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Board approves lease estoppel to keep Sandhills solar project financing on track
Summary
Waverly Utilities approved Resolution 16-25, signing a lease estoppel so Sandhills (now Southeast Municipal Iowa LLC) can continue securing financing for a planned solar array; staff said construction depends on the developer finishing financing and mobilization timelines.
The Waverly Utilities Board approved Resolution 16-25 to sign a lease estoppel enabling Sandhills Energy’s Iowa affiliate—now identified in documents as Southeast Municipal Iowa LLC—to continue securing financing for a proposed solar array on utility-leased land.
Kurt, a staff member, explained the lender had requested a lease estoppel to verify there have been no significant property changes since Waverly Utilities granted the original lease approved by the board in 2022 and the property acquisition in late 2023. “It appears Sandhills … is still securing financing for the solar array project,” Kurt said. He reported legal review had found no “significant findings” on title or related documentation.
Kurt told the board that the developer had requested the verification as part of lender due diligence and that, once financing is secured, Sandhills would move into mobilization and construction. He said staff had extended the project construction window to Dec. 31, 2025, and that Sandhills indicated it would hold a pre-construction meeting after financing is in place. “I don't have any firm dates, times, or anything of that nature at this moment,” he added.
Board members asked about potential property tax effects; Kurt said the utility had pursued abatement on the land but had “no confirmation or numbers” on taxable value assigned to project equipment. Board members also clarified that utility-owned funds and communications utility funds must remain separate for audit purposes; Kurt said the lease estoppel as drafted applied to Waverly Utilities in its utility role.
A motion to approve Resolution 16-25 passed on a roll call vote; the meeting record shows the chair announcing the resolution was approved and recorded affirmative votes from board members. The resolution authorizes signing the lease estoppel so the developer can proceed with lender-required steps toward construction.
Staff said no construction work has started and that the project remains contingent on the developer securing financing. The board’s approval only confirms there have been no changes to the property that would affect the lender’s title or lease review; it does not commit the utility to construction or to financing the project itself.
