2024.05.06 CC Packet - Laserfiche WebLink

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DECOMMISSIONING CONSIDERATIONS We ask that the City of Hugo take note of 3 important considerations:1)a community solar garden is not a public nuisance,2)the resale and recycle value are expected to greatly offset the cost of decommissioning,and 3)the City of Hugo and taxpayers are not at risk. 1)Our modules do not contain hazardous materials and the Solar Garden is not connected to government utilities (water,sewer,etc.).The Solar Garden will be fenced and is sheltered from residences with existing screening.Additionally,almost all the land is permanent vegetation which improves erosion control,soil quality,and water quality.For these reasons,the Solar Garden,whether operational or non-operational,is not a public nuisance threat that would require government involvement in decommissioning or removal of the Solar Garden.Compare this to an abandoned home,barn,etc.that may regularly include hazardous materials and/or become a public nuisance. 2)Upon the end of the Solar Garden's life,the component parts may be resold and recycled. The aggregate value of the equipment is expected to greatly offset the cost of decommissioning and removal.Solar modules,for example,have power output warranties guaranteeing a minimum power output in Year 25 of at least 80%of Year 1.Since the value of solar panels is measured by their production of watts and the value of electricity,it is easy to calculate expected resale value.Even using extremely conservative assumptions,the value of the solar modules greatly offsets the cost of decommissioning.This does not factor in the recycle value of other raw materials like steel,copper,etc. 3)In the extremely unlikely,"worst-case"scenario where (1)the Solar Garden owner fails to decommission and neither our lender nor any power generation entities want the assets,and then (2)the landowner fails to decommission the Solar Garden (which the landowner would have the right to do under the Property lease),the City of Hugo would have its standard police powers to enforce decommissioning.If that process ultimately resulted in the City of Hugo gaining ownership of the property,the City of Hugo could sell the parcel which would absolutely exceed the decommissioning cost. DECOMMISSIONING FINANCIAL SURETIES Despite the considerations of 1)the Solar Garden is not a public nuisance,2)the resale and recycle value is expected to greatly offset the cost of decommissioning,and 3)City of Paynesville and taxpayers are not at risk,we are cognizant that City of Hugo will require the posting of a bond,letter of credit,or the establishment of an escrow account as a condition of issuing EESolar 13,LLC a Conditional Use Permit.Of course,City of Paynesville would be the beneficiary of any required security. We are offering a $35,000 bond for a decommissioning financial surety. This financial surety provides an extra layer of security that the Solar Garden site will be returned to the appropriate condition at the end of the Solar Garden's useful life or earlier, should the Solar Garden cease operations for a twelve-month period.City of Hugo will be the