The city of Oak Park Heights will lose a major taxpayer in a few years when the Allen S. King power plant closes in 2028. It’s also facing a massive expense after learning this year that both of its drinking water wells tested above state guidelines for per- and polyfluoroalkyl substances (PFAS).
It might be possible that one of the financial hits could help kickstart a fix to the other, however. The City Council voted Tuesday night to apply for money set aside for cities that are losing a power plant to start designing a water treatment system.
“We’re trying to get ahead of the game,” Council Member Mike Runk said.
The city qualifies for funds from a state Department of Employment and Economic Development grant known as the Community Energy Transition Grant because Xcel Energy plans to close the King power plant as it switches to more renewable energy sources.
The plant provides about 30% of tax revenue for Oak Park Heights, or about $1.5 million in 2024. It also employs 77 people.
After Tuesday night’s vote, Oak Park Heights will apply for $440,000 to start designing a water treatment plant that would sit north of City Hall. The city would also use $110,000 from its own water funds.
The combined $550,000 would pay for a feasibility study and pre-design work on the water treatment plant, including a preliminary survey, soil borings, a preliminary environmental review and about 30% of the design work.
Jim Kremer, a city resident who spoke at the meeting, questioned why the city should spend the money at all when PFAS levels found in the city’s wells are measured in the parts per trillion. It seems like a solution in search of a problem, he said, saying the city would be better off focusing on economic development.