[Federal Register Volume 80, Number 117 (Thursday, June 18, 2015)]
[Notices]
[Pages 34953-34956]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-14943]


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TENNESSEE VALLEY AUTHORITY


Muscle Shoals Reservation Redevelopment, Colbert County, Alabama

AGENCY: Tennessee Valley Authority (TVA).

ACTION: Issuance of Record of Decision (ROD).

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SUMMARY: This notice is provided in accordance with the Council on 
Environmental Quality's regulations (40 CFR 1500 to 1508) and TVA's 
procedures for implementing the National Environmental Policy Act 
(NEPA). On November 15, 2012, the TVA Board of Directors declared 1,000 
acres of the Muscle Shoals Reservation (MSR) in Colbert County, 
Alabama, to be surplus to TVA's needs and authorized the sale of such 
acreage at public auction, thereby adopting the preferred alternative 
in TVA's final environmental impact statement (EIS) for the 
redevelopment of a portion of the MSR. The ROD documenting this 
decision was published on September 16, 2013 (78 FR 56980). The notice 
of availability (NOA) of the Final Environmental Impact Statement for 
the Muscle Shoals Reservation Redevelopment was published in the 
Federal Register on November 18, 2011. A component of the preferred 
alternative was the publication of a Comprehensive Master Plan (CMP) to 
guide development of the surplus MSR property. On March 26, 2015, TVA's 
Senior Vice President of Economic Development approved the CMP 
contemplated in TVA's final EIS.

FOR FURTHER INFORMATION CONTACT: 
    Amy B. Henry, NEPA Program and Valley Projects Manager, Tennessee 
Valley Authority, 400 West Summit Hill Drive, WT 11D, Knoxville, 
Tennessee 37902-1499; telephone (865) 632-4045 or email 
[email protected].
    Heather L. Montgomery, Program Manager, Tennessee Valley Authority, 
Post Office Box 1010, MPB 1C-M, Muscle Shoals, Alabama 35662-1010; 
telephone (256) 386-3803 or email [email protected].

SUPPLEMENTARY INFORMATION: TVA manages public lands to protect the 
integrated operation of TVA reservoir and power systems, to provide for 
appropriate public use and enjoyment of the reservoir system, and to 
provide for continuing economic growth in the Tennessee Valley. TVA 
assumed custody and control of the 3,036-acre Muscle Shoals/Wilson Dam 
Reservation in Colbert County, Alabama in 1933 when Congress directed 
its transfer to TVA from the U.S. War Department. TVA has since managed 
2,600 acres of this nonreservoir property as the MSR.
    Since acquisition of the land, TVA's need for this amount of MSR 
property has changed. TVA's programs have changed over time and TVA has 
greatly reduced its operations and employment at Muscle Shoals. 
Therefore, TVA has determined that a portion of its MSR is no longer 
essential to its needs. Local public and private sector developers have 
been requesting use of this land for many years. In accordance with its 
economic development mission, TVA concluded that sale and redevelopment 
of approximately 1,000 acres of the MSR (surplus property) would help 
stimulate the local and regional economy. The sale of this land would 
also help TVA reduce its operations and maintenance costs and help TVA 
reduce its environmental footprint.
    The September 2013 MSR ROD provides information about the decision 
to sell this 1,000-acre portion of the MSR and should be referenced for 
more details, including information about need for property disposal, 
alternatives considered by TVA, environmentally preferred alternative, 
environmental consequences, and other background information.

Comprehensive Master Plan

    All of the Action Alternatives in the MSR EIS, including the 
preferred alternative selected for implementation by the TVA Board, 
included the publication of a CMP to encourage proper and responsible 
development of the approximate 1,000 acres of the MSR authorized for 
sale. To support this effort, TVA and the Northwest Alabama Cooperative 
District (NACD) conducted studies; evaluated environmental, historical, 
and architectural impacts and alternatives; participated in public 
forums; collected public input; and evaluated the market potential for 
the MSR site. Using the results of these

