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Campari America, the parent company of Wild Turkey Distillery, received a discount from the city for its water usage through a new economic development rate contract approved by the council.
The city council voted 5-0 to move forward with an economic development rate contract between the city of Lawrenceburg and Skyy Spirits, LLC and Campari America, owners of the Wild Turkey Distillery.
Council member Larry Giles was absent during the Nov. 11 council meeting.
Once the distillery has reached more than 7.56 million gallons of water a month, a series of discounts given by the city through the economic development rate will kick in for all city water purchased and used by Wild Turkey.
Terms of the five-year contract stipulate that if the distillery meets or exceeds 7.56 million in volume, the first 2 million gallons will cost $3.30 per 1,000 gallons, and decrease by about 30 cents per each 2 million gallons up to 8 million.
Water usage that reaches more than 8 million gallons will cost $2.25 per 1,000 gallons.
Should Wild Turkey fall below the economic development rate’s required base volume usage of 7.56 million gallons, another water rate will be applied.
The economic development rate is directly tied to bringing jobs to the city, Mayor Edwinna Baker said.
As part of the agreement, Wild Turkey must produce a minimum of 40 additional jobs or 4 jobs per 1 million gallons of average monthly water use. Those positions must involve services that are physically performed with city water’s service area, according to the economic development rate agreement.
Wild Turkey Master Distiller Jimmy Russell and Plant Manager Rick Robinson were in attendance at Monday’s night meeting.
Robinson thanked the council and said the economic development rate was a “bold move” on the part of the city to attract industry to Lawrenceburg.
“A more competitive water rate helps us be more competitive in the industry,” Robinson said.
An economic development rate could be applied to any industry or business within the city of Lawrenceburg that purchases city water, Baker said.
Wild Turkey is eligible for a one extension of its economic development rate, and such an extension can only last for another five years, according to contract documents.
The available excess capacity of the Lawrenceburg water treatment plant cannot fall below 20 percent during the life of the economic development rate contract, according to documents.
City council notebook
Council schedules meeting
to discuss Alcohol Beverage Laws
The city council is scheduled to meet Nov. 20 at 3:30 p.m. to discuss the Alcohol Beverage Control law passed by the state earlier this year, according to City Clerk Robbie Hume.
The new state ABC laws resulting from the passage of Senate Bill 13 have been in effect since June 25, and the city will need to make changes to reflect differences in the licensing procedures.
Council approves second reading
of KU, Bluegrass Energy franchises
The city council unanimously approved the second reading of two ordinances and two resolutions to enter into franchise agreements with Kentucky Utilities and Bluegrass Energy.
According to the franchise agreement, the city of Lawrenceburg would receive an annual 3 percent of gross receipts from each electric company’s sale of electricity to customers, the same percentage of receipts the city received in its previous franchise agreements with KU and Bluegrass Energy.
The council unanimously approved an ordinance Sept. 4 to accept bids from all electric companies that sell electric energy in the city. First reading for both KU and Bluegrass Energy were approved in October.
The new franchise agreement, which was hammered out with the input of Kentucky Utilities and its legal team, will be a 10-year contract with a 45-day period for electric companies to terminate services with the city.
Lighting of the Green,
Christmas parade dates set
The city’s annual Remembrance and Lighting of the Green will be held Dec. 6 at 6 p.m., Mayor Edwinna Baker announced Monday at the November city council meeting.
The annual Christmas parade will be held Dec. 7 at 5 p.m., Baker said.