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4.c) Staff Report-ForestLakeHoldco SolarGarden CUP444 Cedar Street, Suite 1500 Saint Paul, MN 55101 (651) 292-4400 (651) 292-0083 Fax www.tkda.com MEMORANDUM To: Scandia Planning Commission Reference: Forest Lake Holdco Solar Garden CUP Kristina Handt, Administrator Copies To: Brenda Eklund, Clerk Ryan Goodman, PE, City Engineer Gordy Simanton, Solar Stone Partners Forest Lake Holdco, LLC, owner Andi Moffatt & Addison Lewis, WSB & Associates, Engineers From: Sherri Buss, Planner RLA AICP Proj. No.: 15744.014 Date: September 28, 2015 Routing: SUBJECT: Forest Lake Holdco request for a Conditional Use Permit (CUP) for a Community Solar Garden MEETING DATE: October 6, 2015 LOCATION: Parcel ID 18.032.20.33.0001—located at the Northwest Corner of TH 97 (Scandia Trail North) and County Road 15A (Manning Avenue) APPLICANT: Gordy Simanton Solar Stone Partners 3944 Xerxes Avenue North Minneapolis, MN 55410 OWNER: Forest Lake Holdco, LLC 3944 Xerxes Avenue North Minneapolis, MN 55410 ZONING: Agriculture Core (AG C) 60-DAY PERIOD: November 17, 2015 ITEMS REVIEWED: Final Application, Plans, Wetland Delineation and other materials received September 18, 2015 Forest Lake Holdco Solar Garden CUP Page 2 October 6, 2015 Scandia Planning Commission BRIEF DESCRIPTION OF THE REQUEST: The applicant is requesting a Conditional Use Permit (CUP) to develop a Community Solar Garden on a parcel at the northwest corner of TH 97 (Scandia Trail North) and County Road 15A (Manning Avenue). The subject property is located in the Agriculture Core (AG C) Zoning District, and includes 59 acres. BACKGROUND AND PROJECT DESCRIPTION: SolarStone Partners, the applicant for the CUP, is proposing to develop the solar garden project using the State of Minnesota Solar Garden Program that was established in 2013. The program allows developers to permit, develop, own and operate solar projects with the ability to sell the solar electricity directly to customers. The projects connect to Xcel’s distribution grid, Xcel delivers the power to customers, and SolarStone would bill the customers for the electricity they purchase. The proposed project in Scandia is a 25-acre solar project on a 59-acre parcel located at Scandia Trail North and Manning Avenue. The site is currently owned by the Steve Sadowski Family Partnership. The project site is a former sand and gravel quarry that has low agricultural value. The solar facilities will serve energy customers in Washington, Anoka, Ramsey and Dakota Counties. The project is working through the Xcel interconnection process, and will begin its interconnection study in September. The 50-day study period will begin in October, and is expected to be completed in December, 2015. Site preparation work could begin this fall after the City and Watershed District approve permits, and project construction could begin in the spring of 2016. Site Plan. The 25-acre solar array on the site will consist of five 1 Megawatt (MW) Solar Gardens. Each garden is proposed to occupy approximately five acres of land. The typical 1 MW installation will include 20 rows of solar panel arrays approximately 175 feet long, separated by lanes 12 to 18 feet wide. The final layout of the arrays will be subject to engineering and final Xcel approval with the goal of avoiding wetlands and drainage ways and meeting the requirements of the City’s Development Code. The area under the panels will be vegetated; project engineers stated that a perennial seed mix is being considered for the ground cover. The project includes an access road from TH 97 for construction and maintenance, and driveways among the solar arrays. It will also include a security fence around the solar arrays. The solar arrays will consist of 310 Watt panels and fixed axis tilt racking systems that will connect to Kaco 50 Kilowatt (kW) inverters. Each panel will measure 77”x 39.05” x 1.57” and will contain 72 multi-crystalline solar cells that are connected in series. The module frames will be constructed of silver anodized aluminum alloy and be coated in 4.00mm of tempered glass. Individual modules will weigh approximately 60.8 pounds. Each row of panels will consist of 11 strings of 18 modules in a series. Each 18 module rack measures 24’x36’. Every row will feed one 50 kW inverter. Inverters are then connected to a meter which measures the amount of electrical energy produced. The electrical energy will then be distributed directly to the public utility grid via a point of interconnection (POI) located along TH 97 near the site access driveway. Forest Lake Holdco Solar Garden CUP Page 3 October 6, 2015 Scandia Planning Commission The application states that the solar arrays will be tilted at a 30-degree angle and will not exceed 15 feet in height when oriented at maximum tilt. The applicant noted that all photovoltaic systems will comply with the Minnesota State Electric Code. CRITERIA FOR GRANTING A CONDITIONAL USE PERMIT (CUP) The City’s Development Code identifies the criteria that should be considered