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HomeMy WebLinkAboutMt. Alice Harbor Development Project App Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 1 of 16 9/2/2008 Application Forms and Instructions The following forms and instructions are provided for preparing your application for a Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA) and the forms are available online at http://www.akenergyauthority.org/RE_Fund.html The following application forms are required to be submitted for a grant recommendation: Grant Application Form GrantApp.doc Application form in MS Word that includes an outline of information required to submit a complete application. Applicants should use the form to assure all information is provided and attach additional information as required. Application Cost Worksheet Costworksheet.doc Summary of Cost information that should be addressed by applicants in preparing their application. Grant Budget Form GrantBudget.xls A detailed grant budget that includes a breakdown of costs by task and a summary of funds available and requested to complete the work for which funds are being requested. Grant Budget Form Instructions GrantBudgetInstr.pdf Instructions for completing the above grant budget form.  If you are applying for grants for more than one project, provide separate application forms for each project.  Multiple phases for the same project may be submitted as one application.  If you are applying for grant funding for more than one phase of a project, provide a plan and grant budget for completion of each phase.  If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted.  If you have additional information or reports you would like the Authority to consider in reviewing your application, either provide an electronic version of the document with your submission or reference a web link where it can be downloaded or reviewed. REMINDER:  Alaska Energy Authority is subject to the Public Records Act, AS 40.25 and materials submitted to the Authority may be subject to disclosure requirements under the act if no statutory exemptions apply.  All applications received will be posted on the Authority web site after final recommendations are made to the legislature. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 2 of 16 9/3/2008 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Mt. Alice Development, Inc. Type of Entity: An Alaskan Bussines Corporation Entity # 116378 Mailing Address P.O. Box 25 Seward, AK. 99664 Physical Address Mile 2 Nash RD., Seward, AK. Telephone (907)362-3868 Fax(907)224-6054 Email pointmarineak@yahoo.com 1.1 APPLICANT POINT OF CONTACT Name Timothy L. McDonald TitlePresident, Mt. Alice Development, iNC Mailing Address P.O. Box 25 , Seward, AK. 99664 Telephone (907)2246014 (907)362-3868 Fax(907)224-6054 Email pointmarineak@yahoo.com 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or x An independent power producer, or A local government, or A governmental entity (which includes tribal councils and housing authorities); Yes or No 1.2.2. Attached to this application is formal approval and endorsement for its project by its board of directors, executive management, or other governing authority. If a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate Yes or No in the box ) Yes or No 1.2.3. As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement. Yes or No 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached grant form. (Any exceptions should be clearly noted and submitted with the application.) Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 3 of 16 9/3/2008 SECTION 2 – PROJECT SUMMARY Provide a brief 1-2 page overview of your project. 2.1 PROJECT TYPE Describe the type of project you are proposing, (Reconnaissance; Resource Assessment/ Feasibility Analysis/Conceptual Design; Final Design and Permitting; and/or Construction) as well as the kind of renewable energy you intend to use. Refer to Section 1.5 of RFA. Mt. Alice Harbor is a many layered project culminating in a small live/work/ Resort community dedicated to a sustainable environment with Renewable energy the core strength of the project, lowering long term costs and environmental impact while at the same time working to be the innovation leader for other developers and communities to follow This project, both inside and outside the city limits of Seward, will include Reconnaissance, Resource Assessment, add. Feasibility Analysis, add. Conceptual Design, Final Design and additional Permitting and Construction. The Renewable Energy Resources available to this project include but are not limited too: Woody fuel bio-mass (the NorthWest kenai penn. Has experienced a spruce bark beetle epidemic) for burning in Low-emission central furnaces, Solar and Wind Power, Wave Activated power generation Buoys (Harbor channel buoys) Tidal power generation units if applicable, both Geo-thermal and Natural gas potential must be assessed (test well drilled) In stream hyro power Also for study and design implementation if applicable, Digester gas and other recycling energy strategies(wasteheat recovery) 2.2 PROJECT DESCRIPTION Provide a one paragraph description of your project. At a minimum include the project location, communities to be served, and who will be involved in the grant project. Mt. Alice Harbor Development project is in and around Seward at mile 2 Nash Rd. the service road to the NE side of Ressurection bay 1.5 miles across from the municipal boat harbor on the NW side, serving the needs of the local population as a community and destination resort, boating access and public access to the Fishing resources of the area. Also serving the needs of the international community supporting Seward,s role as a burgeoning Summertime international tourism hub and promoting the sustainability of year round tourism. Local Engineers, Surveyors, Municipal department heads etc. have expressed positive input and eagerness to work on the project. The Architects, Project managers are ready to proceed. 