Loading...
HomeMy WebLinkAboutAttachment #2 - Authorizing Resolution, Committments and Support Letterasby/ Zd/ ZU1 d 14: b5 yn /titi i44y 1 I ANAUXUbb V1LLAbL HAbE k74/ b4 Native Village of Tanacross P.p Box 76009 Tanacross, Alaska 99776 Resolution Number: 2013-04 A Resolution Authorizing Submission of an AEA Renewable Energy Fund Program Funding Application and Making Certain Assurances WHEREAS: the Native Village of Tanacross is the governing body for the residents of Tanacross and is authorized by the United States of America to act on behalf of its tribal members and village residents; and WHEREAS: the Native Village of Tanacross (NVT) is committed to working with village residents and others for the betterment of the residents of Tanacross and the greater Upper Tanana Subregion; and WHEREAS: there residents of Tanacross and the greater upper Tanana Subregion are experiencing high cost electricity due to Alaska Power and Telephone's (AP&T) total dependence on petroleum -fired electrical generation which is contributing to the overall economic distress of the Upper Tanana Subregion; and WHEREAS: the Yerrick Creek hydroelectric project has been identified by AP&T, who has spent much effort and resources to progress this potential to a tangible construct -ready project, and which has great potential to lower the high cost of electrical energy to the Upper Tanana Subregion; and WHEREAS: the NVT and its sister ANSCA village corporation, Tanacross, Inc., have agreed to cooperate with AP&T and support development of the Yerrick Creek Hydroelectric potential (the Project) and are currently developing agreements that will assign roles and responsibilities; and WHEREAS: AP&T, NVT and Tanacross, Inc. have acknowledged that due to the ownership of lands by Tanacross, Inc. which is essential to the development of the Project and due to intrinsic interests of the NV7's membership to the area and need for lower cost electricity, the following project development roles have been verbally agreed to: NVT and Tanacross, Inc. will take the lead in Project financing and coordination of Project implementation with eventual creation of an Independent Power Producer (IPP) entity who will own, operate and sell wholesale power to AP&T 1 UJ/ LJf 4U1 J 1.). GY JU l UUJ4" J f I NI`INLrICVOJ V ILLNVG rh1VG Ul / C1l • AP&T will agree to transference of existing pre -development work and permitting in order to facilitate successful Project construction and operation and will distribute produced electrical energy to the benefit of consumers of the Upper Tanana Region • It has been acknowledged by all parties that the refinement of the roles and responsibilities of this Project's development are under further negotiations and cooperation. WHEREAS: the NVT desires submit an AEA Renewable Energy Fund Program Funding Application for the purpose of partially funding the following finance plan: • USDA RUS High Energy Cost Program: $ 1,500,000 • Alaska Renewable Energy Fund: $ 6,000,000 • U.S. Treasury New Markets Tax Credits: $ 5,0Og000 • IPP long-term debt financing: 6 500 000 $19,000,000 NOW, THEREFORE BE IT RESOLVED: this date that the Native Village of Tanacross authorizes preparation and submission of an AEA Renewable Energy Fund Program Funding Application and hereby designates Herbert Demit, NVT President, as the authorized signatory on all documents related to the application, closing of the transaction as well as access to and disbursement of funds; and BE IT FURTHER RESOLVED: this date that the Native Village of Tanacross authorizes Council staff to seek out:the funding sources listed in this resolution in order to complete the financing plan for the Yerrick Creek Hydroelectric Project; and BE IT FURTHER RESOLVED: that the Native Village of Tanacross authorizes Council staff person, Jeff Weltzin, to serve as the point of contact for this AEA Renewable Energy Fund application and that the Native Village of Tanacross certifies that it is in compliance with applicable federal, state and local law including existing credit and federal tax obligations. Certification This resolution was duly considered and adopted at the Native Village of Tanacross' regularly held meeting on August 28, 2013 and passed by a majority vote: ��_ Yes, � _ No. 9- ^ �� Herbe,A Demit - President NVT Council Member Date 2 i t W. I9rh T('ri-ace Klf*ns lap'. MO by 10^ September 23, 2013 Alaska Energy Authority Shawn Calfa — Grant Manager 813 West Northern Lights Blvd. Anchorage, Alaska. 