Best Project Finance Lawyers in Dearborn

1. About Project Finance Law in Dearborn, United States

Project finance in Dearborn typically involves structuring large capital projects so that debt is secured against project assets and cash flows rather than the general credit of sponsors. An SPV or special purpose vehicle is often created to own the project, contract risk is allocated through EPC and O&M agreements, and lenders rely on project performance metrics rather than all sponsor assets. In Dearborn and Michigan broadly, lawyers coordinate corporate, finance, regulatory, and environmental considerations to move a project from concept to completion.

Michigan's regulatory environment affects project finance in Dearborn through state agencies, city ordinances, and federal requirements. Attorneys help with due diligence, contract drafting, intercreditor arrangements, and compliance with both state and federal rules. This work is essential for energy projects, manufacturing expansions, and infrastructure development that rely on long-term financing structures.

"The Securities Act of 1933 requires that securities offered or sold to the public be registered with the Commission, subject to exemptions."

2. Why You May Need a Lawyer

Here are concrete, real-world scenarios in Dearborn where a Project Finance attorney is typically necessary.

• You are structuring a solar or energy storage project in Dearborn and need an SPV, debt facilities, and a power purchase agreement negotiated with a utility or captive offtaker. An attorney drafts the project documents, coordinates lenders, and ensures perfect security interests across multiple jurisdictions.
• You want tax equity or other specialized financing for a renewable or industrial project. You need to design intercreditor and waterfall structures to align investors, lenders, and sponsors while complying with federal and state tax rules.
• Environmental due diligence and permitting are central to your timeline for a Dearborn project. You require counsel to navigate MEPA/NREPA requirements and obtain EGLE approvals, air and water permits, and site clearance.
• Regulatory approvals and interagency coordination are needed for an energy project. A lawyer handles MPSC involvement, interconnection agreements, and rate-related filings that affect project economics.
• Cross-border or multi-jurisdiction financing is involved in your deal. You need to address foreign investment rules, currency hedging, and compliance with the Federal Securities laws when issuing securities or debt.
• Contract risk and project governance require robust drafting of EPC, O&M, and loan agreements, along with intercreditor arrangements and sponsor support commitments to protect lenders and equity investors.

3. Local Laws Overview

The following named laws, regulations, and statutes commonly influence project finance activity in Dearborn, Michigan. They shape how you structure deals, obtain approvals, and manage ongoing compliance.

Michigan Uniform Commercial Code, Article 9 (Secured Transactions)

UCC Article 9 governs secured financing and perfection of security interests in project assets. In Michigan, it is implemented through the Michigan Uniform Commercial Code and is essential for lenders and borrowers to secure debt against project collateral. Practical implications include filing UCC-1 financing statements and priority rules among creditors.

Natural Resources and Environmental Protection Act (NREPA)

NREPA, also known as the Natural Resources and Environmental Protection Act, governs environmental permitting and compliance for Michigan projects. It covers air, water, waste, and remediation requirements that can affect project timelines and costs. Counsel helps ensure environmental due diligence aligns with MEPA obligations and local permit requirements.

Public Utilities Act and Michigan Public Service Commission Oversight

The Public Utilities Act and the regulatory framework administered by the Michigan Public Service Commission (MPSC) oversee energy and utility related projects. This affects interconnection, rate cases, and approvals for electric and gas infrastructure, often shaping project economics and risk allocation among sponsors, lenders, and offtakers.

City of Dearborn Zoning and Land Use Ordinances

Local land use, zoning, and building permit requirements in Dearborn can impact the siting and construction of projects. Obtaining local approvals is a prerequisite for project finance closings and can affect scheduling and budget. Compliance with city codes is coordinated with state and federal requirements for a smooth closing.

"Natural Resources and Environmental Protection Act governs environmental permitting and compliance for projects in Michigan."

"Permitting and land use approvals in Dearborn are governed by city ordinances and state law."

4. Frequently Asked Questions

These questions cover basic to advanced topics and are written in plain language for Dearborn residents and stakeholders.

What is project finance in simple terms?

Project finance uses a dedicated SPV to own the assets and debt, with lenders secured by project cash flows and assets rather than the sponsors' balance sheets.

How does an SPV work in Dearborn projects?

The SPV isolates project risk, holds contracts, borrows funds, and repays debt from project revenue streams under the supervision of counsel, lenders, and lenders’ agents.

What is a PPA and why is it important?

A PPA is a power purchase agreement that defines energy sales terms, price, and payment schedules. It drives project revenue and lenders’ comfort with cash flows.

Do I need a Dearborn attorney or can I use a national firm?

A Dearborn attorney with local knowledge will handle city permitting, local contracts, and Michigan regulatory nuances that national firms may overlook.

How long does a typical project finance deal take in Dearborn?

Loan term sheets and due diligence commonly take 6-12 weeks, with negotiations extending to 3-6 months to reach a closing depending on complexity.

What is intercreditor agreement in a project finance deal?

It sets priorities among lenders if the project underperforms or defaults. It governs who gets paid first and how collateral is shared.

What permits may be required for an industrial project in Dearborn?

Environmental, building, and land use permits from EGLE and the City of Dearborn are typical, plus any interconnection approvals for energy projects.

Is secure financing by UCC filings required?

Yes, lenders often require perfected security interests in project assets under UCC Article 9 to protect their collateral position.

Should I consider tax incentives for a Dearborn project?

Tax incentives can improve project economics but require careful structuring of equity, depreciation, and credits under federal and state rules.

Do I need to file securities with the SEC for debt financing?

Debt financing may require securities law compliance if offered to investors as securities or if a private placement triggers regulatory exemptions.

What happens if the project faces delays or cost overruns?

Contracts, change orders, and budget controls via the EPC and O&M agreements help manage risk and protect lenders and sponsors.

Can a Dearborn lawyer help with cross-border financing?

Yes, an attorney can handle foreign investment considerations, currency risk, and applicable U.S. securities rules for international lenders or sponsors.

5. Additional Resources

Use these official resources to understand local and national requirements related to project finance in Dearborn, Michigan.

• City of Dearborn - Official Website - Local permitting, zoning and land use information relevant to project siting and approvals. https://www.cityofdearborn.org
• Michigan Department of Environment, Great Lakes, and Energy (EGLE) - Environmental permitting, compliance guidance, and regulatory requirements for projects in Michigan. https://www.michigan.gov/egle
• U.S. Securities and Exchange Commission (SEC) - Federal securities laws, disclosure and filing obligations for project finance transactions. https://www.sec.gov

6. Next Steps

1. Define your project scope and financing plan. Create a high-level business case, projected cash flows, and a preliminary capital structure. Timeline: 1-2 weeks.
2. Identify a local project finance attorney in Dearborn. Look for lawyers with Michigan corporate, energy, and regulatory experience. Timeline: 1-2 weeks.
3. Prepare a document packet for due diligence. Include concept contracts, site information, permits, and initial financial projections. Timeline: 2-4 weeks.
4. Draft a term sheet with lenders and sponsors. Outline debt size, tenors, security package, and key covenants. Timeline: 2-6 weeks.
5. Evaluate regulatory requirements and permits. Coordinate with EGLE and Dearborn city authorities early to avoid delays. Timeline: 4-8 weeks.
6. Negotiate and finalize key agreements. PPA/EPC/O&M, intercreditor, and security documents should be aligned. Timeline: 6-12 weeks.
7. Close the transaction and begin project execution. Ensure all conditions precedent are satisfied and funds are released. Timeline: 2-6 months from start to close.