006-98
BOARD OF SUPERVISORS
RESOLUTION
Upon motion duly made by Richard C. Shickle, seconded by Charles W. Orndoff, Sr., and on
the votes hereafter recorded,
BE IT RESOLVED, that the Board of Supervisors of Frederick County, Virginia, approved,
by resolution, at their regular meeting on June 9, 1998, payment of$34,000 to the Frederick County
IndustriaIDevelopment Authority from the Frederick County Economic Development Incentive Fund
to assist in the site development for Zeigler Manufacturing Company, subject to an executed
Memorandum of Understanding outlining a performance criteria ofthe county.
BE IT FURTHER RESOLVED, that the Board of Supervisors of Frederick County,
Virginia, does authorize the county administrator to execute this document on its behalf
ADOPTED this 8th day of July 1998 by the following recorded vote:
JamesL.Longerbeam
Aye
Robert M. Sager
Aye
Richard C. Shickle
Aye
Margaret B. Douglas
Abstained
W. Harrington Smith, Jr.
Aye
Charles W. Orndoff, Sr.
Aye
A COpy TESTE:
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RESOLUTION NO.: 006-98
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 DistrictMEMORANDUM OF UNDERSTANDING
Richard C. Shickle - Vice Chairman
Charles W. Orndoff, Sr.
Stonewall District
Margaret B. Douglas
Back Creek District
THIS MEfv10RANDUM OF UNDERSTANDING, dated July 9, 1998,
evidences the agreement among FREDERICK COUNTY, VIRGINIA, a political
subdivision of the Commonwealth of Virginia (the "County"), the INDUSTRIAL
DEVELOPMENT AUTHORITY OF THE COUNTY OF FREDERICK, 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 ZEIGLER MECHANICAL/ ELECTRICAL CONTRACTORS
("Zeigler") a Maryland Corporation, and RDJAM LIMITED PARTNERSHIP
("RDJAM") a Pennsylvania Partnership, regarding the location of a new service and
manufacturing facility to be owned by RDJAM, leased and utilized by Zeigler in
Frederick County, Virginia.
Inducement To Locate. To induce Ziegler to locate its approximately 25,000
square foot facility (the "Facility") and thereby provide through Zeigler at least (15)
jobs in Frederick County, Virginia by June 30, 2001, the County agrees to make a
cash grant to the IDA in the amount of Thirty-four Thousand Dollars ($34,000) and
that the IDA, in turn, shall make a cash grant to RDJAM in an identical amount for
expansion into a new facility as an incentive to locate in Frederick County (and the
IDA hereby agrees to do so) within sixty (60) days after the execution of this
agreement. This grant shall be used by RDJAM for the purposes of payment for or
reimbursement of (a) Site development costs, on the Site defined as 25.185 acres
107 North Kent Street. Winchester, Virginia 22601-5000
February 28, 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 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
the acceptance of this Memorandum of Understanding. In the event Zeigler fails for
any reason to remain located in Frederick County for a three year period, upon
written demand of the IDA, RDJAM shall refund to the IDA such portion of the
$34,000.00 grant as is proportionate to the time remaining in the three year period.
For example, if Zeigler left the County at the two-year point, RDJAM would be
obligated, upon demand by the IDA, to refund one-third of the $34,000.00, or
$11,220.00. Also, if Zeigler fails to meet the following targeted objectives,
RDJAM 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 125
employees over a three year period with
130 full time employees (30 hours or
more) by June 30, 2001, or 2.) average annual machine and tool values at
$55,000.00. For example, if Zeigler was to only employ an annual average of 110
people over the next three years, RDJAM would repay 12% of the grant, or
$4,080.00. If Zeigler was to maintain an average annual machine and tool value of
$25,000.00 over the next three years, RDJAM would only repay $15,450.00.
These potential repayment amounts represent percentages of the agreed to
thresholds stated above in this memorandum. This Agreement shall not be
of the Stonewall Magisterial District, Frederick County, Virginia, fronting the
eastern side of U.S. Route 11 and along the northern side of Virginia Secondary
Road 668 and along the western side of the Martinsburg and Potomac Railroad, and
on the northern side by what is now or was formerly lands of Hemingway
Transport, Incorporated and (b) sewer capacity development.
Conditions: The obligation of RDJAM to locate its Facility in Frederick
County shall be subject to the following conditions:
(a) The status of title and access to the Site, as described above, shall be
satisfactory to RDJAM;
(b) There shall be no environmental issues or problems or hazardous
substances at, on, under or near the Site;
(c) The surveys of the Site shall be satisfactory to RDJAM.