2.3 PROJECT BUDGET OVERVIEW Briefly discuss the amount of funds needed, the anticipate d sources of funds, and the nature and source of other contributions to the project. Include a project cost summary that includes an estimated total cost through construction. Reference Pro-Forma Summary, $100,299,650. U.S. Total Project costs *(their may be mistakes in current pro-forma/prospectus) Before factoring in an additional 20% for Renewable Energy technology and 20% for inflation proofing the project budget against rises in Labor & Materials costs Real estate Purchases 2009 Via Options to Purchase (to be 11 parcels total) $3,473,250. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 4 of 16 9/3/2008 Phase one: Preliminary Harbor Basin & channel dredge & cleanout $600,000. (Basic Harbor basin is step one to guarantee,ing vessel slip to Mt. Alice Point Home buyers if they desire to lease or purchase a slip for their boat) Move ahead on permitting schedule for full development build out with 1st priority Hill zoning so construction can proceed on Mt. Alice Point Homes and the Point Lodge/Resort Construction management, Engineering & architects/consultants 09 $600,000. Cleanup, grade work, roads and preconstruction $2,000,000. Renewable energy, Resource Assessment, feasibility analysis, Conceptual designs, Final Design and Permitting and preliminary Construction and testing of Renewable Energy intergrated systems. $4,000,000. 1st, 6 Mt. Alice Point Homes and pre-liminary site prep and construction for The Point Lodge $4,000,000. Total Renewable Energy Grant request for year 2009 $ 14,673,250. It is imperative that the momentum received from the injection of Renewable Energy Grant funds to Mt. alice Harbor Development be transmitted to the market as confidence in Renewable Energy Power as it is applicable to this development. Wether it is the private sector that steps up and underwrites the Bulk of the financing for this project or the Alaska Energy Authority thru AIDEA this project will be a leader in Renewable Energy Implementation in modern Development projects. It is anticipated that once the first 6 Point homes are funded 09 They are free to be marketed and sold, Likewise some of the slips in the preliminary basin may be leased until permitting of the final harbor basin is accomplished and then a percentage of the vessel slips in the harbor may also be marketed and long term leases (20 yrs) sold to start the preliminary cash flow 09/10 2.4 PROJECT BENEFIT Briefly discuss the financial benefits that will result from this project, including an estimate of economic benefits(such as reduced fuel costs) and a description of other benefits to the Alaskan public. The Overall goal of Mt. Alice Harbor is a cutting edge, sustainable community, in a time of unprecedented growth in Alaska,s harbor and community infrastructure. Seward can lead the way with a Bold long term approach to community building, by the use of several intergrated Renewable Energy Systems It is estimated tha at least 20% of Mt. Alice Harbor,s energy can be produced on site to start and that percentage can be increased as the technology becomes available with 100% Sustainable Renewable Energy the eventual Goal. This Eco-Community Borders the Ressurection and Salmon Creek estuaryies, public access to Salmon Fishing and other natural pursuits is enhanced with a development buffer zone, enhanced access, parking and green zones for the public. 2.5 PROJECT COST AND BENEFIT SUMARY Include a summary of your project’s total costs and benefits below. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 5 of 16 9/3/2008 2.5.1 Total Project Cost (Including estimates through construction.) $140,299,650. 2.5.2 Grant Funds Requested in this application. $14,673,250. 2.5.3 Other Funds to be provided (Project match) $ 1,467,325 shares common stock, Mt. Alice Development Inc. $2. par value per share 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $17,607,900. 2.5.5 Estimated Benefit (Savings) $2,500,000. per year aver. Savings per year in fuel oil 2.5.6 Public Benefit (If you can calculate the benefit in terms of dollars please provide that number here and explain how you calculated that number in your application.) $Public benefit is large and varied, direct benefit in fuel oil savings each year, enhanced environmental protection for estuary enhanced public access to sport and subsistence fishing and increased public availability to boating slips and access Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 6 of 16 9/3/2008 SECTION 3 – PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application. 3.1 Project Manager Tell us who will be managing the project for the Grantee and include a resume and references for the manager(s). If the applicant does not have a project manager indicate how you intend to solicit project management Support. If the applicant expects project management assistance from AEA or another government entity, state that in this section. Project Managers to be David and Steven Hawkins Jointly, Partial resume included, David Hawkins has 4.5 years in Moscow Russia helping the Russians with buildings and infrastructure after the fall of Communism in the early 1990,s . Moscow has a similar climate to parts of Alaska. Mt. Alice Harbor is a many layered project with over 100 boats slips, 100 residences and 20 businesses (approx) It is assumed prudent and expected That Alaska Energy Authority would want to appoint a project management assistant as liason between Mt. Alice Harbor and AEA Also perhaps a Contractor Quality Control person could be appointed by AEA at the appropriate time in the construction schedule. 3.2 Project Schedule Include a schedule for the proposed work that will be funded by this grant. (You may include a chart or table attachment with a summary of dates below.) Mt. Alice Harbor Proposed work schedule 2009 1. Authorize Exercising of Real Estate Purchase options on Project property (11 parcels) Establish field office for up to 4 Management and Engineering personal at Seward Alaska Feb./March 09 $3,473,250. 2. Authorize appropriate Project management oversite, Surveys, Engineering studies, Testing, Permitting, Feasibility of Renewable Energy Systems, Pre-Construction etc. as approperiate March/April 09 $600,000. 3. Notify U.S. Army Corp of Engineers of intent to exercise permit to dredge (Maintenance) Harbor Basin and Channel, exercise Dredge permits and utilize dredge spoils to bring portions of project to grade. $600,000. Feb./March 09 4. Environmental and general cleanup of site, grade work, site prep, roads and pre- construction on Hill. April/May/June/ July 09 $2,000,000. 5. Final design and Permit submittal Harbor area, Testing and Engineering of appropriate Renewable Energy Systems Intergrated, Preliminary construction June/July/August 09 $4,000,000. 6. Site prep and Pre-Construction on Point Lodge, Final Construction to move in of first 6 of (66) Point Homes July/August/September/Oct 09 $4,000,000. Total Renewable Energy Grant Funds Utilized 2009 $ 14,673,250. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 7 of 16 9/3/2008 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. !. The Options to Purchase Real Estate (11 parcels) were set up prior to RE Grants being available, The Options to Purchase RE were deemed viable by Mt. Alice Development Inc. at that Time, and Alaska,s economy is resiliant and has not experienced the meltdown that the lower 48 states have been experiencing. It is assumed that Mt. Alice Harbor is still a viable Eco-development and time to construct & market will allow the market to recover and improve here in Alaska Exercising the Options to purchase Real Estate in a timely manner (within contract deadlines) is key to this project, there is no guarantee these Options to Purchase would be available again if ignored. Funding the Real Estate Purchase for Mt. Alice Harbor with REG Funds will project confidence to the market place and should assist Mt. Alice Development in getting a primary sponsor/underwriter for this important Renewable Energy project. 2. Having an operating Basin and channel under current permits and accelerating the permitting process for the final Basin design is of primary importance to the whole project. Contact must be maintained with the U.S. Coastguard as regards berthing the Cutter O/S Mustang and also the University of Alaska/ Fairbanks as regards the new (2012?) 240’ Artic Research vessel which does not have a designated berth yet. (Basin design challenges for this vessel have yet to be addressed) 3. Permitting concerning sawmill creek (seasonal runoff stream – 6 months average flow) relocation and sawmill lake need to be accelerated to final design - authorize engineers to finalise studies and engineering for permitting conveyance 4. Renewable Energy intergration think tank assisting engineers and design - We have a unique opportunity to use completely advanced technology relating to this project and its environment, we can project into the future even as some of the systems we will use on this project for Renewable Energy may not even have a working model or be available on the open market, our RE Engineers may pick and choose the best and latest technology for this projet. 3.4 Project Resources Describe the personnel, contractors, equipment, and services you will use to accomplish the project. Include any partnerships or commitments with other entities you have or anticipate will be needed to complete your project. Describe any existing contracts and the selection process you may use for major equipment purchases or contracts. Include brief resumes and references for known, key personnel, contractors, and suppliers as an attachment to your application. H2Architects to be the project manager, Tim McDonald, local knowledge consultant, North Star Construction of Soldotna Alaska (currently finishing the Dirt –ground prep- contract for the new assisted care living center in Seward, they also have small paving contracts for the city of Seward. North Star Construction thru talks with Mt. Alice Dev. CEO has indicated potential and willingness to mobilize for a gravel removal contract (Basin & Channel excavating) in spring 09 Mr Ted Forsi PE of Forsi Consulting Group of Soldotna Alaska has indicated willingness upon deposit to start immediate work on Civil, Transportation, Water, and Wastwater engineering services. Other Engineers and specialist will be engaged as needed on the local open market. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 8 of 16 9/3/2008 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Monitoring of the project will be accomplished with matrix approach, CEO & Pres. will be working directly on the projet as consultant day to day and will be able to assist project managers in oversite, Also Alaska Energy Authority may install a manager on site to assure day to day procedures and oversite with direct reporting to the Authority. 