Lindstrom approves state solar grant and contracts for liquor store and new fire hall

Lindstrom — The City Council on Tuesday approved a state grant agreement and installation contracts to add solar arrays to the municipal liquor store and the new fire station.

Staff described the grant and two installation agreements with Renewable Energy Partners and told the council the package meets state reporting and timeline requirements. "The grants that we currently have in hand cover 70% of the total cost of installation," staff said. The city will initially cash-flow the project from its building fund, which staff reported had a balance of $424,009.45, and expects to recover the remaining 30% through federal tax incentives when the project is complete in 2026 and the city applies for reimbursement in 2027.

Councilors asked about payback calculations, maintenance and warranty coverage. Staff said preliminary payback estimates are about 10 years and that the installer has committed in writing to provide required documentation for grant reimbursement and to help with commissioning paperwork. Staff also said the installation contracts were reviewed by municipal counsel (Campbell Knutson) and that the installer confirmed they will meet reporting and timeline requirements.

Councilor (speaker 5) moved to accept the grant and installation agreements; the motion was seconded and approved unanimously.

The project will be paid from the city's building fund and staff cautioned that federal tax incentives are not guaranteed until the city files for them in 2027; if incentives are not available the city may need to use fund balance to cover the remaining cost. Staff said installers will handle required reporting and provide photos and paperwork as part of the contract.