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Home My WebLink About2004-7-6833184 ORDINANCE NO. 2004-7-6833 AN ORDINANCE AUTHORIZING AND APPROVING THE CITY OF PADUCAH GRANTING CERTAIN ECONOMIC INCENTIVES TO MILLWORK PRODUCTS, INC., AND AUTHORIZING TRANSFER OF FUNDS FROM COMMISSION CONTINGENCY FOR SAID PROJECT WHEREAS, the leadership of the Greater Paducah Economic Development Council and the City of Paducah, Kentucky, strongly support Millwork Products' proposed expansion of the existing manufacturing facility in the City's Enterprise Zone; and WHEREAS, Millwork Products expansion project will have a positive impact on the entire community by stimulating the local economy, expanding the tax base, and reducing the unemployment rate; and WHEREAS, the community leaders recognize the importance of Millwork Products' current and future contributions to the economic base of the City; and WHEREAS, the City of Paducah finds, that in order to competitively compete to retain high quality employers and to induce significant expansion by existing industry, certain reasonable economic incentives are necessary; and WHEREAS, upon receiving offers of certain economic incentives, Millwork Products', has declared its willingness to execute binding agreements committing to the expansion of the current manufacturing facility within the City's Enterprise Zone; and WHEREAS, the City of Paducah, in consideration of the aforesaid commitment, approves and authorizes the following economic incentives to Millwork Products, Inc. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF PADUCAH, KENTUCKY, AS FOLLOWS: The City of Paducah, will: Section 1. Recitals and Authorization. The City hereby approves providing Millwork Products', Inc., with a $12,500.00 cash grant to offset the incurred costs of equipment relocation and commits up to $19,378.00 for demolition of structures adjacent to the current facility. Further the City hereby approves the Memorandum of Understanding to be entered into among the City, Greater Paducah Economic Development Council and Millwork Products' in substantially the form attached hereto as Exhibit A and made part hereof. It is determined that it is necessary and desirable and in the best interests of the City to enter into the Agreement for the purposes therein specified, and the execution of the Agreement is hereby authorized and approved. The Mayor of the City is hereby authorized to execute the Agreement, together with such other agreements, instruments or certifications which may be necessary to accomplish the transaction contemplated by the Agreement with such changes in the Agreement not inconsistent with this Ordinance and not substantially adverse to the City as may be approved by the official executing the same on behalf of the City. The approval of such changes by said official, and that such are not substantially adverse to the City, shall be conclusively evidenced by the execution of such Agreement by such official. Section 2. Conditional Authorization. The adoption of this Ordinance is predicated upon Millwork Products' executing the Agreement to bind Millwork Products' to its commitment to expand the current manufacturing facility within the City's Enterprise Zone, meet or exceed its stated investments in capital, building, and equipment, and use its best efforts to meet or exceed the employment and payroll schedules, all as set forth in the Agreement. Section 3. Transfer of Funds. The Finance Director is hereby authorized and directed to transfer the sum of $12,500.00, from the Commission Contingency Fund and other unexpended budgetary line items. MOU — Millwork Products L,_ �_� �� mm.,_mk,�.a �.�r�•-�r�::: an h:,l �uvl.a . v 1 �� dW�a�-_. ta��:z�lmn�ei�.�hm�rer��da6��r�.:�.��-��d��u: L.14i._a.. �:.,��. ..,.,m.�....,�m�,�n�,��i..n-....�,�m�.wel��n �e, ,. Q INI Section 4. Severabilitv. If any section, paragraph or provision of this Ordinance shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this Ordinance. Section 5. Compliance With Open Meetings Laws. This City Commission hereby finds and determines that all formal actions relative to the adoption of this Ordinance were taken in an open meeting of this City Commission, and that all deliberations of this City Commission and of its committees, if any, which resulted in formal action, were in meetings open to the public, in full compliance with applicable legal requirements. Section 6. Conflicts. All ordinances, resolutions, orders or parts thereof in conflict with the provisions of this Ordinance are, to the extent of such conflict, hereby repealed and the provisions of this Ordinance shall prevail and be given effect. Section 7. Effective Date. This Ordinance shall be read on two separate days and will become effective upon summary publication pursuant to KRS 424. ATTEST: Tammara S. Brock, City Clerk