It looks like the City is giving away your money to big corporations again. Check out this agenda item on tomorrows City Council agenda.
In addition to very favorable electric rates, the City is prepared to give away a portion of the City's sales taxes and property taxes.
Its time to ask your council person how much this is estimated to cost. Don't take "it depends" for an answer! Make them give you a credible estimate.
City of Georgetown, Texas
City Council Regular Meeting
November 26, 2019
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SUBJECT:
Consideration and possible action to approve an economic development retention agreement with Citigroup Technology, Inc. -- David Morgan, City Manager |
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ITEM SUMMARY:
Citigroup Technology, Inc. opened a 300,000-square-foot data center in Georgetown in 2008 and has since become one of the most significant energy consumers in the City. The previous economic development agreement with them expired last year, and a new agreement is necessary to retain the current operations and encourage capacity growth within the existing facility.
Retention Incentive: The all-inclusive rate of $0.062675 per kWh will be applied for energy used at the property beginning November 1, 2019. Following a May 1, 2020 compliance certification, the rate will be reduced to $0.053170 per kWh, and will be reduced a final time to $0.033465 following a compliance certification on November 1, 2020. The requirements to qualify for these rates are to maintain a 12-month average of a minimum of (i) 92% load factor for electricity for the Property; (ii) 6,000 kW of demand usage of electricity for the Property; and (iii) and a minimum of 4,000,000 kWhs of usage of electricity for the Property calculated by City for the prior 12-month period prior to each May 1 and November 1 of each calendar year during the five-year eligibility period.
If Citigroup falls out of compliance with any of the minimum qualifications for the retention or expansion incentive, all incentives would be forfeited for the following 6-month period and an all-inclusive rate of $0.076920 per kWh would be applied until the next compliance certification showing they have met the requirements.
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FINANCIAL IMPACT:
Total financial impact would depend on final usage by Citigroup. |
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SUBMITTED BY:
David Morgan, City Manager |
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