044-99
BOARD OF SUPERVISORS
RESOLUTION
UP HOOD INC.
Upon motion duly made by W. Harrington Smith, Jr., seconded by Charles
W. Orndoff, Sr., and on the votes hereafter recorded,
BE IT RESOLVED, that the Board of Supervisors for the County of Frederick, Virginia
does hereby approve the payment of$700,000 over 10 years subject to annual appropriations to the
Frederick County Industrial Development Authority from the Frederick County Economic
Development Incentive Fund to assist in construction of a pre-treatment facility for HP Hood, Inc.
BE IT RESOLVED, that said funds are subject to an executed Memorandum of
Understanding outlining a performance criteria ofthe 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 12th day of April, 1999.
James L. Longerbeam
Ave
Robert M. Sager
Ave
Richard C. Shickle
Ave
Margaret B. Douglas
Ave
W. Harrington Smith, Jr.
Ave
Charles W. Orndoff, Sr.
Ave
A COpy TESTE:
RESOLUTION NO.: 044-99
COUNTY of FREDERICK
Board of Supervisors
540/665-5666
540/667 -0370 fax
James L. Longerbeam - Chairman
W. Hanington Smith, Jr.
Shawnee District
Robert M. Sager
Opequon District
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 March 10, 1999, and revised
April 12, 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, ajoint
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 HP HOOD, lNG., (the "Company") regarding a new location in Virginia for
the Company's dairy processing operations.
Inducement to Locate. To induce the Company to locate this facility in Frederick
County, the County agrees to the following:
a) To make a cash grant in the amount of Five Hundred Thousand
Dollars ($500,000) to the IDA and that the IDA, in turn, shall make
a cash grant to HP HOOD, INC., in an identical amount no later than
July 1, 1999, or the date of the company closing on the purchase of
the property, whichever comes last. The grant shall be used to
reduce site purchase costs and subsequent site development
expenditures.
107 North Kent Street, Winchester, Virginia 22601-5000
b) To apply to the Governor's Opportunity Fund for an equal amount
($500,000) to be used for the same purpose.
c) To apply for Industrial Road Access Funds from the Commonwealth
of Virginia in an estimated amount of $300,000 to provide road
access to an identified, approximate 75-acre parcel of the Frederick-
II8l Industrial Park (total 85 acres). This funding source will be
reassessed should the Company purchase the entire Park (85 acres)
in terms of applicability of the funds use.
d) To pursue, with the assistance of the Lord Fairfax Planning District
Commission, no more than a $700,000 loan in Community
Development Block Grant loan funds for the purpose of providing
pretreatment of the Company's effluent before releasing it to the
public treatment facility. Said pre-treatment facility will be
privately owned and operated by HP Hood, Inc., and will be co-
located on the same property as the HP Hood dairy processing
facility. The County of Frederick will repay the loan to the
Department of Housing and Community Development over a period
of ten years, no interest. In the event the loan application is not
successful, subject to annual appropriations in each fiscal year, the
County agrees to make a cash grant to the IDA and the IDA, in turn,
agrees to pay to HP Hood the same amount of $700,000 over the
same period of 10 years to assist in reducing the cost of same
treatment facility. The payment schedule will be 50% ($350,000)
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on July 1, 2005, or five years after the commencement the use of
the pretreatment facility by the Company whichever comes last, and
the second payment of 50% ($350,000) will occur on July 1,2010
or 10 years after the commencement of the use of the pretreatment
facility by the Company.
e) Company Commitments. The Company commits to the following
investment scenario (in millions):
Year
1999
2000
2001
2002
Real Estate
$15.7
$ 4.2
Machinery and Tools
$40.B
$11.3
$ 7.6
$ 4.6
Number of jobs created initially is 170.
Cooperation. The County agrees to fast track any permits required by the location
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.
Bindinsz. 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 completion of the project noted above and
to maintain the level of investment and jobs created for a period not to exceed two years
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thereafter, then the Company will repay to both the County and the Governor's
Opportunity Fund a proportional amount of the respective contributions to the project.
COUNTY OF FRED:CK, VIRGIN~ -'2 f
TITLE:
DATE:
INDUSTRIAL DEVELOPMENT AUTHORllY OF THE COUNTY OF FREDERICK
COUNTY, VIRGINIA
BY:
TITLE:
DATE:
WINCHESTER-FREDERICK COUNTY ECONOMIC DEVELOPMENT
COMMISSION
BY:
TITLE:
DATE:
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HP HOOD, INC.
BY:
TITLE:
DATE:
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