HomeMy WebLinkAbout2012-9-7976151796
ORDINANCE NO. 2012 — 9-7976
AN ORDINANCE OF THE CITY OF PADUCAH, KENTUCKY,
APPROVING AN EMPLOYEE PAYROLL TAX INCENTIVE FOR
NEW FULL-TIME EMPLOYEESS AS PART OF AN ECONOMIC
EXPANSION PROJECT BY H. B. FULLER COMPANY UNDER THE
KENTUCKY BUSINESS INVESTMENT PROGRAM (KRS 154.32-010
TO KRS 154.32-100)
WHEREAS, H.B. Fuller Company, a Minnesota corporation ("COMPANY")
proposes to expand its existing manufacturing facility located within Paducah, McCracken
County, Kentucky, which expansion project will create at least 14 new Kentucky resident full-
time jobs for residents of Paducah, McCracken County, Kentucky (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 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, COMPANY has the option to locate the Project in another state;
and
WHEREAS, COMPANY has submitted an application to the State of Kentucky
under the Kentucky Business Investment Program (KRS 154.32-010 TO KRS 154.32-100)
("KBI") and has received preliminary approval from the Kentucky Economic Development
Finance Authority ("Authority") as an Approved Company for participation within the KBI
(Capitalized terms not otherwise defined herein shall have the same meaning as defined in KRS
154.32-010 TO KRS 154.32-100); and
WHEREAS, in order to induce the COMPANY to create the new Kentucky
resident full-time jobs for residents of Paducah, McCracken County, Kentucky, the City has
agreed to provide certain economic incentives to COMPANY in accordance with the KBI and a
Memorandum of Understanding to be entered into among the City and COMPANY (the
"MOU") in substantially the form attached hereto as Exhibit A.
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 authorizes and
approves the granting of a rebate to certain employees of COMPANY of the City's license fee as
defined under Article IV of the Paducah Code of Ordinance, Sections 106-183 and 106-184,
equal to 1 % of the taxable wages of the COMPANY's 14 new Kentucky resident full-time
employees working at the Project, which satisfies the criteria under the provisions of the KBI
(the "Local Incentive"), for a term of not longer than ten (10) years from the Activation Date as
stipulated in the Wage Assessment Agreement executed among the Authority and COMPANY
or the receipt by COMPANY of the total eligible KBI incentives and the Local Incentive in the
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amount of $250,000.00 (whichever shall occur first), provided, however, COMPANY remains in
full compliance with the provisions of the KBI and the MOU.
SECTION 2. Recitals and Authorization. The City hereby authorizes and
approves the MOU among the City and COMPANY in substantially the form attached hereto as
Exhibit A and made part hereof. 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 in this Ordinance 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 3. 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 4. 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 5. 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 6. Effective Date. This Ordinance shall be read on two separate days
and will become effective upon summary publication pursuant to KRS Chapter 424.
ATTEST:
City Clerk
Introduced by the Board of Commissioners, August 28, 2012
Adopted by the Board of Commissioners, September 11, 2012
Recorded by Tammara S. Sanderson, City Clerk, September 11, 2012
Published by The Paducah Sun, September 18, 2012
\ord\incentives-hbfuller 9-2012
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EXHIBIT A
MEMORANDUM OF UNDERSTANDING
151782
MEMORANDUM OF UNDERSTANDING
This is a Memorandum of Understanding ("MOU") made and entered into on this the
day of , 2012 (the "Effective Date"), between and among H.B. Fuller
Company, a Minnesota corporation with principal offices located at 1200 Willow Lake
Boulevard, Post Office Box 64683, St Paul, MN 55164 ("COMPANY"); and the CITY OF
PADUCAH, KENTUCKY, a municipality of the second class, ("City").
