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HomeMy WebLinkAbout2009-12-7646ORDINANCE NO. 2009-12-7646 AN ORDINANCE OF THE CITY OF PADUCAH, KENTUCKY, APPROVING A MEMORANDUM OF UNDERSTANDING AMONG THE CITY OF PADUCAH, KENTUCKY, THE GREATER PADUCAH ECONOMIC DEVELOPMENT COUNCIL, AND CREDIT BUREAU SYSTEMS, INC., WITH RESPECT TO A PUBLIC PROJECT; AND AUTHORIZING THE EXECUTION OF VARIOUS DOCUMENTS RELATED TO SUCH MEMORANDUM OF UNDERSTANDING WHEREAS, the City of Paducah, Kentucky (the "City") has previously determined, and hereby further determines, that it is a public purpose to reduce unemployment in the City, to increase the City's tax base, to foster economic development within the City and to promote the development of a skilled workforce, all to the benefit of the citizens and residents of the City; and WHEREAS, the City has further determined that it is necessary and desirable to accomplish such public purposes that the City must proceed at this time to provide certain economic incentives to Credit Bureau Systems, Inc. ("Credit Bureau"), in order to induce Credit Bureau to expand its existing business and industry by expanding its customer service center (the "Project") within the boundaries of the City of Paducah, Kentucky; and WHEREAS, the City, Credit Bureau, and the Greater Paducah Economic Development Council ("GPEDC") find it necessary and advisable to set forth in summary form the intention of the Project and the economic incentives to be provided to partially defray the costs of the Project; and WHEREAS, in order to further the above described public purposes, it is necessary and desirable that the City now authorize the Memorandum of Understanding among the City, the GPEDC and Credit Bureau with respect to the Project and the economic incentives to be provided. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF PADUCAH, KENTUCKY, AS FOLLOWS: SECTION 1. Recitals and Authorization. The City hereby approves the Memorandum of Understanding among Credit Bureau, the City, and the GPEDC (the "MOU") in substantially the form attached hereto as Exhibit A and made part hereof. It is further determined that it is necessary and desirable and in the best interests of the City to enter into the MOU for the purposes therein specified, and the execution and delivery of the MOU is hereby authorized and approved. The Mayor of the City is hereby authorized to execute the MOU, together with such other agreements, instruments or certifications which may be necessary to accomplish the transaction contemplated by the MOU with such changes in the MOU 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 MOU by such official. SECTION 2. Severability. 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 3. Compliance With Open Meetings Laws. The 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 4. 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 5. Effective Date. This Ordinance shall be read on two separate days and will become effective upon summary publication pursuant to KRS 424. ATTEST:. -'� 020�—K Tammara S. Brock, City Clerk Introduced by the Board of Commissioners, December 8, 2009 Adopted by the Board of Commissioners, December 15, 2009 Recorded by Tammara S. Brock, City Clerk, December 15, 2009 Published by The Paducah Sun, December 18, 2009 OrdUncentives-Credit Bureau MEMORANDUM OF UNDERSTANDING This is a Memorandum of Understanding (MOU) made and entered into on this the day of -2009 (the ""Effective Date"), between and among CREDIT BUREAU SYSTEMS, INC., (COMPANY), a Kentucky based corporation, with principal offices located at 100 Fulton Court, Paducah, KY 42001; the CITY OF PADUCAH, KENTUCKY ("City"); and G.P.E.D.C.,. INC., doing business under the assumed name of the GREATER PADUCAH ECONOMIC DEVELOPMENT COUNCIL, a Kentucky not-for-profit corporation ("GPEDC"). WHEREAS, COMPANY proposes to expand the existing customer service operation with state-of-the-art products and services in the Information Age Park in Paducah/McCracken County (the'"Project'; and WHEREAS, the Project will have a positive impact on the entire community by stimulating the local economy, expanding the tax base, reducing unemployment, offering unique products and services to residents in a multi -state region; and WHEREAS, the City, and GPEDC leadership strongly support the expansion of the Project in Paducah, McCracken County, Kentucky; and WHEREAS, the community leaders recognize the importance of the current and future contributions of COMPANY to the economic and employment base of the City; and WHEREAS, in order to induce the expansion and installation of the COMPANY equipment and additional operations in Paducah/McCracken County, Kentucky, the City and GPEDC have agreed to provide certain economic incentives to the COMPANY for purposes of defraying some of the construction costs of the Project; 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 expansion, acquisition, installation, investment and employment of the Project and the economic incentives to be provided to defray some of the site improvement costs thereof; and WHEREAS, the economic incentives to be provided to COMPANY are in general conformity with the '"Guidelines For Providing Economic Incentives To Qualified Projects Located Within The Boundaries Of The City Of Paducah" previously adopted by the City. THEREFORE, COMPANY, the City; and GPEDC agree to the following: A. COMPANY commits to: 1. Locate the new COMPANY expansion in the Information Age Park. 2. Adhere to all of the regulations and requirements of the City Zoning Ordinance. 3. Adhere to all covenants and restrictions of the Information Age Park. 4. Invest a minimum of $1,800,000 by July 1, 2010 in the construction, installation, equipment, and completion of capital improvements for the utilization in the Project on the Property. 5. Construct a minimum of 10,000 SQ.FT. off the existing facility in the Information Age Park. 6. Employment: Maintain the current employment of 141 people. • Hire a minimum of 30 net new employees by year-end 2011, with at least 13 of the new employees to be hired by December 31, 2010. 7. Achieve an employee payroll in Paducah exceeding $5,500,000 by year-end 2011. 8. COMPANY agrees that in the event it fails to meet the required levels of employment and investment for the Project during the times previously noted, unless another time has been mutually agreed to, then the grant paid to COMPANY (paragraph B. 1) by the City shall be reimbursed on a pro rata basis, plus interest calculated using New York prime rates, on a pro rata basis for each job that was not created. For purposes of calculation of the pro rata amounts, it is agreed that if the projected net minimum employment level of 171 employees at the Paducah site is not reached by December 31, 2011, the pro rata amounts that shall be reimbursed will be $4,000 plus interest at New York Prime rate for each job not created. The City, and GPEDC further agree that in the event the failure to attain or maintain the required levels of employment or investment by COMPANY, in spite of its good faith best efforts, were the result of unavoidable and unforeseen circumstances, including, but, not limited to an Act of God or national emergencies, then the City and GPEDC, at their sole discretion, may: (a) seek a pro rata reimbursement, or (b) waive any reimbursement. 9. COMPANY shall provide, at the company's expense, detailed verification reasonably satisfactory to the City and GPEDC of the company's progress on the capital investment and employment goals committed herein. Such progress reports will be provided at 12, 18, 24, and 36 months from the date of the execution of this Agreement by the company and at such other time(s) as the City and GPEDC may require. The City and GPEDC reserve the right to require any reasonable verification procedures or process. 10. The Company agrees to continue its financial support of GPEDC by continuing its financial contribution to GPEDC's annual budget in an amount similar to its past contributions. B. The City and GPEDC commit to: 1. The city offers $120,000 to be taken in equal installments over 3 years. 2. The installments will start after the city receives a satisfactory "'Certificate of Occupation" issued by the City of Paducah Inspection Department. 3. The City will use its best efforts to expedite local permitting and waive or reduce all permit fees. 4. GPEDC will use its best efforts to assist in coordination of project and incentive related activities. C. Miscellaneous Provision: This Agreement represents the entire understanding and agreement reached between the parties, and all prior covenants, agreements, and representations are merged herein. The transaction contemplated by this MOU shall be contingent upon the approval and consent to the incentives, and the terms of this MOU by the governing body of the City. Subject to approval by the governing body of the City, this MOU shall be fully binding upon the parties hereto and shall be deemed fully enforceable in accordance with the terms and provisions hereof. Company shall not assign this MOU without first obtaining the written consent of the other parties, which written consent shall not be unreasonably withheld. If any provision of this MOU shall be held invalid under any applicable laws, such invalidity shall not affect any other provision of this MOU than can be given effect without the invalid provision, and, to this end, the provisions hereof are severable. This MOU shall be construed under the laws of the Commonwealth of Kentucky. At the time of closing all parties agree to execute all definitive documents required to effectuate the agreements and understandings herein above enumerated. [See next page for signatures] IN WITNESS WHEREOF the parties hereto have set their hands on the day and year written below. CREDIT BUREAU SYSTEMS, INC. CITY OF PADUCAH, KENTUCKY Signature: . Signature: Title: Date: GREATER PADUCAH ECONOMIC DEVELOPMENT COUNCIL Signature: Title: Date: Title: Date: