Loading...
7.b 1 ArgoNavisSolarGardenVarianceCUP Council 5.17.16444 Cedar Street, Suite 1500 Saint Paul, MN 55101 (651) 292-4400 (651) 292-0083 Fax www.tkda.com MEMORANDUM To: Scandia City Council Reference: Argo Navis Community Solar Gardens, LLC CUP and Variance Neil Soltis, Administrator Copies To: Brenda Eklund, Clerk Ryan Goodman, PE, City Engineer Nathan Franzen, Applicant James and Kathleen Zavoral, owners From: Sherri Buss, Planner RLA AICP Proj. No.: 16022.009 Date: May 5, 2016 Routing: SUBJECT: Argo Navis Community Solar Gardens Conditional Use Permit (CUP) and Variance Request MEETING DATE: May 17, 2016 LOCATION: 21205 St. Croix Trail North APPLICANT: Nathan Franzen Argo Navis Community Solar Gardens LLC/Geronimo Energy 7650 Edinborough Way, #725 Edina, MN 55435 OWNERS: James and Kathleen Zavoral 5239 Highwood Drive West Edina, Minnesota 55436 ZONING: Agriculture Core (AG C), adjacent to St. Croix Riverway Boundary 60-DAY PERIOD: June 11, 2016 ITEMS REVIEWED: Application, Plans, and supporting materials received April 12, 2016 BRIEF DESCRIPTION OF THE REQUEST: The applicant is requesting a Conditional Use Permit (CUP) and Variance to develop a Community Solar Garden on a site at 21205 St. Croix Trail North, near the intersections of State Trunk Highways 95 and 97. The project footprint is approximately 22 acres in size. The site includes four parcels totaling approximately 87 acres. The site is currently used as the Zavoral Mine and Reclamation Site. The City granted a CUP for mining and reclamation use on the site in 2013, and Annual Operating Permits each year from 2013-2016. Argo Navis Solar Garden CUP and Variance Page 2 May 17, 2016 Scandia City Council BACKGROUND AND PROJECT DESCRIPTION: Agro Navis Community Solar Gardens LLC is requesting a CUP and Variance to develop a community solar garden project up to 3 megawatts (MW) in size on the site that is currently used as an aggregate mine, the Zavoral Mine and Reclamation Project. Mining activities on the site will end in 2016, and the City-approved the reclamation plan for the site that is partially-completed. The implementation of the reclamation plan is scheduled to continue for several years after mining ends. The site is located in the Agriculture Core (AG C) Zoning District, and on TH 95, a State-designated Scenic Byway. A portion of the site is located within the St. Croix Riverway Zoning District. The proposed location for the solar array is outside the Riverway Zoning District and approximately 150 feet from the boundary of the St. Croix Riverway. The St. Croix Riverway is the official boundary of the Lower St. Croix Wild and Scenic River established by the National Park Service. The Riverway Zoning District is a zoning overlay district that was established later than the Riverway boundary. The City’s Solar Ordinance requires a 600-foot setback from the NPS Riverway boundary, not from the Riverway Zoning District. The Crystal Springs Scientific and Natural Area (SNA) is located to the north of the proposed project. The City’s Solar Systems Ordinance (No. 162) includes a performance standard that requires that community solar gardens be setback 600 feet from wildlife habitat areas, wildlife management areas, and National Wild and Scenic Riverway corridors. SNA’s are not specifically mentioned in the ordinance, but can be viewed as wildlife habitat areas. The proposed solar array would be located approximately 150 feet from the St. Croix Riverway boundary and approximately 300 feet from the proposed SNA boundary, and the applicant has requested a Variance from the setback requirements. Site Plan. The Overall Site Plan (C101) shows the proposed location of the solar array on the site. The site access is proposed from TH 95 at TH 97, at the existing driveway serving the mine operation. The solar array is proposed to be placed in the lowest portion of the site. The Site Cross Sections (C501 and C502) show the relationship of the proposed array to the adjacent topography. The project will occupy approximately 22 acres of the site. The applicant stated that the community solar garden will utilize typical photovoltaic panels, central inverters, and a fixed-tilt racking system (similar to the Forest Lake Holdco solar garden). The proposer hopes to begin construction of the project in the fall of 2016 and complete the project by December, 2017. The modules in the solar array will be connected electrically, meeting at one of the central inverters. The inverters will convert the DC power from the modules to AC power. A transformer will step up the voltage to meet the local interconnection voltage of Xcel’s distribution grid. From the inverters, the cable will be buried underground to the point of interconnection (POI) which will be owned by Xcel Energy. At the POI the system will interconnect to Xcel’s existing distribution infrastructure. The applicant states that it will secure all private easements for its facilities, and will complete an interconnection agreement with Xcel Energy and submit it to the City prior to construction of the project. Argo Navis Solar Garden CUP and Variance Page 3 May 17, 2016 Scandia City Council The application states that the maximum height of the solar array will be 15 feet, and that the array will have a vegetated ground cover consisting of a low-growing, pollinator-friendly seed mix. The project will be fenced with an agricultural-type fence and will have site cameras for security, with lockable gates for access. The Overall Landscaping Exhibit (sheet C500) shows the location of the proposed fence, gate, and additional screening. I. CONDITIONAL USE PERMIT REQUEST A. 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 specific performance standards and requirements for Community Solar Gardens (Chapter 2, Section 4.34). This report also analyzes the proposed project based on those standards and requirements. B. 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 encourages other uses that are consistent with agricultural use. The Comprehensive 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 from fossil fuel scarcity and price increases, and help meet Minnesota’s climate protection goals. The plan includes a number of implementation 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, AP, and General Rural (GR) Districts to help to implement the goals and strategies in the Comprehensive Plan. The Comprehensive Plan includes goals and policies for the St. Croix Riverway corridor to 1) protect the scenic resources of the river corridor, including limiting the density, location, and appearance of new Argo Navis Solar Garden CUP and Variance Page 4 May 17, 2016 Scandia City Council development, 2) protect scenic views, 3) encourage visual and physical access at appropriate locations, and 4) improve stewardship of the corridor’s resources. The request is consistent with the land use and alternative-energy goals and policies of the Comprehensive Plan. The analysis of the Variance request will address the consistency with the goals and policies for the St. Croix Riverway corridor. 