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PAGE 10 FOCUS November 1, 2010 • Law Times Lawyers called to help in green energy battle Property values affected as province prioritizes wind, solar developments BY DARYL-LYNN CARLSON For Law Times W ith Ontario getting on the green en- ergy bandwagon, lawyers who practise real estate law face the prospect of representing clients who have been approached by alterna- tive power developers seeking to set up wind farms or solar panel projects. Th ose clients could range from people who own large parcels of property to individ- ual homeowners within prox- imity of a proposed wind farm who fear their land values will plummet in the event an alter- native energy project receives approval. John Goudy, a litigator at Ontario Real Estate Legislation 2010-2011 Key statutes and regulations include: • • • • Priorities), ss. 72-85 • • • • • • • and regulation • • ORDER your copy today Perfectbound • 774 pp. Published October each year On subscription $61 • P/C 0824140000 One time purchase $71 P/C 0824010000 • ISSN 1195-3152 Multiple copy discounts available • • • regulations regulations and regulations and and and regulations • • • ss. 6 and 9 s. 116 and regulation (Part XI • • • • (Part II) • • • and regulations R.R.O. 1990, Reg. 1026 (under the s. 2 ) s. 50 Cohen Highley LLP in Lon- don, Ont., whose practice deals with the area of land use and related environmental issues, has been retained by several farmers recently who've been approached by green energy developers seeking to lease a portion of their property to set up wind projects. He acknowledges that wind farms are often opposed by neighbouring residents con- cerned about health issues and, perhaps more signifi cantly, property values should a wind project get approval in their neighbourhood. "Th e projects that are most controversial are the wind projects," he says. "In talking to land own- ers about whether they should enter into a contract to allow companies to come on to their property and build turbines, I tell them that one of the things they should look at is liability and what sort of potential li- ability they have towards their neighbours. Th at project on their land could cause some damage or loss of property value for neighbours around them." Surrounding communi- canadalawbook.ca For a 30-day, no-risk evaluation call: 1.800.565.6967 Canada Law Book, a Thomson Reuters business. Prices subject to change without notice, to applicable taxes and shipping & handling. LT1101 ties are often concerned about health issues from the continual rotation of wind turbines, along with a decrease in land values due to people's view of a wind farm from local residences. Under the province's Mi- Subscribe to Law Times Why pay extra for your legal news? Cutting-edge legal affairs, news and commentary for just 37¢ a day! Make the time for Law Times and keep up with all the developments in Ontario's legal scene. Subscribe today and receive: • Unlimited access to the Law Times digital editions and to our digital edition archives...FREE • Canadian Legal Newswire, a weekly e-newsletter from the editors of Law Times and Canadian Lawyer...FREE croFIT program announced last August by the Ontario Power Authority, future proj- ects will receive a guaranteed price of 64.2 cents per kilowatt hour for 20 years. Yet Goudy points out that from a legal perspective, the projects aren't as simple as they appear. "Th ere's a whole host of fi - nancial issues developers have to deal with, such as insurance costs, fi nancing, warranties. It's a very complicated process." In Th under Bay, Ont., there's signifi cant opposition to plans for a wind farm proposed along a mountain in the south end of the city. Douglas Shanks, a part- q Send me 1 year of Law Times for only $159.00 (plus applicable taxes) Name: __________________________________________________________________________ Company: _______________________________________________________________________ Address: ________________________________________________________________________ City: ____________________________ Prov: _______________ Postal Code: __________________ Tel: ( ) _______________________ Fax: ( ) ______________________ Email: ____________________________________________________________________________ q Payment enclosed q Charge my: q Visa q Mastercard q American Express Card #: __________________________________ Expiry Date: ___ / ___ (mm/yy) Signature (required): ________________________________________________ Date: ________________ 240 Edward St. Aurora, ON. L4G 3S9 Tel: (905) 727-0077 Fax: (905) 841-4357 Mail or fax this form to Law Times www.lawtimesnews.com LT Sub ad - 1/4-3X.indd 1 9/17/10 9:19:28 AM ner at Cheadles LLP there, acknowledges the opposition from neighbouring commu- nity groups to the proposed power project. "In this particular case, there were a lot of concerns raised by residents who live in the community," says Shanks. "One of the most signifi cant issues is their view and their health. Th at has been a huge issue in the project, along with the potential noise, the eff ects on wildlife, and the impact it could have on other business operations in the community. Th e perception is that the wind farm, being located close to a residential area, could have an eff ect on their property 'Some people have had dif- ficulty selling their property because of the windmills locat- ed nearby,' says Juli Abouchar. values, so there is a lot of op- position." Juli Abouchar, a partner and environmental law specialist at Willms & Shier Environmental Lawyers LLP in Toronto, notes that wind projects have indeed caused reductions of property values in some jurisdictions. She points to a wind farm established in Ontario's Bruce County as an example. Th ere, residents have organized them- selves over the fact that their property values have indeed de- creased due to the view of the turbines from the neighbour- hood. "Some people have had diffi culty selling their property because of the windmills locat- ed nearby," she says. But the Liberal government has been pushing to develop alternative energy projects. "Renewable energy has been a big push by this provincial gov- ernment and they have stream- lined the process of approval for these projects," Abouchar says. As a result, it's relatively easy for alternative energy de- velopers to get the green light. However, Abouchar points out that there are ways for property owners to appeal government decisions, which she acknowl- edges "could cause some uncer- tainty in a real estate deal" as the province is more inclined to approve an alternative en- ergy project than not. Solar panel projects haven't met with the same degree of opposition largely because they're more benign visually. In Bruce County, the com- munity is well-organized and has created a web site highlight- ing its concerns. Th e group is calling for a moratorium on wind turbine projects until a health study takes place. Ultimately, while alterna- tive energy projects sound like a great means to reduce carbon emissions and global warming, wind developments in particu- lar will inevitably be prone to opposition when they're lo- cated near a community. As a result, lawyers will fi nd them- selves called upon by hom- eowners to help contest proj- ects over the eff ects on their property values. 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