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Downtown Small Business Attraction Utility Rate Program

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Business Attraction Utility RatesThe Downtown Small Business Attraction Utility Rate Program became effective on July 1, 2017. It offers a 25% reduction in energy and water bills for three years for new businesses that fit the U.S. Small Business Administration’s definition of a small business. Businesses must apply for the program within their first year of operation.

To begin your application process, send an email stating your interest to the Manager of Downtown Transformation, Jeff McVay (jeff.mcvay@mesaaz.gov) with your estimated first day of operation (if known). If your business is already operating, please attach proof of your first day of operation. Applications usually take three weeks or less to process.

Below are the eligibility and terms and conditions for participation in the program:

Eligibility

  1. Must be located inside the Central Business District and Town Center Redevelopment Area (CBD/TRA)
  2. Must have an average total minimum actual or projected annual energy consumption of twelve thousand (12,000) kilowatt-hours (kWh) for up to the most recent twelve-month period and a maximum of eight hundred thousand (800,000) kWh for up to the most recent twelve-month period AND ten (10) kgal and two-hundred (200) kgal for of water consumption actual or projected within the most recent twelve-month period.
  3. A single point of delivery within the CBD/TRA measured through one meter for the billing of each utility service
  4. Meets the definition of a small business as stated by the U.S. Small Business Administration
  5. Consists of a use consistent with Mesa’s adopted form-based code or in a commercial or industrial zoned area where the form-based code does not apply
  6. Employs the equivalent of at least two (2) full-time employee (FTE) positions (subject to verification through unemployment tax and wage reporting or comparable records). Customers must also be current on all utility bills and any other amounts owed the City.

Terms and Conditions

  1. Limited to three (3) consecutive years per eligible Customer.
  2. The Customer must sign a three-year agreement evidencing the commitment through the 3-year period to meeting the eligibility criteria, including promises to continue operating within the City of Mesa; to meet or increase their initial level of electric consumption; and to use reasonable efforts to increase the number of jobs that are part of their business operations within the City.
  3. Customers may apply for the small business utility rate only within their first year of operation.
  4. Customers may only participate once.
  5. Customers that do not maintain or increase their total average annual utility usage from their first year receiving the rate may be required to repay the City for the difference between this Schedule E3.6Dand the otherwise applicable City electric rate schedule.
  6. The City may terminate, suspend or modify the rate for active and/or future participants should it serve the interests of the City.
  7. Customers may be required to obtain a financial instrument satisfactory to the City that protects the City from a default under the agreement and from the accumulation of delinquent and deficient charges of a Customer served under this Rate Schedule.
  8. The customer becomes ineligible if it has less than two employees for a total of six months or more during any consecutive 12-month period.

U.S. Small Business Administration Size Standards