Development agreement means Armow Wind puts $13.6-million into Kincardine coffers

Kincardine council

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A development agreement hammered out between the Municipality of Kincardine and the proponents of the Armow Wind project, means $13.6-million for local initiatives and the Kincardine Airport.

Announced Tuesday (May 27), the agreement was discussed in closed session at the Kincardine council meeting last Wednesday (May 21), and approved once council returned to open session.

As a result, Kincardine, and the Armow Wind developers - Samsung Renewable Energy (Samsung) and Pattern Energy Group LP (Pattern Development) - have announced a contribution and pledge of at least $13.6-million as part of the Armow Wind project community benefit program.

A press release by the municipality, states that the program includes a $1-million contribution to the Kincardine Airport to improve local operations, and another $12.6-million to be put into a Community Benefit Reserve Fund over 20 years.

Samsung and Pattern Development have also signed a road use agreement with the municipality, which will govern the project’s commitments to ensure safe use of roads during its construction period and full restoration upon the completion of construction.

The Armow Wind project is a 180-megawatt, 92-turbine, commercial wind development in Kincardine. Construction is expected to begin later this year. 

The project will utilize local, Ontario-made wind turbine components from the Siemens Energy blade factory in Tillsonburg and the CS Wind tower factory in Windsor.

"We appreciate that the agreement with the Samsung-Pattern team respects the key considerations set out in the Memorandum of Understanding of early 2013," said Kincardine mayor Larry Kraemer.

"As our solicitor has observed, the development agreement should be regarded as 'state-of-the-art' in Ontario, and the community benefit package should be seen as a generous contribution with substantial benefit to our municipality."

“Samsung is thankful to become part of the community of Kincardine and proud of the local jobs the project will create,” said K.J. Kim, senior vice-president, Samsung C&T. “Samsung is dedicated to delivering meaningful benefits to communities where we are building clean, renewable energy projects.”

“We very much want to thank the landowners, community members and the municipality," said Mike Garland, chief executive officer of Pattern Development. "We are excited about being part of this community and we look forward to contributing to the area, including the community, educational and environmental programs.”

Combined with the estimated property taxes to be paid by Armow Wind, the Municipality of Kincardine will receive more than $20-million during the project’s first 20 years of operation.

Upon reaching operations, Armow Wind will contribute $1.03-million to the Kincardine Airport, and contribute $630,000 to the Community Benefit Reserve Fund each year for the following 20 years.

The Community Benefits Reserve Fund will support local initiatives in the municipality, such as:

  • Community infrastructure: roads, airport and municipal servicing infrastructure
  • Community services: police, fire, emergency medical services and health care
  • Education: educational programs and job training
  • Energy sustainability: municipal renewable energy systems, vehicle fleet efficiency upgrades, building energy efficiency upgrades and energy conservation programs
  • Land stewardship: creating natural habitat, tree planting, shoreline rehabilitation
  • Property tax relief for residents and businesses in the community
  • Public recreation: construction, renovation or rehabilitation of public arenas, parks and trails


In addition, Armow Wind agreed to the following requests of the municipality:

  • Bury all low-voltage collector lines located on private property carrying electricity from the project's wind turbines, where feasible
  • Create a tree preservation and replacement plan
  • Follow an emergency preparedness and response plan
  • Implement a complaint resolution process 
  • Turbines will not be located within the Kincardine Airport Vicinity or within 3,000 metres of the primary and secondary urban communities of Kincardine, Tiverton and the lakeshore

The Armow Wind project is expected to begin construction in late 2014 and reach operations in 2015. Upon completion, the project will generate energy equal to the annual electricity needs of approximately 70,000 Ontario homes. 

Compared to coal-fired generation, the project will off-set about 600,000 tonnes of carbon dioxide each year, the equivalent of taking nearly 117,000 cars off the roads, and will conserve enough water to supply approximately 17,000 Ontarians with fresh water.

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Wednesday, May 28, 2014