Taxpayer Alert New Bedford Wind Turbine Port

Massachusetts taxpayers must be made aware of the financial fiasco and major missteps being taken at the New Bedford ocean wind turbine terminal.

The former Governor Patrick administration and Massachusetts Clean Energy Center have wasted 124 million on the ocean port and the spending isn’t over.

The port was leased before the final costs are known.

The MassCEC refuses to comment on the lease, completion date and the final costs -

The taxpayers never voted for this fiasco.

New Bedford Marine Commerce Terminal Finances

Taxpayers Take Notice :

Folks this is just like buying a car or a truck. The figures are much higher but for now let’s put that in perspective.

The New Bedford Marine Commerce Terminal ( ocean wind turbine port) is being funded from 92 million dollar Seaport Advisory bonding and 24 million from environmental and energy capital spending. In addition the owner of the terminal the Massachusetts Clean Energy Center has used 8 million dollars of renewable energy tax funds collected through our electric bills. All taxpayer funds.

The cost so far is 124 million dollars. There is much more work ahead in what is being called “phase two.”

The New Bedford Marine Commerce Terminal is sitting incomplete at 124 million going into phase two.

Phase two includes moving an AM radio station off 4 acres of the property to a new location in New Bedford, purchase of heavy duty ocean port cranes and extending the rail road link almost a half mile to the ocean port. The US Army Corps of Engineers will not certify the inner harbor dredging until March of this year.

These costs have not yet been included in the final bill and undoubtedly tens of millions more will need to be borrowed to finish the project. A project Governor Patrick said would cost 35 million in 2010.

Lets look at the principal and interest on just the basic 100 million dollar forty year bond to the state of Massachusetts at a good rate of 2 percent. Keep in mind this is just like buying a car or a truck but using larger figures.

Number 1 ---The interest on a 100 million dollar bond is around 2 million per year or around $ 187,500.00 per month

Number 2----Paying back the principal over 40 years is a little over 2 1/2 million per year. or around $250,000.00 per month

# The estimates for paying back the 100 million dollar loan are on the low side for the sake of disagreements.

The Massachusetts Clean Energy Center will not comment any further on the final cost of the terminal or the lease agreement with Cape Wind.

You the taxpayers of Massachusetts are into this port right now for 124 million you own it. The Massachusetts Clean Energy Center is called the owner but it was all financed with your money.

Here is the rub:

The Massachusetts Clean Energy Center leased the incomplete New Bedford Marine Commerce Terminal to Cape Wind back in September for $187,500.00 per month which is a little over 2 million a year which just happens to equate to the interest only on the 100 million dollar bond.

The Massachusetts taxpayers will now be paying back the principal on the loan at $250,000.00 per month or 2 1/2 million a year for 40 years.

What kind of a lease agreement is this ? When do the taxpayers wake up ?

On top of all this the ocean port is going to have to borrow tens of millions to complete the port and just like your car or truck its going to need millions in maintenance.

How has the Massachusetts Clean Energy Center justified leasing the port for less than half the current 124 million costs knowing the project is incomplete going into “Phase two “ needing to borrow more money ?

Massachusetts taxpayers should be demanding answers .... Here is the lease information :

REQUEST FOR PROPOSALS Posting Date: December 22, 2014 TERMINAL OPERATOR – MARINE COMMERCE TERMINAL in NEW BEDFORD

Page 2
“Respondents to this RFP should be aware that MassCEC has previously entered into an agreement with Cape Wind Associates, LLC (“Cape Wind”) through which Cape Wind leases the Terminal from MassCEC (the “Cape Wind Lease”). Pursuant to this agreement, Cape Wind assumes all responsibility for operating and managing the Terminal and has exclusive use of the Terminal for the construction, assembly, and deployment of a wind energy facility in Nantucket Sound (the “Cape Wind Project”) for a two year period beginning in 2015, with options to extend for up to two additional years”

Page 6

“Cape Wind to pay MassCEC monthly rent of $187,500. MassCEC intends to transfer the Cape Wind Lease to the selected Terminal Operator whereby the Terminal Operator would assume MassCEC’s obligations thereunder. The selected Terminal Operator and Cape Wind may agree to modify their respective roles and responsibilities. MassCEC appreciates that any such modifications may have financial implications.”
http://images.masscec.com/uploads/programdocs/%3Cem%3EEdit%20Offerings%3C/em%3E%20Terminal%20Operator%20for%20the%20Marine%20Commerce%20Terminal%20in%20New%20Bedford%20Request%20for%20Proposals/Terminal%20Operator%20Request%20for%20Proposals.pdf