HomeMy WebLinkAboutMO #2640MUNICIPAL ORDER NO. 2640
A MUNICIPAL ORDER AUTHORIZING AND APPROVING A
MEMORANDUM OF UNDERSTANDING WITH VIWINTECH WINDOW &
DOOR, INC. FOR A PADUCAH ECONOMIC INCENTIVE PAYMENT IN AN
AMOUNT NOT TO EXCEED $172,000 WITH CERTAIN CONDITIONS AND
AUTHORIZING THE MAYOR TO EXECUTE ALL DOCUMENTS RELATED
TO SAME
WHEREAS, the City has a substantial interest in promoting economic growth
within the City, which includes the expansion of existing businesses and increased job
opportunities; and
WHEREAS, ViWinTech has received financial support from the KY Economic
Cabinet for the expansion of their existing facility and the expansion of their base employee
count as of the preliminary approval by KY Economic Development Cabinet; and
WHEREAS, ViWinTech has agreed to the terms and the conditions of financial
support from the KY Economic Development Cabinet whereby the company will employee
Forty (40) new full-time employees by 2026; and
WHEREAS, ViWintech has acquired additional property to facilitate the growth
and expansion of facilities and to increase their base employee count;
WHEREAS, the City of Paducah, in support of the 2021 agreement between
ViWinTech and the KY Cabinet of Economic Development, wishes to provide certain economic
incentives; and
KENTUCKY:
NOW THEREFORE, BE IT ORDERED BY THE CITY OF PADUCAH,
SECTION 1. Authorization. That the City of Paducah hereby authorizes and
approves a Memorandum of Understanding between the City of Paducah and ViWinTech
Window & Door, Inc., as attached hereto and made part hereof (Exhibit A) in an amount not to
exceed $172,000 with certain conditions as outlined in said Memorandum of Understanding.
Further, the Mayor is hereby authorized to execute said Memorandum of Understanding along
with all other agreements, instruments and certifications which may be reasonable and necessary
to accomplish the economic incentive.
SECTION 2. Payment. That the economic incentive payment authorized above
shall be funded by American Rescue Plan Act ("ARPA") funds received by the City of Paducah.
SECTION 3. Effective Date. This Order wil n full force and effect from and
after the date of its adoption.
George Bray, Mayor
ATTEST:
Al—
Lindsay Paris , ity Clerk
Adopted by the Board of Commissioners, September 13, 2022
Recorded by Lindsay Parish, City Clerk, September 13, 2022
MO\Economic Incentive — ViWinTech 2022
104x1011
MEMORANDUM OF UNDERSTANDING
This is a Memorandum of Understanding (hereinafter "MOU") made and entered into on this the
day of 2022 (hereinafter the "Effective Date"), between and among
VIWINTECH WINDOW & DOOR, INC. (hereinafter "Company"), a Kentucky based
Corporation, with principal offices located at 2400 Irvin Cobb Drive, Paducah, KY 42003 and
the CITY OF PADUCAH, KENTUCKY (hereinafter "City").
WHEREAS, the City has a substantial interest in promoting economic growth within the
City, which includes the expansion of existing businesses and increased job opportunities; and
WHEREAS, ViWinTech has received financial support from the KY Economic Cabinet
for the expansion of their existing facility and the expansion of their base employee count as of
the preliminary approval by KY Economic Development Cabinet; and
WHEREAS, ViWinTech has agreed to the terms and the conditions of financial support
from the KY Economic Development Cabinet whereby the company will employee Forty (40)
new full-time employees by 2026; and
WHEREAS, ViWintech has acquired additional property to facilitate the growth and
expansion of facilities and to increase their base employee count;
WHEREAS, the City of Paducah, in support of the 2021 agreement between ViWinTech
and the KY Cabinet of Economic Development, wishes to provide certain economic incentives;
and
WHEREAS, it is deemed necessary and advisable that this MOU be entered into by the
parties setting forth their agreement with respect to the economic incentives.