3.6 Project Risk Discuss potential problems and how you would address them. Q. Support of the City of Seward changing for the worse do to changes to management and council. A. Continue the round robin of local Public Relations contacts and explaining the many positive benefits of Mt. Alice Harbor. Low probability of regime change in government and government is vested as a partner in project due to tax profile that accrues to it (11 different tax revenue streams to City and Borough) Q. Enviromental concerns perceived as not receiving enough consideration by the public. A. The local environmental lobby has been kept in the loop as to this projects progress, Mt. Alice Harbor is generally well received as it is understood that this project involves cleaning up a mature commercial site and enhancing, protecting and providing public access to the environmental resources, protecting fish and game is a top priority. SECTION 4 – PROJECT DESCRIPTION AND TASKS  Tell us what the project is and how you will meet the requirements outlined in Section 2 of the RFA. The level of information will vary according to phase of the project you propose to undertake with grant funds.  If you are applying for grant funding for more than one phase of a project provide a plan and grant budget for completion of each phase.  If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. 4.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available. Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be available for the market to be served by your project. Wave and Tidal Energy are not only renewable but predictable to, could form the basis of our Energy system. Comprehensive studies as to construction costs, static efficiency and other questions on our Renewable Energy options will have to be done before final decisions can be made. A test tower for wind energy would be appropriate, Test wells may need to be drilled for Geo- Thermal energy and Natural Gas Organic Bio-mass availability projected etc. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 9 of 16 9/3/2008 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. The City of Seward Energy grid, resale from Chugack Electric Utility with backup diesel generation here in Seward The Project would hook to the exsisting power grid as partial power and backup for our Renewable Energy Systems 4.2.2 Existing Energy Resources Used Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any impact the project may have on existing energy infrastructure and resources. This project could hook to the exsisting power grid thru a City owned sub-station approx 2 miles away, depending on our power requirements we would need an upgrade to that substation Mt. Alice Harbor should enhance the Municipal Electrical Utility by increasing the customer base )Mt. Alice Harbor would be a commercial rate payer) and increasing overall power available to the Seward power consumer thru excess energy sales to Municipal Utility during times of peak Renewable energy production. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Most current residents of Seward and surrounding area are customers of City of Seward Electrical Utility, several charges accrue and rates are considerably higher than what a utility customer in Anchorage would pay. Mt. Alice Harbor is intent on becoming a leader in applied Renewable Energy, a exporter of information and expertise in Modern intergrated Renewable Energy Systems as they apply to Alaska,s marine and coastel environment. Mt. Alice Harbor should assist the Seward resident and ratepayer due to the revenue,s that accrue to the City of Seward thru the tax revenue stream from this project. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 10 of 16 9/3/2008 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, and environmental issues. 4.3.1 System Design Provide the following information for the proposed renewable energy system:  A description of renewable energy technology specific to project location  Optimum installed capacity  Anticipated capacity factor  Anticipated annual generation  Anticipated barriers  Basic integration concept  Delivery methods Engineering to be commisioned 4.3.2 Land Ownership Identify potential land ownership issues, including whether site owners have agreed to the project or how you intend to approach land ownership and access issues. The main 8 parcels for the body of the projedt (9 parcels after survey of Alaskan Barge & Salvage parcel) were negotiated as a contiquous piece of waterfront realestate with grandfathered ocean access rights. The main access from Nash road and hill property along with harbor frontage are guaranteed by these options to purchase. The options to purchase on the Sorenson property connected to the project control a 2nd access to the property from Nash rd via Johnson ave. these two parcels of 8.73 acres total also give extra acres for utilities location etc. The water acres for the Basin and channel are mostly controlled by the city although part of the basin in obtained by excavating part of the exsisting yard pad and making water acres out of it. The City has stated in principal by letter her willingness to negotiate favorable lease terms for the tidelands, tax concessions, access to city rock quarry etc. The Earliest opportunity to negotiate a long term lease with the City for tidelands used by the project should be taken. It is anticipated that a token sum will be agreed upon for a long term lease of tidelands due to lack of cost basis for the city on tidelands and favorable return in revenue to the city from project. It is assumed that a package of concessions from the city will be negotiated as a group for best results. 4.3.3 Permits Provide the following informationas it may relate to permitting and how you intend to address outstanding permit issues.  