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Finance Committee

Regular Meeting

Clarksville, TN · April 19, 2021

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Minutes

FINANCE COMMITTEE AND PARKS & RECREATION COMMITTEE APRIL 19, 2021 MINUTES PUBLIC MEETING CALL TO ORDER A joint meeting of the City of Clarksville Finance Committee and Parks & Recreation Committees was called to order by Finance Chair Stacey Streetman on Monday, April 19, 2021 at 4:30 p.m. in City Council Chambers, 106 Public Square, Clarksville, Tennessee. This meeting was conducted in person and via Google Meets. ATTENDANCE IN PERSON: Ashlee Evans, Travis Holleman, Karen Reynolds, Stacey Streetman VIA GOOGLE MEETS: Richard Garrett, Jason Knight, DaJuan Little, Wallace Redd ABSENT: Vondell Richmond APPROVAL OF ELECTRONIC MEETING In order to comply with the technical aspects of the Governor’s Executive Order regarding holding open meetings in a forum other than in the open and in public, the Finance Committee determines that meeting electronically is necessary to protect the health, safety, and welfare of its citizens due to the COVID-19 outbreak. Councilperson Evans made a motion to approve the electronic meeting. The motion was seconded by Councilperson Redd. The following vote was recorded: AYE: Evans, Garrett, Holleman, Knight, Little, Redd, Reynolds, Streetman The motion to approve the electronic meeting passed. CDE SOLAR PROJECT PRESENTATION Mayor Joe Pitts said Silicon Ranch Corporation had expressed interest in purchasing 140 acres at I-24/Exit 8, the site of the City’s athletic complex property. He said the property in question had been determined undevelopable. Mayor Pitts summarized the City’s Phase 1 and Phase 2 plans for the athletic complex and noted adjacent land to the north would be developed by Exit 8 Properties for commercial use. Clarksville Department of Electricity planned to build a substation on the north edge of the complex property and Mayor Pitts said the City would retain access to the Red River on city-owned property. He said the City’s offer to sell the property to the solar energy company would be a three-year purchase option, $10,000 the first year, $20,000 the second year, and $30,000 the third year. He said the company’s option payments to the City would be non-refundable and they would pay property taxes upon ownership. Brian Taylor, CDE General Manager, stated CDE is the 44th largest public power provider among more than 2,000 in the U.S., providing power and services to 72,000 electric customers and 24,000 video/internet/phone customers. He noted CDE pays $6 million annually to the City of Clarksville in lieu of property taxes. Mr. Taylor said CDE purchases power from Tennessee Valley Authority who is the department’s only power provider and rate regulator. He said a recent agreement with TVA allows CDE to purchase up to 5% of renewable energy from outside sources. He stated the proposed agreement with Silicon Ranch Corporation, a Tennessee corporation, would allow sale of renewable energy to TVA and to CDE. Mayor Pitts said this proposal would allow the City of Clarksville to continue its plan to develop the athletic complex on the remaining 207 acres and said sale of the hard-to-develop land would generate $3.36 million that could be used for the recreational project. Mayor Pitts offered the following responses from committee members’ questions: proceeds from the sale of the property would go to the General Fund; Silicon Ranch would be responsible for all site preparation upon ownership. Mr. Taylor offered the following responses from committee members’s questions: CDE would retain all Renewable Energy Credits to be used to improve the existing system and to meet its sustainability goals; the rate CDE would pay for solar energy would be approximately half the rate for TVA electric power; the savings would not result in an immediate reduction in customer energy bills, but could delay rate increases; the solar power generated from the facility would be transferred to the CDE substations and not stored. City Attorney Lance Baker said the sale of this property would recover 82% of the total cost of the athletic complex property. APPROVAL OF SALE OF PROPERTY ORDINANCE 83-2020-21 Authorizing sale of a portion of city-owned property located near Exit 8 off Interstate 24 (Clarksville Athletic Complex) to Silicon Ranch Corporation for the purpose of development, construction, installing, operating, maintaining, and managing a solar power generation facility Councilperson Holleman made a motion to forward this ordinance to the City Council with a recommendation of approval. The motion was seconded by Councilperson Evans. The following vote was recorded: AYE: Evans, Holleman, Knight, Little, Redd, Reynolds, Streetman NOTE: Councilperson Garrett did not respond. The motion to forward this ordinance to the City Council with a recommendation of approval passed. ADJOURNMENT The meeting was adjourned at 5:34 p.m. ADOPTED: April 27, 2021

