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Duluth staff brief council on Hayfield solar project; revenue and approvals remain pending
Summary
City staff outlined the Hayfield solar energy project with Eden Renewables and Minnesota Power, saying the project would be north of Hawk Ridge, provide lease and tax revenue to Duluth, and is contingent on Minnesota Power approval
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City staff told the council the proposed Hayfield solar energy project would be located north of Hawk Ridge, north of Amity Creek and near the northern boundary of Duluth, and that Eden Renewables would own and operate the facility if the project proceeds.
Phil B. Williams, a city staff member, said the project requires Minnesota Power to permit Eden Renewables to connect to its electrical infrastructure so the private developer can sell power to Minnesota Power. “In order for the project to be financially viable, under state statute, Minnesota Power must permit Eden Renewables to connect to Minnesota Power’s larger electrical infrastructure system and sell them power generated at this solar site,” Williams said.
Williams told councilors the city would not directly use the project’s power. Instead, the total anticipated financial benefit to the city is about $1.6 million over 25 years, including roughly $1.4 million in lease payments and roughly $170,000 from a 20% portion of energy production taxes Eden would pay.
Council members asked about site selection and solar viability in a cloudy region; Williams said the developer assessed eight candidate sites and presented engineering analyses supporting viability. He also said the city discussed the project with the Natural Resource Commission when establishing boundaries for the adjoining Lester-Amity-Hawk Ridge Natural Area; the commission approved boundaries that intentionally excluded the site to allow this use.
The agenda item asks councilors to authorize negotiation of development and lease agreements with Eden Renewables; staff emphasized the project remains subject to Minnesota Power approval and other standard steps.
Why it matters: The project could produce long-term lease and tax revenue for Duluth and turn a city-managed site into a privately owned, operated solar facility. It affects land use near Hawk Ridge and will change the city’s long-term revenue picture if finalized.
Next steps: Staff requested authorization to negotiate development and lease agreements; final agreement and any approvals remain contingent on Minnesota Power and subsequent city approvals.
