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HomeMy WebLinkAbout7.a. Geronimo IUP Amendment to Change the Expiration Date EXECUTIVE SUMMARY City Council Regular Meeting: October 4, 2016 AGENDA ITEM: Geronimo IUP Amendment to Change the Expiration Date AGENDA SECTION: Public Hearing PREPARED BY: Anthony Nemcek, Planner AGENDA NO. 7.a. ATTACHMENTS: Site Location, Applicant’s Request, Interim Use Permit Conditions, Resolution APPROVED BY: ddj RECOMMENDED ACTION: Motion to adopt a resolution to amend Geronimo Energy’s Interim Use Permit to change the expiration date from 25 years from December 31, 2016 to 25 years from December 31, 2017 subject to the conditions listed in the Interim Use Permit. SUMMARY Applicant: Geronimo Energy Location: South of County Road 42, North of County Road 46 & East of Minnesota State Highway 52 Area in Acres: 450 Acres total/160 solar farm Comp. Guide Plan Design: AG - Agriculture Current Zoning: AG - Agriculture Geronimo Energy has requested an amendment to change the expiration date of the interim use permit for a portion of the Rosemount Community Solar Garden. The applicant wishes to extend the term of the IUP by one year for an upcoming “garden” due to delays in redrawing plans for the solar garden following regulatory changes that limit the size of community solar gardens. If approved, this amendment would change the expiration date of the IUP from “25 (twenty-five) years from the date of full commissioning of all solar gardens within the Project Area or December 31, 2016, whichever occurs first, to “the solar garden installed in 2016 has a 25 (twenty-five) year term to December 31, 2041 and the garden (s) installed in 2017 has a 25 (twenty-five) year term to December 31, 2042. Staff is recommending approval of this amendment. BACKGROUND In December, 2014, City Council approved an interim use permit for Geronimo Energy to develop the Rosemount Community Solar Garden. The solar garden was originally designed to produce up to 21MW of electricity on 160 acres. The IUP is currently in effect for 25 years from the date of full commissioning of all solar gardens within the project area or December 31, 2016, whichever occurs first. In 2015, the Minnesota Public Utilities Commission approved a settlement between Xcel Energy and several solar developers that limits the size of solar gardens to 5MW. Due to the new limitation, the plans for the Rosemount Community Solar Garden had to be reduced in size and output from 21MW on 160 acres to 5MW on 40 acres. The opportunity for a second project arose following the regulatory changes. This project, another 5MW, 40 acre solar garden, is targeting a construction start date in early 2017. The applicant is requesting this amendment to take advantage of the full 25 year contract term for Xcel Energy’s Solar Rewards Community program. 2 CONCLUSION & RECOMMENDATION Based on the information provided by the applicant and included in this report, staff is recommending approval of this amendment. All other conditions of the Interim Use Permit remain in place as they were approved in 2014. IUP Area From:Tena Monson To:Nemcek, Anthony Cc:Hans Abrahamsen; NPoteet@bherenewables.com Subject:IUP Extension Date:Thursday, August 18, 2016 2:38:51 PM Attachments:image001.png Anthony,   Rosemount Community Solar Gardens, LLC and the associated parcels, are requesting a 1 year extension of IUP 14-54.  Originally, the project was intended to be 21 MW, covering 160 acres of property, but changes on the energy regulatory front have limited Rosemount CSG to 5 MW covering approximately 40 acres. Rosemount CSG will begin construction this summer.   A separate project, Equuleus Community Solar Gardens, LLC, is targeting an early 2017 start of construction. Equuleus is a 5 MW, 40 acre project as well. Equuleus is a viable project and an opportunity that arose upon the regulatory changes. Given the timing of the regulatory change, we are requesting an extension to accommodate the proposed construction schedule and to help ensure the orderly development of solar in the City of Rosemount.   Copied on the email are the landowner (Hans and Phyllis Abrahamson) and Berkshire Hathaway Energy (Neal Poteet). They have given permission to request the extension.   The check for $250 will be sent this week.   Tena   Tena Monson (Formerly Rytel) Solar Development Manager 7650 Edinborough Way, Suite 725 Edina, MN 55435 Main: 952-988-9000 Direct: 952-641-4037 Geronimo Energy   Geronimo Energy Interim Use Permit Conditions For The Rosemount Community Solar Garden This Interim Use Permit (IUP) is valid only for the property legally described in Attachment A, herein after “the Project Area.” 1. City Council approval of the request to rezoning from AGP – Agricultural Preserve to AG – Agricultural. 2. The IUP will be in effect for 25 (twenty-five) years from the date of full commissioning of all solar gardens within the Project Area or December 31, 2016, whichever occurs first. 3. The operation of the community solar garden shall comply with all applicable zoning standards and the approved site plan attached as Exhibit B. 4. The project area shall be subject to all requirements under city code and policies related to such developments, improvements and requirements governing interim use permits in state law and the city code. 5. The project area shall conform with all requirements of the City Engineer detailed in the memo date November 25, 2014 (Exhibit C). 