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7.b 2 Ordinance 170 Interim ordinance for solar farm moratorium Memorandum To: Scandia City Council Reference: Interim Ordinance for Moratorium on Solar Gardens and Solar Farms Copies To: Neil Soltis, City Administrator Brenda Eklund, Clerk Project No.: 16023.000 From: Sherri Buss, RLA AICP, City Planner Routing: Date: April 12, 2016 Background The City of Scandia recently adopted a Solar Energy Systems Ordinance, and has received several applications for this use. As it reviewed recent applications, the Planning Commission identified a need to review several sections of the ordinance to determine if the ordinance addresses some significant issues related to this use adequately, and amend the Comprehensive Plan and Development Code if needed. The issues are identified in the “Preliminary Findings” section of the proposed Interim Ordinance for a Moratorium on Acceptance of Applications for Solar Farms or Solar Gardens, attached, and include:  Visual and other impacts on adjacent properties and screening requirements  Regulation of related equipment, such as communication poles and antennas  Districts or locations where this use should be permitted The Planning Commission identified the potential need for a moratorium on applications for solar gardens and solar farms at its March meeting, and reviewed the draft Interim Ordinance for a Moratorium on Solar Applications at their April meeting. The Commission recommended a moratorium so that a study of the issues may be completed and the ordinance updated before the City accepts new applications for solar farms and community solar gardens. The proposed interim ordinance recommended by the Planning Commission is attached. The moratorium would not affect applications that are submitted to the City before the interim ordinance for the moratorium is adopted and published. Authority to Adopt a Moratorium Minnesota Statutes 462.355, Subd 4 permits the City to establish an interim ordinance to while the City is conducting studies that may lead to an amendment of the comprehensive plan or official controls, such as the Development Code. The interim ordinance may regulate, restrict, or prohibit any use, development, or subdivision within the City or a portion of the city for a period not to exceed one year from the date it is effective. The interim ordinance needs to Scandia City Council Ordinance for Solar Moratorium Page 2 April 19, 2016 authorize the study that will be completed, identify a time period for the moratorium, and describe the specific restrictions and area affected. Issues for Council Discussion and Decision There are three issues for the Council to discuss as it considers potential adoption of the interim ordinance: 1. Public Hearing The state statute that governs comprehensive planning and interim ordinances does not require a public hearing for the initial adoption of the ordinance. (A public hearing is required to extend the time period of the moratorium past the period adopted in the original interim ordinance.) Some communities do hold public hearings for the adoption of interim ordinances because they affect private property owners’ ability to develop their properties. Does the Council want to hold a public hearing on the Interim Ordinance prior to making its decision regarding adoption of the ordinance? 2. Study or Planning Commission Review of the Solar Systems Ordinance The state statute states that the City may adopt an interim ordnance if it is “conducting studies or has authorized a study to be conducted…for the purpose of considering adoption or amendment of a comprehensive plan or official controls.” The draft interim ordinance includes Section 3 which describes a study to review the Comprehensive Plan and Development Code to address the issues identified in items 1-8 of the proposed ordinance. The Commission would need to work with City staff or others to complete the specific study of the issues identified, and provide a study report and recommendations to the Council. The Planning Commission could also review the ordinance and make recommendations regarding amendments to the Council without the adoption of the moratorium. The Commission’s rationale for the moratorium and study rather than the typical process to review and amend the ordinance included:  The moratorium would prevent the acceptance of new applications for solar farms and solar gardens, so that the review of applications for this use under the current ordinance would not occur while the study is being completed.  The limited 3-month time period was included in the interim ordinance so that the Planning Commission would have a firm deadline for completing the study and recommending ordinance amendments, while still allowing landowners to submit applications for this use before the financial incentives for community solar gardens expire at the end of 2016. The Council may authorize the study and adopt the interim ordinance for the moratorium, or may direct the Planning Commission to review the ordinance and recommend amendments without a moratorium. Scandia City Council Ordinance for Solar Moratorium Page 3 April 19, 2016 3. Timeline for the Moratorium and Study The Planning Commission has proposed a 3-month Moratorium. (The statute permits a moratorium of up to 1 year, with an extension of up to 18 month.) The moratorium timeline options are as follows: Interim Ordinance Adoption by City Council Moratorium Ordinance Published Moratorium Start Date Moratorium Ends No Public Hearing – April 19 April 28 April 28 July 28 Public Hearing & Adoption – May 17 May 26 May 26 August 26 In each case, the Planning Commission would have three meetings to complete the study and make its recommendations for Comprehensive Plan and Ordinance amendments to the City Council. Request for Council Action The Planning Commission requests that the Council approve Ordinance 171 and the Summary for Publication of Ordinance 171. Ordinance 171 is an Interim Ordinance establishing a Study Period and Moratorium for up to three months, and prohibiting the acceptance of any application for a solar farm or solar garden during the moratorium. CITY OF SCANDIA, MINNESOTA ORDINANCE NO. 170 INTERIM ORDINANCE TO ESTABLISH A STUDY PERIOD AND MORATORIUM FOR A PERIOD OF UP TO THREE (3) MONTHS PROHIBITING THE ACCEPTANCE OF ANY APPLICATION FOR A SOLAR FARM OR SOLAR GARDEN PURSUANT TO MINN. STAT. §462.355, Subd. 4. THE CITY COUNCIL OF THE CITY OF SCANDIA HEREBY ORDAINS: Section 1. Purpose, Intent and Background. The purpose and intent