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PLM 05/19/2021 FRIDLEY PLANNING COMMISSION WEDNESDAYMAY 19, 2021 7:00 P.M. VIA ZOOM MINUTES CALL TO ORDER Chairperson Hansen called the Planning Commission Meeting to order at 7:00 p.m. ROLL CALL PRESENT: Amy Dritz, Ryan Evanson, Mark Hansen, Terry McClellan, John Buyse II, and Ross Meisner. ABSENT: Mike Heintz OTHERS PRESENT: Stacy Stromberg, Planning Manager Dan Rogers, TC Solar RCE LLC Jason Kringle, Medtronic Rochelle Danielson, Medtronic APPROVE MINUTES April 21, 2021 Motion by Commissioner Meisner to approve the minutes. Seconded by Vice- Chairperson Evanson. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON HANSEN DECLARED THE MOTION CARRIED UNANIMOUSLY. PUBLIC HEARINGS: 1. Consideration of a Special Use Permit, SP #21-04, by TC Solar RCE LLC, to allow solar panels over portions of the existing parking lot at the Medtronic Rice Creek Campus, generally located at 6951 Central Avenue NE. Motion by Commissioner Buyse to open the public hearing. Seconded by Commissioner Meisner. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON HANSEN DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING WAS OPENED AT 7:02 P.M. Fridley Planning Commission Meeting May 19, 2021 Page 2 of 13 Stacy Stromberg, Planning Manager, stated the petitioner, Dan Rogers on behalf of Nokomis Energy and Medtronic, Inc. is requesting a special use permit to allow a Photovoltaic Carport Canopy 1.0-megawatt Solar Energy System, which will cover a portion of the parking lot and walkway on the Medtronic Rice Creek Campus. The project will take place on the East Rice Creek Campus, which is addressed as 6951 Central Avenue. Ms. Stromberg stated as noted in the petitioner’s narrative, Medtronic recently committed to achieving zero net carbon emissions by 2030, including obtaining more than 50% of their energy from renewable sources by 2025. This project represents one of a number of large, clean energy projects Medtronic is investing in to support their sustainability goals. Medtronic employees will be able to subscribe to the energy produced by the system as part of a Community Solar Garden program, similar to what the City subscribed to in early 2020. Ms. Stromberg stated t he subject property is located on the east side of Central Avenue, th north of 69 Avenue. It is zoned M-2, Heavy Industrial as are the properties to the north, west and south. Single-family homes, the Black Forest Condos and the Rice Creek Townhomes are located to the south. The Medtronic Campus on the west side of Central Avenue was developed in the early 1970’s. In 1981, the building on the subject property was constructed as was the skyway that connects the west and east campuses. In 1991, an addition was constructed to the existing building. Ms. Stromberg stated t he purpose of a special use permit is to provide the City with a reasonable degree of discretion in determining the suitability of certain designated uses upon the general welfare, public health, and safety of the area in which it is located. The special use permit gives the City the ability to place stipulations on the proposed use to eliminate negative impacts to surrounding properties. The City also has the right to deny the special use permit request if impacts to surrounding properties cannot be eliminated through stipulations. Ms. Stromberg stated t he M-2, Heavy Industrial zoning code allows solar energy devices that are part of the principal structure as an accessory use, which means it is allowed without special consideration. If the solar device is located on the roof of a building, it is part of the principal structure and simply requires a building permit to ensure the roof is structurally sound to hold the solar device. Many Fridley homeowners and businesses have this type of solar. The code does, however, require that a special use permit be issued if the solar device is not part of the principal structure. This is the City’s first request to allow solar that is not part of the principal structure. Ms. Stromberg stated s ome uses allowed with a special use permit have built-in conditions within the Code, for example, outdoor storage is allowed with a special use permit Fridley Planning Commission Meeting May 19, 2021 Page 3 of 13 provided 9 conditions can be met, related to the amount of outdoor storage allowed, height, types of items to be stored outside, etc. In the case of solar devices that are not part of the principal structure, additional conditions are not listed within the Code. Ms. Stromberg stated a s a result, staff reviewed the Minnesota Model Solar Ordinance and consulted with other communities about best practices for this type of solar. What we learned through this process was to treat them as an accessory structure and apply any requirements we may have for accessory structures to the proposed solar canopy. Ms. Stromberg stated t he petitioner is proposing to construct a solar carport and covered walkway that will consist of approximately 