010-98
BOARD OF SUPERVISORS
RESOLUTION
Upon motion made by Robert M, Sager and seconded by Margaret B. Douglas, the above
resolution was approved by the following recorded vote:
BE IT RESOLVED, that the Board of Supervisors of the County of Frederick, Virginia,
approved, by resolution, at their regular meeting on August 12, 1998, payment of $175,000 to the
Frederick County Industrial Development Authority from the Frederick County Economic
Development Incentive Fund to assist in the site development for Coca-Cola Bottling Company,
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 12th day of August, 1998.
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:
~-(c/--
Joh R. Riley, Jr. I
County Administrator
RESOLUTION NO.: 010-98
cc: Cheryl B. Shiffler, Finance Director
C. William Orndoff, Jr., Treasurer
MEMORANDUM OF UNDERSTANDING
(Revised August 4, 1998)
This MEMORANDUM OF UNDERSTANDING, dated July 8,1998,
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), the FREDERICK COUNTY SANITATION
AUTHORITY, a political subdivision of the Commonwealth of Virginia (the
"Sanitation Authority") and CENTRAL COCA COLA BOTTLING CO., a Virginia
Corporation (the "Company") regarding a new sales center, warehousing and
manufacturing operations by Central Coca Cola in Frederick County, Virginia.
Inducement to Locate. To induce the company to move forward with its
proposed project in the following phases:
Phase
Phase I
Phase II
Size (sq.ft.)
7,500 sales center offices 76,850 filling room
46,500 sales center
21,000 support areas
100,000 production whse. 14,000 corporate offices
8,800 maintenance garage
Investment
$8,400,000
New Jobs
15
$11,900,000
20
1
Jobs Saved 65 25
(for Virginia)
the County agrees to make the following cash grants in the sequence noted to
the IDA which shall, in turn, make identical grants to the Company, also in the
sequence noted:
Phase Phase I Phase II
Amount a)$40,000 for extension a)$192,500 for land and
When
of water and sewer service
hook-up fees of the Sani-
tation Authority
b)$135,000 for site development
costs, property cost reduction
c)$175,000 from the Governor's
Opportunity Fund for property
cost reduction
Within 15 days of construction
permit being issued, but no later
than December 31, 1998
other development costs
Within 15 days of
construction permit being
issued, but no later than
December 31 , 2000
The Site. It is expected that the Company will have successfully executed
its contract to purchase approximately 63 acres of land known as the Whitacre
Tract which is bounded on the northeast by Apple Valley Road (State Rte. 652)
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and on the southeast by Shady Elm Road (State Rte. 651), and that the County
will have concluded its rezoning and subdivision process to permit construction
to proceed by the above date for Phase I. The County also agrees to fast track
the Company's permitting process for development so that the appropriate
permits for construction, if prepared correctly by the Company, can be issued in
time for each of the Phases 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.
Extension of Utilities. Water and sewer service to the Company's
facilities in sufficient quantity for each phase of the development will be provided
by the Frederick County Sanitation Authority to permit construction to proceed
by the dates for each phase as above.
Road Improvements. The Virginia Department of Transportation has
advised that current roadways serving the site are already at Industrial Access
Road standards. The improvements required for Routes 651 and 652 which
bound the site purchased by CocaCola are caused by the company's
development or planned development. In addition, the company offered to
design and construct the improvements as a result of the rezoning of the
property. However, the development by the Company adds already to the traffic
demand by other industries and potential industrial parks served by Routes 652
and 651. This new development causes certain improvements required by the
Virginia Department of Transportation to be put in place. The current estimate of
the improvement costs excluding those which specifically inure to the use of the
3
Company alone are $80,000. The EDC will make every effort to secure
contributions from other industrial users along the named roadways on an
equitable basis to support these additional improvements. In addition, Frederick
County will also pursue reconsideration by the Virginia Department of
Transportation toward using Industrial Access Road Funds toward qualifying
improvements required.
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 the
investment and employment goals in the Phases noted above for a period not to
exceed four years from the execution of this memorandum, then the Company
will repay to both the Authority (which shall then pay to the County) and the
Governor's Opportunity Fund a proportional amount of the respective
contributions to the project.
COUNTY OF FREDERICK, VIRGINIA
BY:
TITLE:
DATE:
4
THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE COUNTY OF
FREDERICK COUNTY, VIRGINIA
BY:
TITLE:
DATE:
WINCHESTER-FREDERICK COUNTY ECONOMIC DEVELOPMENT
COMMISSION
BY:
TITLE:
DATE:
FREDERICK COUNTY SANITATION AUTHORITY
BY:
TITLE:
DATE:
CENTRAL COCA COLA BOTTLING CO.
BY:
TITLE:
DATE:
5