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The feasibility study to purchase the financially troubled private Wendover Gas Company by the City of West Wendover was suspended at least temporarily this week after research revealed that the City of Wendover, Utah has first dibs on the company’s property.
In 1995 shortly after Wendover Gas won approval to lay gas lines in West Wendover and began to move its base of operations from Wendover, Utah then Wendover, UT Mayor Brenda Morgan pushed through an ordinance that gave the town the right of ‘first refusal’ to buy the assets of the company should Wendover Gas ever fold.
Reportedly upset at the loss of tax revenue generated from the gas company, Morgan conditioned her city’s approval to the move on that issue.
Wendover Gas owner and the city of West Wendover agreed to the condition and now that condition may come back to haunt them.
Green appeared before the Wendover City Council Wednesday to request that the condition be waived. But although sympathetic to her plight Wendover, Utah may set some new conditions before they waive the old one.
According to Mayor Mike Crawford he would not be opposed to granting a waiver but would urge his council to consider asking for some guarantees that would control the price of propane charged to Wendover, Utah customers.
In Wednesday meeting the Wendover, Utah City Council put three conditions to granting a waiver.
a) Wendover, Utah would have right of purchase of the gas pipeline system running through town.
b) Wendover, Utah would still be able to assess franchise fees on who ever bought the gas company.
c) Wendover, Utah customers would be charged the lowest price charged to West Wendover customers.
“We think these are reasonable request and will protect the interests of Wendover,” Crawford said Wednesday. ‘We do not want to get into the gas business but we have to protect our residents and our businesses.
According to Crawford the reason behind the best possible price condition was that if West Wendover did but the gas company it could use the power of pricing to encourage growth in West Wendover at the expense of Wendover, Utah.
While the conditions may seem reasonable in Wendover, utah they may raise more than an eye brow in Wendover, Nevada. Nevada customers would b charged on a a sliding scale where the price they pay for gas is at lest partly determined by the volume of gas bought.
If Wendover, Utah residential customers are given the same price per gallon as a casino controversy is certain to ensue.
Already the purchase is controversial, just to get the feasibility study approved the council had to over ride the Mayor’s veto.
“As much as I feel sorry for Nancy (Wendover Gas owner Nancy Green), I can’t justify the city spending $2.4 million and get into the propane business, especially not when we have other suppliers coming to town.” Anderson said last week. “I know there is talk about hooking up to the (natural gas) pipeline but shouldn’t that also be a private business venture instead of the city?”
In that meeting the council voted to accept the appraisal numbers for the gas company and spend up to $18,000 for a feasibility study on whether the City of West Wendover could operate the financially distressed company for a profit.
According to Anderson the ‘high’ valuation for Wendover Gas was estimated to be $2.4 million.
An emergency meeting to override the veto was called for and the vote remained the same.
Why in the world would the City want to purchase the gas company. The cost is way to high plus arent cities suppose to be non-profit? Why should the non gas users in the city be burdoned with another tax hike to save a company we dont use? Let it go bankrupt then the utilities commision will step in. The people in Wendover will not be without gas. The residents of West Wendover need to think long and hard this election season. Hopefully you will put people in that doesnt want to raise our taxes to save a non profitable company.
If you really want to know what is going on, you should be involved in the City Council meetings. The Utilities Commission has already stepped in. As a result of that, by Court Order, the City of West Wendover is forced to take action, so that the people of West Wendover will not be without gas, as stated above.
If the gas company is allowed to go bankrupt, without pre-planning by the City, then yes, the gas company becomes a burden on everyone, whether they use it or not. But if the City does their due diligence before hand, then the gas company becomes a Utility within the City, and only the users are billed for their usage.
Either way, the City is forced, by court order, to take action. It’s not a matter of the City “wanting to purchase” the company.
Who you vote for this election season does make a difference in the outcome of this issue.
If you want to be paying for something you don’t use because someone prevented the City from doing “due diligence”, then re-elect the current mayor.
Otherwise, we need new leadership. And no, I am not running for any office.
Regardless of whether we use gas or not our taxes will go up to pay for this company. So its not a true statement when you say only the gas users will be billed, all West Wendover Residents will be affected. You say “due diligence” has Wendover Propane been advertised for sale? I havent saw anything in the paper or online. Maybe if Mrs Green hadnt been so gready, she could have lowered her price for the Casinos. If she would have kept those contracts in place her buisness would be thriving. I think the city of West Wendover has enough debt without taking on this Company.