August 3, 2010 Kelly Pehrson, City Manager City of Monticello 17 North 100 East PO Box 457 Monticello, UT 84535 Re: Leasing City-owned MET Towers Dear Mr. Pehrson, ‘As you may know, REDCO is a developer of renewable energy projects and we have considerable land holdings in San juan County. We recently received a Conditional Use Permit with the County to build up to 400-megawatts of wind and/or solar. In order to advance our wind projects forward, we must begin collecting accurate wind data. Itis my understanding that Monticello City owns 3 MET towers. It is also my understanding that Monticello City recently advertised an RFP to either lease or acquire these MET towers, and did not receive any responses. I am writing you today to express our interest in leasing the city-owned MET towers. REDCO proposes that it pay the City of Monticello $1,000 per year for 2 years for the use of these 3 MET towers and for the ability to collect data and use the data as it See its. REDCO will also pay for all related operations and maintenance for the 3 MET towers during the 2-year lease period, We request that during the 2-year lease period, the data be the exclusive property of REDCO. We also request that the City assist REDCO to work with the various landowners, on which the MET towers currently reside, to facilitate that they remain in these same locations for the duration of the 2-year lease agreement. | appreciate your willingness to consider this option and look forward to speal with you directly about any questions you may have‘The City of Monticello will sublease the use of all 3 wind towers to Redeo Power for 2 ‘years, Resico will pay the City of Monticello $1,000/year for the use of the MET towers ‘and for the ability to collect data and use the data as it sees ft, Redoo will also pay for all ‘elated operations and maintenance for the 3 MEET towers during this 2-year lease period. ‘This incIndes the Land lease payments that the City of Monticello pays to the land owners. The land lenses have been extended for 2-years as Vara) { foasonir + 06 Date: (0-2 5-/ 0 Date: _ 0-25-10REDCO 1526 22 W BAXTER DR SUTE 200 et 2h, tole BOOS ty or Maes | 8 -xeeb -0 Two Freer, $c pe st DOLLARS Masricete, ut wewo LAND Lense ¢ Mey Jeuse Lense lane, Beate MOOS ee a 2400005 aoa