of this Ordinance is to prohibit: The filing or acceptance of any land use application for the use of any land located within the City as a solar farm or community solar garden. On June 16, 2015 the City Council approved Ordinance 162, amending the Development Code Chapter 1, Section 4.2, Definitions and Chapter 2, Section 4.0, Standards and Uses, in order to provide a regulatory framework for solar farms and community solar gardens. In review of the initial applications for these solar facilities, issues have arisen whereby the Council and the Planning Commission have determined that further research, study, and consideration are needed of the potential impacts that the use or occupancy of any land within the city for the purpose of a solar farm or community solar garden would have upon the health, safety and general welfare of the public. Section 2. Preliminary Findings. The City Council hereby makes the following preliminary findings to serve as the basis for the necessary study to be made during the moratorium period provided in this Ordinance. These preliminary findings serve as the reasons why it has been determined by the City Council that it is in the public interest for the City to conduct a study and so declare a moratorium by virtue of this Ordinance: 1. The City has determined that current regulations and official controls may not adequately address the effects of the use of land for solar farms or community solar gardens. For example, some of the City’s zoning regulations may be inadequate to allow for large solar farms and community solar gardens, as issues have arisen related to required setbacks, screening, and the presence of related interconnection equipment. The City has therefore determined that a study will be necessary to propose adequate additional regulations to assure that the impact and effect of the use of land for solar farms or community solar gardens are fully known and addressed, and appropriate regulations are adopted and conditions imposed so as to best minimize adverse impacts and effects as a result of such uses. 2. The City has not fully researched, analyzed or studied the impacts and effects of whether proposed solar farms and community solar garden uses will be injurious to the use and enjoyment of other property in the immediate vicinity of the solar projects, or whether the projects will substantially diminish and impair property values or scenic views, or will impede the normal and orderly development and improvement of surrounding property for uses permitted in the applicable zoning districts. 3. The Development Code is not sufficiently clear as to how the equipment utilized in a solar farm or community solar garden should be defined. For example, it is not clear whether associated equipment is an “essential service” to be utilized without additional permitting for a solar project, or whether such equipment is best permitted under the City’s telecommunications regulations. 4. The City additionally finds that there is a lack of clarity as to the issues of ownership of the equipment and transmission infrastructure, the utilization of rights-of-way, and identifying the proper permittee. 5. The City finds that zoning districts where solar farms or community solar gardens have been listed as conditional uses may not be eligible for that use due to other restrictions that have been placed on properties within those districts. 6. The public interest and public health, safety and welfare require that the City study, analyze and evaluate the impacts and effects of the use of any land for solar farms or community solar gardens. 7. This interim ordinance will ensure that any changes to the Development Code or Comprehensive Plan amendments will be carefully considered and evaluated and that all issues can be fully examined while protecting the City’s planning process and the public health, safety and welfare during the moratorium period. 8. Minnesota Statute §462.355, subd. 4 allows a municipality to adopt an interim ordinance for the purpose of considering adoption or amendment of official controls including ordinances establishing zoning, subdivision controls, site plan regulations, building codes and official maps. This interim ordinance may regulate, restrict, or prohibit any use, development or subdivision within the City for a period not to exceed one year from the date the ordinance is effective. Section 3. Authorization of Study. The City Council authorizes a land-use planning study for the continued purpose of reviewing the City’s Comprehensive Plan and Development Code to determine if various public concerns noted in this Interim Ordinance are being sufficiently addressed or if changes may be necessary in order to protect the health, safety and welfare of the public from potential negative impacts that may be associated with solar farms or community solar gardens. Section 4. Prohibition of Solar Farm/Community Solar Garden Applications. During the period of the moratorium imposed by this Interim Ordinance, the City shall conduct a study to help determine the regulatory controls which may need to be adopted or revised to protect the public’s health, safety and welfare related to the aforementioned purposes. In addition, the City shall study the Comprehensive Plan to determine whether an amendment to the Comprehensive Plan is necessary or appropriate, all after completion of any other studies ordered by the City Council and/or the Planning Commission. For the duration stated herein, and until the City has completed studies and adopted any ordinance or amendments to the City’s Development Code or Comprehensive Plan, the City shall not accept, issue or process any applications, permits, or otherwise allow the use of any land within the City for solar farms or community solar gardens Section 5. Duration and Termination. This Interim Ordinance shall expire without further City Council action three (3) months year from the effective date of this Ordinance following final passage by the City Council, or may be repealed earlier if the City Council determines that the requisite studies have been completed and adopted, and that appropriate evaluation and action, including any necessary revisions of the City Code or Comprehensive Plan, have been finalized and adopted by the City Council. Section 6. Effective Date. This Ordinance shall take effect upon its adoption and publication. Passed and adopted by the City Council of the City of Scandia, Minnesota, this 19th day of April, 2016. Randall Simonson Mayor ATTEST: Neil Soltis City Administrator