3,300 solar panels that will cover approximately 240 parking stalls and the walkway to the building entrance. The foundation of the canopies will be poured piers that are embedded in the ground, and the solar modules will be attached to the top. The solar canopies will tilt west and south and have a minimum clearance of 13 feet 6 inches, which is the minimum required based on the City’s Fire department’s review. The solar panels will have an anti-glare coating, which is an important factor considering the residential users to the south. Ms. Stromberg stated t he petitioner and representatives from Medtronic started meeting with City staff a few months ago to make sure their proposal will comply with City requirements. The petitioner has worked through requirements with the Fire Department when it comes to clearance under and around the canopies and the setback of the building from the canopies. The proposed solar canopy will be approximately 42 feet from the building and 104 feet from the southern property line. The 104-foot setback from the south includes a 50-foot landscaped buffer that will help with separation and screening from the residential properties to the south. Ms. Stromberg stated t he canopies will cover six, 49-foot by 181-foot parking areas, with a 16-foot open drive aisle between the parking areas. The canopy will also cover a 49-foot by 565-foot walkway to the buildings entrance. Generally, ground-mounted solar does not need to comply with lot coverage standards if the soil under the equipment is maintained in vegetation and not compacted. In this case, the solar canopy is being located over existing hard surface parking areas, so there will not be an additional storm water impact. A stipulation will still be placed on the special use permit to make sure the project meets any requirements set forth by the City’s Engineering department and the Rice Creek Watershed District. Ms. Stromberg stated i n 2018, the City Council adopted an Energy Action Plan. The vision of the plan is “to continue leading by example and engaging residents, businesses, and institutions to save money and reduce greenhouse gas emissions for the benefit of everyone Fridley Planning Commission Meeting May 19, 2021 Page 4 of 13 in the community”. Industries are a heavy energy user, so the proposed use would meet what the City is hoping to achieve through the adoption of the Energy Action Plan. Ms. Stromberg stated Renewable Energy and Solar are also addressed and encouraged through the City’s 2040 Comprehensive Plan. The Plan states support of the Next Generation Energy Act, which was adopted by the State legislative in 2007, and requires that 25% of the total energy used be derived from renewable energy by 2025. It notes in Fridley, the greatest potential for solar is within the large roof and extensive hardscapes in the City’s industrial areas and encourages solar energy in these locations. The City is committed to supporting these goals in order to increase the City’s environmental quality and resiliency. Ms. Stromberg stated Staff has not heard from any neighboring property owners. The petitioner anticipates that is this special use permit is approved, construction would start as early as September of this year. Ms. Stromberg stated City Staff recommends approval of this special use permit. Solar Energy Devices NOT part of the principal structure are a permitted special use in the M-2, Heavy Industrial zoning district, subject to stipulations. Ms. Stromberg stated Staff recommends that if the special use permit is granted, the following stipulations be attached. 1. The petitioner shall meet all requirements set forth by: a. The Building Code b. The Fire Code c. The City’s Engineering department d. The City’s Planning department – including the addition of landscaping in the green space between the solar panels in the parking lot and the residential neighborhood to the south. e. The Rice Creek Watershed District 2. The foundation, piers, canopies, and any materials used for the construction of the solar carports shall be remain free of rust and maintained in a condition of reasonable repair and appearance. 3. Any damage to the solar canopy structure shall be repaired within 60 days of the damage occurring. 4. All equipment shall be removed, and the site restored within one year of the date the system is no longer in service or has been rendered inoperable or an extension has been received from the City. If an extension has not been approved, such solar energy system shall be deemed a nuisance, and the City may act to abate such nuisance pursuant to Chapter 182 of our City Code. Fridley Planning Commission Meeting May 19, 2021 Page 5 of 13 Commissioner Buyse asked will the panels move throughout the day? It was mentioned they would be facing west and south. It looked like from the rendering it was more something that would move west to east. Dan Rogers, TC Solar RCE LLC, replied, the carport structure is facing west, whereas the walkway is facing