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06.a Lubke CUP Distribution Solar Extension - PC Packet 1 | P a g e Date of Meeting: October 6, 2026 To: Chair Hogle and Planning Commission Members From: Greenlee Dahle, Consultant Planner T.J. Hofer, Consultant Planner Re: Extension for Multiple Conditional Use Permits for Distribution SES at 10929 Scandia Trail North Applicants: Patrick Dalseth, SV CSG Scandia, LLC Sean O’Connor, Gordian Energy Systems and DIVOCSG N LLC Zoning: AG-C, SM-O, SES-O Owners: Michael Lubke & Molly Minogue Future Land Use: Agricultural Core Location: PID: 1903220130001 10929 Scandia Trail North, Scandia, MN 55073 Review Deadline November 10, 2026 SUMMARY The City Council approved conditional use permits (CUP) to allow for multiple Distribution Solar Energy Systems (SES) on the same parcel located at 10929 Scandia Trail North in 2023. The CUP approval expires after one year if the use has not commenced on the site. The applicants requested to extend the CUPs approved with Resolution 10-17-23-03 and Resolution 10-17-23-05 in 2024. Both were approved administratively to be extended for an additional year to October 17, 2025, as both applicants had demonstrated a good faith attempt to complete or utilize the use permitted in the conditional permit by continuing to work through the design elements on the site that were required to be revised. The applicants requested another extension in October 2025, which was approved by Resolution 10-21-25-01 (Sunvest DSES) and Resolution 10-21-25-02 (Gordian Energy Systems). Additional extension requests require consideration by the Planning Commission and approval by the City Council. The applicants are requesting to extend the CUP approvals an additional six months, to April 21, 2027. 2 | P a g e REQUEST Unless the City Council specifically approves a different time when action is officially taken on the request, conditional use permits shall expire without further action by the Planning Commission or the City Council, unless the applicant commences the authorized use within one year of the date of the conditional use permit is issued; or unless before the expiration of the one year period the applicant shall apply for an extension thereof by completing and submitting a request for extension, including the renewal fee as set forth by City ordinance. The request for extension shall state facts showing a good faith attempt to complete or utilize the use permitted by the conditional permit. A request for an extension not exceeding one year shall be subject to the review and approval of the Zoning Administrator. Should a second extension of time or any extension of time longer than one year be requested by the applicant, it shall be presented to the Planning Commission for a recommendation and to the City Council for a decision. The applicant has met with city staff, Xcel Energy, and MnDOT numerous times and has made minor site plan adjustments throughout the last three years. Staff find that the past three years of meetings and plan changes show a good faith attempt to complete or utilize the use permitted by the conditional permit. Based on the construction season and winter limitations, staff believes it may be reasonable to grant another one year extension, even though a six month extension was requested. COMMISSION ACTION The Planning Commision can do one of the following: 1. Recommend approval, with or without conditions, of the attached resolution. 2. Recommend denial, with findings, of the attached resolution. RECOMMENDATION Staff recommend approval of the CUP extension request for up to one year, ending on October 17, 2027: Motion to recommend approval of Resolution 10-20-26-XX to approve an extension of the Conditional Use Permit to allow for a Distribution SES, as approved by Resolution 10-17-23-03. Motion to recommend approval of Resolution 10-20-26-YY to approve an extension of the Conditional Use Permit to allow for a Distribution SES, as approved by Resolution 10-17-23-05. 3 | P a g e Attachments A. Resolution 10-20-26-XX Approving an Extension to Resolution 10-17-23-03 B. Resolution 10-20-26-YY Approving an Extension to Resolution 10-17-23-05 C. Request - Sunvest D. Request - Gordian E. Resolution 10-17-23-03 Sunvest Conditional Use Permit F. Resolution 10-17-23-05 Gordian Conditional Use Permit CITY OF SCANDIA, MINNESOTA RESOLUTION NO. 10-20-26-__ APPROVING AN EXTENSION OF RESOLUTION 10-17-23-03 WHEREAS, on October 17, 2023, the Scandia City Council adopted Resolution 10-17- 23-03 for the development of a distribution solar energy system at 10929 Scandia Trail North; and WHEREAS, the property is legally described as follows: The West Half of the Northeast Quarter ( W 1/ 2 of NE 1/ 4) of Section Nineteen 19), Township Thirty- two ( 32), Range Twenty ( 20), Washington County, Minnesota. ; and, WHEREAS, in 2023, Patrick Dalseth, SV CSG Scandia, LLC (the “applicant” or the “operator”), on behalf of Michael Lubke & Molly Minogue (the “owners”), made an application for a Conditional Use Permit to allow for a Distribution Solar Energy System (SES); and WHEREAS, Scandia’s Unified Development Code Section [153.500.060 Subd. 1. (C) V.] provides that the applicant must commence the use or improvement within on year of the date on which a conditional use permit is issued. A request for an extension not exceeding one year may be approved by the Zoning Administrator. A second extension or a time longer than one year shall be presented to the Planning Commission for a recommendation and to the City Council for a