for evaluating a CUP request and granting a CUP or amendment. The Code indicates that the criteria that the Planning Commision shall consider include the following:  Impact of the proposed use on the health, safety and general welfare of the occupants of surrounding lands  Existing and anticipated traffic conditions, including parking facilities, and impacts  Effect of the proposed use on utility and school capacities  Effect of the proposed use on property values and scenic views  Relationship to the Comprehensive Plan  Ability of the proposed use to meet the standards of the Development Code  Effect of the proposed use on groundwater, surface waters and air quality  That the proposed use is allowed with a conditional use permit in the designated zoning district in which it is proposed. The Development Code also includes general performance standards for all CUP’s and specific performance standards and requirements for Community Solar Gardens. This report also analyzes the proposed project based on those standards and requirements. DETAILED EVALUATION OF THE REQUEST: Comprehensive Plan The Comprehensive Plan states that the primary land use in the Agriculture Core (AG C) District will be agricultural production. The plan notes that the City encourages the use of renewable, local and diverse forms of energy in order to increase the use of local resources, mitigate the local risk form fossil fuel scarcity and price increases, and help meet Minnesota’s climate protection goals. The plan includes a number of implement strategies that support the use of renewable energy systems. The City recently adopted Ordinance 162 permitting Community Solar Gardens and Solar Farms in the AG C and General Rural (GR) Districts to help to implement the goals and strategies in the Comprehensive Plan. The proposed site is located within the AG C district on the site of a former gravel mine. The soils on the site are of marginal quality for agricultural production. The site use to produce solar energy is consistent with the energy-related goals of the Comprehensive Plan. The request is consistent with the goals of the Comprehensive Plan. Forest Lake Holdco Solar Garden CUP Page 4 October 6, 2015 Scandia Planning Commission Minimum Lot Size and Frontage Ordinance 162 requires that Solar Farms and Solar Gardens be located on parcels that are a minimum size of 5 acres. The minimum parcel size in the AG C District is 2.0 to 5.0 acres or 20 acres and larger. The Development Code requires a minimum road frontage of 300 feet for parcels that are 4.0 acres or larger. The proposed solar garden is located on a 59-acre parcel with over 1,800 feet of frontage. The request meets the lot size and frontage requirements. Setbacks The AG C District and Solar Ordinance structure setback requirements are the following  200 feet from the centerline or 150 feet from the ROW of Minor Arterials, whichever is greater (TH 97)  100 feet from the centerline or 50 feet from the ROW of Major or Minor Collectors, whichever is greater (County Road 15A)  20 feet side  50 feet rear The proposed structure setbacks are shown on the Proposed Site Plan (Sheet # S2.0) as follows:  150 feet from the TH 97 ROW  50 feet from the ROW of County Road 15A  50 feet from the rear parcel boundary  20 feet from the western parcel boundary County Transportation Department staff requested that the applicant verify that the setback along on CSAH 15A (Manning Trail) will be the greater of 100 feet from the centerline of CSAH 15A or 50 feet from the ROW. Staff recommend that the applicant stake the setbacks so that the County or Building Inspector may verify the setbacks from CSAH 15A. The proposed setbacks meet the Development Code requirements. The applicants shall stake the setbacks in the field so that the roadway setbacks can be verified by the responsible road authority or the Building Inspector. Accessory Structures The Development Code (Solar Ordinance) exempts solar farm and community solar garden uses from the Residential and Agricultural Accessory Structure standards regarding the square footage and number of structures permitted on a parcel. Structure Height The Development Code (Solar Ordinance) permits a maximum height of 15 feet for the structures in the system. The application states that the maximum height of the solar panels will be 15 feet. The proposed structures meet the height requirement. Forest Lake Holdco Solar Garden CUP Page 5 October 6, 2015 Scandia Planning Commission Lot Coverage The maximum allowable lot coverage is 25% in the AG C District. The Comfort Lake-Forest Lake Watershed District commented that the solar array as proposed will not be counted as impervious area. The array will be erected on posts without foundations so that it may be removed in the future. The area under the array will be planted with a perennial vegetative ground cover. The applicants stated that it is likely to be a pollinator-friendly seed mix. The impervious areas proposed on the site plan include the access roads and driveways between the rows of