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EDA asks council to research landfill solar lease; council asks staff for legal-cost estimate
Summary
Members of Lake Elmo’s Economic Development Authority asked the council to explore whether the city can lease the closed landfill for a solar farm without paying off outstanding general obligation bonds; council asked staff to estimate legal and staff costs and consider the item for a future workshop.
Members of Lake Elmo’s Economic Development Authority on Oct. 21 asked the City Council to direct staff and the city attorney to research legal restrictions and options for placing a solar farm on the city’s closed landfill site.
EDA member Tony Manzera (spelled in the transcript as Manzera/Manzeris) told the council the site has a long, difficult environmental history and that uses such as a solar array are included in current zoning. He said private developers have told him a public‑benefit lease or power‑purchase agreement might be possible without retiring general obligation (G.O.) bonds tied to the landfill, but that council direction and legal review are needed to confirm whether state or bond restrictions require payoff before lease revenue could be used.
Director Stolpa and staff said next steps would include continued industry outreach (including staff contact with an Xcel Energy representative) and a legal review of bond covenants and landfill obligations. Staff did not have a time or cost estimate for legal review at the hearing; councilmembers generally supported asking staff to obtain an estimate and bring the issue to a council workshop for discussion.
Council questions included whether the Minnesota Pollution Control Agency or other state oversight remains involved (staff said the landfill remains in the state landfill program and that the city’s landfill supervisor would need to sign off on any design), how general‑obligation bonds tied to landfill remediation would be repaid, and what exposure the city would have if it pursued a lease. Staff said some legal and technical work would be required, including outreach to industry experts and a city‑attorney review of bond documents and potential constraints.
No formal action was taken to commit funds; council asked staff to return cost and timeline estimates and to schedule a workshop discussion so the council could decide whether to direct further work or place the issue on the EDA work plan.
Director Stolpa said staff would obtain an industry contact estimate and follow up with a proposed scope and cost for legal review if the council chooses to proceed.
