COMMUNITY UPDATE OCTOBER 23, 2013

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Presentation transcript:

COMMUNITY UPDATE OCTOBER 23, 2013

Purpose of this Meeting Formally announce Six Nations equity investment in both Grand Renewable Wind LP and Grand Renewable Solar LP Provide a summary of the project benefits to Six Nations Provide important updates to the community

Grand Renewable Energy Park GREP 150MW Wind 100MW Solar FACT Grand Renewable Energy Park is scheduled to be operational in 2014 3

GREP: Two Projects 150 Megawatts of Wind 100 Megawatts of Solar Sponsor: Grand Renewable Wind LP Parties: Samsung C&T Pattern Energy Group LP Six Nations (7539223 Canada Ltd) Sponsor: Grand Renewable Solar LP Parties: Samsung C&T Conner Clark & Lunn Infrastructure Six Nations (8490341 Canada Ltd) FACT Grand Renewable Energy Park has a combined investment cost of $1 Billion 4

GREP Development Area FACT Use Kyle’s map here FACT The development is located within the Haldimand Tract 5

Province of Ontario: Land Accommodation On May 27, 2013, the Province of Ontario agreed to a historic land lease revenue assignment in favour of Six Nations as follows: Ontario assigns 100% of the Lease Revenue to Six Nations. Revenue estimated at $9.0 million over 20 years In total, 729.5 acres of ORC lands are being used The remainder of land is privately held This land accommodation will not jeopardize any existing or future land claims. What is total amount of lands used? FACT This is a historic and precedent setting agreement 6

Community Engagement Summary In total, 10 community meetings were held in various locations throughout the community between March 5, 2012 to April 3, 2012 354 attendees 135 written comments received 70% supported the project 15% opposed to the project 15% were undecided FACT All meetings were heavily advertised through flyers, radio, direct mail, and in community papers

Project Background Due to positive community feedback, on April 5, 2012 the Six Nations Elected Council passed a motion to support the Grand Renewable Energy Park; Authorized the Director of Economic Development to proceed with due diligence to assess the benefits of partnering in Grand Renewable Wind Limited Partnership and Grand Renewable Solar Limited Partnership. After completing 16 months of comprehensive due diligence, on August 27, 2013, Six Nations Elected Council approved a 10% equity investment in Samsung’s Grand Renewable Energy Park. Validate this fact with Samsung FACT Six Nations has been in discussion/ negotiation with Samsung since June 2009 8

Grand Renewable WIND Project Location Wind Turbine locations: FACT Grand Renewable Wind LP will have 67 wind turbines

WIND – Updated Benefit Comparison As at 2012 Updated 2013 Net Cash flow $38,800,000 (20 years) Net Cash flow $38,000,000+ (20 years) - vs - FACT No material change in the estimated net cash flow

WIND – Updated Benefit Comparison Equity (Owner) Royalty (Non owner) $38,000,000 (20 years) $22,200,000 (20 years) - vs - FACT Equity generates $15.8MM of additional financial benefit.

Grand Renewable WIND LP: Ownership EQUITY OPTION 100% funds borrowed from RBC Investment $6.799 MM Legal $0.054 Due Diligence $0.120 Closing Costs $0.0425 TOTAL $7.015MM FACT As an equity holder, Six Nations is an owner of the assets. Any future contracts to sell energy will trigger future revenue to Six Nations. 12

WIND Project Milestones The project is currently at the following stage: Financial Close: September 11, 2013 Wind Job Fair will be announced by October 31, 2013 Archeological stage 4 work to be complete by December 2013 Construction is expected to begin: December 2013 Expected date the project Commercial Operation: September 2014

Grand Renewable SOLAR Project location Solar Farm location: FACT Grand Renewable Solar LP will house 445,000 solar panels

Solar Project Site Project is located in the County of Haldimand bounded by Mount Olivet Road to the west, Meadows Road to the north, Sutor Road to the east, and Haldimand Road 20 to the south for most of the site, with a small portion extending south of Haldimand Road 20. The Project will consist of solar modules, inverters, step up transformers, electrical collector lines, a transformer substation, transmission line access roads and construction staging areas.

Solar Park Map

SOLAR – Updated Benefit Comparison As at 2012 Updated 2013 Net Cash flow $9,500,000 (20 years) Net Cash flow $27,000,000+ (20 years) - vs -

SOLAR - Updated Benefit Comparison Equity (Owner) Royalty (Non Owner) $27,000,000+ (20 years) $13,480,000 (20 years) - vs - FACT Equity generates $13.52MM of additional financial benefit.

Grand Renewable SOLAR LP: Ownership 100% funds borrowed from RBC Investment $2.874 MM Legal $0.054 Due Diligence $0.060 Closing Costs $0.023 TOTAL $3.011MM EQUITY OPTION FACT As an equity holder, Six Nations is an owner of the assets. Any future contracts to sell energy will trigger future revenue to Six Nations. 19

SOLAR Project Milestones The project is currently at the following stage: Financial Close: September 24, 2013 Wind Job Fair is planned for November 6, 2013 Archeological stage 4 is now complete Construction is expected to begin: November 2013 Expected date the project Commercial Operation: Q1 2015

Summary of Financial Benefits for Six Nations Equity ownership in the projects will yield the following estimated Economic Benefits to the community: Equity Investment of: $10.030 MM (debt) Generates: Net Revenue from Equity: $65M+ Add: Revenue from Leases: $9.0M TOTAL MONETARY VALUE: $74.0 M over 20 years FACT Actual revenue will be derived from wind and solar production volume in the future

Summary of Ancillary Benefits for Six Nations Direct Employment and Training opportunities $400,000 in post secondary scholarships ($20,000 per year) Indirect Trigger future partnership opportunities Precedent setting lease assignment from Ontario Positive impact on environment

Six Nations Community Hall Solar Job Fair NOVEMBER 6, 2013 Six Nations Community Hall 2pm to 8pm Contact: Grand River Employment and Training or Six Nations Economic Development

Contact Us Matt Jamieson, Director Economic Development mattjamieson@sixnations.ca Nicole Kohoko, Departmental Assistant nkohoko@sixnations.ca 519-753-1950 www.sixnationsfuture.com