Midtown EcoEnergy
From:
Carol Greenwood
Date:
Mar 27 17:10 UTC
Short link
*Another Steve Brandt article.
Midtown burner project hits a snag with the city *
STEVE BRANDT, Star Tribune
Minneapolis officials have told the developer of a proposed wood-burning
power plant that it hasn't met a key condition for buying city land for
the project.
Midtown Eco Energy was told Wednesday that city officials feel it lacks
a commitment from a utility to buy the project's electricity. That's
required in the option agreement for the land.
The move leaves up in the air the developer's ability to purchase the
site at 2850 20th Av. S., now serving as a city garbage-handling station.
Midtown said in a statement that it is disappointed by the delay. "We
will continue our discussions with the city, and hope the matter is
resolved as quickly and judiciously as possible," the statement said.
The option agreement requires Midtown to meet city conditions by Sunday.
Midtown earlier asked to extend that option deadline by five months, but
withdrew the request and asserted that it had met all option conditions.
But the city determined that a letter dated last week from Xcel Energy
said only that negotiations were underway to sell the project's power to
Xcel, without any tentative commitment. The city also wants a commitment
from a higher-level Xcel official.
One thing that's certain is that the council couldn't grant an extension
by Sunday. That raises the question of whether there's support on the
council for granting a new option.
Opinion in neighborhoods around the controversial project appears to
have shifted against the project since it moved from the nonprofit Green
Institute to for-profit Kandiyohi Development Partners, the politically
connected group behind Midtown. Opposition also developed on
environmental grounds.
Meanwhile, the Minnesota Senate's omnibus environmental bill would
require the project to hire 35 percent of its workforce from nearby,
require advanced diesel emission controls on trucks hauling wood to the
burner, and mandate quarterly reporting of plant pollutants to
neighborhoods.
Steve Brandt • 612-673-4438
.