decision; and, WHEREAS, the Zoning Administrator granted an extension for the conditional use permit approved with Resolution 10-17-23-03 on October 16, 2024, for one year; and, WHERAS, the applicant made a request on September 11, 2025, to extend Resolution 10- 17-23-03 for an additional year; and, WHEREAS, the City Council approved an extension for the conditional use permit approved with Resolution 10-17-23-03 on October 21, 2025, for one year; and WHEREAS, the applicant made a request on September 11, 2026, to extend Resolution 10-17-23-03 for an additional six months; and, WHEREAS, the City Council found that the construction season and winter restrictions within the six month request was potentially prohibitive to the development of the site; and, WHEREAS, the City Council found that the applicant showed a good faith attempt to complete the project through numerous meetings with city staff, Xcel, MnDOT, and various minor site plan amendments. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCANDIA, WASHINGTON COUNTY, MINNESOTA, that the Scandia City Council hereby approves an extension to the approval given with Resolution 10-17-23-03 for the development of a distribution solar energy system at 10929 Scandia Trail North, subject to the conditions established within said resolution, to expire on October 17, 2027. Whereupon, said Resolution is hereby declared adopted on this 20th day of October 2026. ____________________________ Steve Kronmiller, Mayor ATTEST: ____________________________ Kyle Morell, City Administrator CITY OF SCANDIA, MINNESOTA RESOLUTION NO. 10-20-26-__ APPROVING AN EXTENSION OF RESOLUTION 10-17-23-05 WHEREAS, on October 17, 2023, the Scandia City Council adopted Resolution 10-17- 23-05 for the development of a distribution solar energy system at 10929 Scandia Trail North; and WHEREAS, the property is legally described as follows: The West Half of the Northeast Quarter ( W 1/ 2 of NE 1/ 4) of Section Nineteen 19), Township Thirty- two ( 32), Range Twenty ( 20), Washington County, Minnesota. ; and, WHEREAS, in 2023, Sean O’Connor, Gordian Energy Systems and DIVOCSG N LLC (the “applicant” or the “operator”), on behalf of Michael Lubke & Molly Minogue (the “owners”), made an application for a Conditional Use Permit to allow for a Distribution Solar Energy System (SES); and WHEREAS, Scandia’s Unified Development Code Section [153.500.060 Subd. 1. (C) V.] provides that the applicant must commence the use or improvement within on year of the date on which a conditional use permit is issued. A request for an extension not exceeding one year may be approved by the Zoning Administrator. A second extension or a time longer than one year shall be presented to the Planning Commission for a recommendation and to the City Council for a decision; and, WHEREAS, the Zoning Administrator granted an extension for the conditional use permit approved with Resolution 10-17-23-05 on October 16, 2024, for one year; and, WHERAS, the applicant made a request on September 11, 2025, to extend Resolution 10- 17-23-03 for an additional year; and, WHEREAS, the City Council approved an extension for the conditional use permit approved with Resolution 10-17-23-05 on October 21, 2025, for one year; and WHEREAS, the applicant made a request on September 11, 2026, to extend Resolution 10-17-23-03 for an additional six months; and, WHEREAS, the City Council found that the construction season and winter restrictions within the six month request was potentially prohibitive to the development of the site; and, WHEREAS, the City Council found that the applicant showed a good faith attempt to complete the project through numerous meetings with city staff, Xcel, MnDOT, and various minor site plan amendments. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCANDIA, WASHINGTON COUNTY, MINNESOTA, that the Scandia City Council hereby approves an extension to the approval given with Resolution 10-17-23-05 for the development of a distribution solar energy system at 10929 Scandia Trail North, subject to the conditions established within said resolution, to expire on October 17, 2027. Whereupon, said Resolution is hereby declared adopted on this 20th day of October 2026. ____________________________ Steve Kronmiller, Mayor ATTEST: ____________________________ Kyle Morell, City Administrator Hello Mr. Morell and Mr. Hofer, Updating you on the SV CSG Scandia project on Mike Lubke’s project. Since early 2025 the project was required by Xcel Energy to obtain an oƯ-site easement for a guy-wire that would support a new Xcel Energy pole on the north side of Scandia Trail. Both SunVest and Mr. Lubke had been in contact with that landowner but in late 2025 we were not able to come to terms with the landowner. At that point we had to pivot to Xcel Energy requesting permission from MnDOT for a “push brace pole”, which was not a standard pole that MnDOT allowed. That initial request was submitted on Jan 7, 2026 The request for the push brace pole was denied by MnDOT in March 2026, so Xcel pivoted to using a larger-diameter pole, that still needed to be approved by MnDOT. The approval for the larger pole was ultimately approved by MnDOT early June 2026 (notice of approval was verbal from Xcel during a call) but by that time the buyer of our project, Green Street Power Partners (“GS”) had pulled out of transaction due to the lengthy delays. If you’ll recall, GS had planning on purchasing this project since 2024 and had participated (via Teams) in the sit-down meeting with the City of Scandia, Xcel Energy, Gordian