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Home My WebLink About#05 - CEF Solar CUP1 STAFF REPORT DATE: 3/6/2024 MOTION TO: City Council FROM: Sophia Jensen, City Planner AGENDA ITEM: Conditional Use Permit Extension Request – CEF Solar Farm BACKGROUND: The City Council adopted Resolution 2023-021 approving the solar farm located at 10755 50th Street North on April 4th, 2023. The ordinance requires substantial construction within 12 months of the date on which the conditional use permit was granted. Otherwise, the council, after receiving recommendation from the planning commission, may extend the permit for such additional period, as it deems appropriate. The current conditional use permit deadline is April 4th, 2024. The developer submitted a 3 month extension request to the City on February 8th 2024. As outlined in the extension request letter, the applicant had delays with closing on the project which caused them to get a late start on the required conditional use permit conditions. They are making progress on the conditions but will require additional time to achieve the substantial construction requirement. ISSUE BEFORE THE CITY COUNCIL The City Council is being asked to make a determination on the extension for the conditional use permit deadline to July 4th 2024? PLANNING COMMISSION The Planning Commission reviewed this request at their February 26th 2024 meeting. The Commission voted to recommend approval of the extension (Vote 5-0). FISCAL IMPACT None. OPTIONS 1) Approve the conditional use permit extension deadline to July 4th 2024 2) Deny the extension request. RECOMMENDATION: As part of the consent agenda Staff is recommending the City Council approve the request to extend the Conditional Use Permit Deadline. If removed from the consent agenda Staff recommends the following motion: “Move to approve Resolution 2024-026 approving an extension of the conditional use permit deadline for the CEF Solar Farm project to July 4th 2024.” 2 ATTACHMENTS: 1. Draft Resolution 2024-026 2. Original Approval Resolution 2023-021 3. CEF Solar Extension Letter Request CITY OF LAKE ELMO WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. 2024-026 A RESOLUTION APPROVING AN EXTENSION OF THE CONDITIONAL USE PERMIT FOR A SOLAR FARM AT 10755 50TH STREET NORTH WHEREAS, the City of Lake Elmo is a municipal corporation organized and existing under the laws of the State of Minnesota; and WHEREAS, CEF Lake Elmo Community Solar, LLC (the “Applicant”), submitted an application to the City of Lake Elmo (the “City”) for a solar farm located at 10755 50th Street North, a copy of which is on file in the City of Lake Elmo Community Development Department; and WHEREAS, on April 4th 2023, the Lake Elmo City Council adopted Resolution 2023- 021 approving the conditional use permit; and WHEREAS, City Code also requires substantial completion of the project within twelve months of approval to remain valid; and WHEREAS, the Applicant has submitted a request for an extension to the conditional use permit deadline to allow for additional time to address remaining conditions of the conditional use permit; NOW, THEREFORE, BE IT RESOLVED THAT the City Council does hereby approve an extension to the deadline for recording the conditional use permit deadline to July 4th 2024 Passed and duly adopted this 6th day of March 2024, by the City Council of the City of Lake Elmo, Minnesota. ______________________________ Charles Cadenhead, Mayor ATTEST: ______________________________ Julie Johnson, City Clerk 310 E 38th Street St #109, Minneapolis, MN 55409 | 612.568.2334 | www.cooperativeenergyfutures.com City of Lake Elmo February 8, 2024 3880 Laverne Avenue North Lake Elmo, Minnesota 55042 CEF Lake Elmo Community Solar, LLC 310 East 38th Street Suite 109 Minneapolis, Minnesota 55409 Extension Request for Conditional Use Permit 2023-021 Project Address: 10957 50th Street North, Lake Elmo Project Description: Community Solar Garden Planning Commission and City Council: CEF Lake Elmo Community Solar, LLC (CEF Lake Elmo) is owned by Cooperative Energy Futures. Cooperative Energy Futures is a member-owned community solar cooperative that develops community solar projects to bring energy bill savings and wealth-building opportunities to local energy consumers in the community. We are requesting a 3-month extension to our Conditional Use Permit 2023-021. Below is an explanation of the chronology of events that has led us to submit this extension request. Please also be aware that we are working as hard as we can to still meet the April 4th deadline for substantial construction on this project. Background Information: In 2021, Cooperative Energy Futures engaged One Energy Renewables through a Membership Interest Purchase Agreement (MIPA) to develop the CEF Lake Elmo Community Solar Garden prior to construction. Cooperative Energy Futures would then purchase the project, build the project, and own it for the life of the project for the