The Town of Bow Island’s franchise agreement with Fortis as well as considerations for lowering their loan payment for the Airport Industrial Park were among the items on council’s Sept. 26 agenda.
Fortis franchise agreement
Council voted in favour of keeping Bow Island’s franchise fee at seven percent at their Sept. 26 meeting after receiving a proposal from Fortis that the fee be raised.
The Town has kept the franchise fee at seven percent for the past 14 years, ever since they entered into an agreement with Fortis in 2002.
Bow Island, and other municipal Fortis customers have the opportunity each year to raise the fee; however, Bow Island mayor Gordon Reynolds said that if they did raise the fee, the cost would be passed onto the customer.
Reynolds also noted that Bow Island’s Fortis franchise fees are within the lower end of the norm in the province.
Airport Industrial Park
A recommendation to lower the Town’s payment for Airport Industrial Park from $155,000 to $110,000 was carried. The move comes after being contacted by ATB Financial about lowering the payment because the Town did not have to access the full $1,300,000 allotted for the project as costs came in lower than anticipated. The Town had acquired a $1.3-million loan from ATB Financial for the project.
Council voted in favor of the recommendation.