(d) RDJAM shall secure private commercial lending at approximately
$1,500,000.00 to acquire, construct and equip the Facility;
(e) RDJAM shall have purchased the Site, described above, from the
Owner; known as Olan and David Hott.
(f) All incentives described herein shall be provided as and by when
indicated;
(g) There shall be no litigation, proceeding or investigation threatened or
pending regarding the Site or this Memorandum of Understanding;
Cooperation.
The County and the Commission agree to cooperate with
RDJAM , its architect, its equipment suppliers and its construction contractor in
connection with helping RDJAM meet its construction deadlines so that the Facility
is completed and a temporary Certificate of Occupancy is issued no later than
assigned by any party.
If RDJAM has not executed this Memorandum of Understanding by October
1, 1998, or has not begun the construction process for this project by December 1,
1998, this Memorandum of Understanding shall be null and void.
INDUSTRIAL DEVELOPMENT AUTHORITY OF THE COUNTY OF FREDERICK,
VIRGINIA
BY: /......6~~ C;~4.1 ~ J
DATE: 7/?/TT
FREDERICK COUNTY, VIRGINIA
BY:
WINCHESTER/FREDERICK COUNTY ECONOMIC DE
COMMISSION
~ ~ /JU w.~-tf
BY:. ~t-! ~
() DATE, ~ q/ I1CffJ
RDJAM LIMITED PARTNERSHIP
~~b~./"~ ~~
----
DATE: T..(.y "'~ /?78.
ZEIGLER MECHANICAL/ELECTRICAL CONTRACTORS, INC.
BY ~fffl/-
DATE: ~'? 1, /'19 ~
INDUSTRIAL DEVELOPMENT AUTHORITY
COUNTY OF FREDERICK VIRGINIA
I
RESOLUTION OF THE
INDUSTRIAL DEVELOPMENT AUTHORITY
OF THE COUNTY OF FREDERICK, VIRGINIA
(540) 665-5666
Fax (540) 667-0370
WHEREAS, Zeigler Mechanica!-Electrical Contractors, Inc., a Maryland
Cc"p0raUon, has expressed an interest in relocating and expanding its Frederick
COL:nty operations to Route 11 North in Frederick County, Virginia, and has
prcffered the following commitments:
:. By September 30, 1999, (a) complete construction of a 25,000 sq. ft.
bUilding per plans as approved by Frederick County; and (b) install $55,000 or more
in new machinery and equipment.
II. During the next three (3) years (Juiy 30, 1998 to July 30, 2001), (a)
maintain average annual employment of one-hundred twent'y' five (125) or more,
and (b) maintain machinery and equipment valued at $55,000.00 or more.
WHEREAS, in addition to the above commitments, Zeigler Mechanical-Electrical
Contract:)r, inc. has expressed its goal that the employment and machinery levels
will be expanded by 2001, leading to the creation of an estimated 15 total new
i
additional johs, and
WHEREAS, the Directors of the Industrial Development Authority of the County
of Frederick find that the purchase and development by Zeigler of 25.185 acres of
the St,)nevliC1l1 Magisterial District, the County of Frederick, Virginia, fronting the
eastern side of U.S. Route 11 and along the northern side of Virginia Secondary
Road 668 and along the western side of the Martinsburg and Potomac Railroad, and
on the northern side by what is now or was formerly lands of Hemingway
Transport, Incorporated, and in consideration of the above commitments, is
appropriate and in furtherance of the purposes for which the Authority was created,
and
WHEREAS, an agreement prepared by the County Attorney was presented to the
Directors, by which the Authority agrees to convey to the Corporation,
$34,000.00 to be applied to site development and septic development fees
affiliated with the above mentioned Site, in its development for suitable industrial
habitation;
NOW, THEREFORE, BE IT RESOLVED that the Agreement between the
Industrial Development Authority of the County of Frederick, Virginia, Zeigler
Mechanical-Electrical Contractors, Inc., and RDJAM. L.P is hereby confirmed and
107 North Kent Street, Winchester, Virginia 22601-5000
that said Agreement be, and it hereby is, approved as to form and content, and that
the Chairman of the Board of the Industrial Development Authority, and the
Secretary be, and they hereby are, authorized and empowered to execute the
Agreement on behalf of the Industrial Development Authority of the County of
Frederick, Virginia.
This will certify that this is a true copy of a Resolution adopted by a majority of the
Directors of the Industrial Development Authority of the County of Frederick,
Virginia, on July 1, 1998.