Title
Memorandum of Understanding for Power District Catalyst Project and Declaration of Surplus Property (B)
Explanation
The City Commission designated the CRA as the lead agency, and designated the CRA Director as the Champion for the City's Strategic Initiative 2.3, which involves planning for redevelopment of a portion of real property owned by the City and listed as a GRU asset and located in the general vicinity of Depot Park and the Kelly Power Plant. This Strategic Initiative Project is commonly referred to as the “Power District.” A portion of the Power District property is no longer needed for GRU operations, due to the relocation of GRU's operations facilities to the new GRU Eastside Operation Center (EOC) on North Main Street, and can be declared surplus and made available for private ownership and/or use.
At its meeting on November 17, 2011, the City Commission received a Letter of Intent from Prioria Robotics, Inc. a company interested in occupying a portion of the Power District property approximately located at 555 SE 5th Avenue (Tax Parcel Identification Number 12720-000-000). The City Commission authorized the City Manager, the City Attorney and the General Manager for Utilities to review and analyze the proposed project and negotiate terms and conditions for Prioria's use of certain property within the Power District and bring back a draft mutual letter of intent or other form of agreement for consideration by the City Commission, subject to approval by the City Attorney as to form and legality. The CRA Board took similar action at its meeting on November 21, 2011.
Since November 21, CRA, City and GRU management, attorneys and other staff have been meeting to review and analyze an initial catalyst project for the Power District and have identified key actions that must be taken to bring any such project to fruition. The attached draft Memorandum of Understanding (MOU) is the first step outlining key tasks and authorizations to move a catalyst project forward. Under the terms of the MOU, the City is agreeing to make the property available for private use and authorizes the CRA to act as agent for the City and GRU in changing the land use and zoning of the property and in negotiating with Prioria and other third parties for use/occupancy of the property. In addition, the CRA is being authorized to develop a plan for funding necessary improvements to the property and to make improvements to the property, as may be approved by GRU.
Since the completion of the GRU Eastside Operations Center on North Main Street on August 26, 2011 and relocation of many GRU operations and associated employees to that site, a portion of the Power District, as identified in the MOU, is no longer needed for GRU operations. It has been determined by GRU staff that the property should be declared surplus and made available for private use in accordance with the MOU.
Fiscal Note
The MOU does not have a specific financial impact; however, the MOU does set the framework for transfer of a portion of the GRU Support Services Asset to the City and CRA. In the future, the development of the Power Center on this property will have a significant financial benefit to our community and the City.
Recommendation
The City Commission: 1) Approve the Memorandum of Understanding between the CRA, the City and GRU, subject to approval as to form and legality by the City Attorney; and 2) Find and declare as surplus the property identified in Exhibit “A” of the MOU and make same available for private use in accordance with the terms and conditions of the MOU.