City briefs board on solar lease collateral agreement and protections for Franklin’s 1.5 MW project
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Summary
City staff updated the board on a public‑private solar project at the water reclamation facility: Energy Source Partners would install up to 1.5 megawatts of solar and flow batteries on 4.2 acres; the city negotiated collateral terms with the bank including a right of first refusal and options for equipment removal if the city declines a bank‑arranged tenant.
City staff updated the Board on the city’s public‑private solar partnership at the water reclamation facility. Sean (staff) summarized the amended lease: the city leases 4.2 acres to Energy Source Partners, which plans to install up to 1.5 megawatts of solar capacity and flow batteries to support plant operations. Sean said no site work has started and that Energy Source Partners has until December 2027 to complete the project under the amended contract.
City legal/finance staff explained the collateral assignment required by the lender: because the equipment and improvements will be located on public property, the bank’s collateral arrangements must involve the city. Staff said the city negotiated protections including a city right of first refusal to purchase equipment if the bank seeks a new tenant, and the bank agreed it cannot find a tenant without the city’s involvement. Staff described the approach as protective of the city’s long‑term interest and said all parties present were satisfied with the negotiated terms. Board members asked about obsolescence risk once equipment might become city property; staff said ownership phases are staggered and the partnership model has evolved over the last 13–14 years to address lifecycle issues.
