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07-02-2018 Council Work Session Packet
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07-02-2018 Council Work Session Packet
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10/30/2021 1:05:48 PM
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City Council
Council Document Type
Council Packet
Meeting Date
07/02/2018
Council Meeting Type
Work Session Regular
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3 <br /> <br />Currently, Lino Lakes Community Members, businesses, and institutions can seek out a <br />developer and subscribe to a Community Solar Garden. In other words, they already benefit from <br />those communities that have allowed the construction of community solar gardens. They must <br />seek out the provider that serves their individual market. <br /> <br />• How does it work? Xcel receives power from a number of sources. The individual <br />subscribes to the developer’s solar array and pays Xcel for the energy usage at a <br />subsidized rate. Xcel pays the developer for the energy. This process is shown in Figure <br />1. <br /> <br />The above is a general description of the financial model of the process, however, staff <br />notes that the details of each business model may vary slightly depending on the <br />business. <br /> <br />The applicant has provided an exhibit showing the cost savings for a potential institutional user. <br />Staff has also included an informational handout that shows the potential savings for an <br />individual user. <br /> <br />• How is it financed? In terms of raising capital to finance projects, CSGs are the same as <br />any other business. They obtain financing from investors and lending institutions who <br />review the proforma and operations of the business prior to lending or investing. <br /> <br />• How is the City financially impacted? One MW solar gardens do not have an impact on <br />the city finances. While 5 MW gardens are taxed at a commercial rate, the applicant has <br />clarified that in fact 1 MW gardens are taxed at an agricultural rate. <br /> <br />Role of the City <br /> <br />As with all businesses, the financial model is a business decision, not a City policy-making <br />decision. It is the role of the City to evaluate the projects in terms of how the use impacts the <br />general health, safety, and welfare of the community. Specifically, Council should consider <br />whether or not the use is compatible with the desired land uses and growth patterns of the City. <br /> <br />Typical land use considerations include: <br />• Consistency with the Comprehensive Plan <br />• Appropriate location <br />• Structure sizes <br />• Lot sizes and setbacks <br />• Nuisance conditions such as glare, noise, dust, smoke, etc. <br />• Environmental impacts such as stormwater runoff or pollution <br />• Mitigation of visual impacts <br />• Duration of use (CSGs require a minimum 25-year commitment) <br /> <br />Unless the City has a financial stake in the project, the financial model is strictly a business <br />decision. The City has no financial stake in the Community Solar Garden land use decision.
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