The most recent step in the decade-long process is an agreement between the city, developers and the Board of Light & Power regarding electricity infrastructure relocation costs.
“What it does is it affirms the BLP is willing to apply net power revenues to pay for all of the electric power infrastructure at Grand Landing,” City Manager Pat McGinnis explained. “The (city’s) Brownfield Board approved it Monday afternoon and City Council approved it (that night).”
A compromise was made to allow future net power revenues by the BLP to pay for relocation of power lines on the Grand Landing property.
“It was an old multi-use area, so there was all kinds of stuff overhead,” McGinnis said of the north end site.
To make way for new development several years ago, all of the existing electrical lines were relocated or buried. The total cost of the work was about $1.6 million.
“The BLP would take what it costs to produce the power, and the net would go toward paying off the bond,” McGinnis said. “The BLP was selling zero kilowatt-hours before (development). That (new) revenue is partially used to pay off the bonds.”
The agreement that’s in place doesn’t kick in payments for a couple of years.
“They’re taking a break in 2014 and 2015,” McGinnis said. “They’ll start back up in 2016.”
These payments will go from 2016 through 2019, and it’s expected that planned investment and power use on the site will retire 100 percent of the outstanding obligation during that time period.
Read the complete story in Saturday’s print or e-edition of the Grand Haven Tribune.