benefit of our member-owners. When One Energy Renewables was unable to get an approved Conditional Use Permit with the City of Lake Elmo for CEF Lake Elmo Community Solar, LLC after several iterations, Cooperative Energy Futures decided to take over the efforts to address City Council concerns through collaboration rather than pursue a legal path for resolution. Cooperative Energy Futures went to great lengths to understand the concerns of the council and incorporated significant changes to the landscaping plan to satisfy their concerns regarding the garden’s impact on the local area. CEF Lake Elmo Community Solar was approved for a Conditional Use Permit per Resolution 2023-021 on April 4th, 2023. Though CEF took on this work to secure CUP approval, One Energy still owned the project. Legal and administrative work for One Energy to fulfill all their other obligations and responsibilities per the MIPA took many months to complete. We were not able to close on the 310 E 38th Street St #109, Minneapolis, MN 55409 | 612.568.2334 | www.cooperativeenergyfutures.com purchase of the project, transferring ownership of CEF Lake Elmo Community Solar, LLC to Cooperative Energy Futures, until November 15, 2023. This extended delay for us to assume ownership impeded our ability to mobilize towards construction. However, since November 15th, we have made substantial construction. On November 20, 2023 we engaged Braun Intertec to begin work on the Stormwater Management Plan and Valley Branch Water District permit. They have been able to get all the field work done and draft a SWPPP that they are now finalizing. They are on the verge of submitting for the VBWD permit. November 21, 2023 we issued a Request for Proposal to 10 interested General Contractors. Responses were due December 22, 2023. After thoroughly vetting the candidates, on January 23rd, we awarded the project to Apadana Solar and are currently in contract negotiations. Apadana Solar has built several of our operating solar gardens, is currently building one on the Community Center in Eden Prairie and will be building a large parking ramp canopy solar installation at Allina Health in Minneapolis this year. Cooperative Energy Futures and Apadana have a proven track record of building successful community solar gardens. Current Progress: We have satisfied the following elements of the Conditional Use Permit conditions: • Revised landscape plan which shows that tree plantings will be 9 feet at the time of planting • Approved Interconnection Agreement with Xcel • Confirmed collaboration with the Fire Department on gate design and key lockbox • All other necessary permits will be in place prior to applying for building permit. • A Letter of Credit for decommissioning will be provided prior to applying for building permit We are actively working on the following elements of the Conditional Use Permit Conditions and Building Permit Requirements: • Stormwater Management: o Braun Intertec, as mentioned, is in the final stages of the SWPPP and VBWD application o WSE Massey surveyors are working on legal descriptions for the Stormwater Maintenance and Easement Agreement with City of Lake Elmo • Braun Intertec will soon be performing the required Geotech studies needed by RP Construction Services to produce the technical foundation plans for the racking o These plans will be required for both the building permit and to satisfy the CUP condition for a statement from a qualified engineer regarding the design of the racking and support However, current timelines on some of these outstanding steps make an April 4th substantial construction deadline challenging, including: • That all Geotech analyses must be completed before RP Construction services can complete a technical foundation plan 310 E 38th Street St #109, Minneapolis, MN 55409 | 612.568.2334 | www.cooperativeenergyfutures.com • That the technical foundation plan must be completed before we can submit a building permit • That the City Attorney will need time to draft the Stormwater Maintenance and Easement Agreement. • That building permit review, which may take three or more weeks, must be completed and a permit issued before we are allowed to begin work on site. Conclusion: We are making good progress on all the conditions and building permit requirements, but we were hindered by getting a late start that was not in our control. Had legal and administrative functions not taken 7 months for us to close on this project with One Energy, we would have easily met our April 4th deadline and would likely be well underway with construction by now. We are very excited to get this project underway and completed so we can provide residents of Lake Elmo with clean, affordable energy and membership in the cooperative. Please consider our request for a 3-month extension on our Conditional Use Permit. Sincerely, Dan Grantier Solar Development Manager Cooperative Energy Futures 509.304.4658 dan@cooperativeenergyfutures.com