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City of Orono Mayor and City Council <br />December 10, 2010 <br />Page 2 <br />thereafter northwesterly on the southerly side of Old Highway 12 in or along a large, high quality <br />wetland to a point on a lot within the neighborhood (see enclosed map). We received the Staff <br />Report on this matter at approximately 2:30 p.m. today, when it was first made available, to be <br />reviewed by you next Monday and, therefore, unfortunately, we have to respond late on Friday <br />and send our response directly to you by email and to your home addresses so that hopefully you <br />will have an opportunity to review our comments before the Council meeting on Monday night. <br />We apologize for having to do so. <br />We and our clients strongly recommend and request that the City Council not refer this <br />matter back to the Public Utilities Commission ("PUC") for review and approval. In this case, <br />Xcel has sought local review and approval from the City of Orono because the project meets the <br />exemption set forth in the statute as set forth in the City's Staff Report. <br />The City Staff states that the they recommend that you defer the review of this <br />application back to the PUC pursuant to Minn. Stat. § 216.E05, subd. I (b) and Rule 7850.5300, <br />subpart 4. The City has no legal duty to do so. <br />We and our clients are concerned that if in fact this matter is referred back to the PUC, <br />then the City will have limited opportunity to make sure that all environmental issues related to <br />this proposed project are adequately addressed in the environmental assessment process. <br />Moreover, and just as important, we and our clients know that the PUC does not have the <br />expertise, and quite frankly, the desire to fully understand the impact of this project on the <br />adjacent neighborhood, the wetlands that will be crossed by the new transmission line, and the <br />substantial adverse impact of the new and larger substation and new transmission line on the <br />value of the numerous homes in the neighborhood. Several of the homeowners have estimated <br />that the reduction in value could be as high as 30% to 40% of the values of those homes if the <br />project is built as currently proposed. <br />As you know, if this matter is not referred back to Xcel, then the City has the opportunity <br />to approve or deny the required conditional use permit. During the analysis of the application for <br />the conditional use permit, the City can hear testimony relating to the relevant issues and <br />determine whether or not the conditional use permit should be granted or denied, or only granted <br />with conditions to minimize the adverse impact on the neighborhood and the wetlands. <br />The conditional use permit standards set forth in the Orono Zoning Code are as follows: <br />See. 78-916. - Granting of permit. <br />(a) The planning commission may recommend and the council may grant a <br />conditional use permit as the use permit was applied for or in modified form. On <br />the basis of the application and the evidence submitted, the city must find that the <br />proposed use at the proposed location is or will be: <br />(1) Consistent with the community management plan; <br />1138559.DOC- 12/10/2010} <br />