[[Page 34954]]

activities, TVA and the NACD developed a CMP to serve as an overarching 
guiding principles tool to encourage well-managed development of the 
surplus property.
    The CMP, which can be found at www.tva.gov/environment/reports, 
identified nine distinct areas and subareas, eight of which comprise 
the 1,000-acre surplus property, as well as the preferred uses of these 
areas. Preferred uses include retail, commercial, office, 
institutional, light industrial, heavy industrial, and preservation. In 
accordance with the Board's previous decision, seven of the MSR areas 
would be sold at public auction under Section 31 of the TVA Act and one 
area (Area 9--Phosphate Slag Area) would be retained by TVA, but would 
be made available as easement property for a utility corridor as 
described in the final MSR EIS.
    The CMP provides a description for each area, which includes the 
recommended design guidelines, preferred use options, and development 
restrictions for each area. The CMP envisions that all areas where 
development could occur would have design and aesthetics controlled by 
zoning, that favor a common thread architectural style and material 
elements consistent with other MSR redevelopment and which complement 
the historical context. Building, signage, and landscape designs would 
be pre-approved per local zoning requirements. Development restrictions 
vary by area, but most areas include restrictions such as: No 
residential dwellings of any form, no groundwater withdrawal, at least 
100-foot setback from existing roadway boundaries that allows for 
centralized utilities and future pedestrian trails, signage restricted 
to that which promotes businesses within the development, restriction 
on operation emissions, etc. TVA and local units of governments would 
share the responsibility of enforcing these guiding principles, as 
further specified in the CMP.
    The nine areas identified in the CMP are briefly described below. 
Please refer to the CMP for more area details, guideline documents and 
location maps.
     Area 1--Retail/Commercial. Area 1 is subdivided into 2 
areas (1A and 1B) to accommodate differing scale land uses. The area is 
located on the western boundary border of the property and is comprised 
of 95 acres. Market focus would be on the attraction of unique and 
differentiated businesses and discouragement of redundant retail/
commercial uses. Area 1B contains two building complexes, the 
Greenhouse complex and TVA's Customer Service Center, which would both 
be promoted for reuse.
     Area 2A--Mixed-use Commercial/Office and Light Industrial. 
Area 2A is located near the southwest corner of the MSR and is 
comprised of 61 acres. No buildings are located within the tract, but 
transmission lines traverse the extreme northwestern portion. Market 
focus would be on attracting businesses (tourism, government, 
financial, data management, etc.) that provide a balance of job 
creation with land-use conservation, with a preference for green-
friendly operations.
     Area 2B--Light Industrial. Area 2B is located near the 
southwest corner of the property and is approximately 66 acres. Market 
focus is to attract small-scale, clean light industries that provide a 
balance of job creation and land-use conservation, with a preference 
for green-friendly operations. Minimization of environmental impacts 
would be integrated into facility design, and public access would be 
retained and/or promoted in select areas for bird-watching and future 
walking trails.
     Area 3--Woodlands Preservation Area. Area 3 is divided 
into 3A and 3B to accommodate access to Second Street for the Area 7 
purchaser and comprises 203 acres. Both areas have similar design 
guidelines and development restrictions. Significant wetlands and a 
portion of the existing floodplains are found in these areas, which 
makes them ideal for preservation. Market focus would be to retain the 
woodlands and natural habitat and minimize man-made impacts. Value-
added opportunities (bird watching, environmental education, wetlands 
mitigation, recreation, etc.) would be promoted within these areas. The 
proposed wildlife corridor runs through these areas and fencing, which 
impedes wildlife, would not be allowed in this area.
     Area 4--Retail/Commercial. Area 4 is located in the 
southwestern corner of the property and comprises 98 acres. Wetlands 
and portions of the floodplain are currently located in Area 4; 
however, TVA is constructing an elevated embankment that would reduce 
the total number of acres threatened by potential flooding. Market 
focus would be on the attraction of unique and differentiated 
businesses and discouragement of redundant retail/commercial uses.
     Area 5A--Mixed Use Large-Scale Campus/Venue. Area 5A is 
located along the northern boundary of the surplus property along 
Reservation Road and comprises approximately 85 acres. Market focus is 
campus environment and attraction of single entity or mixed-use 
development utilizing a campus-style setting. A small portion of the 
MSR Historic District is located within area 5A, and future owners 
would be required to abide by specified design guidelines approved for 
the Historic District within that portion.
     Area 5B--Mixed Use Medium-Scale Campus/Venue. Area 5B is 
located along the western boundary of the surplus property along 
Reservation Road and comprises approximately 50 acres. Eight buildings 
previously utilized by TVA for research and development are located on 
this property, all of which would be promoted for reuse. Market focus 
is campus environment and attraction of single entity or mixed-use 
development utilizing a campus-style setting. A portion of the MSR 
Historic District is located within area 5B, and future owners would be 
required to abide by specified design guidelines for the Historic 
District within that portion.
     Area 5C--Mixed Use Small-Scale Campus. Area 5C is located 
on the north side of Reservation Road and comprises approximately 35 
acres. Area 5C is an existing multi-use facility campus and all 
buildings would be promoted for reuse. A portion of the Reservation 
Road trail is located within this area. Market focus is campus 
environment and attraction of single entity or mixed-use development 
utilizing a campus-style setting.
     Area 6--Business Village/Mixed Use Commercial. Area 6 is 
74 acres and is located in the center of the surplus property. Sixteen 
buildings are located in this area. A select number of these buildings 
have been identified as historically significant and are targeted for 
adaptive reuse. Other buildings may be promoted or demolished by TVA or 
future owners depending upon their condition. Preferred use is office, 
commercial, service, retail, light-to-medium industrial, civic, or 
government. This area is located within the MSR Historic District, and 
future owners would be required to abide by specified design guidelines 
for the Historic District.
     Area 7--Differentiated Industrial Development. Area 7 is a 
163-acre area located in the center of the MSR. Three TVA buildings 
remain in this area and would be promoted for reuse. Area 7 extends to 
Second Street to accommodate potential employee and shipping traffic or 
necessary utilities. Preferred use is mid-to-heavy industrial 
facilities such as manufacturing (or similar) operations with the 
potential for significant job creation and capital investment. Area of 
concern (AOC) 998 is located within Area 7. Area 7

