Of the $197 million value Florida Power & Light has put on its offer to purchase Vero Electric, $7 million has been earmarked, at the city’s request, to relocate the substation, either to the old postal annex site on the southwest corner of Indian River Boulevard and 17th Street, or to a comparable site no more than one and a half blocks of the power plant.
Presumably, if FPL was not committing to spend $7 million to relocate the substation, the city could double its expected cash proceeds from the proposed sale of its electric system. Current projections are that the city will pocket just over $7 million in cash on the $197 million deal, with much of the remaining proceeds going to pay off debt and other contractual obligations.
For some, it is simply a given that the entire 17.1 acre power plant site should be cleared, either for public use or for commercial development. They contend that it makes perfect sense to spend $7 million to move the substation.
If the land where the power plant now sits is to some day be sold or leased for commercial development, spending $7 million to relocated the substation only makes financial sense if there is a reasonable expectation the additional 3.5 acres on the west side of the site will be worth at least $7 million more to a developer.
Some who are looking to increase the city’s yield from the sale of its power system wonder if spending $7 million to clear off an additional 3.5 acres is a good investment.
First, they argue, it is hardly a forgone conclusion that the public will ever approve of leasing or selling the land for commercial development. According to FPL they will operate the plant for no more than five years, and will then decommission it and return the land to the city cleared. The city will remain liable, though, for any environment cleanup that may be needed.
If the site is to be put to public use, it is possible a properly landscaped substation could co-exist with whatever public uses are found for the remaining 13.5 acres of riverfront property.
When the value of land is factored in, the real cost of relocating the substation is more like $8 million. As a part of its proposed deal with FPL, the city is agreeing to give FPL the old postal annex site, or a comparable site of at least 3.5 acres within a block and a half of the power plant. That land is estimated to be worth at least $1 million.
Further, some have questioned the wisdom of turning the southwest corner of Indian River Boulevard and 17th Street into an electrical substation, when the site has so much potential for other commercial uses, such as retail, medical or professional offices.
Given the city’s pressing financial challenges, it seems questionable to commit $8 million or more to make an additional 3.5 acres of land available for possible commercial development.
There has been little or no public discussion about how much the city is spending to have the substation moved, or the motivations behind the decision. Perhaps it is time for an open conversation about an $8 million decision that appears to have been made behind closed doors.
Indian River Guardian 
As a matter of fact, upon the closing of the power plant; The City of Vero Beach resident has no use for a substation and switching gear at either the Indian River Blvd sites; whether the current power plant site or diagonally across the street at the old post office site. The City can operate a City hub out of Substation #5 with appropriate relocation and upgrading at very reasonable cost. Substation #5 is at the airport. Also needed are 3 other City substations, but not #1.
Substation #1, and the switching gear at the power plant, are now only needed because of the existence of that power plant and the County customers that plant supports. While it may be true that FPL would need a substation at 17th Street and IRB to serve County customers, the City taxpayer has no such need. Neither parcel should be used for a substation, upon the removal of the power plant. City Taxpayers should have both parcels cleared with the abandonment of the power plant, and they should not pay FPL $4.5-$7.0 to move switching gear and a substation along IRB which is of no use to them.
Respectfully,
Richard Winger, Vero Beach City Councilman December 24, 2012