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HomeMy WebLinkAbout2015-11-23 PACKET 06.4.STAFF REPORT CASE: TA2015-046 ITEM: 6.4 PUBLIC MEETING DATE: 11/23/15 TENTATIVE COUNCIL REVIEW DATE: 12/16/15 APPLICATION APPLICANT: SunShare, LLC REQUEST: A zoning text amendment to allow community solar gardens or solar farms within the Transition Planning Area, as shown in the City of Cottage Grove Future Vision 2030 Comprehensive Plan, for approximately 430 acres of land. SITE DATA LOCATION: ZONING: GUIDED LAND USE: South of 100th Street between Hadley Avenue and the southerly extension of Jamaica Avenue AG -1, Agricultural Preservation, and AG -2, Agricultural Industrial and Transition Planning Area LAND USE OF ADJACENT PROPERTIES: CURRENT NORTH: Industrial EAST: Agricultural SOUTH: Agricultural WEST: Agricultural SIZE: Approximately 430 acres RECOMMENDATION GUIDED Industrial Industrial Transition Plan Area Transition Plan Area Denial, based on the facts and findings in this Planning Staff Report. cottage COTTAGE GROVE PLANNING DIVISION � Grove ere PH& and....... Meet Planning Staff Contact: John McCool, Senior Planner; 651-458-2874; Imccool(c cottage-grove. org Application Accepted:. 10/19/15 60 -Day Review Deadline: 12/17/15 City of Cottage Grove Planning Division • 12800 Ravine Parkway South • Cottage Grove, MN 66016 Planning Staff Report SunShare, LLC — Zoning Text Amendment (Solar Collection) Planning Case No. TA21015-046 November 23, 2015 Proposal SunShare, LLC has applied for a zoning text amendment to City Ordinance No. 948, Solar Col- lector Systems to add approximately 430 acres of land located south of 100th Street, between Hadley Avenue and Jamaica Avenue to Exhibit "A" of Ordinance No. 948. Exhibit "A" is a map showing areas within the community where community solar gardens and solar farms are allowed by conditional use permit. Below is SunShare's illustration showing the 430 acres (highlighted in yellow) they are requesting to added to Exhibit "A" for Ordinance No. 948. SunShare, LLG's Proposed Ord. No. 948 Amendment— Exhibit "A" Planning Staff Report SunShare, LLC — Planning Case No. TA2015-046 November 23, 2015 Page 2 of 8 Review Process Application Received: October 19, 2015 Acceptance of Completed Application: October 19, 2015 Tentative City Council Date: December 16, 2015 60 -Day Review Deadline: December 17, 2015 Background Beginning in May 2015, the Planning Commission and Environmental Commission initiated discus- sions about regulating solar collections systems since Cottage Grove's City Code did not allow solar collection systems in the community. City staff had reported that inquiries from solar collector com- panies and property owners pertinent to solar collection regulations were increasing. The Planning Commission and Environmental Commission generally supported solar collection systems on roof- tops and walls for permitted uses in the agricultural, residential, commercial, and industrial zoning districts, but recommended a solar collection system ordinance be prepared. As reported to the Commissions earlier this year, public interest pertaining to commercial solar col- lection systems was increasing because the State of Minnesota Legislature mandated that they make solar power a more appealing option for home and business owners and that "each public utility shall generate or procure sufficient electricity generated by solar energy to serve its retail elec- tricity customers in Minnesota so that by the end of 2020, at least 1.5 percent of the utility's total retail electric sales to retail customers in Minnesota is generated by solar energy." It was also reported that interest in solar technology is apparently growing and costs for alternative energy systems are beginning to decrease. The City has allowed a limited number and size of solar energy systems as accessory uses to pro- vide ancillary electric energy for the principal use on the property. These ancillary solar systems were treated as other accessory uses in respect to yard setbacks and other applicable zoning standards. For free-standing and large-scale utility systems, City staff reported that systems proposed as a principal use were not allowed in the community. The Planning Commission discussed solar collection regulations on May 18, June 22, and July 27, and the Environmental Commission on July 8. A draft solar energy ordinance was presented to the Planning Commission and Environmental Commission members at a joint workshop meeting on August 24. The draft solar ordinance incorporated many different ordinance examples from other counties and cities to appropriately address various issues associated with this land use. Some of the regulations recommended in the draft ordinance were unique to Cottage Grove. Examples of these regulations are: 1) prohibiting solar collector systems on accessory structures; 2) prohibiting free-standing solar systems on property with less than five acres of land; 3) prohibiting solar collector systems on the face of a residential dwelling that faces a public street; and 4) requiring community solar garden and solar farms to be outside the Metropolitan Urban Service Area (MUSA). A SunShare representative attended the joint workshop and requested that the draft ordinance lan- guage pertaining to companies providing the City with a copy of the agreement with Xcel Energy not be required when filing a conditional use permit application but to provide a copy of the agreement once it is executed with Xcel Energy. They also requested that the ordinance be modified to provide Planning Staff Report SunShare, LLC — Planning Case No. TA2015-046 November 23, 2015 Page 3 of 8 a graduated amount for financial security instead of a surety at the beginning of the project and to allow solar collection systems on property located