Board approves Kenyan Solar LLC project with owner-required decommissioning bond

The Goodhue County Board approved a conditional-use permit for Kenyan Solar LLC to build a 4-megawatt commercial solar farm, and amended the permit condition to require the property owner to post a decommissioning financial security in the form of a bond.

Land-use staff told commissioners the developer submitted a decommissioning plan with a cost estimate of $414,807; the county's zoning ordinance allows the board to require financial security equal to 125% of decommissioning costs, which in this case was calculated as $518,508. Staff recommended requiring financial security and noted that many Minnesota counties now require some form of security for larger utility-scale solar projects.

Commissioners discussed whether the bond should be the responsibility of the property owner or the project operator and how the county would track the ongoing security. County attorney input indicated the property owner is ultimately responsible for the land; the board directed staff to require the property owner to submit the bond in the property owner's name and to accept a surety (bond) rather than informal financial guarantees. Staff said it would work with the developer and finance staff to establish a process to track required securities.

The planning commission had reviewed the conditional use and recommended approval with findings and conditions. The board adopted the planning commission's recommendation with the amended condition that the property owner must provide a bond at 125% of the decommissioning cost before final approval.

Ending: The conditional-use permit was approved; staff will draft the recorded documents and work with the developer and finance department to establish procedures for accepting and monitoring the required bond.