By a vote of four to one, the Webster City City Council Monday evening approved the second reading of the proposed ordinance for an increase in electric rates. The increase was made possible in part due to the excessive use of electricity during this past summer. The increase will be approximately 20% or an increase of $3.80. For the past two years, the city of Webster City has passed along lower electric rate increases than those that the City received from their electric wholesale supplier. The city did this in an effort to hold prices down for its customers. Council member Linda Conaway voted no on the proposed electric rate increase. The third and final reading will be held at the November 5th council session.
In another matter, the Webster City City Council approved a resolution to enter into a contract with Cropland Containers,Incorporated of Webster City for a Performance Grant to Support Economic Development and Job Creation. With this grant, it will mean the creation of 18 new jobs. Webster City Economic Development director David Toyer told the council that he has worked with Cropland Containers, Incorporated as they seek to expand their business operations at 2001 Marvel Street in Webster City. Last month Webster City Economic Development receive an application for incentives from Cropland Containers requesting a grant in support of their expansion project. Cropland Containers started in 2009 in Webster City.The company is associated with Stainlez,Incorproated of Blaine, Minnesota which was formed in 2001. Both companies are owned by Brian Bilyeu and Lavonne Parker. As their existing lease was coming up on its expiration, Cropland Containers began to review its space operations including the opportunity to relocate a portion of its business from Minnesota to Webster City. Cropland Containers is in the process of acquiring two facilities in Webster City. Closing on the real estate is currently anticipated to occur in late October or early November.The hiring of the 18 new positions will be performed locally. The entire total project costs for building acquisitions, renovations, machinery and equipment purchase and all other identified and related costs are projected at approximately $1,775,000. The annual payroll for the jobs to be created is estimated at $354,000 when all 18 jobs have been filled. Cropland Containers requested a $72,000 performance grant from the city.