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Council pauses on Dixie Power purchase after attorney flags contract language
Summary
Kanosh officials said they were advised not to sign a proposed contract to sell the town's northern power line to Dixie Power because it included ongoing liabilities; the sale appears unlikely in the near term.
Kanosh town officials told the council on Aug. 13 that a proposed transaction to sell a stretch of the town's power line north of Kanosh to Dixie Power is effectively off the table until Dixie revises contract language.
The town's ownership covers a line north to Patton Road. Dixie Power had proposed buying that stretch; council members said a price of about $100,000 had been discussed at one point, but the draft contract contained clauses that would leave the town liable for future obligations. Town counsel recommended the council not sign the draft agreement, and staff relayed that advice to Dixie. Council members said Dixie was again reviewing whether it wanted to proceed on those terms and that the item will be removed from the agenda until Dixie responds.
Council members said the potential sale would have generated revenue the town could use for utilities and infrastructure, but they declined to sign a bill of sale that included open future liabilities. The council did not take a formal vote on a sale during the meeting; staff said they would update the council when Dixie responds.
Public records and the council packet show the town has previously discussed a roughly $100,000 valuation for that segment, but the council emphasized that the figures and the contract language must be acceptable to town counsel before any sale proceeds.
Council members requested staff keep the council informed and to remove the item from the active agenda until Dixie follows up.