solar panels on the site, rack posts, and various structures, as noted on plan sheet #E-100. There is no existing impervious coverage on the parcel. The City Engineer recommended that the width of the proposed access road be increased, and an additional access be added to County Road 15A. Based on his recommended increase in impervious areas, the Planner calculated the impervious area of the 25 -acre portion of the parcel to be approximately 10%, and the proposed impervious area of the 59-acre parcel to be 4.5%. The coverage meets the ordinance requirement. Access and Traffic The proposed site access road connects to TH 97. The Planner sent a copy of the application to MnDOT and to Washington County and requested that they provide comments or suggested conditions for the CUP. The applicants stated that the access road will be used for construction and on-going maintenance of the facility. After construction is complete, a few vehicles may access the site each week for security and maintenance. Washington County responded that the applicant should verify that the locations of the solar system structures meet the required setback from County Road 15A. Staff also noted that there have been discussions about a future roundabout at the corner of TH 97 and County Road 15A. In the future, MnDOT may restrict the driveway access to a right-in, right-out access if the roundabout is developed at the corner. The Planner has not received comments from MnDOT to date, and will present any comments received at the Planning Commission meeting on October 6. Lighting The applicants have not proposed new lighting at the site. Any new lighting will need to meet the ordinance requirements. Landscaping, Screening, and Potential Glare The City’s Solar Ordinance requires the following:  “Solar farms and community solar gardens shall be screened from view from the public right of way to the extent possible by setbacks, berming, existing vegetation, landscaping or a combination thereof.”  “All solar farm and community solar garden facilities shall be designed and located in order to prevent reflective glare toward any inhabited buildings on adjacent properties, as well as adjacent street rights-of-way. Steps to control glare nuisance may include selective placement of the system, Forest Lake Holdco Solar Garden CUP Page 6 October 6, 2015 Scandia Planning Commission screening on the side of the solar array facing the reflectors, reducing the use of the reflector system, or other remedies that limit glare. Solar farms utilizing a reflector system shall conduct a glare study to identify the impacts of the system on occupied buildings and transportation rights-of-way within a half-mile of the project boundary.” The application includes a discussion of the potential glare from the solar array. The application states that “Although solar panels are known to create glare, the glare is directed skyward at right angles to the direction of the sunlight, and would not be viewed from the ground from surrounding properties or roads. The panels will all face south, and since the site is lower than the surroundings, will be generally shielded from view.” Plan sheet S3.0 that was submitted with the application shows the proposed solar panels in relation to surrounding roadways. The panels will face TH 97, and will be located below the top of the grade of the site area between the array and TH 97, so that they should not be visible from TH 97. The array will be set-back 150 feet from the roadway right-of-way, 250’ from the centerline of TH 97, and approximately 600 feet from the nearest residential structure to the south. Sunlight reflecting from the panels at 90° to the panel surface would be directed toward the sky, and would not be directed toward the roadway or buildings to the south (see attached sketch). The Planning Commission should discuss the location of the array in relation to the roadway structures, and discuss whether additional screening or information are needed to address the ordinance requirements. The Planner has included a condition that the community solar garden shall be designed, located, and screened to prevent reflective glare toward any inhabited buildings on adjacent properties and adjacent street rights-of- way. Wastewater Treatment No wastewater treatment is needed for the proposed Community Solar Garden. Land Alteration, Grading, and Stormwater Management The Planner sent a copy of the application to the Comfort Lake-Forest Lake Watershed District (CLFLWD) and to the City Engineer for review. The Watershed District provided the following comment: “This project will require a CLF LWD permit and review (erosion control and possibly stormwater management). I believe this has already been communicated to the applicant.” The City Engineer provided the following comments on the application: 1. Proposed project will disturb fifty (50) cubic yards or more and/or disturb 1,000 square feet or more along with clearing trees. This will require a Grading/Land Alteration Permit Application. The following items