south. They will see that long, slender structure on the top going east/west. The structures will be fixed in place, and they will not move. They will be at a fixed angle. It was just because the carport literally covering the car section and the walkway, it ended up being at two different tilts. Commissioner Buyse stated so the tilt directions are not the same. It sounds like the carports will be facing west, and the walkway will be facing south. Mr. Rogers replied, that is correct. Chairperson Hansen asked, as far as solar panels working in the wintertime with snow accumulation, are they still pretty comparable to other periods of the year? Mr. Rogers replied, the short answer is, no. However, the panels they are selecting here are a particular type of technology known as bifacial where they will collect sunlight from both the front and the back sides of the panels. It is a relatively new move in the solar industry. But what that allows for is there is just more likelihood the panel can heat up during the early part of the day, and they have a water system planned for this structure which allows the snow to move off the panels and actually generate some energy. However, in general the winter is always a tough time for a solar system because the light hours are so few. The short answer is they will still generate, and they are aiming to remove some of the snow off the panels. Chairperson Hansen stated he imagined it would be a popular spot for employees to park. Mr. Rogers replied, Jason and Rochelle would have to answer that question, but he would assume that is a “yes.” Rochelle Danielson, Medtronic replied there have been requests to get covered parking for quite some time, so this is a good opportunity to get covered parking and get some use out of the solar. Commissioner McClellan asked regarding the 50-foot landscape buffer, are there going to be bushes, trees, tall trees? How tall can you go before you impede the sunlight you are trying to capture to the south? His only concern would be the individual homes to the Fridley Planning Commission Meeting May 19, 2021 Page 6 of 13 south. Right now, they see a parking lot so there is a piece of him that says it is not that big of a deal but just so we are all clear as to what kind of landscaping they are talking about. Ms. Stromberg replied, the landscape plan has not been designed yet. This site already th has a little berm along 69 so maybe it may be a matter of just adding some shrubs and that would be enough of a screening device, and they would not have to worry about how tall the trees are getting. That is something they can work out with the petitioner at building permit time. They would like to see some new materials added there because it looks like some stuff has died off over the years and is ready to be replaced. Commissioner Buyse asked whether the City has any issues with not having that in the language of this petition. Do we have any issues with not having any height or spacing requirements? Ms. Stromberg replied, all of that stuff is in Code. Stipulation No. 1 talks about the petitioner submitting the landscape plan to add additional green plantings there so she thinks they are covered. Commissioner McClellan stated he is not sure what kind of infrastructure goes into this, meaning do they recover the energy and then redistribute it in some form or fashion. They have big buildings there with flat roofs. Does it make any sense at some point to add solar to the buildings? Mr. Rogers replied, for this particular system the intention is they will be tying directly into Xcel’s distribution grid as part of their Community Solar program. Effectively this one will flow back and be used within the facility nearby and then at times when that demand is low, out into the broader distribution at work of Xcel. The question about the roofs is a good one. They are in discussions and those could be potential opportunities or projects they might see come down the pipe. He does not believe there is anything firm in that area at the moment. Commissioner Buyse stated, it says “Medtronic employees will be able to subscribe to the energy produced by the system as part of a community solar garden program”. He asked that to be explained. Mr. Rogers replied, effectively Xcel Energy has one of the nation’s best community solar programs whereby if you build a project on their distribution network, they will provide you bill credit compensated at the fair market value of the energy being produced. The Department of Commerce, Xcel, PC, and other stakeholders crafted the rules as part of legislation that passed in 2013 allowing for this. Ultimately that process determined what Fridley Planning Commission Meeting May 19, 2021 Page 7 of 13 that methodology determining the rate would be which then determines the value of the bill credit. For them as the developer and working with Medtronic, they then receive bill credits for the electricity and market and sell those to Xcel customers. Because this was