BACKGROUND:
empirical Foods, Inc., (Developer) owns approximately 50.2 acres of property within the corporate limits of the City of Garden City. This property is located at 110 South Jennie Barker Road. The Developer plans to construct a lean ground beef production plant and all of the related facilities and improvements that are required. The plat for the property was recorded on November 5, 2020 and the re-zone (from County I-3 to City I-3) is expected to go before the Governing Body on January 5, 2021. The Developer has received their foundation permit and is currently performing excavating work. The project has a projected Commercial Operations Date (COD) of April 30, 2023. The Developer agrees to pay the associated costs of City electric, water, and wastewater utility infrastructure necessary to construct the plant. In the first five years following the COD, the rates for City utility services are proposed to be discounted to reflect the capital investment cost being absorbed by empirical. Those rates are outlined in the Development Agreement and described below.
Electrical Service:
Estimated electrical system improvements costs to be paid to the City by the Developer is $1,004,352.18. With the following five (5) year rate structure.
1. Electrical Service Rates (Applicable for 5 – year period beginning on Commercial Operation Date:
a. Base charge of $200.00 per month.
b. Demand charge: $10.00 per kW, maximum demand of 12,000kW; provided, if the maximum recorded demand exceeds 12,000kW for three (3) consecutive months the Demand Charge will increase to $13.00 per kW for the next twelve (12) consecutive months. If the maximum recorded Demand is 12,000 kW or less for twelve (12) consecutive months, the Demand rate will be reduced to $10.00 per kW.
c. On Peak 7:01 AM to 9:00 PM energy rate of $0.0570 per kWh
Off Peak 9:01 PM to 7:00 AM energy rate of $0.0315 per kWh
Water Service:
Estimated water system improvements costs to be paid to the City by the Developer is $675,350.00. City agrees to provide up to 800,000 gallons per day for the first two (2) years of operation, and a maximum of 1,200,000 gallons per day if required after the initial two (2) year period. With the following five (5) year rate structure.
1. Water Service Rates (Applicable for a 5 –year period beginning on the Commercial Operation Date):
a. Base Charge of $175.00 per month.
b. $2.47 per 1,000 gallons.
Wastewater Service:
Estimated wastewater system improvements costs to be paid to the City by the Developer is $2,552,000.00. The Developer is allowed to deliver a maximum of 400,000 gallons per day of pre-treated wastewater to the City’s wastewater treatment plant. Should the flow exceed 400,000 gallons per day for five days in any 30 day time frame a fee of $5,000 per day will be levied for each day in excess of five days that the flow of pre-treated wastewater exceeds 400,000 gallons per day.
1. Wastewater Service Rates - (Applicable for 5-year period starting on Commercial Operation Date):
a. Base charge of $14.50 per month.
b. All Domestic Wastewater Flow and Pre-Treated Process Wastewater Flow from Project. $2.00 per 1,000 gallons of flow and applicable extra strength charges will be applied in accordance with City Ordinances in effect at the time of billing.
The Developer and the City agree that in January of the fourth (4th) year after the COD the Parties will negotiate new rates and terms of service for electric, water and wastewater utility service that will begin in the sixth (6th) year following the COD and continuing as long as agreed by the parties.