should be added to the construction plans: a. Northern portion of project site will require grading and minor tree removal to install access road. The existing grades in this area will drain to the north. Perimeter erosion control shall be added to the northern project boundary limits. Forest Lake Holdco Solar Garden CUP Page 7 October 6, 2015 Scandia Planning Commission 2. In the event emergency medical services are needed on the site to attend to maintenance workers or other unforeseen conditions the following should be discussed and potentially revised: a. As shown on plan sheet C3.0 the gravel access drive is proposed as 16 feet in width, this distance should be increased to 20 feet in width. b. A secondary driveway access should be added to CSAH 15/Manning Trail to prevent a single entrance to a site that is well-over a distance of 2300 feet in length. 3. Site access/driveway locations should be reviewed by the road authority for final approval and to require necessary permits which should be obtained and submitted to the City. 4. On plan sheet S3.0 a perimeter fence is shown to be installed. Location of fence on site plans has not been labeled, but on plan sheet E-100 it appears symbols for the fence alignment have been shown. Proposed alignment of fence needs to be revised to avoid encroaching within the MnDOT/Hwy 97 right-of-way and the 50’ setback along CSAH 15A/Manning Trail 5. Site plans show a gas main through the property and within the project limits. Work shall be coordinated and any necessary agreements executed with the easement owner. 6. All site work shall be in compliance with the rules of the Watershed District. The Planner has included the following conditions based on the CLFLWD and Engineer comments:  The applicants shall obtain all required Watershed District permits for the project.  The applicants shall address all of the City Engineer comments included in his letter dated September 24, including obtaining the required Grading/Land Alteration permit, increasing the width of the driveway, adding a second access to County Road 15A, and revising and resubmitting the plans to show the fence location.  The applicants shall obtain all required MnDOT and County permits for driveway access. Wetlands The site plan shows two delineated wetlands on the site. The applicant submitted the Wetland Delineation that was completed for the site and approved by the agency Technical Evaluation Panel, which included Washington Conservation District (WCD) and Watershed District staff. The Wetland Delineation noted that in addition to the 2 wetlands on the site, there are some other wet areas that are defined as “incidental” wetlands that were created as a result of the mining activities that occurred on the site. Jed Chesnut of the WCD provided the following information related to the wetland delineation and status of the incidental wetlands: “The TEP reviewed the wetlands on Tuesday and generally agreed with the boundaries (a couple of minor changes were made). All but two of the wetlands are ‘incidental’ to the mining and other site activities and therefore not regulated under WCA. Two wetlands are natural and historic, therefore subject to regulation. This classification of incidental was proposed in the wetland application and the TEP concurred with this based on a review of historic aerials as well as the site history.” Based on the wetland delineation report and TEP conclusions, the solar facilities are not allowed within the two regulated wetlands on the site, but are permitted within the “incidental” wetland areas. The applicant is required to maintain the City’s 75’ wetland buffers around the regulated wetlands. The applicant has identified the regulated wetlands and required wetland buffers on the site plan. Forest Lake Holdco Solar Garden CUP Page 8 October 6, 2015 Scandia Planning Commission The Planner has included a condition that the applicant identify the boundaries of the wetland buffers in the field prior to construction of the facilities on the site. Signage The Solar Systems ordinance requires that the applicants place a clearly-visible warning sign concerning voltage at the base of all pad-mounted transformers and substations. Mechanical equipment shall be completely enclosed by a minimum 8-foot high fence with a self-locking gate. The Planner has included a condition that the site shall comply with ordinance requirements for warning signage and equipment safety. Fencing The site plan shows a proposed fence around the solar array. The site plan suggests that the fence will be approximately 6 feet in height. The Development Code requirements related to fencing on the site include the following:  The side of the fence considered to be the face shall face the abutting property.  No fence shall be constructed on the public right-of-way.  Fences which exceed 6-feet in height are permitted by an Administrative Permit, except in a yard area abutting a road right-of-way. No fence shall exceed 12 feet in height.  