Browsing the archives for the Capital Projects tag.

Where are the Leaders?

South March Highlands

Shame

South March Highlands – Carp River Conservation Inc. (SMHCRC) – the formal entity that is otherwise known as the Coalition to Protect the South March Highlands has done what no federal, provincial, or municipal politician has managed to do – propose a fair and concrete plan for an alternative outcome.

One might think that the politicians might now rush in with great relief to join the Public-Public Partnership that the SMHCRC is proposing.  They all recognize privately that the situation is a mess because of bad planning decisions in the past; decisions made in ignorance of the significance of the area.  They all admit that these decisions would not be made today and no one wants to try to change past to solve the problem. 

Fortunately they don’t have to.  The SMHCRC’s proposal deals with the current reality and does not try to change the mistakes of the past.  It’s an agenda for moving forward, not backward, and towards an alternative development outcome that preserves and leverages the value of green infrastructure.

But yet our elected politicians feel no accountability or responsibility and appear to be devoid of moral imperative.  

Under Ottawa’s Official Plan, the city is responsible for acquiring land as important as the South March Highlands whenever the opportunity arises.  Yet there are no funds allocated for that purpose.  Shame.

In 2010, the City spent $5 B on capital projects.  This includes $1.7 B for road infrastructure and $ 183M for economic development projects.  Only $179 M of capital spending in the $1.7 B is offset by the federal Infrastructure Stimulus fund (which in combination with the province funds 2/3 of that total). 

Yet there are zero dollars available for acquiring green infrastructure and few of our politicians see the need for allocating any!  Shame.

Meanwhile the provincial politicians stand by while environmental standards are ignored and precious cultural heritage is destroyed.  Shame.

Federal politicians such as Gordon O’Connor, who managed to extend spending on $48 Billion of black infrastructure funding, cannot see how the $20 M SMHCRC proposal for green infrastructure qualifies for funding – even though it will meet the objective of the funding program by creating jobs and improving air and water quality. 

Evidently you have to pour concrete to qualify for green infrastructure funding. Shame.

Public Service?

Tim Marc, a city lawyer, represented the public at the OMB meeting organized by Urbandale on Nov 23.  This is the same Tim Marc who told Community Association Presidents and the SMHCRC in July that “The trees are coming down – no matter what”. 

Is it surprising that the result of the meeting was that OMB told Urbandale they cut down trees equal to 2 years supply of housing inventory?  One can only guess how vigorously Mr. Marc represented the public interest at that meeting. 

It is worth observing that the city’s legal department has had a very close relationship with developers over the years.  Not surprising since they work with developers on a daily basis – on both sides of the legal table. 

What is surprising is that the former city lawyer for the Regional Municipality of Ottawa Carleton now works for a developer, presumably to supplement his meagre city pension.  What does this say about the lack of conditions for accepting a public pension?  Why should we hold Cesaers wife to a higher standard of ethics than our public servants?

City staff originally estimated that fair market value of unserviced developable land inside the urban boundary is $210 K / acre which would put the acquisition of the Beaver Pond Forest at approximately $13 M.  Subsequently staff hired a consultant to arrive at a 3rd party valuation based on similar recent transactions.  That valuation is not far off of the staff estimate.

Yet staff are inexplicably refusing to release the 3rd party market evaluation they contracted for in October – not even to city council.  It is difficult to see this behaviour as consistent with public service.  Perhaps like the City police, they appear to have forgotten that they work for the public.

Win-Lose

Why does Urbandale appear to lack any moral responsibility for not developing the most ecologically sensitive lands in Ottawa?  A charitable view might be that they were unaware of the significance of the area when they purchased it.  This establishes a case for paying them fair market value for leaving it undisturbed.  However, Urbandale’s recent behaviour raises questions in the minds of some about their sincerity as a responsible developer.

According to Marianne Wilkinson, Urbandale recently decided to unilaterally reduce the 12 acre swap to 10 acres and to also dictate which 10 acres would be preserved in such a manner as to optimize their subdivision north of the Beaver Pond.  Then Urbandale pulled the land swap off of the table so that they can be paid more during an expropriation.

Many responsible businesses would attempt to reach a win-win situation in a situation like this.  Does Urbandale believe that win-lose deals with the community are best for maintaining a healthy public image?

Worse, Urbandale appears to have no interest in negotiating in good faith on selling the land to the City/Community and are now alledgedly asking for $40 M in compensation – a price increase that includes being paid for 40% land that they paid nothing for because they cannot develop it.   Is this more evidence of a win-lose mindset at Urbandale?

