Monthly Archives: May 2011

June 1, 2011 Park Board Meeting

HEADS-UP FOR THE THE JUNE 1, 2011 PARK BOARD MEETING

5:00 P.M. REGULAR BOARD MEETING. The meeting will be held in the boardroom at Park Board headquarters, 2117 West River Road, just north of Broadway Pizza.

5:30 P.M. OPEN TIME. Speakers need to sign up before 3:00 p.m. the day of the meeting.

The complete agenda, with staff reports, for the MPRB Board of Commissioners’ meeting on Wednesday, June 1, 2011 is at www.minneapolisparks.org/default.asp?PageID=37&calid=738

MPRB meetings are telecast live from 5-9 p.m. on the City of Minneapolis Government Meeting Channel 79 on Comcast cable and online at www.ci.minneapolis.mn.us/webcasts.

The regular meetings are retelecast on Channel 79 at 1 p.m. Saturdays and 5 p.m. on the second and fourth Wednesdays of each month. Webcasts for the recent two months are posted two to five business days after the meeting and are available for viewing under “Webcast Archives” at www.ci.minneapolis.mn.us/webcasts.

The Park Board’s website is www.minneapolisparks.org. The phone number is 612-230-6400.

Arlene Fried
Co-Founder of Park Watch

HEADS-UP FOR THE THE JUNE 1, 2011 PARK BOARD MEETING

HEADS-UP FOR THE THE JUNE 1, 2011 PARK BOARD MEETING

5:00 P.M. REGULAR BOARD MEETING. The meeting will be held in the boardroom at Park Board headquarters, 2117 West River Road, just north of Broadway Pizza.

5:30 P.M. OPEN TIME. Speakers need to sign up before 3:00 p.m. the day of the meeting.

The complete agenda, with staff reports, for the MPRB Board of Commissioners’ meeting on Wednesday, June 1, 2011 is at www.minneapolisparks.org/default.asp?PageID=37&calid=738

MPRB meetings are telecast live from 5-9 p.m. on the City of Minneapolis Government Meeting Channel 79 on Comcast cable and online at www.ci.minneapolis.mn.us/webcasts.

The regular meetings are retelecast on Channel 79 at 1 p.m. Saturdays and 5 p.m. on the second and fourth Wednesdays of each month. Webcasts for the recent two months are posted two to five business days after the meeting and are available for viewing under “Webcast Archives” at www.ci.minneapolis.mn.us/webcasts.

The Park Board’s website is www.minneapolisparks.org. The phone number is 612-230-6400.

Arlene Fried
Co-Founder of Park Watch

F E R C PULLS THE PLUG ON CROWN HYDRO

FERC PULLS THE PLUG ON CROWN HYDRO

Park Watch has just learned that in a letter dated May 25, 2011, the Federal Energy Regulatory Commission (FERC) informed Crown Mill Hydro President Tom Griffin that FERC staff consider the “Crown Mill Hydro Project to be abandoned.”

In a discussion of the project, which was described as “unconstructed,” it was pointed out that there has been no progress moving the Crown Mill Hydro Project forward and Crown’s mandatory reporting on plans, activities and filings “are long overdue.”

Crown Hydro has 30 days “to show cause why the Commission should not initiate proceedings for terminating the license.”

It is interesting to note that FERC refers to the Crown Hydro Project by its proper name–the Crown Mill Hydro Project. That’s because the FERC license that Crown holds is not for the Mill Ruins Park location.  The license that Crown holds was issued on March 19, 1999, and it was for the basement of the Crown Roller Mill Building–not for Mill Ruins Park. So, while Crown was attempting to pressure the Park Board to gain control of the Mill Ruins Park location for its proposed facility, Crown never held a license to construct its hydro facility on MPRB property.  In order to build on Mill Ruins Park, it would have had to get an amendment to the license it had for the obsolete Crown Roller Mill site.