Energy and SunVest to discuss the number of poles at the Point of Interconnection. Since that time SunVest has been engaging with other organizations to buy the project and move forward with construction. But in all instances, those organizations expressed concern over the upcoming Oct. 21st deadline to pull a building permit before the Conditional Use Permit expires. Due to all of these factors, most of which were outside of SunVest’s control, we are requesting the City of Scandia to consider granting one more extension for an additional 6 months to the CUP. Thank you for your consideration. Patrick Dalseth Hello Mr. Morell and Mr. Hofer, I am writing on behalf of Gordian Energy Systems to request an additional extension of the Conditional Use Permit for the DIVOCSG N solar project located on Mike Lubke's property in Scandia, Minnesota. This project previously received a Conditional Use Permit extension approved by the City of Scandia on October 21, 2025, extending the permit through October 21, 2026. Since issuance of the Conditional Use Permit, the project team has continued to advance development activities and work toward construction readiness. Significant efforts have been made to complete preliminary engineering, interconnection coordination, and project financing requirements. Unfortunately, several circumstances outside of the project team's control have delayed the commencement of construction. A significant source of delay has been the utility infrastructure required for the project's interconnection. On August 7, 2025, an Xcel Energy representative informed Gordian that the project would require a separate easement for a guywire associated with a new utility pole on the north side of Scandia Trail and separate easements would be required for each project. Following that determination, Gordian coordinated with Xcel Energy, surveyors, and the property owner to prepare and submit ALTA surveys, easement exhibits, deeds, and other documentation necessary to obtain the required utility easement. Despite these efforts, the required easement could not be successfully secured from the neighboring landowner. As a result, the project team worked with Xcel Energy to evaluate alternative utility pole configurations that could satisfy interconnection requirements without the need for the off-site easement. This redesign process required additional preliminary engineering efforts, permitting considerations, and utility coordination beyond the original project schedule. The need to pursue alternative pole solutions is reflected in the ongoing coordination and project discussions held throughout 2026. Beginning on January 16, 2026, Gordian Energy Systems initiated discussions with an Xcel Energy representative regarding alternative utility pole configurations after it became clear that the required easement could not be obtained from the neighboring property owner. On that same day, Gordian was informed that Xcel had submitted an application to MnDOT seeking approval for a push-brace pole configuration that could eliminate the need for the off-site easement. Xcel advised that the permit review process could take one to two months and that final approval could not be guaranteed. On March 9, 2026, after Gordian confirmed that the easement could not be obtained, Xcel advised that MnDOT had denied the push-brace pole permit request. As a result, the project team and Xcel shifted focus to finding a self-supporting pole alternative. Xcel further advised that the revised configuration could result in higher infrastructure costs than originally anticipated. Throughout the spring of 2026, Gordian maintained regular communication with Xcel regarding the revised pole solution. Follow-up requests were made on March 27, April 8, and April 27, 2026 seeking updates and guidance regarding the remaining steps necessary to advance the project. During this period, progress remained dependent upon the development and review of the updated interconnection path. In addition to direct correspondence, Gordian participated in recurring monthly coordination meetings with Xcel Energy throughout the development process to discuss project status and address interconnection-related items. The DIVO N utility pole remained a recurring topic of discussion, and Gordian regularly sought updates regarding pole design options, MnDOT coordination, anticipated costs, and next steps necessary to move the project forward. Meeting schedules and communication efforts were adjusted as needed to facilitate continued collaboration between all parties. While progress was being made toward a viable solution, several elements of the revised design and associated costs required additional review and remained under evaluation for an extended period due to the complexity of the redesign effort. On May 20, 2026, approximately four months after the alternative utility pole review process began, Xcel advised that MnDOT approvals had been obtained and that a self-supporting pole would be ordered. Although this represented a significant milestone toward a utility-approved solution, certain preliminary engineering and cost details were still under development. Gordian subsequently requested additional design and cost information on May 21, May 28, and June 9, 2026 so that the revised utility infrastructure could be incorporated into ongoing project planning and preliminary engineering activities. On June 1, 2026, Xcel advised that the revised self-supporting pole design would eliminate the down-guy wire associated with the original