The official groundbreaking for the 47,000-square-foot new headquarters of Big Rivers Electric Corporation in downtown Owensboro is scheduled for Jan. 4. The project, which has an estimated $10.8 million construction cost, is expected to be completed in late 2022. The City of Owensboro will provide incentives to help offset some of the cost, including a full rebate of the downtown property purchase price.
The building will be located at 700 W. 2nd Street, immediately west of Boardwalk Pipeline Partners. The first four floors will be the same size, while a fifth floor won’t be as wide or long.
The new facility will replace the cooperative’s current Headquarters complex. The new Owensboro construction will consist of a four-story building and 129 parking spots, with the building’s design “incorporating more modern meeting and collaboration spaces that match future utility needs,” according to a Thursday release.
In February 2021, Owensboro City Commissioners approved an agreement that authorizes financial incentives from the City and allows Big Rivers to take over four properties located along West 2nd and 3rd streets for its new corporate office.
Financial incentives from the City include a rebate of the purchase prices of real estate located at 700, 710, and 711 W. 2nd Street along with 711 W. 3rd Street.
The City already owned a portion of the block before acquiring the remaining properties in 2019, City Manager Nate Pagan previously said. The block was purchased with the intent to locate a “headquarters-type project” on the site.
Pagan said the incentive includes selling the property to Big Rivers for the value as assessed by the Property Valuation Administrator, and subsequently rebating the purchase price back to the company, as well as a 10-year 50% general fund occupational tax rebate.
The MOA requires Big Rivers to retain its occupational headquarters in downtown Owensboro for 40 years, Pagan said.
In an order signed on Dec. 7, 2021, the Kentucky Public Service Commission (KPSC) approved Big Rivers’ plans to begin construction at 710 W. 2nd Street. According to company officials, the new facility will be approximately 25% smaller than Big Rivers’ current headquarters. Some employees will move into a new Transmission Operations Center also planned for Owensboro, subject to KPSC approval.
Big Rivers officials first announced they planned to move their headquarters to Owensboro in late November 2020. Officials said at the time that the headquarters will create an annual economic impact of over $100 million for the Greater Owensboro region.
The current headquarters operation employs 120 people. Big Rivers President and CEO Bob Berry said in July 2021 that employees had already made plans to relocate — contributing to the estimated $100 million impact.
Berry said that number came from the Greater Owensboro Economic Development Corporation and includes a variety of factors including property and occupational taxes as well as a payroll of nearly $15 million per year. It also includes those employees doing personal business or shopping and eating at local restaurants.
The move to Owensboro will position Big Rivers in a central location to reach all of its 22-county service territory, its three member-owner cooperatives, and key larger industrial customers. The member cooperatives are Jackson Purchase Energy Corporation, Kenergy Corporation, and Meade County Rural Electric Cooperative Corporation. The three member-owners of Big Rivers serve more than 118,000 members.
