O'Fallon staff proposes I-2 zoning and $9,000/acre annexation fee for large-scale solar farms; committee discusses decommissioning, fencing and tax impacts

City staff proposed a zoning text amendment to add an I-2 Industrial Solar Farm District that would regulate large-scale commercial solar farms within O'Fallon’s municipal and 1.5-mile extraterritorial planning jurisdiction.

Greg Anderson, director of community development, told the committee the amendment is intended to align the city’s regulations with Illinois Public Act 1021123 (effective Jan. 27, 2023), which establishes uniform standards for siting commercial wind and solar energy facilities. Anderson said the proposed ordinance would mirror the state’s most restrictive standards for setbacks, height, screening and coverage where permitted and would require developers to pursue a special-use approval with a public hearing.

A central provision staff proposed is a $9,000-per-acre annexation fee. Anderson explained the fee is based on a formula using the future land-use map’s maximum density for low-density residential (4 units per acre) and the city’s annexation-fee calculations ($22.50 times units per acre), producing $9,000 per acre. Staff said the fee is intended to create a fund that could be used if a solar farm is later decommissioned and becomes a municipal obligation.

Committee member Ross asked whether the city could require developers to escrow decommissioning funds. Ross: "Is there a way... have some kind of set aside where when they do, they have to put in escrow or something..." Anderson replied: "That is essentially why we came up with the formula to impose a $9,000 per acre fee," and said staff would hold those funds so the city could address decommissioning if necessary.

Members also asked about FAA or Air Force base reviews for projects near flyover areas; Anderson said the city routinely routes large projects near the base for a cursory review with base planners. Questions were raised about environmental impacts, stormwater/runoff, and fencing. Anderson said fencing, screening and buffer requirements would be addressed case by case through the special-use process; the staff proposal includes a 30-foot setback and an 8-foot landscape buffer where an I-2 district abuts residential zoning.

Anderson told the committee that several proposed solar petitions have appeared recently in the county or within the 1.5-mile planning jurisdiction, some exceeding 100 acres, and that counties currently hold permitting jurisdiction under the state law; municipalities can adopt zoning regulations but cannot impose requirements more restrictive than the state act.

The Planning Commission recommended approval of the proposed text amendment by a 9–0 vote on Sept. 23, but that body added a recommendation to apply parkland dedication fees; city staff said parkland dedication typically applies to new residential lots when building permits are pulled and recommended not applying parkland dedication fees to solar farms.

Because the committee lacked a quorum, no committee vote was recorded and the item will proceed to the full City Council for consideration. Staff asked for public feedback, and several residents raised tax-assessment and decommissioning concerns during public comment.