2015-11-12T14:25:27-06:00 2014-12-31 420714325 MCGLADREY LLP 1001 LAKESIDE AVE SUITE 200 CLEVELAND OH 441141152 990 2014-01-01 272238400 LAKE ERIE ENERGY DEVELOPMENT CORPORATION LAKE 2169650627 1938 EUCLID AVENUE NO 200 CLEVELAND OH 44115 DR LORRY WAGNER PRESIDENT 2162419201 2015-11-12 ZACHARY FORTSCH P00052725 2165231900 2014 2016-04-25 22:37:26Z LEEDCO DR LORRY WAGNER 1938 EUCLID AVENUE NO 200 CLEVELAND OH 44115 1227591 0 X WWW.LEEDCO.ORG X 2009 OH CREATE ROBUST OFFSHORE WIND ENERGY INDUSTRY IN NORTHEAST OHIO. 8 8 5 10 0 0 3375857 1210803 0 0 128 121 200 16667 3376185 1227591 0 0 0 0 623990 586666 0 0 66425 2918293 980182 3542283 1566848 -166098 -339257 652994 365053 771496 822812 -118502 -457759 X LEEDCO IS A REGIONAL NON-PROFIT AND ECONOMIC DEVELOPMENT ORGANIZATION BUILDING AN OFFSHORE WIND ENERGY INDUSTRY IN OHIO. 0 0 1196402 THE MAJOR STEP IN PURSUIT OF LAKE ERIE ENERGY DEVELOPMENT CORPORATION'S ("LEEDCO") MISSION TO BUILD THE OFFSHORE WIND INDUSTRY IN NORTHEAST OHIO IS TO DEVELOP AN INITIAL DEMONSTRATION PROJECT IN LAKE ERIE. THIS PROJECT, KNOWN AS ICEBREAKER, WILL CONSIST OF SIX 3.0MW WIND TURBINES LOCATED 7 TO 9 MILES OFFSHORE OF DOWNTOWN CLEVELAND. IT WILL SERVE AS AN ENVIRONMENTAL DATA COLLECTION CENTER AND PROVIDE A MODEL FOR RESPONSIBLE OFFSHORE WIND DEVELOPMENT IN LAKE ERIE. ICEBREAKER WILL BE FITTED WITH AN ARRAY OF SENSORS MEASURING ICE, WAVE, AND WIND LOADS, ASSESSING THE PERFORMANCE OF THE SYSTEM, AS WELL AS MONITORING ECOLOGICAL ACTIVITY ESPECIALLY RELATED TO BIRDS, BATS, AND AQUATIC LIFE. THE EXPERIENCE AND DATA COLLECTED THROUGH THIS PROJECT WILL HELP US IDENTIFY BEST PRACTICES, REFINE THE ENGINEERING INNOVATIONS, VALIDATE THE ENVIRONMENTAL CONDITIONS, GUIDE SITING FOR FUTURE PROJECTS, AND ULTIMATELY LOWER THE COST OF ENERGY. BACK IN 2013, LEEDCO WAS ONE OF SEVEN ORGANIZATIONS TO WIN A $4 MILLION INVESTMENT FROM THE U.S. DEPARTMENT OF ENERGY ("DOE") TO FUND THE FIRST STAGE OF DEVELOPMENT ACTIVITIES FOR OFFSHORE WIND DEMONSTRATION PROJECTS IN VARIOUS PARTS OF THE UNITED STATES. LEEDCO ASSEMBLED A WORLD CLASS TEAM OF TECHNICAL, ENVIRONMENTAL, FINANCIAL, AND LEGAL PARTNERS TO EXECUTE THE ENGINEERING, SUPPLY CHAIN DEVELOPMENT, PERMITTING, PUBLIC ENGAGEMENT, AND BUSINESS DEVELOPMENT ACTIVITIES NEEDED TO ADVANCE THE ICEBREAKER PROJECT. THE PROJECT TEAM CONSISTED OF MANY COLLABORATORS: EUROPEAN FIRMS WITH FIRST-HAND EXPERIENCE BUILDING OFFSHORE WIND PROJECTS, WORLD-CLASS EQUIPMENT SUPPLIERS, LOCAL AND DOMESTIC UNIVERSITIES AND NATIONAL LABORATORIES, DOMESTIC SUPPLY CHAIN COMPANIES, AND PROFESSIONAL SERVICE PROVIDERS - COLLECTIVELY THIS TEAM UNDERSTANDS THE OFFSHORE WIND INDUSTRY AND KNOWS HOW TO BUILD THE INDUSTRY IN OHIO. LEEDCO ORGANIZED, MANAGED, AND LED THIS HIGH PERFORMANCE, MULTI-NATIONAL TEAM TO ENSURE SUCCESS AND ACHIEVE INNOVATIVE OUTCOMES. THIS WORK CONTINUED INTO 2014.EXPERIENCED WIND TURBINE INSTALLATION FIRM FRED. OLSEN WINDCARRIER AS JOINED THE DEVELOPMENT TEAM FOR ICEBREAKER. FRED. OLSEN WINDCARRIER, BASED IN OSLO, NORWAY, HAS PROVIDED