Maloney asks about SBMT contingency plan and reduced scope ROI
Maloney asks about contingency plans if the federal court reverses and about the reduced scope from three offshore projects to one 810 MW project. Jung clarifies the stop work orders never affected SBMT construction given its onshore nature. On ROI, he emphasizes the lease guarantee ensures Equinor pays rent and EDC is actively helping find other maritime uses for the site.
And just to clarify, what is the contingency plan if the injunction is lifted or if federal court, the appeals process, if they prevail?
And if we're at 98% complete, what's the timeline?
Yeah, I'll clarify.
Just given, like I mentioned before, the jurisdiction of the federal government only really pertains to federal offshore construction.
When there were two stop work orders that did not stop construction at SBMT both times, we have never had to comply with the stop work order given its onshore nature and given that it's city land.
To that line of questioning, the 2022 agreement was justified as the staging and assembly hub because there were three offshore projects that were in the pipeline, Empire Wind 1, Empire Wind 2,
and Beacon Wind 1, which together would have generated more than 3,000 megawatts.
Empire Wind 2 was canceled.
Beacon Wind has no active construction, and the terminal now has an 810 megawatt project.
So how does the economic case for the city's investment in the terminal hold when the...
scope of work has reduced down to one project and have you reassess the return on investment expected?
Yeah, I think that's where our lease provision that ensures a guarantee of rent is really important here.
We as EDC are of course supportive of Equinor finding multiple uses to ensure that they are able to meet the rent.
But that onus is on them to ensure that they get subtenants or activate the site with uses that will generate that income to provide the city with rent.
I will note that we have actively partnered with Equinor to amplify the South Brooklyn Marine Terminal for other maritime dependent uses, which could include the storage and transportation of construction materials, et cetera.
And so we're actively at the table trying to shape and ensure that they are successful.
But ultimately, I will underscore that it is their responsibility.
To give the city rent payments.
And what is the excess capacity at the site being used for?
Currently there is no excess capacity in terms of staging and assembly given that Empire Wind 1 is gonna be using the totality of that site.
Like I mentioned before, I think there's a,
I'll have to get back to you on the discrete acreage, but we are actively supporting Equinor to find other uses for that site.