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HomeMy WebLinkAbout2004-1-674800050172. WPD ORDINANCE NO. 2004-1-6748 AN ORDINANCE AUTHORIZING AND APPROVING THE CITY OF PADUCAH GRANTING CERTAIN ECONOMIC INCENTIVES TO INFINITI MEDIA, INC. 0 BE IT ORDAINED BY THE CITY OF PADUCAH, KENTUCKY: WHEREAS, the City of Paducah 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 of Paducah 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 Media, Inc., 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 of Paducah, and WHEREAS, the City of Paducah, in consideration of the aforesaid commitment, approves and authorizes the following economic incentives to Infiniti Media, Inc. NOW THEREFORE, BEJT ORDAINED: The City of Paducah, participating equally with the County of�McCracken, will: 1. Provide Infiniti Media, Inc. (Infiniti) with monthly cash grants by making the first three (3) years lease payments on a building to be constructed by the Industrial Development Authority and thereafter occupied by Infiniti in Industrial Park West; the sum total of the aforesaid grants will not exceed $900,000.00, the City share being $450,000.00 2. 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. 3. Provide a rail line to the Infiniti building for a reasonable sum based upon competitive bids and/or competitive negotiated bids through the P&L Railroad. 4. 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. 5. Provide to Infiniti, for so long as the Commonwealth of Kentucky requires a letter of credit to secure its Industrial Development Bond Grant, an annual sum not to exceed $6,000, the City share being $3,000.00, and an aggregate sum not to exceed $50,000.00, the City share being $25,000.00. 6. 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. 7. The Mayor of the City of Paducah is hereby authorized and directed to sign all documentation required to carry out the purposes and intents of this Ordinance. 8. The adoption of this Ordinance is predicated upon Infiniti executing all legally necessary documents to bind the Company to its commitment to establish the aforesaid manufacturing facility, meeting its stated investments in machinery -tools and using its best efforts to meet or exceed the employment and payroll schedules, all as set forth in the City of Paducah and County of McCracken offering letter, dated January 2, 2004. M 9. This ordinance shall be read on two separate days and will become effective upon summary publication pursuant to KRS 424. yor ATTEST: (IDCity Clerk Introduced by the Board of Commissioners, January 20, 2004 Adopted by the Board of Commissioners, January 27, 2004 Recorded by City Clerk, January 27, 2004 Published by The Paducah Sun, February 1, 2004 so]