District pauses solar proposal after developer terms would require district financing
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Summary
Bay City ISD staff told trustees that a solar developer’s investor model would leave little revenue for the district unless the district used bonds or a loan; staff withdrew the item from consideration and will not present a formal proposal at this time.
Bay City ISD staff removed a proposed solar power proposal from the board agenda after discussing the financial terms with a potential developer. The superintendent explained staff had initially explored a no-upfront-cost model where an investor would purchase equipment and the district would receive energy revenue. Staff reported the developer’s investor structure would capture most of the financial return, and the district would receive minimal revenue unless it financed the project itself through a bond or loan. Because the district is not in a position to issue a bond or take a loan, staff said they were not comfortable bringing a proposal to the board at this time and removed the item from consideration. No motion or vote to adopt a solar contract was taken at the meeting. Staff said they had been informed that the developer’s terms changed and that the item was being taken off the agenda following that update. Members of the board asked clarifying questions but no formal action occurred. Staff did not provide dollar figures for estimated costs or projected returns during the discussion.
