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
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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
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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.
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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.
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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.
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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.
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6.
Easements. Solar energy systems shall not encroach on public drainage or utility
144
easements.
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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.
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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.
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9.
Standards. Solar energy systems shall meet the minimum standards outlined by the
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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.
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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.
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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:
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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:
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i. A building permit application.
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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.
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279 Attest:
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281
282
283 Joe Fischbach, City Clerk
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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