easement requirement. However, cost information associated with the revised design remained unavailable at that time. Gordian continued coordinating with Xcel throughout the summer and followed up again on July 27, 2026 regarding project status. Xcel subsequently provided a design sketch of the revised pole configuration but advised that detailed cost information was still being developed. As a result, key utility infrastructure information necessary for final project planning remained outstanding while the revised solution continued moving through the utility review process. These delays resulted from the unsuccessful easement effort, MnDOT review and denial of the initial push-brace pole concept, the subsequent redesign of the utility interconnection infrastructure, and the time required to develop and review an alternative self-supporting pole configuration. Collectively, these circumstances were outside of Gordian Energy Systems' control and affected the project's ability to advance toward construction despite the continued efforts of both Gordian and utility stakeholders to resolve the issues. Due to these factors, most of which were outside of Gordian Energy Systems' control, we respectfully request that the City of Scandia consider granting an additional six-month extension to the Conditional Use Permit. The project remains viable, and Gordian remains fully committed to completing development and moving the project into construction. An extension would provide the necessary time to complete the remaining utility-related requirements, finalize interconnection infrastructure design activities, complete remaining preliminary engineering, and preserve the significant investment already made in advancing the project. We appreciate the City of Scandia's continued support and consideration of this request. Sincerely, Sean O'Connor Project Developer Gordian Energy Systems CITY OF SCANDIA, MINNESOTA RESOLUTION NO. 10-17-23-03 APPROVING CONDITIONAL USE PERMIT FOR A DISTRIBUTION SCALE SOLAR ENERGY SYSTEM LOCATED ON 19.032.20.13.0001 LOCATED AT 10929 SCANDIA TRAIL NORTH WHEREAS, Patrick Dalseth, SV CSG Scandia, LLC (the "applicant" or the operator"), on behalf of Michael Lubke & Molly Minogue (the "owners"), made an application for a Conditional Use Permit to allow for a Distribution Solar Energy System (SES) to be located at PID 19.032.20.13.0001 located at 10929 Scandia Trail North: The West Half of the Northeast Quarter (W 1/2 of NE 1/4) of Section Nineteen 19), Township Thirty-two(32), Range Twenty (20), Washington County, Minnesota. WHEREAS, the Planning Commission reviewed the request for the Conditional Use Permit (CUP) at a duly noticed Public Hearing on October 3, 2023, and recommended that the City Council approve the CUP, with conditions; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCANDIA, WASHINGTON COUNTY, MINNESOTA, that it approves of a Conditional Use Permit to allow for a Distribution SES, located at 10929 Scandia Trail North, based on the following findings: 1. Objectives of the Comprehensive Plan include promoting the use of renewable energy systems on housing and in areas where such systems can be safely operated and produce a minimum level of visual impact. The Distribution SES is allowed through a Conditional Use Permit within the SES-0 district and helps obtain the objectives of the Comprehensive Plan. Staff has included conditions to address the conditions established within the UDC. 2. The Distribution SES will promote and enhance the general public welfare, and will not be detrimental to or endanger the public health, safety, morals, or comfort. Reasonable conditions of approval can be added if the Planning Commission finds issues with the proposed SES. 3. The Distribution SES use will not be injurious to the use and enjoyment of other property in the immediate vicinity for the purposes already permitted, nor substantially diminish and impair property values or scenic views. Screening to roadways, public waters, and nearby dwellings is required as a condition of approval. The proposed system meets setbacks as required within the UDC. 4. The proposed Distribution SES will not impede development or improvement of surrounding properties. Resolution No.: 10-17-23-03 Page 2 of 6 5. Staff has included a condition that an access permit be granted by the Minnesota Department of Transportation. The proposed Distribution SES use is not anticipated to substantially increase use, cause undue wear, or cause any detriment that is atypical from regular use. 6. The proposed use is consistent with the applicable regulations of the AG-C District and is generally consistent with the requirements of the UDC. Any future changes to the Distribution SES will be required to conform with the applicable regulations of the district and the Conditional Use Permit must be amended to allow for the change. Reasonable conditions of approval have been added where the City finds issues with the proposed use. 7. The Conditional Use Permit generally meets the general and specific performance standards of the UDC. Staff has included conditions where the application does not meet these standards. FURTHER BE IT RESOLVED that the following conditions of approval shall be met: 1. The project shall be in substantial compliance with the plans submitted to the City on August 26, 2023, with the exception of where revisions are required with this approval. 2. Treatment of stormwater runoff should be consistent with MPCA storm water manual guidance for solar projects. 