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, and the minimum parcel size in the AP District is 40 acres. The Development Code requires a minimum road frontage of 300 feet for parcels that are 4.0 acres or larger. The proposed solar array is located on several parcels with a total of nearly 87 acres and over 1000 feet of frontage on TH 95. The request meets the lot size and frontage requirements. Setbacks The structure setback requirements in the AG C District are the following:  150 feet from the centerline or 75feet from the ROW of Minor Arterials, whichever is greater (TH 95)  20 feet side  50 feet rear Additional setbacks for Solar Energy Systems are as follows:  600 feet from areas designated or protected from development by Federal, State or County agencies as wildlife habitat, wildlife management areas, or designated national Wild and Scenic lands or corridors The proposed structures and parcel boundaries are shown on the Overall Site Plan (Sheet # C101) as follows:  Approximately 800 feet from the centerline of TH 95  300 feet from the nearest side parcel boundary  Approximately 600 feet from the nearest rear parcel boundary  Approximately 1450 feet from the OHWL of the St. Croix River  Approximately 200 feet from the nearest bluffline  150 feet from the St. Croix Riverway boundary and 300 feet from a proposed DNR Scientific and Natural Area boundary Most of the proposed setbacks for the solar array meet the Development Code requirements. The proposed location does not meet the required setback from the St. Croix Riverway boundary, and the applicant has requested a variance from the requirement. The request is analyzed in item II. Variance Request, below. Argo Navis Solar Garden CUP and Variance Page 5 May 17, 2016 Scandia City Council 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. The solar equipment and fence are the only structures proposed on the site. Structure Height The Development Code (Solar Ordinance) permits a maximum height of 15 feet for the solar structures. The application states that the maximum height of the solar panels will be 15 feet. The proposed structures meet the height requirement. Lot Coverage The maximum allowable lot coverage is 25% in the AG C District. The Carnelian-Marine-St. Croix Watershed District (CMSCWD) stated in comments on previous solar facility projects that solar arrays designed without permanent foundations and with vegetative cover under the array will not be counted as impervious area. The applicant stated that the proposed array will be erected on posts without permanent foundations so that it may be removed in the future. The area under the array will be planted with a native seed mixture including native grasses and forbs. Many of the species in the proposed mix are identified as pollinator-friendly. 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 the Site Plan. The City Engineer recommended 20-foot wide access driveways to meet public safety requirements. The Planner calculated the impervious area of the parcels based on the Engineer’s recommendation, and estimated that it will be approximately 1.5% of the parcels included in the project after development of the solar farm. The coverage meets the ordinance requirement. Access and Traffic The proposed site access road connects to TH 95. The Planner sent a copy of the application to MnDOT and the City Engineer, and requested that they provide comments and recommended conditions for the CUP. The Planner asked the applicant to estimate traffic levels during construction and operation of the solar farm. The applicant estimated that there will be about 25 trucks used daily for equipment and delivery during construction. After the site is operating, the applicant estimated that one truck per quarter will visit the site. The City Engineer provided the following comments regarding the proposed access and roadways:  Right-of-way shall be secured and recorded along the entire western boundary of the property (Parcel ID 1803219330004) that includes 113 +/- feet in width east of the section line.  The proposed gravel access roads need to be revised to a minimum 20 feet in width to meet public safety requirements. The applicant shall revise the plans to show the required width and a typical section of the gravel access road that will support emergency medical vehicles. Argo Navis Solar Garden CUP and Variance Page 6 May 17, 2016 Scandia City Council MnDOT provided a comment letter to the City on May 3. MnDOT’s comments included the following:  The applicant should label the MnDOT right-of-way on the plan sheets  MnDOT owns a sign restriction over a portion of this property. It is an additional 100’ wide on each side of the right-of way. The sign restriction should be shown and labeled on the plans. The Planner included the Engineer’s recommendations and MnDOT requirements in the proposed conditions for approval. 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, 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.” TH 95 (a State-designated Scenic Byway) is approximately 800-1200 feet to the west of the portion of the array that is nearest to the roadway. The site is currently screened from view from the roadway by berms and plantings that the City required to screen the Zavoral mine activities, and by existing vegetation south of the mine site. There is one existing residence on a parcel to the west of the proposed array, and several other homes across TH 95. The solar array will be oriented to the south. Submittals. The application included four cross sections through the site (sheets titled Cross Sections 1 and 2, labeled Sections A-A, B-B, C-C and D-D); the Overall Site Plan (C101) shows the location of the cross sections on the site. The applicants also included photos of the site taken from nearby homes and Highway 95. The cross-sections and photos indicate the following:  The highest point of the panels will be approximately 35 feet below the ground/roadway level at Section A-A; and 55 feet below the ground level at the nearest home at Section D-D.  The existing berms adjacent to Highway 95 and along the southern boundary of the western parcel that were created to screen the mining project are shown on the cross sections. The cross-sections do not show the existing vegetation on the berms along the roadway. The final reclamation grades identified in the Zavoral EIS, include the removal of some of the berms that screen the site. Argo Navis Solar Garden CUP and Variance Page 7 May 17, 2016 Scandia City Council  Sections C-C and D-D show the existing bluffs and vegetation between the proposed solar array and the St. Croix River.  