021-01
BOARD OF SUPERVISORS
)
RESOLUTION
KRAFT, INC.
WHEREAS, Kraft, Inc. currently operates in Ft. 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 approve the payment of $200,000 to be designated to the Frederick County
Industrial Development Authority from the Frederick County Economic Development Incentive Fund to
assist Kraft, Inc. to implement an equipment expansion.
I
BE IT FURTHER RESOLVED, that said funds are subject to art' executed Memorandum of
Understanding outlining a performance criteria of the county.
BE IT FURTHER RESOLVED, that the Board of Supervisors for the County of Frederick,
. ." > Virginia, does authorize the county administrator to execute this document on itsbehalf.'l\1~(1":;4';~~";";l\:'\l'i'~,~~W#l,;
ADOPTED, this 12th day December, 2001.
Upon motion duly made by W. Harrington Smith, Jr., seconded by Charles W. Orndoff, Sr., on the
votes hereafter recorded,
W. Harrington Smith, Jr.
Aye
Sidney A. Reyes
Aye
Aye
Aye
Richard C. Shickle
Aye
Robert M. Sager
Charles W. Orndoff, Sr.
Aye
Margaret B. Douglas
A COpy TESTE:
John R. Riley, Jr.
Clerk, Board of Supervisors
RESOLUTION NO.: 021-01
cc: Cheryl B. Shiffler, Finance Director
C. William Orndoff, Jr., Treasurer
COUNTY of FREDERICK
Board of Supervisors
540/665-5666
540/667-0370 fax
W. Harrington Smith, Jr.
Shawnee District
Robert M. Sager
Opequon District
Charles W. Orndoff, Sr. - Vice Chairman
Stonewall District
Margaret B. Douglas
Back Creek District
Sidney A. Reyes
Gainesboro District
Richard C. Shickle - Chairman
MEMORANDUM OF UNDERSTANDING
THIS MEMORANDUM OF UNDERSTANDING, dated
,2001,
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 $4,000,000.00 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
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107 North Kent Street, Winchester, Virginia 22601-5000
the IDA hereby agrees to do so), within ninety (90) days of the project start. This grant
shall be used by Kraft for the purposes of payment for or reimbursement 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;
Coooeration. The County and the Commission agree to ccSoperate 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 2.) remain located in Frederick County for a full four year period,
beginning April, 2003; and 3.) increase its number of production job requirements by 75
people during the year 2003; upon written demand of the IDA, Kraft shall refund to the
IDA such portion of the $200,000.00 grant as is proportionate these stipulations. For
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example, if Kraft left the county at the two-year point, before 2007, Kraft would be
obligated upon demand by the IDA, to refund 50% of the $200,000.00, or 100,000.00.
Also, if Kraft fails to meet the following targeted objective of average new machine and
tool values of $25,000,000.00, they shall refund a proportionate amount of the grant
funds for the respective time period of their failure: For example, if Kraft were to only
implement and maintain an average annual new machine and tool value of $5,000,000,
which is 20% of the committed level up to April 30, 2003, they would repay 80% of the
grant, or $160,000.00. In addition, if Kraft fails to increase its production job
requirements by 75 people during 2003, they shall refund a proportionate amount of
grant funds. For example, if Kraft were to only implement a job in'Crease of 40 jobs,
they would repay 47% of the grant or $94,000.00. These potential repayment amounts
represent the percentage of the agreed to thresholds stated above in this
memorandum. Kraft agrees to repay whichever amount is larger should they default on
remaining in Frederick County or on the machinery and tool value commitment, or on
the increase of its production job requirements. This Agreement shall not be assigned
by any party.
If Kraft has not executed this Memorandum of Understanding by
2002, or has not begun the implementation process for this project by April 1 ,2002, this
Memorandum of Understanding shall be null and void.
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INDUSTRIAL DEVELOPMENT AUTHORITY OF THE COUNTY OF FREDERICK:
VIRGINIA
BY:
TITLE:
DATE:
DATE:
WINCHESTER/FREDERICK COUNTY ECONOMIC DEVELOPMENT COMMISSION
BY:
KRAFT,INC.
TITLE:
DATE:
TITLE:
DATE:
BY:
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