3. Native vegetation must be planted on the site wherever practical to provide habitat. 4. Facility location and design must minimize impact on habitat and wildlife movement. 5. Before a building permit can be issued on the site the following must occur: a. The applicant must complete an interconnection agreement with a local utility and provide a copy of the agreement to the City. The system operator must provide a visible external disconnect if required by the utility. b. The City will require the establishment of an escrow account, from a creditable banking institution chartered to operate in the State of Minnesota, to ensure vegetation is installed and establishes itself as identified in the approved permit, based on an estimated cost for plantings and labor provided by the applicant. The planting and screening plan must utilize the recommended plant types described in Section [153.400.060] and must be approved by the City. c. The City will require the posting of a bond, letter of credit or the establishment of an escrow account to ensure decommissioning. The decommissioning plan must provide a letter of credit that does not give credit towards salvage material. The guarantee shall be from a creditable banking institution chartered to operate in the State of Minnesota. d. The applicant must submit proof that a current general liability policy covering bodily injury and property damage with limits of at least $1 million per occurrence and $2 million in the aggregate or the maximum liability thresholds set forth Minnesota Statutes, section 466.04, as amended, whichever is greater, to the City. e. Submit specification showing the maximum that the panels do not exceed 15 feet in height when oriented at maximum tilt. Resolution No.: 10-17-23-03 Page 3 of 6 f. The screening shall fully obscure 100% view of the solar panels from any adjacent road right-of-way immediately upon screen completion in accordance with this section, and shall be completed prior to the remainder of solar facilities and panel installation. Effectiveness of screening shall be reviewed and approved by city staff prior to continuation of project installation. g. Any fences or barriers installed for the project must be mounted on wood posts, and may not include any chain link, barbed or razor wire. The fence may not exceed eight (8) feet in height from the ground, and must incorporate wildlife - friendly design with a gap at the bottom for passage of birds and small animals. The City will utilize recommendations from the Minnesota DNR to determine if the fence design is wildlife -friendly. All fencing must comply with Character Area Standards and Fencing standards established in Section 153.400 of the Unified Development Code. h. All ground areas under solar array installs that are not occupied by equipment or essential access paths, must be planted with a deep rooted, native grass and pollinator seed mix suitable to the soil and moisture conditions of the immediate area. Plant growth must be stable and self-supporting within one (1) growing seasons from the date of building permit approval. The landscaping plan shall be revised to show the location of ground plantings including which seed mixes are proposed and where the mixes will be used. i. Power and communication lines that are not defined in this the UDC as Essential Services and running between banks of solar panels and the interconnection pole or other point of interconnection must be buried underground. j. Drainage and utility easements will be placed around the permitter of the property in accordance with the subdivision ordinance for both as needed maintenance and assuring compliance with the approvals. k. A MPCA General Stormwater Permit will be required. 1. The applicant shall verify with MnDOT, and provide City proof of, need for a work within ROW permit that may be required for construction activities. m. The stormwater basin being constructed in the southwest portion of the project has no future access reserved to account for accessing to perform maintenance. The applicant must demonstrate how a backhoe would be able to access in the future to perform maintenance. 6. If any concrete is used onsite for construction, all wash outs from cement trucks shall not be dumped on site. 7. The required screening must be achieved within six (6) growing seasons from the date of project approval. If the screening is not established within 6 growing seasons, it must be implemented through the planting of mature vegetation to fully obscure (100%) view of the solar panels as described in current ordinance. 8. The applicant shall maintain landscaping and screening for the full term of the permit. The City may enter and inspect the property, outside the area protected around the array by fencing, at any reasonable time for the purpose of investigating a reported violation or to ascertain compliance or noncompliance with the current standards or approvals regulating screening. Resolution No.: 10-17-23-03 Page 4 of 6 9. The City reserves the right to utilize the vegetative escrow required with the permit to address noncompliance with approved screening if the applicant or operator does not bring the site into compliance within nine months. 10. If glare is reported as a nuisance staff will review the existing conditions and the applicant must address any concerns identified by staff to bring the use into compliance with the current regulations. 11. No lighting is proposed or approved with this approval. 12. The first 50 ft. of the access road off of MN 97 shall be either bituminous or concrete to prevent tracking sediment onto MN 97. 