The applicants have proposed some additional vegetative screening with deciduous trees approximately mid-way on the slopes between the solar array and existing grade at the nearest residence and TH 95 to provide additional screening for the array. The Planner has also included copies of the grading plans and site photos from the Zavoral EIS in the analysis to assist with the discussion of screening. The Planner’s comments on the existing and proposed screening in relation to the ordinance requirements include the following: Screening from public right-of-way of TH 95 and 97. The cross-sections indicate that the existing screening for the mining project and the proposed location of the array below the grade level of the roadway and homes, can screen site and the solar area from views from TH 95 and 97. The existing screening (berms and vegetation) should remain in place to meet the ordinance requirement for screening from public roadways. Screening from adjacent properties and the St.Croix River. The ordinance requires that the solar farm be screened to prevent glare impacts to adjacent properties. The applicant has proposed additional screening on slopes above the array and below the nearest home to screen the array from view from the nearest home to the west. The screening along TH 95 will screen the array from the view of homes to the west of TH 95. Existing vegetation screens the site from view from properties to the north, east, and south and the River. In order to meet the ordinance screening requirements, the Planner suggests the following conditions related to screening for the site:  The site owner and applicant shall maintain the existing berms and vegetative screen for the mine project on the site after mining and reclamation are complete, to screen the solar project from views from TH 95, TH 97, and homes to the west. The Reclamation Plan for the Zavoral Mine and Reclamation Project should be amended as part of the AOP process to indicate that the berms and screening vegetation on the west side of the mine will remain after reclamation is completed.  The applicant shall provide the proposed additional screening shown on the project plans. The screening shall include a mixture of coniferous and deciduous trees and shrubs that are native species to the area. Trees shall be a minimum 6 feet in height at planting.  The owner and applicant shall maintain the existing vegetation between the solar garden and St. Croix River to protect the river and bluffs to the east from views of the project.  The owner and applicant shall maintain the existing vegetation on the parcel to the north and south of the solar garden to protect views from adjacent parcels and the Crystal Springs SNA. The Planning Commission should discuss the location of the array in relation to views from TH 95 and 97 and nearby properties that are within view of the solar garden, and discuss whether the existing and proposed screening are adequate, or if additional screening may be needed to address the ordinance requirements. The Planner has included the bullets listed above as proposed conditions for approval of the application. Argo Navis Solar Garden CUP and Variance Page 8 May 17, 2016 Scandia City Council National Park Service and DNR Comments The Planner sent the application for the Community Solar Garden at the Zavoral site to the National Park Service and Minnesota DNR, and requested their comments. The Agency comments are shown below in italics, with city staff and applicant information and responses following in standard type. National Park Service comments. The National Park Service sent a letter to the City on April 21. The letter stated that “it is unclear whether the applicant has considered a design scenario that would reduce the overall size of the Project so that it would fit within the confines of the gravel pit and still meet the 600-foot setback. The NPS requests that the City of Scandia explore this option before considering the variance request.”  The Planner has modified Figure 8 from the Zavoral EIS to show the approximate location of the St. Croix Riverway boundary, the 600’ setback required by the City’s solar ordinance, and proposed solar garden within the Zavoral site. The figure indicates that moving the solar garden location to meet the 600’ setback would place the northern part of the solar garden on the steep slopes adjacent to TH 95, where it would be more visible than in the mined area at the bottom of the slopes. The southern portion of the solar garden cannot be moved significantly to the west within the site due to slopes and required side lot-line setbacks.  The applicant provided the following response to the NPS comment on April 26: “Both NPS and DNR requested clarification as to the design alternative evaluated by ANCSG when planning the project. Specifically they sought information as to the evaluation of the design of the project such that it would be 600 feet or further from the St. Croix Riverway. ANCSG’s initial plans had the design of the project meeting all of the standards of the City’s ordinance. When ANCSG initiated engineering of the project in support of the CUP, ANCSG’s engineers identified the problematic grades and significant drop in the middle of the project. The resolution to these grades would result in the installation of one or more retaining walls that would subsequently shade the entire solar array negating its usefulness (it would not have sufficient access to the sun). Tiller Corp. provided ANCSG topographic data for the existing reclaimed portion of the mine as well as the proposed final grades as shown in the reclamation plan approved by the City. These grades were then used by ANCSG’s engineers to identify a land area that would be able to accommodate the project while avoiding extreme solutions like large and long retaining walls. ANCSG found that the location it is currently proposing was the only spot that could accommodate the project and also found that there would not need to be any modification of the topography that was proposed in the reclamation plan.” DNR comments. The DNR’s comment letter, dated 4/25/16, included the following comments:  The DNR would be disappointed to see the city approve a variance request to its recently adopted ordinance to site a solar farm within the 600-foot buffer from the St. Croix riverway boundary and the newly established Crystal Springs Scientific and Natural Area (SNA). o As discussed in the Variance section, below, the 600-foot buffer was a City staff suggestion that was adopted in the ordinance with the goal of protecting the visual character of the Riverway and wildlife management areas. The cross-sections provided by the applicant Argo Navis Solar Garden CUP and Variance Page 9 May 17, 2016 Scandia City Council (Drawing C 502 in the plans) and the viewshed analysis completed for the Zavoral Mine and Reclamation Project EIS show that the proposed solar garden will not be visible from the Riverway if it is placed in the low, flat area where mining was completed on the site. If the solar garden is moved to the west to try to meet the 600-foot setback requirement, it would be located on the steep slopes adjacent to TH 95 and would be more visible from the Scenic Byway and adjacent properties than in the location the applicant proposes. Granting the variance would meet the goals for Riverway protection better than requiring the setback in this case. Variances are permitted by the Development Code to address unique issues (“practical difficulties”) on individual sites.  