INNOVATIVE AND TAILORED SERVICES FOR THE TRANSPORT, INSTALLATION AND MAINTENANCE OF OFFSHORE WIND FARMS. THEIR ROLE ON THE ICEBREAKER PROJECT IS TO HELP DEVELOP AN INSTALLATION STRATEGY THAT LEVERAGES EXISTING REGIONAL ASSETS SUCH AS BARGES, PORT INFRASTRUCTURE, AND LOCAL MANUFACTURING COMPANIES. THE STRATEGY WILL ALSO CONSIDER FUTURE OFFSHORE WIND PROJECTS BOTH IN LAKE ERIE AND THROUGHOUT THE GREAT LAKES.IN LATE 2014, A NEW DOE AWARD OF $2.8 MILLION WAS GIVEN TO LEEDCO TO COMPLETE THE DETAILED ENGINEERING. WITH THIS AWARD, LEEDCO IS LEADING AN INTERNATIONAL ENGINEERING TEAM TO DESIGN AN OFFSHORE WIND TURBINE FOUNDATION OPTIMIZED FOR FABRICATION IN THE UNITED STATES. THE DESIGN WILL CATALYZE DOMESTIC MANUFACTURING GROWTH BY REMOVING BARRIERS TO ENTRY FACED BY U.S.-BASED STEEL FABRICATORS THAT WANT TO SUPPLY FOUNDATIONS FOR THE OFFSHORE WIND INDUSTRY. LEEDCO PREVIOUSLY DEVELOPED THE CONCEPTUAL DESIGN OF THE FOUNDATION SYSTEM LAST YEAR THROUGH A DOE $4 MILLION INVESTMENT.LEEDCO HAS PARTNERED WITH GLWN, A LEADING WIND INDUSTRY SUPPLY CHAIN ADVISER, TO ENGAGE LOCAL AND REGIONAL FABRICATORS. GLWN IS AN INITIATIVE OF WIRE-NET, A CLEVELAND-BASED MANUFACTURING SUPPORT ORGANIZATION. WITH THEIR HELP, LEEDCO SELECTED AMERICAN TANK & FABRICATING ("AT&F"), A CLEVELAND-BASED STEEL FABRICATOR, AS A PARTNER TO REPRESENT U.S. FABRICATORS DURING THE DESIGN PROCESS. AT&F IS THE LEADER AMONG SEVERAL U.S. COMPANIES WITH THE SOPHISTICATION NECESSARY TO FABRICATE MONOPILES OF THE SCALE AND COMPLEXITY NEEDED FOR USE IN THE OFFSHORE WIND INDUSTRY.FURTHERMORE, LEEDCO IS WORKING WITH SEVERAL OTHER KEY PROJECT PARTNERS. A TEAM AT CASE WESTERN RESERVE UNIVERSITY IS CONDUCTING LABORATORY TESTING TO VALIDATE THE DESIGN; OFFSHORE DESIGN ENGINEERING, A U.K.-BASED COMPANY THAT HAS DESIGNED AND INSTALLED SEVERAL EUROPEAN OFFSHORE WIND PROJECTS, IS LEADING THE DETAILED ENGINEERING OF THE FOUNDATION; THE COLD REGIONS RESEARCH AND ENGINEERING LABORATORY, LOCATED IN HANOVER NEW HAMPSHIRE AND PART OF THE U.S. ARMY CORPS OF ENGINEERS' ENGINEER RESEARCH AND DEVELOPMENT CENTER, IS CHARACTERIZING ICE FORMATIONS IN LAKE ERIE TO INFORM THE LOADS ANALYSIS; AND SOUND AND SEA TECHNOLOGY, AN OCEAN ENGINEERING FIRM BASED IN LYNNWOOD, WASHINGTON, IS PERFORMING SOIL CHARACTERIZATION ANALYSIS. 1196402 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 18 0 1 5 1 0 0 0 0 0 0 0 0 0 0 X 8 8 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 0 1 0 0 OH X DAVID KARPINSKI 2169650627 1938 EUCLID AVENUE SUITE 200 CLEVELAND OH 44115 DANIEL R CLAYPOOL BOARD MEMBER 1.00 X 0 0 0 JENITA MCGOWAN BOARD MEMBER 1.00 X 0 0 0 KAREN L ALLPORT BOARD MEMBER 1.00 X 0 0 0 ROBERT E AUFULDISH BOARD MEMBER 1.00 X 0 0 0 STEVE DEVER BOARD MEMBER 1.00 X 0 0 0 TED KALO BOARD MEMBER 1.00 X 0 0 0 WILLIAM D FRIEDMAN BOARD MEMBER 1.00 X 0 0 0 RONALD B RICHARD BOARD CHAIRMAN 1.00 X X 0 0 0 FRAN DIDONATO BOARD SECRETARY 1.00 X 0 0 0 J STEVEN COATES BOARD TREASURER 1.00 X 0 0 0 DR LORRY WAGNER PRESIDENT 40.00 X 210400 0 33825 DAVID KARPINSKI