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HomeMy WebLinkAbout2.d. Industrial Development Update4ROSEMOUNTEXECUTIVE SUMMARY CITY COUNCIL City Council Work Session: March 10, 2010 DISCUSSION The Mayor was approached by LS Power who expressed interest in siting a power plant on the east side of Rosemount, potentially on land owned by Flint Hills Resources. They are attracted to Rosemount due to the presence of high voltage transmission lines and also would benefit from the Met Council overflow pipe which brings treated effluent from the Empire sewage plant. They would use the effluent for cooling rather than needing to drill a well or use City water. This is the third power plant that has approached the City. Several Council members are aware that Great River Energy (GRE) owns154.53acres, east of Hwy 52, between County Road 42 and 140`h Street. In 2003 the City Council approved a resolution supporting a tax exemption for capital equipment for a GRE peaking plant. Support was predicated on successful negotiation of a host agreement with the City. Legislation was introduced and passed at that time. It is expected that any power plant siting within the community would require a host agreement and would also require a property tax exemption. The LS Power plant would be a natural gas -fired electric generating facility with fuel oil backup. It would be a combined cycle and /or use peaking technology. It is estimated that the plant would provide between 600 -800 megawatts and would represent a capital investment of $500 million. Construction would be over a 2 year period and would employ many construction workers. Further it is expected that operation of the plant would result in 25 skilled worker jobs. Originally, the plant was proposed in Chisago County. (see sunriseriverenergy.com) A host agreement was negotiated which was estimated to provide approximately $2.4 million to the area between property taxes (estimated at $1.6 million) and payment in lieu of personal property taxes($600,000) to various AGENDA SECTION: AGENDA ITEM: Industrial Development Update Discussion PREPARED BY: Kim Lindquist, Community Development AGENDA NO. Z, Director , ATTACHMENTS: LS Power info dated February 2010, Sunrise River Energy Station from website, March 20, 2003 memo from J Verbrugge to City Council, March 25, APPROVED BY: 2003 memo from J Verbrugge to R Lancaster, GRE, Staff memo, Resolution and minutes from April 3, 2003, Overhead transmission line map DW RECOMMENDED ACTION: Discussion Item DISCUSSION The Mayor was approached by LS Power who expressed interest in siting a power plant on the east side of Rosemount, potentially on land owned by Flint Hills Resources. They are attracted to Rosemount due to the presence of high voltage transmission lines and also would benefit from the Met Council overflow pipe which brings treated effluent from the Empire sewage plant. They would use the effluent for cooling rather than needing to drill a well or use City water. This is the third power plant that has approached the City. Several Council members are aware that Great River Energy (GRE) owns154.53acres, east of Hwy 52, between County Road 42 and 140`h Street. In 2003 the City Council approved a resolution supporting a tax exemption for capital equipment for a GRE peaking plant. Support was predicated on successful negotiation of a host agreement with the City. Legislation was introduced and passed at that time. It is expected that any power plant siting within the community would require a host agreement and would also require a property tax exemption. The LS Power plant would be a natural gas -fired electric generating facility with fuel oil backup. It would be a combined cycle and /or use peaking technology. It is estimated that the plant would provide between 600 -800 megawatts and would represent a capital investment of $500 million. Construction would be over a 2 year period and would employ many construction workers. Further it is expected that operation of the plant would result in 25 skilled worker jobs. Originally, the plant was proposed in Chisago County. (see sunriseriverenergy.com) A host agreement was negotiated which was estimated to provide approximately $2.4 million to the area between property taxes (estimated at $1.6 million) and payment in lieu of personal property taxes($600,000) to various taxing jurisdictions. The affected school district and township approved the host agreement however the County Board voted 3 -2 against the agreement. With that vote, LS Power has begun looking at alternate locations for another plant. In the last several years the City has worked to confine certain types of industrial development into specific areas of the community. In 2006 a Heavy Industrial zoning district was created for several existing uses. Areas were zoned that permitted some expansion but the general footprint of the heavy industrial area did not expand. Similarly, the remaining industrial