13. The applicant shall stake the required setback from MN 97 so that the Building Inspector can verify the setbacks before construction begins. 14. The applicant shall identify the boundaries of the wetland buffers in the field prior to construction of the facilities on the site. 15. Erosion control along wetland shall be required. 16. Signage must be installed that clearly identifies the array and emergency contacts that are responsible in the case of an emergency within three months of a final building permit being issued. Signage must be screened from public right of way and residential uses within 350 ft. 17. Signs, informational, or visual communication devices shall comply with applicable regulations. 18. All plans submitted for building permit approval shall be prepared by a licensed, professional engineer. 19. Any expansion of the Distribution SES shall require an amended conditional use permit. 20. The applicant shall complete a Developer Agreement with the City. The Agreement shall include financial guarantees acceptable to the City), to assure compliance with the Vegetative Escrow, Landscaping Plan, and Decommissioning Plan. The Development Agreement shall be signed by the City and the applicant before the City approves the final permit for the solar installation. 21. The applicant shall obtain all necessary permits prior to work on the site, including but not limited to: a. The Distribution Scale Solar Energy System shall comply with all applicable local, state and federal regulatory standards, including the current Uniform Building Code, the National Electric Code, the State Plumbing Code and the Minnesota Energy Code. b. Driveway access permits from the Minnesota Department of Transportation shall be secured for the access drives to the site from MN 97, before the City approves the final permit for the solar installation. c. The applicant shall obtain the required Watershed District permit(s). d. The applicant shall obtain the required grading and erosion control permit from the City. e. The applicant shall obtain the required building permit from the City. 22. The applicant shall comply with all applicable local, state, and federal permits and requirements for the new development on the parcel. Resolution No.: 10-17-23-03 Page 5 of 6 23. The City may revoke the Conditional Use Permit for the site if the site is not in compliance with any condition of this approval and if all permits and required work to comply with approvals from other local, state, and federal permits is not completed. 24. The applicant/operator of the Distribution SES shall pay all costs incurred by the city to monitor compliance with conditions of the Conditional Use Permit 25. The applicant shall pay all fees and escrows associated with this application. Resolution No.: 10-17-23-03 Page 6 of 6 Whereupon, said Resolution is hereby declared adopted on this 17 day of October 2023. ceve Krbnl3XIq4!cting Mayor Patrick Dalseth, Applicant A , A ?,,t Vir SV CSG Michael Lubke, Owner Molly Mi ogue, %vner ATTEST: Kyle l/lore I. City Administrator CITY OF SCANDIA, MINNESOTA RESOLUTION NO. 10-17-23-05 APPROVING CONDITIONAL USE PERMIT FOR A DISTRIBUTION SCALE SOLAR ENERGY SYSTEM LOCATED ON 19.032.20.13.0001 LOCATED AT 10929 SCANDIA TRAIL NORTH WHEREAS, Courtney O'Connor, Gordian Energy Systems and DIVOCSG N LLC (the applicant" or the "operator"), on behalf of Michael Lubke & Molly Minogue (the "owners"), made an application for a Conditional Use Permit to allow for a Distribution Solar Energy System (SES) to be located at PID 19.032.20.13.0001 located at 10929 Scandia Trail North: THE WEST HALF OF THE NORTHEAST QUARTER (W 1/2 OF NE 1/4) OF SECTION NINETEEN (19), TOWNSHIP THIRTY-TWO (32), RANGE TWENTY (20), WASHINGTON COUNTY, MINNESOTA, AND WHICH INCLUDES A STRIP OF LAND FIFTY (50) FEET IN WIDTH RUNNING OVER AND ACROSS THE WEST HALF OF THE NORTHEAST QUARTER W1/2 OF NE1/4} OF SECTION NINETEEN (19), TOWNSHIP THIRTY-TWO 32) NORTH, RANGE TWENTY (20) WEST; SAID STRIP OF LAND BEING TWENTY-FIVE (25) FEET IN WIDTH ON EACH SIDE OF A CENTER LINE WHICH CROSSES ABOVE DESCRIBED TRACT AND IS DESCRIBED AS FOLLOWS TO -WIT COMMENCING AT A STAKE ON THE EAST LINE OF SAID SECTION, TWENTY (20) FEET SOUTH OF THE NORTHEAST CORNER THEREOF; RUNNING THENCE SOUTHWESTERLY ON A ONE DEGREE CURVE TO THE RIGHT FROM A LINE BEARING SOUTH FORTY- TWO DEGREES AND THIRTEEN MINUTES WEST (S 42? 13? W) AS A TANGENT; A DISTANCE OF ONE HUNDRED FORTY-SIX AND SEVEN - TENTHS (146.7) FEET THENCE SOUTH FORTY-THREE DEGREES AND FORTY-ONE MINUTES WEST (S 43 DEG 41- W) EIGHT THOUSAND ONE HUNDRED SEVENTY-FOUR AND FIVE -TENTHS (8174.5) FEET TO A STAKE ON THE WEST LINE OF SECTION THIRTY (30) IN SAID TOWNSHIP AND RANGE, SIX HUNDRED NINETY AND THREE -TENTHS 690.3) FEET SOUTH OF THE NORTHWEST CORNER THEREOF, WASHINGTON COUNTY, MINNESOTA. WHEREAS, the Planning Commission reviewed the request for the Conditional Use Permit (CUP) at a duly noticed Public Hearing on October 3, 2023, and recommended that the City Council approve the CUP, with conditions; Resolution No.: 10-17-23-05 Page 2 of 6 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCANDIA, WASHINGTON COUNTY, MINNESOTA, that it approves of a Conditional Use Permit to allow for a Distribution SES, located at 10929 Scandia Trail North, based on the following findings: Objectives of the Comprehensive Plan include promoting the use of renewable energy systems on housing and in areas where such systems can be safely operated and produce a minimum level of visual