Owensboro city commissioners gave their approval Tuesday night to plans that will allow Big Rivers Electric Corp. to move to downtown Owensboro.
The municipal order commissioners approved authorizes the city to sell Big Rivers city-owned land on Second Street, then refund the land’s purchase price back to the energy utility. City Manager Nate Pagan said the estimated value of the land is $2.091 million.
The city will also give Big Rivers a 50% rebate on its general fund occupational taxes for a period of 10 years.
“This is a big deal,” Mayor Tom Watson told commissioners at Tuesday night’s city commission meeting, which was conducted via teleconference. “We’re very lucky we had the opportunity to land this.”
Late last year, Big Rivers officials announced their intention to move company headquarters from Henderson to Owensboro. The move will bring about 120 jobs to downtown west of Frederica Street, in the 700 block of West Second Street, just west of the Boardwalk Pipeline Partners headquarters.
The land where the $10 million Big Rivers office will be built is on property that contained the former Royce restaurant.
Pagan said the city owned 85% of the property, while the county owned 15%.
As part of the agreement, the city is acquiring the county-owned portion of the land, Pagan said. The county previously approved the land transfer, he said.
“Our intention was to locate a headquarters there,” Pagan said before Tuesday’s meeting. “Our plan seems to have worked.”
The agreement requires Big Rivers to guarantee it will keep its headquarters in Owensboro for 40 years, Pagan said.
Officials said previously Big Rivers headquarters has an annual payroll of $14 million. Construction of the facility is expected to take 18 to 24 months.
James Mayse, 270-691-7303, email@example.com, Twitter: @JamesMayse