6. All site improvements shall be reviewed by the City Engineer for approval prior to completion in accordance with City standards including grading permits. 7. The IUP shall run with the land in the Project Area during the term of such permit. The permittee, or its successors or assigns, shall, by agreement, require each individual solar garden in the Project Area to comply with the conditions of the IUP. If an individual solar garden violates any condition of the IUP, the permitee, or its successors or assigns, shall be responsible for obtaining compliance. The City shall not terminate the IUP for the entire Project Area based on a violation by an individual solar garden, so long as the permittee, or its successors or assigns, is taking reasonable and necessary steps to achieve compliance. 8. The permittee, or its successors or assigns, will dedicate to the City up to 40’ of right-of-way for 1,250 lineal feet of the City’s proposed north/south collector road that will run parallel to the northeastern boundary of the Project Area should it be necessary to construct such collector road for development and access in the area, at no cost to the City. When the City ultimately constructs this north/south collector road, the permittee, or its successors or assigns, will pay the City’s costs incurred in connection with the construction of the 1,250 lineal foot portion of the north/south collector road adjoining the northeastern boundary of the Project Area, up to a maximum amount of $180 per lineal foot adjusted annually from the date of the IUP until the year in which the payment occurs using the change in the Engineering News-Record (ENR) Construction Costs Indices (CCI) for Minneapolis. This payment will be in lieu of a special assessment. 9. The permittee, or its successors or assigns, shall grant to the City, its agents, employees, officers and contractors, including agents, employees and contractors of any surety, an irrevocable license, in a form approved by the City Attorney, to enter the property to perform all work and inspections deemed appropriate by the City to enforce conditions or to perform work as a result of the permittee’s default. This license shall continue in effect until all conditions imposed by the City have been complied with. 10. The permittee, or its successors or assigns, will reimburse the City for any costs incurred as a result of enforcing the IUP following the violation of any condition of the permit. 11. The permittee, or its successors or assigns, shall hold the City harmless from all claims or causes of action that may result from the granting of the IUP. The permittee, or its successors or assigns, shall indemnify the City for all costs, damages or expenses, including but not limited to attorneys’ fees that the City may pay or incur in consequence of such claims. 12. The permittee, or its successors or assigns, shall conform with all requirements of all other applicable regulatory agencies including, but not limited to, Dakota County. All permits required by other applicable agencies must be obtained and copies submitted to the City. 13. The permittee, or its successors or assigns, shall furnish to the City copies of the certification(s) for the applicable component parts from Underwriters Laboratories, Inc., or other appropriate certification as determined by the city, prior to receiving a building permit. The city reserves the right to deny a building permit for proposed solar energy systems deemed to have inadequate certification. 14. Any solar energy system remaining nonfunctional or inoperative for a continuous period of at least one year shall be deemed abandoned and shall constitute a public nuisance. The owner shall remove the abandoned system at their expense after obtaining a demolition permit. Removal includes the entire structure including transmission equipment. 15. Submission of landscape security equal to 110% of the proposed landscaping in a form acceptable to the City Attorney prior to issuance of a building permit. 16. Obtain City staff approval of a revised site plan illustrating a minimum of four (4) parking stalls consistent with the City’s off-street parking standards and any additional revisions to the site plan made based upon permittee’s final technology and equipment selections prior to issuance of a building permit. Any technical revisions shall be in substantial compliance with the approved site plan attached as Exhibit B. 17. Ground or wall signs shall be approved through a separate administrative permit. 18. Obtain City staff approval of a revised lighting plan consistent with the exterior lighting standards prior to issuance of a building permit. 19. Obtain City staff approval of a revised trash enclosure plan consistent with Section 5-1-3 of the City Code prior to issuance of a building permit. 20. All power lines shall be placed underground within the interior of each parcel. 21. All solar energy projects shall comply with all applicable building, electrical and plumbing codes. 22. The Permittee shall submit a utility connection agreement with Xcel prior to issuance of a building permit. 23. The Permittee shall provide potable water and sanitary services for maintenance staff at the remote monitoring and maintenance sheds. 24. Following issuance of the first building permit and for the remaining term of the IUP, the permittee, or its successors or assigns, shall maintain and plow the access drive known as Donnelly Avenue from CSAH 46 to the Cummings parcel. 