October 26, 2014

Gardner Electric to consider new development incentive rates

Danedri Thompson
dthompson@gardnernews.com
Gardner Energy may start offering incentive rates to new businesses.
Members of the electric utility board discussed a proposal that would offer reduced electricity rates of up to 30 percent to new commercial and industrial customers.
Under the proposal, a business granted the economic development rate would see a 30 percent reduction in rates in the first year, a 25 percent reduction during the second year, 20 percent reductions in year three, a 15 percent rate reduction in year four, and a 10 percent reduction in electric rates in year five. The customer would pay the full rate in year six and beyond.
Gardner Energy Electric Director Bill Krawcyzk said the developer of Midwest Commerce Center (MCC), Paul Licausi, has asked what incentives the utility board might be able to offer for a prospective warehouse. MCC currently houses the Coleman Warehouse. Millions of square footage in the development remains available for new warehouses.
Krawczyk said without the incentives, Gardner Energy’s rates for a large new warehouse would be about five percent less than the rates of Kansas City Power and Light, the electric utility’s main competitor serving Olathe and Edgerton.
However, KCP&L provides a rider that allows some incentives for new development.
“When you have a potential customer looking in Olathe, Edgerton and Gardner, and KCP&L has a rider and we don’t, we’re at a disadvantage,” Krawczyk said.
Utility board chair Lance Boyd was supportive of the idea, but said he’d like to see more specifics in whatever policy the board adopts.
For example, under the proposal the board considered on Oct. 4, the incentive rates would be available to new facilities that are projected to equal or exceed Gardner Energy’s annual system load factor within two years. However, if a prosepective new business can not meet the load factor, the utility board would consider other criteria, including: the number of new permanent full-time jobs created; capital investment; additional off-peak usage; or new industry or technology to Gardner.
“I just think there need to be some limiting metrics,” Boyd said. “It’s got to be measurable criteria.”
Board members Ryan Beasley and Eric Schultz did not attend the meeting.

Comments

  1. Judith Rogers says:

    I knew it was only a matter of time before the slimy bureaucrats, developers, politicians and their appointees started in with the back room deals again and I feel sure the deal has already been rubber stamped on this one as usual. I see where Schultz continues to be No Show Schultz and now Beasley joins him which provides no surprises, however, they will certainly be there with their rubber stamp when the snakes in the grass tell them to be there.

    Not only have the people had to pay the electrical transfer fees for some of these businesses but now the thieves want an even sweeter deal on the backs of the people. Dear ole Bill Kraw is no friend to the average citzen but is proving to be a real thorn in their sides but he sure knows how to take care of the thieves right along with other bureaucrats at the direction of the rot-gut politicians – that is my opinion.

    The big boys want to pay no or as little taxes as possible, they want their “fraudulent” farm appraisals, they want the citizens to bankroll their exorbinant development and infrastructure costs, they wanted the business personal property tax eliminated which they got done, they got Brownie to take care of them royally this year by eliminating state income tax for many of them and then the local mafia takes care of them in this manner and much, much more………I wonder when the people will find their backbone and stand up against this constant bloodsucking and if they don’t, then their prospects are not going to be good and they will have no one but themselves to blame – that is my opinion.

  2. Judith Rogers says:

    I have one thing to say to people like nonamer and all of these snakes in the grass and it is:

    “My door is always open so feel free to leave.”

  3. Judith Rogers says:

    Slimy politicians and their propaganda, promises, etc. truly should bring about your contempt as evidenced by this article……….Brownie is one of the leaders of the pack of snakes in the grass……..

    http://www2.ljworld.com/news/2012/oct/10/brownback-not-ruling-out-sales-tax-plan-next-year/

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