Arlene Fried
Co-Founder of Park Watch

CROWN HYDRO PULLS PROPOSAL AFTER TWEAKS BY PARK BOARD

The following article by Nick Halter was published May 23, 2011 on the web site of the Downtown Journal:

CROWN HYDRO PULLS PROPOSAL AFTER TWEAKS BY PARK BOARD

Crown Hydro told the Minneapolis Park and Recreation Board on May 30 not to bother voting on a letter of intent that would have allowed an unknown investor to buy the hydroelectric project and partner with the Park Board to operate the facility.

Crown Hydro attorney Todd Guerrero said the Park Board and Crown Hydro had together drafted a letter of intent on May 13. But on May 16 — 48 hours before the Park Board was set to vote on the letter — Park Board attorneys made substantial changes to the document that made the project commercially unreasonable, Guerrero said.

Most notably, the changed letter of intent gave the Park Board control over the facility from June 15 to September 15 every year — a provision that would allow the Park Board to close off the turbines and send more water over St. Anthony Falls.

Gurerro chided the Park Board’s late-game maneuver, but said Crown Hydro would continue to try to negotiate with commissioners and staff and explore other ways to move the project along.

“They made their choice,” he said. “We’re going to have to evaluate all of our options.”

The earlier letter of intent — before it was changed on May 16 — would have allowed the Park Board to enter into the project as a minority owner and would have required Crown Hydro owner Bill Hawks to sell his stake in the company to a new investor.

Hawks is a Republican fundraiser whose Lake Minnetonka mansion recently faced foreclosure, according to a Star Tribune report.

Guerrero said Hawks was willing to sell his stake at the Park Board’s request, but the changes to the letter of intent made the project impossible to sell.

“Mr. Hawks has spent millions and millions of his own money on this project,” Guerrero said.

Before the Park Board voted against executing the letter of intent, commissioners heard from Minneapolis residents on both sides of the issue.

Again, residents who live near the falls showed up to voice their opposition to the 3.2 megawatt facility that would be built underground on the west bank of the Mississippi River. They raised concern over the aesthetics of the falls as well as the structural integrity of the underground turbines.

“The closer you look at this project, the riskier it gets,” said Dick Gillespie, 10-year resident of the Stone Arch Lofts. “It would be much easier to support if it was clear all the homework was done.”

Commissioners also heard testimony from residents who showed up to support the project, touting it as a good source of renewable energy and a revenue generator for the Park Board.

PARK BOARD VOTES TO NOT EXECUTE CROWN HYDRO'S L O I

PARK BOARD VOTES TO NOT EXECUTE CROWN HYDRO’S LOI

One of the highlights of last night’s Park Board meeting, which attracted a larger than usual audience, was the Crown Hydro issue. At the meeting, Crown Hydro representatives addressed the commissioners and submitted a letter stating that Crown Hydro could not accept the Park Board’s final draft of Crown Hydro’s Letter of Intent for an agreement with the Park Board (for a joint venture with a third party for control of the St. Anthony Falls’ hydroelectric project). Because the terms in the modified LOI were unacceptable to Crown Hydro, Crown Hydro withdrew their request.

Subsequently, the Park Board voted to “not execute the proposed letter of intent based on Crown Hydro’s rejection of the proposed terms of the Letter of Intent.”

The Letter of Intent had been the subject of intense negotiations by the Park Board and Crown Hydro over the last two months and was modified more than once.

One of the major final revisions by the Park Board of Crown Hydro’s Letter of Intent was that the Letter of Intent would be non-binding on the Park Board.

It was interesting to note that the Letter of Intent had stated that the Park Board would be a minority partner, but it was not until the May 18 meeting that it was mentioned that the Park Board would own only 15 to 20% of the partnership.

The vote was six ayes and three abstentions. Voting for the substitute resolution were Commissioners Brad Bourn, John Erwin, Anita Tabb, Scott Vreeland, Liz Wielinski and Annie Young. Voting to abstain were Bob Fine, Carol Kummer and Jon Olson.

