Red Barn Wind Financialsummary

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A financial summary for the Development of the Red Barn Wind Project.

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Red Barn Wind Financialsummary

  1. 1. FINANCIAL PROPOSAL RED BARN WIND PROJECT 19997 Y City Rd, Gentry, AR 72734
  2. 2. Winds of Change Leaseholding, LLC ha 9/2009 1. Summary: land in Northwest Arkansas for the purpose of developing a using 8 – 2.5MW Nordex N90 wind turbines. Winds of Cha LLC is developing the site for an Operations Partner to purch wind farm in accordance with a contract agreement. 10/2009 2. Business Concept: The business concept is to de where it is most abundant in Arkansas in partnership with the By choosing the 20MW size for a project we are able to redu and still have the necessary economies of scale which make l 11/2009 more profitable. With the landowners having ownership in t to gain much more social acceptance and ease in regulation. 3. Summary of Lease: The wind energy lease agre 12/2009 and automatically renewed for a subsequent 20 year period. landowners of the Red Barn Wind Project is based off of a m agreement from New York. The lease was modified to inclu lease applicable to meet landowners needs which included se CHARTS APPENDIX C: MAPS APPENDIX B: PROJECT ASSUMPTIONS PROPOSAL FOR FINANCE APPENDIX A: PROJECT SUMMARY RED BARN WIND PRO FORMA CONTENTS project has already accomplished. The final milestone is the Date which must occur before April 2013. 1/2010 The Commencement date is determined as the official start o Phase of the project where construction begins, all landowne 2/2010 Acre. The Annual Lease Payments are equal to $50/acre + $2,500 MWh(estimated between $8000 and $8500) produced by tur payment is distributed to those within a designated radius of 3/2010 4. Description of Leased land: Some of the l 1 is being leased from 9 signatories representing 560 acres of rural Benton County, Arkansas. It is between the towns of D AR. The Wildlife Wilderness Drive Thru Safari is to the we to the East. The land leased is in a rectangular shape giving row of wind turbines. The current land use is for pasture lan 4/2010 and to raise chickens. The neighboring sites adjacent to the
  3. 3. Turbine Model Nordex N90 2.5MW Net Capacity Factor (Years 1-20) 34% Total kWh Produced (Years 1-20) 1,188,325,502 PPA $0.0540 C-BED PPA (NPV) $0.0000 1 Green Tag Rate $0.0000 WINDS OF CHANGE LEASEHOLDING LLC has leased 560 acres of land in North West Arkansas for the purpose of devel- PROPOSAL FOR FINANCE openingTotal Installed Cost using (8) 2.5MW Nordex N90 wind turbines. Winds of Change Leaseholding, LLC is developing the site for a 20 MW wind farm $38,720,000 an Operations Partner to purchase and operate the wind farm in accordance with a contract agreement. 2 Local Investor Contribution $182,000 The BUSINESS CONCEPT is to develop wind energy where it is most abundant in Arkansas in partnership with the local Local Investor IRR 45% $501,133 Local Investor Return (NPV) project allows us to reduce many costs while producing results that make large wind farms community. The smaller size of this profitable. With the landowners and community having ownership, the social acceptance and regulation is well received. Equity Investor Contribution $26,000,000 3 Equity Investor IRR 19% The WIND ENERGY LEASE is a 25 year$6,604,547 which automatically renews for a subsequent 20 year period. The lease Equity Investor Return (NPV) agreement signed by landowners of the Red Barn Wind Project is similar to a model wind lease in New York. Some of our modifications include