7.5. SR 03-17-2014 - Laserfiche WebLink

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AGREEMENT This Agreement is entered into this ti ,O day of 2007, by and between Great River Energy, a Minnesota cooperative corporation,with its rtncipal office at 17845 East Highway 10,Elk River,Minnesota 55330 (the Cooperative),and the City of Elk River,a political subdivision with its principal office at 13065 Orono Parkway NW, Elk River, Minnesota,55330 (the City). ! WITNESSETH WHEREAS, the Cooperative wishes to develop and operate a 150-200 megawatt simple- cycle electric generation facility fueled primarily with natural gas with fuel-oil back-up (the Project) and a site under serious consideration is adjacent to GRE's existing 230 kV substation and RDF fired generating plant located in the City of Elk River in Sherburne County(the Property);and j WHEREAS,the Cooperative has represented to the City that: ; A. The Project will provide significant electric reliability benefits to the City and the 5 surrounding region,. The project is environmentally benign as it will utilize natural gas as its primary fuel and it will operate fbr peaking or emergency power; and ! s B.. Prior to construction the Project will need to be granted a Certificate of Need '. j and a Site Permit from. the Minnesota Public Utilities Commission, and an Air C i Permit from the Minnesota Pollution Control Agency;and C.. For the Project to be economically viable in the City, the Cooperative must have I the Minnesota Legislature enact legislation (the Legislation).that would exempt j electric generation equipment to be installed at the Property from taxation as personal property;and D. Even with the exemption contained in the Legislation, the Cooperative has projected that the Project if constructed and operated,would generate taxes of 1 approximately $310,000 annually attributable to the Project's real property and transmission and gas pipeline infer i�ect�ons;and f E.. In order to maximize the probability of having the Legislation enacted, the ' Cooperative has requested and received a resolution of support for the Project t from the City because without the resolution, the Legislature may not enact the 1 Legislation;and i R. Despite City support for the Project and Legislation, GRE may elect not to construct the Plant at the Property„ i WHEREAS, the City is willing to honor the Cooperative's request and provide support ! for the Legislation as set forth in this Agreement in consideration of the promises of the Company set forth herein., i i I