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HomeMy WebLinkAbout2015-12-21 PACKET 06.1.STAFF REPORT CASE - Supplemental: TA2015-046 ITEM: 6.1 PUBLIC MEETING DATE: 12/21/15 TENTATIVE COUNCIL REVIEW DATE: 1/20/16 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 J Grove %ere Pdde and P,ozPedW Meet Planning Staff Contact: John McCool, Senior Planner; 651-458-2874;jmccoolCu)a cottage-grove.org Application Accepted: 10/19/15 60 -Day Review Deadline: 12/17/15 120 -Day Extension Deadline: 2/14/16 City of Cottage Grove Planning Division • 12800 Ravine Parkway South • Cottage Grove, MN 55016 Planning Staff Report — Supplemental SunShare, LLC — Zoning Text Amendment (Solar Collection) Planning Case No. TA2015-046 December 21, 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, LLC's Proposed Ord. No. 948 Amendment— Exhibit "A" a _- l I Y j• ii EXHIBIT A l� ._ a Solar Collection System Areas Cottage Grove, MN� )- x LEGEND [Solar Collection System Areas CG City Boundary i \ — Railroad Mississippl River 77- N d W E i i. 0 a.5 2 3 Milos SunShare, LLC's Proposed Ord. No. 948 Amendment— Exhibit "A" Planning Staff Report—Supplemental SunShare, LLC — Planning Case No. TA2015-046 December 21, 2015 Page 2 of 10 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 Review Deadline Extension Granted: February 14, 2016 Public Hearing Continuance On Monday, November 23, 2015, Chuck Biesner, representing SunShare, LLC, requested that the Planning Commission table both of their zoning amendment applications for their meeting on November 23, 2015. SunShare's reason for this request was so they could provide more details and response to the staff/city concerns. Because the public hearing notice had already been published and public hearing notices were mailed to approximately 191 property owners that are within 500 feet of the applicant's requested area to be added to Exhibit A of Ordinance No. 948, the Planning Commission opened the public hearing to receive testimony without discussion. At the November 23, 2015, Planning Commission meeting, the following comments were received: • Preservation of prime farmland. • Why were the cemetery and Lamar Fields (city park) included within the proposed solar collector area? • What is the impact to adjacent property owners and land values? • Will the property be bought or leased? • Concerns for surface water drainage onto neighboring properties. • Noise associated with the maintenance of the solar collector system. • How will the property be taxed? • The additional land area is too large and is within the MUSA. • Visual impacts. • The applicant had not spoken to all affected property owners about their proposal. The Planning Commission continued the public hearing to their meeting on December 21, 2015, in the Council Chambers at Cottage Grove City Hall. 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. Planning Staff Report — Supplemental SunShare, LLC — Planning Case No. TA2015-046 December 21, 2015 Page 3 of 10 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 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 the solar collector system ordinance (Ordinance No. 948) on October 7, 2015. A copy of this ordinance is attached. Planning Staff Report —Supplemental SunShare, LLC — Planning Case No. TA2015-046 December 21, 2015 Page 4 of 10 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 importantfor 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. Metropolitan Urban Service Area (MUSA) Boundary Planning Staff Report — Supplemental SuhShare, LLC — Planning Case No. TA2015-046 December 21, 2015 Page 5 of 10 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. zCottage Grove Vd de and 4jo"�'ity Moet Cottage Grove Future Land Use 2030 _ °^ The packet of information, 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 Planning Staff Report - Supplemental SunShare, LLC - Planning Case No. TA2015-046 December 21, 2015 Page 6 of 10 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. i WIN 1 MAINL LEGEND a CG Gity Boundary Railroad A Mississippi River ■ N t _ c Z SSS �`vJx"K' ' Exhibit A in Ordinance No. 948 The proposed changes to the Planning Commission's recommended approval forthe 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 Planning Staff Report—Supplemental SunShare, LLC — Planning Case No. TA2015-046 December 21, 2015 Page 7 of 10 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. 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 Cottage t.rme COTTAGE GROVE BUSINESS PARK LEGEND ®emmes. P,h A,e. Avalabk Land Oavebw Puu P.6 enE Open.pp N W_�_E 5 o.....o,>•�ro. mHa w.aaa om.�+in>no+e Planning Staff Report— Supplemental SunShare, LLC — Planning Case No. TA2015-046 December 21, 2015 Page 8 of 10 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. 