Naveco Power is New Brunswick’s first Community Economic Development Corporations (CEDC). We are becoming a community investment fund, focused on developing energy efficiency and renewable energy projects that provide social, environmental, and economic benefits.
Naveco Power is currently undergoing the process of obtaining a letter of non-objection from the Financial and Consumer Services Commission. Upon receiving this letter, Naveco Power will release an initial share offering to the New Brunswicker community for an initial raise of $1,000,000.
Funds raised from the initial offering will be allocated towards retrofitting a commercial building in downtown Fredericton. The retrofitting process will make this building more energy efficient and utilise renewable energy sources and preparing for rooftop solar.
About CEDC or Community Investment Fund
The purpose of the Community Economic Development Corporations (CEDC) is to help communities invest in themselves. The planned projects will create jobs, increase energy efficiency and renewable energy uptake in the province and help reduce our collective dependence on fossil fuels.
Those who invest in CEDC are eligible for the Small Business Investment Tax Credit, worth 50% of the investment for individuals and 15% of the investment for trusts and corporate entities, which can be used against the investor’s provincial income tax.
The investment in Naveco Inc. provides a positive return on investment. These returns come in a combination of annual dividends, a tax rebate, and a return of capital once buyout occurs:
- Naveco Inc. will receive an annual payment from the property owner, made possible because of the significant savings on power bills for said property owner. A small portion of this money is used to cover the operating expenses and ensure that Naveco Inc. has positive cash levels.
- The remaining money is then provided to investors as a bi-annual dividend.
- In addition to dividends, investors receive a 50% personal income tax rebate that can be used over a 10-year period.
- Finally, after a 4-year period, investors may have an opportunity to sell their shares back to Naveco Inc.
Property Owner Benefits
The Naveco Inc. leasing option provides property owners with many distinct benefits; lease rate, local contacts, and buyout opportunity:
- Property owners’ who choose Naveco Inc. are working with local contact. This allows for due diligence process to consider key numbers, client reputation, and local impact. This is the value of ‘knowing the building owner for the last few decades’ vs. being a file number.
As per the FCNB Community Economic Development Corporation regulation, investors must meet the following criteria
- Must be 19 years of age or older
- Must be a resident of New Brunswick
CORPORATIONS OR TRUST
- Must have a permanent establishment in New Brunswick