within the MUSA. The proposed ordinance regu- lations for financial guarantees and allowing solar collection systems inside the MUSA as drafted in the ordinance was not changed. The public hearing for adopting a solar collection systems ordinance was held by the Planning Commission at their regular meeting on September 28, 2015. At this meeting, the Commission re -affirmed that community solar garden and solar farms should only be allowed outside the Met- ropolitan Urban Service Area (MUSA) and that a conditional use permit is required. Several prop- erty owners stated their support for the solar collector system ordinance. One property owner requested that community solar gardens and solar farms be allowed inside the MUSA. The Plan- ning Commission unanimously (8 -to -0 vote) recommended to the City Council that the proposed solar collection system ordinance as drafted and presented at the public hearing be approved. The City Council adopted Ordinance No. 948, a solar collector system ordinance on October 7, 2015. A copy of this ordinance is attached. Planning Considerations Metropolitan Urban Service Area (MUSA) At the Planning and Environmental Commissions workshop, there was a general understanding why land within the MUSA is important for Cottage Grove's future growth along maintaining the availability of public utilities for planned development within the MUSA. The City's investment in providing city utilities in certain areas in the community was completed in the West Draw, East Ravine, and South- west District with the anticipation that development was going to occur in the future. With large utility - scale solar collector systems occupying land within the MUSA, development interests might be delayed or deterred on adjoining lands. The Planning Commission's recommendation to the City Council included a regulation requiring all community solar gardens or solar farms to be located outside the MUSA. Their recommendation also included City Council approval of a conditional use permit and required a minimum land area of five acres for all free-standing solar collection systems. The MUSA boundary line for Cottage Grove is depicted in the illustration shown below. Planning Staff Report SunShare, LLC — Planning Case No. TA2015-046 November 23, 2015 Page 4 of 8 Metropolitan Urban Service Area (MUSA) Boundary Transition Planning Area In advance of the City Council meeting on October 7, 2015, City staff was asked to provide an ad- dendum to the proposed solar ordinance that not only requires large -utility solar collector systems to be outside the MUSA, but also the "Transitional Planning Areas" as designated on the Future Land Use 2030 map in the adopted Future Vision 2030 Comprehensive Plan. Transitional Planning Areas are located outside the MUSA and are areas where additional planning efforts are required prior to establishing future land use designations. It was intended that a master plan would be prepared for each transitional planning area once the development staging plan for a particular Transitional Planning Area is adequately addressed in the City's Comprehensive Plan. The Transitional Planning Areas are shown below in the dark navy blue color on the Future Land Use 2030 map. Planning Staff Report SunShare, LLC — Planning Case No. TA2015-046 November 23, 2015 Page 5 of 8 ( Palh Cottage �� Grove %.,e Pride .n6?msperity neet Cottage Grove Future Land Use 2030 _ �^ The packet of information and draft solar collection system ordinance and an amendment alternative were distributed to the City Council in advance of their meeting on October 7, 2015. This option merely proposed a change to the following ordinance text: D. Community Solar Garden or Solar Farm. A conditional use permit is required for community solar garden or solar farm systems and must be located outside the Metropolitan Urban Service Area (MUSA) and not designated "Transition Planning Area" as shown on the Future Land Use 2030 map in the adopted Comprehensive Plan. Utility -scale is defined as an energy system that is the primary use of land, designed to provide energy primarily to off-site users or export to the wholesale market. Utility -scale solar energy systems are allowed in all zoning districts. A minimum of five acres of land is required. Prior to the City Council meeting for October 7, staff was asked to provide another option to the proposed ordinance that excluded areas outside the MUSA that are along State Highway 61 and land in the proximity of the City's Business Park. This alternative resulted in the preparation of a map (Exhibit "A") depicting areas in the community where solar collection systems would be allowed as a principal land use with approval of a conditional use permit. A copy of Exhibit "A" in Ordinance No. 948 is shown below. Planning Staff Report SunShare, LLC — Planning Case No. TA2015-046 November 23, 2015 Page 6 of 8 Exhibit "A" in Ordinance No. 948 The proposed changes to the Planning Commission's recommended approval for the solar collection system ordinance were distributed to individuals that had expressed interest in the proposed ordi- nance before the October 7 City Council meeting. Randall Kroll submitted a letter dated October 6, 2015, objecting to changes to the Planning Commission's recommendation and SunShare had sub- mitted a letter (dated October 7, 2015) stating their opposition regarding the proposed ordinance text language not allowing community solar garden or solar farms in the Transitional Planning Area. A copy of both letters were distributed to the City Council prior to the October 7 meeting, and are attached to this planning staff report. One of the reasons for excluding community solar garden and solar farms from the Transition Plan- ning Area along the south side of 100th Street was because the Business