One week after Minnesota Public Utilities Commissioners spent considerable time deciding to include an Annandale location in a site permit for the statewide $250-million Aurora Solar Project, Annandale City Council members and city staff were contemplating whether the city should appeal that decision.
The city’s main concern is that the 70-acre, 6-megawatt solar farm location on Klever Avenue is within the city’s planned growth area, and the project includes a 20-year agreement for Aurora Distributed Solar to produce solar power for Xcel Energy.
While Corinna Township, which currently has jurisdiction over that parcel, had voiced a number of concerns over the project including lack of local control, low property taxes generated by the site, visual impacts to neighboring land owners and potential impact to land values, supervisor Dick Naaktgeboren said that the township has ultimately decided not to contest the PUC’s decision.
"We don’t gain or lose anything by this," he said. "Yes, it’s in the orderly annexation area. Yes, it would be helpful to the city of Annandale if this didn’t happen, but then again, how soon is something going to happen in this area? We have no idea. This is a 20-year deal, supposedly. In the big picture maybe the timing is perfect for (a developer) wanting to do something at that point. I don’t know if Annandale’s going to grow out that fast with development."
A request for the PUC to reconsider its decision would incur expense for legal counsel and for city or township staff time spent on it. The township has concluded the expense isn’t worth it. The city council may address the matter in a special meeting this week or in the near future.
Naaktgeboren said the site’s impact is essentially limited to two concerned property owners. Chip Purcell has a home nearby and had requested screening to reduce visual impacts that the company has decided are not necessary because the home is more than 350 feet from the project area, and Shawn Smith farms an adjacent plot of land that he eventually hopes to sell for development. The location of the solar site, Smith feels, would greatly reduce the value of his land.
"Down the road we’re going to see more of these. So is this the worst place to have one? Not necessarily," said Naaktgeboren. "You’ve got refuge land to the south, and there’s really nothing else around it. I’d rather have it there than a few other places."
City position
Council members heard an update on the situation on Monday, June 1, and City Administrator Kelly Hinnenkamp asked them to consider if they wanted to undertake an appeal process.
At the time it was unknown what position the township would take, but councilor David Burd said the appeal option should at least be on the table.
Mayor Dwight "Dewey" Gunnarson said that by the end of the 20 years there is a possibility the city could be expanding in that direction.
Hinnenkamp voiced a concern that because the company plans to buy the parcel rather than lease it like most of the 21 total sites around the state, there is the possibility that the land could be left unattended after the project’s life is complete. PUC commissioners had, during their deliberation, however, said that the decommissioning requirements included in the site permit were sufficient to address those concerns, and a PUC staff member Cezar Panait confirmed that there is no distinction made in the permit between purchased and leased sites.
The city was gathering additional information last week and a decision on an appeal is likely before the end of the month.
Solar surge
Solar has been a popular topic at city hall in recent weeks, not only in regard to the Aurora Solar Project but also through calls from other solar developers seeking land and area residents wondering about guidelines for placing solar panels on their properties.
As a result, Hinnenkamp informed council members that there are more solar issues cropping up on a regular basis.
"We are being inundated. We have a lot of land in town, just open 80-acre parcels with no housing or development. I bet I’ve had 10-15 calls in the last few weeks asking if the city is interesting in leasing land," Hinnenkamp told council members.
The council has already established the position that the city is not interested in leasing land for solar projects, but the other private property inquiries could eventually lead to applications for rezoning to allow the panels.
"We’re going to be calling a hearing to look at revising our ordinances to allow solar structures as accessory uses, but that’s totally different than these solar farms," said Hinnenkamp. "You’ve got the farms, and then you’ve got the people who just want to put them on their house, businesses or school. People are starting to put them on for a supplement to their electricity."
Regarding the solar farm proposals elsewhere around the area, Wright County is working on an ordinance governing solar development, and the city of Monticello is dealing with a request to build a large solar array on a former golf course. Additional Aurora Solar Project arrays are planned near Buffalo and Montrose, and Naaktgeboren said Wright-Hennepin Electric is looking to expand its Rockford campus solar farm to rural areas.
"If I had my druthers I’d rather not have it here, but then again, where’s it going to go? It’s going to go somewhere," said Naaktgeboren, referring to the state mandate that Xcel Energy acquire 1.5 percent of its power from alternative energy sources by 2017. "If you’re on Highway 12, Highway 55 or the corridor of I-94 right now, those big trunk lines with transformers here and there, those people are getting phone calls left and right. (Solar developers) are after land. I’m sure part of it is the tax credits available now."
Timing
The city will have 20 days from the time the PUC’s site permit ruling is posted (on or before June 28) to request a reconsideration.
If no appeal is made, the only additional step before construction proceeds on the Aurora Solar Project is that PUC staff members will review and approve final site plans for each of the 21 locations. It is possible that not all 21 locations will be used. A finalization of sites and that pre-construction approval is expected around August.
The matter will not come before the full commission again unless that is made necessary by an appeal.