12/30/2008 Resolutions 2008-361RESOLUTION 2008-361
WHEREAS, Northwestern Corporation, (Northwestern) filed an application to
change rates for natural gas in 2007 and during negotiations with Grand Island, Nebraska regarding
the proposed rate change agreed to collect a surcharge for economic development to the City of
Grand Island, Nebraska in the amount of $86,000.00 annually which surcharge was authorized and
approved by Council on November 13, 2007; and
WHEREAS, as a result of the 2007 rate settlement, the previous policy for use and
distribution of economic development funds under the 1999 gas rate agreement no longer applies; and
it has been determined that future use and disbursement of the surcharge funds is restricted by State
Statute and the Nebraska Constitution; and
WHEREAS, the City of Grand Island, Nebraska under Nebraska Revised Statutes
Section 13-315 may expend annually funds: for the purpose of encouraging immigration, new
industries, and investment; to conduct and carry on a publicity campaign; or to exploit and
advertise the various agricultural, horticultural, manufacturing, commercial, and other resources,
including utility services of the city. Such sum maybe expended directly by the city or maybe
paid to the Chamber of Commerce or other commercial organization or a similar county
organization ormulti-county organization or local development corporation; and
WHEREAS, The Grand Island Economic Development Corporation has made a
request in the amount of $86,000 in NW Energy surcharge funds to be used for new gas
equipment for Nova-Tech, Inc. and for debt service associated with improvements to the Platte
Valley Industrial Park; and
WHEREAS, the Nebraska Constitution and State Statutes provide that the most
populous city within the county where the State Fair is located (Grand Island) may contribute 10%
matching funds for operation and capital expenditures for the State Fair; and
WHEREAS, as host City for the Nebraska State Fair, the City of Grand Island
contemplates expenses associated with ownership of a building on the site of the State Fair as well as
expenses associated with supporting infrastructure off-site and possible expenses associated with the
relocation of sports facilities presently located on the State Fair site; and
WHEREAS, the Nebraska State Fair, if located in Grand Island, would promote
economic development and the purposes enumerated in Section 13-315,
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF
THE CITY OF GRAND ISLAND, NEBRASKA, that the first $86,000 received through the natural
gas economic development surcharge approved November 13, 2007 be paid to the Grand Island Area
Economic Development Corporation to be used for the purposes enumerated under Nebraska
Revised Statutes Section 13-315 and thereafter the funds received by the City of Grand Island,
Nebraska through the natural gas economic development surcharge to be used for any ofthe expenses
Approved as to Form • ~'' ~ 1~
December 24, 2008 •'-CityA orney
enumerated above in such amounts as the Council may determine from time to time.
Adopted by the City Council of the City of Grand Island, Nebraska on December 30, 2008.
Robert Meyer, Pr ent
Attest:
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RaNae Edwards, City Clerk
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Approved as to Form • .~ ~~ ~-_.~
December 24, 2008 • City Attorney