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6.) Staff Report-PCMemoSolarFarms 5 5 15 Memorandum To: Scandia Planning Commission Reference: Solar Farms Use Considerations and Draft Ordinance Copies To: Kristina Handt, City Administrator Brenda Eklund, City Clerk Project No.: 15745.000 From: Sherri Buss, RLA AICP, Planner Routing: Date: April 27, 2015 Property owners in Scandia have received inquiries regarding the potential to create solar farms on their properties. This use is not currently listed in the Development Code. The Planning Commission discussed this issue on April 7, and noted that the Comprehensive Plan supports the use of alternative energy systems. The Commission discussed two options for adding this use to the Development Code: 1) using the existing performance standards for “Essential Service—Transmission Facilities,” or 2) adopting new Solar Farm use definitions and separate performance standards for this use. The Commission recommended that Solar Farms be considered a unique use, and that definitions and standards be adopted for this use. The Planner developed a draft ordinance based on those adopted in other communities for Planning Commission consideration at the May meeting. Washington County is also considering adopting Solar Farms as a new use with performance standards in the County Zoning Ordinance, but has not developed a draft to date. The draft ordinance attached includes definitions and proposed performance standards. The draft highlights several issues for Planning Commission discussion. Description and Definitions of Solar Farms Solar farms are large-scale installations of solar arrays that are used to generate electricity for utilities. They are typically the principal use on the parcels they occupy, unlike smaller solar energy systems that are accessory uses that typically serve the energy needs of the primary use on the property. Some basic information on Solar Farms is attached (Principal Solar Energy Systems handout) that describes the two major types of systems, and discusses issues related to regulating this use. The Planner also attached some articles with photos that show solar farms in Minnesota. The draft ordinance includes some typical definitions for Solar Farms. Other similar definitions are included in the examples attached. Solar Farms Memo Scandia Planning Commission Page 2 May 5, 2015 Solar Farms—Permitted Locations and Required Permits Many communities permit solar farms in agricultural, commercial and/or industrial districts. Morrison County, Minnesota permits solar farms in all agricultural and commercial districts, and Stearns County permits this use in all rural areas (the Stearns County ordinance does not include the City of St. Cloud or other cities in the county). Rosemount permits solar farms in agricultural, public, and industrial districts. Some communities do not permit solar farms in rural or urban residential districts. Some have also prohibited this use in agricultural districts with high-quality agricultural soils. For example, the Oregon Department of Energy suggests that these systems should not be permitted on properties where Class I, II and/or III soils predominate. Morrison County and other communities prohibit solar farms in the following locations due to potential impacts to sensitive natural resources or habitats:  Designated Shoreland Districts  Within 600 feet of areas designated or protected from development by Federal, State or County agencies as wildlife habitat  Within wetlands Most communities require approval of a Conditional or Interim Use Permit for solar farms. Questions for the PC: If Scandia decides to permit solar farms as a use, where should they be permitted or prohibited within the city? What types of permit(s) should be required? Performance Standards Literature from the American Planning Association and other state and local governments suggest considering the following performance standards for solar farms:  Minimum lot size  Height standards  Setbacks  Lot coverage  Stormwater and erosion control  Design standards, particularly for screening and managing glare  Warning signs  Fencing  Roads and parking  Insurance  Decommissioning equipment when the use ends The example ordinance attached includes proposed performance standards and Conditional Use Permit application requirements for this use that have been adopted by other communities in Minnesota. The Planning Commission should discuss the standards and how these may best be adapted to Scandia. Solar Farms Memo Scandia Planning Commission Page 3 May 5, 2015 Other Considerations The Star Tribune article attached that discusses issues related to solar farms notes the City of Rosemount concerns about lost tax revenues on the parcel where a solar farm was approved. If such projects are approved on parcels that are developable for industrial or other “bricks and mortar” uses, the solar farm may generate much lower taxes than other potential uses. Some cities are negotiating with solar developers to make an annual payment that will make up for lost tax revenue. This issue does not need to be addressed in the ordinance, but the Commission may make a recommendation on the issue to the City Council.