City looking at options for FPL’s new substation?

1). Current substation; 2). Former 4.2 acre postal annex site; 3). Alternate 7-acre site now being considered

BY MARK SCHUMANN

As a part of the deal to sell Vero Electric to Florida Power & Light, the city agreed to turn over the 4.2-acre former postal annex site, located on the southwest corner of Indian River Boulevard and 17th Street. There FPL plans to build a new, larger substation.

The estimated $8 cost of the new substation is included in FPL’s $179 million offer for Vero Electric, though city officials and FPL representatives never publicly accounted for the value of the former postal annex site in calculating the net value of FPL’s offer. The current assessed value of the land is $1.4 million, according to City Manager Jim O’Connor.

Some Realtors and developers believe the city would be making a mistake to allow FPL to build a substation on land they believe is prime for commercial development. They say that the land should be put to a higher and better use, such as an office complex, or a mixed use development.

FPL turned down a alternate 3.5-acre sites located between 17th Street and 18th Street, saying it does not provide sufficient space or access.

The alternate site FPL rejected is adjacent to another undeveloped parcel of equal size. Combing the two sites would give FPL nearly seven acres. O’Connor said, together, the sites would exceeds FPL’s original criteria for total space, proximity to the power plant, and access points.

FPL representatives said they would need 3.5 to 4 acres. With a site nearly twice that size, some reason that FPL could provide more than sufficient landscaping to keep the a new, larger substation from become an eyesore in the the middle of the city.

Landscaped substation on the southwest corner of 58th Avenue and — Street-level view of Vero Electric’s substation on the southwest corner of 58th Avenue and 26th Street.

Aerial view of Vero Electric's substation located on the southwest corner of 58th Avenue and 26th Steet. — Aerial view of Vero Electric’s substation on the southwest corner of 58th Avenue and 26th Steet.

O’Connor said the ideal scenario would be for a developer to acquire the rights to the alternate site. A land swap could then be arranged, with the difference in value being paid to the city.

Asked if anyone has expressed interest in acquiring rights to the alternate site in order to exchange it for the former postal annex property, O’Connor said, “We are looking at it. A couple of parties have expressed interest.”

In fact, O’Connor, Councilwoman Tracy Carroll and other representatives from the city met recently with FPL personnel and a number of local Realtors and developers, including John Huryn, Mark Justice, Derek Arden and David Ashcroft.

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