Agenda

FINANCE COMMITTEE AND PARKS & RECREATION COMMITTEE AGENDA *This meeting will be conducted via Google Meets* DATE: April 19, 2021 TIME: 4:30 p.m. LOCATION: City Council Chambers/Google Meets Meeting ID: meet.google.com/mnm-aqbk-qrg Join by Phone: (US)+1 414-436-8874 PIN: 408 116 121# 1) PUBLIC MEETING CALL TO ORDER 2) ATTENDANCE 3) APPROVAL OF ELECTRONIC MEETING In order to comply with the technical aspects of the Governor’s Executive Order regarding holding open meetings in a forum other than in the open and in public, the Finance Committee determines that meeting electronically is necessary to protect the health, safety, and welfare of its citizens due to the COVID-19 outbreak. 4) CDE SOLAR PROJECT PRESENTATION Brian Taylor 5) ORDINANCE 83-2020-21 Authorizing sale of a portion of city-owned property located near Exit 8 off Interstate 24 (Clarksville Athletic Complex) to Silicon Ranch Corporation for the purpose of development, construction, installing, operating, maintaining, and managing a solar power generation facility Mayor Pitts 6) ADJOURNMENT ORDINANCE 83-2020-21 AN ORDINANCE AUTHORIZING THE SALE OF A PORTION OF CITY OWNED PROPERTY LOCATED NEAR EXIT 8 OFF INTERSTATE 24 (CLARKSVILLE ATHLETIC COMPLEX) TO SILICON RANCH CORPORATION FOR THE PURPOSE OF DEVELOPMENT, CONSTRUCTION, INSTALLING, OPERATING, MAINTAINING, AND MANAGING A SOLAR POWER GENERATION FACILITY WHEREAS, the City of Clarksville owns certain real property located near Exit 8 off of Interstate 24 that has been designated for future development and use as a large athletic complex; and WHEREAS, the City Council finds that a substantial portion of that property is not suitable for use for athletic fields; and WHEREAS, the Silicon Ranch Corporation (Silicon Ranch) is a business that develops, constructs, installs, operates, maintains, and manages solar power generating facilities; and WHEREAS, Silicon Ranch desires to purchase from the City an option to purchase a portion of the Exit 8 Athletic Complex land owned by the City for the purpose of developing, constructing, installing, operating, maintaining, and managing a solar power generating facility; and WHEREAS, the City of Clarksville, through its Clarksville Department of Electricity Lightband (CDE) , as a retail local power company (LPC) that sells electricity to end user customers, has a long term contract with the electric power wholesaler the Tennessee Valley Authority (TVA) to purchase electric power; and WHEREAS, TVA has established a green sustainable energy program to allow LPCs to purchase a portion of their electric power needs from non-TVA companies using green, sustainable, renewable energy production resources / facilities; and WHEREAS, Silicon Ranch and the City of Clarksville, through CDE, desire to enter into a long term contract for the purchase of wholesale electric power by CDE from Silicon Ranch, using the solar power generating facility referred to herein; and WHEREAS, the City Council finds that the best interests of the City would be served by selling a portion of the City owned Exit 8 Athletic Complex property, being 142 acres +/-, to Silicon Ranch for the purpose of Silicon Ranch to develop, construct, install, operate, maintain, and manage a solar power generating facility to generate and sell electrical power to the City of Clarksville, CDE. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLARKSVILLE, TENNESSEE: That the Clarksville City Council hereby authorizes the sale of a portion of City owned property located near Exit 8 off of Interstate 24, known as the future Clarksville Athletic Complex, being 142 acres +/-, and being more particularly described in the attached Option Purchase agreement, upon the terms and conditions stated in the Option Purchase agreement, attached hereto and incorporated herein, to include the stated purchase price of Three Million and Four Hundred and Eighty Thousand Dollars and Zero Cents ($3,480,000.00). REFERRED: April 1, 2021 to Finance Committee and Parks & Recreation Committee FIRST READING: SECOND READING: EFFECTIVE DATE: LAND DESCRIPTION OF A PORTION OF THE CITY OF CLARKSVILLE PROPERTY Being a parcel of land in the 1st Civil District of Clarksville, Montgomery County, Tennessee, said parcel being tax map 58 parcel 4.04 & 4.05, and tax map 57 