expirations onRate leaserevenues) to meet landowner’s needs which included several milestones, of which most are completed. The O & M the (% of applicable 9.3% final milestone Cost per kW Capital is the Commencement Date, which must occur beofre April 2013. $1,936 The final commencement date is determined as the official start of the Operations Phase of the project. When construction begins all IRR (Years 1-20) 22% landownersPresent Value per acre. Net recieve $75 (Years 1-20) $13,538,953 The Annual Lease Payments are equal to $50/acre + $2,500 per Turbine + $1 per MWh (estimated between $8,000 and $8,500) produced by turbine on property. This payment is distributed to those within a designated radius from the wind turbine. 4 The LEASED LAND has 9 signatories representing 560 acres of land. The land is in rural Benton County, Arkansas (refer to Appendix C) between Decatur and Gentry, AR. The Wildlife Wilderness Drive Thru Safari is to the West and Highway 59 is to the East. The land leased is in a rectangular shape giving way for an East/West row of wind turbines. The current land use is for pasture land to graze livestock and raise chickens. The sites adjacent to the wind turbine sites have been leased in most, but not all instances to further involve the community. 5 The WIND DATA was gathered from 8 different sites and averaged. Refer to Appendix C for Map Images. WIND SPEED AVG. MPH SITE M/S @ 100M 1 7.66 17.1584 2 7.5 16.8 3 7.6 17.024 4 7.65 17.136 5 7.6 17.024 6 7.6 17.024 7 7.47 16.7328 8 7.62 17.0688 AVG. 7.63625 17.1052 2105 1st Ave S, Minneapolis, MN 55404 Toll Free: 1-800-946-3640 Phone: 612-870-3461 Fax: 612-813-5612 info@windustry.org www.windustry.org 1
  4. 4. Turbine Model Nordex N90 2.5MW Net Capacity Factor (Years 1-20) 34% Total kWh Produced (Years 1-20) 1,188,325,502 PPA $0.0540 C-BED PPA (NPV) $0.0000 6 Green Tag Rate $0.0000 The DEVELOPMENT as of July 2010 has accomplished many of its primary beginning goals and many processes will be ongoing. PROPOSAL FOR FINANCE The long-term leases Cost Total Installed on proposed facility land$38,720,000 were signed in February 2009. Notice of funding was recieved September 2009 for a grant of $41,000 to be received after 75% of project funding is secured. One year wind measurement on site started August 2009. Transmission Investor Contribution Local study started May 2010, (60days)(30days)(30 days). Preliminary construction cost estimates May 2010. $182,000 7 Local Investor IRR 45% Local Investor Return (NPV) Winds of Change Leaseholding, LLC is a MANAGER $501,133 MANAGED Limied Liability Company divided into three classes: Landowner, Investor, and Management. Long term decisions are discussed with all members and each class appoints one member to $26,000,000 be a representative of Contribution vote for their class regarding long term decisions. Equity Investor that class to Equity Investor IRR 19% The daily operations and decisions Equity Investor Return (NPV) are the responsibility of the Manager, Mr. Nathan Wilson. A graduate of the University of Central $6,604,547 Arkansas with a Bachelor’s of Business Marketing and a Master’s of Business Administration; Mr. Wilson began networking with wind professionals at the American Wind Energy Association (AWEA) conference in 2007 and is now an Advocate Member. O & M Rate (% of revenues) 9.3% Capital Cost per kW $1,936 Nathan continued with Wind Site Assessment Training in St. Paul, Minnesota with a noted wind professional, Mick Sagrillo. Having performed site assessments in other regions of America, Mr. Wilson assessed in 2007 that the now named Red Barn Wind Project site IRR (Years 1-20) 22% could produce windValue (Years a large scale development. Net Present energy for 1-20) $13,538,953 Management compensation has been set at $1000/month through the development phase to cover the expense of an office and living costs. 