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. Public hearing notices were again mailed to the 191 property owners informing them that the applicant had requested that their application be tabled by the Planning Commission at their meet- ing on November 23, 2015 and that the public hearing was continued to December 21, 2015. Public Comments Received The following responses were prepared for the questions received at the November 23, 2015 Planning Commission meeting: Preservation of prime farmland. The applicant is proposing to enlarge the designated area on Exhibit A of Ordinance No. 948 to allow the opportunity of siting community solar gardens on land that is along the 70th Street corridor between Lamar Avenue and Keats Avenue. Placement of solar collector systems upon properties currently used for agricultural purposes will decrease the total number of acres currently used for agriculture. The City has no farmland preservation pro- gram that prevents a property owner from changing the use of their property. Cemetery Property. The Cottage Grove Cemetery property is approximately 32 acres. The burial plots are located on the eastern 22 acres. The western 10 acres are not currently used for burial plots and are currently being farmed. These ten acres could be a site for a community solar garden. Lamar Fields (City Park). The City of Cottage Grove will not replace the Lamar Park with a community solar garden. Impact to Adjacent Property Owners and Land Values. In general, appraised land values next to a community solar garden are not always adversely impacted. A community solar garden does not generate much traffic nor are there any noise issues. Aesthetically, some people might have concern for visual impacts. A before and after appraisal would need to be prepared to, determine land values. Land Owned or Leased. In most cases, the land is leased from the property owner. A lease agreement is typically signed by both parties. The lease amount and term of the lease is described in the lease agreement. Planning Staff Report —Supplemental SunShare, LLC — Planning Case No. TA2015-046 December 21, 2015 Page 9 of 10 Surface Water Drainage. Generally, the solar collector panels are mounted to a rack that is slightly elevated above the ground. Some companies provide a vegetative ground cover that will not grow too high, and they will occasionally mow the site. Stormwater runoff is not substantially changed with a vegetative ground cover. If the ground area is covered with a gravel -type of ma- terial, then stormwater basins should be considered. The post -rate and quality of stormwater run- off must not be any greater or worse than the pre -development rate and quality. Noise. Once the community solar garden facilities are constructed, there is very little noise created from collecting solar energy for electricity. Property Taxes. Minnesota State Statute 272.0295 establishes a solar energy production tax for solar gardens that are larger than one megawatt. The facility is required to pay $1.20 per mega- watt hour in taxes to the County in which the system is located. Property tax classifications change from agricultural land to Class 3a -Utility, which is taxed at a higher rate. Land Availability for Solar Collector Systems. Exhibit A of the Solar Collector System ordinance (Ord. 948) illustrates approximately 4,206 acres of land that is outside the MUSA and any Transition Planning Area shown in the City's Future Vision 2030 Comprehensive Plan. Within this 4,206 acre area, it is believed that an adequate supply of land could accommodate a solar collec- tion system without impacting land within the MUSA and future development areas identified in the Transition Planning Areas. Applicant Contact with Affected Property Owners. As a courtesy, SunShare should have discussed their proposed zoning amendment with property owners that they included in their pro- posed solar collection expansion area. 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 City Council on the proposed amendment. The City Council has the authority to approve or deny the application. A denial must be supported by findings of fact. Recommendations That the Planning Commission recommend that the City Council deny SunShare's zoning text amendment to Exhibit A in Ordinance No. 948 and accept the staff's proposed findings of fact as listed below. 