IBP, Inc. v. City of Council Bluffs

HABHAB, Judge.

In 1985, the plaintiff, IBP, Inc., developed a plan to reopen a meat packing plant in Council Bluffs with the City’s assistance. In May 1986, IBP and the City entered into an agreement for the City to provide a $100,000 grant to IBP for the plant and to treat the plant’s waste water at reduced rates. A provision of the agreement stated the rates would be fixed for a period of three years. After that period the rates would be subject to increase at the same percentage rate of increase as applied to all other users.

The City charges a base sewage rate which is to cover the cost of…