"Six Nations could be partner in largest wind project in Ontario"

By Donna Duric, Writer

Six Nations could become a partner in the largest wind project in Ontario if it agrees to the $1 billion Niagara Regional Wind project.

At a sparsely attended community consultation meeting at Six Nations Tourism last Thursday, Six Nations Economic Development Corporation staff said Six Nations could earn no less than $30 million over 20 years and own 50 per cent of the project if the community agrees.

The project, located in part of the Haldimand Tract and the Township of West Lincoln, Town of Lincoln, Wainfleet and Haldimand County, will consist of 77 turbines and construction is expected to start soon.

It will generate 230MW of energy which will be sold to the Ontario Power Authority under the FIT (feed-in-tariff) program that gives provincial dollars to partners in renewable energy projects.

The project will be owned and operated by Daniels Power, Enercon Canada Inc., Boralex Inc., and possibly Six Nations. The Six Nations of the Grand River Development Corporation is contemplating a 50 per cent equity ownership.

Six Nations began meeting with Niagara Regional Wind Corporation in 2011.

All permits for the project have been granted and archaeological assessments are expected to be complete by next month, with commercial operation expected in August 2016.

Six Nations archaeology monitors are on-site, from both elected council and the Haudenosaunee Confederacy Chiefs Council and the Mississaugas of New Credit.

Twelve of 36 archaeological digs have completed stage three archaeological assessments. Of those 12 sites, eight are moving into a stage four archaeological assessment.

Under Ontario Ministry of Culture, Tourism and Sport guidelines, archaeologists enter stage four when "significant" archaeological finds have been discovered.

Conserving archaeological sites that have cultural heritage value or interest does not mean stopping development, according to the ministry.

Conservation can involve putting long-term protection measures in place around an archaeological site to protect it. The site is then avoided while development proceeds around it. This is called protection 'in situ.'

The ministry stipulates that if protection is not viable, mitigation can involve documenting and removing an archaeological site, through excavation, before development takes place.

Adam Rosso, an engineer and manager of business development with Boralex, said aboriginal pottery pieces have been discovered, but so far, there has been no evidence of an aboriginal village located in the project area.

Boralex and Enercon are providing Six Nations with 100 per cent equity financing.

Six Nations is not required to provide guarantees for equity financing and has the option to substitute equity financing with alternative financing (a bank or other lending institution).

Boralex and Enercon are also providing capacity funding to complete community engagement with Six Nations.

Aside from the 50 per cent equity ownership for Six Nations that will generate no less than $30 million in net cash flow for the community, other benefits include:

• $20,000 per year to Grand River Post Secondary Education.
• A6N (a newly-formed band owned consultation firm) will bid on subcontracting work.

The project will also allow future generations to continue to own 50 per cent of the project long after the 20-year deal with Boralex and Enercon has expired.

Matt Jamieson, president of Six Nations of the Grand River Development Corporation, said the 6.14 per cent interest financing on the project is

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"pretty attractive."

He also said the creation of carbon-free energy through renewable energy is superior to coal or nuclear power generation.

"They have a much greater negative impact on our environment," said Jamieson.

Rosso said environmental assessments have concluded there will be a minimal impact to the environment.

"It's minimized because 98 per cent of the project is on agricultural fields," he said.

The actual turbines will take up an acre and a half of land. Project studies on migratory birds have concluded, "there isn't a whole lot of impact to specific birds or their foraging area," said Rosso.

Jamieson said Six Nations won't have to pay any taxes on the project revenue, which will be managed by the recently-formed Six Nations of the Grand River Development Corporation (band council is the sole shareholder of the corporation).

Jamieson said the corporation made an agreement with Canada Revenue Agency to be unencumbered by taxes on any of its revenues.

Calling it an "advance tax ruling", Jamieson said, "It's a letter from the CRA saying, 'provided you operate your business like it's set up today, we will not charge you corporate tax at any time in the future.' It's a means for us to fend off the risk in the future of them saying, 'hey you owe us taxes.' We spent a lot of time investigating ways this could be done.

"We are not the only First Nation in Canada to develop a corporation," said Jamieson. "In fact, we're one of the last." He said they are still awaiting CRA approval and said Six Nations' new development corporation model has made it a little more complicated for the CRA.

Most First Nations have a single corporate board, but the Six Nations band council model will have three boards, "it makes it a little more complicated but we are sure it will get approved," he said.

The corporation boards include an economic development advisory committee, a board of directors for the development corporation and a board of trustees overseeing the economic development trust.

Jamieson said a public meeting to explain the model will be held soon.

At the peak of project construction, more than 700 people will be employed.

"It's providing good, clean electricity," said Jamieson.

The development corporation will take its recommendation to band council on whether or not to move forward with the project. If band council gives the corporation the green light, it will sign a definitive agreement with project partners.

The Haudenosaunee Confederacy Chiefs Council is also involved in negotiations with the same developers. That agreement, among other items, is awaiting HCCC approval. The HCCC business has been stalled for two months.

If approved by the HCCC the agreement could see as much as $6.9 million flow to the HCCC over 20 years.

Haudenosaunee Development Institute (HDI) director Hazel Hill said the agreement will bring over $6 million.

The HCCC has created two separate funds to accept monies flowing from development projects. It has created a land lease fund and land acquisition fund that allows for the purchasing of more land. Both accounts are managed by GRETI.

If approved by the HCCC, a public meeting on the Niagara project and others will be held. "We are waiting for HCCC approval first." said Hill.