cited with Medtronic in mind, really for the benefit of their employees to begin with, it only meant to allow them to partake in this program. They will actually receive discounts on their electricity bills as long as they are a customer of Xcel located in the same county or an adjacent county to this project. Commissioner Meisner stated why only do 60 percent of the lot? Why not do the other side of the walkway, why not do the west side? Is this a pilot or are there reasons why this was sized this way? Mr. Rogers replied, ultimately it is part of a program that Xcel has. Their hope is to continue to expand on the covered areas where it makes sense. Where Medtronic would like to see that happen. Ultimately the project is defined as a 1-megawatt system which then effectively limits you to a particular panel area, but that does not negate your ability to do another project. Really the metric there is, does it look like one development or a multiple development is really how those rules are written. That is why they will see this one come and potentially they would do another, but it is not a guarantee. Commissioner Meisner asked so Xcel limits them to 1 megawatt? Mr. Rogers replied, effectively, yes, the rules of the program limit that and Xcel was a part in crafting them. Commissioner Meisner asked, how long do these last? What is the reasonable life of these things? Mr. Rogers replied, these particular panels are warranted for 30 plus years. Both in the workmanship as well as the power, quality, and the output. The terms they are seeking here is commensurate with the actual program length which is 25 years or and they are potentially seeking 35 here which is what they describe as the useful life. You have a 5- year period maybe outside the panel warranty, but you can design and expect that system to run for at least 35 years. Commissioner Meisner asked Mr. Rogers if he mentioned water? Are they putting water into this to help clear the panels? He asked Mr. Rogers to explain that a little bit. Mr. Rogers replied, they are just making sure that the snow and the water runoff from the structures themselves do not impact either the drainage within the existing parking lot or cause a hazard for any of the cars or employees parked under it. Fridley Planning Commission Meeting May 19, 2021 Page 8 of 13 Commissioner Meisner asked so there is no active snow removal? Mr. Rogers replied, no, it will be a passive snow managed system. Commissioner Meisner stated he presumed facing south is better. He asked Mr. Rogers if he has considered talking to Medtronic to restripe the parking lot and put the rows going east/west and face them all south? Mr. Rogers replied, they did consider that. At the end of the day with carport structures the difference is not as dramatic as say a field ground mounted or a tracking system in the field. The complexity of making sure they have the adequate parking and it’s meeting all the requirements within Medtronic’s needs; it wasn’t worth the benefit of potentially doing that or adjusting. They were able to model it and confirm what they believed the energy output would be and based the project around that design. Commissioner Buyse stated based on the fact there are a lot of residents on the south side, and this is right on the south side of the parking lot, was there any discussion or thought of putting this on the northwest side so it would be less visible? Mr. Rogers replied, the intention right now is to pursue that other side for an additional project. There are two pieces of complexity there. One, that site is a former superfund site, therefore, it requires a little bit more on the environmental, engineering, and planning side. They felt that this project was probably the best one to bring forward first. They have intentions to move that project forward at the appropriate time, and they are hopeful that one will be as successful as well. Commissioner Buyse asked what is the precent that this will save? He saw 1,700 megawatt hours and that immediately correlated to residential houses. What would be the correlation to actual power saved for the property it is being put onto? Mr. Rogers replied, he believed it is roughly around 30 percent of the annual kilowatt usage of the main building. In terms of kilowatt hours, it is roughly just a little under 2 million kilowatt hours annually. Commissioner Buyse stated if that is 30 percent, what else do they plan to do to reach 50 percent by 2025 because that is ultimately their goal. He asked Mr. Rogers if he knew what the plan is to get that other 20 percent? Is it going to be solar? Will he be having those conversations? Mr. Rogers replied, he will have Jason or Rochelle answer this question. Fridley Planning Commission Meeting May 19, 2021 Page 9 of 13 Rochelle Danielson, Medtronic stated in the Twin Cities area they have a number of projects they are looking at. They also have co-generation projects in Puerto Rico and other areas around the world. They have an environmental