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IN BUSINESS GOING GREEN LAWSUIT: LANDOWNER PUTTING SOLAR PLANT PLANS IN DANGER By Steve Green senior staff writer A Spanish company developing solar power plants in the desert north of Las Vegas has gone to court in hopes of keeping one of the projects on track. The company, Fotowatio Renewable Ventures of Madrid, says it has a deal in place for its Spectrum Solar plant northeast of Las Vegas that will sell 37.5 megawatts of electricity to NV Energy— enough to serve 7,000 homes —once the plant is up and operating. That's been scheduled for late 2012. But plans for a second nearby plant at Apex are stalled because of difficulties Fotowatio is encountering in buying land for that project. That plant would generate 25 megawatts, enough to power 5,000 homes. The company is suing Kapex LLC and several of its owners and related companies, charging that they have failed to honor an agreement to sell the 154 acres needed for the Apex plant for $4.446 million. The suit, filed Friday, alleges that more than $45 million in financing and about SPOTLIGHT ON SUNSHINE: Fotowatio Renewable Ventures helped develop solar panels at Nellis Air Force Base, above. The company has a deal for another plant at Apex. 250 construction jobs are in jeopardy because of delays in buying land. Fotowatio said in the lawsuit the Energy Department has conditionally approved a $45.6 million loan guarantee for the project. But the loan guarantee program has limited funds, is extremely competitive and supports only renewable energy projects that are the most assured of commencing construction no later than September 30, the lawsuit said. Fotowatio said it will not be able to meet the loan guarantee requirements unless it has ownership of the solar farm site "in the immediate future." The suit says Kapex failed to honor a 2009 sales agreement due to complications arising from being in foreclosure proceedings after defaulting on loans totaling $64.7 million for its 3,000-acre Mountain View Industrial Park. Fotowatio attorneys with the Las Vegas law firm Kemp, Jones & Coulthard LLP say in the lawsuit that Fotowatio was aware the land was subject to foreclosure proceedings. According to the lawsuit, the parties said they were fully supportive of the solar farm site being sold to Fotowatio because the proceeds would help repay a senior loan. "Fotowatio was also advised that foreclosure on the entire Mountain View Industrial Park would not occur until after Fotowatio's scheduled closing date," the suit says. The suit accuses Kapex of breach of contract and seeks an injunction requiring Kapex to sell the land under the 2009 sales agreement. Unless it quickly acquires the land, Fotowatio faces "irreparable injury of losing the unique solar farm site needed for the development of its renewable energy project," the suit says. 12 | 29 AUGUST 2011 | STEVE MARCUS