Webinar April 23
The Michigan Supreme Court's denial of Heron Cove Association’s application for leave to appeal was welcome news. It means we can move forward with financing and therefore restart construction.
As you will read below, we will hold an informational webinar on April 23rd to go into detail on our status and path forward, but below is a summary:
- The Capital Assessment Roll is final and is a source of revenue to finance municipal bonds
- The Operations and Maintenance Assessment Roll is final giving us operational surety going forward
- The overall project remains within the $217,700,000 approved computation of cost, despite the consequences of the construction suspension costs
- All four dams are permitted to begin construction
- FLTF started the process of remobilizing construction crews
- We expect to mobilize on all dams in May
- We expect work will resume all dams by June
There is much work to do, a few issues to resolve, and steps to take for financing. We want to set expectations that being fully scaled up depends on many factors in the market. We estimate the delay has cost us at least $10 million, but as we continue discussions with the contractors and negotiate change orders to restart construction, that number might be in the $10-$20 million range we had estimated. We are going through all project components to understand material costs related to inflation, tariffs and the market. We are confident we'll remain within our contingency budget.
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