set a closing date. This is an issue on which both the buyer and seller are actively working, so it is not any one party's fault.

I realize everyone is anxious to see the deal completed and I think all is going along very well, but folks need to realize that this is a complex property and a complex transaction, so it is hard to estimate how long some events will take.

The best advice I can provide right now is to be patient.

All the best,

Mike

[Jonathan Edwards]

City supports Clean Power's request for federal tax credits

Barbara Tetreault

BERLIN— The city council has written a letter supporting Clean Power Development’s efforts to obtain federal tax credits to help finance its proposed biomass plant.
Clean Power asked the city to support its request for an allocation of New Markets Tax Credits which the company said would be instrumental in the development of the plant.
New Market Tax Credits (NMTC) allow investors to receive a credit against their federal income taxes for investing in designated Community Development Entities which, in turn, invest in projects in low income communities. Berlin has been designated as low income community.
In a letter to the city requesting its support for an allocation of the tax credits, Clean Power head Mel Liston said competition for the credits is highly competitive.
Liston noted Clean Power downsized the proposed plant from 45 megawatts to 25 megawatts because of the results of the study it contracted on biomass fuel availability. He said reducing the amount of power generated, however, also reduces the revenue the facility will generate. He said that loss of revenue makes the tax credits important part of bringing the plant to fruition.
Liston wrote that Clean Power is in the design and planning stages of the project. Once operating, he said the plant would directly employ about 24 people and create up to 150 jobs in the forest products and trucking industries.
Furthermore, Liston said in addition to supplying renewable power to the region’s electric grid, the biomass plant would be able to provide heat, steam, and electricity to adjacent properties at lower cost. He said that should help the city attract other economic growth.
In its letter of support, the city noted the impact of the decline of the paper industry and the closing of the pulp mill on the local economy. Berlin has among the lowest median family income and property value per capita in the state coupled with the highest unemployment and poverty rates in the state.
The council said the Clean Power project would create badly needed new jobs and economic diversity to the city.
Clean Power has also told city officials it will be seeking to make a payment in lieu of taxes on the biomass plant. Last month, Councilor Ron Goudreau and Tom McCue, Jonathan Edwards of the Berlin Board of Assessors, City Manager Patrick MacQueen, and Economic Development Director Norm Charest met in nonpublic session with appraising consultant George Sansoucy to discuss Clean Power’s valuation.

[Plimpton George]

We are all now going to save $7.50 per year. The city manager should be very proud of this accomplishment. However what if instead of us all "Saving" $7.50 how about next year we pave all of Western Avenue instead of 1000 feet? The neglection of those details, maintaining the community infrastructure, costs us all a heck of a lot more than $7.50 a year. It is less exspensive to raise the funds you actually need to maintain the community properly and not disuade those other investors that litterally laugh at the thought of investing in Berlin..... Berliners obsession with cutting and cutting that money to maintain her infrastructure just to keep taxs low has driven taxs through the cieling. That misunderstanding of basic economics has driven people out that take pride in their community and brought people in that only care about that cheap place to live. This will be the legacy of Danderson, Gallus, McQueen and others that are quite capable of securing their own futures but are inept at securing Berlins future. Imagine what influence the appearance of Western Avenue, a main entrance to the community, has on investors&home buyers and what influence and message does it send to your children? What is the real cost of not really paying our bills? In Berlins case the bills have triplexd in ten years!

[Jonathan Edwards]

