Title
Authorizing the acceptance of $144,958 in total grant funding from the Minnesota Department of Commerce, with no match required, for a Geothermal Planning Grant in partnership with District Energy St. Paul; authorizing the execution of a grant agreement (which includes an indemnification clause); and amending the 2025 Grant Budget.
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WHEREAS, the Minnesota Department of Commerce’s Geothermal Planning Grant Program was established by the Minnesota Legislature in 2024 to provide financial assistance to eligible applicants to examine the technical and economic feasibility of installing geothermal energy systems; and
WHEREAS, the City of Saint Paul’s Climate Action and Resilience Plan adopted in December 2019 established a goal to achieve carbon neutrality citywide by 2050; and
WHEREAS, District Energy is the largest hot water district system in North America established in 1983 through an innovative public-private partnership led by the City of Saint Paul; and
WHEREAS, Mount Airy Homes and the adjacent Mount Airy hi-rise apartments are located in a community facing an energy burden of 21% more than other census tracts; and
WHEREAS, establishing a geothermal district system to augment a portion of the district energy system utilized to serve Mount Airy residents would further reduce the need for fossil fuel-based technology resulting in greenhouse gas emissions reductions and energy cost savings; and
WHEREAS, District Energy St. Paul is planning to perform needed maintenance to the distribution infrastructure that supplies the Mount Airy townhouses and this grant would fund the study of possibly deploying a geothermal system alongside needed maintenance to maximize planned capital investment; and
WHEREAS, Resolution Number 25-421 passed by the Saint Paul City Council on 3/19/2025 authorized the Office of Financial Services to apply for the maximum grant amount of $150,000.00 with no match required from the Minnesota Department of Commerce Geothermal Planning Grant Program to support completion by District Energy Saint Paul of a geothermal feasibility study for the Mount Airy Homes community; and
WHEREAS, the Minnesota Department of Commerce awarded the City of Saint Paul said grant in the amount of $144,958 with no required match; and
WHEREAS, the Office of Financial Services wishes to enter into an agreement for the funds, which includes an indemnification clause; and
WHEREAS, the Mayor, pursuant to Section 10.07.1 of the Charter of the City of Saint Paul, does certify that there are available for appropriation total revenues in excess of those estimated in the Office of Financial Services 2025 budget; now
THEREFORE BE IT RESOLVED, by the Council of the City of Saint Paul, upon recommendation of the Mayor that $144,958 is available for appropriation in the Office of Financial Services 2025 budget, as heretofore adopted and amended by this Council, be hereby further amended in the particulars as specified in the attached financial analysis; and, be it
FURTHER RESOLVED, by the City Council of the City of Saint Paul, that the appropriate City officials are authorized to enter into an agreement, which includes an indemnification clause, with the Minnesota Department of Commerce for the aforementioned funding.
See attachments.