043-99
BOARD OF SUPERVISORS
RESOLUTION
KRAFT FOODS, 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$280,000 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 Kraft Foods, 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 for the County of Frederick,
Virginia, does authorize the county administrator to execute this document on its behalf.
ADOPTED, this nib 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.: 043-99
COUNTY of FREDERICK
Board of Supervisors
540/665-5666
540/667-0370 fax
James L. Longerbeam - Chairman
W. Harrington Smith, Jr.
Shawnee District
Robert M. Sager
Opequon District
Richard C. Shickle - Vice Chairman
Charles W. Orndoff, Sr.
Stonewall District
Margaret B. Douglas
Back Creek District
MEMORANDUM OF UNDERSTANDING
This MEMORANDUM OF UNDERSTANDING, dated October 14, 1998 and
revised April 12, 1999, evidences the agreement among FREDERICK COUNIY,
VIRGINIA, a political subdivision of the Commonwealth of Virginia (the
"County"), the WINCHESTER-FREDERICK COUNIY ECONOMIC DEVELOPMENT
COMMISSION, a joint commission of the City of Winchester and Frederick
County, Virginia (the "Commission"), the INDUSTRIAL DEVELOPMENT
AUTHORITY OF THE COUNIY OF FREDERICK, VIRGINIA, a political subdivision
of the Commonwealth of Virginia (the "IDA"), and KRAFT FOODS, INC., (the
"Company") regarding an expansion of the product line and investment of at least
$14 million in the Company's existing Frederick County, Vrrginia, facility.
Inducement to Locate. To induce the Company to move forward with its
proposed expansion, the County agrees to the following:
a) To make a cash grant in the amount of Two Hundred and Fifty
Thousand Dollars ($250,000) to the IDA and that the IDA, in
turn, shall make a cash grant to Kraft Foods, Inc., in an identical
107 North Kent Street, Winchester, Virginia 22601.5000
amount no later than December 31, 1999. The grant shall be
used for the purpose of converting a portion (80,000 sq. ft) of
existing facility space (220,000 sq. ft.) into a refrigerated area
which has a capital value of approximately $3,000,000.
b) To apply to the Governor's Opportunity Fund for an equal
amount ($250,000) to be used for the same purpose as
indicated above.
c) To apply for Railroad Industrial Access Funds from the
Commonwealth of Virginia in an estimated amount of $95,000
to support a second rail siding to support the expansion of the
Capri Sun beverage operation by an overall approximate
$12,000,000 investment and estimated addition of 30 jobs.
d) Subject to annual appropriations each fiscal year, to make a cash
grant to the IDA that the IDA, in turn, shall make a cash grant to
the Company in order to repay to the Company over a lO-year
period an amount not to exceed $280,000 which represents the
actual construction costs for a flow equalization tank to be
constructed by the Company on Company property. The
payment schedule will be 50% ($140,000 or less) on July 1,
2004 or five years after the commencement of the use of the
tank by the Company whichever comes last, and the second
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payment of 50% ($140,000 or less) will occur on July 1, 2009 or
ten years after the commencement of the use of the tank by the
Company, whichever comes last. The purpose of the tank is to
assist in balancing the flow of the effluent from the facility prior
to its entering the Frederick County Sanitation Authority system.
Company Commitments. The Company commits to an additional, overall
investment of at least $14 million and creation of a minimum of 200 jobs in
support of the new product addition by the end of 1999. This represents the start
up of the first line expected by mid-April, 1999 and the second line expected by
mid-July, 1999.
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.
Binding. This Memorandum of Understanding shall be binding upon and
insure 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
new jobs created for a period not to exceed two years thereafter, then the
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Company will repay to both the County and the Governor's Opportunity Fund a
proportional amount of the respective contributions to the project.
COUN1Y OF FREDERICK, VIRGI~~
BY: ~
TITLE:
DATE:
INDUSTRIAL DEVELOPMENT AUTHORITY OF THE COUNTY OF FREDERICK
COUNTY, VIRGINIA
BY:
TITLE:
DATE:
WINCHESTER-FREDERICK COUNTY ECONOMIC DEVELOPMENT
COMMISSION
BY:
TITLE:
DATE:
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KRAFf FOODS, INC.
BY:
TITLE:
DATE:
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