Solar Farm Project Moves Forward In Lockport

LOCKPORT, IL — At its Wednesday meeting, the Lockport City Council approved a 20-year lease agreement for a solar facility at the the Star Innovation District.

Last year, the City Council approved an option to lease agreement with AC Power, to give them time to work on the possibility of a solar farm and obtain permits, agreements and grants, according to Council documents.

City Attorney Sonni Williams said the solar farm would be on a portion of the former Metropolitan Water Reclamation District Property and a portion of the former Chevron Business Park.

The 20-year lease with AC Power will be for a community solar farm, and power generated from the farm is put onto the grid.

Williams said the 20-year agreement provides for further due diligence, and AC Power will pay the City "rent" during its development period.

"After they do construction with the facility, and it's up and running, the rent will be paid by the electricity that will be generated from the facility," Williams said.

Williams added that this is the first time the City will be able to utilize the Chevron property that it purchased almost three years ago.

The 20-year agreement comes with the option of three 5-year extensions.

City Administrator Ben Benson said that once the solar farm is complete, the City anticipates revenue will be $200,000 a year, which would go to the City's general revenue fund.

At Wednesday's meeting, the Council also approved changes to the use restrictions on the property, and indemnification agreements with Chevron to allow for the solar farm.

Williams said there was a use restriction on the portion of the former MWRD property. Chevron wanted the use of "solar facility" added to the possible uses for the property.

"The reason why that Chevron has a say in the use restriction...is because there are two indemnification agreements that apply to that property," Williams said.

Chevron has an indemnification agreement with MWRD for any environmental liabilities on the property, and another agreement with the City for any environmental liability.

"We're basically covering Chevron's place and taking their place for any liability related to a solar facility," Williams said, adding that since the solar farm does not "bore into the ground," that the risk is very low.