VP OF OPERATIONS 40.00 X 157679 0 29108 368079 0 62933 2 0 1 0 OFFSHORE DESIGN ENGINEERING LTD ST GEORGES HOUSE 5 ST GEORGES WIMBLEDON UK SW19 4DR PROJECT CONSTRUCTION MANAGEMENT 457100 PROJECT MANAGEMENT CONSULTANTS LLC 3900 KEY CENTER 127 PUBLIC SQUARE CLEVELAND OH 44114 PROJECT MANAGEMENT SERVICES 179397 MCMAHON DEGULIS LLP 812 HURON ROAD SUITE 650 CLEVELAND OH 44115 PERMITTING/LEGAL 162689 CASE WESTERN RESERVE UNIVERSITY 10900 EUCLID AVENUE CLEVELAND OH 44106 RESEARCH AND DESIGN 123450 4 990156 220647 1210803 121 121 REIMBURSEMENT INCOME 900099 16667 16667 16667 1227591 0 0 16788 X 244225 134900 84339 24986 167177 92342 57732 17103 20250 11185 6993 2072 134748 74430 46533 13785 20266 11194 6999 2073 167672 155602 12070 65186 60494 4692 648849 602142 46707 1136 1000 136 10950 7011 3063 876 31500 17399 10878 3223 32225 16134 16091 9103 5028 3144 931 13561 7541 4644 1376 1566848 1196402 304021 66425 362112 27949 270966 266277 19916 70827 652994 365053 771496 472812 350000 771496 822812 X -118502 -457759 -118502 -457759 652994 365053 -339257 0 X 0 1 X 0 1 1 X 477347 812673 402676 3375857 1210803 6279356 477347 812673 402676 3375857 1210803 6279356 177971 6101385 12 209 207 128 121 677 200 16667 16867 6296900 0.96900 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: REIMBURSEMENT INCOME - 2013 AMOUNT: $ 200. 2014 AMOUNT: $ 16,667. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 641 641 0 PART II-B, LINE 1: THE NATURE OF THE LOBBYING EXPENSE WAS LEEDCO STAFF PROMOTING CLEAN ENERGY ON THE FEDERAL LEVEL. NO EXTERNAL LOBBYISTS WERE USED. 0 X 1508763 281172 281172 1227591 0 1227591 1848020 281172 281172 1566848 0 1566848 PART X, LINE 2: THE FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) PROVIDES GUIDANCE FOR HOW UNCERTAIN INCOME TAX POSITIONS SHOULD BE RECOGNIZED, MEASURED, DISCLOSED AND PRESENTED IN THE FINANCIAL STATEMENTS. THIS REQUIRES THE EVALUATION OF TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN THE COURSE OF PREPARING LEEDCO'S TAX RETURNS TO DETERMINE WHETHER THE TAX POSITIONS ARE MORE-LIKELY-THAN-NOT OF BEING SUSTAINED WHEN CHALLENGED OR WHEN EXAMINED BY THE APPLICABLE TAX AUTHORITY. TAX POSITIONS NOT DEEMED TO MEET THE MORE-LIKELY-THAN-NOT THRESHOLD WOULD BE RECORDED AS A TAX BENEFIT OR EXPENSE AND LIABILITY IN THE CURRENT YEAR. FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013, MANAGEMENT HAS DETERMINED THERE ARE NO UNCERTAIN TAX POSITIONS. X 1 1 X X 0 0 0 0 0 0 0 0 0 DR LORRY WAGNER PRESIDENT 210400 0 0 0 0 0 8604 0 25221 0 244225 0 0 0 DAVID KARPINSKI VP OF OPERATIONS 157679 0 0 0 0 0 6600 0 22508 0 186787 0 0 0 PART I, LINE 1A DR. LORRY WAGNER AND DAVID KARPINKSI RECEIVED TAX GROSS UP PAYMENTS OF $1,020, INDIVIDUALLY, WHICH WERE INCLUDED ON THEIR 2014 W-2'S. FORM 990, PART VI, SECTION B, LINE 11 AFTER THE RETURN IS COMPILED BY THE TAX PREPARER AND UPON FINAL REVIEW BY THE EXECUTIVE DIRECTOR, THE FINAL VERSION OF THE FORM 990 IS GIVEN ELECTRONICALLY TO EACH BOARD MEMBER FOR A 5 DAY COMMENT PERIOD PRIOR TO SUBMISSION WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C EACH DIRECTOR AND OFFICER OF THE CORPORATION AND EACH MEMBER OF A COMMITTEE WITH BOARD-DELEGATED POWERS ANNUALLY SIGNS THE DISCLOSURE STATEMENT AND AFFIRMATION OF COMPLIANCE. TO ENSURE THE CORPORATION OPERATES IN A MANNER CONSISTENT WITH ITS TAX-EXEMPT PURPOSES AND DOES NOT ENGAGE IN ACTIVITIES THAT COULD JEOPARDIZE ITS TAX-EXEMPT STATUS, PERIODIC REVIEWS SHALL BE CONDUCTED. THE PERIODIC REVIEWS SHALL, AT A MINIMUM, INCLUDE THE FOLLOWING SUBJECTS: A. WHETHER COMPENSATION ARRANGEMENTS AND BENEFITS ARE REASONABLE, BASED ON COMPETENT SURVEY INFORMATION, AND THE RESULT OF ARM'S LENGTH BARGAINING. B. WHETHER PARTNERSHIPS, JOINT VENTURES, AND ARRANGEMENTS WITH MANAGEMENT ORGANIZATIONS CONFORM TO THE CORPORATION'S WRITTEN POLICIES, ARE PROPERLY RECORDED, REFLECT REASONABLE INVESTMENT OR PAYMENTS FOR GOODS AND SERVICES, FURTHER CHARITABLE PURPOSES AND DO NOT RESULT IN INUREMENT, IMPERMISSIBLE PRIVATE BENEFIT OR IN AN EXCESS BENEFIT TRANSACTION. WHEN CONDUCTING THE PERIODIC REVIEWS, THE CORPORATION MAY, BUT NEED NOT, USE OUTSIDE ADVISORS. IF OUTSIDE EXPERTS ARE USED, THEIR USE SHALL NOT RELIEVE THE GOVERNING BOARD OF ITS RESPONSIBILITY FOR ENSURING PERIODIC REVIEWS ARE CONDUCTED. VIOLATIONS OF THE CONFLICTS OF INTEREST POLICY: IF THE BOARD HAS REASONABLE CAUSE TO BELIEVE AN INTERESTED PERSON HAS FAILED TO DISCLOSE AN ACTUAL OR POSSIBLE CONFLICTS OF INTEREST, THE FOLLOWING STEPS SHALL BE TAKEN: A. THE BOARD SHALL INFORM THE INTERESTED PERSON OF THE BASIS FOR SUCH BELIEF AND AFFORD THE INTERESTED PERSON AN OPPORTUNITY TO EXPLAIN THE ALLEGED FAILURE TO DISCLOSE. B. IF, AFTER HEARING THE INTERESTED PERSON'S RESPONSE AND AFTER MAKING FURTHER INVESTIGATION AS WARRANTED BY THE CIRCUMSTANCES, THE BOARD DETERMINES WHETHER THE INTERESTED PERSON HAS FAILED TO DISCLOSE AN ACTUAL OR POSSIBLE CONFLICT OF INTEREST, IT SHALL TAKE APPROPRIATE DISCIPLINARY AND CORRECTIVE ACTION. FORM 990, PART VI, SECTION B, LINE 15A SALARY OF THE PRESIDENT IS SUBJECTED TO REVIEW BY A COMPENSATION COMMITTEE CREATED BY LEEDCO. THE COMMITTEE'S RESPONSIBILITIES INCLUDE SETTING THE COMPENSATION OF THE PRESIDENT AND APPROVING EMPLOYEE BENEFITS RECOMMENDED BY MANAGEMENT. COMPENSATION FOR THE PRESIDENT IS EVALUATED AGAINST THE MARKET. THE COMPENSATION COMMITTEE GATHERS COMPARABLE DATA FROM THE 990S OF OTHER NORTHEAST OHIO ECONOMIC DEVELOPMENNT ORGANIZATIONS TO ASSIST IN THE EVALUATION PROCESS. THE RESULTS OF THE EVALUATION PROVIDE THAT DIRECT PAY AND INDIRECT PAY PROGRAMS ARE AT OR BELOW MARKET MEDIANS. THE COMMITTEE RECORDS MINUTES DOCUMENTING THE COMPENSATION-SETTING PROCESS. COMPENSATION OF ALL OTHER EMPLOYEES IS DETERMINED BY THE PRESIDENT BY COMPARING MARKET MEDIANS. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE NOT MADE AVAILABLE TO THE PUBLIC. FORM 990, PART IX, LINE 11G CONSULTANTS AND PROFESSIONAL SERVICES: PROGRAM SERVICE EXPENSES 602,142. MANAGEMENT AND GENERAL EXPENSES 46,707. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 648,849.