[[Page 34955]]

contains a portion of the MSR Historic District, and future owners 
would be required to abide by specified design guidelines for the 
Historic District within that portion.
     Area 8--TVA property. Areas 8A and 8B (low-level 
radioactive waste burial site) comprise approximately 400 acres of the 
MSR. These areas do not contain enough developable land for meaningful 
non-TVA development and are therefore not part of the 1,000-acre MSR 
surplus footprint.
     Area 9--Easement Area. Area 9 is approximately 66 acres 
and located south of the Tennessee River and north of Reservation Road. 
Area 9 contains the phosphate slag storage area and is therefore not 
suitable for new construction or permanent public occupancy. TVA will 
retain ownership of this area, but would make the area available as a 
utility access corridor under specific use agreements (easements or 
licenses) in order to complement the overall success of the MSR 
redevelopment.
    The CMP identifies the suggested and preferred areas, but 
recognizes that TVA could reconsider the area boundaries, preferred 
uses, market focus, design guidelines, and development restrictions in 
the event a single buyer expresses an interest in purchasing more than 
one area, in part or in whole. The cities of Muscle Shoals and 
Sheffield are expected to annex portions of the surplus property and 
may also impose additional measures for each area as each city deems 
appropriate.

Public Involvement

    Please reference the September 2013 ROD for information about the 
public involvement in the MSR EIS process. In response to comments from 
U.S. Environmental Protection Agency on the final EIS, TVA noted that 
it planned to release a draft of the CMP and hold a public meeting to 
obtain stakeholder comments.
    In 2011, TVA and NACD jointly sought input from stakeholders and 
the general public to discuss the potential economic opportunities in 
redeveloping the MSR property in preparation of the CMP. Two public 
meetings were held in November 2011 in Lauderdale and Colbert Counties 
to obtain public comments on the future use of the MSR property. TVA 
distributed the draft CMP to interested individuals, groups, and 
federal, state, and local agencies in September 2014 for a 30-day 
public comment period. A public meeting was held on September 30, 2014, 
in Florence, Alabama. TVA received 7 public comments and addressed the 
comments in the final CMP.

Updated Information

    Since the publication of the 2013 MSR ROD, TVA has been taking 
steps to make portions of the MSR property more useful for future 
development. TVA developed a strategy that allows for the demolition of 
and/or enhancements to targeted buildings, structures, and land while 
abiding by TVA's Memorandum of Agreement (MOA) with the Alabama State 
Historic Preservation Officer and the 2011 EIS. The improvements began 
in 2013 with the removal of unwanted legacy buildings and structures 
and non-native species plants (i.e., privet, kudzu, etc.). The 
potential impacts of the building demolitions were addressed in a 2013 
environmental assessment and potential impacts of the plant removal was 
addressed in a 2013 categorical exclusion checklist. TVA has also been 
granting easements to local utility companies for placement of fiber 
optic cables, power lines, and similar installations to improve the 
marketability of the MSR surplus property.
    TVA is currently constructing a new levee associated with Pond 
Creek in the southwest corner (Area 4) of the MSR property. The 
proposed levee is necessary to fulfill TVA's commitments in the 1973 
agreement with the City of Muscle Shoals. Potential environmental 
impacts were addressed in a July 2014 environmental assessment. The 
proposed levee would result in an overall reduction in inundation 
levels within Area 4.