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. '7SynShare THE POWER TO CHOOSE December 16, 2015 G G Mr. John McCool, Senior Planner City of Cottage Grove 12800 Ravine Parkway South 0� GRQ Cottage Grove, MN 55016 cF RE: Proposed Zoning Text Amendment #TA2015-046. Location: South o 0t4 Street between Hadley Avenue and the southerly extension of Jamaica Avenue. Dear John: SunShare will be attending the Planning Commission meeting on December 2151 in support of the application. I am sending this letter as we are unsure if there will be an opportunity to speak at the council meeting. Let this letter serve as a response to the staff report and comments at the previous Planning Commission meeting. What we are asking for the same decision the Planning Commission gave on September 2814 by an 8-0 vote. After 3 months of working with staff, the Planning Commission and Environmental Commission over a 3 month period earlier this summer, the Planning Commission approved a Solar ordinance that ALLOWED Community Solar Gardens within the Transitional Planning Areas of the city. The City Council removed that area from solar development at their following meeting. The City Council removed those areas for concern that the Transitional Planning Areas are meant for future development. The Areas encompass 1,000's of acres of land for development. Our application opens just a fraction of that area that already has Xcel infrastructure abutting it, thus reducing the possibility of stalling development. This particular area is stated for industrial development. We also have offered to the city a Host Community Agreement (HCA). What the HCA offers is a yearly payment in lieu of taxes that a traditional business would pay. There is currently no demand for development in the area. Thus the city would be ahead with a Community Solar Garden development. Once the life of the garden comes to as end (traditionally 27 years) the property could then be developed into the highest and best use for the area at the time. At the previous commission meeting, only one person showed up against the proposed amendment. They were next to the site SunShare is looking at to develop a solar garden. The two main points he had were property values and diminish the enjoyment of his property. SunShare has solar gardens in Colorado. We have studied the homes surrounding the gardens and have not seen any effect on property values. Also, the property owner knows his home is in a Transitional Planning Area and is slated for an industrial use. At some point the property around his will become industrial in nature as other property in the area has become. Compared to an intensive industrial use, a Community Solar Garden is an excellent neighbor. They are 10' maximum in height, make no noise, produce no odor, and have very little activity on site once constructed. Again, we ask that the Planning Commission approve the same ordinance that the commission approved 8-0 but on an even more limited basis. If you have any questions, please feel free to call me anytime. Sincerely, ChtrekBeisner Site Acquisition and Permitting Specialist 612-701-4855 609 South 1014 Street, Suite 210 1 Minneapolis, MN 55404 612.345.88811 info@mysunshare.com l www.mysunshare.com 2 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 21613.1641 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-lntertie: 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 certifications) 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 W:1, 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. 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 F 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 Ordinance No. 948 Page 6 of 7 E. De -commissioning. A de -commissioning plan shall be submitted with all applications for community solar garden or solar farm systems. De -commissioning plans shall outline the anticipated means and cost of removing the system at the end of its serviceable life or upon its becoming a discontinued use. The cost estimates shall be made by a competent party, such as professional engineer, a contractor capable of decommissioning or a person with suitable expertise or experience with decommissioning. The plan shall also identify the financial resources that will be available to pay for the decommissioning and removal of the system. Owners of residential solar energy systems may rely on manufactures data to submit estimates. 2. De -commissioning of the system must occur within 90 days from either of the following: a. The end of the system's service life; or b. The system becomes a discontinued use. c. A system shall be considered a discontinued use after one year without energy production, unless a plan is developed and submitted to the Zoning Administrator outlining the steps and schedule for returning the system to service. d. The City may at its discretion require the owner and/or operator of the commercial or utility scale system to provide financial security in the form of a cash escrow, bond, or irrevocable letter of credit in an amount equal to 125 percent of a cost estimate for de- commissioning the system. 