HomeMy WebLinkAboutDoc 419 - Amend Lease - BiogreenDeschutes County Board of Commissioners
1300 NW Wall St., Suite 200, Bend, OR 97701-1960
(541) 388-6570 -Fax (541) 385-3202 -www.deschutes.org
AGENDA REQUEST & STAFF REPORT
For Board Business Meeting of August 4, 2014
Please see directions for completing this document on the next page.
~: July 22,2013
FROM: James Lewis Property and Facilities 541-385-1414
TITLE OF AGENDA ITEM:
Consideration of Signature of Document 2014-419, an Addendum to a Real Estate Sale Agreement (DC 2009
312) between Deschutes County (Seller) and Biogreen Sustainable Energy Co. (Buyer)
PUBLIC HEARING ON THIS DATE? No
BACKGROUND AND POLICY IMPLICATIONS:
On June 29,2009 the Deschutes County Board of Commissioners (Board) signed an option agreement (DC
2009-312) giving Biogreen Sustainable Energy Co. (Biogreen) the exclusive option to purchase land in the
La Pine Industrial Site to construct and operate a biomass power facility. Pursuant to that agreement,
Biogreen would purchase the 19.5 acre site for a purchase price of $1 ,200,000 within the timeframe
established therein. Since the original agreement, the Board has granted three separate extension requests to
the original Option Agreement (DC 2011-330, 2012-261 and 2013-183), with the current option extension
expiring June 1,2014.
In order to allow an additional period of time for Biogreen to address specific development related issues with
the City of La Pine (specifically related to water and sewer service), Biogreen is requesting an additional
extension of six months (attached letter from Biogreen). The City of La Pine submitted a letter in support of this
request on the condition that during this time period, Biogreen enter into a Water Development Agreement and a
Sewer Discharge Development Agreement with the City that are satisfactory to both parties, and the
consideration of further extensions by the County should be predicated on such agreements being executed
(attached letter from City of La Pine).
The option agreement will be further discussed no later than January 21 , 2015, in order to consider a possible
longer term extension past the January 31, 2015 expiration date of this extension. Factors that will be weighed in
considering further extension include Biogreen's execution ofa Water Development Agreement and a Sewer
Discharge Development Agreement with the City of La Pine, demonstration of further progress toward obtaining
a Power Purchase Agreement with a purchasing utility, and an additional earnest money payment to Deschutes
County to secure the option for purchase.
FISCAL IMPLICATIONS: None
RECOMMENDATION & ACTION REQUESTED:
Staff recommends Board authorization and signature of Document 2014-419.
ATTENDANCE: James Lewis
DISTRIBUTION OF DOCUMENTS: Original to James Lewis
Property & Facilities Department
Susan C. Ross, Director
14 NW Kearney Street, Bend, OR
P.O. Box 6005, Bend, OR 97708-6005
(541) 388-6594· Fax: (541) 317-3168July 22, 2014
www.co.deschutes.or.us
Mr. Rob Broberg
Biogreen Sustainable Energy Co.
445 Port Ave., Suite A
St. Helens, OR 97051
RE: Biogreen Purchase Option Agreement, La Pine Industrial Site
On June 29,2009 the Deschutes County Board of Commissioners (Board)
signed an option agreement (DC 2009-312) giving Biogreen Sustainable Energy
Co. (Biogreen) the exclusive option to purchase land in the La Pine Industrial Site
to construct and operate a biomass power facility. Pursuant to that agreement,
Biogreen would purchase the 19.5 acre site for a purchase price of $1,200,000
within the timeframe established therein. Since the original agreement, the
Board has granted four separate extension requests to the original Option
Agreement, with the current two (2) month short term option extension expiring
August 1, 2014.
In order to allow an additional period of time for Biogreen to address specific
development related issues (specifically water and sewer issues) with the City of
La Pine, Biogreen now requests an additional extension of six (6) months. The
letter requesting the extension includes an explanation of the progress and
milestones that have been achieved and that can be expected for the biomass
project as it moves forward. The City of La Pine submitted a letter in support of
this request on the condition that during this time period, Biogreen enter into a
Water Development Agreement and a Sewer Discharge Development
Agreement with the City that are satisfactory to both parties, and the
consideration of further extensions by the County should be predicated on such
agreements being executed.