Arlene Fried
Co-Founder of Park Watch

STATEMENT BY NATIONAL TRUST FOR HISTORIC PRESERVATION

STATEMENT BY NATIONAL TRUST FOR HISTORIC PRESERVATION

The following statement opposing S.F. 1191 was sent from the Midwest Office of the National Trust for Historic Preservation to Chair Koch and Members of the Senate Rules and Administration Committee on May 12, 2011.

http://www.mediafire.com/file/omspsurd42plt7h/Statement%20in%20Opposition%20to%20SF%201191_051211.pdf

STATEMENT IN OPPOSITION TO S.F. 1191 FOR THE SENATE RULES AND ADMINISTRATION COMMITTEE

May 12, 2011

The National Trust for Historic Preservation is deeply concerned to learn about the proposal of S.F. 1191, which requires the Minneapolis Park and Recreation Board (MPRB) to approve a lease agreement for a hydroelectric facility on their property no later than May 31, 2011. It is our opinion that this legislation will only harm Minnesota’s natural resources, and it could have unintended and very negative consequences on effective local government regulatory processes.

The Crown Hydro hydroelectric project is obviously the intended beneficiary of this legislation, since this project’s request for use of Minneapolis Park and Recreation Board (“Park Board”) property in the St. Anthony Falls Historic District was denied. Repeated challenges to this decision have only reinforced the appropriateness of the Park Board’s decisions to deny a permit for a new hydroelectric facility on Park Board land in a highly-visible and sensitive area of the riverfront that contains many natural and historic resources.

While we strongly support renewable energy production through alternative sources such as wind, geothermal, and hydroelectric power, we do not support the destruction of our state’s limited and nonrenewable cultural resources for the creation of renewable energy. Although this project has been many years in development, we have yet to see the full plans for the Crown Hydro project or comprehensive evaluation of the impact it will have on the Mill Ruins area. It is clear that this project requires significant environmental review before it can move forward, so as not to destroy one nonrenewable resource for the benefit of renewable energy generation, which could feasibly be located elsewhere.

We also feel strongly that Minnesota’s natural resources should be utilized in ways that are effective and sustainable. Based upon an analysis of the project by engineer John Gulliver (attached), the proposed location for the Crown Hydro project is very problematic. His assessment concludes that “energy generation projections of Crown Hydro LLC are optimistic and the risks are ignored.” In addition, the flow of water over the St. Anthony Falls will be significantly reduced by the operation of the Crown Hydro project. This will eliminate the defining feature of the St. Anthony Falls Historic District and compromise one of Minneapolis’ most prominent view sheds.

Most importantly, the proposed legislation will deliberately subvert the regulatory review processes established to ensure a thorough and transparent public process based on established criteria. Approving S.F. 1191 would greatly diminish the ability of local government and state agencies to assess the appropriateness of proposed projects on property that has been set aside for public use and benefit.

For all of these reasons, we respectfully request that you do not support S.F. 1191

Sincerely,

Christina Morris
Minnesota Program Officer
National Trust for Historic Preservation

Cc: John Erwin, Board President, Minneapolis Park and Recreation Board
John Anfinson, Mississippi National River and Recreation Area
Bonnie McDonald, Executive Director, Preservation Alliance of Minnesota
Edna Brazaitis, Friends of the Riverfront
Lisa Hondros, Friends of the Riverfront
Cynthia Kriha

CROWN HYDRO AT THE LEGISLATURE

CROWN HYDRO AT THE LEGISLATURE

With the Legislature coming to a close on May 23 and Crown Hydro’s House and Senate bills awaiting further action, it appears unlikely that they will move forward. So the threat of the MPRB being forced to turn over parkland to Crown Hydro at this time, seems to have disappeared. So why is the Park Board still negotiating with Crown Hydro?

Arlene Fried
Co-Founder of Park Watch