Tonkon Torp represented its long-standing client, Obsidian Renewables, in its recent sale of the Black Cap II solar project to PSEG Solar Source, a New Jersey-based utility. Obsidian develops utility-scale solar projects by matching land, interconnection rights, financing, and building capability with interested buyers.
The 8 megawatt Black Cap II facility, located on 70 acres in Lake County, Oregon, sold for $21 million in November 2016, upon completion of the facility. When PSEG first expressed interest in March, 2016, Tonkon Torp attorneys joined the transaction team as legal support for the industry expertise of Obsidian’s in-house team to move the project quickly through construction and completion. The transaction featured many complex moving parts requiring precise coordination of corporate issues, land acquisition, construction, and utility interconnection.
The Black Cap II transaction showcases Tonkon Torp’s ability to tap its depth of expertise to create a nimble, customized client team. All agreements with the project build company, Swinerton Builders, and the purchase and sale documentation were completed in conjunction with Obsidian staff by Leon Simson and Claire Brown, who are members of Tonkon Torp’s Mergers & Acquisitions practice group. David Petersen, who chairs Tonkon Torp’s Real Estate & Land Use practice group, handled the real estate elements of the deal, which included a long-term land lease and resolution of complex title issues.
The project is expected to produce about 20.8 million kilowatt hours of electricity per year, enough to power more than 1,800 homes. It has received strong support from the communities of Lakeview and Lake County, from the Lake County Resources Initiative, and from the Oregon Department of Energy. The power is being sold to PacifiCorp under a long term power purchase agreement.