team who is evaluating opportunities for Medtronic as a whole so some of the projects they have going on right now in the Twin Cities are just the start of it. Commissioner Buyse stated he was just curious because ultimately 3.5 years is not a long time away. He was curious if they could understand their vision or plans to hit those stated goals of 100 percent by 2030 will also come up very quick. Commissioner Meisner stated over the years and decades the efficiency of solar panels has been a hot topic. He asked where are these at? Mr. Rogers replied, there are a couple of ways to measure the panels effective area and efficiency is north of 20 so that includes the loft area of the panels. The cell efficiencies themselves are in the 24-25 north of that range. You are kind of in the mid to low 20’s for the panels themselves. However, it is probably moving to a better place to look, even on the small projects, at capacity factors because you are now getting bifacial modules where you are getting the light from the back side. That has cell efficiency area or that panel efficiency area is not necessarily telling you the whole story of how much energy you are going to produce; whereas the capacity factor which is effectively how many hours out of a year is this running compared to the theoretical maximum there could have been. That is in a high teen, low 20 percent range. Roughly if you had a natural gas plant running 24/7 that would have a 100 percent capacity factor. This is in the 20 percent range. Chairperson Hansen asked the petitioner if he has read and understand and agree with the stipulations as stated tonight? Mr. Rogers replied, he has, and he does. Motion by Commissioner Buyse to close the public hearing. Seconded by Vice Chairperson Meisner. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON HANSEN DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING WAS OPENED AT 7:34 P.M. Chairperson Hansen stated as somebody who has spent a lot of time, along with Commissioner Dritz, working on the City’s Energy Action Plan, along with Rachel Workin, Fridley Planning Commission Meeting May 19, 2021 Page 10 of 13 the City’s Environmental Planner, it is exciting to see this project come forward. He thinks it is great. Commissioner Dritz stated she is excited to see that Medtronic is putting in the solar panels and reducing their carbon footprint. It is totally online with the City’s Energy Action Plan especially with their heavy use industrial areas. She hopes it sets an example for the other businesses in our community. Commissioner McClellan stated Medtronic to say the least has a big footprint in northeast Minneapolis going back decades, and they have always been sort of on the forefront. He applauds them, and he is sure they are not doing it just because they are nice folks. He is sure the math works out just fine, but it is a great move, too. Vice-Chairperson Evanson stated he drove by the site yesterday and there is a sizable berm that separates the neighborhood. There are only a handful of homes that have a direct visual line to the parking lot. Considering that no one is here today objecting to it, his presumption is the community does not feel this will be a visual blight, and any blight is more or less mitigated by the existing tree line that is there, the berm, and perhaps some additional vegetation that may be put in. Commissioner Meisner stated if he were to make one objection, he would say they and the City should go to Xcel and say, let’s not limit these projects to 1 megawatt. Put in 10 megawatts with the headquarters, the Mounds View site, the west campus, and the central building. This seems to go with where Fridley wants to go as a city and s humanity and as a panel. Mr. Rogers thanked them and stated he would give the Commission’s message to Xcel. Commissioner Meisner asked Ms. Stromberg when is this planning on being constructed? Ms. Stromberg replied, she believed they said in their narrative they are looking to start in the fourth quarter of this year. Commissioner Meisner stated they have this 25 percent target, he asked Ms. Stromberg if she knew where we’re at right now? Chairperson Hansen asked Commissioner Meisner if he was talking about the City’s target? Commissioner Meisner replied, yes, the City’s 25 percent renewable energy target. Fridley Planning Commission Meeting May 19, 2021 Page 11 of 13 Chairperson Hansen replied, as part of the Environmental Commission, he, and Commissioner Dritz receive fairly routine updates on that; and he thinks it is about even in that they are not necessarily making any progress, but they are also growing a little bit with the developments so that offsets things. Ms. Stromberg stated the City does have a signed agreement to participate in a community solar garden similar to what is being proposed tonight, but it has not been constructed yet. Once that is constructed the City will be able to participate. Chairperson Hansen stated they put a lot of effort in articles that