City supports Clean Power's request for federal tax credits

Barbara Tetreault

BERLIN— The city council has written a letter supporting Clean Power Development’s efforts to obtain federal tax credits to help finance its proposed biomass plant.
Clean Power asked the city to support its request for an allocation of New Markets Tax Credits which the company said would be instrumental in the development of the plant.
New Market Tax Credits (NMTC) allow investors to receive a credit against their federal income taxes for investing in designated Community Development Entities which, in turn, invest in projects in low income communities. Berlin has been designated as low income community.
In a letter to the city requesting its support for an allocation of the tax credits, Clean Power head Mel Liston said competition for the credits is highly competitive.
Liston noted Clean Power downsized the proposed plant from 45 megawatts to 25 megawatts because of the results of the study it contracted on biomass fuel availability. He said reducing the amount of power generated, however, also reduces the revenue the facility will generate. He said that loss of revenue makes the tax credits important part of bringing the plant to fruition.
Liston wrote that Clean Power is in the design and planning stages of the project. Once operating, he said the plant would directly employ about 24 people and create up to 150 jobs in the forest products and trucking industries.
Furthermore, Liston said in addition to supplying renewable power to the region’s electric grid, the biomass plant would be able to provide heat, steam, and electricity to adjacent properties at lower cost. He said that should help the city attract other economic growth.
In its letter of support, the city noted the impact of the decline of the paper industry and the closing of the pulp mill on the local economy. Berlin has among the lowest median family income and property value per capita in the state coupled with the highest unemployment and poverty rates in the state.
The council said the Clean Power project would create badly needed new jobs and economic diversity to the city.
Clean Power has also told city officials it will be seeking to make a payment in lieu of taxes on the biomass plant. Last month, Councilor Ron Goudreau and Tom McCue, Jonathan Edwards of the Berlin Board of Assessors, City Manager Patrick MacQueen, and Economic Development Director Norm Charest met in nonpublic session with appraising consultant George Sansoucy to discuss Clean Power’s valuation.

[Jonathan Edwards]

City supports Clean Power's request for federal tax credits

Barbara Tetreault

BERLIN— The city council has written a letter supporting Clean Power Development’s efforts to obtain federal tax credits to help finance its proposed biomass plant.
Clean Power asked the city to support its request for an allocation of New Markets Tax Credits which the company said would be instrumental in the development of the plant.
New Market Tax Credits (NMTC) allow investors to receive a credit against their federal income taxes for investing in designated Community Development Entities which, in turn, invest in projects in low income communities. Berlin has been designated as low income community.
In a letter to the city requesting its support for an allocation of the tax credits, Clean Power head Mel Liston said competition for the credits is highly competitive.
Liston noted Clean Power downsized the proposed plant from 45 megawatts to 25 megawatts because of the results of the study it contracted on biomass fuel availability. He said reducing the amount of power generated, however, also reduces the revenue the facility will generate. He said that loss of revenue makes the tax credits important part of bringing the plant to fruition.
Liston wrote that Clean Power is in the design and planning stages of the project. Once operating, he said the plant would directly employ about 24 people and create up to 150 jobs in the forest products and trucking industries.
Furthermore, Liston said in addition to supplying renewable power to the region’s electric grid, the biomass plant would be able to provide heat, steam, and electricity to adjacent properties at lower cost. He said that should help the city attract other economic growth.
In its letter of support, the city noted the impact of the decline of the paper industry and the closing of the pulp mill on the local economy. Berlin has among the lowest median family income and property value per capita in the state coupled with the highest unemployment and poverty rates in the state.
The council said the Clean Power project would create badly needed new jobs and economic diversity to the city.
Clean Power has also told city officials it will be seeking to make a payment in lieu of taxes on the biomass plant. Last month, Councilor Ron Goudreau and Tom McCue, Jonathan Edwards of the Berlin Board of Assessors, City Manager Patrick MacQueen, and Economic Development Director Norm Charest met in nonpublic session with appraising consultant George Sansoucy to discuss Clean Power’s valuation.

[Jonathan Edwards]