99503 RE: Support for Native Village of Tanacross' Yerrick Creek Hydroelectric Project AEA REF Funding Application Dear Mr. Calfa, I am writing to describe Travois New Markets' planned support of the Native Village of Tanacross' (NVT) exciting initiative to lower the high cost of electricity being experienced in the Upper Tanana Subregion through development of the Yerrick Creek Hydroelectric Project. First, I would like to introduce our company to the Alaska Energy Authority. Founded in 1995, Travois is a mission -driven consulting firm focused on promoting housing and economic development for American Indian, Alaska Native and Native Hawaiian communities. Most relevant to the Yerrick Creek Hydroelectric Project, is Travois' work utilizing New Markets Tax Credits to promote rural and Native American economic development. We raise capital for affordable housing and economic development primarily through the I.ow Income Housing Tax Credit (LIHTC) program and the New Markets Tax Credit (NMTC) program. Travois also provides the guidance needed to ensure that that projects secure financing, progress through each milestone, and meet all regulations and requirements. Recently, Travois has been working with the NVT to include the Yerrick Creek Hydroelectric Project in Travois' recent New Markets Tax Credits (NMTC) application submitted to the U.S. Department of Treasury on September 17, 2013. Travois featured the Yerrick Creek Hydroelectric Project in our NMTC allocation application as a prime example of how the Yerrick Creek Hydroelectric Project's use of NMTCs can significantly lower the high cost of electricity being experienced by the residents of the Upper Tanana Subregion. For AEA's information, the U.S. Treasury's NMTC Program was established by Congress in 2000 to spur new or increased investments into operating businesses and real estate projects located in low-income communities. The NMTC Program attracts investment Shawn Calfa - Grant Manager Page Two capital to low-income communities by permitting individual and corporate investors to receive a tax credit against their Federal income tax return in exchange for making equity investments in specialized financial institutions called Community Development Entities (CDEs). The credit totals 39 percent of the original investment amount and is claimed over a period of seven years (five percent for each of the first three years, and six percent for each of the remaining four years). As an independent CDE, Travois works with a vast network of leverage lenders and NMTC investors to serve a diverse, nationwide service area comprising the Native communities of the United States. Travois' recent NMTC allocation application is requesting $90 million. of credits. Travois is excited about featuring the Yerrick Creek Hydroelectric Project in our NTMC allocation application due to this project's significant potential beneficial impacts to the economically distressed residents of the Upper Tanana Subregion. We expect to know the outcomes of our NMTC allocation application by March, 2014 and would be ready to work the NVT to structure a finance deal for the Yerrick Creek Hydroelectric Project soon after the Treasury's NMTC allocation announcement or about April, 2014. NMTC finance deals typically fund about 25% of a project's total development costs or in the case of Yerrick Creek Hydroelectric Project, Travois expects a NMTC contribution of approximately $5 million to the project. As you are aware, the Native Village of Tanacross (NVT) is working to form an Independent Power Producer (IPP) to raise construction funding to build and own the planned Yerrick Creek Hydroelectric Project. This approach includes NVT working with its sister ANCSA village corporation, Tanacross, Inc.