Saturday, April 08, 2017

San Angelo's Town & Country to Stripes to ?


San Angelo Live teased readers with the prospect of 7-Eleven taking over the town through a buyout of Stripes convenience stores. 

Town and Country Food Stores sold out to Susser Corporation in 2007.  New owners re-branded convenience stores with the Stripes name.

Susser monetized the company by selling a portion to Wellspring Capital Management and planned to spin off its petroleum supply business in 2012.  Susser sold all its divisions to Sunoco LP/Energy Transfer in 2014.  

A new moniker is on the horizon as Sunoco plans to sell separately San Angelo's Stripes stores, along with 200 odd stores that didn't make the cut for 7-Eleven ownership.  Two days ago the company reported:.

Assets being sold to 7-Eleven include approximately 1,110 convenience stores in 19 geographic regions primarily along the East Coast and in Texas, and the associated trademarks and intellectual property of the Laredo Taco Company and Stripes.  As part of the transaction, SUN will enter into a 15-year take-or-pay fuel supply agreement with a 7-Eleven subsidiary under which SUN will supply approximately 2.2 billion gallons of fuel annually.  This supply agreement will have guaranteed annual payments to SUN, provides that 7-Eleven will continue to use the Sunoco brand at currently branded Sunoco stores and includes committed growth in future periods.

Approximately 200 convenience stores in North and West Texas, New Mexico and Oklahoma will be sold in a separate process
San Angelo's Stripes stores will learn of their new owner before the end of the year.  I wonder if former Town and Country CEO Alvin New will pull together an investment group to bid on the 207 stores 7-Eleven did not buy.  New is behind the Jack's convenience stores in San Angelo.  Might Stripes get jack'd?

Wednesday, April 05, 2017

Water Department Needs $25 Collection Fee


San Angelo City Council talked water finances without referring to the city's most recent comprehensive annual financial report (CAFR).  The issue concerned the $25 late fee charged by the Water Department for late bills.  City Councilwoman and Mayoral Candidate Charlotte Farmer said the late fee was intended to help with conservation.  Council incentivized citizens to conserve years ago with a 45% rate hike.  It worked amazingly well.   


The city doubled down on rate increases with its five year plan to hike rates another 55%.  Money is flowing in.  The 2016 CAFR shows the city had $27.4 million in water and sewer fund investments (on page 31).  It also showed both the water and sewer funds had a great year.

Yes, the city is building reserves to fund future capital projects but it behooves council to recall that significant dollars are being generated that end up in a bucket different from the targeted 75 day cash position.  Could the city have hit the 75 day target if it did not put such a large amount, $9,744,418 into investments (page 33)?

Saturday, April 01, 2017

Council to Deliberate Lease for 1146 City Farm Road


San Angelo's City Council will take up a lease the city has for 1146 City Farm Road in Executive Session on Tuesday.  The Tom Green County Appraisal District shows this address to have 651 acres with no buildings or improvements.  A search of the city's website produced no results for this address.


Not far from this address is a lease the city negotiated with OE Renewables for a 143 acre solar energy production farm.


The city approved the OE Renewables lease in August 2014 and expanded the amount of property in May 2015.  That project is at least six months overdue and there's been no word from the City or City Council on its status.


The property leased to OE Renewables overlaps with a 2012 proposed lease between the city and Lucas Off Road Racing.  That $1 annual lease was for 100 acres in the City's Industrial Park.  That project never came to fruition.

It's not clear when or if citizens will learn the issues regarding 1146 City Farm Road.  Last month City Council took no action in Executive Session on the Spillman contract.  Later that day the city announced it was suing Spillman for $3.875 million.   One would think projected attorney's fees would total more than $50,000 and need City Council's approval to go forward with the Spillman lawsuit. 

I doubt 1146 City Farm Road has anything to do with Lucas Off Road Racing or OE Renewables Solar Farm.  It's too far away from property shown in prior proposals to City Council.  There's more to learn about the city's plans in this area.