FACILITIESAPPROVED

City of Fredericksburg City Council Agenda February 2026

Fredericksburg awards long-term landfill solar facility lease to Community Power Group

$5,000 Lease Execution Payment; $5,000/year for extended option (if applicable); Annual Operating Rent: $3,500/acre/year (Shared Solar) or $2,100/acre/year (Distributed Energy), 2% escalation/yearCity of FredericksburgCOMMUNITY POWER GROUP LLCFebruary 24, 2026

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Description

The City of Fredericksburg approved a 25-year lease agreement with Community Power Group LLC for the development, construction, operation, and maintenance of a solar facility at the Cool Spring Landfill. The agreement includes an upfront lease execution payment, annual rent based on acreage used and solar program classification, and options for extension up to an additional fifteen years. Community Power Group LLC was selected after a competitive RFP process and will be responsible for permits, development, and decommissioning at their cost.

Contract Details

Contract Amount

$5,000 Lease Execution Payment; $5,000/year for extended option (if applicable); Annual Operating Rent: $3,500/acre/year (Shared Solar) or $2,100/acre/year (Distributed Energy), 2% escalation/year

Vendor

COMMUNITY POWER GROUP LLC

Agency

City of Fredericksburg, VA

Contract Type

FACILITIES

Document Date

February 24, 2026

Contract Term

2-year option period (plus optional 2-year extension), then 25 years from Commercial Operation Date, with 3 possible 5-year extensions; decommissioning period up to 180 days after end of lease

Renewal Date

2051-12-31

Renewal Info

Lease includes option to extend 2-year development/option period for additional 2 years at $5,000. Main lease may be extended for up to three consecutive 5-year periods after the 25-year initial term by written notice 180 days prior to expiration. Escalating annual rent (2% per year).