There is no discussion of what the visual impact would be as viewed form the St. Croix River. DNR requests a viewshed analysis be completed to demonstrate that the solar panels would not be viewed from the river. o The application included cross-sections through the site to show the visual relationship of the site to the St. Croix River—Site Cross Sections 2, Drawing C502. The cross sections show that the site will not be visible from the river. o The detailed Visual Impacts analysis in the Zavoral EIS, Section ES 2.12, concluded that “The (Mining) Project would not be visible from the Riverway or from the Wisconsin bluffs on the east side of the river. No part of the Project Site is visible from the river, which is located at a lower elevation than the Site. Bluffs vegetated with stands of trees (with an estimated height of 60 feet) along the east side of the Site block all views of the Site from any location on the river. The vegetated bluffs also block views from the bluffs on the Wisconsin side of the river.” The DNR participated in the review of the Zavoral EIS, and provided no comments on the Visual Impacts analysis. o The solar garden is proposed to be located in the lowest, flat portion of the site where mining was completed, and where the Zavoral EIS viewshed analysis and applicant’s cross-sections indicate that the project will not be visible from the river.  The applicant indicates that they have been working with DNR on development of the site plan to address natural resources concerns…however further coordination is necessary…the CUP does not include consideration of other DNR guidance and recommendations for vegetation and maintenance that have been incorporated into other projects that DNR has worked on in the past with this applicant. o If the DNR has guidance and recommendations for vegetation and maintenance that it wishes the City to consider for the CUP, it should provide that specific information to the City during the CUP-review process. The City will work with the applicant and land owner to finalize the seeding plan, management and maintenance plan for the site. The applicant’s letter dated April 26 indicates that they will voluntarily consult with the DNR regarding the vegetation maintenance and management plan for the site.  It is not clear how the reclamation condition in the mining permit would be affected. DNR supports the mine reclamation plan put in place for the mining permit…DNR recommends that the solar farm layout plans allow for maximizing the area to be reclaimed to prairie as much as possible. Solar projects, even when planted in native prairie grasses, do not achieve the same level of species benefit as prairie that does not include structures or is fenced in. Argo Navis Solar Garden CUP and Variance Page 10 May 17, 2016 Scandia City Council o The proposed conditions for approval include a condition that the City will coordinate the Zavoral Mine and Reclamation Plan with the proposed solar garden use in the Annual Operating Permit for the Mine project. o The solar garden applicant has proposed a short-grass seed mix that has the same level of diversity to the mix approved in the Zavoral Mine Reclamation Plan, but with shorter grass and sedge species. The area proposed for planting is the same area proposed for planting in the Reclamation Plan. The applicant’s letter dated April 26 noted that “The primary deviation from the Reclamation Plan is in vegetation. Much of the vegetation proposed in the Plan grows to heights that would be prohibitive for the solar project. ANCSG (the applicant) proposed to use native, pollinator-friendly plants and intends to develop the seed mix for the site in coordination with the DNR with a preference for seeds to come from a local seed source.  If this CUP application is approved, DNR would expect that the same DNR-recommended approaches implemented by the applicant at other solar farms be considered for this site. Additional considerations should be made to avoid and minimize impacts to sensitive resources such as the SNA or listed species in the area. If approved, DNR’s recommendations for conditions include: o Work with DNR to identify an appropriate seed mix to this site. Seeds should come from a local seed source, seed tags on the bag should state that the mix is “noxious weed free” and they should be Pure Live Seed certified. The Planner has included the proposed requirements for a local, weed-free, and PLS mix in the proposed conditions for approval. o There are several natural resources on or adjacent to the site that should be considered in final design and maintenance. DNR recommends that the applicants request that a Natural Heritage Information System review be completed. The previous review completed for the EIS is no longer valid. Since the proposed project site is entirely within the mined and disturbed area on the Zavoral site, it is unlikely that new rare features are located within or near the project area. The ordinance does not require the applicant to update the Zavoral Mine EIS and has not required any solar garden/farm applicant to obtain the NHIS data. The applicant’s memo dated April 26 stated that it will voluntarily obtain a new NHIS report. o Confirm setback from the SNA and other state-listed or rare features. The Planner added a condition that the applicant shall confirm the setback from the Crystal Springs SNA. The ordinance does not require setbacks from state-listed or rare species. o The site is adjacent to Zavoral Creek/Crystal Springs, a high-quality trout stream. DNR recommends that dust control for construction or maintenance activities be limited to the use of water only (no added suppressants) and that erosion control practices be in pace to avoid surface runoff discharge. The Planner added a condition requiring