areas continued their General Industrial zoning with regulations modified so there were higher exterior materials standards, limitations on outside storage and some uses were removed from the permitted and conditional uses. One of the goals of these changes was to protect the future development potential of currently undeveloped, farmland. The Council, Planning Commission and staff wanted to ensure that more heavy industrial uses were buffered from potential future residential and commercial development and that existing uses did not potentially distract from the future development potential of adjoining properties. There are really two issues before the Council for discussion; one relating to the specifics of siting a power plant; the other relating to creation of the vision for the eastside industrial area. It may be appropriate to have a power plant locate within the heavy or general industrial areas of the city so long as it is determined that it will not adversely affect the future growth of the community and tax base. Location, aesthetics and of course the details of the host agreement are all issues that should be vetted before the council can make a determination of the benefits and costs of the siting decision. Other issues include the future use of the Great River Energy property and if the Council is willing to allow a second power plant into the community. It appears that the City does not have land use authority over siting of a power plant; however, plant representatives have consistently indicated they want local support. Representatives from LS Power have indicated that they understand the details of any siting need to be worked out with the City. At the present time they have had only preliminary conversations with land owners in the area. However, they would like some indication as to whether the City would consider allowing location of a plant within the east side of the community. There are a lot of company resources that would go into a siting decision and if the Council is not interested at this time they would like to know. RECOMMENDATION Information Item Only Sunrise River Energy Station Project Information Sunrise River Energy, LLC, part of the LS Power Group, is in the process of evaluating an up to 780 megawatt natural gas -fired electric generating facility to be located in Lent Township, Chisago County, Minnesota known as the Sunrise River Energy Station (Project). The Project is being considered to produce electricity during periods of intermediate and peak demand and will complement intermittent resources (e.g. wind power). Development Agreement Background The utility industry is the only industry in Minnesota subject to a personal property tax. This is a remnant of regulation in the utility industry and, since 1994, all electric generation facilities that have been constructed have received an exemption from the personal property tax. Similarly, the 2009 Legislature voted to grant the Project a personal property tax exemption. The Legislature imposed certain conditions as part of the personal property tax exemption including the need for approval of a Development Agreement with the township and county. Project Design Sunrise River Energy continues to work closely with representatives of the county, township and local community to establish a framework for the scope and design of the Project. Below is an explanation of the decisions and commitments that Sunrise River Energy has made to date. The company looks forward to continuing a dialogue with the community as development of the Project continues. 1. No groundwater will be used for generation purposes. No groundwater will be appropriated for generation purposes. Further, no groundwater wells will be drilled into the Mt. Simon - Hinckley or any other aquifer to support the Project, except to provide groundwater for drinking, restrooms, showers, cleaning, HVAC systems, fire suppression, irrigation of landscaping, and other building and grounds operations and maintenance purposes. The use of treated effluent will reduce the environmental impact of the effluent that would otherwise be discharged and conserve natural resources through the recycling of water. 2. There will be no wastewater discharge from the Project. This will likely require the installation of a zero liquid discharge system, which will result in the reduction of pollutants to the tributaries of the St. Croix National Scenic Riverway and a reduction of phosphorus loading in Lake Pepin, for which it is impaired. 