2021-004 Gibbons Creek Follow UpDate: January 15, 2021 Report No. 2021-004
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Gibbons Creek Steam Generation Station – Asset Purchase Agreement. Follow up to City Council Work
Session
BACKGROUND:
On January 26, 2021, City Council will consider a Concurrent Ordinance to approve the proposed Asset
Purchase Agreement (APA) authorizing the sale of the Gibbons Creek Steam Generating Station (Gibbons
Creek) by the Texas Municipal Power Agency (TMPA) to the Gibbons Creek Environmental
Redevelopment Group (GCERG), a Texas LLC that is a wholly owned subsidiary of Charah Solutions,
Inc. (https://charah.com/). A work session conducted by the City Council on on January 5, 2021 was held
to provide background and details on the proposed transaction and to answer questions from the City
Council. During the work session Council members requested specific information regarding anticipated
land use by the Buyer.
DISCUSSION:
New Information – On January 11, 2021 the City Councils of Garland, Bryan and Greenville approved
the Concurrent Ordinance that will be consider on January 26, 2021. Execution of the APA now awaits
action by the Denton City Council.
Question 1: Will the Buyer provide any details on planned land use of the redeveloped property?
Response: TMPA staff contact the Buyer and requested the information. Charah’s response is shown
below:
Gibbons Creek Environmental Redevelopment Group (GCERG) plans on redeveloping the approximately
6,200 acres in an environmentally conscious manner that will expand economic activity and benefit the
surrounding communities through job creation, promotion of industry, support of the tax base including
the Grimes Country Schools, as well as restoring the property to a state that will enable it to be put to its
best potential use.
GCERG has been working with TMPA for many months on this purchase and has investigated many
possibilities for the property’s future to maximize the value of the assets and improve the environment as
well as contribute to the surrounding communities and the local economy. While these possibilities are
still in negotiations and cannot be discussed in detail, we can assure you that the outcome to the
communities will be very positive.
The existing power plant will be demolished, and potential redevelopment uses for the property include;
solar, battery, and energy storage options which utilize the existing transmission system, maximization of
the reservoir’s potential, reuse of the vast rail system, and other industrial uses. It is planned that the
Gibbons Creek Reservoir RV Park and campground will continue to operate. GCERG will also work with
TCEQ to complete all environmental remediation required for the property and then will redevelop the
remediated property within all zoning restrictions. By matching the right potential buyers to the right
Date: January 15, 2021 Report No. 2021-004
assets, GCERG plans to achieve the greatest possible outcome for the property and the surrounding
communities.
The redevelopment of the property is expected to be completed within 36 months.
Question 2: What land use restrictions are in place for the site in Grimes County?
Answer: While some counties have been delegated zoning authority by the legislature, Grimes County is
not one of them. Grimes County, together with all other counties, has authority to regulate land use
around certain lakes constructed after a certain date, but Gibbons Creek Reservoir was constructed prior
to such date.
Grimes County does have, as authorized by law, a standard subdivision regulation. If, in the future,
Charah decides to subdivide the plant site into tracts of 5 acres in area or smaller for residential
development, Charah will have to comply with the subdivision regulations, but they are not land use
regulations in the same sense as a zoning regulations.
In sum, it appears that Charah may put the plant site to any lawful land use. Whether land is put to
residential, commercial, or industrial use is beyond the scope of Grimes County regulations.
STAFF CONTACT:
Terry Naulty
Asst. General Manager DME and Interim Director of Water/Wastewater
Terry.naulty@cityofdenton.com
(940) 349-7565