parcel 21.00 said parcel being the City of Clarksville Property as recorded in Volume (Vol.) 1821, page 338 Register’s Office Montgomery County, Tennessee (ROMCT), said parcel being generally described as east of and adjacent to Interstate 24, south of Rossview Road, north of and adjacent to the Red River in Clarksville, Tennessee, 37043, said parcel being more particularly described as follows: Beginning an iron pin (old), said pin being the northeast corner of the Batson Development Company, Inc. Properties as recorded in Vol. 141, page 401 ROMCT, said pin also being the southern property in of the John Mitchell property as described in Vol. 245, page 883, said pin being S 30° 17' W for a distance of 2,171 feet from the centerline intersection of International Blvd and Rossview Road, said also being the northwestern corner of the herein described parcel; Thence, along said Mitchell property, S 81° 53' 05" E for a distance of 167.16 feet to a point on a line; Thence, leaving said Mitchell property and along a new property line, S 81° 53' 05" E for a distance of 369.73 feet to a point on a line, said point being the western property line of the Exit 8 Properties property as described in ORV 1903, page 2070; Thence, along said Exit 8 Properties property line for the next 3 calls, S 81° 49' 30" E for a distance of 557.88 feet to an iron pin at the base of a 36” oak tree; Thence, S 06° 55' 30" W for a distance of 780.38 feet to a point on a line; Thence, S 83° 36' 47" E for a distance of 1271.13 feet to a point on a line, said point being the western property line of the said City of Clarksville property; Thence, leaving said Exit 8 Properties and along a new severance for the next 2 calls, S 08° 42' 48" W a distance of 447.31 feet to a point on a line; Thence, S 81° 54' 58" E for a distance of 1670.21 feet to a point on a line, said point being the western property line of the Moore Construction Company, Inc. property as described in ORV 1561, page 339, said point also being the north east corner of the herein described parcel; Thence, along said Moore Construction Company, Inc. property for the next 3 calls, S 08° 05' 02" W for a distance of 655.23 feet to a point on a line; Thence, S 09° 46' 20" W for a distance of 233.54 feet to a point on a line; Thence, S 09° 46' 20" W for a distance of 1098.46 feet to an iron pin at a 30” sycamore tree, said point being located along the red river, said point also being the south east corner of the herein described parcel; Thence, leaving said Moore Construction Company, Inc. property and along said red river for the next 3 calls, S 85° 06' 26" W for a distance of 368.89 feet to a point on a line; Thence, S 88° 26' 34" W for a distance of 349.60 feet to a point on a line; Thence, S 73° 34' 09" W for a distance of 347.59 feet to a point on a line, said point being the eastern right of way of Interstate 24, said point also being the south west corner of the herein described parcel; Thence, along said Interstate 24 right of way for the next 9 calls, N 23° 56' 10" W for a distance of 579.62 feet to a concrete monument; Thence, N 41° 47' 02" W for a distance of 225.56 feet to a point on a concrete monument; Thence, N 32° 04' 17" W for a distance of 675.64 feet to a point on a concrete monument; Thence, N 44° 49' 56" W for a distance of 496.19 feet to a point on a concrete monument; Thence, N 43° 49' 15" W for a distance of 832.90 feet to a point on a concrete monument; Thence, N 46° 09' 40" W for a distance of 698.68 feet to a point on a concrete monument; Thence, N 29° 35' 56" W for a distance of 429.04 feet to a point on a concrete monument; Thence, N 11° 24' 29" W for a distance of 244.31 feet to a point on a concrete monument; Thence, N 26° 37' 46" W for a distance of 175.01 feet to an iron pin, said pin being the eastern property line of the said Batson Development Company, Inc.; Thence, leaving said Interstate 24 right of way and along said Batson Development Company, Inc, N 06° 37' 28" E for a distance of 375.18 feet to the point of beginning, said parcel containing 6,186,810 Square Feet or 142.03 Acres, more or less. Together with and subject to all right of ways, easements, restrictions, covenants and conveyances of record and not of record.

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