3. The owner of a utility -scale system must notify the City in writing when feeder lines and/or grid-interties are disconnected from the local utility transmission line. Abandonment. If the solar energy system remains nonfunctional or inoperative for a continuous period of one year, the system shall be deemed to be abandoned and shall constitute a public nuisance. The owner shall remove the abandoned system at their expense after a demolition permit has been obtained. Removal includes the entire structure and components. SECTION 2. SUMMARY PUBLICATION. Pursuant to Minnesota Statutes Section 412.191, in the case of a lengthy ordinance, a summary may be published. While a copy of the entire ordinance is available without cost at the office of the City Clerk, the following summary is approved by the City Council and shall be published in lieu of publishing the entire ordinance: The new solar energy ordinance includes requirements regarding permitting, screening, setbacks, maximum size array, minimum lot size, designated zoning districts, etc. for all types of solar energy systems. SECTION 3. EFFECTIVE DATE. This ordinance shall be in full force and effect from and 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 e_ M , n 13iley, V�- r I iShare NER 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 10th 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 1001" St and West of Ideal Avenue Parcel Number(sj: 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 Krotl_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 100th 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 10'h 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 100th 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 101h Street, Minneapolis, MN 55404 Zoning Amendment Application Exhibit A The yellow lines on the map reflect the locations of existing electrical infrastructure suitable for solar gardens. jaw Cottage `� Grove hero nide 0 6"WelW not •OVA. Q...M NMiM4M LAND Vi! .w .�r•,q No.�.. UN+11• �� •.• Cottage Grove Future Land Use 2030 SunShare, LLC 609 South 1 Oth 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, MN SunShare, LLC 0 05 1 2 3 Miles 609 South 10th Street, Minneapolis, MN 55404 RNR KROLL PROPERTIES LLC 148518TH AVENUE NW NEW BRIGHTON, MN 55112 October 6, 2015 Mr. John McCool City of Cottage Grove 12800 Ravine Parkway S. Cottage Grove, MN 55016. RE: PXnpeliy at 106*Street and Ideal Avenue Dear 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 urrderstand will take place at the upcoming Council meeting; As you will recall. I own the30 acre parcel of farm land at the southwest corner of the 100`x' Street and ideal Avenue intersection. in June, I.entered into an agreement to lease this property to $unShare for the development of a community solar garden. This agreement was entered into after significant 0egotiatfon, work and legal Work, Which cost me thousands of dollar's. As part of rimy due diligence, I contacted you, Anderson Windows, and I-eafl.ab 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 about the potential for cpmmunity War garden in the region. 'I know as fact thatarMare was in frequent communica ton with pity personnel, and there were no barriers put up in all these discussions; Now I learn there is a move to prohibit the development of the Soiar garderi because itis in the Transitional Zone. This is a very disappointing movement on a humb'er of fronts. 1. Thesofargarden will be a wonderful environmental assetto the community. This is not monstrosity of 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 of future developments, or be an unsightly project in the area. 2: Ivly understanding is the City has -designated more than 1500 acres of lane} in the Transitional Zone. Allowing 30 acre's of land olft of more than 1500 acre's will not havea significant impact on the City's ability to develop additional industrial use areas. 3. It feels highly unjust to hold back -the opportunity for me, as well as SunShare, to use this land for a higher and better purpose, when the City cannot give us an imminent date for rezoning or developing. You are taking away economic benefit opportunity from me, from SunShare and from 'the ebmmunity. . For these reasons; i strongly oppose the movement to block this environmentally friendly development because it is focated iiia Transitional Zone. I ask you— let this important project move forward. Thanks'for agreeingto relay my opinions to the Council members. g ean Rdalti< nFcs S LfnShqre THE POWER TO CNddit OctobW7, 2015 Mr John McCool; Senior Planner Cfty.of Cottage Grove 12$06 Ravine Parkway South G9tt4ge GrdVe, l4 -N 55016 RE! Proposed Zoning Telt Amendmeift to Ct� Code Title 11, Chapter 