3. No new high - voltage transmissions lines will be constructed in Chisago County beyond the transmission line to connect the Proiect to the neighboring substation. Sunrise River Energy will work with the Midwest Independent System Operator (MISO) to ensure the Project is constructed without and new routes or corridors for future electric transmission lines in Chisago County. Page 1 of 3 October 19, 2009 Sunrise River Energy Station Project Information 4. The Project will use natural gas, the cleanest of all fossil fuels, as its primary fuel source. Minnesota has brutal winters — and there is the potential that natural gas, the proposed plant's primary fuel source, could be unexpectedly cut off to assure availability of natural gas for home heating purposes. To be able to meet its operating commitments and assure system reliability, the Project must have a back -up fuel source in the event that natural gas is not available. Ultra - low sulfur distillate fuel oil is a safe, cost - effective and environmentally responsible choice. Sunrise River Energy has agreed to limit this type of back -up operation to no more than 500 hours in any year with unloading facilities designed for only two trucks per hour. 5. The Project will pay millions of dollars annually to local taxins districts and orianizations. The Project is estimated to cost approximately $500 million, resulting in an estimated $1.6 million in real property taxes annually. In addition, the Project will make an annual payment in lieu of personal property taxes to the county, township and school district of $600,000 and the following additional contributions for a total of approximately $2.4 million per year: • $100,000 annually to a Chisago County Environmental Improvement Fund, • $100,000 annually to a North Branch School Partners Fund, and • $25,000 annually to a Lent Township Operations Fund. Working closely with the Chisago County auditor, Sunrise River Energy has estimated potential property tax reductions for a typical homeowner in Lent Township ($150,000 home) of — approximately $190 per year associated with these payments. The portion of the total payments for the Chisago County tax district (excluding Lent Township and North Branch Schools) will also be substantial — up to $1 million per year, or approximately 3% of the county's projected $31 million 2009 levy. 6. Sunrise River Enerev will participate in and coordinate with a local Advisory Council. Sunrise River Energy, Lent Township and the County will form an Advisory Council made up on nine members to provide a forum for review of and comment on matters relating to the development and operation of the Project, including permit applications filed by Sunrise River Energy and the implementation of the Landscaping and Drainage Plan. The Advisory Council will meet at least six times each year during the development and construction period and at least once per year thereafter. Next steps The Lent Township Board of Supervisors unanimously approved the Development and Host Fee Agreements at its meeting on December 15, 2009. Sunrise River Energy looks forward to answering additional questions that the community may have about the Project. With the execution of the Development Agreement by the township and county, Sunrise River Energy will have certainty that the Project will be economically viable and can enter the regulatory process. This means that additional aspects of the Project, namely its environmental impacts, can be fully vetted. Major permits and approvals that need to be secured for the Project include the following: Page 2 of 3 December 21, 2009 Sunrise River Energy Station Project Information • MN Public Utilities Commission • Site Permit • Certificate of Need • Environmental Review • MN Pollution Control Agency • Air Quality • Federal Energy Regulatory Commission • Exempt Wholesale Generator Status and Approval of Market -Based Rates • MISO • Electrical Interconnection Agreement • Lent Township • Building Permits There will be substantial opportunity for public input and comment before receipt of these permits and approvals. 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I �l 3 0 o� W 'i m 1 ■ ' N C m C 1 � O N � 0 GC W 1 � O N � 0 GC N CA ru CD f- ro .L- a� 3 ru E .0 • • • • A 0 > O (n M C n O .0 Ln O O Q V Cl =3 C a.., fu O Q V O � O al (n C _0 -0 •� O = a cn �� C � 0 O Ln C V N O L O (D U) C- L O U V • • 0 W 01 i m .. E L 0) Q .4-) Ln = L U') -0 4--) X Q C U) o ru •� N a > V 4-) — O (o C L a fu V U 'E x o 0 o _ � o �= L � O L O (u z a N CA ru CD f- ro .L- a� 3 ru E .0 • • • • A 0 > O (n M C n O .0 Ln O O Q V Cl =3 C a.., fu O Q V O � O al (n C _0 -0 •� O = a cn �� C � 0 O Ln C V N O L O (D U) C- L O U V • • 0 W 01 i m 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 W V ■ O L L 0 0 j O f 7ffi-� � IN 01 W �0 t-- MEMORANDUM TO: Mayor and Council members FROM: Jamie Verbrugge, City Administrator DATE: March 20, 2003 RE: KEY MESSAGES — Great River Energy Great River Energy is proposing to build a 250 -600 MW combined -cycle power plant in east Rosemount, north of County Road 42 and east of Highway 52. The plant will likely use clean burning natural gas as the primary fuel, with fuel oil likely as a back -up fuel. Below are some suggested key messages for the City Council to deliver when fielding questions from residents, businesses and the media. MESSAGES • Great River Energy has approached