Estate and Succession Planning
Dean Mead’s Estate and Succession Planning Department is one of the largest and most respected groups of estate planning attorneys in Florida. We are frequently…
Dean Mead’s Estate and Succession Planning Department is one of the largest and most respected groups of estate planning attorneys in Florida. We are frequently…
Dean Mead’s Tax Department handles tax planning issues for businesses and individuals. The attorneys in our department have extensive experience in a full range of…
As Florida’s major electric utility companies increase their efforts to invest in affordable clean energy, advancing technologies and phasing out older coal-fired and oil-burning power plants, locating land suitable for large solar is becoming increasingly competitive. Leading the way is Florida Power & Light (“FPL”). FPL plans to add eight (8) new universal solar power plants by 2018.[1] The new solar plants will require the installation of 2.5 million panels at the eight centers being located across the state.[2] In addition to the solar expansion plans that FPL has for its sites, Duke Energy and Tampa Electric, an Emera Company (“TECO”) are also making great strides in Florida with their expansion plans for future solar plants. Duke Energy renewable assets includes 60 solar facilities operating in a dozen states, with Duke’s 8.8 megawatts (MW) Suwannee Solar Facility expected to be fully operational by the end of this year.[3] Once up and running, the facility will produce enough energy to provide electric service to about 1,700 homes at peak production.[4] TECO completed construction on its largest solar area site, located at Big Bend in Apollo Beach earlier this year. This 23 MW solar center is located on 106 acres and is capable of providing electricity to more than 3,300 homes.[5]
Electric utility companies will continue to expand their solar footprint across Florida, and as a result large tracts of agricultural lands will be in increasing demand. Power companies have found that land already farmed has less wetland and endangered species issues and, the more isolated the location, the less likely it will attract potential Not In My Back Yard (“NIMBY”) opposition. Yes, even something as green as solar energy suffers from NIMBY exposure. Abandoned citrus groves seem to be the most desirable sites. Leasing your property to a reputable energy provider for use as a solar farm (energy center) may definitely be something to consider. Careful drafting of the terms and conditions of the lease is critical in avoiding stormy weather in what otherwise could be a sunny business arrangement. Here are just some of the things to consider:
Although drafting the right terms and provisions for a solar farm lease is a complex process, entering into such an agreement is worth consideration. Solar farms provide a source of renewable clean energy for distribution by the electric companies while providing an income stream for the property owner from a crop that keeps on giving.
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About the Authors:
Michael Minton is Managing Shareholder of Dean Mead’s Fort Pierce office, Chair of the firm’s Agribusiness Industry Team and Chair of the firm’s new Solar Energy Team. He represents family businesses with an emphasis on generationally-owned agricultural businesses. Mr. Minton assists with their organizational structure, federal income, estate and gift tax planning and business succession planning. He offers his clients extensive experience focusing on tax issues related to agri-business, as well as water resource issues and new innovative uses of land for value added propositions. He may be reached at mminton@www.deanmead.com.
Anna Long is Of Counsel in Dean Mead’s Real Estate department and a member of the firm’s Solar Energy Team. She has been practicing law for over 30 years primarily in the areas of environmental law, land use, zoning and administrative law. Before moving to private practice, Ms. Long held numerous environmental managerial positions including, Director/Counsel for a large building supply company, Manager for Orange County Florida’s Environmental Protection Division, Director of Environment, Safety and Health for the largest semi-conductor company in the northwest and was In House Counsel and Manager of the environmental division of a major private electric utility company with services in nine states. She was also General Counsel and Director of Environmental Services for a multi-state environmental and engineering and consulting firm located in the Northwest. She may be reached at along@www.deanmead.com.
Chris D’Amico is a Shareholder in Dean Mead’s Corporate and Tax practice and a member of the firm’s Solar Energy Team. He represents companies and business owners in all types of business and tax matters, including choice of entity, mergers and acquisitions, reorganizations, and other general business matters. In addition, Mr. D’Amico represents title and mortgage companies with respect to the formation and operation of “affiliated business arrangements”. He also represents clients in all aspects of the development and sale of solar photovoltaic electricity generating projects. Mr. D’Amico is Board Certified in Tax Law by The Florida Bar. He may be reached at cdamico@www.deanmead.com.
Dennis Corrick is a Shareholder and member of Dean Mead’s Agribusiness Industry Team and Solar Energy Team. He practices in the areas of commercial real estate, zoning and land use, and general business law. He has experience in every element of real estate purchase, ownership, governance and sale. In addition, he assists clients in land use and zoning matters, permitting and licensing, and in agreements governing the use of property such as covenants and restrictions, commercial and agricultural leases, easements and licenses. Mr. Corrick has extensive experience working with issues unique to agricultural businesses and properties. These include conservation easements, grazing leases and matters related to water use and environmental permitting, as well as financing, operation, sale and purchase of farm and ranch properties. He may be reached at dcorrick@www.deanmead.com.
[1] FPL Accelerates Major Solar Energy Development Projects – Now Plans to Add Eight New Universal Solar Power Plants Cost-Effectively by Early 2018. (2017, February 20). Retrieved July 26, 2017, from http://newsroom.fpl.com/2017-02-20-FPL-accelerates-major-solar-energy-development-projects-now-plans-to-add-eight-new-universal-solar-power-plants-cost-effectively-by-early-2018
[2] Solar Energy Centers. (n.d.). Retrieved July 26, 2017, from https://www.fpl.com/clean-energy/solar/energy-centers.html
[3] Wheeless, R. (2017, January 30). Duke Energy Expands Renewable Energy. Retrieved July 26, 2017, from https://illumination.duke-energy.com/articles/duke-energy-innovates-its-way-into-2017
[4] Id.
[5] Solar Power at Big Bend in Apollo Beach. (n.d.). Retrieved July 27, 2017, from http://www.tampaelectric.com/files/renewableenergy/renewableenergyannualupdate.pdf