The current substation now sits on approximately 1 acre of land located immediately west of the power plant building. That substation will be replaced with a new one for which FPL has said it will need 3.5 to 4 acres. The proposed sales agreement calls for the city to deed to FPL the former postal annex site on the southwest corner of 17th Street and Indian River Blvd. Other potential sites of less value are available, including two located between 17th and 18th Streets.
The above image illustrates what land might be deeded to FPL for its new substation. Giving the company 3.5 to 4 acres of the power plant site, a move that would require voter approval, would leave approximately 13 acres for any public use allowed for in the City Charter. Some have speculated that the current Council wants to ensure that the entire site will eventually be available to lease for a commercial use. “Go ahead and start looking at what we can use that for to start putting money back into the General Fund, and make it a revenue generating engine for us, rather than just a park,” Mayor Craig Fletcher said back in October.
BY MARK SCHUMANN
VERO BEACH – Acting on what he has said he considers to be direction from the City Council, City Manager Jim O’Connor negotiated a deal with Florida Power & Light that will have the city turning over 4.6 acres of prime commercial property for a new substation.
O’Connor says the Council wants the 17.2-acre power plant site cleared of all structures once FPL turns the land back to the city. Presumably, control of the land will revert to the city within three to four years after the deal finally closes, which is expected to be some time between Jan. 1, 2014 and Dec. 31, 2016.
FPL representatives maintain that if the power plant site is to be completely vacated, the company will need other land for a new substation within a block and a half of the intersection of 17th Street and Indian River Blvd.
According to FPL, $7.8 million of the company’s $196 million offer to buy Vero Electric is earmarked for construction of the new substation.
The land O’Connor has offered FPL is the former postal annex site, located on the southwest corner of 17th Street and Indian River Blvd. Estimates of the value of the land have ranged from $1 million to $4 million.
The plan to give FPL prime commercial property for a substation has raised a number of questions.
To begin with, Councilmen Jay Kramer and Richard Winger have said they never told O’Connor they necessarily wanted the substation moved, especially if doing so will cost the city some $7.8 million in cash it would otherwise receive from the sale. In addition to netting less in sale proceeds, the city will be giving up the future development value of the old postal annex site. The land has been estimated to be worth between $1 million and $4 million.
According to the City Clerk’s office, the Council has never voted on the question of moving the substation, and has never taken action to establish as city policy the position that the sale of Vero Electric’s assets could not include at least a portion of the power plant site.
Is O’Connor, then, acting on direction he has received privately from members of the Council other than Kramer and Winger? Just how does an $8 million to $12 million decision become the “direction” of the Council without the Council actually voting on the matter?
Secondly, though there are currently no proposals before the city to lease or purchase the old postal annex, commercial Realtors say the site has excellent potential for development.
As the local economy improves, presumably the city could either sell or lease the land for a commercial project. A number of real estate professionals have said the best option for the city would be to negotiate a land lease with developers. In addition to the lease income, the city’s tax base would increase by the value of whatever is built on the site.
If the Council insists that it is unwilling to ask voters for permission to give FPL ownership of 3.5 to 4 acres of the power plant site, then FPL will need some parcel of that size within close proximity.
While the old postal annex is the option O’Connor chose to make a part of the proposed purchase and sale agreement, at least two other possible sites, both of less value than the former postal annex site, have been identified. Within two blocks of the power plant, between 17th and 18th Streets are located two 3-acre parcels, each of which O’Connor has said could work for a new FPL substation.
Indian River Guardian 
Just think of what that 4.5 acre Postal Annex site will appreciate when the Power Plant is dismantled. Just think of even how much more it will appreciate if the “group of 3” council members press on to get their way and the Power Plant site is developed. In short, LOTS!.
It is completely irresponsible that the “group of 3” furthers this folley by giving away a $4M+++ piece of land when a totally adequate property assessed at $400k is virtually across the street.
Where is the due diligence? Where is the transparence so that the community can contribute to the process. What is the rush?
I wish that more citizens would adopt the caveat that Woodward and Bernstein created in the Watergate era and we need to have the public involved in a “”follow the money” mindset. There is much too little consideration given in this community on how our elected officials take the positions that they do because it might be financially beneficial to their own pocketbooks. We need far more transparency from the “group of 3” and a solid commitment that they or their family membrs will not have any personal investments that might be involved in what basically involves giving away city property. The issue of transparency should include open meetings and discussions about the benefits of a lease option vis-a-vis a sale.
There also needs to have on the public record how the proceeds of the sale of FP&L would be distributed. I am sure that I am not the only taxpayer who was under the impression that any profit from the sale would go to fully funding the employee pension funds which are now a deficit of aroundd $38 million.
Strategic planning seems to be a talent that is lacking from our elected officials. However, the days of Florida good old boys doing business with just a handshake are long gone. The taxpayers are entitled to a definite answer on the worth of the property. The public also needs to know what the ecologiical impact would be in having a second marina within the City of Vero Beach geographic boundaries. The public needs to be educated about any impact on the already existing marina.
Just this afternoon I asked Mayor Fletcher why he voted against participation in the Seven50.org planning process. His absurd response was that he does not want Vero Beach to become another Miami. He did not elaborate on how this could be possible by merely discussing relevant issues with others who have faced similar issues. However, by advocating for the land to be used as a marina it is the equivalent of making Vero Beach comparable to Annapolis.
Craig Fletchr also said that he would like to see a marina being built on the prioperty once Vero Beach is no longer in the electrical utility business. He apparently has not been down to Fort Lauderdale recenty where marinas are in abundance but provide nominal benefit to the taxpayers. This is a prime example on how it would be useful to be a part the Seven50 group so that we can have the benefit of lessons learned before we make similar mistakes.
There is no doubt that a marina could be an asset for the community siince we are on the Intracoastal waterway. However, having a marina on a site that is the major route to the barrier island makes the Vero Beach situation rather unique. Again, we need to learn from the experiences of other communities. Annapolis has its marina as a destination site. It is not on a major access route to the residences of taxpayers. Other cities also other cities do not have their marina so close to their hospitals. Since those who llive on the south end of the barrier island, the public will want to know how traffic would impede progress to the emergency room. Before any marina is approved, there would need to be a traffic impact study.
I did not attend the Council meeting where the issue of the Seven50 project was discussed. The process, howevr, was described to me by people’s whose assessments are credible to me is that the process was “an example of mob rule,: “circus environment” and “a comedy show.”
It is time for series discussion and we should not have such critical decisions made by a small handful of people.