4, Spetial Zoning Provisions, to add Sect on:16; Solar Collect or SystQms - Dear John: SIIhShare Wilt he attending thei(ty Council meeting tonight October 7. I am sending this letter as: we are.. unsure if there Will be an opportunity to speak at'the council meeting, As y4q are aware, Supshare has been wotktny with e4ty staff #1 ropghou} t}i2 process of adopting hew city code to atlow for Solar Collector Systems. within the city, We have attended many of the workshops and meetings and have been in contact with staff during this, process: 'VJs slreogysupparf option 1 that will be presented tootgfit, rurthermorq we:strongol OPPP5:e Otio'll 2. Option 1 is the tang uagethat city staff, the industry and city advisors have been developing for the past sIx moriths, Option 2 we were just made aware of two days. ago. Wt le.we understand that the city would like to protect land for future deve(optneftt, seit[ng aside the trahi itiohdt area aibng with the MOJ A area would l* oyerreaehin. There is an ample amount of land currently avaiiable'v✓ithin the curre t MU$A area for development, Solar Collector Systems have a typical life cycle of 25 3.0 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 highestartd best ose. T(5 ;61: aside these areas for an updetefmined amount of time (routes an undue burden on the tleveloper apd the property ovJheh We hope that the City Councttsees the amount of effort put in over the past six. months, recognizes that effort and approves Op[ioq i as approved by tF{e_ Flanging Commis5[on;. If you have 6 t(uestons, please feel frge.to call me a_nytlmg: Sincerely,: Chuck Beisner S,lte,QC aisition alta Permitting $peCiaflSt 612:70-4855 EXCERPT FROM UNAPPROVED MINUTES OF THE NOVEMBER 23, 2015, PLANNING COMMISSION MEETING 6.4 SunShare: 100th Street — Case TA2015-046 SunShare LLC has applied for a zoning text amendment to allow community solar gardens or solar farms within the Transitional Planning Area, as shown in the City of Cottage Grove Future Vision 2030 Comprehensive Plan, for approximately 430 acres of land located south of 100th Street between Hadley Avenue and Jamaica Avenue. McCool reported that the applicant requested that the public hearing on this application be continued to the Planning Commission meeting on December 21, 2015. The reason for the continuation is to have more time to respond to the issues that were addressed in the Planning staff report. He stated that the Planning Commission should open the public hearing to allow anyone in attendance tonight to speak on this application. Testimony will also be taken at the December 21 meeting. He displayed the location map for this application. He noted that the applicant is not proposing solar collectors for the entire area but the amendment would expand the areas shown on Exhibit A of the Solar Collection Ordinance No. 948 where these systems could be located. Brittain opened the public hearing. Todd Julen, 10350 Ideal Avenue South, stated that in October the City Council revisited the issue of putting solar farms on transitional land, but decided that they did not want to set aside the land for that use. He stated that he is not opposed to solar farms in the area but does not want one next to his house. Being surrounded by a sea of glass is not what he envisioned when he purchased his property. A solar farm would diminish his personal enjoyment of his property. He is in the middle of a 35 -acre parcel on 4.5 acres dead center, and the panels would completely surround his house. He met with the applicants who stated that they would go about 10 feet from the property line. He talked with Ott Realty to determine what impact this could have on his property and was told he would see at least a 10 to 15 percent reduction in his property value, which would equate to about a $65,000 loss, and it would take about twice as long to sell the house. He has lived in Cottage Grove almost his entire life, and when he built his house on Ideal he did not expect to be the only one living on the land surrounding his property, but he also did not plan to be surrounded by a sea of glass. If the City decides to approve this ordinance amendment allowing community solar gardens in the transitional area, a couple issues need to be addressed, including the loss of property value and personal property enjoyment. Gene Smallidge, 10992 Point Douglas Drive, asked if this would change any other usage for properties within that area. He believes it is highly irregular that a company would come into the community and ask to change the zoning on a piece of property without approaching the property owners. No one else spoke. Brittain stated that the public hearing will be continued at the December 21, 2015, Planning Commission meeting.