8 STATEMENT of ASSETS & LIABILITIES : Assets Liabilites 560 Acres Leased Outstanding Legal Fees - $3,000 Public Support Triton SODAR Wind Data (August 2009 - Current) Triton SODAR Deposit - $5,832 Transmission Study Deposit - $5,000 - $20,000 (estimated cost of feasibility study) USDA REAP Grant - $40,000 (25% of project costs) Securities Offering Exemption from Registration 2105 1st Ave S, Minneapolis, MN 55404 Toll Free: 1-800-946-3640 Phone: 612-870-3461 Fax: 612-813-5612 info@windustry.org www.windustry.org 2
  5. 5. Turbine Model Nordex N90 2.5MW Net Capacity Factor (Years 1-20) 34% Total kWh Produced (Years 1-20) 1,188,325,502 PPA $0.0540 C-BED PPA (NPV) $0.0000 9 Green Tag Rate $0.0000 TOTAL DEVELOPMENT COSTS PROPOSAL FOR FINANCE Total Installed Cost $38,720,000 WIND STUDY $70,000 Local Investor Contribution $182,000 TRANSMISSION STUDY Local Investor IRR 45% $45,000 ENVIRONMENTAL(NPV) Local Investor Return STUDY $501,133 $30,000 PRE CONSTRUCTION Equity Investor Contribution $26,000,000 $6,000 LEGAL EXPENSES Equity Investor IRR 19% $14,000 ACCOUNTING EXPENSES Equity Investor Return (NPV) $6,604,547 $1,000 OVERHEAD EXPENSES O & M Rate (% of revenues) 9.3% $17,000 Capital Cost per kW $1,936 $182,000 TOTAL 10 IRR (Years 1-20) 22% STATEMENT OF FINANCIAL NEEDS: An additional $34,000 of funds needed to recieve the USDA REAP Grant award of Net Present Value (Years 1-20) $13,538,953 $41,000. With this additional $75,000 we will be able to fully develop the project by completing the wind study, two more transmission studies, environmental studies, legal expenses, accounting, and overhead. 2105 1st Ave S, Minneapolis, MN 55404 Toll Free: 1-800-946-3640 Phone: 612-870-3461 Fax: 612-813-5612 info@windustry.org www.windustry.org 3
  6. 6. Turbine Model Nordex N90 2.5MW PROJECT SUMMARY Net Capacity Factor (Years 1-20) 34% Total kWh Produced (Years 1-20) 1,188,325,502 PPA $0.0540 C-BED PPA (NPV) $0.0000 Green Tag Rate $0.0000 Total Installed Cost LLC .95% Development, $38,720,000 Project Summary (Landowners and Developer non revenue recieving) $182,000 Local Investor Contribution APPENDIX A Local Investor IRR Investors .05% Development 45% a tions, LLC oper Local Investor Return (NPV) $501,133 Project Name Red Barn Wind 99% Equity Investor Contribution $26,000,000 Project Size (MW) 20 Equity Investor IRR 19% Turbine Model Nordex N90 2.5MW operation PRE-FLIP Equity Investor Return (NPV) $6,604,547 Net Capacity Factor (Years 1-20) 34% ownership O & M Rate (% of revenues)1% 9.3% Total kWh Produced (Years 1-20) PPA 1,188,325,502 $0.0540 Capital Cost per kW $1,936 approximately C-BED PPA (NPV) $0.0000 IRR (Years10yrs 1-20) 22% Green Tag Rate $0.0000 OWNERSHIP Net Present Value (Years 1-20) $13,538,953 Total Installed Cost $38,720,000 Local Investor Contribution $182,000 Local Investor IRR 45% Local Investor Return (NPV) $501,133 Equity Investor Contribution $26,000,000 Equity Investor IRR 19% Equity Investor Return (NPV) $6,604,547 POST-FLIP 10% community O & M Rate (% of revenues) 9.3% ownership Capital Cost per kW $1,936 IRR (Years 1-20) 22% Net Present Value (Years 1-20) $13,538,953 dev 90% elopment, LLC 5% Operations Investors 5% Development Investors 2105 1st Ave S, Minneapolis, MN 55404 Toll Free: 1-800-946-3640 Phone: 612-870-3461 Fax: 612-813-5612 info@windustry.org www.windustry.org 4

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