While the sale of a coal-fired generator will bring down a portion of Moorhead's power plant, utility officials say it's too early to look at developing the scenic riverfront site.
Moorhead Public Service, the city's municipal utility, is selling the 36-year-old turbine for $400,000 to Davidson Recycling of Lexington, N.C.
The utility had been trying to sell the generator since the early 1990s, General Manager Bill Schwandt said.
"A small coal-fired unit like this is just not economical to operate," he said. "It's been mothballed for years."
As part of the deal, approved earlier this month by the City Council, the buyer is required to demolish the addition to the original power plant.
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Davidson Recycling will also tear down the 250-foot concrete stack looming above the plant, charging the utility $25,000 for that portion of the demolition.
Schwandt said crews will begin working on demolition within three weeks and expect to bring the building down by Thanksgiving.
The addition is attached to the east side of the brick building that housed the city's original power plant, built in 1895.
Of the four generators still in the original plant, only one works - though not that often.
The utility leases the 45-year-old oil-powered unit to Missouri River Energy Services for about $110,000 per year, said Guy Thoreson, the utility's finance manager.
The unit is kept in reserve, only used by Missouri River Energy during the times of highest demand.
Typically, the only time the generator is used is when Moorhead crews run it for a couple hours per year to test it, Thoreson said.
The contract runs through 2008, so the power plant is staying put until at least then.
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But after that, the utility may look at redeveloping the site, Schwandt said.
"I imagine we will have some discussion on that," he said. "It's out of the flood plain. It's got a nice view of the river. It is prime real estate."
The two parcels the power plant sits on comprise 4.4 acres of riverfront property on one of the area's highest points along the Red River.
Being a large plot of land high above the river, close to city's center, the property would be highly valued for development, said Konrad Olson, a commercial real estate agent in Fargo.
"I think it would have substantial interest," he said. "My guess would be high-end residential. I don't see it as a retail site. I don't see it as an office site."
Moorhead Public Service Commission President Ken Norman said while the land would be a good spot for development, it's a topic the utility board has not yet broached.
"I don't think public service is ready to tackle that subject right now," he said.
Utility Commissioner Bob Swenson said the board has been focusing on making sure the sale of the coal-fired unit goes through, not the future use of the power plant site.
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But if the subject comes up down the road, the utility will likely seek input from area residents, Swenson said.
"I'm sure we'd want to consult with all the neighborhood if and when that's discussed," he said.
Readers can reach Forum reporter Dave Roepke at (701) 241-5535
