Guest opinion: CRA: Transmission line route will increase blight on Del Prado and Downtown; will scare off hundreds of millions of investment dollars
LCEC wants to run 75-foot tall transmission lines down Del Prado Boulevard from the Mid Point Bridge to 47th Terrace in the downtown and across 47th Terrace to their substation in the heart of the downtown or CRA District.
On March 9 the City Council heard a presentation from LCEC regarding the transmission route issue. Until then, LCEC has stated that they were “route neutral” and had been working closely with the Community Redevelopment Agency to find a route that does the least harm. They had steadfastly claimed that they needed a route chosen and that the route was to be determined by City Council.
Now, for the first time they are recommending a route, a recommendation made that seems to maximize the fiscal harm that will be done to the city of Cape Coral. LCEC recommended this route, with full knowledge of the planning, design and transportation policies and plans in place for the city and the downtown area. Previously, when LCEC presented to the CRA Board on Jan 29 and to Council on Feb 9 they asked for a route to be chosen. The City Council chose not to vote on the 9th due Councilmember Tate’s absence.
On March 9 LCEC changed its approach and recommended a route that had not been considered for several years. It should be noted that LCEC did not provide the Community Redevelopment Agency with a copy of their latest presentation nor did they discuss their 47th Terrace recommendation with CRA staff.
The route selected was justified by LCEC because it is the least cost, but in fact, it is one of the most expensive routes for the city and for the CRA. The route selected by LCEC impacts city-owned properties that were to serve as the catalyst for substantial redevelopment. These parking lots are essential, and are the key to the future mixed-use redevelopment of South Cape. If the transmission lines run along their northern border, these parking lots will become blighted to the point that any substantial redevelopment will be precluded. This will result in the ultimate loss of millions and millions of dollars in tax revenue and lost jobs.
The LCEC comment that this route will give the CRA time to evaluate options once development occurs shows a callous disregard for the fiscal heath of the city and the CRA. Once the above ground lines are built, LCEC had informed the city and the CRA that they would have to bear 100 percent of the costs of under grounding the lines and the removal of the overhead lines – a cost that would make any such decision for the city and the CRA economically not justified.
In effect, as stated above, the LCEC recommended route could result in an adverse effect on any major redevelopment north of Cape Coral Parkway. There are serious planning and development implications that need to be investigated before this LCEC recommended route is implemented. The fact that current bids expire at the end of the month was no reason for the city to be strong-armed and threatened into a premature decision. As it is possible given the current state of the economy and commodity prices, that costs are actually going down, and re-bidding would bring in a lower cost.
Key Points for Consideration:
By purposely recommending a route that will destroy the development potential of city-owned and privately owned property, LCEC would prevent the city from seeking public private partnerships in the redevelopment of its property. LCEC would be, in fact, creating an even greater blighting impact within the CRA.
This LCEC recommended route will have substantial negative effect on the future economic health of the city of Cape Coral as the route is one that impacts city-owned real estate and indentures it to a future of small- scale minimal development. LCEC places the city in the position of voting for a route that impacts residential voters or voting for a route that destroys substantial economic opportunity for the city and negates a decade of redevelopment planning and code revisions-all in an effort to save itself money and benefit customers outside of the city limits.
Because of the role that the CRA has played in educating the community about the issues and options available, it may be initially perceived that the LCEC recommendation is retribution against the CRA for leading the challenge questioning the unilateral LCEC efforts to place transmission lines in the city of Cape Coral. However, in effect what this action by LCEC may be is an effort to both punish the city and the CRA for exercising their responsibility to protect the public health, safety and welfare. The initial question is why a rural electric cooperative should be running transmission lines more appropriate for rural areas through the middle of an evolving city, thereby forever indenturing the real estate to small-scale uses.
LCEC claims this is the least cost route. Again, to who? The costs to the city and private property owners are immense. Where is the analysis that this is the least cost route? No detailed cost analysis has ever been provided by LCEC in this or any other presentation. A fair analysis should show both the cost impacts on LCEC and the cost impacts on future tax revenue to the city and county, and the diminution in value to the surrounding private property owners.
Also, the Zoning regulations REQUIRE new construction and renovations to bring buildings to the street in the CRA districts. How will this be possible with a transmission line on the edge of the property?
Again, LCEC suggests that building the above ground transmission line now will give the CRA time so that once development is being planned, it and the city can best determine the potential and timing for undergrounding the line. They are serious about this comment!! To later underground the transmission line will require the city, the CRA and the developer to pay not only the full cost of underground but the removal of the new overhead lines. This is quite a different cost than simply paying for the difference between overhead and underground lines on a route not so intentionally designed to save LCEC money, yet inflict maximum financial harm on the city and CRA.
Currently, one developer who is in permitting right now will have to bear the burden of moving one of the transmission poles on 47th Terrace. The developer has informed city staff that he will begin construction immediately once the PDP is granted. This development is worth hundreds of millions of dollars. This development is directly across the street from the sub station on 47th Terrace and encompasses an entire city block. Should the LCEC recommended route be implemented, the developer will now not be relocating one pole, but having to deal with a transmission line across his northern edge.
The blighting influence of the transmission line on Del Prado hasn’t been adequately discussed. There are more residential units on Del Prado then there are on either 46th Street or 46th Lane. Having a transmission line running past hundreds of condominiums, townhomes, churches and commercial businesses will seriously erode their economic value in similar fashion to any street in the Redevelopment Area.
And, finally -A New Option Proposed by LCEC
LCEC has, however, offered a new option. In separate communication with the city of Cape Coral they state that they could reengineer the line on Santa Barbara to carry the additional power they state is needed for the Southwest, Southeast, Sanibel and Captiva. The expansion of the capacity of these existing lines would, at least, result in not blighting any more of our city.
LCEC may argue, however, that the redundant circuit they seek down Del Prado is to guarantee an alternate way of routing power in Cape Coral in the event of an emergency and this need will not be solved by increasing the capacity on Santa Barbara.
It should be noted that transmission lines have few failures, it is the distribution lines that are most often toppled by trees in storms. At our last meeting, LCEC’s Mr. Fuson stated that there have only been four failures of transmission lines in LCEC history. For over 40 years South Cape Coral has survived without a redundant power line.
In Conclusion:
The CRA will be at the Council meeting to present the points covered in this memo. Concerned citizens should attend. The meeting starts at 4:30 p.m.
A calm thoughtful evaluation of the situation is called for. The need is NOT dire. LCEC states the need for increased capacity and redundancy. For the first time in its history, LCEC has lost customers, approximately 9,000 in 2008. Rampant growth is not occurring and is unlikely to occur for many years. The area of concern has lived without redundancy for 40 years and can probably survive without it for a few more years.
Before we blight two major thoroughfares of Cape Coral, Del Prado Boulevard and 47th Terrace in the downtown, this issue should be evaluated a lot more carefully. I hope the Council will rescind their vote and postpone a decision until we can consult experts and make a well studied decision that will benefit the needs of the City of Cape Coral.
John R. Jacobsen
Executive Director