impact. The Distribution SES is allowed through a Conditional Use Permit within the SES-0 district and helps obtain the objectives of the Comprehensive Plan. Staff has included conditions to address the conditions established within the UDC. 2. The Distribution SES will promote and enhance the general public welfare, and will not be detrimental to or endanger the public health, safety, morals, or comfort. Reasonable conditions of approval can be added if the Planning Commission finds issues with the proposed SES. 3. The Distribution SES use will not be injurious to the use and enjoyment of other property in the immediate vicinity for the purposes already permitted, nor substantially diminish and impair property values or scenic views. Screening to roadways, public waters, and nearby dwellings is required as a condition of approval. The proposed system meets setbacks as required within the UDC. 4. The proposed Distribution SES will not impede development or improvement of surrounding properties. 5. Staff has included a condition that an access permit be granted by the Minnesota Department of Transportation. The proposed Distribution SES use is not anticipated to substantially increase use, cause undue wear, or cause any detriment that is atypical from regular use. 6. The proposed use is consistent with the applicable regulations of the AG-C District and is generally consistent with the requirements of the UDC. Any future changes to the Distribution SES will be required to conform with the applicable regulations of the district and the Conditional Use Permit must be amended to allow for the change. Reasonable conditions of approval have been added where the City finds issues with the proposed use. 7. The Conditional Use Permit generally meets the general and specific performance standards of the UDC. Staff has included conditions where the application does not meet these standards. FURTHER BE IT RESOLVED that the following conditions of approval shall be met: 1. The project shall be in substantial compliance with the plans submitted to the City on August 25, 2023, with the exception of where revisions are required with this approval. 2. Treatment of stormwater runoff should be consistent with MPCA storm water manual guidance for solar projects. 3. Native vegetation must be planted on the site wherever practical to provide habitat. Resolution No.: 10-17-23-05 Page 3 of 6 4. Facility location and design must minimize impact on habitat and wildlife movement. 5. Before a building permit can be issued on the site the following must occur: a. The applicant must complete an interconnection agreement with a local utility and provide a copy of the agreement to the City. The system operator must provide a visible external disconnect if required by the utility. b. The City will require the establishment of an escrow account, from a creditable banking institution chartered to operate in the State of Minnesota, to ensure vegetation is installed and establishes itself as identified in the approved permit, based on an estimated cost for plantings and labor provided by the applicant. The planting and screening plan must utilize the recommended plant types described in Section [153.400.060] and must be approved by the City. c. The City will require the posting of a bond, letter of credit or the establishment of an escrow account to ensure decommissioning. The decommissioning plan must provide a letter of credit that does not give credit towards salvage material. The guarantee shall be from a creditable banking institution chartered to operate in the State of Minnesota. d. The applicant must submit proof that a current general liability policy covering bodily injury and property damage with limits of at least $1 million per occurrence and $2 million in the aggregate or the maximum liability thresholds set forth Minnesota Statutes, section 466.04, as amended, whichever is greater, to the City. e. Submit specification showing the maximum that the panels do not exceed 15 feet in height when oriented at maximum tilt. f. The screening shall fully obscure 100% view of the solar panels from any adjacent road right-of-way immediately upon screen completion in accordance with this section, and shall be completed prior to the remainder of solar facilities and panel installation. Effectiveness of screening shall be reviewed and approved by city staff prior to continuation of project installation. g. The landscaping plan shall be revised to show permanent vegetative screening designed to have a horizontal depth of at least 20 feet. h. Any fences or barriers installed for the project must be mounted on wood posts, and may not include any chain link, barbed or razor wire. The fence may not exceed eight (8) feet in height from the ground, and must incorporate wildlife - friendly design with a gap at the bottom for passage of birds and small animals. The City will utilize recommendations from the Minnesota DNR to determine if the fence design is wildlife -friendly. All fencing must comply with Character Area Standards and Fencing standards established in Section 153.400 of the Unified Development Code. i. All ground areas under solar array installs that are not occupied by equipment or essential access paths, must be planted with a deep rooted, native grass and pollinator seed mix suitable to the soil and moisture conditions of the immediate area. Plant growth must be stable and self-supporting within one (1) growing seasons from the date of building permit approval. The landscaping plan shall be Resolution No.: 10-17-23-05 Page 4 of 6 revised to show the location of ground plantings including which seed mixes are proposed and where the mixes will be used. j. Power and communication lines that are not defined in this the UDC as Essential Services and running between banks of solar panels and the interconnection pole or other point of interconnection must be buried underground. k. Drainage and utility easements will be placed around the permitter of the property in accordance with the subdivision ordinance for both as needed maintenance and assuring compliance with the approvals. 