dust control using water only. The proposed conditions require the applicant to obtain City and Watershed District permits to address stormwater management and erosion control. o Work with DNR on the Vegetation Maintenance and Management Plan. Argo Navis Solar Garden CUP and Variance Page 11 May 17, 2016 Scandia City Council The applicant will work with the city of the final vegetation maintenance and management plan. The City will also coordinate this work with Tiller Corporation and the approved Reclamation Plan for the Zavoral Mine Site. The DNR may provide recommendations to the City for the plan. The applicant indicated that it would consult with the DNR on the plan. o Native vegetation that is currently on the site should be maintained or it should be verified that there are no state protected species prior to removal. The proposed solar garden site and area of proposed disturbance are entirely within the area that has been mined. There are no native plant communities or species within the site. The WCD has confirmed that there are no wetlands on the site. The proposed conditions require the site owner and applicant to maintain the existing vegetation adjacent to the mine site. o The DNR may have additional recommendations for the security fence design to avoid and minimize the possibility that an animal become trapped within the enclosure. The applicant is proposing an “agricultural field” type fence, which would allow for turtles and other wildlife to travel through the site. The DNR may provide additional recommendations for the Planning Commission or City Council to consider. o Erosion control measures implemented onsite should be wildlife friendly. The DNR has included an attachment with this letter. The City will provide the attachment to its Engineer and to the Carnelian-Marine Watershed District for inclusion in the erosion control permit requirements. Wastewater Treatment No wastewater treatment is needed for the proposed solar farm. Land Alteration, Grading, and Stormwater Management The Civil Site Plan (Plan Sheet C200) shows the proposed site contours. The site parcels will drain from the west and north into the site, which is lower than the surrounding areas. The applicant will seed the site with a low-growing, pollinator-friendly seed mix composed of native species with oats as a cover-crop. The Planner sent a copy of the application to the Carnelian-Marine-St. Croix Watershed District (CMSCWD) and to the City Engineer for review. The Watershed District provided the following comment: “If approved by the City, the variance for setback from the St. Croix River would trigger a CMSCWD Permit and compliance with Rules 2 (Stormwater Management), 3 (Erosion and Sediment Control) and 4 (Buffers).” The City Engineer provided the following comments related to grading and stormwater management: 1. The 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. The proposed locations of grading activity and submittal of a grading plan. b. An erosion and sediment control plan shall be prepared for construction activities. 2. All site work shall be in compliance with the rules of the Watershed District. Argo Navis Solar Garden CUP and Variance Page 12 May 17, 2016 Scandia City Council The Planner has included the following conditions based on the CMSCWD and Engineer comments:  The applicants shall obtain all required Watershed District permit(s) for the project.  The applicants shall address all of the City Engineer comments included in his letter dated April 19, including obtaining the required Grading/Land Alteration permit and obtaining required permits.  The applicants shall obtain all required MnDOT permit(s). Wetlands The site is currently being mined, and no wetlands exist within the proposed project area. Jed Chesnut of the Washington Conservation District completed the wetland identification and monitoring for the Zavoral Mine and Reclamation Project, and is actively monitoring the site and the Reclamation Plan on behalf of the City. Jed’s comments regarding wetlands on the site included the following:  “In 2011 as part of the development of the currently operational Zavoral Mine and Reclamation Project, the proposed Argo Navis site was investigated for the presence of regulated wetlands. Through the formal review process, it was determined that there were no regulated wetlands within the mine site, including the area which corresponds to the proposed location of the Argo Navis Solar Garden.” Jed attached the Wetland Conservation Act Notice of Decision for reference. 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 Planner requested additional information about the proposed fence, and the applicant stated that the fence will be an agricultural “field” fence with a lockable gate. If it is less than six feet in height, the fence would not require a permit. The Development Code includes the following fence requirements that are applicable to this site:  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 Solar Ordinance requires that all mechanical equipment shall be completely enclosed by a minimum eight-foot high fence with a self-locking gate, and the equipment shall be screened. Argo Navis Solar Garden CUP and Variance Page 13 May 17, 2016 Scandia City Council 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. Environmental Issues The generation of solar energy on the site will not use water, and will not produce noise or emissions. The applicants will need to comply with Watershed District and City regulations related to stormwater management and erosion and sediment control, and comply with ordinance requirements and conditions to prevent glare. Potential impacts to the St. Croix Riverway are discussed in the Variance section, below. 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 included a copy of the proposed Interconnection Agreement with Xcel Energy. 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 applicant provided a copy of the organization’s Certificate of Liability Insurance. The Planner has included conditions for approval of the CUP that require the applicant to complete the 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 maintain liability 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 plan includes a cost estimate of $50,000 per megawatt to complete the decommissioning tasks. 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 shall complete a Developer Agreement with the City. The Agreement shall include a financial guarantee acceptable to the City to assure compliance with the Decommissioning Plan. Argo Navis Solar Garden CUP and Variance Page 14 May 17, 2016 Scandia City Council C. 