While Annandale is continuing to appeal a state permit for the site, construction of a 6-megawatt, 70-acre solar facility near city limits is scheduled to begin in April.
Representatives from Enel Green Power North America, the Massachusetts-based company that will own and operate the site now that the project has been purchased from developer Geronimo Energy, attended the Monday, Jan. 4, Annandale City Council meeting to share an update on plans for the site.
"With Annandale, we have 16 projects where we’ll be starting construction this quarter and going into the beginning of next quarter," said Nick Lincon, senior director of business development for Enel. "The Annandale project specifically, the plan would be to start construction in April. It would be five to six months of construction until we’re gone, during which time 70-90 employees will be working within the community. Most of those contractors will be locally hired individuals."
Local workers
Councilor David Burd questioned how many local contractors would actually be hired, saying it seemed more likely that for efficiency’s sake Enel would have an experienced crew ready to come through and construct the site. Two other sites in Wright County are planned near Buffalo and Montrose.
Lincon said there are certain restrictions about what contractors can be hired because of union regulations and general practices.
"Long story short, some people will be brought in from not directly here just because of the amount of people that are here vs. how many we need to hire with a certain skill set," he said.
While the project creates some well-documented concerns for the city, such as how its placement might affect anticipated growth, Burd said the benefits to the city are harder to see, and those touted by project proponents haven’t always been what they seem.
"Seventy to 90 jobs sounds great, but if I’m in charge of this and it’s three months out I’ve probably got my crew already that has experience and has done it elsewhere. I don’t see coming in here in February saying, ‘We’re going to hire. Who is qualified?’" Burd said. "This is what happened before. I’m not blaming you, but we were led to believe certain numbers and when we asked more questions and really delved into it it was like, ‘Boy, there’s not a lot of benefit to Annandale.’"
Lincon said that even if outside contractors are brought in to do the work, they likely will be spending time and money in Annandale.
"Folks living, eating and sleeping in the local community – that is going to be the most near-term, direct benefit," he said.
Long term, aside from tax payments to the township, Enel environmental manager Hans van Lingen said that vegetation maintenance at the site would almost certainly require local help.
"That will have to be sourced locally. That can’t be done by bringing contractors in from outside," he said.
What about the appeal?
The 100-megawatt, $250 million Aurora Solar Project was granted a site permit by the Minnesota Public Utilities Commission on May 28 of last year, giving the green light to what will become the largest solar project in Minnesota.
Commissioners debated whether or not to approve the Annandale site – which is bordered by 70th Street and Klever Avenue just south of Minnesota Pioneer Park – at length due to the city’s concerns, but ultimately gave their approval. When the city asked for reconsideration, the commission confirmed its site approval last August. At that point, the city lodged an appeal with the Minnesota Court of Appeals. A decision in the matter is still pending.
City attorney Sue Kadlec also attended last week’s council meeting to brief the council on the appeal process. During that update the meeting was closed to the public for nearly half an hour to discuss litigation matters.
After the meeting Kadlec explained that the process still has a long way to go. The city’s brief was filed on Dec. 28, and the PUC and applicant have 33 days to file their responses. The city then has another 10 days to reply, and the matter is then prepared for oral arguments, which can take two or three months to schedule. Following oral arguments a decision is ruling is usually made within 60 to 90 days.
"The Court of Appeals may affirm the decision of the PUC, remand the case for further proceedings by the PUC, or it may reverse or modify the decision of the PUC," said Kadlec. "The city’s position remains that the PUC did not draw adequate distinctions between the concerns raised by the Wyoming, Zumbrota and Pipestone sites (where similar investment in public infrastructure and growth concerns were cited as reasons for denying the solar permit) and the Annandale site."
While there had previously been mention that the city could possibility of seek a stay of construction before a ruling is made by the court of appeals, Kadlec said that would likely require a substantial bond from the city.
If the court rules in the city’s favor, however, there is a possibility that work at the Annandale site could be stopped.
"If Enel proceeds prior to the Court of Appeals decision, they bear that risk," said Kadlec. "They will not be able to argue that they have incurred construction costs as a basis to win the appeal."
During last week’s meeting Lincon acknowledged that the legal process has not been resolved, but said Enel wants to be a good neighbor.
"We want to work with the city to find a means to come to a solution that mutually benefits the city as well as the project," he told the council. "As of right now we’re planning construction in April. We understand that the city has filed a deal with the PUC. We’re not a party to that. We do take it seriously and we understand that you’re a community we’re seeking to be neighbors with. We want what is built and how the project is operated to be in both of our interests."
Mitigation efforts
To demonstrate that commitment, Lincon said that Enel has been working with Kadlec and City Administrator Kelly Hinnenkamp to mitigate concerns about the project as much as possible.
He showed council members an updated design of the site, which will use fewer solar panels than originally planned, but those panels will be more efficient and produce higher-wattage to generate the same amount of electricity.
He showed a mock-up view of the site from the west after spruce trees or other vegetation is planted around the west, north and east sides and grows to a certain height to demonstrate that concerns about aesthetics will largely be met.
Mayor Dwight "Dewey" Gunnarson, after asking whether a similar model was available for the east side (there wasn’t), agreed that the company had done what it could in the visual area, but implied that the city’s primary concerns lay elsewhere.
"It certainly looks like you’ve addressed the aesthetic value," he said. "I believe we have a few other concerns with this project."
Hinnenkamp said the primary issue was the project location.
"It is in our orderly annexation area, and not just the orderly annexation area but the next stage of our growth within our orderly annexation area," she said.
Hinnenkamp said that not only will the property in question be unavailable for development, but the project could also hinder development in the surrounding areas as well. The city’s long-term transportation plan shows an important east-west road passing directly through the proposed site.
"Whenever you take a big chunk out of your development area now it’s something you always need to go around," she said. "When you’re bringing in streets and utilities that’s a significant cost. You try to do it in orderly fashion to minimize that cost and make it a feasible project. So it could be a barrier for growth."
Lincon said Enel coexists with many different utilities and makes a point of working with local utilities, land owners and communities to the extent possible to reduce negative impacts.
"It’s something we always seek to do, which is why we’ve been meeting with Kelly and Sue and why we’re here today," he said.
About Enel
The Aurora project was developed by Geronimo Energy and purchased by Enel, meaning that Geronimo’s role in the project is essentially complete. Enel will proceed with construction and operation.
Enel Green Power North America is a subsidiary of Enel Green Power, a global renewable power company with nearly 750 operational plants in 17 countries. It has an installed capacity of more than 10,000 MW, including 474 MW of solar projects.
In North America the company has hydropower, wind, geothermal and solar projects in 21 states and two Canadian provinces. Enel has worked in Minnesota for 15 years and is owner and operator of the 200-MW Prairie Rose wind farm and the Minnesota Wind project in southwestern Minnesota.