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AI- 2990   12. B. 8.    
BOC Regular
Meeting Date: 09/05/2019  
Resolution to Approve a Utility Easement for Electrical Lines with Marshall Energy Center, LLC
FROM: Jim Dyer, Corporation Counsel, Corporation Counsel
Department: Corporation Counsel  

Information
RESOLUTION:
Resolved, that the Calhoun County Board of Commissioners, acting in its capacity as the Calhoun County Road Commission, does approve an Option to Purchase Easement for Electrical Lines with Marshall Energy Center, LLC, and authorizes the County Administrator/Controller and the Board Secretary to sign the Option, and all other documents necessary to create the Easement upon exercise of the Option.
RECOMMENDATION:
The Administration and the Corporation Counsel recommend approval of the Resolution.
BACKGROUND:
Marshall Energy Center, LLC proposes to construct a major electrical generation facility in Marshall on South Old US-27. When completed the multi-phase project will represent a nearly $500 million investment in electrical infrastructure.

The project also requires the construction of primary transmission lines from the proposed generation facility. These lines will be constructed, in part, along I-69. MEC has requested an easement on the eastern edge of the Calhoun County Road Department property where the Marshall Garage is located. The easement will permit the construction of overhead primary transmission towers and lines as detailed in the attached easement documents. The area of the easement, approximately 5.44 acres of the much larger County parcel is shown in document J-27 Exhibit A (Sketch) to be attached to the Option. Exhibit B is the Easement itself. 

The easement does not prevent the use of the property below the overhead transmission lines, and will not interfere with the current use and operation of the Marshall garage site.

MEC proposes to pay $2,000.00 on approval of the Option, which must be exercised within two years. The Option can be extended for an additional two years upon payment of an additional $2,000.00 payment. Upon exercise of the Option MEC will pay an additional amount of $14,230.00, (or $12,230.00 if the extension is used) for a total of $16,230.00 consideration for the easement. This represents a payment of $3,000.00 per acre for easement use. The option payment and extension are retained if the Option lapses.
ALTERNATIVES:
None. The easement is necessary to complete the project. Rejection of the easement may result in the abandonment of the project.
SUMMARY:
The County is asked to approve an Option to Purchase Easement for Electrical Lines with the Marshall Energy Center, LLC, and authorizes the County Administrator/Controller and the Board Secretary to sign the Option and all other documents necessary to create the easement upon exercise of the Option.

Fiscal Impact
Attachments
Option Agreement
Graphic Depicting Easement
Easement

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