Title
Resolution to Accept a Community Project Funding Grant and Approve a Grant Agreement from the State of Michigan Department of Labor and Economic Opportunity for Advancing the Wheeler Center Solar Park ($5,000,000.00) (8 Votes Required)
Memorandum
This resolution seeks City Council acceptance of a grant and approval of a Grant Agreement with the State of Michigan Department of Labor and Economic Opportunity to support the development of the Wheeler Center Solar Park, previously known as the landfill solar project.
This State of Michigan grant was secured by State Senator Jeff Irwin, Representative Jason Morgan, and the entire Ann Arbor legislative delegation to aid the Ann Arbor Office of Sustainability and Innovations in advancing the 16-20MW Wheeler Center Solar Park, a key action in the City’s A2ZERO plan. The $5,000,000.00 will go directly towards financing the cost of solar panels and racking necessary to build the system, thereby helping the City lower its levelized cost of energy.
The City has been working with DTE Electric to design and bring the Wheeler Solar Park to fruition. National-level policy, supply chain delays, and pricing increases threatened the viability of the project. However, this award from the State of Michigan helps make the project viable once again.
The City is finalizing the project scope and associated details in collaboration with DTE. As such, staff will bring a future resolution to City Council authorizing the City to enter a contract with DTE to build the landfill solar project using these $5,000,000.00 as a downpayment for that project. Staff are not ready today, however, to bring that agreement to City Council so this resolution only seeks authorization to accept the $5,000,000.00 and appropriate it to the Ann Arbor Office of Sustainability and Innovations budget, without regard to fiscal year, for advancing the landfill solar project as well as the authorization to enter into a grant agreement with the State of Michigan Department of Labor and Economic Opportunity.
Budget/Fiscal Impact: No matching funds are required for acceptance of this grant award.
Staff
Prepared by: Missy Stults, Sustainability and Innovations Director
Reviewed by: Marti Praschan, Chief Financial Officer
Jennifer Richards, Assistant City Attorney
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The State of Michigan Department of Labor and Economic Opportunity has awarded the City of Ann Arbor a $5,000,000.00 grant to advance the Wheeler Center Solar Park project; and
Whereas, The Wheeler Center Solar Park, previously known as the Landfill Solar Project, is one of the actions identified in the A2ZERO Carbon Neutrality Plan;
RESOLVED, That City Council accepts a grant of $5,000,000.00 from the State of Michigan Department of Labor and Economic Opportunity and appropriates $5,000,000.00 to the FY24 Major Grants Program Fund with the source of revenue being the State of Michigan Department of Labor and Economic Opportunity;
RESOLVED, That all amounts herein are without regard to fiscal year;
RESOLVED, That City Council approves a Grant Agreement with the State of Michigan Department of Labor and Economic Opportunity for these funds;
RESOLVED, That the Mayor and City Clerk are authorized and directed to execute the Grant Agreement following approval as to form by the City Attorney and as to substance by the City Administrator; and
RESOLVED, That the City Administrator is authorized to take all appropriate actions to implement this resolution.