Park may need to be expanded in the future. Because of the availability of City utility services on the north side of 100th Street that could easily be extended to the south, the renewed development interests within the Business Park and the 100th Street collector street designation, concern was expressed for the future ability to expand the Business Park if adjoining land had developed for community solar garden and/or solar farm use. Planning Staff Report SunShare, LLC — Planning Case No. TA2015-046 November 23, 2015 Page 7 of 8 The illustration below shows the Business Park outlined in purple. Developed parcels within the Business Park are highlighted in pink and represent approximately 310 acres (about 45 percent) of the 680 -acre Business Park. The light green areas represent approximately 289 acres (about 43 percent) of vacant land within the Business Park. Two new projects are proposed within the Business Park; one project is proposed to be located on nine acres of land and the other project on approxi- mately six acres of land. Both projects have contingency plans for acquiring additional land for future expansion. Cottage Grove Business Park— Vacant and Developed Properties CGrtnge r Ym�e kgen Tideanee�osW�W Peee COTTAGE GROVE BUSINESS PARK LEGEND butlnn. PaM1 Nee l Awiabh Land _ fay." Paecek _ Peh and Open Space mvwArwvuVeAiwe W.apn M.: 11/112015 Concern was also expressed for future development opportunities and potential impacts community solar gardens and/or solar farms might have along State Highway 61. For these reasons, the City Council was presented with a draft solar collection ordinance modification that excluded solar collection gardens and/or solar farms from certain lands near the Highway 61 corridor. Applicant's Zoning Amendment Application In addition to the zoning amendment application, SunShare, LLC also prepared a statement sup- porting their solar collection system ordinance amendment request. A copy of their statement and supporting documents referred to as Exhibits A, B, and C are attached. Planning Staff Report SunShare, LLC — Planning Case No. TA2015-046 November 23, 2015 Page 8 of 8 Public Hearing Notices The public hearing notice was published in the South Washington Bulletin on November 11, 2015 and was mailed to 191 property owners within 500 feet of the 430 acre area. A notice was also mailed to the seven property owners located within the 430 acres of land area that SunShare requested to be added to Exhibit "A" of Ordinance No. 948. Zoning Amendment Process A zoning amendment may only be approved if it is consistent with the Comprehensive Plan, it will not impede orderly development, and it will not detrimentally impact surrounding properties. The Planning Commission must hold a public hearing and make a recommendation to the Council on the proposed amendment. The City Council has the authority to approve or deny the applica- tion. A denial must be supported by findings of fact. Recommendations That the Planning Commission recommend that the City Council deny SunShare, LLC's zoning text amendment to Exhibit "A" in Ordinance No. 948 and accept the staff's proposed findings of fact as listed below. 1. The Transitional Planning Area primarily includes properties that are intended to utilize city utilities in the near future and allows them to be available for future residential, commercial, and industrial land use developments. The proposed area can easily be served by city utili- ties that will benefit the public investment. Allowing solar collector systems in this area will impede orderly development. 2. The area depicted on Exhibit "A" in Ordinance No. 948 provides for approximately 4,206 acres of land where community solar gardens and/or solar farms could be located. These designated areas are outside the Metropolitan Urban Service Area (MUSA) and Transitional Planning Areas. These designated areas are of sufficient size and are appropriately located for solar collector systems. 3. The implications of solar collector systems within Transition Planning Areas and/or Metro- politan Urban Service Areas may deter future extensions of public infrastructure systems, future economic development, or sustainable development where future development is generally planned for and will have a detrimental impact on surrounding properties. Prepared by: John McCool, AICP Senior Planner Attachments: Ordinance No. 948 SunShare's Zoning Amendment Application and Exhibits Randall Kroll Letter dated October 6, 2015 SunShare Letter dated October 7, 2015 ORDINANCE NO. 948 3 AN ORDINANCE FOR THE CITY OF COTTAGE GROVE, MINNESOTA AMENDING 4 TITLE 11, CHAPTER 4, SPECIAL ZONING PROVISIONS BY ADDING SECTION 10, 5 SOLAR COLLECTOR SYSTEMS TO THE CITY CODE 6 7 8 The City Council of the City of Cottage Grove, Washington County, Minnesota, does hereby 9 ordain as follows: 10 11 SECTION 1. AMENDMENT. Title 11, Chapter 4, Special Zoning Provisions is amended 12 by inserting Section 10, Solar Collector Systems and shall read as follows: 13 11-4-10: SOLAR COLLECTOR SYSTEMS: 14 A. Purpose. Cottage Grove supports the use of solar collection systems as an accessory use in 15 all zoning districts and as a conditional use in special zoning districts whereby it is 16 determined that rural and urban agricultural land is unproductive farmland. The development 17 of solar energy farms should be balanced with the protection of the public safety and the 18 existing natural resources in Cottage Grove. The ordinance is to provide for the regulation of 19 the construction and operation of solar collector systems in Cottage Grove, subject to 20 reasonable conditions that will protect the environment, public health, safety, and welfare. 