Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO TEMPORARILY EXTEND THE TERM OF THE PREVIOUSLY AUTHORIZED AMENDMENT TO THE DEVELOPMENT AGREEMENT WITH THE ALLSTATE INSURANCE COMPANY.
Brief Description: In 2019 City Council approved the third amendment to the 2012 development agreement with the Allstate Insurance Company located on Executive Parkway in Hudson Ohio. The third amendment provided for a two (2) year economic development electric rate extension that commenced on June 30, 2019 and is set to terminate on July 1, 2021. Staff recommends a temporary extension of the termination date of the third amendment until September 1, 2021 to give City Council ample time to review and discuss the 2021 HPP Rate and Cost of Service Study.
Body
Legislative History
Resolution No. 12-104 authorizing a development agreement with Allstate Insurance Company for 2012-2015.
Resolution No. 15-74 authorizing the extension of development agreement and establishing the current "E" rate for the Allstate Insurance Company for 2015-2017 (1st amendment).
Resolution No. 17-48 authorizing the second extension of the development agreement and establishing the current "E" rate for the Allstate Insurance Company for 2017-2019 (2nd Amendment).
Resolution No. 19-66 authorizing the third extension of the development agreement and establishing the current "E" rate for the Allstate Insurance Company for 2019-2021 (3rd Amendment).
Purpose & Explanation
The current "E" electric rate agreement with the Allstate Insurance Company is a flat rate of $0.075 per kWh. The term of the current rate agreement extension will expire on July 1, 2021. Typically, at the closing of each "E" rate extension period, staff reviews the terms and conditions of the current agreement with Allstate representatives to determine if the terms and conditions continue to be met. Staff subsequently reports back to City Council with a review summary and recommendation.
Hudson Public Power is currently conducting the 5-y...
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