Falmouth 5 Million ARRA Wind Turbine "Loan" Can Not Be Forgiven

MEETING OF THE MASSACHUSETTS
CLEAN WATER TRUST
BOARD OF TRUSTEES
June 21, 2017
1:30 PM
State House
Room 227
Boston, Massachusetts
MINUTES

Attendees: Treasurer Deborah Goldberg
Commissioner Martin Suuberg, Department of Environmental Protection
Rachel Madden, Designee of the Secretary of Administration and Finance
Also Present: James MacDonald, First Deputy Treasurer
Susan Perez, Executive Director, MCWT
Steve McCurdy, Director of Municipal Services of MassDEP
Nate Keenan, Deputy Director, MCWT
Bernard Greene, Senior Legal Counsel, MCWT
Sally Peacock, Controller, MCWT
My Tran, Treasurer, MCWT
Lilly Anderson, Intern, Administration and Finance

CALL TO ORDER: The meeting was called to order by Treasurer Goldberg at 1:35 p.m.

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Ms. Perez reported to the Board on the situation in Falmouth. The Barnstable
Superior Court handed down a decision that stopped the operation of both Wind I
and Wind II. The Trust notified the Town in April of 2013 that if the Trust financed
Wind II turbine ceased operating as an energy efficient project the Town would not
be given principal forgiveness on the $4,865,000 original principal amount of its
loan. The Board discussed options for assisting the Town following this court
decision: (1) begin paying back the loan at 2% pursuant to the original Schedule C;
(2) begin paying back the loan at 2%, but with a credit for the years that Wind II did
operate as an energy efficient project; (3) make the loan a zero-percent loan, also
with a credit for the seven years that Wind II did operate and re-amortize the loan to
reduce debt service per payment period; and (4) forgive the loan.

The Board agreed that the loan cannot be forgiven.

Ms. Perez will communicate to the Town the Board’s willingness to offer assistance.

https://www.mass.gov/files/documents/2017/10/12/06212017-board-meeting-minutes.pdf