Council to vote on Haley Pike solar lease after postponing over lease terms

In Tuesday, February 17th's Work Session, Council will reconsider a lease agreement with Social Impact Solar/Edelen Renewables for a solar project at the Haley Pike Landfill. The vote was postponed from last week's Work Session after council members raised concerns about the lease rate and community benefits agreement.

The solar company says it needs to begin construction by July to qualify for federal tax credits that are being sunset by recent federal legislation. Edelen Renewables was the sole respondent to the city's September request for proposals after submitting an unsolicited bid earlier in the year. Council's Environmental Quality and Public Works Committee reviewed the proposal in November.

What would the lease provide?

The proposed lease would cover approximately 357 acres of the landfill with a 67.4 megawatt solar energy facility that could produce enough electricity to power about 5,300 homes.

Under the lease terms, the city would receive $85 per acre in the first year with a minimum increase of 1.4% per year. This would generate an estimated $30,000 in the first year, in addition to around $43,000 of water quality management fees.

• The initial lease term would be 21 years with two seven-year extension options.

The lease would also require the developer to establish a Community Benefits Plan that would run for the first 15 years of the lease. That plan would have a proposed payment of $125 per megawatt produced.

Why did Council postpone the vote?

Council members questioned whether the city is undervaluing the property at the proposed $85 per acre rate.

• A 2024 city study estimated the land could lease for $550 to $850 per acre, generating $3.4 million to $5.3 million over 20 years.

Members also raised concerns about the proposed community benefits payment.

• The city's solar zoning ordinance suggests $750 per megawatt for community benefits agreements.
• While the ordinance does not legally bind city-owned property, it sets expectations for how Council wants solar projects structured.
• Details of the community benefits agreement have not yet been finalized.

What was the response from the developer?

Adam Edelen of Edelen Renewables told Council that building on a former landfill is significantly more expensive than on open land. The company must use specialized ballast systems on the 123 acres of capped landfill to avoid puncturing the cap.

• Additional costs include water quality fees, landfill fees, and selling electricity to Kentucky Utilities at below-market rates due to state statutes.