NOW, THEREFORE, in consideration of the foregoing premises and the mutual
covenants as herein set forth, the parties do covenant and agree as follows:
SECTION 1. INCENTIVE PAYMENT. The City commits to make an economic
incentive payment to the Company in an amount not to exceed $172,000 upon receipt of
submitted documentation that blighted property located at 2301 Irvin Cobb Drive has been
demolished. Economic incentive payment shall be based on actual cost for the remediation of the
blighted property located at 2301 Irvin Cobb Drive but not to exceed $172,000.
SECTION 2. INCENTIVE CONDITIONS. The Company hereby understands and
accepts that the economic incentive payment shall be based upon the following conditions:
• Economic Incentive is based on a job target, over base employment number of 288, of
forty (40) new full-time employees by December 31, 2026
• Economic Incentive is based on maintaining, or exceeding, said job target for a period of
five (5) years commencing on December 31, 2026 and culminating on December 31,
2031
• No later than January 15, 2027, and on January 15 of each year subsequent to 2027, and
through January 2032, ViWinTech shall submit to the City of Paducah's Finance
Department an accounting of all full-time employees currently in the employment of
ViWintech so as to affirm that the base number of employees has increased in accordance
to the terms of this agreement
• Economic Incentive shall be repaid to the City of Paducah, KY no later than January 30,
2032, based on a prorated schedule, as attached hereto and made part hereof (Schedule
A), should job target numbers not be met in accordance with above conditions as agreed
upon by both parties.
SECTION 2: TERMINATION. Either party may terminate this MOU upon failure of
any party to comply with any provision of this agreement provided any such party notifies the
other in writing of such failure and the breaching parry fails to correct the breach within thirty
(30) calendar days of the notice.
SECTION 8. ENTIRE AGREEMENT. This contract for services embodies the entire
agreement between the parties and all prior negotiations and agreements are merged in this
agreement. This agreement shall completely and fully supersede all other prior agreements, both
written and oral, between the parties.
[SIGNATURES TO FOLLOW]
Witness the signature of the parties as of the year and date first written above.
CITY OF PADUCAH
By
GEORGE BRAY, Mayor
VIWINTECH WINDOW & DOOR, INC
Lo
Title
SCHEDULE A
Proration Schedule for Economic Incentive
Employees
Proration
j
Employee j
Proration
Added
Factor
sAdded
Factor I�
i 0
1
$172000.00
21
0.475 1
$81,700.00 1
'. 1
0.975
$167700_00 !
22
0.45 1
$77,400.00
2
0.9i
$163,400A0
_'
23_!_0.425
$73,100.00
3
0.925
$159,100.00 j
24
0.4
$68,600.00
4
0.9�
$154,800.00
25 _i
0. 375
! $64,500.00
5
60.85
0.875_
$150 500.00
26 j
0.35
$60,200.00
$146,200.00_
270325
$55,900.001
7
0.825
$141,900.00 i
28 !
0.3
$51,600.00 j
0.8
$137,600.00
x_29
0.275$47,300.00
j
9
1 0.7T5
1 $133,300.00_
30
0.25
$43,000.00 1
100.75
ISI
$ 29,000.00
j 31
0.225 1
$38,700.00 1
11
0.725__J_$1247_00.0_0_;
_
j 32
0.2
$34,400.00 1
12
0.71
$120_400.00
33
0.175
$30,100.00
13
0.675
'
1 $116,100.00
j I
0.15
$25,800.00 j
14
0.65
$111,800.00
_34
35
0.125$21,500.00
I
15
I 0.625_
__$107,500.00
36_
0.1
$17,200.00 j
16
0.6
�_ $103,200.00
37
0.075
$12,900.00
17
0575
__$98,900.00 --- -
38 �_
_
0.05._,II
--
$8,600.00
18 ----,1--0-.5-5
$94,600.00 _
39
0.025
$4,300_00-�
19
0.525
$90,300.00 1
40-
_ _
0
20
05
_
$86,000.00