City supports Clean Power's request for federal tax credits

Barbara Tetreault

BERLIN— The city council has written a letter supporting Clean Power Development’s efforts to obtain federal tax credits to help finance its proposed biomass plant.
Clean Power asked the city to support its request for an allocation of New Markets Tax Credits which the company said would be instrumental in the development of the plant.
New Market Tax Credits (NMTC) allow investors to receive a credit against their federal income taxes for investing in designated Community Development Entities which, in turn, invest in projects in low income communities. Berlin has been designated as low income community.
In a letter to the city requesting its support for an allocation of the tax credits, Clean Power head Mel Liston said competition for the credits is highly competitive.
Liston noted Clean Power downsized the proposed plant from 45 megawatts to 25 megawatts because of the results of the study it contracted on biomass fuel availability. He said reducing the amount of power generated, however, also reduces the revenue the facility will generate. He said that loss of revenue makes the tax credits important part of bringing the plant to fruition.
Liston wrote that Clean Power is in the design and planning stages of the project. Once operating, he said the plant would directly employ about 24 people and create up to 150 jobs in the forest products and trucking industries.
Furthermore, Liston said in addition to supplying renewable power to the region’s electric grid, the biomass plant would be able to provide heat, steam, and electricity to adjacent properties at lower cost. He said that should help the city attract other economic growth.
In its letter of support, the city noted the impact of the decline of the paper industry and the closing of the pulp mill on the local economy. Berlin has among the lowest median family income and property value per capita in the state coupled with the highest unemployment and poverty rates in the state.
The council said the Clean Power project would create badly needed new jobs and economic diversity to the city.
Clean Power has also told city officials it will be seeking to make a payment in lieu of taxes on the biomass plant. Last month, Councilor Ron Goudreau and Tom McCue, Jonathan Edwards of the Berlin Board of Assessors, City Manager Patrick MacQueen, and Economic Development Director Norm Charest met in nonpublic session with appraising consultant George Sansoucy to discuss Clean Power’s valuation.

[Plimpton George]

How many years has the college said it needed a dormitory? We want to build a hotel on the Androscoggin, why dont we build both? The college has implied for ten years it wants a dormitory and would prefer a private developer. The students stay in hotels in Gorham......

Yes Berlin pays more in taxs because it has only focused on keeping taxs down. How many initiatives were never funded in the last ten years? How many public works projects have been put off for ten or more years? That is not paying the bills and Berlin is being punished.

[George Plimpton]

We are all now going to save $7.50 per year. The city manager should be very proud of this accomplishment. However what if instead of us all "Saving" $7.50 how about next year we pave all of Western Avenue instead of 1000 feet? The neglection of those details, maintaining the community infrastructure, costs us all a heck of a lot more than $7.50 a year. It is less exspensive to raise the funds you actually need to maintain the community properly and not disuade those other investors that litterally laugh at the thought of investing in Berlin..... Berliners obsession with cutting and cutting that money to maintain her infrastructure just to keep taxs low has driven taxs through the cieling. That misunderstanding of basic economics has driven people out that take pride in their community and brought people in that only care about that cheap place to live. This will be the legacy of Danderson, Gallus, McQueen and others that are quite capable of securing their own futures but are inept at securing Berlins future. Imagine what influence the appearance of Western Avenue, a main entrance to the community, has on investors&home buyers and what influence and message does it send to your children? What is the real cost of not really paying our bills? In Berlins case the bills have triplexd in ten years!

Who is Charlie Michaels? Has he changed his name to Charlie Bass?

[Allen Walters]

Today the City manager claimed a victory by reducing the tax rate by 11 cents, saving residents 7 dollars a year!!! Is that what he does when he is on the clock for 150,000 a year? Why not just spend the money on the city..... its called investing!

Did someone mention Charlie Michaels? That was a long time ago when Gallus defrauded his supporters, no one remembers that!!!!

Does it bring back memories of the cannon ball run? Private interest sometimes comes back to haunt you.

[Allen. Walters]

It is also important to know where the Senators that will represent the area feel on the issue. It is shamefull that our local Senator has successfully avoided publicly condemning or supporting this historic developement or in our case non-developement. In the meantime we can all assume that Gallus, a former associate of NAD and close friend of Mayor Bob (who we all know supported, as is, a biomass facility Downtowne), we can all assume he is lobbying on our behalf for Downtowne Biomass until he says other wise....

[j]

Yes it is premature. That is why continued education and media exposure of the obstacles these companies face is all too important.

[Allen. Walters]

Time may have passed since the State was actively pushing for a Biomass developer to come to the former pulp site but in the meantime dont forget they found one! And let us not forget the "State" has yet to publicly say they oppose Biomass on that site. They (the State) actively sought a biomass developer for the NAD site, they found one and have yet to proclaim their opposition. Yes forestry professionals affiliated with the state have said there is an inadequate wood supply, but that does not mean the majority of our representation is listening and it is extremely premature, in the absence of any official statement from the State, to believe this company does not have the support of the folks that brought them here.

[jon edwards]

$100,000 selling price on the Groveton mill??? Should that be telling everyone that Wausau recognized the formidable odds any buyer has with wood supply, grid issues, queue placement and locational concerns?

http://www.unionleader.com/article.aspx?headline=Paper+mill+sale+price%3a+%24100%2c000&articleId=90877a71-290f-46e6-9ee0-868fb274d05e

[jon edwards]

Go to citythattreesbuilt.com and you will notice that the debate is heating up again under the most recent post. Tom, who posts there, is an ihub moderator where Laidlaw investors attempt to convince others as to the validity of their stock value. The following is interesting testimony to the developing importance of the wood supply.

Apparently the NH Public Utilities Commission is including the Wood study Clean Power had professionally done on their web site along with a map which has surfaced showing massive amounts of biomass usage within the State of NH already. I'm not so sure they would be including this information on their site if it were so terribly flawed. Sometimes things need to be put in perspective. Tom, who posts on area blogs from time to time, is a moderator for IHUB which is a blog where Laidlaw tries to increase their stock value, and has been taking subject matter pertinent to wood supply out of context where others are dissecting each word in every paragraph and understanding its validity especially in comparison to other wood studies recently performed by UNH and one other study.

http://www.puc.state.nh.us/Electric/SB383/082108Meeting/Clean%20Power%20Development%20-%20Biomass%20Fuel%

[Lea]

Sean, Jerk is a pretty good description but I've heard a few people in Ellicottville use a stronger descriptive phrase in regard to Mr. Bartoszek. I'll let your imagination run amok on that one.

[Jonathan Edwards]

Your analysis is possible, Allen. But a great deal has unfolded since the State initially took biomass developers by the hand to that site. You would see massive protesting around the state by biomass producers who are already in the business and suffering through wood supply issues. Allen, Whitefield temporarily closed the other day due to running out of chips and the loggers I"ve spoken to state that would never have happened during a rainy August in the past. Education without application is worse that worthless, and at this stage the State needs to know that a start up of the Burgess Mill could devastate already functioning biomass companies. Public Service, due to lack of Southern NH development is up here grabbing wood chips as it is. Demand needs to be in harmony with supply. Laidlaw's dream potentially overheats the wires and potentially devastates supply.

[Sean]

Lea,

Good point. I never thought of it in those terms. I guess that just makes him a jerk, not an idiot.

[Jonathan Edwards]

Your analysis is possible, Allen. But a great deal has unfolded since the State initially took biomass developers by the hand to that site. You would see massive protesting around the state by biomass producers who are already in the business and suffering through wood supply issues. Allen, Whitefield temporarily closed the other day due to running out of chips and the loggers I"ve spoken to state that would never have happened during a rainy August in the past. Education without application is worse that worthless, and at this stage the State needs to know that a start up of the Burgess Mill could devastate already functioning biomass companies. Public Service, due to lack of Southern NH development is up here grabbing wood chips as it is. Demand needs to be in harmony with supply. Laidlaw's dream potentially overheats the wires and potentially devastates supply.

[Jonathan Edwards]

Your analysis is possible, Allen. But a great deal has unfolded since the State initially took biomass developers by the hand to that site. You would see massive protesting around the state by biomass producers who are already in the business and suffering through wood supply issues. Allen, Whitefield temporarily closed the other day due to running out of chips and the loggers I"ve spoken to state that would never have happened during a rainy August in the past. Education without application is worse that worthless, and at this stage the State needs to know that a start up of the Burgess Mill could devastate already functioning biomass companies. Public Service, due to lack of Southern NH development is up here grabbing wood chips as it is. Demand needs to be in harmony with supply. Laidlaw's dream potentially overheats the wires and potentially devastates supply.