the City and County for support. • Sen. Knutson has authored a bill (SF 715) to grant GRE an exemption on personal property tax. • With or without the exemption, Great River Energy WILL pay property taxes on Real Property (land and building). • GRE is hosting a public information meeting on March 27 at 6:30 p.m. at City Hall. Preview information is available on the City's website — www.ci.rosemount.mn.us • The City Council has yet to vote on whether or not to support the project. The Council will consider the item on April 3 at their regularly scheduled Council meeting. • The County Board has yet to vote on whether or not to support the project. The County Board has scheduled the item for consideration on April 8. • City staff is researching potential community impacts —positive and negative — and will present this information to the City Council. • Discussion of the City Council's action will be held in a public meeting. SUPPORTING STATEMENTS • The City does not have authority to grant or deny the development proposal. GRE must receive permits from the Public Utilities Commission and the MN Pollution Control Agency before commencing construction and operation. • According to GRE, the personal property tax exemption has been granted by the Legislature to a number of proposed power plant developers in the past decade. The City Council does not have a role in the policy decision regarding the exemption, other than indicating support or non - support. • Current estimates for the amount of property taxes to be paid annually to the City exceed $300,000. • This proposal and request for support has come in very late in the legislative process. Staff is still researching potential impacts and may not have answers to these issues for some time. Staff and Council are committed to preserving the well -being of the community while working cooperatively with the State and County to meet local and regional power generating needs. DATE: MARCH 25, 2003 TO: RICK LANCASTER, Vice President Great River Energy FROM: JAMIE VERBRUGGE, City Administrator City of Rosemount SUBJECT: HOST AGREEMENT The City of Rosemount is currently evaluating potential impacts to our community as a result of the Great River Energy (GRE) proposal to build a combined -cycle natural gas burning power plant in the city. The City of Rosemount appreciates the interest that GRE has demonstrated in the community and is pleased that GRE will consider negotiating a host agreement with the City that addresses community concerns. Below are a number of items that our staff has identified as being desirable to include in any agreement into which the City and GRE may enter. Development Fees — It is our understanding that the permitting process through the Minnesota Environmental Quality Board preempts local planning and zoning discretion. Rosemount wishes to stipulate through the host agreement that GRE will pay fees and charges consistent with the standard land use and project approval processes in place at the time development proceeds. Costs of Development — The presence of a facility such as that being proposed by GRE is most likely going to demand a level of sewer and water service greater than the existing capacity of the community. The agreement should stipulate that GRE will pay the full cost to construct supporting infrastructure services. For example, an early indication of the amount of water usage for this plant suggest that four to five new wells may be required to accommodate need. In addition, the construction of a water interconnect of approximately 6 to 7 miles would be required to facilitate service from any proposed wells to the proposed facility site. As with all other developments, these improvements would be constructed by the City and charged to the developer. Fire Sae — The Rosemount Fire Marshal indicates that a facility of this type would require a special third party review from an outside agency to evaluate the fire protection, fire suppression and code compliance. The City requests that GRE agrees to reimburse the City for the costs to retain a Fire Protection Engineer to perform this review. Emergency Response Plan — The Rosemount Police Chief has recommended that GRE reimburse the City for the expense of retaining an emergency plan specialist to review and revise the City's emergency operations plan to specifically address hazardous materials, emergency situations, and safety/security issues related to the fact that power plants may be attractive targets of potential terrorist activity. Emergency Response Reimbursement — The City wishes to stipulate that GRE will reimburse the City for expenses related to fire suppression, emergency events or other public safety responses that require significant resources. Host Fee — It is our understanding that GRE is seeking an exemption from the State of Minnesota on the personal property tax associated with a facility of this type. It is further our understanding that GRE