Written by Peter McIntyre Wednesday, 28 July 2010 09:43 107.5 KISSFM:
The city of Vernon is giving one of its biggest businesses a break. Okanagan Spring Brewery will have its sewer (biological oxygen demand) surcharge cut by 50 percent until the end of 2012. Mayor Wayne Lippert says the company --which is looking to expand--will be encouraged to use the savings to investigate new pre-treatment methods for its waste-water to mitigate the impact on the city's water reclamation centre. "There will be a bond put in place so that if they don't do that, we will regain those funds, so we're not giving anything up, it's just setting it aside and giving them encouragement to pre-treat the BOD's." Lippert says it's a way to work with the growing brewery, and to keep them in the city.
Councillor Bob Spiers was opposed, saying it sets a precedent, that could cause sewer rates to rise. "We have a fees and schedule bylaw, and not paying the whole fee takes it out of the hands of the ratepayers, and causes the sewer rates to go up." Spiers says the 50 percent reduction will have an estimated impact to the city's general revenue of $125,000 a year, noting the fees vary considerably from quarter to quarter.
The brewery, which is owned by Sapporo Breweries of Japan, has undergone several expansions since opening in 1985. It produces a variety of Okanagan Spring, Sleeman's and value brands such as Pabst Blue Ribbon and Old Milwaukee. According to a city staff report, it's annual payroll is over $6.5 million a year, and OSB spends an additional $2.2 million on capital expenditures, and $2 million on replacement parts, repairs and maintenance primarily spent local. OSB informed the city in 2008, the brewery was reaching maximum production capacity, and since then, it has been outsourcing a portion of their production. OSB is reviewing options for a major expansion or facility relocation, which could be in the Lower Mainland to reduce transport costs.
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