Agenda - Economic Development Authority - 10/12/2017

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4.01: Review Status of Request to Install and Maintain a Ground Mounted Solar Energy System on the Property Legally Described as Lot 3, Block 1, River Crossing Addition (Project No. 17-135); Case of Connexus Energy 1.Appeal for Issuance of a Development Permit on an Officially Mapped Parcel 2.Zoning Amendment to Include Solar Energy Systems as a Principal Use with the Issuance of a Conditional Use Permit in the Public/Quasi-Public District 3.Zoning Amendment to Rezone a Property from R-2 Residential to Public/Quasi-Public 4.Conditional Use Permit to Install and Maintain a Solar Energy System Community Development Director Gladhill presented the staff report. Economic Dev. Mgr./Assistant City Administrator Brama provided background information on the existing solar farm and bee habitat on the Connexus property. He stated that staff had a discussion with Connexus Energy about their desire to expand their solar farm on their outlot in mid 2016. He noted that the Connexus outlot would be a great fit for economic development and therefore staff suggested Connexus also consider other available properties as part of their process. He stated that as Connexus investigated other available sites, they landed on a site owned by Anoka County. He reviewed the economic development opportunity cost, explaining that generally, businesses pay twice the amount of taxes that residential properties pay. He reviewed the opportunity loss that would occur if the solar farm were not allowed on the Anoka County site. He explained, Connexus told staff that if the Anoka County site is not allowed, Connexus would move onto another community rather than pursuing a solar farm on the Connexus outlot. Community Development Director Gladhill reviewed some of the challenges that the Planning Commission will consider when this item is returned for their discussion. Councilmember LeTourneau stated that he found the tax base information helpful. He asked if the Anoka County site is also subject to a two percent tax rate. Economic Dev. Mgr./Assistant City Administrator explained that the use determines the tax classification rate, not local zoning districts. Chairperson Steffen noted that Anoka County owns that land and therefore is not a tax paying entity. Community Development Director Gladhill stated that currently Anoka County leases the property, which is being used for agricultural purposes, so there are taxes being paid on the property. He noted that Connexus is a tax paying entity as well. He believed that there would most likely be tax credits because this is an alternative energy use. Economic Development Authority/September 14, 2017 Page 2 of 8