intends to pay real property tax. The presence of a power plant in the community has potential impacts that are difficult to ascertain at this time. The City feels strongly that the presence of a power plant in our community provides a benefit that extends much beyond the boundaries of our community. The City of Rosemount wishes to stipulate an annual host fee as part of a host agreement with GRE. The purpose of the host fee is to offset potential community impacts. The Dakota County Assessor has provided preliminary estimates of the personal property/machinery taxes (in 2003 dollars), and has run various permutations of the tax reduction based on varying levels of exemption. It is our understanding that GRE will be seeking a full exemption (100 %) from the personal property tax. Again, it is our further understanding that GRE is expecting a 60% tax exemption with or without the legislative approval as a result of the statutory efficiency rating deduction of 5% for every percentage point above 35% (in this case, a targeted efficiency of 47 %). In essence then, GRE has asked the City to support an exemption of 40% because the 60% exemption can be attained without legislative intervention. The City of Rosemount wishes to stipulate that a host fee be established equal to the City's portion of the 60% exemption that is received from the State of Minnesota; in essence, the exemption from personal property tax to which the City has no input. Based on the Dakota County Assessor's analysis, in 2003 that amount would equal $884,603. Ideally, the annual host fee would increase at 3% annually, or at the same rate as the City's general levy, whichever is less. The City proposes to mitigate community impacts using the annual host fee to service the debt on projects related to the public safety, basic services and infrastructure necessary to host this type of facility. An example of the types of projects that will be prioritized for debt service supplementing: • Construction of fire station #2 -- $1 million Construction of water tower #4 -- $1.5 million Contribution to City's share of the CSAH 42/US 52 interchange -- 45% of County's share of $15 million project cost (in 2003 dollars) Contribution to construction of the storm water trunk line extending to the Mississippi River -- $17 million (estimated total project cost) In addition to long -term capital infrastructure needs, the City may also allocate resources from the annual fee for the following purposes: • Green space /open space preservation • Community beautification/recreation • Economic Development STAFF RECOMMENDATION: APPROVE RESOLUTION OF SUPPORT BASIS OF RECOMMENDATION: • Environmental concerns are paramount. However, the regulatory permitting process for this type of facility is extensive and thorough. Furthermore, the City staff will be deeply involved in the environmental review process to assure that community impacts are being addressed. • The State of Minnesota may supercede local zoning for the purpose of electric utilities. However, the proposed location is compatible in terms of currently guided land use, as well as compatibility to adjacent or nearby commercial industrial operations. • The type of facility being proposed is not intended to be operated every hour or every day. It is an intermediate power plant that is intended to supplement capacity and accommodate peak usages. Furthermore, this type of facility is among the least impacting from an environmental perspective. • The real property tax benefit to the City of Rosemount is substantial. It is unlikely that our best efforts at economic development in the near term would produce such a high value commercial user. • The developer is committed to working with the City and will formalize the relationship in a Host Agreement. CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2003 - 37 A RESOLUTION RELATING TO GREAT RIVER ENERGY; SUPPORTING SENATE FILE 715 AND HOUSE FILE 1438 GRANTING A PERSONAL PROPERTY TAX EXEMPTION TO GREAT RIVER ENERGY FOR CONSTRUCTION AND OPERATION OF A NATURAL GAS INTERMEDIATE POWER PLANT IN THE CITY OF ROSEMOUNT. WHEREAS, Great River Energy, a not - for - profit generation and transmission member cooperative that includes Dakota Electric Association, has proposed construction of a 250 -600 megawatt combined -cycle power plant primarily fueled by natural gas in the City of Rosemount, east of U.S. Highway 52 and north of County Road 42, and WHEREAS, Great River Energy has approached the City of Rosemount for support of legislation that would grant a personal property tax exemption similar to legislative exemptions granted seventeen times since 1994, and WHEREAS, Great River Energy will not be exempt from real property taxes assessed on the land and building, and WHEREAS, construction of electric generating power plants is exempted from local zoning and land use planning controls by the State of Minnesota, thereby limiting control and influence by the