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RESOLUTION AUTHORIZING THE NEGOTIATION OF DEVELOPMENT AND LEASE AGREEMENTS WITH EDEN RENEWABLES FOR THE CONSTRUCTION AND MANAGEMENT OF THE HAYFIELD SOLAR ENERGY PROJECT.
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CITY PROPOSAL:
WHEREAS, The City of Duluth in 2024 requested proposals from solar development firms to assess select City properties for their potential to host maximum ten megawatt solar photovoltaic facilities and selected Eden Renewables to assess the properties; and
WHEREAS, Eden Renewables conducted the site assessment and recommended that the City further explore a solar photovoltaic project on a remote City-owned hayfield north of Hawk Ridge in eastern Duluth; and
WHEREAS, the hayfield site is zoned P-1 but has never been designated as protected parkland or improved for park use and was excluded from the Lester-Amity-Hawk Ridge Natural Area provisionally approved in Council Resolution 25-0494R; and
WHEREAS, The Department of Property, Parks, and Libraries entered a Professional Services Agreement with Eden Renewables that authorized Eden to submit a proposed solar photovoltaic project at the hayfield site to Minnesota Power for approval to proceed under Minnesota Power’s distributed solar resources program; and
WHEREAS, if the hayfield became a part of Minnesota Power’s distributed solar resources program, the City of Duluth would be paid a negotiated lease fee and receive proceeds from the solar energy production tax mandated by Minnesota Statutes § 272.0295, of which 20 percent would go to the City and 80 percent would go to St. Louis County; and
WHEREAS, the City Council must approve associated development and lease agreements with Eden Renewables before the project may proceed to construction.
THEREFORE, BE IT RESOLVED, That the proper city officials are hereby authorized to negotiate development and lease agreements with Eden Renewables for the installation and management of the hayfield solar energy project.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes the proper city officials to preliminarily negotiate development and lease agreements with Eden Renewables for the construction and management of a photovoltaic solar energy project located on a remote City-owned hayfield north of Hawk Ridge in eastern Duluth. The staff-negotiated agreements would have to be returned to City Council for approval before they could go into effect.
The hayfield site was selected based on an assessment of several City properties commissioned by the City of Duluth and performed by Eden Renewables. All other candidate City sites were found to be unsuitable to host a solar energy project of this scale.
The hayfield site is zoned P-1 but has never been designated as protected parkland or improved for park use and was excluded from the Lester-Amity-Hawk Ridge Natural Area provisionally approved by Council Resolution 25-0494R.
If Council were to authorize development and operation of a solar energy project at the hayfield, it is anticipated that the City of Duluth would receive lease and solar energy production tax payments totaling approximately $1.6 million over 25 years.