21 The provisions of this section of the ordinance shall apply within all zoning districts; allowing 22 solar panels as an appurtenance to rooftops and exterior walls, and allow modest 23 adjustments to regulations to allow applicants access to solar resources on their property. In 24 no case shall the provisions of this ordinance guarantee rights to solar access. 25 26 B. Definitions. The following words, terms and phrases, when used in this division, shall have 27 the meanings ascribed to them in this section: 28 Alternative Energy System: A ground source heat pump, wind or solar energy system. 29 30 Community Solar Garden: A solar -electric (photovoltaic) array that provides retail electric 31 power (or a financial proxy for retail power) to multiple community members or businesses 32 residing or located off-site from the location of the solar energy system, under the provisions 33 of Minn. Statutes 2166.1641 or successor statute. 34 35 Photovoltaic System: An active solar energy system that converts solar energy directly into 36 electricity. 37 38 Solar Collector: A device, structure or a part of a device or structure for which the primary 39 purpose is to capture sunlight and transform it into thermal, mechanical, chemical, or 40 electrical energy. 41 Ordinance No. 948 Page 2 of 7 42 Solar Collector Surface: Any part of a solar collector that absorbs solar energy for use in the 43 collector's energy transformation process. Collector surface does not include frames, 44 supports and mounting hardware. 45 46 Solar Daylighting: A device specifically designed to capture and redirect the visible portion of 47 the solar spectrum, while controlling the infrared portion, for use in illuminating interior 48 building spaces in lieu of artificial lighting. 49 50 Solar Energy: Radiant energy received from the sun that can be collected in the form of heat 51 or light by a solar collector. 52 53 Solar Energy Device: A system or series of mechanisms designed primarily to provide 54 heating, cooling, electrical power, mechanical power, solar daylighting or to provide any 55 combination of the foregoing by means of collecting and transferring solar generated energy 56 into such uses either by active or passive means. Such systems may also have the 57 capability of storing such energy for future utilization. Passive solar energy systems shall 58 clearly be designed as a solar energy device such as a trombe wall and not merely a part of 59 a normal structure such as a window. 60 61 Solar Energy System: A device or structural design feature, a substantial purpose of which is 62 to provide daylight for interior lighting or provide for the collection, storage and distribution of 63 solar energy for space heating or cooling, electricity generation or water heating. 64 65 Solar Energy System, Building-Intergrated: A solar energy system that is an integral part of a 66 principle or accessory building, replacing or substituting for an architectural or structural 67 component of the building. Building -integrated systems include but are not limited to 68 photovoltaic or hot water solar energy systems that are contained within or substitute for 69 roofing materials, windows, skylights, awnings and shade devices_ 70 71 Solar Energy System, Roof -Mounted: A solar energy system mounted directly or abutting the 72 roof of a principal or accessory building. 73 74 Solar Energy System, Grid-Intertie: A photovoltaic solar energy system that is connected to 75 an electric circuit served by an electric utility company. 76 77 Solar Energy System, Off -Grid: A photovoltaic solar energy system in which the circuits 78 energized by the solar energy system are not electrically connected in any way to electric 79 circuits that are served by an electric utility company. 80 81 Solar Energy System, Ground -Mount: A freestanding solar system mounted directly to the 82 ground using a rack or pole rather than being mounted on a building. 83 84 Solar Farm: A commercial facility that converts sunlight into electricity, whether by 85 photovoltaic (PV), concentrating solar thermal devices (CST), or other conversion 86 technology, for the principal purpose of wholesale sales of generated electricity. 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 Ordinance No. 948 Page 3 of 7 Solar Heat Exchanger: A component of a solar energy device that is used to transfer heat from one substance to another, either liquid or gas. Solar Hot Air System (also referred to as Solar Air Heat or Solar Furnace): An active solar energy system that includes a solar collector to provide direct supplemental space heating by heating and re -circulating conditioned building air. The most efficient performance typically uses a vertically mounted collector on a south -facing wall. Solar Hot Water System (also Thermal System): A system that includes a solar collector and a heat exchanger that heats or preheats water for building heating systems or other hot water needs, including residential domestic hot water and hot water for commercial processes. Solar Mounting Devices: Racking, frames, or other devices that allow the mounting of a solar collector onto a roof surface or the ground. Solar Resource: A view of the sun from a specific point on a lot or building that is not obscured by any vegetation, building, or object for a minimum of four hours between the hours of 9:00 AM and 3:00 PM Standard Time on any day of the year. Solar Storage Unit: A component of a solar energy device that is used to store solar generated electricity or heat for later use. C. Standards. 1. Building -Integrated Solar Energy System. A building -integrated solar energy system shall be allowed only on principal structures in all zoning districts and regulated as any other building element. Wall mounted solar collection systems are prohibited on the side of a principal structure facing a public street. 