City of Rosemount in the site selection, approval, and development processes, and WHEREAS, the proposed location of the power plant is in an area that is guided for industrial land uses, represents a compatible use to adjacent or nearby existing commercial industrial business operations, and would not be compromised from a land use perspective through a regulatory permitting process that supercedes local authority, and WHEREAS, Great River Energy must go through an extensive regulatory review by the Public Utilities Commission, Environmental Quality Board, and the Minnesota Pollution Control Agency before receiving the necessary permits to begin construction, and WHEREAS, Great River Energy has indicated a willingness to enter into a Host Agreement with the City of Rosemount that will address issues of significance and concern to the residents and businesses of Rosemount including, but not limited to, agreement by Great River Energy to accept responsibility for the cost of all public improvements, public utilities, and public services directly impacted by construction and ongoing operation of the proposed power plant, NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Rosemount supports Senate File 715 and House File 1438 granting a personal property tax exemption to Great River Energy for construction of a natural gas intermediate power plant in the City of Rosemount. RESOLUTION 2003 -37 BE IT FURTHER RESOLVED, that the City Council of the City of Rosemount reserves the right to withdraw support for the legislation if a Host Agreement is not approved by April 30, 2003, or if the City Council determines that Great River Energy has not demonstrated substantial, satisfactory progress toward completion of a Host Agreement. BE IT FURTHER RESOLVED, that by indicating support of the proposed Great River Energy combined -cycle natural gas power plant the City Council does not tacitly or implicitly support any other proposal for an electric generating power plant, either by Great River Energy or another prospective developer. ADOPTED this 3rd day of April, 2003, by the City Council of the City of ATTEST: Linda tV, H. Droste, Mayor CERTIFICATION I hereby certify that the foregoing is a true and correct copy of a resolution presented to and adopted by the City Council of Rosemount at a duly authorized meeting thereof, held on the 3rd day of April, 2003, as disclosed by the records of said City in my possession. (SEAL) Linda Jentink, Rosemount City Clerk Motion by: Riley Second by: DeBettignies Voted in favor: Droste, Riley, DeBettignies, Shoe - Corrigan. Voted against: Strayton . Member absent: 2 ROSEMOUNT CITY PROCEEDINGS REGULAR MEETING APRIL 3, 2003 Concept Residential Planned Unit Development — Centex Homes Community Development Director Parsons presented the Planned Unit Development Concept Plan for property owned by Crai; Minea and Patricia Kavorius and developed by Steve Ach of Centex Homes. The location is south of 135`x' Street and west of Biscarie Avenue. Parsons noted that there are restraints, a pipeline easement, collector streets, ponding areas, park open space, and a railroad line. This zoning is guided for Urban Residential which allows for four different unit densities. The housing mix would be 65% single family and 35% for multiple family. This is exactly the housing mix preferred. Conditions were added by staff as follows: 1) The alignment of Connemara Trail impacts other properties beyond the west edge. Sonic flexibility may exist; however, the full impact will have to be verified, and the result may impact the number of dwelling units. As well, Connemara Trail will have to be constructed to a 40 mile per hour design speed. 2) Bacardi Avenue along the western edge might be severely restricted because of the convergence of many pipelines at the northwest corner of Bacardi Avenue and 135'x' Street West. 3) No variances to right -of -way or public / private street standards are recommended. 4) Pipeline easement restriction may also prohibit the driveway encroachment of the southerly most Carriage Townhomes. 5) The Fire Code will require turn- arounds or looped connections at any shared driveway exceeding 150 feet. 6) The Park and Recreation Commission will evaluate the park, trails and connections and forward its recommendation to the City Council separately. 7) Common parking spaces should be provided at all the attached housing areas. 8) Sidewalks i Trails are required oil both sides of the collector streets. 9) The concept must be consistent with the Comprehensive Plan policies for the Urban Residential land use designation. For example, the average net density caiuiot exceed 5.8 dwelling units per acre without an amendment to the Comprehensive Plan. 10) Completion of the appropriate environmental review process as required by the Environment Quality Board ( in this case, an Environmental Assessment Worksheet — EAW.) l 1) Concept approval does not guarantee densities or numbers of dwelling units or lots. Council proceeded to discuss and add three more conditions: 12) The land designated for higher density housing Nwill have to be rezoned. The 3 -4 unit buildings will have to be rezoned to R -2, Moderate Density Residential, and the 8 -10 unit buildings will have to be rezoned to R -3, Medium Density Residential. 