Fences may be placed along a property line provided no physical damage of any kind results to abutting property. The Planner has included a condition for approval of the CUP that the applicants comply with the fencing requirements of the Development Code and the Solar Ordinance. The applicants shall obtain an Administrative Permit for the boundary fence if it exceeds 6 feet in height. Environmental Issues The generation of solar energy on the site involves no moving parts, will not use water, and will not produce emissions. The applicant indicated that based on the grades on the site, the site should not generate glare that will impact surrounding properties. The applicants will need to comply with Watershed District and City regulations related to stormwater management and erosion and sediment control. There are no rare species or conservation areas located within the project area or within one-half mile. The existing vegetative cover includes a fallow field, oat crop, wetland areas, and a hayfield. Based on the information and plans provided, the proposed construction and operation is not expected to have environmental impacts on the site or surrounding area. Interconnection Agreement and Liability Insurance The Solar Systems Ordinance requires the applicant to complete an interconnection agreement with a local utility and provide a copy of the agreement to the City before approval of electrical building or other required permits, and that the system operator shall provide a visible external disconnect if required by the utility. The application states that the project is working through the Xcel interconnection process, and will Forest Lake Holdco Solar Garden CUP Page 9 October 6, 2015 Scandia Planning Commission begin its interconnection study in September. The 50-day study period will begin in October, and is expected to be completed in December, 2015. The ordinance also requires the applicant to maintain a current general liability policy covering bodily injury and property damage with limits of at least $1 million per occurrence and $1 million in the aggregate, and provide proof that it meets the insurance requirement to the City. The Planner has included conditions for approval of the CUP that require the applicant to complete an interconnection agreement with the local utility and submit a copy of the agreement to the City before permits will be issued, and that the applicant submit proof on insurance that meets the ordinance requirement. Decommissioning Plan The ordinance requires the applicant to submit a decommissioning plan to ensure that the facilities are properly removed after their useful life. The applicant has submitted a detailed decommissioning and site restoration plan that meets the ordinance requirement. The City may require an escrow or letter of credit from the owner or operator to ensure decommissioning. The City Attorney and City Administrator have recommended that the City require an escrow or letter of credit equal to 125% of the cost the decommissioning plan. The Planner has included a condition that the applicant provide a letter of credit or escrow to the City equal to 125% of the cost of the decommissioning plan. FINDINGS FOR THE CONDITIONAL USE PERMIT Based on the application and analysis completed by City and agency staff, the Planner’s findings related to the criteria for approving a Conditional Use Permit a Community Solar Garden at the proposed site included the following: 1. Impact of the proposed use on the health, safety and general welfare of the occupants of surrounding lands. The proposed use will not produce emissions or pollutants. The applicant must meet City and watershed requirements for stormwater management and erosion and sediment control, and as a result will not impact ground or surface waters. The use will create minimal traffic, and will be required to obtain permits from MnDOT and Washington County for roadway use. The use will not create noise impacts on surrounding areas. The topography of the site and location of the solar arrays in a position that is lower than the surrounding site on the south side should prevent glare impacts to adjacent properties. The proposed use will not impact the health, safety or general welfare of the occupants of surrounding properties. 2. Existing and anticipated traffic conditions, including parking facilities, and impacts Forest Lake Holdco Solar Garden CUP Page 10 October 6, 2015 Scandia Planning Commission The site is currently vacant and generates little or no traffic. The proposed use will create traffic during construction. After construction, the site will generate a minimal number of trips in and out to maintain the facility. The applicant is required to obtain access permits from MnDOT and Washington County, and abide by the conditions of the permits. The use does not require dedicated parking. The proposed use will not have negative traffic impacts on adjacent roadways. 3. Effect of the proposed use on utility and school capacities The proposed use will help local energy utilities and the State of Minnesota to meet goals for the generation of renewable energy, and therefore will have a positive impact on utilities. It will not impact local school capacities. 