Chesapeake City Council approves Yadkin Energy siting agreement, leases and multiple grants and appropriations

Chesapeake City Council on an unspecified date approved a package of resolutions including a siting agreement for a proposed battery energy storage facility, a lease for city property, and grant agreements and appropriations. The council adopted each item on voice votes recorded as unanimous (9-0).

The most high-profile item was a resolution authorizing the city manager to execute a siting agreement with Yadkin Energy Center LLC tied to a previously approved conditional use permit and rezoning for a battery energy storage facility. The written agreement was described by a representative for the applicant, Tyler Rosay, as complying with the statutory requirement in Virginia Code § 15.2-2316.7; Yadkin Energy told council it is prepared to provide required mitigation and a cash contribution to support broadband deployment. A member of the public, Vic Nichols, objected to applying the agreement to agricultural areas; council proceeded to approve the resolution 9-0.

Council also approved a retroactive lease with Newport News Shipbuilding Employees Federal Credit Union (doing business as Bayport Credit Union) for office space and operation of an interactive teller machine on city-owned property at 401 Albemar Drive; the lease was retroactive to April 1, 2024 and adopted 9-0.

Other actions approved included a small payment to the U.S. Army Corps of Engineers to renew and obtain a drainage easement related to the Albemarle and Chesapeake Canal (payment of $5,270), two state grant agreements and related appropriations for the city's open space and agricultural preservation work (a $161,129 Virginia Department of Forestry match and a $310,105 Virginia Land Conservation Foundation award), and a consent-agenda package that included mutual-aid agreements (including an agreement to grant U.S. Department of Veterans Affairs access to the city radio system and a mutual-aid agreement with Currituck County, N.C.), several personnel resignations, a small refund to a taxpayer, and a $3,000,000 transfer within the Human Services FY2025 operating budget to align salaries with budget requests. Each of those consent items was adopted on a single motion and recorded as adopted by a 9-0 vote.

Why it matters: the siting agreement implements state statutory requirements for certain energy facilities and ties the project to local mitigation commitments; the grants increase the city's funding for open-space preservation; the Human Services transfer reallocates existing funds to align salaries in that department. Council recorded unanimous approval on all items presented at this meeting.

Votes at a glance

- Resolution authorizing execution of a siting agreement with Yadkin Energy Center LLC (battery energy storage siting agreement pursuant to Va. Code § 15.2-2316.7): adopted 9-0. - Resolution authorizing lease with Newport News Shipbuilding Employees Federal Credit Union (Bayport Credit Union) for space at 401 Albemar Drive (retroactive to April 1, 2024): adopted 9-0. - Letter agreement to pay $5,270 to U.S. Army Engineer District Norfolk for preparation/renewal of a drainage easement and authorization to execute a new easement: adopted 9-0. - Intergovernmental agreement with the Virginia Department of Forestry (state matching funds $161,129) for purchase of development rights under Chesapeake Open Space & Agricultural Program and appropriation of $161,129 to the Open Space and Agricultural Preservation 2 CIP: adopted 9-0. - Contractual agreement and appropriation of $310,105 from the Virginia Land Conservation Foundation to the Open Space and Agricultural Preservation Program 2: adopted 9-0. - Consent agenda (includes: mutual-aid agreement allowing U.S. Department of Veterans Affairs access to city emergency radio system; mutual-aid agreement with Currituck County, N.C., for fire/EMS; FY2025 Human Services internal transfer of $3,000,000; personnel resignations; Shalala Commons LLC refund $6,620.55): adopted 9-0.

Details and context: Council heard a brief presentation and public comment before votes. Tyler Rosay, attorney for the applicant, told council the siting agreement was provided to meet state law requirements and that the applicant appreciated the city's negotiation on the agreement. The only speaker during that public hearing who registered an objection questioned applying the agreement to agricultural land. Planning and public-works items tied to state and federal partners were presented by city staff (presentation slides were not included in the transcript). The resolution language cited Virginia Code § 15.2-2316.7, which governs local siting agreements for certain energy infrastructure.

No council member requested further study or referral; staff will proceed to execute the agreements and record transactions as authorized.

Provenance: the city clerk read the siting-agreement item and other agenda items; Tyler Rosay spoke for the applicant during the public hearing; the council vote adopting the siting agreement and other items was recorded in the transcript.

Ending: With the package of measures approved, council directed city staff to finalize the agreements and to proceed with the appropriations and intergovernmental grant contracts as authorized. Council left other departmental budget requests to the city manager's established budget process for later consideration.