13) No single - family lots narrower than 80 feet will be created except where clustering may preserve natural features or where the lot is deep enough to meet the minimum lot area in the R -1 residential district. No single - family lots shall be narrower than 70 feet. 14) The plan shall use creative methods to give sensitive, protective treatment to slopes, wetlands and wooded areas, for example, in the northwest comer of the site. 15) The plan shall have extensive landscaping, buffering and screening along the railroad tracks and along Connemara Trail. MOTION by Shoe - Corrigan to ADOPT A RESOLUTION APPROVING THE CONCEPT FOR THE MINER PROPERTY WITH CONDITIONS by staff and including three additional conditions by City Council. Second by Riley. Ayes: Shoe - Corrigan, Droste, Riley, Strayton, DeBettignies. Nays: Notre. Motioned carried. Consider Resolution of Support — Great River Energy Exemption City Administrator VerbrU'Ue gave a background of the Great River Energy seeking support for legislation granting a personal property tax exemption on a clean - burning natural gas intermediate power plant that is proposed to be built in east Rosemount. A public informational 5 ROSEMOUNT CITY PROCEEDINGS REGULAR MEETING APRIL 3, 2003 meeting was held and 35 interested residents voiced concern about the density of industrial facilities in that area. No proposed power plant has proceeded without the property tax exemption since 1994. City Staff identified potential impacts relating to public safety, transportation, and infrastructure, and use of the City's water system, storm water system and police and fire safety service. Rosemount would benefit from a host agreement for providing benefit to the greater community. Verbn►gge noted that Senator David Knutson has Senate File 715 and Representative Dennis Ozment leas House File 43£ before the legislature. Mr. Lancaster, representing Great River Energy, explained the permitting process, the plant operations, and fuel sources. Fuel oil may be piped into the plant or it may need to be trucked in which would regUire about 50 trick loads to fill their holding tank per day on a peak energy day. Terry Flower, 13586 Fischer Avenue, noted that Flint Hills Resources is the twelfth largest refinery in the United States. Flower was active with Dakota County Citizens for a Healthy Environment and Metropolitan Council. Flower reported that lie needs to power wash the exterior of his home every year now due to the industrial air pollutants. Flower asked City Council to vote no for this tax exemption for Great River Energy because of the negative impact it will have on Rosemount and neighboring cotnrnunities. Frank Knoll, 4342 145`h Street, said he would like to see the site moved further east because of the four families in the area. Greg Fox, 15391 Einery Avenue, noted that there are a lot of industrial businesses in that area now and the power plant proposal needs more time for consideration. Joe Jubert, from Great River Energy, said he could provide a list of plants with their size and location for review. Discussion ensued. MOTION by Riley to approve A RESOLUTION SUPPORTING SENATE FILE 715 AND COMPANION HOUSE LEGISLATION GRANTING A PERSONAL PROPERTY TAX EXEMPTION TO GREAT RIVER ENERGY FOR THE CONSTRUCTION OF A COMBINED CYCLE NATC?RAL GAS INTERMEDIATE POWER PLANT IN THE CITY OF ROSEMOUNT, CONTINGENT UPON EXECUTION OF A HOST AGREEMENT WITH GREAT RIVER ENERGY. Second by DeBettignies. DeBettignies asked to append the motion with reference to House File 438 for the companion House Legislation. The motion maker, Riley, agreed. The motion was amended to read: MOTION by Riley to approve A RESOLUTION SUPPORTING SENATE FILE 715 AND HOUSE FILE 438 GRANTING A PERSONAL PROPERTY TAX EXEMPTION TO GREAT RIVER ENERGY FOR THE CONSTRUCTION OF A COMBINED CYCLE NATURAL GAS INTERMEDIATE POWER PLANT IN THE CITY OF ROSEMOUNT, CONTINGENT UPON EXECUTION OF A HOST AGREEMETN WITH GREAT RIVER ENERGY. Second by DeBettignies. Ayes: Droste, Riley, DeBettignies, Shoe- Con-igan. Nays: StraNIon. Motion carried. 6 1 ROSEMOUNT CITY PROCEEDINGS REGULAR MEETING APRIL 3, 2003 Announcements Mavor Droste reviewed the up coming meetings. There will be an informational meeting on April 9'h at 6:00 p.m. for the Chippendale Avenue and CR 42 Improvements. City Council is holding a Goal Setting Workshop on April 12, 8 a.m. to noon. Mayor Droste adjourned the regular meeting at 10:40 p.m. Respectfully submitted, Linda Jentink, City Clerk Recording Secretary The City Council Agenda Packet is Clerk's File 2003 -13. M H Z O w OO N d 0 Z W 0 a O N a a N N N LO • �1® `1 l` �� I