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HomeMy WebLinkAbout002-02 BOARD OF SUPERVISORS RESOLUTlON NEW WORLD PASTA COMPANY WHEREAS, New World Pasta Company currently operates in Fredcrick County, Virginia faciJjty and has made known its intent to cxpand its opcratlOns by acquiring new equipment and adding new jobs; and WHEREAS, the company meets the policy guidelines of thc Frederick County Economic Development Incentives Fund as established by the Winchester-Frederick County Economic Dcvelopment Commission in 1995; BE IT RESOLVED, that the Board of Supervisors for the County of Frederick, Virginia uoes hercby approve the payment of $1 00,000.00 to the Industrial Development Authority of Frederick County, Virginia from the Frederick County Economic Development Incentive Fund to assist New World Pasta Company to implement an equipment expansion and creation of additional jobs in Frederick County, Virginia. BE IT RESOLVED, that said funds are subject to an executed Mcmorandum of Undcrstanuing outlining the required performance criteria. BE IT FURTHER RESOLVED, that the Board of Supervisors for the County of Frederick, Virginia, does authorizc the County Administrator to execute the Memorandum of Understanding on its behalf. ADOPTED, this 10.h day of July, 2002. Upon motion duly made by Robert M. Sager, seconded by W. Harrington Smith, Jr., the above resolution was approved by the following recorded vote: Richard C. Shickle Aye Robert M. Sager Aye W. Harrington Smith, Jr. Aye Margaret B, Douglas Aye Lynda 1. Tyler Aye Sidney A. Reyes Aye Gina A. Forrester Aye A COPY TESTE: RESOLUTION NO.: 002-02 cc: Cheryl B, Shiffler, Finance Director C. William Orndoff, Jr., Treasurer BOARD OF SUPERVISORS MEMORANDUM OF UNDERSTANDING THIS MEMORANDUM OF UNDERSTANDING, dated ,2002, evidences the agreement among the COUNTY OF FREDERICK, VIRGINIA, a political subdivision of the Commonwealth of Virginia (the "County"), the INDUSTRIAL DEVELOPMENT AUTHORITY OF THE COUNTY OF FREDERICK, VIRGINIA, a political subdivision of the Commonwealth of Virginia (the "IDA"), the WINCHESTER - FREDERICK COUNTY ECONOMIC DEVELOPMENT COMMISSION, a joint commission of the City of Winchester and Frederick County, Virginia (the "Commission"), and New World Pasta Company ("New World Pasta"), a Pennsylvania company, regarding an equipment expansion in their Frederick County facility. Inducement To Expand: To induce New World Pasta to implement this equipment expansion and, thereby invest $15,000,000.00 in machinery and tools in Frederick County, Virginia and create twenty-eight (28) new jobs by June 30, 2004, (the "Project"), the County agrees to make a cash grant to the IDA in the amount of One Hundred Thousand Dollars ($100,000.00) and the IDA, in turn, shall make a cash grant to New World Pasta in an identical amount for equipment expansion purposes within its Frederick County, Virginia facility (the "Facility") as an incentive to implement this expansion in Frederick County. The IDA hereby agrees to convey such funds to New World Pasta no later than September 1, 2002 or the date in which the new machine line becomes operational, whichever comes last. This grant shall be used by New World Pasta for the purpose of payment for, or reimbursement of, equipment purchases and related costs. Page 1 of 5 Conditions. (a) New World Pasta shall diligently pursue such application and procure such approvals from various commercial lending interests to pursue adequate funds to equip the Facility with the new equipment; (b) All incentives described herein shall be provided as and when indicated. Cooperation. The County and the Commission agree to cooperate with New World Pasta, its equipment suppliers and its equipment contractor in connection with helping New World Pasta meet its equipment implementation deadline so that the Facility is equipped by no later than June 30, 2004. Time is of the essence of this Agreement. Nothing in this paragraph shall be interpreted to require the County to issue any permits unless and until all conditions for such permits have been met. Bindinq. This Memorandum of Understanding shall be binding upon and inure to the benefit of the parties and their respective successors upon the date of the acceptance of this Memorandum of Understanding. Default. In the event New World Pasta fails for any reason to 1) have fully operational $15,000,000.00 in new machine and tool investments by June 30, 2004; 2) create twenty-eight (28) net new jobs associated with this Project by June 30, 2004; 3) maintain the level of investment and jobs created through the Project for at least two years; and 4) remain located in Frederick County for a full four (4) year period, beginning June 30, 2004, then upon written demand of the IDA, New World Pasta shall refund to the IDA such portions of the $100,000.00 grant from the IDA as is proportionate to New World Pasta's shortfall in fulfilling the applicable requirement. Notwithstanding the foregoing, if New World Pasta has met 90 percent (90%) of the investment and employment goals set forth in this agreement by June 30, 2004, maintained the level of investment and jobs created through the Project for a period at Page 2 of 5 least two years and remains fully operational in Frederick County for four (4) years until at least June 30, 2008, then and thereafter, New World Pasta is deemed to have substantially complied with this Memorandum of Understanding and is no longer obligated to repay any portion of the grants provided to it hereunder. Assignment. This Agreement shall not be assigned by any party. Expiration of Aqreement. If New World Pasta has not executed this Memorandum of Understanding by September 1, 2002, or has not begun the implementation process for this project by October 1, 2002, this Memorandum of Understanding shall be null and void and no further force and effect. THE COUNTY OF FREDERICK, VIRGINIA (~-""\ /7 /~/ ',/ ------ By: '/- . John R. Riley, Jr., ounty Administrator This day John R. Riley, Jr., County Administrator of the County of Frederick, appeared before me, a notary public for the State of Virginia, at large, and did acknowledge his signature above fixed all in my state aforesaid. My commission expires Jv-'o }rl I I I Given under my hand thO \ \ ~ ,-j,C/:n day of J '-'.~ . ( ( ~"i-(' nO,'!' j \)r I( ( ( Notary Public ,2002. Page 3 of 5 INDUSTRIAL DEVELOPMENT AUTHORITY OF THE COUNTY OF FREDERICK, VIRGINIA BY: TITLE: DATE: FREDERICK COUNTY, VIRGINIA BY: ~<(- TITLE: County Administrator DATE: July 11. 2002 WINCHESTER/FREDERICK COUNTY ECONOMIC DEVELOPMENT COMMISSION BY: TITLE: DATE: Page 4 of 5 NEW WORLD PASTA COMPANY BY: TITLE: DATE: Page 5 of 5