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Port authority authorizes staff to continue negotiations with Balanced Rock Power on 55-acre option
Summary
Fergus Falls Port Authority voted to authorize staff to continue lease-option negotiations with Balanced Rock Power on a 55-acre site after staff reported the company would not move directly into a lease and would likely sell the finished project to a separate owner-operator.
The Fergus Falls Port Authority voted to authorize staff to continue negotiations with Balanced Rock Power on an option covering the full 55-acre site, the authority confirmed during its meeting.
Port Authority staff member Clara summarized responses from Balanced Rock Power to questions posed by the port. Clara said Balanced Rock indicated it would not move directly into a lease but instead prefers an option period during which it would prepare the site for sale to a separate ultimate owner-operator. Clara said the company described industry-standard development steps and noted it was formed in 2021; it reported that 3 of its 29 projects have been sold and are on track to begin construction, and that project development and permitting — including the MISO review process — can take up to five years.
The nut of the port authority’s decision was timing and scope: Balanced Rock wants an option on the entire 55 acres but indicated it could finalize a purchase or lease for a smaller footprint (about 30 acres) later. The port discussed the length of the option (up to five years), possible escrow to cover legal fees (staff proposed $10,000–$15,000), and a clause Balanced Rock offered to add to a lease allowing reimbursement of attorney fees up to $5,000 after lease execution.
Board members raised practical questions about infrastructure and long-term site use. One member asked whether private development with private wells or septic had been considered to reduce upfront infrastructure costs; Clara said that would require additional engineering analysis and potential changes to existing local code. Members also discussed asking county staff for a property valuation estimate so the port could better understand potential investment and tax implications if a large-scale energy storage project were developed on the site.
A motion to allow staff to continue negotiations on the full 55-acre option and to sign a letter of intent for lease negotiation was made and seconded; the chair called the question and the motion carried. The port noted Otter Tail Power has a parallel schedule tied to the MISO application period, which is closing in April, increasing the need to conclude port decisions in the near term.
The port will proceed with staff-led negotiations and return to the authority with draft documents or further recommendations as developments occur. The port’s next agenda item addressed an Otter Tail Power lease and purchase option.
