GRU Authority votes to seek opinion from Attorney General, hears update on Power District

The GRU Authority met on February 21

BY JENNIFER CABRERA

GAINESVILLE, Fla. – At the February 21 GRU Authority meeting, the board voted to seek an opinion from the Attorney General about whether it’s legal to transfer funds to General Government and heard an update on the process of selling GRU’s property in the Power District.

Upcoming joint meeting with the City Commission

During chair comments, Chair Craig Carter announced that there will be a Joint City Commission/GRU Authority meeting at 1 p.m. on Wednesday, February 28, at City Hall. Carter said the meeting is necessary because the City is both a vendor and a customer of Gainesville Regional Utilities (GRU), and the financial transactions between the two have been “a handshake and a wink-wink deal” for many years. “We can no longer operate like that; we need to have something in writing,” Carter said. The agenda currently has two items: the Power District, and the General Services Contribution.

Attorney General opinion

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Member Robert Karow asked Authority Attorney Scott Walker whether it would “be prudent to go to the Attorney General and ask for an opinion about whether or not we can, in fact, use the money for [the General Services Contribution].”

Walker said they could certainly ask for an opinion, so Karow made a motion to do that, and Member James Coats seconded the motion. 

During public comment, Jim Konish said, “It’s clear that the transfer is allowed. However, there is a cap on it.” He said nobody seems to know how much money is actually sent to the City from GRU and suggested that the board also ask the Attorney General whether the City can charge franchise fees to GRU.

After public comment, Karow clarified that he thought the bill that created the Authority “envisions a transfer only if we’re not so heavily in debt and we have a profit.” 

The motion passed unanimously.

Power District

GRU Chief Customer Officer Kinn’zon Hutchinson reviewed the current status of the Power District property, consisting of 24 acres near Depot Park. 

Hutchinson said a 2023 appraisal valued the property at $22 million, and he said GRU could sell the property “as is,” including the administration building, or break it up into plats and sell the individual lots. A Request for Proposals was issued on February 20 with the intent of hiring a firm that will help determine the best way to liquidate the property so GRU gets the highest return on the property and can put those funds toward paying down its debt. 

In response to questions from the board, Hutchinson said there are no known environmental problems with the properties and no debt associated with them. 

Coats asked Carter, as a commercial realtor, whether he favored selling the property as a whole or breaking it up, and Carter responded, “I have an opinion, but I really think the proper thing to do is let whoever we pick, bring it back and have that discussion.

The item was informational, so no motions were made.

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