Saturday, May 02, 2009

47 new liens filed against Noble Environmental Power

EAGLE -- Forty-seven additional mechanics liens have been filed by a Michigan construction company against Noble Environmental Power.

The Aristeo Construction Company filed the liens on April 17. They don't list a dollar amount, but mention numerous other parties as debtors, including NEP affiliate Noble Construction LLC; the Wyoming County Industrial Development Agency; and property owners for each affected parcel.

The latter includes Eagle residents, along with a few in North Java and Lancaster. Boxler Dairy Farms of Varysburg, McCormick Farms of Bliss, and Adrianna Farms Inc. of Orchard Park are also among those listed.

The liens are in addition to 19 such documents filed Feb. 13 in connection with the Noble Wethersfield Wind Park.

A mechanics lien is filed when a party fails to provide payment for goods or services.

Each lien renders the property owner unable to obtain clear title to the property.

The liens can also damage the owners' credit scores, affecting their ability to obtain loans and lines of credit.

The April 17 liens aren't expected to have any effect on the Wyoming County IDA, said Executive Director Michael Heftka.

He said everybody involved in a project is usually named when such liens are filed.

"In a normal IDA transaction, (the IDA) would be a title holder to real property," he said. "In this case, we're not, because lease agreements were done. The real estate is still owned by the real property owners.

"When we do an agreement with a company, the IDA is indemnified in every aspect of it," he continued. "It's clearly the company's responsibility. My understanding is that the liens against (NEP) are being resolved."

Which essentially means the IDA is free of any legal liability.

Noble Environmental Power last month announced a $640 million infusion of long-term capital for projects including its Wethersfield Wind Park.

GE Energy Financial Services, a unit of General Electric, provided more than $200 million in investment, while a syndicate of banks and financial institutions provided $440 million in long-term debt.

Besides Wethersfield, projects included in the deal include the Noble Altona Windpark in Clinton County, and the Noble Chateaugay Windpark in Franklin County.

Noble officials expect the difficulties will be cleared up soon.

"A mechanic's lien is a statutory tool available to a vendor in a commercial dispute," representatives said in an e-mailed response to The Daily News. "It is a common tool utilized by subcontractors at the end of construction projects, and was used by a few of Noble's subcontractors. We are currently working through these issues and expect to have the liens removed in the near future."

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