9.d Staff Report-development agreement with zavoral and argo navis
Staff Report
Date of Meeting: June 21, 2016
To: City Council
From: Neil Soltis, Administrator
Re: Solar Development agreement with James and Kathleen Zavoral and Argo Navis Community
Solar Gardens, LLC
Background: James and Kathleen Zavoral and Argo Navis Community Solar Gardens, LLC (the
developer) submitted an application for a Conditional Use Permit (CUP) to the City for a
community solar garden to be located on a 87-acre parcel of land located near the intersection
of MN 95 and MN 97. The developers seeks to install solar arrays on 22 acres of the Property,
consisting of four one-megawatt (MW) solar gardens. The Planning Commission conducted a
public hearing on the James and Kathleen Zavoral and Argo Navis Community Solar Gardens, LLC’s
CUP application on May 3, 2016, and recommended approval to the City Council of the City. City
Council Resolution No. 05-17-16-01, adopted on May 17, 2016 approved the issuance of the
conditional use permit for the project. As a part of the City’s approval of the Project through the
CUP, the City imposed 17 conditions upon the Project, including the execution of a development
agreement.
Issue: Should the City approve the development agreement with James and Kathleen Zavoral
and Argo Navis Community Solar Gardens, LLC,
Proposal Details: The development agreement, which was prepared by Andy Pratt and has
been reviewed by the Zavorals and Argo Navis, incorporates the provisions of the resolution
approving the condition use permit along with restating key provisions from the submittals to
the Planning Commission. The agreement also establishes a screening escrow and provides for
security to ensure that the project is decommissioned.
Argo Navis and its assignee, Berkshire Hathaway Energy, h ave provided the required
interconnection agreements, fencing permit application, screening plan, planting plan, access
permit from MNDOT, and permit from the Watershed District. Also provided were letters of
credit for the fencing and screening and project decommissioning escrows and certificate of
insurance. The applicants have submitted plans for a building permit which have been
approved by the City’s building and electrical inspections and are being held pending the
execution of the development agreement.
Fiscal Impact: Property tax valuation of underlying land will change and the City will receive
20% of the of solar production tax which is expected to be approximately $1,600 per year. All
other costs borne by the City are to be reimbursed under the agreement.
Options:
1. Approve the development agreement as drafted
2. Revise the development agreement
3. Take no action on the development agreement
Recommendation: Option 1 - Approve the development agreement as drafted