List of applicable permits  Anticipated permitting timeline  Identify and discussion of potential barriers Current Maintenance dredging permit for harbor basin and channel in place and valid till 2017 All other permits to be handled by project managers and permitting personell upon commision Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 11 of 16 9/3/2008 4.3.4 Environmental Address whether the following environmental and land use issues apply, and if so how they will be addressed:  Threatened or Endangered species  Habitat issues  Wetlands and other protected areas  Archaeological and historical resources  Land development constraints  Telecommunications interference  Aviation considerations  Visual, aesthetics impacts  Identify and discuss other potential barriers Per Engineers 4.4 Proposed New System Costs (Total Estimated Costs and proposed Revenues) The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project. Applicants must reference the source of their cost data. For example: Applicants Records or Analysis, Industry Standards, Consultant or Manufacturer’s estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following:  Total anticipated project cost, and cost for this phase  Requested grant funding  Applicant matching funds – loans, capital contributions, in-kind  Identification of other funding sources  Projected capital cost of proposed renewable energy system  Projected development cost of proposed renewable energy system Total anticipated project costs/ including Renewable Energy systems and inflation proofing $ 140,299,650. Requested Grant funding $14,673,250. Applicant matching funds – Capital contribution - 1,467,325 shares Mt. Alice Development Inc. common stock Other funding sources to be solicited from a majority partner thru the sale of common stock - Future Grant Applications (2010 REF Grant App.) AIDEA Loan app. 2010 and 2011 if needed Projected capital costs of Proposed Renewable energy system is estimated to be $ 20,000,000. Projected development cost of proposed renewable energy systems is estimated to be: $2,000,000. to $4,000,000. 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be f unded by the applicant.  Total anticipated project cost for this phase Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 12 of 16 9/3/2008  Requested grant funding Per Engineers and financial analysis 2010 Grant app. $14,673,250. 09 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following:  Identification of potential power buyer(s)/customer(s)  Potential power purchase/sales price - at a minimum indicate a price range  Proposed rate of return from grant-funded project The approx. 100 personel and seasonal residences, 100 plus vessel berths, 20 businesses and the anticipated coast guard station will make up the majority natural customers for power purchases, also overflow above and beyond what the project uses may be back sold the the Seward Electrical Utility Per Engineers and financial anylsis, anticipate a power sales rate of up to 20% less than standard City Utility rates Proposed rate of return from Grant Funded project is estimated at 8% 4.4.4 Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Download the form, complete it, and submit it as an attachment. Document any conditions or sources your numbers are based on here. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 13 of 16 9/3/2008 4.4.5 Business Plan Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum proposed business structure(s) and concepts that may be considered. As we are proposing a new outlook on Renewable Energy, perhaps a new outlook on ownership and social responsibility is due as well. While the traditional Development financial model of Corporation Ownership is predicated and would work well with this model, What if we tweek the Ownership in such a way that most of the stock is locally held either by donation or negotiated sale or purchase of stock. A community betterment project that is invested in and owned by many owners locally held. Leading the curve for Renewable Energy generation as a power producing entity which financial and physical model , not to mention technological innovations can be adapted in many other places and situation, A public facility and residential neighborhoods as a green community, locally owned and operated. Sustainability is strengthened with total local involvement, commitment and ownership, insured with Renewable Energy Fund Grant participation. Complete Project buildout - Green Renewable Energy Community delivered O & M at a minimum maintenance staff would include 3 harbor employee,s 4 technicians to operate and maintain Renewable Energy Systems including gray water and black water systems - 2 additional employees would be appropriate on the scientific level, to communicate findings and recommendations, dispense public information on the Success or adaption of our Renewable Energy Systems. It is assumed that as a management entity ot the finished community The Point Lodge facility will be managed by contract and will be self sustaining & profitable and All Vessel berths short or long term leases (recommend sale of long term slip leases as market dictates for quickest recoupment of investment capital) Harbor bussines storefront leases may all be handled by agency or in house including the marketing and sale of residences in the 3 residential zones Perhaps Stock Ownership in Mt. Alice Development Inc. should accrue to all purchasers of Mt alice development Real Estate wether from the 3 residential zones or purchase of a 20 year lease on a boat slip - Once the Project is established the 20 year boat slip leases should become financiable and transferable Field Note: New Zealand is doing common ownership of neighborhood in some instances simialer to corporate ownership model. 