From the December 15th Hastings City Council meeting, Public Works Director Ryan Stempski gave a
presentation on the disposal of the hydroelectric plant.
Stempski explained that the construction of the facility began in 1985 and that the hydroelectric facility produces 4.4 megawatts of energy.
Years ago, the question was raised about the revenue that is coming into the City from this facility. A trend line of annual data between 2005 and 2022 showed that the city was losing revenue on an annual basis.
After charting cash flow and normal maintenance required at the hydroelectric facility, the results showed a negative $14,000,000 projection over the next twenty-five years.
Director Stempski pointed out that the City has been working to transfer this facility to the Army Corps of Engineers. But to transfer the facility, such as the hydroelectric plant, hasn’t happened since the days of Henry Ford. After proving to be a challenge, it was suggested to seek a private company to obtain the facility. This route proved to be a challenge as well. A hydro expert took a look at the facility, and it was concluded, after discussions, that transferring the facility would be more cost-effective and timely, as with an interested party, the transfer dates would be set in stone.
Transferring the facility is “the preferred pathway,” says Director Stempski. The City seeks the elimination of financial operational liabilities from the hydroelectric plant.
The transfer can be done in an “as is” condition and can happen within a 90-day period, all while still producing clean energy. Stempski notes that a “private industry won’t have the same struggles as the city in operating this kind of facility.”
In the January 5th meeting, the City Council will consider a letter of intent and the terms with the entity obtaining the facility and the resolution of sale.
During the December 15th meeting, the Hastings City Council voted on the resolution to the City Council and the City of Hastings of dispensing the requirement of MN State statute 462.356 for the disposal of the hydroelectric plant.
The motion prevailed.