Minneapolis Park Watch

Crown Hydro, having been denied a lease on river-front park property by the Park Board is now investigating several alternatives, including simply taking the land from the Park Board via eminent domain, or buying the Crown Roller Mill building from the owner who refused to lease space to them. Below is the text of the Crown Hydro filing with the Federal Energy Regulatory Commission (FERC) stating those intentions.

Ms. Magalie R. Saias Secretary Federal Energy Regulatory Commission 888 First Street, N.E. Washington, D.C. 20426

RE: Crown Hydro LLC. Project No. 11175-016MN

Dear Ms. Sales:

As Crown Hydro LLC ("Crown Hydro") previously advised, on Wednesday, May 19, 2004, the Minneapolis Park & Recreation Board ("Park Board") voted 4 to 5 against the motion to approve a lease of parklands to Crown Hydro for the abovereferenced project. By correspondence dated May 28, 2004, Crown Hydro advised the Federal Energy Regulatory Commission ("Commission") of the Park Board's action and requested that the Commission not take action on Crown Hydro's pending petition for an amendment to its license for ninety (90) days. The basis for Crown Hydro's request was that Crown Hydro is currently reviewing at least four options for continued project development. This correspondence adV'LSeS the Commission of Crown Hydro's progress in reviewing these options.

Crown Hydro's preferred location for the project is still at the Cataract Mill site within the Park Board's Mill Ruins Park. Crown Hydro is reviewing the lease and hopes to continue discussions with the Park Board staff to reach an agreement on terms and conditions of a lease that would be acceptable to the Park Board.

In addition, Crown Hydro is reviewing any right to eminent domain it may have under Section 21 of the Federal Power Act ("FPA"). In correspondence dated October 16, 2003, the Commission concluded that the right to eminent domain did not exist under FPA Section 21, because the Mill Ruins Park was established as a public park prior to the date of the enactment of the Energy Policy Act of 1992. The Commission's determination was based solely upon a letter provided to the Commission by the Park Board staff dated August 18, 2003. Crown Hydro is currently reviewing the documents cited in that letter, as well as other relevant documents and local and state law, in order to determine whether the Mill Ruins parkland was acquired and made a "part of or included within any public park,... under State or local law" prior to the date of the enactment of the Energy Policy Act of 1992 (October 24, 1992). If the facts and law demonstrate that the Cataract Mill site was not within a public park under State or local law prior to this date, Crown Hydro will likely seek to exercise its eminent domain rights within the parameters of Section 21.

Crown Hydro has also contacted Northern States Power Company d/b/a Xcel Energy regarding the prospect of developing the project at Xcel Energy's hydroelectric facilities across the Mississippi River. As we previously indicated, Crown Hydro has a twenty (20) year power purchase agreement with Xcel Energy. In addition, Xcel Energy's Renewable Development Fund has invested approximately $1.4 million in the Crown Hydro project. Crown Hydro expects these discussions to begin in the immediate future.

Finally, Crown Hydro is examining the feasibility of developing the project on the original site, the Crown Roller Building, which was the site approved by the Commission in the license issued on March 19, 1999. It is Crown Hydro's intent to make this determination as soon as possible, and if necessary, acquire the Crown Roller Mill Building for project.

In our correspondence dated May 28, 2004, we requested that the Commission delay action on the petition for amendment to the license pending review of all these options and the prospect of continued project development. Crown Hydro, the Commission staff and many other stakeholders have invested a great deal of time and substantial resources in this project. Crown Hydro firmly believes that the project can be completed. Crown Hydro is committed to proceeding expediously and to continue to advise the Commission of the status of project. For these reasons, Crown Hydro would respectfully request that the Commission delay any action on the petition for an amendment to its existing license for at least ninety (90) days from June 11, 2004. Crown Hydro thanks the Commission for its consideration.

Very truly yours, O'NEILL, GRILLS & O'NEILL, P.L.L.P. Peter H. Grills

Above text was computer generated from the original letter using optical character recognition and may contain errors. The original document can be viewed here: http://elibrary.ferc.gov/idmws/common/opennat.asp? fileID=10168290

Posted by News junky on Wed, 07/14/2004 - 4:17pm. | Permalink | Login to post comments