TVA/MLGW Question Likely Biggest in Utility's History

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TVA/MLGW Question Likely Biggest in Utility's History Public Records & Notices View a complete day’s public records and notices at memphisdailynews.com. www.chandlerreports.com Friday, February 21, 2020 MemphisDailyNews.com Vol. 135 | No. 30 Rack–50¢/Delivery–39¢ Inventory of old projects could ease some of city’s budget tension BILL DRIES With another city budget sea- projects and the dollar amounts another project or the project, for members not to expect a windfall. Courtesy of The Daily Memphian son coming in the spring, the ad- should be completed in the next whatever reason, never got off the “Some of the projects range One of the basic political ministration of Mayor Jim Strick- month, with the results present- ground,” he said. “There is still from several hundred thousand truths of getting something fund- land is undertaking an inventory ed to the City Council ahead of an expectation from our bond- dollars to several million dollars,” ed at City Hall is the certain of some of those forgotten projects Strickland’s budget proposal. rating agencies that if the project he said later. “At the outside, you knowledge that if it’s not too ex- that could relieve some of the po- “In almost every area of the is on the books, eventually we are might see a project of several mil- pensive, there is probably money litical friction. city, you have projects that have going to borrow the money for it. lion dollars that never got off the that can be cobbled together from City Chief Operating Officer either been executed and there’s It’s factored into our credit rating ground. On the other side, you may several other projects or budget Doug McGowen says the roundup money left that we just have not already.” line items. of those capital or construction ever scooped it up and used it for McGowen warned council BUDGET CONTINUED ON P3 “We’ll have to assess risk,” Young said, referring to earlier estimates in a set of four reports from differ- Young: TVA/MLGW question ent sources that are based largely, if not completely, on rates. “When you hear the savings that are anticipated – $300 million, $400 million annually – those are likely biggest in utility’s history not risk-adjusted savings,” he said. “What we have to do is make sure we are looking at what risks are associated with it.” The decision to be made first by the MLGW board and then ratified by the Memphis City Council could end an 80-year relationship between the utility and the federal agency. “I’m not sure that MLGW has had a more signifi- cant decision in its history than what we will be doing in the next few months regarding our power supply,” Young said in his speech. City Council member Jeff Warren had prepared a resolution this month that would have started the RFP process with nonbinding electric power rate quotes from other companies. He delayed the move to go outside MLGW, however, saying it was ready to be voted on by the council if it doesn’t happen otherwise. Warren is among those who think cheaper whole- sale electric rates are the most important factor, if not the only factor. “I think we need to look at how much our citizens are paying and reliability,” he said last month on The Daily Memphian Politics Podcast. “If we can get a better service at less cost without having to build a plant or be responsible for a plant, why wouldn’t we do that.” Fellow council member J.B. Smiley says the lower rate quotes from competitors beg the question. “We’ve been waiting too long and we’ve been knowing about these proposed savings for a very long time,” he said. MLGW president and CEO J.T. Young delivers the first State of MLGW address Wednesday at the utility’s Downtown Memphis With a 7.2% rate hike across gas, water and elec- headquarters. (Patrick Lantrip/Courtesy of The Daily Memphian) tric a done deal, Young said the $1 billion five-year infrastructure overhaul of the utility the rate hike BILL DRIES Valley Authority as its electric power “Whatever the results are, that’s partially funds is beginning with an increase in tree Courtesy of The Daily Memphian supplier. where we will go,” Young said Wednesday trimming. That will be followed by new equipment Memphis Light, Gas and Water Divi- And MLGW president and CEO J.T. after delivering his first “State of MLGW” to replace old equipment and then looking at new sion is moving toward a late spring com- Young confirmed Wednesday, Feb. 19, speech to the utility’s board. water wells to replace wells long past their recom- pletion date for the study that will play a request for proposal – or RFP – from But the bottom line won’t be as sim- mended life. a large part in determining whether the competing electric power wholesalers ple as quotes of lower rates from TVA’s city-owned utility keeps the Tennessee will likely follow. rivals. MLGW CONTINUED ON P3 INSIDE Public Records ................ 