Deschutes County hereby grants an additional six (6) month extension of the
option agreement to January 31, 2015. The option agreement will be further
discussed no later than January 21, 2015, in order to consider a possible longer
term extension past the January 31, 2015 expiration date of this extension.
Factors that will be weighed in considering further extension include Biogreen's
execution of a Water Development Agreement and a Sewer Discharge
Development Agreement with the City of La Pine, demonstration of further
progress toward obtaining a Power Purchase Agreement with a purchasing
Document No. 2014-419
Quality Services Performed with Pride
utility, and an additional earnest money payment to Deschutes County to secure
the option for purchase.
Sincerely,
DESCHUTES COUNTY BOARD OF COMMISSIONERS
Tammy Baney, Chair
Anthony DeBone, Vice-Chair
Alan Unger, Commissioner
Document No. 2014-419 2
2525 W st Fir 'ton Ln ., V ncouv r, WA 98660
Phono : 360.936 .5408 Fax : 888.311.9738IOGR
E·Mall broberg.rob@gmail.comSUSTAINABLE ENERGY CO. www.blogrconcnergyco .com
VIA ELECTRONIC MAIL (JAMES.LEWr @D ,
July 22, 2014
James Lewis. Property Manager
Deschutes County
14 NW Kearney Avenue
Bend, Oregon 97701
Subject: Request to Ex t end Option Agreement for Biogreen Sustainable Energy Co., LLC
Dear Mr. Lewis:
Biogreen Sustainable Energy Co ., LL C ("Biogreen") is requesting Deschutes County to extend
the term of the Option Ag re ement (' Option Agreement") for that certain real property known as
100 Mitts W ay, La Pine, Oregon, also known as La Pine Industrial Site Tra ct E, consisting of
approximately 19.5 acres (the "Property"). Biogreen intends to develop the Property as a 24.9
megawatt biomass powe r generation facility (the "Project"). Biogreen is making this request in
order to allow us additional time to obtain a Power Purchase Agreem e nt ("PPA") with a
purchasing utility for the sale of the renewable power.
To date , Biogreen has made significant progress in developing the Proj ect, several of which are
briefly summarized below:
• Selection of an engineering, procurement and construction (EPC) contract for the
d e sign a nd build of the Project;
• Engineering and development related to the Project site plan
• Successful land us e approvals with Deschutes County and the City of La Pine;
• Obtaining an air discharge permit for the Project;
• An Effluent Water Services and Wastewater Discharge Agreement with the City of La
Pine, which is currently up for renewal;
• A Water Services Agreement with the City of La Pine, which is currently up for
renewal;
• Completion of an In t erconnection System Impact Study and interconnection
approval for the Project with Bonneville Power Administration; and
• Pre-certification with the California Energy Commission for the sale of renewable
power into California that would qualify under that state's renewable portfolio
standard requirements.
Biogreen hereby requests that Deschutes County extend the Option Agreement for a teml of six
(6) months, until a longer agreement can be reached that is equal to the tenn Biogreen anticipates
Mr. James Lewis July 22, 2014
extending the Water Development Agreement and Sewer Discharge Development Agreement
with the City of La Pine.
Please do not hesitate to contact me should you like to discuss further or if you have any
questions about this request or the Project. We look forward to hearing from you soon.
Very truly yours,
~~~.
Rob Broberg, President
Biogreen Sustainable Energy Co., LLC
cc: Rick Allen, City of La Pine
\
I Mr. James Lewis 2 July 22,2014
I
1
1
Mayor
Ken Mulenex
Council MembersI CITY OF LA PINE I Greg Jones
Stu Martinez
Kathy Agan
Karen Ward
July 22 , 2014
Via: e-mail and regular mail
Re: Extension of Option Agreement for Biogreen Sustainable Energy Co., LLC
Dear Mr. Lewis:
The City of La Pine has reviewed the request of Biogreen Sustainable Energy Co., LLC to extend the
term of the Option Agreement to acquire 100 Mitts Way, La Pine, Oregon, from the County, fo), a period
of6 months.
The City of La Pine supports this request on the condition that the extension (and any further extension)
is conditioned on Biorgreen entering into a Water Development Agreement and Sewer Discharge
Development Agreement with the City of La Pine that is satisfactory to both Biogreen and the City of La
Pine.
Thank you for facilitating this extension.
PO Box 2460, La PII1f!, OR 97739 Plume #54/-.536-1432 Fa.\' #541-536-/462