HomeMy WebLinkAbout2004-4-678359
ORDINANCE N0.2004-4-6783
AN ORDINANCE AMENDING ORDINANCE NO. 2004-1-6748
GRANTING CERTAIN ECONOMIC INCENTIVES TO
INFINITI PLASTIC TECHNOLOGIES, INC.
WHEREAS, the City Commission previously adopted an ordinance granting certain
economic incentives to Infiniti Media, Inc., in order to induce significant expansion of industrial
development within the corporate boundaries of the City of Paducah; and
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WHEREAS, the City Commission does now desire to amend the ordinance to more
accurate reflect the economic incentives to be provided by the City of Paducah (the "City")
under the various documents relating to this public project.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF PADUCAH, KENTUCKY, AS FOLLOWS:
SECTION 1. Amendment. That Ordinance No. 2004-1-6748 is hereby amended to read
as follows:
WHEREAS, the City finds that economic development through the
attraction of new and expanding industry is a valid public purpose, positively
impacting the entire community by stimulating the local economy, expanding the
tax base and eliminating and/or preventing high rates of unemployment; and
WHEREAS, the City finds, that in order to competitively compete for
new, 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,
Infiniti Plastic Technologies, Inc., ("Infiniti") Torrance, California, has declared
its willingness to execute binding agreements committing it to the development
of a plastics injection molding manufacturing company within the corporate
boundaries of the City; and
WHEREAS, the City in consideration of the aforesaid commitment,
approves and authorizes the following economic incentives to Infiniti.
NOW THEREFORE, BE IT ORDAINED BY THE CITY
COMMISSION OF THE CITY OF PADUCAH, KENTUCKY, AS FOLLOWS:
The City participating equally with the County of McCracken, Kentucky (the "County"),
will:
1. Provide the financing, through the issuance of general obligation bonds, for the
acquisition, construction and installation of an approximately 100,000 square foot facility (the
"Project") which will be secured by all amounts received from the leasing of the Project to the
Paducah -McCracken County Industrial Development Authority (the "Authority") and the
sublease to Infiniti; the sum total of the amount financed for the Project will not exceed
$4,600,000.00, plus financing charges.
2. Provide Infiniti with monthly cash grants by making the first three (3) years lease
payments under the Capital Sublease Agreement dated March 24, 2004, among the Authority and
Infiniti; the sum total of the aforesaid grants will equal the first 36 months level, payments to
amortize principal and interest as required by the terms and conditions of the City and County's
anticipated General Obligation Bonds, Series 2004. For estimation purposes only, it is expected
that the total of said payments will not exceed $1,300,000. The aforesaid payments shall be
shared equally by the City and County.
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3. Provide to Infiniti annual relocation grants, on a descending schedule, for a nine (9)
year period; the sum total of the aforesaid grants will not exceed $91,512.00; the City share being
$45,756.00.
4. Provide a rail line to the Project and others in Industrial Park West for a reasonable
sum based upon competitive bids and/or competitive negotiated bids through the P&L Railroad.
5. Provide travel assistance, through Midwest Aviation, Inc., during the construction and
start-up phases; the sum total of the aforesaid grant will not exceed $30,000.00; the City share
being $15,000.00.
6. Provide for the construction of a rail spur to serve the Project and others in the
Industrial Park West; the sum total of the construction cost will not exceed $240,000.00, the City
share being $120,000.00.
7. Provide for the soil stabilization necessary for the accelerated construction of the
Project; the sum total of such expense will not exceed $250,000.00, the City share being
$125,000.00.
8. Provide, without further authorization, as a contingency, other reasonable and
necessary assistance for the construction of the project as it may require, in the opinion of the
City Manager provided that the said assistance does not exceed $30,000.00 during any fiscal
year, the City share being $15,000.00, and in the aggregate not more than $50,000.00 during the
first three (3) years of the project, the City share being $25,000.00.
9. The Mayor of the City is hereby authorized and directed to sign all documentation
required to carry out the purposes and intents of this Ordinance.
10. The adoption of this Ordinance is predicated upon Infiniti executing the Capital
Sublease Agreement dated March 24, 2004, meeting its stated investments in machinery -tools PII
and meeting or exceeding the employment level set forth in the aforesaid Capital Sublease
Agreement.
SECTION 2. Emergency. Pursuant to KRS 83A.060, the City Commission suspends the requirement of a
second reading and publication of this Ordinance. As grounds therefore, the City Commission does hereby
declare an emergency to exist as to the execution of this Ordinance. Specifically, any delay in the execution of
this Ordinance could adversely impact the Project.
SECTION 3. Effective Date. This Ordinance shall become effective upon the first reading of this
Ordinance.
Jr"7rAT.AA'f�.'
City Clerk
Introduced and adopted by the Board of Commissioners, April 5, 2004
Recorded by Tammara S. Brock, City Clerk, April 5, 2004
Published by The Paducah Sun, April 12, 2004
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