(A) Purpose. The city will offer reduced natural gas costs to businesses that meet the listed qualifications. The purpose of this section is to use the city’s natural gas utility system to promote growth and improvements within our community’s businesses.
(B) Definitions. For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
MONTHLY SERVICE FEE. A monthly fee charged for future infrastructure including meters and pipeline.
RETAIL CHARGE. The cost the city charges basic maintenance.
WHOLESALE PRICE. The value of natural gas paid by the city.
(C) Requirements. The requirements to qualify for the economic incentive include:
(1) The business must be located in the city limits;
(2) The business shall submit proof of a state sales tax license;
(3) The business shall operate on a commercially zoned property; and
(4) The business must also meet the following qualifications:
(a) Be a new business to the community; or
(b) Be an existing business and make improvements that are valued at $30,000 or more. The $30,000 improvements may include the purchase of additional land and/or buildings. Improvements must include required building permits and proof of costs through receipts. The improvements must also include a business plan that shows increased square footage and/or a plan to increase customer base or staff.
(D) Economic incentive schedule.
(1) The amount billed to the business through the incentive will include wholesale natural gas, monthly service fee and the retail cost as listed:
(a) Year 1: 0% retail cost;
(b) Year 2: 25% retail cost;
(c) Year 3: 50% retail cost;
(d) Year 4: 75% retail cost;
(e) Year 5: 75% retail cost; and
(f) Year 6: 100% retail cost.
(2) Once the project is complete, the incentive will start on the nearest date of January 1 or July 1. This helps for accounting purposes to have a uniform schedule.
(3) The City Council will review all applications for approval. The City Council can remove a business from the natural gas incentive if it fails to comply or maintain compliance with the requirements of division (C) above or if there is a failure to act in good faith with the requirements of division (C)(4)(b) above.
(Ord. 673, passed 10-11-2021)