1. A MPCA General Stormwater Permit will be required. in. The applicant shall verify with MnDOT, and provide City proof of, need for a work within ROW permit that may be required for construction activities. n. The stormwater basin being constructed in the southwest portion of the project has no future access reserved to account for accessing to perform maintenance. The applicant must demonstrate how a backhoe would be able to access in the future to perform maintenance. 6. If any concrete is used onsite for construction, all wash outs from cement trucks shall not be dumped on site. 7. The required screening must be achieved within six (6) growing seasons from the date of project approval. If the screening is not established within 6 growing seasons, it must be implemented through the planting of mature vegetation to fully obscure (100%) view of the solar panels as described in current ordinance. 8. The applicant shall maintain landscaping and screening for the full term of the permit. The City may enter and inspect the property, outside the area protected around the array by fencing, at any reasonable time for the purpose of investigating a reported violation or to ascertain compliance or noncompliance with the current standards or approvals regulating screening. 9. The City reserves the right to utilize the vegetative escrow required with the permit to address noncompliance with approved screening if the applicant or operator does not bring the site into compliance within nine months. 10. If glare is reported as a nuisance staff will review the existing conditions and the applicant must address any concerns identified by staff to bring the use into compliance with the current regulations. 11. No lighting is proposed or approved with this approval. 12. The first 50 ft. of the access road off of MN 97 shall be either bituminous or concrete to prevent tracking sediment onto MN 97. 13. The applicant shall stake the required setback from MN 97 so that the Building Inspector can verify the setbacks before construction begins. 14. The applicant shall identify the boundaries of the wetland buffers in the field prior to construction of the facilities on the site. 15. Erosion control along wetland shall be required. 16. Signage must be installed that clearly identifies the array and emergency contacts that are responsible in the case of an emergency within three months of a final building permit being issued. Signage must be screened from public right of way and residential uses within 350 ft. Resolution No.: 10-17-23-05 Page 5 of 6 17. Signs, informational, or visual communication devices shall comply with applicable regulations. 18. All plans submitted for building permit approval shall be prepared by a licensed, professional engineer. 19. Any expansion of the Distribution SES shall require an amended conditional use permit. 20. The applicant shall complete a Developer Agreement with the City. The Agreement shall include financial guarantees acceptable to the City), to assure compliance with the Vegetative Escrow, Landscaping Plan, and Decommissioning Plan. The Development Agreement shall be signed by the City and the applicant before the City approves the final permit for the solar installation. 21. The applicant shall obtain all necessary permits prior to work on the site, including but not limited to: a. The Distribution Scale Solar Energy System shall comply with all applicable local, state and federal regulatory standards, including the current Uniform Building Code, the National Electric Code, the State Plumbing Code and the Minnesota Energy Code. b. Driveway access permits from the Minnesota Department of Transportation shall be secured for the access drives to the site from MN 97, before the City approves the final permit for the solar installation. c. The applicant shall obtain the required Watershed District permit(s). d. The applicant shall obtain the required grading and erosion control permit from the City. e. The applicant shall obtain the required building permit from the City. 22. The applicant shall comply with all applicable local, state, and federal permits and requirements for the new development on the parcel. 23. The City may revoke the Conditional Use Permit for the site if the site is not in compliance with any condition of this approval and if all permits and required work to comply with approvals from other local, state, and federal permits is not completed. 24. The applicant/operator of the Distribution SES shall pay all costs incurred by the city to monitor compliance with conditions of the Conditional Use Permit. 25. The applicant shall pay all fees and escrows associated with this application. Resolution No.: 10-17-23-05 Page 6 of 6 Whereupon, said Resolution is hereby declared adopted on this 17t" day of October, 2023. ronmill r, ting Mayor GL2 lZQLL O CBrL/Z92 Cou Connor, Applicant q4: k-te Michael Lubke, Owner C' C)V Molly Minogu . Own r ATTEST: I Pt/ Kyle Mo ll. City Administrator