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City approves 25-year utility and service agreements with Redding Rancheria, including $3.25 million upfront payment
Summary
The City of Redding authorized the mayor to sign a 25-year master services and distribution/utility agreement with the Redding Rancheria, accepting a $3.25 million upfront payment described in the contract as a payment in lieu of taxes and an annual $100,000 service fee.
The City of Redding authorized the mayor to sign a 25-year master services agreement and a distribution/utility service agreement with the Redding Rancheria, and determined the action exempt from review under the California Environmental Quality Act. The council approved the agreements by voice vote with all members present voting in favor.
The agreements package includes a $3,250,000 upfront payment characterized in the contract as a “payment in lieu of taxes,” a roughly $600,000 connection fee tied to development, and an annual $100,000 service-impact payment that staff said would be paid quarterly and would end if the Rancheria’s operations moved to the Strawberry Fields development. City staff said the…
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