2. Minimum Lot Size. A minimum lot area of five acres is required for ground -mounted solar energy systems for all residential properties in any zoning district. 3. Height. Roof -mounted solar energy systems shall comply with the maximum height requirements in the zoning district that the property is zoned. In nonresidential zoning districts, ground -mounted solar energy systems may be permitted in the front, side or rear yards, but must setback a minimum of 20 feet from the property line. 4. Roof -mounting Devices and Roof -mounted Solar Energy Systems. Roof -mounting devices and roof -mounted solar energy systems shall be flush mounted on pitched roofs. Solar energy systems located in non-residential districts or on non-residential uses may be mounted at an angle to the roof to improve their efficiency; however, the highest point of a solar panel shall not be more than five feet, measured in a straight line above the roof upon which the panel is mounted. Roof -mounted devices and roof -mounted solar energy systems shall not extend beyond the exterior perimeter of the building on which the system is mounted or built, unless the collector and mounting system has been Ordinance No. 948 Page 4 of 7 134 explicitly engineered to safely extend beyond the edge, and setback standards are not 135 violated. Exterior piping for solar hot water systems is prohibited to extend beyond the 136 perimeter of the building. 137 138 5. Mirror Reflecting Designed Solar Energy Systems. Mirror reflecting designed solar 139 energy systems are permitted only on properties with five acres or larger and located 140 outside the Metropolitan Urban Service Area (MUSA). A conditional use permit is 141 required. 142 143 6. Easements. Solar energy systems shall not encroach on public drainage or utility 144 easements. 145 146 7. Aesthetics_ Reflection angles from solar energy systems shall be oriented away from 147 neighboring windows. Where necessary, screening may be required to address glare. 148 149 8. Ground -Mounted Solar Energy Systems. Ground or pole -mounted solar energy systems 150 shall not exceed 15 feet in height when oriented at maximum tilt. Ground -mounted solar 151 energy systems shall comply with the accessory structure setback standards for the 152 applicable zoning district in which they are located. Community solar gardens or solar 153 farms shall comply with the principal structure setback standards for the applicable 154 zoning district in which they are located. Solar energy systems may not extend into the 155 minimum side or rear yard setbacks when oriented at minimum or maximum design tilt. 156 157 9. Standards. Solar energy systems shall meet the minimum standards outlined by the 158 International Electrotechnical Commission (IEC), the American Society of Heating, 159 Refrigerating, and Air-conditioning Engineers (ASHRAE), ASTM International, 160 International Organization for Standardization (ISO), Underwriter's Laboratory (UL), the 161 Solar Rating and Certification Corporation (SRCC) or other standards as determined by 162 the Community Development Director. 163 164 10. Certification. Solar energy systems and components shall be certified by Underwriters 165 Laboratories, Inc. (UL), the National Renewable Energy Laboratory, and Solar Rating and 166 Certification Corporation (SRCC), or other appropriate certification(s) as determined by 167 the City. The City reserves the right to deny a building permit for proposed solar energy 168 systems deemed to have inadequate certification. 169 170 11. Building Permit Required. All solar energy systems require a building permit. A building 171 permit application and plan submittal must comply with the following requirements: 172 173 a. Applications for Solar Energy Systems. An application to the City for a building permit 174 under this section shall contain the following information, including but not limited to 175 the following: 176 177 i. A building permit application. 178 179 ii. A site plan of existing and proposed site conditions. Ordinance No. 948 Page 5 of 7 181 iii. Number of solar collectors to be installed. 182 183 iv, Location and spacing of solar panels. 184 185 V. Ground mounted system applications shall identify existing vegetation on 186 installation site (list vegetation type and percent of coverage; i.e. grassland, 187 plowed field, wooded areas, etc.), and provide a maintenance plan for controlling 188 vegetative growth on site upon installation of the solar energy system. 189 190 vi. A description of the method of connecting the array to a building or substation and 191 a signed copy of the interconnection agreement a copy of the application to with 192 the local electric utility be included with the conditional use permit application or a 193 written explanation outlining why an interconnection agreement is not necessary. 194 195 vii. Planned location of underground or overhead electric lines connecting the solar 196 electric system to the building, substation or other electric load. 197 198 viii. New electrical equipment other than at the existing building or substation that is 199 the connection point for the solar electric system. 200 201 ix. Manufacture's specifications and recommended installation methods for all major 202 equipment, including solar panels, mounting systems and foundations for poles or 203 racks. 204 205 x. Existing and proposed (if existing grade will be altered) topography at two foot 206 contours. 207 208 12. Feeder Lines and Grid-Interties. All power lines shall be placed underground within the 209 interior of each parcel. The collection system may be placed overhead near substations 210 or points of interconnection to the electric grid. All grid-intertie systems shall have an 211 agreement with the local utility prior to the issuance of a building permit. A visible external 212 disconnect must be provided if required by the utility. Off -grid systems are exempt from 213 this requirement. 