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Council authorizes lease with option to buy 34 acres for proposed energy storage project
Summary
The council authorized a three-year lease with Linkville Land Holdings LLC for roughly 34 acres at Memorial Drive and Fountain Avenue, with a $1,000 monthly lease and a $250,000 sale price if the developer secures state permits and completes required interconnect studies.
The Klamath Falls City Council on March 17 authorized the city manager to execute a land-lease and purchase agreement with Linkville Land Holdings LLC for approximately 34 acres located at Memorial Drive and Fountain Avenue. The agreement provides a three-year lease at $1,000 per month and a potential sale price of $250,000 if the developer secures required permits and closes the purchase.
Staff described the property as surplus land the city has tried to sell for several years. The proposed developer, Linkville Land Holdings principal Nick Behrs, told the council the project would pursue an energy storage facility intended to provide dispatchable power to the local grid. "The major driver for this project is energy stabilization for the community," Behrs said, describing seasonal dispatch needs after the removal of hydro resources used historically for agricultural loads.
City staff said the project requires extensive state permitting, including reviews by agencies such as the Department of Environmental Quality and the Department of Energy, and that interconnection to the regional utility would require studies by Pacific Corp. Staff emphasized that the city would lease the land first so the city would retain control in case the developer did not obtain necessary permits. During the lease period the developer may access the property for environmental studies and permitting work but may not undertake permanent improvements until permits are secured.
Councilor questions touched on who would dispatch stored energy onto the grid (answer: Pacific Corp) and responsibility for safety, security and maintenance of the facility (developer/operator with coordination with Pacific Corp and project engineers). Behrs said specific battery technology had not been finalized; the team is "battery agnostic" and may propose different technologies in the interconnect application.
The council approved the lease-and-purchase authorization by voice vote after a motion to authorize the city manager to execute the agreement. The motion recorded the monthly lease of $1,000 for three years and a $250,000 sale price if the purchase proceeds.
