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Council approves AEP CRA amendments to allow pilot payments amid workforce changes
Summary
Council adopted two resolutions (R-57-2024 and R-58-2024) to amend Community Reinvestment Area agreements with American Electric Power to permit payment-in-lieu (pilot) measures for projected shortfalls in employment/payroll benchmarks; staff said the approach preserves revenue while allowing companies to cure underperformance.
Economic development staff presented two companion resolutions (R-57-2024 and R-58-2024) amending Community Reinvestment Area (CRA) agreements with American Electric Power (AEP). The amendments would allow pilot payments—payments in lieu of tax benefits—to cover projected shortfalls tied to post-pandemic workplace changes that reduced employment and payroll at some AEP facilities.
Staff said the data center agreement was benchmarked on the creation of 20 jobs and the transmission-office agreement was benchmarked on 550–650 jobs and an estimated $40 million investment; the transmission office payroll recently fell short by about $103,282 against its $58 million payroll benchmark. The proposed pilot payment would be calculated as the difference in income-tax revenue generated versus the benchmark and is intended to preserve the city’s expected revenue stream while allowing the company to retain the incentive if it makes the payment.
Council questioned mechanics of the pilot calculation and whether staff had verified companywide work-from-home practices across AEP locations; staff said they had met with AEP and that quarterly meetings will continue to monitor the metrics. Both resolutions passed unanimously, 7–0.
Outcome: Resolutions R-57-2024 and R-58-2024 adopted (7 yes, 0 no).