are in the newsletter about signing up for home energy audits and you can sign up for renewable energy on your own. Commissioner Dritz stated, and they can sign up for the wind challenge, too. She thinks they had 60 households who signed up for wind this last spring. Commissioner Buyse asked Commissioner Dritz, what does that mean, signing up for wind? Commissioner Dritz replied, through Xcel you can add that additionally to your bill and it effectively adds a dollar a kilowatt. It adds a little bit to your bill, but you also get a fuel surcharge credit back so there are some charges and credits. For her house it was like an extra $8 a month. Commissioner Meisner stated you are basically volunteering to pay the higher rate for the generation of the renewable energy. Commissioner Dritz stated to be clear it is in addition to any state mandates that Xcel already has to put in place. You are opting in to push them to the next level with that slight increase. Commissioner Buyse stated he is surprised it is 30 percent. He was not expecting that. Good job on the efficiency. He certainly is not that big of a fan about how solar looks and with the implications of other people having to look at it, but he certainly does like the aspects and benefits of it. It is encouraging to hear it is actually going to be benefiting although obviously there will be some drawbacks with visibility. It is a good savings and is something he can get behind. He is encouraged to hear that. Commissioner Dritz stated personally she thinks a carport is not anything worse than an open parking lot. Fridley Planning Commission Meeting May 19, 2021 Page 12 of 13 Commissioner Meisner stated he was going to make the same comment that this will look more like a carport more than it will a solar farm. It is just from the ground level he does not know how visible the tops of the panels will be. You might just see a carport. MOTION by Commissioner Meisner approving a Special Use Permit, SP #21-04, by TC Solar RCE LLC, to allow solar panels over portions of the existing parking lot at the Medtronic Rice Creek Campus, generally located at 6951 Central Avenue NE with the following stipulations: 1. The petitioner shall meet all requirements set forth by: a. The Building Code b. The Fire Code c. The City’s Engineering department d. The City’s Planning department – including the addition of landscaping in the green space between the solar panels in the parking lot and the residential neighborhood to the south. 2. The Rice Creek Watershed District The foundation, piers, canopies, and any materials used for the construction of the solar carports shall be remain free of rust and maintained in a condition of reasonable repair and appearance. 3. Any damage to the solar canopy structure shall be repaired within 60 days of the damage occurring. 4. All equipment shall be removed, and the site restored within one year of the date the system is no longer in service or has been rendered inoperable or an extension has been received from the City. If an extension has not been approved, such solar energy system shall be deemed a nuisance, and the City may act to abate such nuisance pursuant to Chapter 182 of our City Code. Seconded by Commissioner Dritz. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON HANSEN DECLARED THE MOTION CARRIED UNANIMOUSLY. ACCEPTANCE OF MINUTES FROM OTHER COMMISSIONS – THROUGH ONE MOTION Motion to accept the minutes from the following Commission meetings: 1. April 5, 2021, Parks & Recreation Commission MOTION by Commissioner Meisner approving the Minutes. Seconded by Commissioner Buyse. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON HANSEN DECLARED THE MOTION CARRIED UNANIMOUSLY. Fridley Planning Commission Meeting May 19, 2021 Page 13 of 13 OTHER BUSINESS: Ms. Stromberg stated the special use permit before them last month for D & B Plating was approved by the City Council. Chairperson Hansen stated he is in favor of meeting in person at the June meeting. Vice-Chairperson Evanson replied he thinks it will be great for them to all be together. Ms. Stromberg replied, that sounds good, and they will plan for that. Vice-Chairperson Evanson stated he believed the City has a citywide meeting on June 5 if he is not mistaken. Ms. Stromberg replied, yes, June 5, from 10 a.m. to 11 a.m. at the Springbrook Nature Center. Vice-Chairperson Evanson asked and is the agenda to be heavily focused on the Parks master plan? Ms. Stromberg replied, yes, it is. Vice-Chairperson Evanson stated he encouraged the Planning Commission to be in attendance. Even though it will be largely on Parks, it will probably be wise for them to be there just from Fridley residents who will be in attendance. ADJOURN: MOTION by Commissioner Meisner to adjourn the meeting. Seconded by Vice- Chairperson Evanson. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON HANSEN DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 7:47 P.M. Respectfully submitted, Denise M. Johnson Recording Secretary