Mayor Introduced by the Board of Commissioners, June 22, 2004 Adopted by the Board of Commissioners, July 13, 2004 Recorded by Tammara S. Brock, City Clerk, July 13, 2004 Published by The Paducah Sun, July 20, 2004 Ord\Incentives - Millwork MOU — Millwork Products ON MEMORANDUM OF UNDERSTANDING This is a Memorandum of Understanding (MOU) between Millwork Products, Inc. (Millwork Products), the GREATER PADUCAH ECONOMIC DEVELOPMENT COUNCIL (GPEDC), and the CITY OF PADUCAH, KENTUCKY (City); WHEREAS, GPEDC and City leadership strongly support Millwork Products' proposed expansion of the existing manufacturing facility in the City's Enterprise Zone; and WHEREAS, Millwork Products expansion project will have a positive impact on the entire community by stimulating the local economy, expanding the tax base, and reducing the unemployment rate; and WHEREAS, the community leaders recognize the importance of Millwork Products' current and future contributions to the economic base of the City; and THEREFORE, Millwork Products, the City, and GPEDC agree to the following: A. Millwork Products commits to: 1. Locate the company's newest manufacturing expansion project in the City's Enterprise Zone adjacent to the current Millwork Products' existing facility. 2. Acquire the three parcels adjacent to the current Millwork Product existing facility. 3. Construct a 25,000 sq. ft. facility on the acquired property within 18 months of purchasing the property. employees within one year as a result of the announced 4. Hire up to 7 net newY expansion project. The anticipated number of employees per classification: • Exempt - 1 • Non-exempt — 6 5. Achieve a total annual expansion plant payroll within 18 months in excess of $135,000 as a result of the expansion project. 6. Achieve a cumulative capital investment of $1 million within 18 months for the expansion project only. • Approximately 85 percent of the total value must be in real property (land and building). 7. Pay average annual wages of new hires within 18 months as a result of the expansion project by the following breakdown: Exempt - $35,000 (plus benefits) Non-exempt - $8.00 per hour (plus benefits) 8. All new hires as a result of this expansion are offered a competitive benefits package. 9. Millwork Products agrees that in the event it fails to either meet the required levels of employment or investment for the Project by the end of the third year, unless another time has been mutually agreed to, then the cash grant funds provided above by the City shall be fully reimbursed, plus interest calculated by using New York prime rates. The City further agrees that in the MOU — Millwork Products 187 I _kA ..':c. -„t L�n�:�vt�el��.>,Jia:�s,IlmammY�uJ�dmu..�siWeYY,,.,�,�.�.•��.�::LL,. m.,«m�„w.,.�m�........:.....�:.��Ik,.a,_,«L,...,.._. .�� event the failure to attain or maintain the required levels of employment or investment by Millwork Products, in spite of the its good faith best efforts, were the result of unavoidable and unforseen circumstances, including, but, not limited to an Act of God or national emergencies, then the City, at their sole discretion, may: (a) seek a pro rata reimbursement, or (b) waive any reimbursement. 10. Enterprise Zone incentives have separate regulations and thresholds that must be met and maintained. 11. Millwork Products shall provide, at the company's expense, detailed verification reasonably satisfactory to the City of the company's progress on the capital investment and employment goals committed herein. Such progress reports will be provided at 18, 24 and 36 months from the date the first grant check is received by the company and at such other time(s) as the city may require. B. The Cily and GPEDC commit to: 1. The City commits up to $19,378 to offset the costs of demolishing the three structures on the property adjacent to the current Millwork Products facility. 2. The City offers a maximum grant of $12,500 to pay for equipment relocation costs incurred by Millwork Products. ap 3. The City offers an additional grant of $2,000 per employee for every employee hired above the 7 employees associated with the expansion. The maximum number is 4 employees and this total grant amount will not exceed $8,000. Each additional grant will be paid out after the employee is on the company payroll for one year with full benefits. 'J 4. The City will use its best faith efforts to expedite local permitting and waive or reduce all permit fees. 5. The City will use its best faith efforts to expedite the Millwork Products Enterprise Zone application. 6. GPEDC will use its best faith efforts to assist in coordination of project related activities. MILLWORK PRODUCTS Signature: Title Date: GREATER PADUCAH ECONOMIC DEVELOPMENT COUNCIL Signature: Title: Date: CITY OF PADUCAH, KENTUCKY Signature: Title: Date: MOU — Millwork Products