003-99
~~
~~ WINCHESTER I FREDERICK COUNTY
~ ~ Economic Development Commission
December 09, 2003
LETTER TO THE GRW MOU FILE
On January 17, 2002, the Frederick County IDA granted a one year extension to
GRW in order for them to meet the tool & machine investment of $2,500,000 and
create 60 new jobs per the Memorandum of Understanding dated July 14, 1999.
Per the MOU, they could make 90% of these two stipulations and satisfy the
terms and conditions
On December 9, 2003, Ken Jones did an audit of the extension and found that
their total investment had reached $2,794,313.04, which is 12% over the
investment amount required by the MOU. They have only filled a total of 38 new
jobs, which is only 63% of the number of jobs required by the MOU.
In view of GRW having invested 12 % more than required by the MOU and the
fact they are recruiting more employees at this time, it is recommended that the
MOU conditions should be considered met.
!lK<,r
n R. Ri y, Jr
J),/ 11/ rJ3
I Date
/- 27-04
Date
Approved at 01/28/04 Board Meeting
45 E. Boscawen St. . Winchester, \1:'\ 22601
540,665.0973 . fax 540.722.0604 . e-mail info@Wininva.com
. illtemet http://www.wininva.com
BOARD OF SUPERVISORS
RESOLUTION
GRW TECHNOLOGIES, INC.
Upon motion made by Robert M. Sager, seconded by Richard C. Shickle, and on the votes
hereafter recorded,
BE IT RESOLVED, that the Board of Supervisors of the County of Frederick, Virginia, does
hereby approve the payment of$73 ,149 .00 to the Frederick County Industrial Development Authority from
the Frederick County Economic Development Incentive Fund to assist in the site development for GRW
Technologies, Inc.
BE IT RESOLVED, that said funds are subject to an executed Memorandum of Understanding
outlining a performance criteria of the county.
BE IT FURTHER RESOLVED, that the Board of Supervisors of the County of Frederick,
Virginia, does hereby authorize the county administrator to execute this document on its behalf.
ADOPTED, this 14th day of July, 1999.
James L. Longerbeam
Aye
Robert M. Sager
Aye
Richard C. Shickle
Aye
Margaret B. Douglas
Aye
W. Harrington Smith, Jr.
Aye
Charles W. Orndoff, Sr.
Aye
A COpy TESTE:
RESOLUTION NO.: 003-99
cc: Cheryl B. Shiffler, Finance Director
C. William Orndoff, Jr., Treasurer
~
COUNTY of FREDERICK
John R. Riley, Jr.
County Administrator
540/665-5666
Fax 540/667-0370
July 8, 1999
CONFIDENTIAL
TO:
Board of Supervisors
FROM:
John R. Riley. Jr.
pr:o
New Industry Request
rhe Economic Development Commission has requested that I brief you
regarding a new project for the community. The enclosures contain a
description of the project, a letter of commitment, a return on investment
scenario, and a memorandum of understanding.
The company's interest is in the Westview Partnership Building located in the
Westview Corporate Centre. The company is a plastic injection mold facility
producing component parts for the automotive industry. This operation would
enhance our established plastic cluster.
107 North Kent Street · Winchester, Virginia 22601-5000
CONFIDENTIAL
SUMMARY OF GRW TECHNOLOGIES, INC PROJECT
Initial inquiry to the EDC: April 1, 1999
Source of inquiry: The Virginia Economic Development Partnership
Description of proiect: GRW Technologies, Inc. is a German plastic injection
mold operation producing various component parts for the automobile industry.
The company is relocating their U.S. facility from New York to Frederick County.
From this facility, they will distribute their product throughout the United States
and will export component parts to Mexico and Canada.
The buildin~:r 25,000 sq.ft. initially with the potential to expand to 40,000. The
Westview Partnership Building #1 is a spec building already constructed in the
Westview Corporate Centre. Work has begun to finish the facility for
occupation before July 16. 1999.
The site:. The building is located on a 4 acre parcel in Westview Corporate
Centre.
Investment: Estimated $1,100,000 in land and building, $6,400,000 in
equipment over seven (7) years.
Number of iObs: 60-85.
Date of operation anticipated: July, 1999
June 23, 1999
Rolf Zoeller, Vice President
GRW Technologies, Inc.
60 Old Country Road
Quogue, NY 11959
Dear Mr. Zoeller:
We are very pleased in your company's relocation decision to Frederick County in the
Westview Business Centre and offer the following proposal to assist in this project.
