GRU Authority approves demolition of Power District buildings; Kelly plant is ready to restart

BY JENNIFER CABRERA

GAINESVILLE, Fla. – At the September 9 GRU Authority meeting, the board approved the demolition of 10 vacant buildings in the Power District and learned that the Kelly plant is ready to restart; also, billing cycles will be limited to 30-31 days, beginning October 1.

Demolition of Power District buildings

Barrie Corp, GRU’s Utilities Administrative Services Director, told the board that GRU’s Eastside Operations Center was constructed in 2011, leaving 10 of GRU’s buildings in the Power District vacant; the buildings are along SE 5th Avenue and Depot Avenue, just east of 3rd Street (see map below).

In 2023, a professional appraisal company estimated that the property was valued at a combined total of $8 million, but the cost of renovations and demolition would be about $1.67 million, leaving a profit of $6.33 million; Corp noted that nearly every building was recommended to be torn down, “and it’s been three years since then, and it hasn’t gotten any better.”

GRU now estimates that the cost of demolition will be much lower than the original estimate, and the property is worth more, leading to an estimated profit of “well over $7.5 million.”

Corp said the buildings are a “safety and health hazard to the surrounding community”; he showed pictures of several buildings and said the dark spots on the roof are holes.

Corp said GRU put out a bid for demolition of the buildings, and three bids were received; he recommended awarding the contract to SGLC, which had the lowest bid of $485,045, although he said that was not the only factor. Corp said the vendor will be required to minimize noise and dust and clean up the site after demolition. He added, “It’s really time to get these things out of here. They’re just unsafe and not fit for people to be near.”

In response to a question about what will be done with the property, CEO Ed Bielarski said that after the site is cleaned up, GRU can “sit back and [discuss] what value [the property] has to the community and measure that against what value it would have to GRU.”

Director Chip Skinner made a motion to approve the asbestos abatement and demolition of the structures and award the contract to SGLC. Director Jack Jacobs seconded the motion, and the motion passed 3-0, with Director David Haslam absent.

GRU Review – Kelly plant and shorter billing cycles

During the GRU Review item, Bielarski said the Kelly plant’s rotor has been rewound, and they’re hoping to start the plant back up on September 11. He also said GRU has made changes in its Customer Information Systems to start limiting billing cycles to 30-31 days, starting October 1; this should eliminate customer complaints about long billing cycles.

Director Comments

During Director Comments, Skinner said he had reached out to Tallahassee to let them know that “it’s time for them to decide to either replace me or put me on through 2029, retroactively to my term ending. So we’ll see. December may be my last meeting.”

Chair Eric Lawson adjourned the meeting.