HomeMy WebLinkAbout#06 - CEF Lawsuit Dismissal
DATE: June 6, 2023
CONSENT
TO: Mayor and City Council
FROM: Kristina Handt, City Administrator
AGENDA ITEM: Approve Stipulation for Settlement and Dismissal Agreement with CEF
BACKGROUND: In April 2022 the city council denied a conditional use permit (CUP) to CEF Lake Elmo Community Solar Garden. The applicant, One Energy Development, brought an action against the city in October 2022. In April 2023 after some revised landscaping plans, the city council approved a CUP for CEF.
ISSUE FOR DISCUSSION: Should Council approve the stipulation for settlement and dismissal agreement? PROPOSAL DETAILS/ANALYSIS: In order to have the case closed, the attorney representing the city is recommending approval of the attached stipulation for settlement and dismissal with prejudice agreement. Since the CUP has been approved there is no need to further litigate this issue.
FISCAL IMPACT: NA
OPTIONS: 1) Authorize the Mayor and Clerk to Execute the Stipulation for Settlement and Dismissal Agreement CEF Lake Elmo Community Solar
2) Amend and then Authorize the Mayor and Clerk to Execute the Stipulation for Settlement and Dismissal Agreement CEF Lake Elmo Community Solar 3) Do not approve the Settlement and Dismissal Agreement with CEF
RECOMMENDATION: If removed from the consent agenda:
Motion to authorize the Mayor and City Clerk to Execute the Stipulation for Settlement and Dismissal Agreement CEF Lake Elmo Community Solar ATTACHMENTS:
• Stipulation and Dismissal Agreement
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STATE OF MINNESOTA
COUNTY OF WASHINGTON
DISTRICT COURT
FIRST JUDICIAL DISTRICT
CEF Lake Elmo Community Solar, LLC, Plaintiff,
vs. City of Lake Elmo, Minnesota,
Defendant.
STIPULATION FOR SETTLEMENT AND DISMISSAL WITH PREJUDICE
This Stipulation for Settlement and Dismissal with Prejudice (“Stipulation”) is made as
of the 18th day of May, 2023, by and between CEF Lake Elmo Community Solar, LLC, a
Minnesota limited liability company (“Plaintiff”) and the City of Lake Elmo, a political
subdivision of the State of Minnesota (“Defendant”).
BACKGROUND
1. On or about September 8, 2021, Plaintiff applied to Defendant for a conditional use
permit to install and operate a 1-megawatt community solar garden facility to be located on
approximately 7 acres of land at 10755 50th Street North, Lake Elmo, Minnesota (“Project”).
2. On November 22, 2021, the Lake Elmo Planning Commission held a public hearing to
consider the application and recommended approval of the conditional use permit with
conditions.
3. On April 5, 2022, the Lake Elmo City Council, after a public hearing, voted to deny
Plaintiff’s application for a conditional use permit.
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4. On or about October 14, 2022, Plaintiff commenced the above-captioned action
(“Action”) by serving Defendant with a summons and complaint alleging, among other things,
that Defendant had wrongfully denied Plaintiff’s application for a conditional use permit and
seeking a judgment declaring that the conditional use permit had been wrongfully denied and
enjoining Defendant to issue the conditional use permit. Defendant answered denying
Plaintiff’s claims and asserting, among other things, that Defendant was not entitled to the
relief Plaintiff sought.
5. Plaintiff has not filed the Action with the district court.
6. The parties to the Action thereafter engaged in good faith settlement discussions, which
discussions resulted in revisions to Plaintiff’s application and proposed design for the Project.
After the parties’ extensive work, Plaintiff submitted a redesign for the Project. On April 4,
2023, the Lake Elmo City Council by resolution granted Plaintiff’s application for a
conditional use permit for the Project based on the Project redesign. The Resolution
Approving a Conditional Use Permit for the Construction and Operation of a Solar Farm on
the Property Located at 10755 50th Street North, numbered 2023-021, is attached hereto and
made a part hereof as Exhibit A.
AGREEMENT
NOW, in recognition of the foregoing background, which is incorporated by reference, the
parties to this Action hereby agree as follows:
1. Conditional Use Permit. Plaintiff is entitled to the conditional use
permit set forth in Lake Elmo City Council Resolution 2023-021 and attached hereto as Exhibit
A.
2. Dismissal. The Action is dismissed with prejudice.
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3. Mutual Release. The parties hereto acknowledge and agree that this
Stipulation is full settlement of this matter including all claims that were or could have been made
arising from or relating to this matter. Neither party admits any liability and each party is
responsible for its own fees and costs incurred in association with this matter, including without
limitation, expert, consultant, and attorney fees.
4. Representations. Each party acknowledges that each has read this Stipulation
and has consulted counsel before executing the same; each party has relied on its own judgment
and that of its counsel in executing the Stipulation and has not relied upon or been induced by
any representation, statement or act by any other party that is not referred to in this instrument;
each party has full authority to enter into the Stipulation which is in all respects complete and
final.
5. Entire Agreement. This Stipulation constitutes the entire agreement of the
parties as to the subject matter contained in the Stipulation.
6. Interpretation. This Stipulation has been reached through negotiations
between the parties. Neither party may assert that this Stipulation be construed against or in favor
of the drafter of the same. The parties have used their own judgment in entering into this
Stipulation.
7. Electronic Signatures and Counterparts. The parties agree that signatures
delivered by electronic means shall have the same force and effect as original signatures. The
Stipulation may be executed in one or more counterparts, each counterpart to be considered an
original portion of this Stipulation.
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CITY OF LAKE ELMO
By: _______________________ Charles Cadenhead Its: Mayor
Dated:_____________________
By: _______________________
Julie Johnson Its: City Clerk
Dated:_____________________
CEF LAKE ELMO COMMUNITY SOLAR, LLC
By: OneEnergy Development, LLC (its sole member)
By: ____________________ Travis Bryan
Its: Authorized Signatory
Dated:____________________
EXHIBIT A