Submitted By: William E. Sexton, City Attorney
Presentation By: William E. Sexton, City Attorney
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Department: City Attorney
FORMAL TITLE:
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Approval of four grants of easement and an assignment of easement from the City of Ocala to Duke Energy Florida in connection with Duke’s 230kV transmission line project
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OCALA’S RELEVANT STRATEGIC GOALS:
Choose an item., Operational Excellence
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
This agenda item includes the transfer of five easements. There are four new easements and one assignment of an existing easement, which are being granted/assigned by the City of Ocala to Duke Energy Florida (Duke) in connection with its larger 230kV transmission line project, which also provides a benefit to Ocala Electric Utility (OEU) and the City of Ocala (the City).
An aerial view/sketch prepared by the City’s Real Estate Division accompanies this item and depicts the easement areas which are being transferred by this agenda item (Exhibit 1).
By way of additional background, as a part of the agreement approved by City Council on October 21, 2025 (Exhibit 2) for the sale of the 230kV transmission line from OEU’s Shaw Substation to the Seminole Electric Cooperative’s Silver Springs North Station, Duke agreed to construct a new 230kV transmission line interconnecting at OEU’s Shaw Substation. The route for that transmission line requires Duke to acquire certain transmission easements along the west side of I-75, as well as an easement on the Shaw Substation property for the placement and maintenance of the new 230kV transmission line infrastructure. The City has an existing 230kV transmission easement that Duke needs to acquire, as well as the remaining four new easements on City-owned property.
The City has obtained independent appraisals of the value of these easements, and, through many months of cooperative discussion and negotiation, Duke's proposed compensation offer of $1,640,000.00 exceeds those appraised values. Furthermore, the construction of the new 230kV Duke transmission line and its interconnection with the City’s Shaw Substation are critical to OEU’s long-term transmission planning and overall system reliability.
Lastly, a portion of the funds in Duke’s proposed compensation will be used to relocate certain City of Ocala water/wastewater/stormwater assets along SW 66th Street, which is further impacted by Duke’s plans to improve its transmission assets along that roadway.
FINDINGS AND CONCLUSIONS:
Staff finds and concludes that the transfer of the easements from the City of Ocala to Duke Energy Florida contained in this agenda item is a benefit to Ocala Electric Utility and the City of Ocala, serves a public purpose, promotes the health, safety, and welfare of and are in the best interests of the City of Ocala, Florida, and its citizens.
FISCAL IMPACT:
The transfer of the real property assets contained herein does not have an adverse impact on Ocala Electric Utility’s and the City of Ocala’s operations, and the transfer of these assets will generate $1,640,000.00 in revenue.
PROCUREMENT REVIEW:
N/A
LEGAL REVIEW:
Duke Energy Florida prepared the easement documents in this agenda item, which have been reviewed and approved for form and legality by William E. Sexton, City Attorney.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny