Lunenburg adopts $25,000-per-megawatt solar developer compensation policy, raises CUP fee
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Summary
The Board adopted a policy requiring solar developers to pay $25,000 per megawatt in additional compensation (paid in three installments) and increased the application fee for solar farm CUPs to $2,500; the Board also noted Red Brick Solar must move forward on its CUP timeline.
At its May 12, 2022 meeting the Lunenburg County Board of Supervisors adopted a financial compensation policy for solar developments and approved a higher Conditional Use Permit application fee for solar farms.
Supervisor T. Wayne Hoover, reporting for the Finance Committee, recommended that in addition to annual revenue-share payments solar developers pay the County $25,000 per megawatt of generated capacity to help offset county costs (for example, the emergency communications system Project LUIS). The Board adopted the policy unanimously. The policy specifies payment of 1/3 within 60 days of Conditional Use Permit approval by the Board, 1/3 at the time a building permit is issued for construction, and 1/3 within 90 days of commencement of commercial operations. The Finance Committee and Solar Committee recommended that these financial terms be agreed to in writing before a CUP application is heard by the Planning Commission; the Board also required a building permit fee and an escrow fund sufficient to cover third-party consultants, professional fees, county staff time and administrative expenses during construction.
Administrator Tracy M. Gee recommended increasing the application fee for a solar farm CUP to $2,500 plus any costs incurred for advertising and postage because these applications require three public hearings and additional staff preparation. The Board approved the increased fee.
County Attorney Frank Rennie reported two Finance Committee members met with representatives of Red Brick Solar to discuss county siting agreement financial terms; Red Brick Solar planned to confer with management and follow up, and Mr. Rennie said action on that CUP must be taken at the June meeting to avoid the applicant’s timeline being exhausted. Director of Community Development Taylor Newton told the Board the Dogwood Lane Solar Project will come before the Board in the coming months.
The solar policy, the increased CUP application fee and the administrative updates were adopted or approved by unanimous votes recorded in the meeting minutes.