214 215 13. Special Exceptions. A solar collection system with a cumulative area of six square feet or 216 less is permitted in all zoning districts and does not require a building permit. No more 217 than three solar collection panels are permitted. Examples of these systems are outdoor 218 accent lighting systems, power supply for traffic control systems, powering a water pump 219 for water gardens, tele -communication systems, backup power systems during power 220 outages, and etc. 221 222 D. Community Solar Garden or Solar Farm. A conditional use permit is required for community 223 solar garden or solar farm systems and must be located within the designated areas shown 224 in Exhibit "A". Utility -scale solar energy systems are allowed in all zoning districts. A 225 minimum of five acres of land is required. Ordinance No. 948 Page 6 of 7 226 227 E. De -commissioning. A de -commissioning plan shall be submitted with all applications for 228 community solar garden or solar farm systems. 229 230 1. De -commissioning plans shall outline the anticipated means and cost of removing the 231 system at the end of its serviceable life or upon its becoming a discontinued use. The 232 cost estimates shall be made by a competent party, such as professional engineer, a 233 contractor capable of decommissioning or a person with suitable expertise or experience 234 with decommissioning. The plan shall also identify the financial resources that will be 235 available to pay for the decommissioning and removal of the system. Owners of 236 residential solar energy systems may rely on manufactures data to submit estimates. 237 238 2. De -commissioning of the system must occur within 90 days from either of the following: 239 240 a. The end of the system's service life; or 241 242 b. The system becomes a discontinued use. 243 244 c. A system shall be considered a discontinued use after one year without energy 245 production, unless a plan is developed and submitted to the Zoning Administrator 246 outlining the steps and schedule for returning the system to service. 247 248 d. The City may at its discretion require the owner and/or operator of the commercial or 249 utility scale system to provide financial security in the form of a cash escrow, bond, or 250 irrevocable letter of credit in an amount equal to 125 percent of a cost estimate for de - 251 commissioning the system. 252 253 3. The owner of a utility -scale system must notify the City in writing when feeder lines and/or 254 grid-interties are disconnected from the local utility transmission line. 255 256 F. Abandonment. If the solar energy system remains nonfunctional or inoperative for a 257 continuous period of one year, the system shall be deemed to be abandoned and shall 258 constitute a public nuisance. The owner shall remove the abandoned system at their 259 expense after a demolition permit has been obtained. Removal includes the entire structure 260 and components. 261 262 SECTION 2. SUMMARY PUBLICATION. Pursuant to Minnesota Statutes Section 263 412.191, in the case of a lengthy ordinance, a summary may be published. While a copy of the 264 entire ordinance is available without cost at the office of the City Clerk, the following summary is 265 approved by the City Council and shall be published in lieu of publishing the entire ordinance: 266 The new solar energy ordinance includes requirements regarding permitting, screening, 267 setbacks, maximum size array, minimum lot size, designated zoning districts, etc. for all types of 268 solar energy systems. 269 270 SECTION 3. EFFECTIVE DATE. This ordinance shall be in full force and effect from and 271 after its adoption and publication according to law. Ordinance No. 948 Page 7 of 7 272 273 Passed this 7th day of October, 2015. 274 275 276 277 278 279 Attest: 280 281 282 283 Joe Fischbach, City Clerk IMAM �� 1/. M 7 iShare TO CHOOSE Zoning Amendment Application October 28, 2015 City of Cottage Grove Planning Commission Request Attention: John McCool, Senior Planner 12800 Ravine Parkway Cottage Grove, MN 55016 Dear John, Attached you will find an application for an ordinance amendment to allow Community Solar Gardens along existing electrical infrastructure connecting to the Chemolite substation in Cottage Grove. The request is being made by SunShare, LLC. In 2013, Xcel Energy was directed by the State of Minnesota to obtain 1.5% of its energy from solar by the year 2020. The development and operation of Community Solar Gardens will aid Xcel Energy in complying with this requirement. The program was designed to facilitate the development of solar arrays that could serve the local community. The current and future land use of the City of Cottage Grove strongly indicates that the Transitional Planning Area is a great location for siting a solar array to be used by the community, as explained in the attached narrative. SunShare, LLC hopes this correspondence and enclosures explain our application and address the requirements of Cottage Grove. Should you have any questions regarding the attached application for an ordinance amendment, please feel free to contact Chuck Beisner at 612-701-4855. SunShare, LLC appreciates the assistance that we have received from you and your staff and we look forward to working with you to better serve the public in this area. Thank you in advance for your consideration of this matter. Sincerely, Chuck Beisner cbeisner@mysunshare.com 612-701-4855 SunShare, LLC 609 South l Oth Street, Minneapolis, MN 55404 EXHIBIT A TO SOLAR ENERGY DEVELOPMENT AND OPERATIONS LEASE AGREEMENT LEGAL DESCRIPTION AND MAP OF THE PROPERTY UNDER LEASE THE FOLLOWING REAL PROPERTY LOCATED IN THE COUNTY OF WASHINGTON, STATE