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Thursday, October 10, 2024

City of Avon Lake begins process to purchase land where power plant sits

AVON LAKE – The City of Avon Lake is taking the first official steps towards purchasing the land where the power plant sits, paving the way for a new lakefront experience for which the community has been clamoring. And while it will take potentially years to become a reality, the first step on that journey has been taken with the initial public review of an offer of $15 million for the 23 acre lakefront parcel.

City of Avon Lake begins process to purchase land where power plant sits

Avon Lake has taken initial steps to purchase power plant land.Graphic courtesy of Avon Lake

The overall parcel currently owned by power plant owners Chara will be split into two sections, with the 23-acre section on the lake and connecting to Miller Park being potentially purchased by the city. The remaining 19 acres to the immediate south would likely be sold to a commercial developer and potentially see mixed use space including condominiums, shopping and entertainment similar to Crocker Park in Westlake. The land itself has had several owners over the years, initially Cleveland Electric & Illuminating and later NRG when it was a functional power plant. Sold to Chara for the sole purpose of decommissioning, demolition and rehabilitation of the property to resell, their development group, ALERG, told Avon Lake officials at the outset of their purchase that the city made the most sense to be the buyer.

City officials agreed and have been working diligently over the past year to put together an offer to ultimately make that purchase a reality, Avon Lake community development director Ted Esborn explained.

“ALERG made it clear even four years ago that they thought the city was the best possible owner for at least some of the sites, so I would say that they have had that in mind since the beginning,” Esborn said. “The development agreement itself has been in the works for over a year going back and forth between the city and ALERG.

“The city would then contract for various improvements after the purchase is completed, so we would probably start with a land developer who does large projects, particularly park related, and they would assist us in a design,” he continued. “It’s also going to be driven by any future coordination with Lorain County Metroparks and what they may envision there, whether it’s returning to nature or something else. And obviously tons of public hearings and public input and so on and so forth.

“When the power plant closed, we listened to our residents, and they made it clear that lake access was the top priority,” Esborn closed. “This agreement allows us to give the community access to half a mile of Lake Erie shoreline. I’m hopeful that our residents share our enthusiasm, as their support will be key to making this vision a reality.”

The current timetable places the completion of the current land remediation by August 2025. Once remediation is completed, development would begin in earnest. The purchase of the parcel will be completed through the use of what is known as Tax Increment Financing (TIF) meaning no dollars would have to come from the Avon Lake general fund nor through a bond or levy. TIF is an economic development mechanism available to local governments in Ohio to finance public infrastructure improvements and, in certain circumstances, residential rehabilitation where payments derived from the increased assessed value of any improvement to real property beyond that amount are directed towards a separate fund to finance the construction of public infrastructure.

Esborn said this proposed funding mechanism may spark some in the community to balk at the purchase, however he and Avon Lake mayor Mark Spaetzel both said they have found almost universal agreement from constituents to move forward with the purchase of the property. ALERG is also going to have to negotiate with the Avon Lake School District as it requires their participation and cooperation because of how this sale will affect their property tax revenue.

Spaetzel stressed that the purchase of the lakefront parcel was of particular importance to the city because of feedback from residents who have continuously asked for more access to the lakefront. This move addresses the long-standing call from Avon Lake residents for greater access to Lake Erie, marking a major step in the vision for a revitalized lakefront. The agreement outlines collaborative efforts between public and private entities, involving environmental remediation professionals and financial partners, to ensure the site is remediated before the acquisition is finalized. Importantly, the city retains full discretion to approve or decline the purchase based on its evaluation of the site’s environmental condition.

“When we learned the power plant would be decommissioned, we immediately saw an opportunity for a transformational project,” Spaetzel said. “This agreement lays the groundwork for a large public park, new residences, and commercial spaces. Given the scale of this project, significant progress will unfold over the coming years.”

Avon Lake City Council is expected to have public discussions regarding the proposed development agreement over the next six weeks during council sessions and encourages public input. A full presentation regarding the proposed agreement was provided during council’s committee meeting last Monday and is available to view online at www.AvonLake.org.

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