Authorization to execute a Ground Lease, pursuant to RFP No. 35-2025 with Social Impact Solar LLC (“SIS”), and a platform entity of Edelen Strategic Ventures LLC, for approximately 357 acres for the development, construction, and operation of a solar photovoltaic project located on the Haley Pike Landfill. Lease revenue estimate for year one is $30,345. (L0098-26) (Dugas/Albright)

The City Council is authorizing a Ground Lease with Social Impact Solar LLC (SIS), a platform of Edelen Strategic Ventures LLC, for a 67.4 MW DC solar photovoltaic project on approximately 357 acres of the Haley Pike Landfill (4172-4253 Hedger Lane, Lexington, KY 40516).

Project Details:

• Lease Term: Initial 21 years, with two optional 7-year extensions (total potential 35 years).
• Revenue to LFUCG (Year 1): Estimated $107,712 annually, comprising a $30,345 lease payment ($85/acre with 1.4% annual escalation), a $43,617 Water Quality Management Fee (as PV panels are considered impervious surface per LFUCG Code of Ordinances Chapter 16), and a $33,750 Payment In Lieu Of Taxes (PILOT) for the solar infrastructure. Total estimated revenue over 21 years is $2,261,944.
• Developer Costs: Total project capital cost is estimated at $88,483,800. A $750,000 performance bond and a $3,035,700 decommissioning bond are required.
• Landfill Integration: The project will utilize 34.45% of the capped landfill cells (Areas A & B) using non-penetrating ballasted racking systems and above-ground cabling to protect the landfill cap. Non-capped areas will use single-axis trackers.
• Timeline: Construction is estimated to take 18 months, targeting a May 2026 start and December 2027 Commercial Operation Date (COD), aligning with Investment Tax Credit (ITC) Safe Harbor requirements.

Community & Environmental Impact:

• The project is expected to create 140-200 construction jobs and 5-10 operational jobs, with a focus on local hiring and workforce development, including 'coal-to-solar' training.
• It will generate approximately 167,367 Renewable Energy Certificates (RECs) annually, reducing greenhouse gas emissions by an estimated 37,193 metric tons of carbon equivalent (MTCE) per year, directly supporting the Imagine Lexington: 2045 Comprehensive Plan's net-zero goals. LFUCG has the option to purchase RECs at $5-$7 per REC.
• The developer is responsible for all regulatory approvals, including from the KY Energy and Environmental Cabinet (KEEC), KY Division of Waste Management (KDWM), KY Public Service Commission (PSC), and local planning/zoning bodies, ensuring compliance with state and local environmental regulations (e.g., KRS 728, 401 KAR Chapters 47 and 48).
• The project will include a Community Benefits Plan for the first 15 years, with potential for agrivoltaics and educational programs with local schools.