(Project land owner) and with the original project sponsor, Alaska Power and Telephone (AP&T) to cooperatively promote and develop the Yerrick Creek Hydroelectric Project. In conclusion, Travois is very excited about the Yerrick Creek Hydroelectric Project and we would like to meet with you and your staff to further explore Travois' assistance to this project's successful development. Sincerely, Phil Glynn Vice President of Economic Development August 30, 2013 To: President Herbert Demit Native Village of Tanacross P.O. Box 76009 Tanacross, Alaska 99776 Re: Support of USDA RUS High Energy Cost Program Yerrick Creek Hydroelectric Project Application Dear President Demit, As President of Tanacross Incorporated, which is the ANCSA village corporation for Tanacross and is the major landowner of lands in the Tanacross area, I am writing to express support for the Native Village of Tanacross' (NVT) funding application to the USDA RUS High Energy Cost Program for the purpose of seeking partial construction funding for the Yerrick Creek Hydroelectric Project. As you are aware, Tanacross Inc. is working with the Native Village of Tanacross (NVT) to form an Independent Power Producer (IPP) to raise construction funding to build and own the planned Yerrick Creek Hydroelectric Project. This approach is new to both Tanacross Inc. and NVT. We are working with the original project sponsor, Alaska Power and Telephone (AP&T) to cooperatively explore, promote, and, if feasible, develop the Yerrick Creek Project. Currently, all three parties are drafting a cooperative Memorandum of Understanding (MOU) for approval in the near future. Key elements of the three -party collaboration are envisioned as follows: • NVT will take the lead in raising project development funding • Tanacross Inc. and NVT will create an IPP for the Project's construction, operation, and power sales to AP&T 0 AP&T may be contracted as the Project's final designer, construction manager and operator In conclusion, I understand AP&T has written a support letter to NVT in regards to the submission of NVT,s USDA RUS High Energy Cost Program Yerrick Creek Hydroelectric Project Application. We are in support of said application. Sincerely, IILJ a,_ Robert L. Brean President Tanacross Inc. P.O. Box 76029 Tanacross, Alaska 99776 AL.ASx.A GxrE1v.Ay ScHooL DisTAicr P.O. BOX 226 TOK, AK "780 907-883-5151 Fax:907-883-5154 TODD POAGE, SUPERINTENDENT September 22, 2013 Herbert Demit - President Native Village of Tanacross P.O. Box 76009 Tanacross, Alaska 99776 RE: Support for the Yerrick Creek Hydroelectric Project Dear President Demit, I am writing tm behalf' of, the Alaska Gateway School District (AGSD) to support Native Village of Tanacross' plans to develop the Yerrick Creek I lydroelectric Project. Like the Tanacross Village, AGSD is experiencing electriciiN costs priced at S.51 per M"lt which is causing economic distress to our budget. It is AGSD's ii(eistmidii-iliat APRT, Native \-illa-e ot' "Tanacross and Tanacross, Inc. are now cooperating in the development the Yerrick Creek 1-1)tiroelectric Project. As you aware AGSD is a major power consumer and the current liigli electricity costs at Tok, Tanacross. Dot Lake and Tetlin negatively impact the school district's budget and financing to carry -out our educational mission to the approximately 420 students enrolled in the .-Maska Gateway School District this school year. It is AGSD's hope thatthe seasonal provision of the hydroelectricity from Yerrick Creek will contplinrent efforts of others to develop woody biomass combined heat and power systems (CHP) in the Lipper Tanana Subregion. The Yerrick Creek hydro project will provide most of its electricity during the spring throw*h Tall times while a CHP projectis best suited to provide electricity during the winter time rind wlien tite excess heat of a CHP plant can be used for space heating purposes. In the case of AGSD's woody biomass CI -III plant currently operating, provision of reasonable priced electricity during non -winter times will complement pour CHP plant's operations. Good luck with your project development activities. Sincerely, Todd Poage Superintendent "ED1UC.9tTINCq AX.0 STuDEN?S To RE.Ft.cH THEIR f'UG£ P0?EN7T-aL .AS RESPONSIBLE CITIZENS. Alaska REACH Academy Dipt Lake Schnol Eagle Community School Menta.ta Lake Kafir ,lishu School rrn7l9Wt-2591 i�nni 882-16 6, (907) 547-2210 ,9071 ".1 ,s; . r:uiacross School I'eUia Achiml Tok School Walter Nul-11 N) S,-h,.ot i'107i7iW 4391 , IN. ;7i.