Lake Elmo EDA asks council to explore state aid to pay off landfill solar bond

The Lake Elmo Economic Development Authority unanimously voted to ask the City Council to seek counsel about pursuing state funding to pay off the outstanding bond on the closed landfill so a solar project can move forward.

The EDA’s chair introduced the item during the meeting and moved that staff or a city representative discuss with the city attorney whether the EDA or city should request that the local state representative introduce legislation to pay off the bond. The motion was seconded and carried without recorded opposition.

EDA members said the landfill bond was a barrier to development at the site and that paying the remaining principal could allow the city to pursue a solar array that would generate revenue. The EDA noted the original bond was roughly $4,750,000 and that the outstanding balance is “about $3,250,000” as referenced during the discussion.

The item grew from an earlier grant application process: the EDA submitted four letters of intent for priority-2 grants related to the landfill and other park and trail projects, and the EDA’s submission seeking funds to pay off the landfill bond was not advanced by the reviewing group. The reviewers categorized the request as source remediation and declined it, the EDA said.

EDA members discussed options. One member recommended staff or the mayor speak with the city’s state representative rather than seeking a legal opinion first, arguing it would cost less staff time and might be the most direct avenue. Another member suggested obtaining a legal opinion to confirm whether an applicant for legislative relief should be the city or a council-appointed representative.

The motion approved by the EDA directs the chair or other designated member to consult with council — and, if necessary, the city attorney — about next steps, including whether to request assistance from the city’s state legislators. The EDA did not set a dollar amount for legal advice; members characterized the likely cost as “a couple hundred dollars” of attorney time if legal review is needed.

No formal commitment of city funds or legislative endorsements was made at the meeting. The EDA recorded no formal follow-up dates for council action during the meeting; the chair said he would make an appointment to talk to the council about the matter.

The discussion clarified two practical constraints: city officials said (1) the landfill site is zoned for solar and certain closed-landfill solar installations are technically feasible without excavating the landfill, and (2) nothing the EDA described could be built on the property for certain until the bond limitation is resolved. EDA members also noted that other funding or leasing models exist, including leasing the site to a solar developer or the city receiving revenue by building and operating an array itself.

The EDA did not adopt a definitive financing plan and acknowledged that state legislators or council direction could decide whether the city pursues a special appropriation or another mechanism to retire the bond.