009-98
BOARD OF SUPERVISORS
RESOLUTION
AB&C GROUP
WHEREAS, AB&C Group (the Company) has entered into a lease with the Lenoir City
Company for a 77,000 square foot facility in the Stonewall Industrial Park; and
WHEREAS, the Company meets the policy guidelines of the Frederick County Economic
Development Incentives Fund as established by the Winchester-Frederick County Economic
Development Commission in 1995;
NOW, THEREFORE, BE IT RESOLVED, that the Board of Supervisors of Frederick
County, Vlfginia, approved, by resolution, at their regular meeting ort August 12, 1998, payment of
$80,000 to the Frederick County Industrial Development Authority from the Frederick County
Economic Development Incentive Fund to assist in reducing initial machinery and equipment costs
for AB&C Group, subject to an executed Memorandum of Understanding outlining a performance
agreement by the Company.
BE IT FURTHER RESOLVED, that the Board of Supervisors does hereby authorize the
county administrator to execute this document on its behalf.
ADOPTED this 12th day of August, 1998.
Upon motion made by Robert M. Sager and seconded by Richard C. Shickle, the above
resolution was approved by the following recorded vote:
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:
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County Administrator
RESOLUTION NO.: 009-98
cc: Cheryl B. Shiffler, Finance Director
C. William Orndoff, Jr., Treasurer
(DRAFT)
MEMORANDUM OF UNDERSTANDING
August 4, 1998
This MEMORANDUM OF UNDERSTANDING, dated August 14, 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), and AB&C Group, a Virginia Corporation,
(the "Company") regarding an expansion of the distribution services of the
Company into a 77,000 sq.ft. speculative facility in Stonewall Industrial Park built
by the Lenoir City Company, Frederick County, Virginia.
Inducement to Locate. To induce the Company to move forward with its
proposed expansion, the County agrees to make a cash grant in the amount of
Eighty Thousand Dollars ($80,000) to the IDA and that the IDA, in turn, shall
make a cash grant to AB&C Group in an identical amount no later than October
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1, 1998. The grant shall be 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 $1.1 million in machinery and tools; and the creation of a minimum of 80
jobs by the end of 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.
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:
DATE:
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THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE COUNTY OF
FREDERICK COUNTY, VIRGINIA
BY:
TITLE:
DATE:
WINCHESTER-FREDERICK COUNTY ECONOMIC DEVELOPMENT
COMMISSION
BY:
TITLE:
DATE:
AB&C GROUP
BY:
TITLE:
DATE:
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