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RDA discusses Mercury Marine purchase; city, utility easement talks remain unresolved
Summary
Redevelopment officials updated the board on negotiations with Mercury Marine over a city-owned parcel intended for parking; the trust issue centers on ATC transmission easements that cross the property and could limit future development unless recorded before sale.
City staff told the Redevelopment Authority that negotiations with Mercury Marine over the sale of a city-owned riverfront parcel adjacent to Mercury Marine remain in progress because of utility easement issues with ATC.
Economic development staff said ATC's overhead transmission lines cross the parcel and, while the lines have been in place for more than 10 years, no recorded easement exists on the city's title. Staff said they have scheduled a meeting with Mercury Marine, ATC and the city attorney to resolve easement language and determine whether the city should obtain recorded easements before conveying the land.
Why it matters: Staff said that without recorded easements the utility's rights could limit future uses of the parcel and make large portions effectively unbuildable. Staff told the RDA the parcel's most likely near-term use is a parking lot to support Mercury Marine's expansion, and that the company will also provide a portion of the land for the city's riverwalk alignment.
Discussion and next steps: Commissioners questioned the value to the city of negotiating easements versus making easement responsibility part of Mercury Marine's purchase terms. Staff said they are seeking to preserve the city's bargaining position and to protect potential future development value if Mercury Marine later sells the parcel. Staff proposed a special meeting in the near term to approve the offer and easement language once negotiations conclude. A doodle poll or similar scheduling tool will be used to set that meeting.
No final conveyance or easement recording occurred at the meeting; staff said they expect to report back after the multi-party meeting with ATC and the buyer.