This is the same developer who is paying property taxes on a $6 M appraisal (which is presumably close to what they bought the land for in Sept 2000).  Do they see no shame in this? 

Meanwhile the public and other buisnesses are expected to pay urban property taxes at close to fair market value.  The city could easily find the funds for acquiring natural heritage land if developers paid their fair share of taxes!

Urbandale has also hired a lobbyist who has met with most city councillors, except Marianne Wilkinson, to ensure that they understand the developer’s position.  Some of the new councillors, even experienced ones such as Peter Clark, have declined to meet with representatives of the SMHCRC as a result.  So much for the city’s public participation policy. 

It does not appear that Jim Watson’s administration is off to the fresh start that everyone who voted for him hoped for.  Developers evidently still think that they run City Hall and that the public purse exists for their benefit.

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Forget GM, Save Dokie

Canadian Politics, Climate Change

Credit Threat

The global financial crisis has forced Canada’s largest wind energy project in northeast B.C. to seek court protection, in order to hold off creditors who are looking to recover $131 million in debt.   Despite the fact that the Dokie wind energy project has a high credit rating (S&P: AA+, Moody’s: Aaa, DBRS: AA(high)), the project ran into trouble when its developer, EarthFirst Canada Inc. announced recently that it needed creditor protection.

The company’s press release stated that “EarthFirst’s efforts to pursue strategic alternatives has been severely hindered by the unprecedented crisis in the global financial markets which has impacted on EarthFirst’s ability to raise financing or to complete a sale of the company”.

EarthFirst Canada is important because its alternative energy projects represent 25% of Canada’s pipeline of new wind energy projects through 2015.  If EarthFirst is allowed to fail, Canada’s ability to generate new jobs by meeting Kyoto targets will be seriously at risk.

In fact, the collateral damage caused by the global financial crisis has put all major capital projects at risk. Since every single new alternative energy project is a major capital project that requires significant lending, many of these important projects, like Dokie, are now at risk.

Rather than suspending Parliament, our country would be better served by immediate government action to provide federal loan guarantees for these alternative energy projects!

About Dokie

Dokie Ridge is located on the Rocky Mountain foothills of the Peace River region  near the mountain spine that runs the length of North America. It’s location is one of the top-ranked wind resources in Canada.  The Dokie Project is located approximately 150 kilometres southwest of Fort St. John and is adjacent to the existing 500 kV and 230 kV transmission lines which originate at the Bennett Dam.

Where is Dokie Ridge?

The Dokie Wind Energy project is already under construction on Dokie Ridge after winning a 20-year power purchase agreement with BC Hydro in 2006. The project has obtained an Environmental Assessment Certificate, completed its engineering design, as well as First Nations and community review. The Dokie Project is structured in 2 phases: Dokie I will produce 144 MW followed by Dokie Expansion which will generate a further 156 MW for a total of 300 MW of green power.

By comparison, the next largest project in Canada is the 100 MW Anse-a-Valleau project in Quebec.  All the wind energy projects in Alberta currently total only 524 MW, Ontario’s total only 491 MW. 

The Dokie Project significantly adds to Canada’s wind energy output as it would be 30% of the total of Alberta and Ontario combined!

Global Comparisons

Europe was the first to embrace wind energy and now dominates the wind energy industry globally, with over 48,545 MWs or 65% of total global installed windpower capacity in 2006 according to Global Wind Energy Council.  Within Europe, Germany and Spain have been the largest producers.

Germany had 20,622 MW of installed windpower capacity at the end of 2006, which accounted for approximately 6% of that country’s total power consumption.

Spain had 11,615MW installed windpower capacity at the end of 2006, which accounted for approximately 9% of its total power consumption.

North America accounted for 13,062 MWs in 2006 which represents less than 1% of total power consumption.  The USA expanded its wind energy production by 45% in 2007 and currently produces 16,818 MW of power from wind.

GWEC reports that Canada has 1,846 MW of wind energy production in 2007.  As shown below Canadian provincial electrical utilities are currently seeking to commission 10,000 MW installed windpower capacity by 2015. 

Planned Wind Energy In Canada

EarthFirst Canada represents 2,500 MW or 25% of this total and Dokie is it’s leading project.  Dokie alone would add 16% to Canada’s current wind energy generation capacity.

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