OF MINNESOTA: Location: South of 10011 St and West of Ideal Avenue Parcel Number(s): 29.027.21.11.0003 Legal Description: The East Half of the East Half of the Northeast Quarter, except the South 330 feet and except the South 330 feet of the North 1650 feet lying East of the West 66.00 feet in the East Half of the East Half of the Northeast Quarter of Section 29, Township 27 North, Range 21 West, Washington County, Minnesota Constituting 30.67 acres, more or less. Solar Energy Development and Operations lease Agreement —CONFIDENTIAL; Execution Copy Kroll 20160601 Page 29 of 48 Zoning Amendment Application Community Solar in Cottage Grove Community Solar is a relatively new program operated by Xcel Energy that allows Xcel ratepayers to choose the source of their energy. Subscribers to a community solar garden choose an off-site system, where panels can be aggregated to save costs relative to an individual rooftop system. This allows the subscribers to have a lower electric rate, which in turn contributes to the local economy. SunShare, LLC already has contracted subscribers in Cottage Grove, and we want to provide them with the best possible product. In order to maximize the benefits to local subscribers, the solar array must meet a few criteria. It must be located adjacent to an Xcel Energy 3 phase distribution line in their area, on an open plot of land. Exhibit A contains a map identifying the locations of 3 phase distribution lines in Cottage Grove. Most of the qualifying lines run adjacent to parcels that are too small to optimize the benefits of a community solar garden. Most of the other lines are sited in the Industrial and Transition Planning Areas of Cottage Grove. Some of them are within the City's Solar Collection Systems Areas overlay, but some are not. We appreciate the City's consideration of substation location when determining an appropriate region for the Solar overlay, but we believe that there are other land use and electrical requirements for solar gardens that may not have been fully considered during the public hearing process when the overlay boundaries were established. Just focusing on the overlay west of the Chemolite substation, it is unclear from the Solar Collection System Areas map associated with the new solar ordinance what those land characteristics are. By examining a satellite view (Exhibit B), it becomes clear that most of the land is host to industrial development or displays wetland characteristics, both of which are unsuitable for solar development. While community solar developers would prefer to site their gardens in the area identified by the City, it is simply unfeasible. Therefore, in order to take advantage of Cottage Grove's existing electrical infrastructure, a potential solar garden must be located west of the substation, likely along 100`" Street. While this land is suitable for solar from an environmental perspective, we recognize that some of it is designated as Transition Planning Area, a different zone from what is currently included in the solar overlay. The City may have some hesitation about allowing solar in that district, but we believe that solar is more than compatible with the area. As the future direction of this zone has not yet been determined, we believe that a Community Solar Garden is an excellent use for this zone. Currently the Transitional Planning Area is used for agricultural and large lot residential housing. Sewer and water has not yet been added to the area, and it will be some number of years before adequate facilities can be built for development. During this time, and even after, a community solar garden could be diversifying the land use and tax base of the area, while being an excellent neighbor for any future uses: residential, commercial, or industrial. Community solar gardens are quiet, generate no odors, have minimal traffic, and often contain a vegetative ground cover that reduces surface water runoff, improving local water quality. It should also be noted that solar gardens are temporary land uses. The contract with Xcel is for 25 years and at that time a garden can easily be removed and the land converted to whatever use makes the most sense at that time, whether it be agricultural, residential, or industrial. SunShare,LLC 609 South 10th Street, Minneapolis, MN 55404 Zoning Amendment Application By modifying the solar zone to include more area, the City may worry that an over- abundance of solar projects will be proposed. This is simply not the case. As described earlier, the solar projects need to be next to existing distribution lines, which only border a small number of properties in the zone. Additionally, please note the use of the word "existing'. Xcel Energy will not undertake any material upgrades to their existing distribution grid in order to accommodate community solar. There is a limit to the amount of power that can be added to the grid, and therefore a limit to the number of community solar gardens that can be built in Cottage Grove. Please remember that this view, which acknowledges severe restrictions on solar development, still only considers the electrical perspective, not the environmental or other land use constraints described earlier in this application. It is unlikely that more than 2 or 3 gardens could be built, even if community solar was allowed in every district in the City. For these reasons, we request that the City of Cottage Grove allow community solar along a portion of 100`h Street, as shown in Exhibit C. Solar gardens face a number of electrical and land use constraints that will limit their abundance, and they have a number of characteristics, including their temporary nature, that render them an excellent use in a transitional area. SunShare,LLC 609 South 10'h Street, Minneapolis, MN 55404 u Zoning