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 for roadway use. The use will not create noise impacts on surrounding areas. The solar garden is proposed in a location that is well-below the grade level of surrounding properties and TH 95 and 97. The location and the existing and required vegetative screening will provide significant screening of the project site from public roadways and adjacent properties. Based on the conditions required for approval and operation of the Community Solar Garden, 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 The site was previously mined and generated significant traffic. The proposed use will create traffic during construction that will be a reduction from the traffic generated by the mining use. The applicant estimates that the site will generate approximately 15-35 trips per day during construction of the Solar Farm. After construction, the site will generate a few trips each quarter to maintain the facility. The number of trips is within the capacity of TH 95 and 97. The applicant is required to obtain access permits from MnDOT, and abide by the conditions of the permits. The use does not require dedicated parking. Based on the estimated traffic levels and need to obtain the required MnDOT permit, 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 will be screened from views from the St. Croix Scenic Riverway, TH 95 (a State-designated Scenic Byway) and adjacent properties based on its elevation in relation to surrounding grades, by existing berms and vegetation, and by additional vegetative screening. The conditions require the applicant to maintain the existing that screens the site from views from the St. Croix River and parcels to the north. The proposed use will not produce noise, emissions or other Argo Navis Solar Garden CUP and Variance Page 15 May 17, 2016 Scandia City Council impacts that would negatively affect property values. With the required conditions for approval, the proposed use is not likely to 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 (AG C) District. The Comprehensive Plan supports long-term agriculture and uses related to agriculture in these districts. The city’s Solar Ordinance permits the proposed use in the AG C District. The Plan also 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 and approval of the requested Variance, 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 wetland buffer areas. The project will not impact air quality. Based on the conditions required for approval and operation of the Community Solar Garden, 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 AG C District. The findings support granting the Conditional Use Permit request. Argo Navis Solar Garden CUP and Variance Page 16 May 17, 2016 Scandia City Council II. VARIANCE REQUEST The applicant has requested a variance from the performance standard in the City’s Solar Ordinance that requires that community solar gardens be setback 600 feet from wildlife habitat areas, wildlife management areas, and National Wild and Scenic Riverway corridor. The proposed solar array would be located approximately 150 feet from the St. Croix Riverway boundary and approximately 300 feet from the proposed Crystal Springs SNA boundary. Background: Origin of and Rationale for the 600-foot Setback Requirement Nearly all of the solar ordinances adopted in Minnesota include setback requirements from wildlife habitat areas, wildlife management areas, and other areas of special natural resource concern. Early literature that described “model” ordinances for solar facilities at the national and state level recommended setba cks from areas providing habitat or with other special qualities, without a stated rationale or recommended setback distance for the setbacks. The first solar ordinances adopted in Minnesota included the recommendation that solar farms and gardens be setback 600 feet from wildlife habitat areas, and these standards were referenced at MPCA workshops for communities developing solar ordinances. Many communities utilized this information in developing their solar ordinances, as did Scandia. The DNR Hydrologist serving Scandia stated that the DNR did not recommend these setbacks—though they did recommend that solar farms and gardens not placed in Shoreland and Wetland areas. The source of the specific 600-foot setback size that was adopted in the first Minnesota solar ordinances and most ordinances since is unknown. The Planner included the proposed setbacks from wildlife habitat areas and management areas from other ordinances in the list of potential performance standard for the Planning Commission to consider in developing the Scandia Ordinance. She recommended that the St. Croix Riverway be added to the list of areas proposed for the setback requirement to be consistent with the policies in the Comprehensive Plan that viewsheds should be considered and protected in the siting of structures near the St. Croix River Corridor. The recommendation was also consistent with performance standards for other uses permitted in the City’s Development Code, such as Wireless Communication Antennas and Towers and Wind Energy Conversion Systems that protect scenic viewsheds and views within the Riverway corridor. The Planning Commission approved the proposed performance standard for the Solar Ordinance without specific discussion. The goals of the performance standard in the Solar Ordinance were:  To protect views of and within the Riverway corridor from structures that could impact the scenic character of the corridor, or scenic views from the River itself; and  To protect the wildlife values of the Corridor or wildlife management areas from potential impacts of solar gardens and farms, such as visual impacts, impediments to wildlife movement or activities, and impacts to habitat from storm water and erosion. A. CRITERIA FOR VARIANCES AND FINDINGS Chapter 1, Section 6.0 of the Development Code and Minnesota Statutes 462.357 include the criteria and required process for granting variance requests. Argo Navis Solar Garden CUP and Variance Page 17 May 17, 2016 Scandia City Council Variances may only be granted when the terms of the variance are consistent with the Comprehensive Plan and in harmony with the general purpose and intent of the development code. The other variance criteria include: 1. The applicant proposes to use the property in a reasonable manner not permitted by the Development Code. 2. The plight of the landowner is due to circumstances unique to the property not created by the landowner. 3. The variance, if granted, will not alter the essential character of the locality. 4. Economic conditions alone shall not constitute practical difficulties. 5. The proposed variance will not impair an adequate supply of light and air to adjacent property, or substantially increase the congestion of the public streets, or increase the danger of fire, or endanger the public safety, or substantially diminish or impair property values within the neighborhood. 