Decision

    On November 15, 2012, the TVA Board declared 1,000 acres of the MSR 
surplus to TVA's needs and authorized the sale of such acreage at 
public auction upon a determination by the Senior Vice President, 
Economic Development, following consultation with the Vice President, 
Natural Resources and Real Property Services, that market conditions 
warrant selling the fee simple interest of the 1,000 acres or a portion 
thereof. The sale of the property would be in accordance with TVA's 
preferred alternative, Alternative F--Unrestricted Land Use in the 
final EIS. This decision incorporates mitigation measures that would 
reduce the potential for adverse impacts to the environment. These 
measures are listed in the 2013 MSR ROD. The preferred alternative also 
requires the publication of a CMP. TVA developed the MSR CMP with the 
NACD and other appropriate local, state, and federal authorities for 
the holistic redevelopment of the MSR property. On March 26, 2015, 
TVA's Senior Vice President of Economic Development approved the final 
CMP.

Mitigation Measures

    A full list of the measures associated with the sale of the surplus 
property is identified in the September 2013 MSR ROD. The sale deeds 
and associated transfer documentation would include restrictions and 
limitations specific to some or all of the surplus property per the 
mitigation measures outlined in the final MSR EIS. The CMP specifically 
identified the restrictions and limitations listed below:
     The sale deeds for every area would contain a covenant 
that the Grantee shall not remove groundwater from the property or 
inject groundwater into the property for any purpose except as mandated 
by applicable regulatory agencies or for environmental sampling or 
remediation purposes. The deeds would also contain a covenant that the 
Grantee shall not construct any unlined retention/detention basins or 
surface water features on the property.
     In order to assure compliance with Executive Order 11988 
(Floodplain Management) and Executive Order 11990 (Protection of 
Wetlands), TVA would include specific language in any conveyance 
documents for the property and require that any proposal for future 
improvements in a floodplain or wetland area would be subject to TVA 
review and approval prior to construction (in addition to any other 
regulatory approval).
     TVA would place an Environmental Covenant on the portion 
of the property within AOC 998 (Area 7) in order to limit its future 
uses. This Environmental Covenant is required by the Alabama Department 
of Environmental Management (ADEM) and must be recorded prior to sale. 
Within the portions of the property subject to Environmental Covenants, 
use of the property has been approved for industrial and commercial 
activities in accordance with the Alabama Risk-Based Corrective Action 
Guidance Manual, which allows traditional industrial uses and 
operations, commercial uses such as stores and businesses, and 
community college use such as offices, classrooms, parking areas, etc. 
The following shall not take place in areas covered by covenant use 
restrictions without obtaining prior written approval from ADEM: Use of 
the property for any residential or unrestricted use, which includes 
but is not limited to primary and secondary schools, dwellings, homes, 
hospitals, childcare centers, nursing homes, playgrounds, recreation 
centers, and any other areas or structures with sensitive

[[Page 34956]]

human activity. Additionally, digging or excavation would be prohibited 
within the portion of the property identified as Solid Waste Management 
Unit 141. This environmental covenant was recorded by TVA on August 29, 
2014.
     All future sales of areas that are wholly or partially 
within the MSR Historic District would contain deed restrictions 
requiring the buyer to adhere to the ``Muscle Shoals Reservation 
Historic Design Guideline and Architectural Controls'' pertaining to 
redevelopment and new development within the historic district 
boundaries. Design review and enforcement would be addressed by the 
cities of Muscle Shoals and Sheffield.
     Prior to and in conjunction with the sale of any portion 
of the property, TVA would be required to coordinate with ADEM with 
respect to necessary modifications to the existing TVA Resource 
Conservation and Recovery Act (RCRA) Permit. TVA would inform ADEM of 
its intentions to sell property prior to auction in order to solicit 
feedback and assure alignment with necessary procedures. After parcels 
are sold, TVA must formally request the property be removed from the 
existing RCRA permit. A public notice (typically 45 days) is required. 
Upon approval, ADEM would remove the land from the RCRA permit, and the 
requirements of the permit would no longer apply to the land under new 
ownership.

    Dated: June 8, 2015.
John J. Bradley,
Senior Vice President, Economic Development.
Rebecca C. Tolene,
Vice President, Natural Resources and Realty Property Services.
[FR Doc. 2015-14943 Filed 6-17-15; 8:45 am]
BILLING CODE 8120-08-P