4. Effect of the proposed use on property values and scenic views The proposed solar array would be positioned in a location on the parcel where topography should screen the array from view from TH 97 and surrounding properties. It will not produce noise, emissions or other impacts that would negatively affect property values. The proposed use will not have a negative impact on adjacent property values or scenic views. 5. Relationship to the Comprehensive Plan The proposed use is within the Agriculture Core district, but located on a site where soils are of marginal value for agriculture due to the past uses on the site. The Comprehensive Plan encourages the use of renewable, local and diverse forms of energy to help to meet Minnesota’s climate protection goals. The proposed use is consistent with the goals and strategies in the Comprehensive Plan. 6. Ability of the proposed use to meet the standards of the Development Code The proposed use meets the dimensional requirements of the Development Code, and with the conditions proposed for approval, would meet the requirements and performance standards for Community Solar Gardens in the Code. 7. Effect of the proposed use on groundwater, surface waters and air quality The proposed use will be required to obtain Watershed District and City permits that will include requirements for managing grading, erosion, and sediment control to protect ground and surface waters. The proposed plan will not impact wetlands or the required wetland buffer areas. The project will not impact air quality. The proposed use will not have negative impacts on groundwater, surface waters or air quality. 8. That the proposed use is allowed with a conditional use permit in the designated zoning district in which it is proposed. The proposed use is allowed with a conditional use permit in the Agriculture Core District. Forest Lake Holdco Solar Garden CUP Page 11 October 6, 2015 Scandia Planning Commission ACTION REQUESTED: The Planning Commission can recommend the following: 1. Approve the request. 2. Approve the request with conditions. 3. Deny the request with findings. 4. Table the request. PLANNING STAFF RECOMMENDATIONS: The Planner recommends approval of a Conditional Use Permit for a Community Solar Garden on parcel number 18.032.20.33.0001 located at the northwest corner of TH 97 (Scandia Trail North) and County Road 15A (Manning Avenue). The Planner recommends the following conditions for the CUP: 1. The project shall be in substantial compliance with the plans submitted to the City on September 18, 2015. 2. The Community Solar Garden shall be in compliance 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. 3. The applicant shall stake the required setbacks from TH 97 and County Road 15A so that the responsible road authorities and Building Inspector can verify the setbacks before construction begins. 4. The community solar garden shall be designed, located, and/or screened to prevent reflective glare toward any inhabited buildings on adjacent properties and adjacent street rights of way. 5. The applicant shall identify the boundaries of the wetland buffers in the field prior to construction of the facilities on the site. 6. All new lighting and signage at the site shall meet the Development Code lighting requirements. 7. The applicant shall obtain the required Watershed District permit(s). 8. The applicant shall obtain the required Grading/Land Alteration Permit from the City. 9. The applicant shall obtain all necessary approvals form the appropriate road authority of site access and driveways. 10. The applicant shall address the City Engineer’s comments included in his letter dated September 24, including increasing the width of the access road, adding a second access to County Road 15A, and revising and resubmitting the project plans to show the fence location. 11. The applicant shall comply with the Development Code and Solar Ordinance fencing requirements, and shall obtain an Administrative Permit for the fence if it exceeds 6 feet in height. 12. The applicant shall complete an interconnection agreement with the local utility and submit a copy of the agreements to the City before it issues building and other permits. Forest Lake Holdco Solar Garden CUP Page 12 October 6, 2015 Scandia Planning Commission 13. The applicant shall submit proof to the City that it has obtained general liability insurance that meets the ordinance requirement. 14. The applicant shall provide the warning signs at the site that are required by the Solar Systems Ordinance. Design, locations and specifications of signs shall conform to the Development Code. 15. The applicant shall provide a letter of credit or escrow to the City equal to 125% of the cost of the decommissioning plan. 16. Any expansion of the Community Solar Garden shall require an amended conditional use permit. 17. The applicant shall pay all fees and escrows associated with this application.