Council considers $1.8 million bridge loan to complete 5 MW solar project; vote not recorded

Councilmembers reviewed a proposal to provide a short-term $1,800,000 bridge loan to finish financing for a 5-megawatt solar facility south of Kennett. The loan was described as temporary financing until the city receives direct-pay investment tax credits expected to equal roughly 40% of the $9,200,000 project cost.

The presenter said the project cost is $9.2 million and that 40% of that amount is expected to be returned to the city as direct-pay investment tax credits once the project goes live. The speaker estimated the project would go online in July and said the city had asked for a three-year bridging term; the loan would carry a fixed interest rate of 3.95%.

During discussion, the presenter said the solar facility will feed the city’s distribution network and lower the city’s purchased power needs. The presenter also characterized the effective generation cost as “sub‑$10” per megawatt-hour with the loan in place and contrasted that with a market price remark that “power tomorrow is $56.”

A motion to approve the bridge loan was made and seconded. The motion text presented to the council requested a $1,800,000 loan at a fixed 3.95% to bridge the difference until tax credits are paid. The transcript records the motion and a second but does not record a roll-call or voice vote on the motion.

Because the meeting record does not show a final vote, no formal approval is recorded in the transcript. Councilmembers indicated the loan term, repayment timing tied to tax-credit payment, and project go-live timing would determine the schedule for reimbursement.