Consider Request for Extension to Initiate an Amended Conditional Use Permit at 7607 173rd Avenue NW (Project No. 22-119); Case of CenterPoint Energy Minnesota Gas

In May of 2022, the City Council adopted Resolution #22-093, granting an Amended Conditional Use Permit to CenterPoint Energy Minnesota Gas (the "Permittee") for an expansion of an existing natural gas substation at 7607 173rd Avenue NW (the "Subject Property").  In accordance with City Code Section 117-51 (Conditional Use Permits), the approved resolution included a condition that the use must be initiated no later than May 10, 2023 (within one year of approval), unless the Permittee files a written request, with facts supporting a good faith effort to initiate the use, at least thirty (30) days prior to the expiration date.  On April 10, 2023, the Permittee submitted a written request seeking an extension of twelve (12) months to initiate the use granted by Resolution #22-093.

Notification is not required when considering a request for an extension of time to initiate an approved Amended Conditional Use Permit.

The Amended Conditional Use Permit (the "Permit") granted the Permittee the ability to expand their existing natural gas substation with a 12,000-gallon odorant tank and associated equipment..  However, due to multiple circumstances that were outside of their control, the Permittee has not been able to initiate the Permit (written request from Permittee is attached to this case).  The stated reasons for the project delay are reasonable and were out of the control of the Permittee.  A twelve (12) month extension to initiate the use (issuance of a Building Permit for the installation of the odorant tank 'locks' in the Amended Conditional Use Permit) also seems reasonable.

Alternatives

Alternative 1: Recommend approval of a twelve (12) month extension to initiate the use.  The tank manufacturer experienced work force issues delaying the completion of design drawings.  Furthermore, material shortages would have prohibited tank delivery in 2022.  Neither of these issues were a result of actions by the Permittee.  Staff supports this alternative.

Alternative 2: Recommend denial of the requested extension.  This action would result in the approved Permit becoming null and void if the Permittee does not obtain the necessary building permit for the tank installation.  The issuance of a building permit requires the design drawings for review, which the Permittee does not have due to the aforementioned reasons.  Staff does not support this alternative.

The Permittee is responsible for all costs associated with this request.

Staff recommends approving the requested twelve (12) month extension to initiate the Permit.

Motion to recommend City Council adopt Resolution #23-077 granting a twleve (12) month extension to initiate the Permit.