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Home My WebLink About2007-5-7282282 ORDINANCE NO. 2007-5-7282 AN ORDINANCE OF THE CITY OF PADUCAH, KENTUCKY, RATIFYING AND APPROVING A MEMORANDUM OF UNDERSTANDING AMONG THE CITY OF PADUCAH, KENTUCKY, THE GREATER PADUCAH ECONOMIC DEVELOPMENT COUNCIL, AND CROUNSE CORPORATION, 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, the City must proceed at this time to provide certain economic incentives to Crounse Corporation, ("Crounse") in order to induce Crounse to expand its existing business and industry by expanding and relocating its new corporate headquarters (the "Project") to Adams and Second Street within the boundaries of the City of Paducah, Kentucky; and WHEREAS the City, Crounse and the Greater Paducah Economic Development Council ("GPEDC") find it necessary and advisable to set forth in summary form the intention of each party as to the basic aspects 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 Crounse with respect to the Project and the economic incentives to be provided. WHEREAS, the economic incentives to be provided to Developer are in conformity with the "Guidelines for Providing Economic Incentives To Qualified Projects Located Within The Boundaries Of The County Of McCracken and the City of Paducah" previously adopted by the City. 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 Crounse, 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 interest 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 L_.__Mw'f_ .��v_'_k•-.mm�+xNm,wi.k�xwwYLwfuLL11i1�4xibYvimLL�iWNYa1LxY1 M approved. The City of Paducah hereby ratifies the Mayor's execution of the MOU, together with such other agreements, instruments or certifications which were 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, 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 Chapter 424. Y su�,& Tammara S. Brock, City Clerk Introduced by the Board of Commissioners, May 8, 2007 Adopted by the Board of Commissioners, May 22, 2007 Recorded by Tammara S. Brock, City Clerk, May 22, 2007 Published by The Paducah Sun, May 28, 2007 Ord\Incentives-Crounse MOU 0 284 EXHIBIT A MEMORANDUM OF UNDERSTANDING This is a Memorandum of Understanding (MOU) between the Crounse Corporation (Crounse), the GREATER PADUCAH ECONOMIC DEVELOPMENT COUNCIL (GPEDC), and the CITY OF PADUCAH, KENTUCKY (City). WHEREAS, GPEDC and the City leadership strongly support Crounse's proposed location of the new and expanded corporate headquarters in downtown Paducah; and WHEREAS, Crounse's corporate headquarters will continue to have a positive impact on the entire community by stimulating the local economy and expanding the tax base; and WHEREAS, the Enterprise Zone benefits expired in December of 2006 and these unique incentives were appreciated by Crounse; and WHEREAS, the community leaders recognize that the incentives offered to Crounse were necessary in retaining this important corporate headquarters for the City of Paducah; and WHEREAS, the community leaders recognize the importance of Crounse's continued and future contributions to the economic base of the City; THEREFORE, Crounse, GPEDC, and the City, agree to the following: A. Crounse commits to: 1. Locate the company's new and expanded corporate headquarters at the corner of Adams and 2nd streets in downtown Paducah. 2. Construct a new 15,000 sq. ft. corporate headquarters on the property previously noted by July 30, 2008. 3. Spend in excess of $4.5 million in constructing the new corporate headquarters by July 30, 2008. This includes an estimated $1.8 million that will be spent on construction materials and eligible for the Kentucky state incentive allowing for a sales tax refund on such purchases. 4. Maintain the current number of employees in Paducah/McCracken County at 14 people. 5. Maintain the current payroll of $2.5 million in Paducah/McCracken County. 6. Pay a minimum of $10,000 in property taxes annually to the City of Paducah after the new facility is completed and on the city tax records. 7. Locate the river portion of the new operation upstream. -.- �a.�::°. .� ._k_Ct .r nnry tmm<— - -.--I y -L. .�,.. �.. ...m '.:.,..�L—f4_JL .. d . i�exufu .._. I..: 8. Crounse agrees to give primary and special consideration to Paducah/McCracken County for any future employment and capital investment expansions. 9. Crounse 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 cash grant funds provided herein by the City shall be fully reimbursed, plus interest calculated using New York prime rates. The City further agrees that in the event of failure to attain or maintain the required levels of employment or investment by Crounse, in spite of the its good faith best efforts, where such failure is the result of unavoidable and unforseen circumstances, including, but, not limited to, an Act of God or national emergencies, then the City, at its sole discretion, may: (a) seek a pro rata reimbursement, or (b) waive any reimbursement. 10. Crounse shall provide, at the company's expense, detailed verification reasonably satisfactory to the City of the company's progress toward the capital investment and employment goals committed herein. Such progress reports will be provided on an annual basis and prior to receiving a grant check from the City, and at such other time(s) as the City may require. The city reserves the right to require any reasonable verification procedures or process. 11. The Company acknowledges that the financial and other assistance it has received, as described herein, has been made possible, in part, by reason of local businesses, governmental entities, and citizens contributing to support the economic development efforts of GPEDC. The company, as a good corporate citizen, does hereby agree, that to the best of its ability and means it will continue to be a contributor to GPEDC. B. The City and GPEDC commit to: 1. The City commits $55,000 to offset infrastructure related costs incurred by the company. The City will issue a check to Crounse after the city inspection department issues a certificate of occupancy to Crounse. 2. The City will improve Adams and 2nd streets, including installation of gutters, curbs, and sidewalks as shown in Exhibit 1. 3. . The City will add a bus stop at or near the corner of Washington and 3rd streets. 4. The City will waive all local permit fees and use its best faith efforts to expedite local permitting. 5. GPEDC will facilitate the KEIA incentive as needed. CROUNSE Signature:_ Title: Date: GREATER PADUCAH ECONOMIC DEVELOPMENT COUNCIL Signature: Title: Date: c" CITY OF PADUCAH, KENTUCKY Signature: Title: Date: