855-megawatt power plant planned

One of the largest power plants in the state would rise in the township of Lent in Chisago County via a bill that on Wednesday went before Gov.

[Shellene Johnson]

I am so disappointed in Rep. Jeremy Kalin and Senator Rick Olseen for not including simple language to ensure that we, as a community, can protect our financial interests in regards to the Sunrise River Energy station/LS Power deal. You need to wonder why these elected officials continue to put the interests of a for-profit corporation ahead of ours. Many people are saying if we don’t give LS Power this tax exemption they will go somewhere else. Really? Rep. Kalin stated to the Star Tribune,“From an engineering perspective, this site is a very, very attractive site.” So why did these elected officials not include “host fee agreement” language in their legislation to protect our ability to negotiate a financial compensation in lieu of personal property taxes? We elected them to represent our interests.
In the Star Tribune article, Kalin said the pending bill would waive about $8 million in personal property taxes and Kalin asserts a host fee agreement would add another $600,000 to the company’s annual tax bill, money that would be divided among Lent Township, Chisago County and the North Branch school district. You where is Rep. Kalin coming up with the $600,000 amount? Well, he asserted in an email that I received, that he and Senator Olseen have been in negotiations with LS Power, but he only comes forward with this information when he was pressed to change this language, pressed by myself and other concerned citizens. Rep. Kalin is well aware of what a “host fee agreement” is and knows that it is only through host fee agreements that local governments receive financial compensation. Yet, Rep. Kalin refuses to put the three words “host fee agreement” into his legislation. And how is it that Rep. Kalin and Senator Olseen have been negotiating this agreement outside of any statutory protection, without authorization or authority of the local governments and in secrecy? Rep. Kalin knew what the impact of “host fee agreement” language when he drafted his legislation.
Many facilities, like the Sunrise River Energy station/LS Power, have received tax exemptions, however, what Kalin and Olseen are not telling you is that those communities were smarter than our elected officials and included “host fee agreement” type language in lieu of personal property taxes. For a 300MW gas plant, Invenergy pays $750,000 in the first year rising to $895,000 in year 5, with that amount plus CPI each year after that. A plant nearly three times as large would provide nearly three times the revenue, and $750,000 x 3 =$2.5 million annually. They’re not doing very well in these “negotiations,” are we’re losing significant revenue
Kalin stated in the Star Tribune,“I’ve had mixed feelings about the bill.” Then why propose it? Why didn’t you at a minimum ensure our ability to negotiate a “host fee agreement” for ourselves, whether it is for $600,000 or $8 million per year? Once again, our elected officials are selling out this community in the hardest of economic times. And for what? The LARGEST NATURAL GAS PLANT in Minnesota. And where there are power plants there are power lines. Is this what we want for our community? LS Power should pay their fair share to this community for hosting this facility. Unfortunately, Rep. Kalin and Senator Olseen took away our statutory negotiating rights by not adding “host fee agreement” language in their legislation.

[Local Guy]

Well, what got you wound up? There’s so much more then you know or have heard, Host fee’s yes, and negotiations yes! First a developer’s agreement and with that agreement comes the negotiations.

The big guys elected down there are doing just fine, besides this thing is far from over, so be patient.