027-02
BOARD OF SUPERVISORS
RESOLUTION
KRAFT, INC.
WHEREAS, Kraft, Inc. currently operates in FI. Collier Industrial Park and has made known its intent
to expand its operations; and
WHEREAS, the company meets the policy guidelines of the Frederick County Economic
Development Incentives Fund as established by the Winchester-Frederick County Economic Development
CommIssion in 1995;
NOW, THEREFORE, BE IT RESOLVED, that the Board of Supervisors for the County of
Frederick, Virginia does hereby appropriate $200,000 to be designated to the Frederick County Industrial
Development Authority from the State of Virginia. Funds will be disbursed to Kraft, Inc. to implement an
equipment expansion.
BE IT FURTHER RESOLVED, that funds will be disbursed upon rcccipt of funds from the
Governor's Opportunity Fund in the amount of $200,000; and
BE IT FURTHER RESOLVED, that said funds are subject to an executed Memorandum of
Understanding outlining a performance criteria of the county.
BE IT FURTHER RESOL VED, that the Board of Supervisors for the County of Frederick, Virginia,
does authorize the county administrator to execute this document on its behalf.
ADOPTED, this 9th day January, 2002.
Upon motion duly made by W. Harrington Smith, Jr., seconded by Robert M. Sager, on the votes
hereafter recorded,
Richard C. Shickle Aye Margaret B. Douglas Aye
W. Harrington Smith, Jr. Aye Sidney A. Reyes Aye
Robert M. Sager Aye Lynda J. Tyler Aye
Gina A. Forrester Aye
A COPY TESTE:
RESOLUTION NO.: 027-02
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 FREDERICK COUNTY, 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 Kraft, Inc., a Delaware Corporation, regarding an equipment
expansion in their Fort Collier Industrial Park facility.
Inducement To Expand. To induce Kraft to implement this building and
equipment expansion and, thereby provide $25,000,000 in machinery and tools values
and $4,000,000.0 in a new building addition in Frederick County, Virginia by April 30,
2003, (the "Project"), the County agrees to make a cash grant to the IDA in the amount
of Two Hundred Thousand Dollars ($200,000.00) and that the IDA, in turn, shall make a
cash grant to Kraft in an identical amount for equipment expansion purposes within the
facility as an incentive to implement this expansion in Frederick County (and the IDA
hereby agrees to do so) within ninety (90) days of the project start. In addition, the IDA
shall serve as the administrator for the $200,000.00 Governor's Opportunity Fund.
These grants shall be used by Kraft for the purposes of payment for or reimbursement
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of such equipment purchase costs.
Conditions:
(a) Kraft 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 by when
indicated;
Cooperation. The County and the Commission agree to cooperate with Kraft, its
equipment suppliers and its equipment contractor in connection with helping Kraft meet
its equipment implementation deadline so that the Facility is equipped by no later than
April 30, 2003. 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.
Binding. 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. In the event Kraft fails for any
reason to 1.) have fully operational $25,000,000.00 in new machine and tool values by
April 30, 2003, and invest $4,000,000 00 in a new building addition and 2.) remain
located in Frederick County for a full four year period, beginning April, 2003, and 3.)
create 75 net new production jobs associated with this project during the year 2003,
upon written demand of the IDA, Kraft shall refund to the IDA the local grant and the
Governor's Opportunity Fund grant such portion of the $200,000.00 grants as is
proportionate to these stipulations. The IDA will in turn refund the Governor's
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Opportunity Fund portion to the Commonwealth. Kraft agrees to repay whichever
amount is larger should they default on remaining in Frederick County or on the
machinery and tool values and building commitment or on the increase of its production
job requirements. This Agreement shall not be assigned by any party.
If Kraft has met 90 percent of the investment and employment goals set forth in
this agreement by April 30, 2003, and remains fully operational for four years until at
least April, 2007, then and thereafter Kraft is deemed to have substantially complied
and is no longer obligated to repay any portion of the grants provided to it hereunder.
If Kraft has not executed this Memorandum of Understanding by March 1, 2002,
or has not begun the implementation process for this project by April 1, 2002, this
Memorandum of Understanding shall be null and void.
By
This day, John R. Riley, Jr., County Administrator of the County of Frederick,
Virginia, 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
Given under my hand this day of , 2002.
Notary Public
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INDUSTRIAL DEVELOPMENT AUTHORITY OF THE COUNTY OF FREDERICK,
VIRGINIA
TITLE:
DATE:
BY:
COUNTY OF FREDERICK, VIRGINIA
TITLE:
DATE:
BY:
WINCHESTER/FREDERICK COUNTY ECONOMIC DEVELOPMENT COMMISSION
TITLE:
DATE:
KRAFT, INC.
TITLE:
DATE:
BY:
BY:
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