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 Lexington-Fayette Urban County Council is considering authorizing a Ground Lease with Social Impact Solar LLC (SIS), a platform of Edelen Strategic Ventures LLC, for the development, construction, and operation of a 67.4 MW DC solar photovoltaic project on approximately 357 acres of the Haley Pike Landfill (4172-4253 Hedger Lane).

Project Details & Acreage: The project will utilize various areas of the landfill, including 53 acres of Closed Cell Area A and 70 acres of Closed Cell Area B, ensuring 34.45% of the array is on capped landfill sections. Ballasted racking systems will be used on capped areas to prevent ground penetration, with above-ground cabling. Single-axis trackers will be used on non-capped areas. The project is designed to not interfere with existing landfill methane vents or leachate management systems.

Financial Impact: The initial lease term is 21 years, with two optional 7-year extensions, for a potential total of 35 years. Estimated annual revenue to LFUCG in year one is $107,712, comprising a $30,345 land lease payment ($85/acre), a $43,617 Water Quality Management Fee, and a $33,750 Payment In Lieu Of Taxes (PILOT). The total project capital cost is estimated at $88,483,800. SIS will provide a $750,000 performance bond and a $3,035,700 decommissioning bond.

Timeline & Approvals: The project aims for a May 2026 construction start and Commercial Operation Date (COD) by December 2027, aligning with Investment Tax Credit (ITC) Safe Harbor requirements. SIS is responsible for obtaining approvals from the Kentucky Public Service Commission (KPSC), Kentucky Siting Board, and Kentucky Division of Waste Management (KDWM) for permit modifications.

Community Benefits: The project is expected to create 140-200 construction jobs and 5-10 operational jobs, with an emphasis on local hiring and workforce development. It aligns with the Imagine Lexington: 2045 Comprehensive Plan's goal of net-zero greenhouse gas emissions by 2050, projecting a reduction of 37,193 metric tons of carbon equivalent annually. SIS will retain Renewable Energy Certificates (RECs), but LFUCG can negotiate to purchase them at $5-$7 per REC.

Missing Documents: The full "Lease - Version 8 Final" and "Exhibit C - Easements Schematic" documents were unavailable, stating they no longer exist or were deleted.