Fort Wayne Municipal Electric Utility lease agreement: fact sheet

              Fort.\Vayne 11unicipal Electric Utility Lease AgreelYlcnt
City of Fort Wayne, Lessor
Indiana & Michigan Electric COlnpany, Lessee
FACT SHEET: March 11, 1974
Criteria: The ground rules given to negotiators regarding the agreelnent Vlere
as follows:
1. The agreement must be a lease not a sale.
2. The agreement must guarantee standby enlergency electric capacity
to the citizens of Fort Wayne.
3. All employees of the Inunicipal electric utility must be provided
cOlnparable employn1ent in the Fort Wayne area with equal or better ,I ~
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benefits. . -<3\,-,0
4. The agreement must be submitted to a public referendum. ,;,:~~"'cI'
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5. The City lllust receive a favorable rental payment. ~<t~·"V
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Criteria Satisfied: \.~
1. Lease: The agreement calls for a 35-year lease ternl with an option
to rene\v for an additional 15-year lease term for a total possible
term of 50 years.
2. Standby Emergency Facilities: The Fourth Street generating turbine
unit will be maintained as an emergency standby service facility.
Furthermore, I & M will install at its own cost the necessary equip-ment
to Inaintain en1ergency standby service to the \vater filtration
plant and the sewage treatment plant.