WHEREAS, H.B. Fuller Company, a Minnesota corporation ("COMPANY") proposes
to expand its existing manufacturing facility located within Paducah, McCracken County,
Kentucky, which expansion project will create at least 14 new Kentucky resident full-time jobs
for residents of Paducah, McCracken County, Kentucky (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 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, COMPANY has the option to locate the Project in another state; and
WHEREAS, COMPANY has submitted an application to the State of Kentucky under
the Kentucky Business Investment Program (KRS 154.32-010 TO KRS 154.32-100) ("KBI")
and has received preliminary approval from the Kentucky Economic Development Finance
Authority ("Authority") as an Approved Company for participation within the KBI (Capitalized
terms not otherwise defined herein shall have the same meaning as defined in KRS 154.32-010
TO KRS 154.32-100); and
WHEREAS, in order to induce the COMPANY to create the new Kentucky resident full-
time jobs for residents of Paducah, McCracken County, Kentucky, the City has agreed to provide
certain economic incentives to COMPANY in accordance with the KBI; 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 COMPANY in
accordance with the KBI.
THEREFORE, COMPANY, and the City agree to the following:
A. COMPANY commits to:
1. Prior to activation of the Local Incentive (as defined herein), COMPANY
shall become an Approved Company as defined by KRS 154.32-010(5).
2. Prior to activation of the Local Incentive, COMPANY shall incur Eligible
Cost of at least $1,854,401 at the Project.
3. Prior to activation of the Local Incentive, COMPANY shall create at least
14 new Kentucky resident full-time jobs at the Project with a minimum salary of $10.88/hour
plus benefits including health insurance, which jobs satisfies the criteria under the KBI, within
three (3) years of the execution of this MOU and maintains an annual average number of at least
14 new Kentucky resident full-time jobs over the term of the Local Incentive.
4. COMPANY shall maintain the 45 current employees which were
employed at the Project as of the date of this MOU.
5. COMPANY shall remains in full compliance with the provisions of the
KBI and this MOU.
6. COMPANY agrees to give primary and special consideration to
Paducah/McCracken County for future employment and capital investment expansions resulting
from the Project in Paducah/McCracken County.
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7. In addition to all documentation COMPANY provides the Authority so
that the Authority may monitor COMPANY's compliance with the provisions of the KBI,
COMPANY shall also provide to the City Finance Director, a duplicate copy of all
documentation provided by the COMPANY to the Authority, including without limitation
Kentucky Department of Revenue (KDOR) Schedule KBI, Schedule KBI-T, Annual KKBI
Report and all other relevant forms the company submits to KDOR pertaining to the KBI and the
KBI Incentive, and any other documentation deemed reasonably necessary by the City Finance
Director to confirm the COMPANY's continued compliance with the provision of the KBI and
this MOU and, therefore, eligibility of COMPANY for the Local Incentives.
B. The City commits to:
1. The City shall provide a rebate to certain employees of COMPANY of the
City's license fee as defined under Article IV of the Paducah Code of Ordinance, Sections 106-
183 and 106-184, equal to 1% of the taxable wages of the COMPANY's 14 new Kentucky
resident full-time employees working at the Project, which satisfies the criteria under the
provisions of the KBI (the "Local Incentive"), for a term of not longer than ten (10) years from
the Activation Date as stipulated in the Wage Assessment Agreement executed among the
Authority and COMPANY or the receipt by COMPANY of the total eligible KBI incentives and
the Local Incentive in the amount of $250,000.00 (whichever shall occur first), provided,
however, COMPANY remains in full compliance with the provisions of the KBI and the MOU.
C. Miscellaneous Provision:
This Agreement represents the entire understanding and agreement reached between the
parties, and all prior covenants, agreements, and presentations are merged herein. The
transaction contemplated by this MOU shall be contingent upon the COMPANY becoming an
Approved Company as defined by KRS 154.32-010(5), approval and consent to the Local
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 City, 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 affect 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 and
venue shall be with the McCracken Circuit Court. All parties agree to execute all definitive
documents required to effectuate the agreements and understandings herein above enumerated.
IN WITNESS WHEREOF the parties hereto have set their hands on the day and year written
below.
H.B. Fuller Company CITY OF PADUCAH, KENTUCKY
Signature:
Title:
Signature:
Title:
Date: Date:
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