Lengthy discussion leads to solar energy agreement

SIDNEY -- Sandhills Energy President Eric Johnson appeared before the Sidney City Council Tuesday appealing the council's decision to seek a larger per-acre cost for a proposed solar project.

The city council has approved a solar energy collection facility on East Elm Street. The agreement was later amended to allow additional acreage. The initial proposal was for the City to rent the land to Sandhills Energy at $500 per acre for 25 years, with two five-year renewal options.

In the previous city council meeting, the council discussed the difference in rates; Sidney at $500 per acre and Gering at $700 per acre. 

"We had initially agreed to the $500 per acre for the additional generation for the Municipal Energy Agency of Nebraska  (MEAN)," Johnson said.

He said the proposed additional generation "is a three-way conversation" between MEAN, Sandhills Energy and the City of Sidney. 

"When we put this project together, initially over two years ago, we sent pricing to their RFP, the project was, I guess from a financial standpoint, a pretty solid project. Over the last 2 1/2 years, we've been kicked in the side of the head with inflation as everybody has, and have had significant cost overruns for the entire portfolio; not just Sidney's portion but this portfolio is 16 different communities across Iowa, Nebraska, Colorado and Wyoming. At this point, adding $200-300 in land lease, for just the Sidney project wouldn't be that punitive but we would want to do it for all," Johnson said.

Initially, councilman Paul Strommen voiced concern the City is receiving fair compensation for the project.

"I think we're doing the city a disservice (at $500 per acre), by not following some of the other communities pricing. Maybe we can sit down and, hammer something else out," Strommen said.

Johnson said the company plans to have physical presence in the community by the end of the year. He said the location would start with one employee and expand to four or five employees to regional projects.

The council voted unanimously to continue with the $500 per acre on the additional acreage, with a memorandum of understanding Sandhills will be investing in the community.