6. The required variance is the minimum action required to eliminate the practical difficulty. 7. Practical difficulties include, but are not limited to, inadequate access to direct sunlight for solar energy systems. B. APPLICANT’S RATIONALE FOR THE VARIANCE The applicant noted the following in his rationale for the variance request:  Avoids placement of the array on the challenging grades on the site  Aligns the project with the city-approved Reclamation Plan for the mine project  Allows for natural screening of the solar garden  Locates the solar garden in the area of existing disturbance on the site  The location will best mitigate potential visual impacts that would otherwise occur along the Scenic Byway and Corridor by creating a larger setback from TH 95, and by using existing topography, berms, and vegetation on the site. C. PLANNER’S FINDINGS FOR THE VARIANCE REQUEST The following bullets present the Planner’s findings related to applicant’s request for a variance, based on the criteria for granting a variance. Each of the criteria is shown in italics, with the analysis in standard text that follows:  Variances shall only be permitted when they are in harmony with the general purposes and intent of the official control. The 600-foot setback requirement in the Solar Ordinance was adopted primarily to be implement policies in the Comprehensive Plan to protect viewsheds of and within the St. Croix Riverway corridor. It was also adopted to protect wildlife habitat areas from potential visual and physical impacts of solar gardens, such as stormwater and erosion. The viewshed analysis in the Zavoral Mine and Reclamation EIS concluded that no part of the project site is visible from the river, and that the existing bluffs and vegetation block all views of the Site from any location on the river. The applicant’s proposed site plan places the solar garden in a location Argo Navis Solar Garden CUP and Variance Page 18 May 17, 2016 Scandia City Council that is significantly lower than TH 95, TH 97, and surrounding properties. The proposed site plan and conditions for the CUP require that the applicant and owner work with the City and Tiller Corporation to revise the Reclamation Plan approved for the Zavoral Mine and Reclamation Project to include additional vegetative screening and modify the berms to protect views from TH 95. The conditions require that the applicant install a “field” type fence design that has been approved by the Minnesota DNR for similar projects to address potential wildlife impacts. The proposed use will not create noise, stormwater runoff, or other impacts to the proposed SNA or wildlife habitat within the Riverway District. The Planner finds that the proposed location of the array at a low position within the site, the modifications to the Reclamation Plan, the additional screening required, and the proposed fencing, the proposed site plan is in harmony with the general purposes and intent of the Comprehensive Plan and Development Code to protect views of and within the Riverway from structures that may negatively impact scenic views, and is in harmony with the purpose and intent to protect wildlife habitat areas from potential impacts of the proposed use. Approval of the variance to permit construction of the project in the previously mined area will protect views from surrounding properties and public roadways; construction of the project in a location that met the setback requirements would make it more visible and violate the intent of the ordinance.  The property owner proposes to use the property in a reasonable manner under the conditions allowed by official control(s). Community Solar Gardens are permitted, and therefore reasonable, uses in the Agriculture Core (AG C) District. The proposed use is a reasonable use based on the official controls.  The practical difficulties are not caused by the landowner, and are unique to the property. The practical difficulties are unique to the property, and include the steep slopes on the site that result from its use as a gravel mine under a previous owner. The proposed location maintains the widest possible setback from the Riverway boundary and proposed SNA, while placing the structure outside the steep slope areas where it would be more visible from the public roadway and adjacent properties.  The variance would not alter the essential character of the area. The parcel has been used as a gravel mine in recent years and in the past. The proposed use will have less potential impact to the character of the area than the mine operation. The proposed location of the Community Solar Garden below the grade of adjacent parcels, and the conditions requiring maintenance of existing screening and addition of new screening will preserve the essential character of the surrounding area.  Economic conditions alone shall not constitute practical difficulties. Argo Navis Solar Garden CUP and Variance Page 19 May 17, 2016 Scandia City Council The practical difficulties are the result of the steep slope areas on the site where the array could be viewed from public roadways and adjacent properties. The practical difficulties are not only economic in nature.  The proposed variance will not impair an adequate supply of light and air to adjacent property, or substantially increase the congestion of the public streets, or increase the danger of fire, or endanger the public safety, or substantially diminish or impair property values within the neighborhood. With the proposed solar garden location on the site and conditions required for screening, the proposed variance will not impair the supply of light or air to adjacent properties, increase congestion, endanger the public, or substantially diminish or impair property values in the neighborhood.  The required variance is the minimum action required to eliminate the practical difficulty. The variance permits construction of the solar array in a location that is setback as far as possible from the Riverway boundary while placing the array in a location where it will be screened from view to meet the Development Code requirements. The proposed variance is the minimum action needed to eliminate the practical difficulty.  