Off the table

Developer withdraws community benefit fund

Mayor Robert Quaiff called it both a bribe and blood money. So the White Pines developer took the community benefit money off the table.

A week after a committee of council was set to consider an agreement hammered out between County staff and the developer, everything but the Road Users Agreement (RUA) is now off the table–even though the committee has not yet met.

The County’s policy governing developers of renewable energy projects suggests community benefit payments in the amount of $7,500 per, megawatt (MW) plus four per cent of pthe rojects’ profits. The County also wanted a RUA spelling out which municipal roads and rights of way were to be used and how.

wpd Canada refused to share any of its profits with the municipality. Neither would it give the County $7,500 per MW. Instead, it would offer $3,414 per MW toward a community benefit fund. That deal is set to go before council on Thursday.

In the meantime, many individuals and groups urged council to reject the deal. Mayor Robert Quaiff also wrote to councillors asking them to reject the deal.

On Tuesday night, wpd Canada learned that a stay of activities had been denied and it was free to build 27 industrial wind turbines between Milford and the Prince Edward Point National Wildlife Area.

On Wednesday, it notified the County that its community benefit offer was no longer on the table.

“We were surprised by the controversy that the agreement generated,” said Kevin Surette, speaking on behalf of the developer.

“The Community Benefit Agreement was simply a response to council’s motion of April, 2014 where they indicated we should be required to contribute to a fund. They put forward an amount, and the agreement is simply a response to that amount.”

But that offer has been withdrawn.

Surette says that while the offer is off the table, the company is intent on seeing the County benefit from this project, though it isn’t clear how, or in what form that benefit might take.

“wpd is still very much interested in seeing the community benefit from the $4.3 million that the Community Benefit Agreement represents,” said Surette.

Last week’s council committee meeting was postponed until this week due to the ice storm. It sets up a stormy meeting this week.

If council was in a foul mood last week, news that wpd Canada is refusing to pay anything to the community is sure to make it worse.

But Surette suggests the developer is looking to simplify the discussion with council.

“Council will be asked to consider only the road user agreement,” said Surette. “A Road Users Agreement is put in place to protect the interests of residents and the County. The agreement would ensure that whatever damage wpd causes to County roads and infrastructure is paid for by wpd, and wpd would be required to provide a $2.7- million letter of credit to ensure this is indeed the case. In addition, wpd is to reimburse the County for administrative and legal costs incurred in obtaining the required agreements and permits.”

County roads chief Robert McAuley, along with the County’s solicitors, is urging council support of the now-stripped-down agreement. They contend that if council rejects the deal, the province could use its authority to write its own agreement with the developer, leaving the municipality as a bystander.