Title
Service Rider for Bear Archery(B)
Explanation
Upon learning of the possibility that a significant local employer, Bear Archery, could be ceasing operations in the Gainesville area, on November 2, 1999 the City Commission authorized the General Manager to negotiate electric rate discounts in exchange for GRU being established as the firm's exclusive area power supplier for the next 10 years. The General Manager was also directed to determine if Bear Archery would consider voluntarily annexing into the City once its property became contiguous to the City limits. Finally, the General Manager was asked to provide further documentation that all the requirements of the City's Retained, Expanded, or Attracted Load Ordinance (960498) had been met. At stake are approximately 150 industrial jobs.
As a consequence of negotiations and other deliberations, Bear Archery has agreed to the prospective annexation and is willing to engage in the long-term power supply relationship with GRU. The value of discounts agreed to is approximately $15,000 annually for four years, which is roughly 75% of the maximum allowed under the City's Ordinance. Bear Archery also agreed to voluntarily annex its site into the City whenever its site is lawfully eligible.
The Ordinance requires that retention of this customer must also be in the best interest of the City. The criteria for this determination are threefold: 1) the discount must be demonstratively necessary to retain the load; 2) revenue forgone by the City, under the Rider, and any other financial incentives offered by the City shall not outweigh the long term quantitative and qualitative benefits to the City's taxpayers and utility ratepayers; and 3) the business activity is consistent with the City's goals, objectives and policies regarding: Land Use and Zoning, Environmental Impacts, Economic Development Objectives and Transportation Infrastructure. A report entitled "Evaluation of the Consistency of the Bear A...
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