Amendment Application Exhibit A The yellow lines on the map reflect the locations of existing electrical infrastructure suitable for solar gardens. ("a"a Cottage `� Grove 4he10 Pride and Pry�peiity Meet Cottage Grove Future Land Use 2030 SunShare, LLC 609 South 10th Street, Minneapolis, MN 55404 Zoning Amendment Application Exhibit B An aerial view of south Cottage Grove. The area west of Miller Road, but east of currently farmed land has been designated as suitable for solar. Please note the industrial area, as well as the wetland area with trees. Part of that area is identified on the National Wetland Inventory. SunShare, LLC 609 South 10th Street, Minneapolis, MN 55404 Zoning Amendment Application Exhibit C Current proposed solar zones are shown in red. SunShare's requested changes are shown in yellow. Solar Collection System Areas Cottage Grove, SunShare, LLC 0 05 1 2 3 6liles 609 South 10th Street, Minneapolis, MN 55404 RANDALL J KR®LL RNR KROLL PROPERTIES LLC 14851Rr" AVENUE NW NEPA/ BRIGHTON, MN 55112 October 6, 2015 Mr. John McCool City of Cottage Grove 12800 Ravine Parkway S. Cottage Grove, MN 55016. RE; P.ropeity at 100t2Street and Ideal Avenue Pear Mr. McCool, I would like to attend the Council meeting tomorrow night (Wednesday) , but because of a business trip out of town, I cannot, So I will voice my thoughts related to the solar garden discussion which I Understand will take place at the upcoming Council meeting: As you will recall, I own the 30 acre parcel of farm [and at the southwest corner of the 100'^ Street and ideal Avenue intersection. in June, Lentered Into an agreement to lease this property to SunShare for the development of acommUhitysolar garden. This agreement was entered into after significant negotiat[on, work and legal work, which cost me thousands of dollars_ As part of rimy due diligence, I contacted you, Anderson Windows, and I_eaftab to discuss future development plan's in the area of the property, as I was in the process of assessing the "highest and best use" of the property. Neither you, nor the other parties, responded with concerns oboutthe potential fora community solar garden in the region. I know as fact thatSunShare was in frequent communication with city personnel, and there were no barriers put up in all these discus$ions; Now I learn there is a move to prohibit the development of the sgiar garden because itis in the Transitional Zone. This is a very disappointing movement on a number of fronts. 1. The solar garden will be a wonderful environmental asset to the community. This is not a monstrosity of a project like some that are currently being proposed in the region. It is a reasonable size, and will fit into the neighborhood well, no matter if it is zoned agriculture, commercial or industrial. It will in no way get in the way offuture developments, or be an unsightly project in the area. 2: My understanding is the City has designated more than 1500 acres of land in the Transitional Zone. Niowing 30 acre's of land out of more than 1500 acres wiif not havea significant impact on. the City s ability to develop additional industrial use areas. 3. It feels highly unjust to hold backthe opportunity for me, as Well as SunShare, to use this land for a. higher and better purpose, when the City cannot give Us an im riinent date for rezoning or developing. You are taking away economic benefit opportunity from me, from SunShare and from the community. . For these reasons; I •strongly oppose the movement to block this environmentally friendly development because it is located in a Transitional Zone. 'I ask you-- let this important project move forward. Thanks for agreeing to relay my opinions to the Council members. B st est g d RanU.I<' . unShare THE PowER To cnd OSE _ October 7, 2015 Mr. John McCool, Senior Planner City of Cottage Grove 12800 Ravine Parkway South Cottage Grove, MN 55016 REF :Proposed Zoning Text Amendment to City Code Title 11, Chapter 4, Special Zoning Provisions, to add Section 10, Solar Collector Systems Dear John: SUnShare Will be attending the City Council meeting tonight October 7. 1 am sending this letter as we are unsure if there will be an opportunity to speak at the council meeting. As you are aware, Sunshare has been working with city staff throughout the process of adopting new city code to ailoW for Solar Collector Systems within the city, We have attended many of the workshops and meetings and have been in contact with staff during this process. We stronglysupportoption 1 that will be presented tonight, Furthermore we strong6v oppose option 2. Option 1 is the language that city staff, the industry and city advisors have been developing for the past six months. Option 2 we were just made aware of two days ago. While we understand that the 'city would like to protect land for future development, setting aside the transitional area along with the MUSA area would be over reaching. There is an ample amount of land currently available within the current MUSA area for development; Solar Collector Systems haven typical life cycle of 25-30 years. They are an excellent use within the transition area. When the life expectancy of the Solar Collector System comes to an end the land will be ready for its next highest and best use. To set aside these areas for an undetermined amount of time creates an undue burden on the developer and the property owner. We hope that the City Council sees the amount of effort put in over the past six. months, recognizes that effort and approves Option 1 asapprovedby the Planning Commission. If you have any questions, please feel free to call me anytime: Sincerely, Chuck Beisner Site Acquisition and Permitting Specialist 612-701-4855 -609 South 10thS,treet, Suite 210 1 Minneapolis, MN 55404 612.345.88811 info@mysunshare.com l www.mysunshare.com