Council approves lease for delayed solar energy project on Haley Pike landfill

A solar energy project championed by Edelen Renewables can move forward, but a model airplane club at the site will need to relocate.

Council approves lease for delayed solar energy project on Haley Pike landfill

During its March 26 meeting, the Urban County Council approved a lease agreement allowing a solar energy project at the Haley Pike Landfill to move forward, a decision Council has delayed multiple times in recent months.

The city is leasing about 357 acres at the site to Social Impact Solar/Edelen Renewables for $85 per acre. With an approved lease in hand, the project can move forward in time to qualify for expiring federal tax credits. The solar company has said it needs to begin construction by July.

The decision also means the Lexington Model Airplane Club, which has leased land at the site for more than 20 years for $1 a year, will need to find a new home.

Club members dressed in blue packed the Council Chambers and a spillover room Thursday night. During two hours of public comment, members tried to persuade the Council to let them remain at their current site, noting that the club has inspired young people to pursue successful careers in aviation and engineering, and that it serves as an incubator for STEM education.

"For over 65 years, we have taught generations of Lexingtonians about the laws of physics, the thrill of flight, and the value of mentorship," James Newberry, a member of the LMAC Board of Directors, told the Council in prepared remarks.

"We aren't just 'hobbyists'. We are the spark that leads many young people toward careers in aviation and engineering. We aren't just a hobby club. We are a community partner." Newberry said, reading from a statement.

The club's current site has a runway and facilities, along with a special clearance from the Federal Aviation Administration that members said will be difficult or practically impossible to obtain again. The club's current lease expires in April.

Ultimately, however, the Council voted to approve the solar project's lease agreement by a 10-3 margin.

Councilmembers Chuck Ellinger II, Lisa Higgins-Hord, Shayla Lynch, Jennifer Reynolds, Dave Sevigny, Liz Sheehan, Dan Wu, Amy Beasley, Hil Boone, and James Brown voted to approve the lease. Councilmembers Tom Eblen, Joseph Hale and Tyler Morton voted against it. Councilmembers Emma Curtis and Whitney Elliott Baxter were absent.

Why has Council delayed approving the lease?

Council has delayed votes on the proposal three times in recent months.

Initially, some Councilmembers were skeptical the city was getting a good deal by leasing the property at $85 per acre. Adam Edelen of Edelen Renewables has told the Council that building on a landfill is significantly more expensive than building on open land.

Councilmembers also raised concerns about a Community Benefits Agreement that's part of the deal. Edelen Renewables responded to those concerns by doubling the CBA fee from $125 per megawatt to $250. This project's Community Benefits Agreement hasn't been finalized and will need to be approved by Council separately at a later date.

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As explained by the Urban Institute, a Washington D.C.-based think tank, Community Benefits Agreements are legally-binding contracts between coalitions of community organizations and developers. They shape how local development projects improve the quality of life for nearby residents.

Previously, the lease was up for a second reading during Council's March 12th meeting. However, after LMAC members raised concerns about being displaced by the project, the Council delayed its vote for two weeks. Lexington's Chief Administrative Officer Sally Hamilton was tasked by the Mayor to find a solution for the Lexington Model Airplane Club.

Hamilton updated the Mayor and Councilmembers on her efforts during the March 26th meeting.

Hamilton ultimately concluded that, while both projects are good, "they just can't coexist with each other," she told the Council.

Over the last two weeks, Hamilton has explored several sites with the LMAC, though each one poses trade-offs. For example, a spot near the West Hickman Wastewater Treatment Plant likely wouldn't damage plant equipment when model airplane crashes occur. However, Hamilton said the site would require $600,000 worth of grading to construct a proper runway and other facilities.

It's also unclear how easily the club will be able to obtain another clearance as a FAA-Recognized Identification Area (FRIA) at a new location. Club members said re-applying for one could be too cumbersome.

A screen capture of a map showing the Lexington Model Airplane Club's current FRIA.

Hamilton committed to keep working with the LMAC to find a suitable location for the group. At-Large Councilmember James Brown suggested that all options haven't been exhausted yet, floating the Hisle Farm Park as one possibility.

The club has moved a few times over its 67-year history, including from the current Kearney golf course and Masterson Station Park before moving to the Haley Pike Landfill.

Edelen said he's willing to work out an agreement with the Lexington Model Airplane Club to keep it at its current location until May.

What's next for the Haley Pike solar project?

To move the project forward, Councilmembers bundled the approval of the Community Benefits Agreement with the approval of industrial revenue bonds the project wants from the county. The bonds offer developers some degree of tax relief in exchange for a negotiated payment in lieu of taxes.

The decision is expected to come to Council for review sometime this summer.

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Watch a recording of the meeting at LexTV.

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