030-99
BOARD OF SUPERVISORS
RESOLUTION
Upon motion duly made by W. Harrington Smith, Jr~secondedbYMargaret B. Douglas,
and on the votes hereafter recorded,
BE IT RESOL YED, that the Board of Supervisors for the County of Frederick, Virginia
does hereby approve the payment of $50,000 to be designated to the Frederick County Industrial
Development Authority from the Frederick County Economic Development Incentive Fund to assist
in the site development for World Wide Automotive.
BE IT RESOL YED, that said funds are subject to an executed Memorandum of
Understanding outlining a performance criteria of the county.
BE IT FURTHER RESOL YED, 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 of February, 1999.
James L. Longerbeam
Aye
Robert M. Sager
~
Richard C. Shickle
Aye
Margaret B. Douglas
Aye
W. Harrington Smith, Jr.
Aye
Charles W. Orndoff, Sr.
Aye
A COPY TESTE:
~~/
Clerk, Board of Supervisors
RESOLUTION NO.: 030-99
cc: Cheryl Shiffler, Finance Director
Bill Orndoff, Treasurer
MEMORANDUM OF UNDERSTANDING
THIS MEMORANDUM OF UNDERSTANDING, dated February 9, 1999, evidences the
agreement among FREDERICK COUNTY, VIRGINIA, a political subdivision of the
Commonwealth of Virginia (the "County"). the INDUSTRIAL DEVELOPMENT
AUTHORITY OF THE FREDERICK COUNTY, 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 WORLD WIDE
AUTOMOTIVE, ("World Wide") a Virginia Corporation, regarding the location of a new
remanufacturing and distribution facility to be owned by Fort Collier Group, leased and
utilized by World Wide, in Frederick County, Virginia.
Inducement To Locate. To induce Worldwide to locate its approximately
170,000 square foot manufacturing facility (the "Facility") and, thereby provide through
World Wide at least (40) jobs and $400,000.00 in machinery and tool values in
Frederick County, Virginia by December 31, 1999, (the "Project"), the County agrees to
make a cash grant to the IDA in the amount of Fifty Thousand Dollars ($50,000) and
that the IDA, in turn, shall make a cash grant to World Wide in an identical amount for
expansion purposes into the new facility as an incentive to locate in Frederick County
(and the IDA hereby agrees to do so) within ninety (90) days after the lease execution
between World Wide and Fort Collier Group, Inc. is officially enacted or the execution
of this Memorandum, whichever is latest.
This grant shall be used by World Wide for the purposes of payment for or
reimbursement of equipment purchase costs.
Conditions:
(a) World Wide shall diligently pursue such application and procure such
approvals from various commercial lending interests to pursue adequate funds to lease
and equip the Facility;
(b) All incentives described herein shall be provided as and by when indicated;
Cooperation. The County and the Commission agree to cooperate with
World Wide, its equipment suppliers and its equipment contractor in connection with
helping World Wide meet its construction deadlines so that the Facility is equipped and
a temporary Certificate of Occupancy is issued no later than December 31, 1999. Time
is of the essence of this Agreement. Nothing in this paragraph shall be interpreted to
require the county to issue any permits (including a certificate of occupancy) unless and
until all customary conditions for such permit 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 the
acceptance of this Memorandum of Understanding. In the event World Wide fails for
any reason to 1.) reach the 40 employee and $400,000.00 machine and tool values by
December 31, 1999, and 2.) remain located in Frederick County for a full three year
period, beginning December 31, 1999, upon written demand of the IDA, World Wide
shall refund to the IDA such portion of the $50,000.00 grant as is proportionate to the
time remaining in the three year period. For example, if World Wide left the county at
the two-year point, before December 31, 2001, World Wide would be obligated upon
demand by the IDA, to refund one-third of the $50,000.00, or $16,500.00. Also, if
World Wide fails to meet the following targeted objectives, they shall refund a
proportionate amount of the grant funds for the respective time period of their failure:
1.) average annual employment levels of at least 75 (seventy-five) employees over a
three year period with 40 full time employees (30 hours or more) by December 31,
1999, and 2.) average annual machine and tool values at $400,000.00. For example, if
Worldwide were to only employ an annual average of 60 people over the next three
years, they would repay 20% of the grant, or $10,000.00. If World Wide were to
maintain an average annual machine and tool value of $80,000, which is 20% of the
committed level over the next three years, they would repay 80% of the grant, or
$40,000.00. These potential repayment amounts represent percentages of the agreed
to thresholds stated above in this memorandum. World Wide agrees to repay
whichever amount is larger should they default on both employment and machinery and
tool value commitments. This Agreement shall not be assigned by any party.
If World Wide has not executed this Memorandum of Understanding by February
29, 1999, or has not begun the construction process for this project by March 31, 1999,
this Memorandum of Understanding shall be null and void.
THE INDUSTRIAL DEVELOPMENT AUTHORITY OF FREDERICK COUNTY,
VIRGINIA
BY:
TITLE:
DATE:
FREDERICK COUNTY, VIRGINIA
BY:
TITLE:
DATE:
WINCHESTER/FREDERICK COUNTY ECONOMIC DEVELOPMENT
COMMISSION
BY:
TITLE:
DATE:
WORLD WIDE AUTOMOTIVE, INC.
BY:
TITLE:
DATE: