Foley Hoag Congratulates Client Palmer Capital in Closing Financing for 4.5 MW of Community Wind Projects for the Towns of Scituate and Fairhaven, MA
November 17, 2011
Foley Hoag LLP congratulates its client Palmer Capital Corporation of Cohasset, Massachusetts, in closing of construction and permanent financing for two community wind projects totaling 4.5 megawatts to be located in Scituate and Fairhaven, Massachusetts. The Scituate project is being undertaken by Palmer and Solaya Energy, a subsidiary of Lumus Construction, Inc. of Wilmington, Massachusetts. The Fairhaven project is being undertaken by Palmer, Solaya, CCI Energy LLC and its parent company Cambridge Energy Holdings LLC.
The developers of the Scituate project closed $5 million in financing on July 15, 2011, with the Massachusetts Development Finance Agency (MassDevelopment) and Cambridge Savings Bank. The financing involves issuance by MassDevelopment of a $3,062,956 Qualified Energy Conservation Bond (QECB) which was purchased by Porter Securities, Inc. II, an affiliate of Cambridge Savings Bank. Additional loan facilities provided by Cambridge Savings Bank including a $1,296,164 bridge loan and a $640,880 term loan. The Scituate QECB bond was the first of its kind issued by MassDevelopment.
In a separate subsequent financing structured similarly to the Scituate transaction, the Fairhaven project received construction and permanent financing from MassDevelopment and Cambridge Savings Bank. The financing closed November 10, 2011, and included issuance by MassDevelopment of a $3,035,957 QECB purchased by Porter Securities along with a term loan of $3,285,114 and a bridge loan of $2,100,000 from Cambridge Savings Bank.
The 1.5-megawatt Scituate project will sell all of its electric output to the town of Scituate. The town expects to save $3 million in energy costs over the 15-year initial term of its agreement with the project company. The Scituate project will sell renewable energy certificates (RECs) to the Electric Consumers Alliance of New England, Inc. (doing business in Massachusetts as Mass Energy) (ECANE).
The 3.0-megawatt Fairhaven project will sell all of its electric output to the town of Fairhaven and will sell RECs to the Massachusetts Clean Energy Technology Center (MassCEC).
Foley Hoag lawyers represented the developers of both projects in all aspects of the financings and in the final stages of the development of each project, including negotiating and documenting final agreements with the two towns related to each project’s lease and power purchase arrangements, service and turbine supply arrangements with the supplier of the turbines, terms for interconnection with each town’s local utility (National Grid in the case of Scituate, and NSTAR in the case of Fairhaven), as well as the REC purchase agreements with ECANE and MassCEC.
Mary Beth Gentleman and Adam Wade primarily represented the project companies in the transaction, assisted by other lawyers from the firm’s Energy Technology and Renewables Practice Group practicing in business, finance, real estate and administrative law.
“We are pleased to have worked with the Palmer, Solaya, CCI and Cambridge Energy Holdings teams on these projects,” said Gentleman. “Both projects are great examples of how government and private-sector businesses can come together to develop renewable energy sources that can benefit their communities. Reaching this milestone is a tribute to the determination and persistence of Palmer Capital and the other parties involved in the projects, as well as the towns of Fairhaven and Scituate which took the initiative to host these facilities.”
Wade said: “Congratulations to Gordon Deane and Seth Jacobson of Palmer, as well as to Sumul Shah of Solaya, Jim Sweeney of CCI, and Bhaskar Panigrahi of Cambridge Energy Holdings. Both projects serve as models for other communities interested in reducing their electricity costs and becoming a part of the growing renewable energy industry in the Commonwealth.”
Palmer Capital has been involved in the development, financing and management of more than $2.2 billion of renewable energy and nonconventional fuel projects from Maine to Hawaii during the past 30 years. The company has offices in Cohasset, Massachusetts.
Solaya Energy is the renewable energy development arm of Lumus Construction Inc., a company headquartered in Wilmington, Massachusetts, and is focused on wind, solar and fuel cell power projects throughout the world. Currently, Lumus has 19 megawatts of wind projects under construction and has managed more than 450 construction projects over the past 10 years.
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