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RESOLUTION AUTHORIZING 40-YEAR AGREEMENT TO LEASE LAND ADJACENT TO 3525 RILEY ROAD FOR $4,760 PER YEAR TO RENDFIELD LAND COMPANY, A SUBSIDIARY OF ALLETE, INC., FOR PURPOSES OF SOLAR ENERGY PRODUCTION.
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CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to execute a lease and solar easement agreement with RendField Land Company, subsidiary of ALLETE, Inc., substantially in the form of the attached Exhibit 1.
RESOLVED FURTHER, that monies received under this agreement will be deposited into fund 257-015-4623. ______________________________.
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Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes the City to lease 9.52 acres of land adjacent to 3525 Riley Road to RendField Land Company, subsidiary of ALLETE Inc., for purposes of solar energy production. ALLETE has received approval for a set of solar economic recovery projects from the Minnesota Public Utilities Commission, including a 1.6 Megawatt solar array in Duluth, to be located on City-owned land formerly used as maintenance property. The project has both environmental and regional economic benefits, as it will use locally-produced solar panels, encourage participation of a diverse set of suppliers, and create local jobs at a time when economic recovery is needed in our region. The solar development in our City would provide approximately 2,600 Megawatt hours of locally-produced, renewable energy which our residents desire, as seen in the Duluth Citizens Climate Action Plan. This renewable energy is enough to power nearly 300 homes. There are local tax benefits of the facility location which include a production tax, which is $1.20/MWh - split 80% St. Louis County/20% City. The land lease agreement would provide annual payments to the City that would be funneled into the City’s Energy Fund, to contribute to future energy efficiency and renewable projects.