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Oak Ridge council approves MOU and accepts GSA offer to clear airport deed restriction on 105-acre tract
Summary
The Oak Ridge City Council unanimously approved a memorandum of understanding to coordinate parcel assembly and accepted a U.S. General Services Administration offer to abrogate an airport-use covenant on a 105.61-acre parcel (Airport Tract A) with a $1.9 million purchase price and a $10,000 earnest deposit; the state agreed to cover the payment and the council approved a timing-flexible substitute motion.
Oak Ridge — The City Council on [date of meeting] approved two related actions to clear federal deed restrictions and prepare a large industrial tract at Heritage Center Industrial Park for private development.
Mr. Heeman, speaking for staff, described a memorandum of understanding among four parties that “clarify what each partner is doing in this agreement and the timing and coordination of all those events,” and explained it is intended to coordinate the sequence of transactions needed to assemble parcels flowing to the city from federal property processes. The council moved and approved the MOU without dissent.
The council then accepted an offer from the U.S. General Services Administration to abrogate an airport-use covenant and right of reversion on an approximately 105.61-acre parcel known as Airport Tract A, read into the record by the city clerk. The GSA set the purchase price at $1,900,000 and required an earnest money deposit of $10,000. Mr. Heeman said the agreement gives the city 90 days to make final payment and that staff is trying to align state reimbursement timing so the city does not have to carry the $1.9 million for an extended period. A substitute resolution drafted to provide flexibility on timing was offered and adopted.
“Just for the benefit of the audience … the state has agreed to pay the $1,900,000,” Councilmember Hensley said during the discussion, a clarification repeated by staff. Council approved the amended resolution on a unanimous voice vote, “6 ayes, no nays.”
During public comment, Robert Kennedy, identifying himself as president of the Westwood Association, urged caution about the types of industry the city permits on or near the tract and said residents should “not be hasty” in approving steps that would facilitate certain nuclear-related industrial activity. Mayor pro tem and staff emphasized the steps taken were necessary to make the property available for whichever industrial client ultimately completes a purchase.
The actions clear legal and procedural hurdles but do not themselves transfer ownership to a private buyer; staff said the MOU is limited to coordination of steps and that final parcel transfers will follow the abrogation and any subsequent contracts.
What’s next: The city will sign the abrogation paperwork, submit the $10,000 earnest deposit and work to align state reimbursement timing. The substitute resolution gives staff flexibility on schedule; the council did not set a separate date for sale or conveyance of the parcel.
