CLIENT
Our client is a Canada-based renewable power producer serving communities in the US and Canada with over 5,000 megawatts of power generation capacity across over twenty facilities.
CHALLENGE
At the time of engagement, the developer was in the entitlement stage of a $1B, 600 megawatt wind and solar development project in the Pacific Northwest. The project required significant property tax abatement to provide power at a rate that would enable the developer to secure a power purchase agreement with its utility customer.
Due to specific legislative changes set to take effect, the timeframe for incentive negotiation was very short. The desired incentive required the negotiation of favorable terms as well as approvals at both the county and state levels within a sixty-day timeframe.
With no dedicated credits and incentives expertise on its project team, the developer, on a tight deadline, sought DMA’s assistance with incentive procurement.
SOLUTION
Mobilizing a Strategic Team
DMA quickly assembled a specialized team of incentives and property tax experts seasoned in renewables, utilities, and relevant local jurisdictions. This collaborative approach provided our client with a tailored set of consultants capable of navigating regional nuances and industry intricacies in a timely fashion.
Tax Modeling
Our comprehensive analysis involved the utilization of tax modeling to simulate and project assessed property values throughout the lifespan of the project. This process provided a clear, detailed picture of potential impacts on future cash flows, as well as tax revenue impact on the community.
Having a clear understanding of the project’s financial landscape enabled informed decision-making and strategic planning for long-term success.
Incentive Procurement
With the development team focused on project planning, DMA led correspondence with state and local officials on the client’s behalf. Equipped with a keen understanding of the project’s financial landscape, we engaged in negotiations to align incentives with the client’s long-term vision, ensuring fairness and transparency in every resolution.
RESULT
Tax Savings
The developer secured an incentive package that would provide over $100M in future tax savings while enabling a transformational project and significant future revenue within the community. The incentive package was secured before the impending legislative changes took effect.
The project team was able to stay focused on execution and keep the development on track while entrusting DMA to manage a complex incentive procurement process.
WHY DMA?
DMA’s ability to provide project-specific property tax and incentive expertise helps renewable developers manage complex procurement processes, meet project deadlines, and ultimately negotiate agreements that empower transformational projects.
Choose DMA for a partnership that goes beyond meeting project demands, securing sustainable success for each project.
PARTNER TOGETHER,
GROW TOGETHER
Learn more about how our tax credits and incentives experts can be a valuable partner to support your business growth.