The city is racing against a federal deadline that could make or break plans to build a solar farm at the James Herman Banning Ames Municipal Airport.

If the city does not act in time, a project that could cut electricity costs may cost 30% more — or not happen at all.

A private company called Ames Greenfield Development wants to lease 165 acres of airport land to build a solar farm capable of producing up to 24.9 megawatts of electricity. That’s enough power to run thousands of homes. The land is currently farmed by a tenant who has a contract with the city.

To qualify for a 30% federal tax credit, the developer must reach what is called “safe harbor” status by July 4. That means the city and the company must first sign a lease agreement by May 19.

Vote is pushed back to May 19

City staff asked the council to push the vote back so they can work out final details. The council agreed and will have a special meeting on May 19 to vote on the lease — the last date to meet the federal deadline.

Even if the council approves the lease, the city is not locked in. The agreement is revocable, meaning the city can walk away if it does not like the final terms. Those terms, including the price the city would pay for the solar energy, will be worked out later this year.

Approving the lease option is only the first step. If the two sides cannot agree on a final power deal, the project would be canceled and the city would owe the developer nothing.

In other business

• Tree removal bill reduced: An Ames homeowner asked the city to reduce an $8,025 bill she received after crews removed a dead tree from her property last fall without giving her a chance to find a cheaper contractor. The council voted to reduce the bill by 50% and allow the homeowner to pay over five or 10 years.
• New bridge: Ames residents and Iowa State University students could soon have a new path connecting Moore Memorial Park to Ontario Street. The goal is to finish a bridge over Ioway Creek and first section of trail on Iowa State property by summer 2027. The Iowa Board of Regents will also need to approve the deal when it meets June 9.
• $5.7 million for sewer repairs: The council approved a $5.7 million loan to repair crumbling sewer pipes and manholes across the city, with sewer customers eventually footing the bill through future rate increases.
• Free land for park: Iowa State offered to lease 24 acres of farmland to the city for free, and the council accepted the 20-year offer. The land sits just west of Moore Memorial Park along Ioway Creek. Within two years the city will convert the fields to prairie, which cleans water runoff before it reaches the creek.
• Power plant bids: Ames city officials are taking extra time to pick the right company to build a critical piece of equipment — a generator step-up transformer — for the city’s new power plant after receiving 10 bids ranging from $1.6 million to $3.5 million. Officials plan to recommend a successful bidder to the council at its May 26 meeting. The equipment is considered “the first significant construction milestone in the development of the Ames Municipal Energy Center,” according to a staff report.
• ISU/council liaison: Trey Anderson will serve as the council’s ex officio representative. The council approved his appointment to represent the ISU Student Government.
• Closed session: The council went into closed session to discuss with legal counsel “matters presently in litigation or where litigation is imminent.”
• Next time: The council will meet in a special session May 19.