4 Public Notices ............... 12 memphisdailynews.com chandlerreports.com Marriage licenses are unavailable ©2020 The Daily News Publishing Company A division of The Daily News Publishing Company while Shelby County Clerk’s O ce Memphis, Tennessee The standard for premium real estate Established 1886 • 135th year information since 1968 reviews internal policies for its digital Call 901.523.1561 to subscribe Call 901.458.6419 for more information platforms. Page 2 MemphisDailyNews.com Friday, February 21, 2020 a place to take a shower in,” Day Distressed, crime-prone motels said. The apartment layout A model room in the Bantam Airways contains a two-person get new life as affordable housing sofa and coffee table in the front area. A new, half-wall partitions the front from the back half of the TOM BAILEY room, which contains a small bed Courtesy of The Daily Memphian and closet. Nearby drug-dealing and oth- The typical hotel bathroom er crime drove Ricky Boyce last suite still has the small bath- summer from his former apart- room with a commode and tub ment on American Way to the new with shower, but the vanity area Bantam Airways Apartments near has been converted into a small Memphis International Airport. kitchen. A kitchen sink, counter, Living on disability income, cabinets, full-size refrigerator, Boyce can make ends meet for the full-size oven and built-in mi- $650 monthly rent that includes crowave fill the vanity area now. utilities and satellite TV but also The model room’s new, partial 24/7 security, a resident manager wall is an experiment that will and a sense of community. not be carried out in the rest of “It’s peace and quiet,” Boyce the units, Brian McMillan, One said standing outside his studio Stop Housing’s vice president for apartment converted from a hotel acquisitions, said during a tour room at the former Knights Inn at on Tuesday. 2949 Airways. Residents don’t like the Living next door is Lawanda partition. Thomas. She also arrived at Ban- “They said, ‘You are defining tam Airways Apartments last my space,’” McMillan said. “We summer needing an affordable want to give the people what they place near work after a family con- Brian McMillan, One Stop Housing’s vice president for acquisitions, shows off the model unit at Bantam Airways want. (The half-wall) looks nice flict left her searching for a home. Apartments, a former motel. (Patrick Lantrip/Courtesy of The Daily Memphian) but it tends to break the space up “I love it,” she said of her new too much.” residence. “There’s a sense of se- from poverty, according to com- another motel into apartments. Springbrook Apartments. The rooms can accommodate curity. The parking isn’t so bad pany documents and Vengroff. The former Loyalty Inn at 1360 One Stop Housing brands the two people, maybe three if there’s and it’s convenient to my job so I Vengroff’s late father, Harvey Springbrook, near Brooks and Memphis apartments as “Bantam a child, he said. save gas.” Vengroff, started One Stop Hous- Elvis Presley, was so crime-rid- Airways” and “Bantam Spring- Thomas works for a logistics ing about 35 years ago after real- den that in 2018 Environmental brook” because Vengroff, a box- More in Memphis company just six miles away. izing employees of his credit and Court ordered the hotel to in- ing fan, wants the company to Meanwhile, One Stop Hous- Boyce and Thomas represent collections company struggled to crease security and give police “stick up for the little guy.” The ing plans to expand its presence two of the three types of residents find affordable housing near work. more access. name also acknowledges that in Memphis. that a Florida-based company Now, One Stop Housing has The Loyalty Inn had drawn the studio apartments are small. “Once we decided to buy the called One Stop Housing expects about 2,000 apartment units un- more than 500 police calls over two in Memphis, we want to to serve in Memphis. der management, including con- the three previous years. District The renovation make Memphis a new hub for us,” “I’d say about one-third of our verted hotels in the Sarasota area, Attorney General Amy Weirich At each site, One Stop Hous- Vengroff said. If the next acqui- residents would be transitional, Vengroff said. called the hotel an “uncontrolled ing has completed quick, “soft” sitions are not in Memphis they a third are retirees, veterans, The incomes of One Stop danger and nuisance.” renovation/conversions of the will be close.
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