7699 Anagram Drive Eden Prairie, MN 55344 PHONE 952-937-5150 FAX 952-937-5822 TOLL FREE 1-888-937-5150 MEMORANDUM DATE: November 25, 2014 TO: Jason Lindahl, Planner CC: Kim Lindquist, Community Development Director Eric Zweber, Senior Planner Andrew Brotzler, Director of Public Works/City Engineer Dan Schultz, Parks and Recreation Director Christine Watson, Public Works Coordinator Amy Roudebush, Planning and Personnel Secretary FROM: Phil Olson, Assistant City Engineer RE: Rosemount Community Solar Gardens: Plan Review SUBMITTAL: Prepared by Westwood, the Rosemount Community Solar Project is dated September 29, 2014. Engineering review comments were generated from the following documents included in the submittal:  Site Plan (12 pages)  Title Survey Plan (3 sheets)  Tree Inventory  Description of Soils  Application for an Interim Use Permit and background information DEVELOPMENT FEES: 1. The City’s transportation plan shows six future minor collector roadways and two future major collector roadway adjacent to and/or through the property. A condition has been included to allow for the future collection of roadway costs and right-of-way related to development of the eastern N-S collector roadway. Collector roadways are currently estimated to be a cost of $180 per front foot and the required right-of-way is 40 feet in width. 2. A grading permit is required for the proposed mass grading below are the permit fees based on 38,200 CY of grading. o Permit Fees: $650.75 o Grading Bond/Letter of Credit:: 148 acres x $3000 = $444,000 3. The solar garden is proposed to be permitted by an interim use permit. Upon expiration of the interim use permit and the ultimate development of the site, development fees will be required based on the City’s current fee list at the time of development. Below is a listing of the fee rates based on the 2014 fee list. o Trunk Water Charges: $6500/acre o Water Access Charge: Based on water meter size o Trunk Sanitary Charges: $1075/acre o Sanitary Sewer Availability Charges: $2435 (MCES), $1200 (City) o Trunk Stormwater Charges: $6865/acre o Stormwater Connection Charges: $2270/acre o GIS Fees: $120/acre STORMWATER MANAGEMENT COMMENTS: 1. A stormwater management plan was submitted for review on November 24. The plan will be reviewed to ensure compliance with the City’s water quantity, quality, and infiltration requirements. 2. Several ponding areas are shown to extend across property lines. These low areas are required to be graded to provide additional ponding for the new impervious surface added with the project. 3. An erosion control plan is required to be submitted for review. The plan is required to comply with all city and NPDES standards. The plan should show proposed Best Management Practices (BMPs) including silt fences, inlet protection, construction entrances, temporary sediment basins, etc. 4. Ponds and wetlands are required to show the Surface Water Management Plan pond number, normal water level (NWL), high water level (HWL), and storage volumes. 5. Emergency overflow routes and directional flow arrows are required to be shown on the plan. 6. The NPDES permit is the responsibility of the owner/contractor. Documentation of permit acquisition shall be forwarded to the City prior to issuance of a building permit. GRADING COMMENTS: 4. Proposed contours are required to be shown on the grading plan for all grade changes. Additional contours should be shown near the proposed roadway and for the conveyance of drainage along the roadway. 5. Following mass grading, a certified grading plan is required to be submitted to show that the site has been graded as proposed. ROADWAY/ACCESS COMMENTS: 7. The typical section of the interior roads and access road to the north is required to be shown on the plan. 8. A driveway access is proposed to connect to the City’s existing driveway to the east side water tower. Should consideration be given to allow access to this driveway, it is recommended that a maintenance agreement between the City and developer be developed to address maintenance and extent of the access use. Below are some items that should be addressed in the maintenance agreement. . o Size of vehicles allowed and frequency of use o Snow plowing, damage to the pavement, and maintenance costs o The future relocation of the City driveway due to the future expansion of the Hwy 42/Hwy 55 interchange. Should you have any questions or comments regarding the items listed above, please contact me at 651-322-2015. CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2016- A RESOLUTION APPROVING AN AMENDMENT TO AN INTERIM USE PERMIT CHANGING THE EXPIRATION DATE WHEREAS, the City of Rosemount received a request from Geronimo Energy to amend an interim use permit to change the expiration date; and WHEREAS, on October 4th, 2016, the City Council of the City of Rosemount held a public hearing to review the IUP amendment request from Geronimo Energy to change the expiration date of the interim use permit; NOW, THEREFORE, BE IT RESOLVED, the Council of the City of Rosemount hereby approves the IUP amendment changing condition 2 to the solar garden installed in 2016 has a 25 (twenty-five) year term to December 31, 2041 and the garden (s) installed in 2017 has a 25 (twenty- five) year term to December 31, 2042, subject to the conditions listed in the 2014-2018 Interim Use Permit. ADOPTED this 4th day of October, 2016 by the City Council of the City of Rosemount. __________________________________________ William H. Droste, Mayor ATTEST: ___________________________________ Clarissa Hadler, City Clerk