4.4.6 Analysis and Recommendations Provide information about the economic analysis and the proposed project. Discuss your recommendation for additional project development work. This Project is economically feasible under traditiona development model, even though Harbor ownership in Alaska has traditionally been Federal, State or Municipal. Whittier has done it and Seward is in the unique position of being a peak demand point for boating and an international Tourist Hub and Finally this unique piece of property has the added bonus of being one of the most beautiful in Alaska. Of primary importance is the permitting and zoneing as a whole so that a holdup in the process does not derail the whole project The atmosphere for the project is very good, no negative feedback so far – lets keep it that way with pro-active community and government relations, all problems on the table and Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 14 of 16 9/3/2008 find a common solution. SECTION 5– PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following:  Potential annual fuel displacement (gal and $) over the lifetime of the evaluated renewable energy project  Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or avoided cost of ownership)  Potential additional annual incentives (i.e. tax credits)  Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available)  Discuss the non-economic public benefits to Alaskans over the lifetime of the project Financial benefit per profomas/prospectus Non-economic public benefits to Alaskans over the life of the project. Walking paths, trail easements, public access and parking to fish resources adjacent and in Ressurection Bay, Recreational facilities (launch ramp etc) public services and eateries, Fresh Fish Market, A Green, low impact, Sustainable community (Harbor slip leases 20 years- every 20 years harbor gets a major rebuild and major infrastructure maintenance overhaul: Financial sustainability) Our major benefit to Alaska and the world may be the Renewabl Energy Technology Testing we achieve and implement to pass on our ideas and experiences! SECTION 6 – GRANT BUDGET Tell us how much your total project costs. Include any investments to date and funding sources, how much is requested in grant funds, and additional investments you will make as an applicant. Include an estimate of budget costs by tasks using the form - GrantBudget.xls Provide a narrative summary regarding funding sources and your financial commitment to the project. This project has been in the works for 30 years plus (see history file) In 2008 Tim McDonald, president and founder of the Mt. Alice Dev. Inc has spent approx. $20,000. in personal funds and incurred approx. $60,000. in obligations to his associates and Architects in 2008, Tim McDonald does have an ownership interest of approx. 17% of the single Alaskan Barge and Salvage Parcel (to be surveyed into two parcels – Hill & Harbor – upon purchase) at current the project is unfunded due to a lack of corporate sponsor. It is anticipated that with REF Grants it will still take a minimum of 6 months to find and negotiate an acceptable financial sponser. Total Project Build “Finished” with Renewable Energy Systems and Inflation proofing is expected to be $140,000,000. Of course the project will be phased over 4 to 5 years and return cash flow should start in two years minimum (marketing and pre-build sale on residences and slip leases, Finishing the Coast Guard Station would be top priority and should include matching Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 15 of 16 9/3/2008 construction funds – federal. Most likely C.G. station will be built with an inset in the hook of the south Harbor breakwater arm. Due to the relative size of the project it should present good opportunities to solicit additional sourcec of funds (I.e. additional energy grants, Green Development etc.) As President and shareholder, I commit to the goals of sustainagle Renewable Energy, clean air, water and land and local control of local resources. As a vested shareholder I have a financial and professional stake in this project and will use that power to stay on track to our community goals Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 16 of 16 9/3/2008 SECTION 7 – ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. Resumes of Applicant’s Project Manager, key staff, partners, consultants, and suppliers per application form Section 3.1 and 3.4 B. Cost Worksheet per application form Section 4.4.4 C. Grant Budget Form per application form Section 6. D. An electronic version of the entire application per RFA Section 1.6 E. Governing Body Resolution per RFA Section 1.4 Enclose a copy of the resolution or other formal action taken by the applicant’s governing body or management that: - authorizes this application for project funding at the match amounts indicated in the application - authorizes the individual named as point of contact to represent the applicant for purposes of this application - states the applicant is in compliance with all federal state, and local, laws including existing credit and federal tax obligations. F. CERTIFICATION The undersigned certifies that this application for a renewable energy grant is truthful and correct, and that the applicant is in compliance with, and will continue to comply with, all federal and state laws including existing credit and federal tax obligations. Print Name Timothy L. McDonald Signature Title Mt. Alice Development Inc. President Date Oct. 7th, 2008