%2d. t'_i) (907)883-5165 ,^i,-i"-N 2"S" ALASKA POWER & TELEPHONE COMPANY P.O. BOX 3222.193 OTTO STREET PORT TOWNSEND. WA 98368 (360) 385-1733 • (800) 962-0136 FAX (360) 385-5177 September 23, 2013 Re: State of Alaska REF; Application by Native Village of Tanacross To Whom it imay Concern: Alaska Power & Telephone Company (AP&'I) supports the application by the Native Village of Tanacross (NVT) under the State of Alaska Renewable Energy Fund which allow the cooperative collaboration of AP&T, NVT, and Tanacross, Inc. to move the proposed Yerrick Creek Hydropower Project towards its construction. The area that would be served by the Yerrick Creek Hydropower Project is now totally dependent upon diesel as the means to generate its electric power. AP&T is believes this new collaboration will result in relief by substituting renewable energy for diesel at a lower cost which will result in economic relief from the current high energy prices. Sincere , Robert S. Grimm, CEO' Alaska Power & Telephone Company P.O. Box 3222 PortTownsend, WA 98368 800-982-0136 x120 Office 360-285-1733 x120 Office 360-301-3636 cell WWW. APTALASKA.COM Tetlin IRA Council P.O. Box 797 Tok, Alaska 99780 September 22, 2013 Herbert Demit - President Native Village of Tanacross P.O. Box 76009 Tanacross, Alaska 99776 RE: Support for the Merrick Creek Hydroelectric Project Dear President Demit, I am writing on behalf of the Tetlm IRA Council to notify you that the Tedin IRA Council (Tetlin) supports Native Village of Tanacross' plans to develop the Yerrick Creek Hydroelectric Project. Like the Tanacross Village, Tetlin Village is experiencing electricity costs priced at $.51 per kWh which is causing economic distress to our village residents and businesses. It our tribe's belief that the seasonal provision of the hydroelectricity from Yerrick Creek will compliment efforts of others to develop woody biomass combined heat and power systems (CUP) in the Upper Tanana. Subregion. The Yerrick Creek hydro project will provide most of its electricity during the spring through fall times while a CHP project is best suited to provide electricity during the winter time and when the excess heat of a CHP plant can be used for space heating purposes. Tetlin IRA Council is also working to develop a hard rock mineral prospect on our lands and if this mineral development is to reach the production stage, a reasonable cost source of electricity will be needed. The Yerrick Creek hydro project could help to stimulate this economic development project on our tribal lands which will provide jobs and revenues to our tribal members. Good luck with your project development activities. Sincerely, Dann dams First Chief Tok Chamber of Commerce 0 40 L PO Box 389 Tok, Alaska 99780 e D 907-883-5775 P 907-883-5773 F Dear Mr. Grimm The topic of rising energy costs and the severe burden it has placed on our businesses here in Tok continues to be a top priority for our Chamber. As the President of a company known for innovation and renewable energy solutions we are sure that you understand and share these same concerns. With the commerce in our community in a negative spiral and tourist numbers severely lagging the margins we enjoyed in the summer that sustained through the winter months no longer exist. We applaud your efforts to stabilize and reduce electric rates through alternative energy opportunities. Utilization of biomass would have multiple beneficial effects as it not only serves to reduce extreme fire hazards, but would create long term jobs as well as inject energy production dollars back into our community. Job creation is extremely important to the health and well-being of our community and area. During this last legislative session our State Representative in budget subcommittee hearings expressed our fragile economy well. He noted that creating or losing a job here in Tok has the same effect as creating or losing over a hundred jobs in Anchorage. Our Chamber stands ready to work with AP&T and lend support as you move forward on bringing these solutions to fruition including both our tremendous biomass potential as well as seasonal hydro through Yerrick Creek. As these energy projects evolve sharing power with Glennallen is also something we see as beneficial to our community. We look forward to working expeditiously with AP&T in achieving these solutions and encourage you to communicate directly with us at anytime. Thanks again for coming to Tok last week to hear our concerns. Sincerely, ihn A. Rust' ak, President John A. Rusyniak, President 907-883-3124 H, 907-505-0305 C iohn@rusyniak.com