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<br />RESOLUTION 07- <br /> <br />A RESOLUTION OF THE CITY OF ELK RIVER <br /> <br />A RESOLUTION APPROVING THE CONSTRUCTION <br />OF A 150-200 MW SIMPLE-CYCLE PEAKING PLANT FUELED PRIMARILY BY <br />NATURAL GAS WITH FUEL-OIL BACK-UP <br /> <br />WHEREAS, <br /> <br />WHEREAS, <br /> <br />WHEREAS, <br /> <br />WHEREAS, <br /> <br />WHEREAS, <br /> <br />WHEREAS, <br /> <br />WHEREAS, <br /> <br />WHEREAS, <br /> <br />WHEREAS, <br /> <br />Great River Energy (GRE) plans to construct a 150-200 MW simple- <br />cycle peaking plant fueled primarily by natural gas with fuel-oil back-up <br />(the "Project"); and <br /> <br />GRE has identified a site in the City of Elk River (the "City") where <br />GRE has an existing 230 kV substation and a RDF-fired generating plant <br />as a leading site for the proposed Project due to the proximity of high <br />voltage transmission lines, natural gas pipelines, and compatible land <br />uses; and <br /> <br />prior to construction, the Project will need to be issued a Certificate of <br />Need and Site Permit from the Minnesota Public Utilities Commission, <br />and an Air Permit from the Minnesota Pollution Control Agency; and <br /> <br />the Project will provide wholesale electricity to benefit primarily GRE's <br />28 member electric cooperatives, including Connexus Energy, which <br />provides electricity to Elk River Municipal Utilities; and <br /> <br />the Project will provide significant jobs during construction; and <br /> <br />the Project is expected to pay real estate taxes; and <br /> <br />in order for GRE to proceed with the development of the Project in Elk <br />River, the annual taxation of the Project will need to be comparable with <br />other existing or proposed peak electric generation facilities within the <br />state; and <br /> <br />under current law, the Project would have to pay approximately $1.06 <br />million in its first year due to property taxes on electrical generation <br />equipment, in addition to approximately $310,000 in real estate taxes and <br />personal property taxes on natural gas and transmission line upgrades; <br />and <br /> <br />the Legislature has granted personal property tax exemptions to more <br />than two dozen proposed power plants in Minnesota since 1994 and, as a <br />result, personal property exemptions are critical to be competitive with <br />