Title
Amendment to Dock Lease with Duke Energy at McDowell Nature Preserve - CMPD Boathouse
Action
ACTION:
1) Authorize the County Manager to negotiate and execute an Amendment to that certain Public Recreational Facility Lease effective as of March 27, 2024 between the County and Duke Energy Carolinas, LLC ("Duke Energy') for docks abutting County-owned Tax Parcel 199-311-01 at McDowell Nature Preserve to allow for reconstruction of a boathouse operated and maintained by Charlotte-Mecklenburg Police Department (CMPD) for law enforcement activities along Lake Wylie; and
2) Authorize the County Manager to negotiate and execute a sub-lease between the County and the City of Charlotte to allow CMPD to operate and maintain its current and future reconstructed boathouse on the above referenced dock for law enforcement activities along the shores of Lake Wylie
Staff Contact: Jacqueline McNeil, Real Estate Management Director
Presentation: No
BACKGROUND/JUSTIFICATION:
At its June 21, 2023 meeting (Item #23-0372) the Board approved and the County subsequently entered into a lease agreement with Duke Energy for five (5) dock areas along Lake Wylie adjacent to County-owned parcel 199-311-01 at McDowell Nature Preserve. The shores of Lake Wylie are managed by Duke Energy subject to a license agreement between Duke Energy and the Federal Energy Regulatory Commission ("FERC"). The lease between Duke Energy and the County is in effect until the end of Duke's license agreement with FERC which is currently October 31, 2055.
Recently, CMPD approached the County to gain permission to proceed with reconstruction of a boathouse that is subject to the lease agreement between the County and Duke Energy. The boathouse is located on Lease Area 1 of the current lease and has been in use by CMPD for at least 35 years. CMPD proposes reconstructing the facility to modernize it to better meet the department's law enforcement needs along the lake. Duke Energy has reviewed CMPD's plans and is supportive of seeking the necessary FERC approval to amend the lease to allow for reconstruction the boathouse. Following FERC approval, the County is required to amend its lease with Duke Energy to specifically allow for reconstruction of the boathouse. The current lease does not allow for any activities not expressly permitted in the lease. Therefore, a lease amendment is required to allow CMPD to proceed with its construction plans.
Conditioned upon approval of the amendment to the lease by FERC and Duke Energy, the County proposes formalizing its arrangement with the City through a sub-lease between the County and City for reconstruction, operation, and maintenance of the current and newly constructed boathouse by the City (CMPD). The City (CMPD) will be responsible for all costs and activities necessary to reconstruct, operate and maintain the current and new boathouse. The sub-lease with the City will automatically terminate upon termination of the County's lease with Duke Energy. Both Park and Recreation and County Storm Water Services have reviewed CMPD's proposal and have found that the planned reconstructed boathouse poses no threat to either the nature preserve or Lake Wylie's water quality.
PROCUREMENT BACKGROUND:
N/A
POLICY IMPACT:
N/A
FISCAL IMPACT:
N/A