Redrock Wind Project, LLC

One South Wacker Drive | Suite 1800 | Chicago, Illinois 60606

T 312-224-1400 | F 312-224-1444

July 24, 2023

VIA EMAIL ONLY

Steven Goodlow, Esq.

Dickinson County Attorney
1802 Hill Ave Ste. 2509
Spirit Lake, IA 51360
sgoodlow@dickinsoncountyiowa.gov

Re: Proposed Wind Energy Moratorium

Dear Mr. Goodlow:

I am writing on behalf of Redrock Wind Project, LLC (an affiliate of Invenergy LLC)
regarding our pending Redrock Wind project in Dickinson County. I understand that a
moratorium on wind energy projects is up for discussion at tomorrow’s Board of
Supervisors meeting.

While you are aware of the Redrock Wind project, I want to share our position on how this
existing development impacts the moratorium under consideration, and to encourage the
County to reject such a moratorium or to grandfather the Redrock Wind project in so that
it is not impacted.

Invenergy has been working with the County and various County officials and landowners
since 2019 after acquiring the project from Tradewind Energy, which had been developing
the project since 2016. Prior to that, local landowners had been working to bring a project
forward since 2008. The project represents a very large investment in Dickinson County.
Upon completion, it will directly add up to $2.8 million per year to the County budget in
new tax revenues. The project will also create approximately 300 jobs in the region during
construction. It will create a new, stable income stream for many local residents to
diversify farm revenues.

Invenergy’s work with those landowners is well underway: rights to 48,000 acres of land
have been acquired through approximately 185 voluntary agreements with Dickinson
County landowners. Landowners participating in the project have received over $1M in

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payments for their land over the last three years during project development, and will
continue to receive lease payments for the life of the project. Site suitability studies have
been conducted, interconnection studies have been completed with MISO and an
interconnection agreement along with $16.45M in security has been executed, several
environmental studies and surveys have been performed, and meteorological towers have
been constructed and are operating onsite under permits from the County. The project
planning, engineering, environmental and other studies are either complete or have been
thoroughly advanced. All of the planning, engineering and substantial investment in the
project – a total investment of over $7.5 million to date – have been conducted in reliance
on the current state of the law in Dickinson County. Redrock Wind reported to the Board
of Supervisors in April 2023 that it anticipated filing an application as early as June 2023.
The Application is now substantially ready to file.

As you can imagine, any changes in the requirements for this project, given its maturity,
would be very problematic. With this in mind, I thought it might be helpful to provide
some information to you regarding Iowa law on grandfathering or vesting of rights that we
believe is relevant in the context of the above substantial steps that have already been taken
in the development of the Redrock Wind project.

Under these facts, Iowa law grandfathers the Redrock Wind project into the regulatory
regime that existed when the described substantial steps in reliance on existing regulations
were taken — that is, the zoning regulations applicable when the project was being
developed. Iowa courts hold that, “a developer may acquire a vested right because of
substantial expenditures made in reliance on the previously existing ordinance, thereby
precluding application of the new ordinance.” Geisler v. City Council of City of Cedar
Falls, 769 N.W.2d 162, 167 (Iowa 2009). To determine whether the vested rights
exception applies, Iowa courts engage in a two-part analysis: “(1) did the property owner
make substantial expenditures toward the use in question prior to the zoning change; and
(2) were the expenditures made by the property owner lawful.” Id. (quoting Quality
Refrigerated Servs., Inc. v. City of Spencer, 586 N.W.2d 202, 206 (Iowa 1998)). As
preparatory work has been going on for several years in reliance on the existing land
regulations where the project is being developed, there have already been substantial
expenditures. The total amount expended vastly exceeds what has been found sufficient in
prior cases. See, e.g., City of New Hampton v. Blayne-Martin Corp., 594 N.W.2d 40, 42
(Iowa 1999) (focusing on illegality prong but impliedly finding that substantial
expenditures prong had been met where expenditures totaling only $19,000 had been
expended on materials and labor toward the construction of a parking garage); Nemmers,
v. City of Dubuque, Iowa, 716 F.2d 1194, 1196 (8th Cir. 1983) (applying vested rights
doctrine where landowner spent approximately $140,000 on grading and pre-construction

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professional fees). The second prong here is also unquestionably met: in the absence of
pre-existing zoning requirements, there were no prerequisites to the steps Invenergy has
taken on the Red Rock Wind project; it has followed all rules and regulations regarding,
for example, consultation with environmental agencies and the interconnection process.
Invenergy’s prior expenditures, preparation, and construction activities have therefore all
been lawful. Recognizing that Dickinson County has had positive experience with wind
energy and has presented clear expectations and requirements, we sent the required agency
notification letters in October 2022 and gave a public presentation on the project in March
2023.

As a result, while Dickinson County can certainly adopt a moratorium that delays new
projects in the future, that moratorium cannot lawfully apply to Redrock Wind.

Invenergy looks forward to continuing to work closely with Dickinson County and its
residents, to bring new investment, tax base, and jobs to Dickinson County, and to be a
positive presence in the community. Invenergy has enjoyed a positive relationship with
county government to date on the project, we look forward to that relationship continuing.
We were surprised that a moratorium was being considered to stop the final submission of
Redrock Wind’s imminent application, and hope that it was a misunderstanding that is
remedied at tomorrow’s meeting by making clear that any moratorium does not apply to
Redrock Wind.

Should you have any questions or if you would like to discuss this further, please do not
hesitate to contact me. I would appreciate your sharing this with the Supervisors before the
meeting.

Respectfully,

Michael A. Hill
Associate General Counsel, Permitting and Local Affairs

Cc: Lori Pedersen, Auditor, as administrator for the Board of Supervisors

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