Practical difficulties include, but are not limited to, inadequate access to direct sunlight for solar energy systems. The proposed Community Solar Garden location meets the use’s need for direct sunlight for solar energy systems. The findings support granting the variance to permit the location proposed for the Community Solar Garden. III. PLANNING COMMISSION PUBLI C HEARING, DISCUSSION AND RECOMMENDATIONS The Planning Commission held a public hearing on the CUP and Variance application at its meeting on May 3. The Commission received numerous verbal and written comments about the project, including:  Concerns from an adjacent property owner regarding the berms, related drainage issues, and light poles on the site  Questions about the water well on the site and fence proposed  Concerns about site views and the aesthetics of solar arrays  Concerns about the proposed seed mix and revision of the Reclamation Plan for the Zavoral Mine and Reclamation Project  Proposed screening and potential impacts on property values  Long term management of the site and potential to preserve natural resources on the Zavoral property and utilize opportunities to view and interpret the St. Croix River Valley Argo Navis Solar Garden CUP and Variance Page 20 May 17, 2016 Scandia City Council The Commission discuss the comments, and made several recommendations to revise the proposed conditions to remove the additional screening proposed by the applicant, add screening at the northwest area of the site, address berms on the site through amendments to the Reclamation Plan and 2016 Zavoral Mine AOP, and modify the fencing proposed to use a fence design recommended by the Minnesota DNR for other similar solar projects. The Commission recommended that final approval of the Argo Navis Solar Garden be contingent on amendment of the Reclamation Plan and 2016 AOP for the Zavoral Mine and Reclamation Project to address berming, plantings and seeding, and long-term maintenance of the site. With the revised conditions, the Commission recommended approval of the CUP and Variance for the project. IV. ACTION REQUESTED: The City Councl can recommend the following: 1. Approve the request. 2. Approve the request with conditions. 3. Deny the request with findings. 4. Table the request. V. PLANNING COMMISSION RECOMMENDATIONS: The Planning Commission recommends approval of a Variance and Conditional Use Permit to locate a Community Solar Farm on Solar Farm at 21205 St. Croix Trail North. The Commission recommends the following conditions for the CUP: 1. The project shall be in substantial compliance with the plans submitted to the City on April 12, 2016, and shall submit updated plans to the City to address the items identified for review and approval in these conditions before a building permit shall be approved for the project. 2. The Solar Farm shall be in compliance with all applicable local, state and federal regulatory standards, including the current Minnesota Building Code, the National Electric Code, the State Plumbing Code and the Minnesota Energy Code. 3. The property owner shall secure and record the right-of- along the entire western boundary of the property (Parcel ID 1803219330004) that includes approximately 113 feet in width east of the section line. 4. The applicant shall revise the plans to show proposed gravel access roads that are a minimum width of 20 feet to meet public safety requirements. The applicant shall include a proposed typical section of the gravel access road to show that it will support emergency medical vehicles. 5. The solar farm shall be designed, located, and/or screened to prevent reflective glare toward any inhabited buildings on adjacent properties and adjacent street rights of way. 6. The City shall work with the applicant, owner, Tiller Corporation, and the Washington Conservation District to revise the Reclamation Plan and amend the 2016 Annual Operating Permit for the Zavoral Argo Navis Solar Garden CUP and Variance Page 21 May 17, 2016 Scandia City Council Mine and Reclamation project. The revised Reclamation Plan shall address berms, vegetative screening, the planting plan and seed mix, and a maintenance plan for the site through the completion of the Mining Project and for the lifetime of the Solar Garden project. The plan shall assure adequate screening to protect views from public roadways to meet the Solar Ordinance requirements, and to preserve the viewshed of the St. Croix River Valley. The approval of the Conditional Use Permit for the Argo Navis Solar Garden shall be contingent upon City Council approval of the revised Reclamation Plan and amended Annual Operating Permit. 7. The seed mix approved for the site shall require that seeds shall come from a local seed source, seed tags shall state that the mix is noxious weed free and Pure Live Seed Certified. 8. The owner and applicant shall maintain the existing vegetation between the solar garden and the St. Croix River bluffs to protect the river and bluffs to the east from views of the project. 9. The owner and applicant shall maintain the existing vegetation on the parcel to the north and south of the solar garden to protect views from adjacent parcels and the proposed Crystal Springs SNA. 10. The applicant shall confirm the setback from the Crystal Springs SNA. 11. The applicant shall complete dust control during construction using water only, with no added dust- suppressant. 12. The applicant shall obtain the following permits: a) All required Watershed District permit(s). b) The required Grading/Land Alteration Permit from the City. c) All necessary permits and approvals from MnDOT for the proposed access at TH 97. 13. The applicant shall address the City Engineer’s comments included in his letter dated April 19, 2016, including: a) The applicant shall identify the proposed locations of grading activity on the grading plan, and shall include an erosion and sediment control plan for construction activities in the application. b) All site work shall be in compliance with the rules of the Watershed District. 14. The applicant shall address MnDOT’s comments included in its letter dated May 3. 15. The applicant shall comply with the Development Code and Solar Ordinance requirements for the following items: a) Fencing requirements: The applicant shall use the fence design recommended by the Minnesota DNR for other solar garden projects. The applicant shall obtain an Administrative Permit for the fence if it exceeds 6 feet in height. b) Lighting and signage c) Signs. d) Interconnection agreement: 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. Argo Navis Solar Garden CUP and Variance Page 22 May 17, 2016 Scandia City Council e) Proof of insurance: The applicant shall submit proof to the City that it has obtained and maintains general liability insurance that meets the ordinance requirement. f) Developer agreement: The applicant shall complete a Developer Agreement with the City. The Agreement shall include a financial guarantee acceptable to the City to assure compliance with the Decommissioning Plan. 16. Any expansion of the Solar Farm shall require an amended conditional use permit. 17. The applicant shall pay all fees and escrows associated with this application.