As Georgia Power continues to relocate equipment and miles of wires from under Auburn and Edgewood avenues to make way for the Atlanta Street Car project, authorities in the city and at the utility giant might have hit a 48-year stumbling block – who is going to pay for the $2 million project.
“Each side thinks the other side will pay for it,” said Atlanta City Councilman Howard Shook, who chairs the city’s utilities committee. “An agreement where both sides agree the other side should pay for it sounds like a Monty Python sketch. But it is dubious legislation.”
In a round of briefings this week, the Atlanta City Council debated the fact that in the “Facilities Relocation Agreement,” the city and Georgia Power both assume that the other side would pay for the move.
Both sides are now combing over details of a 1965 franchise agreement to see if a settlement can be reached.
Reese McCranie, the city’s deputy director of communications, said while the facilities relocation agreement does not address the cost of relocating utilities in the city right of way, “According to the Franchise Agreement already in place, Georgia Power is responsible for relocating its utilities and bearing the cost.”
But John Kraft, a spokesman for Georgia Power, said the company has a different interpretation of the franchise agreement.
“We believe that we are abiding by the terms of that agreement,” Kraft said.
Georgia Power is one of 18 utility companies who have had to relocate equipment to accommodate the streetcar project. Throughout the 2.7-mile route, workers are everywhere removing a labyrinth of wires and cables.
“I don’t have a solid way to characterize the volume of work, except to say that, like most other utilities in the area, we have been relocating facilities all along the more-than 2-mile route,” Kraft said. “This has included overhead and underground electric infrastructure in the area.”
Shook, who had planned to discuss the legislation at a committee meeting this week before it was pulled from the agenda, said he is not surprised that Georgia Power would want to renegotiate the 1965 agreement.
“Georgia Power cannot be blamed for wanting to renegotiate a contract,” Shook said. “Especially with the stadium looming.”
Kraft said the company has been doing relocation work since last fall, “and a great deal of our work is now complete.”
“We are currently performing the remaining relocation work needed to support the project,” Kraft said. “We’re working hard to finish our work in order to support the project, but we are continuing our discussion with the city related to reimbursement for those relocation costs.”
The $93 million project – which will run between the Martin Luther King Jr. National Historic Site and Centennial Olympic Park carrying hopes of revitalizing the corridor – will be covered by a $47 million federal stimulus grant, as well as funds from the city of Atlanta and the Atlanta Downtown Improvement District.
Studies suggest that the project, scheduled to open in the spring of 2014, will pump nearly $170 million worth of investment into the area over the next 20 years.
“This shouldn’t impact the timing of anything,” McCranie said. “As I understand it, they are ahead of schedule and it is our understanding that they will continue to work. This will be resolved at a later date.”
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