Groveland Mine Solar would repurpose a former mining area 12 miles northeast of Iron Mountain for renewable energy. (Circle Power Renewables photo)

TROY — Three Dickinson County townships have approved property tax guarantees and decommissioning agreements for Circle Power’s planned Groveland Mine Solar project, the company said Tuesday.

All three local governments have accepted a plan that would give a guaranteed minimum of $12 million to local governments –including the townships, Dickinson County, and local schools, Circle Power said in a news release.

The townships also approved an agreement to ensure that the facility will be removed at the end of its useful life.

“Circle Power is following through on our commitment to be good neighbors in Dickinson County,” said Jordan Roberts, CEO of Circle Power. “We fundamentally believe that communities should benefit from renewable energy projects like Groveland Mine Solar in a big way. I want to thank all of our partners at the local and county level for working with us to make this a reality.”

Although Dickinson County government will be a major beneficiary, no direct tax contract is proposed for the county. That’s because the individual townships are the assessing units that set the property values on which the tax payments are based.

“Groveland Mine Solar will contribute a minimum of $12 million in new tax revenues to Felch, Norway and Sagola townships, Dickinson County, area schools, and additional public entities,” said Lois Ellis, executive director of the Dickinson Area Economic Development Alliance. “Circle Power Renewables has offered property tax guarantees, a novel approach, to the three townships. The guarantees provide a transparent, predictable, multi-year view of future tax revenue with a defined and guaranteed minimum tax amount.”

Marty Fittante, CEO of Invest U.P., said the property tax guarantee is designed to offer stable and predictable revenue streams to local governments, allowing them to strategically and predictably invest in essential equipment, infrastructure, and savings. “This step goes beyond the norm today and offers validation to Circle Power’s dedication to their partner communities,” he said.

Once constructed, Groveland Mine Solar will be operational for at least 30 years. The decommissioning agreement with the townships ensures the solar facility is removed at the end of the project’s life.

A qualified, third-party expert estimated the cost of this work and the funds required for decommissioning will be fully bonded and available once the project is no longer in use, Circle Power said. The project is contractually required to update the estimate every five years to ensure that when it is time to decommission the facility, the total funding necessary is available to complete the work.

Under the project, ground-mounted solar arrays will be sited on public and private lands of the decommissioned Groveland Mine, which operated from the early 1950s until 1981 under the ownership of the Hanna Mining Co. Groveland Mine Solar has signed a letter of intent with the Upper Peninsula Building Trades Council to guarantee that the project will be constructed with union labor.

The company has proposed installing 185,000 ground-mounted solar panels over 500 to 550 public and private acres, much of it at the former open pit mine property. It will cost roughly $200 million if fully built — including an estimated $20 million for labor, according to Circle Power — and at that size would produce enough electricity to annually power 17,600 homes.

According to developers, the size of the solar farm will be determined by a number of factors, including whether the cost of the electricity is competitive. The proposed project includes 57 MWs in Norway Township, 32 MWs in Sagola Township and 31 MWs in Felch Township. The tax revenue estimates and each township’s share are based on that arrangement.