On June 16, we informally polled the Frederick County Board of Supervisors regarding
the project. We are moving ahead with certain activities until they have the opportunity
to formally take action on these items, which must be done in public session. Until that
time, the project can remain confidential. We await your direction for the Board to
proceed. Upcoming Board meetings are scheduled for July 14th and August 25th.
A summary of our commitments follows:
1. To provide $73,149 in local funds through the Industrial Development
Authority of Frederick County to assist in the purchase of machinery and
tools.
2. To pursue Workforce Services pre-employment services through the Virginia
Department of Business Assistance which can provide customized workforce
training. This program also incorporates the recruitment costs. You are
already in contact with Jeff Martin who will be able to provide the actual value
of that program for you.
3. State and local sales and use taxes are exempted for items used directly in the
manufacturing process-such as machinery and tools, as well as items used
in packaging, etc. The value of that savings is 4.5% of purchases.
4. Permit fast track process. While this is not a cash investment, it impacts time
and that is money. Frederick County has an experienced development
process team, and it appears that all the actions necessary to bring your
company to building occupancy are administrative in nature.
It is a pleasure to offer this proposal and we look forward to a successful conclusion of
this project. Recognize that the Board will need to be briefed again and take official
action to firm up the proposal. You may call me directly or June Wilmot of the Economic
Development Commission should you have a question.
Sincerely yours,
John R. Riley, Jr.
County Administrator
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Board of Supervisors
540/665-5666
540/667-0370 fax
James L. Longerbeam - Chainnan
W. Harrington Smith. Jr.
Shawnee District
COUNTY of FREDERICK
Robert M. Sager
OpequonDistrict MEMORANDUM OF UNDERSTANDING
Richard C. Shickle - Vice Chairman
Charles W. Orndoff, Sr.
Stonewall District
Margaret B. Douglas
Back Creek District
This MEMORANDUM OF UNDERSTANDING, dated July 14, 1999,
evidences the agreement among FREDERICK COUNTY, VIRGINIA, a political
subdivision of the Commonwealth of Virginia (the "County"), the WINCHESTER-
FREDERICK COUNTY ECONOMIC DEVELOPMENT COMMISSION, a joint
commission of the City of Winchester and Frederick County, Virginia (the
"Commission"), the INDUSTRIAL DEVELOPMENT AUTHORITY OF THE
COUNTY OF FREDERICK, VIRGINIA, a political subdivision of the
Commonwealth of Virginia (the "IDA"), and GRW TECHNOLOGIES, INC., (the
"Company") regarding a relocation of their U.S. manufacturing facilities of the
Company into a 25,000 sq.ft. speculative facility, (Westview Partnership Building
#1) in Westview Corporate Centre built by the Ricketts Construction Company,
Frederick County, Virginia.
Inducement to Locate. To induce the Company to move forward with its
proposed relocation, the County agrees to make a cash grant in the amount of
Seventy Three Thousand One Hundred and Forty Nine Dollars ($73,149) to the
IDA and that the IDA, in turn, shall make a cash grant to GRW Technologies,
Inc. in an identical amount no later than December 1, 1999. The grant shall be
1
107 North Kent Street. Winchester, Virginia 22601-5000
used for the purpose of reducing start-up costs for machinery and tools
investment required for the operation.
Company Commitments. The Company commits to the investment of at
least $2.5 million in machinery and tools; and the creation of a minimum of 60
jobs by July 2000.
Cooperation. The County agrees to fast track any permits required by the
expansion so that the appropriate permits, if prepared correctly by the Company,
can be issued in time for occupancy to meet the deadlines above. 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 acceptance. In the event the Company fails for any reason to achieve 90
percent of the investment and employment goals within 30 months after the start-
up of the project noted above for a period not to exceed the length of the lease
on the facility (five years), then the Company will repay to the Authority and the
Authority shall repay to the County a proportional amount of the respective
contributions to the project.
COUNTY OF FREDERICK, VIRGINIA
BY:
TITLE:
f
Riley, Jr., County Administrator
2
DATE: July 15, 1999
THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE COUNTY OF
FREDERICK COUNTY, VIRGINIA
BY:
TITLE:
DATE:
WINCHESTER-FREDERICK COUNTY ECONOMIC DEVELOPMENT
COMMISSION
BY:
TITLE:
DATE:
GRW TECHNOLOGIES, INC.
BY:
TITLE:
DATE:
3