When did the BRA Board of Directors begin considering the option to divest of PK leased property?
In 2003, at the request of a number of PK lessees, the BRA Board of Directors (Board) directed staff to investigate the potential of offering leaseholds for sale to the current lessees. As the staff began researching the potential for divestiture, they learned that there were a number of legal issues facing the BRA from state and federal law, including the Texas Constitution, the Texas Water Code, and of particular significance, the Federal Energy Regulatory Commission (FERC). Once the Board reviewed the intricacies of these issues, it was determined that divestiture of the property was overly cost and time intensive for both the Authority and the lessees. As a result, the Board voted to discontinue fact finding efforts and move toward establishing a longer and more realistic leasing contract and lease rate methodology.
