HomeMy WebLinkAboutURA RES 2016-10 RES01 JLIJTI0NA0# 2016- 10
'URBAN RENEWAL AGEN'CN" OF TIIE CI I TYOF CALDWELL, IDAHO
G-RAN,-r AGRI AND WR.n,rI NCOMMITMENT
'11-11S AGREEMENT` and (_'0MMIT'M t-14"iN"I"" is rnade as ofthe l4th day, of Marcli, 2016,
by arid between "I'he LTRBAN IZ_,l_,4,NEWAI_,, AGENCY OF TIIE CITY OF' CALDWEIA,
11'")AM, sometimes ret"erred,to as, the Caldwell East Urban Renewal Agency, hereiti(at'tler referred
to as 'J.JR,A," and JOHNSON TTIERMAL S'ySJ`EMS, , fNC., an Idaho corporation of 1711
Slipstream 'Way,, Caldwelt, Idaho 83605, herelinca-fter refierred to as "(,""0MI,'IAN'Y."
A. WHEREAS, ,,1-1 he Urba,,n R.erie,VVafl Ag f ency o tile City of" Caldwell, fdaho
("Agency") is ati urban reriewal aagency, of'the State of ldc,,,t s t to the
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Idaho Urban, Renewa,l Law of 1,965, .1daho Code § 50-20101 et seq. Z1,11
B. WHEREAS, Pumiant 'to Idaho (--'ode § 50-2008, Agency has prepared a
"plati") for the rcnewa] of the Caldwell East LJIb(,mIZenewaI Area("Area,"); and
� I ' ty ("ouncil adopted and approved the Plan m
WIIERFAS fhe Caldwell (21
accordancewith Idaho lawby enactment of'Ordiliai,,ice No. 2,2,60 on Deceniber 21, 1,998 and has
similarly adopted by ordinancein accordcan,ce with, Idaho law every amerid.nient thereto, and,
I iced by
D. WHEREAS I'h.e Plan', as has I' m time to tinie been amended, is advat
the use of re'venue allocallon ftinding I.br Pr,iv'('ite infrastructure in-iprovements, t,he improvenient
0
,of deteriorated but1ditigs and sites, and, the renioval of conditions that result in, econonuc
un-derdevelopnientin,down.town Caldwell, Idaho; arid
'he Plan, as has, frotn. tirric to time been ame ded "s advanced, by
Es W HE RE A S, I n i
efflicancing 'the downtown Caldwell carea to rnake it more attract Ive for private development and
invest'In-ent and bring customerst'or existing businesses to the downtown area; and
i
F. WIIEREAS, "I'lie crucitIon of"new full-time equivalent employment opportunities
in the Area and the increased tax revenues reSLIlting ftoni bL:ismess developmetit, e xpansioll 01"
u i r "ie o,�j,
relocation, within the Area, i's beneficial -to tlle local ec( nomy and f rt], e s tl b'ectives and
goals of the 11,an- and
'U'R.A has deteri-nined that o-171'ering financtal incentives for capi.tal
("10 WIIEREAS,
iniprovemelits based upon denionstrable job creation in, the Area encourages either extsbrig
businesses to expcand or riew bUsinesses to enter die, Area and, 'thereby, l"urtliers the ob 0 ect*ve"I's 1111d
I ,
goals of the Plam arid
t
1110 WHEREASL-TA has,created the Business Lticent"ve Grant- and
C'RAN,"r A(laIEF.Alf,"N"I"ANDWRIJ-11"A CONIMFUNIENFPACT, I
I. WHEREAS, COMPANY has been determined to be eligible to receive a
Business Incentive Grant from the URA; and
J. WHEREAS, URA finds and declares that it is consistent with and furthers the
objectives and goals of the Plan to award a Business Incentive Program Grant to COMPANY
pursuant to the terms of the Proposal and this Agreement; and
K. WHEREAS, COMPANY, has expanded its existing business in the Area and
thereby created certain new full-time equivalent employment opportunities in addition to the
previous base of twelve (12) full-time equivalent positions in accordance with the Proposal
when URA agreed to provide to COMPANY a Business Incentive Grant; and
L. WHEREAS, URA previously approved Resolution 2015-13, on December 14,
2015, dealing with this subject matter; URA now wishes to revoke and replace said previously
approved Grant Agreement and Written Commitment with this updated version, containing
slightly different terms and a new start date for the grant period.
NOW, THEREFORE, In consideration of the Business Incentive Grant to COMPANY
described in this Agreement, COMPANY binds and obligates itself to the following terms,
provisions and conditions:
1. GRANT: In February 2013, URA approved COMPANY's grant application,
which outlined a commitment to make certain capital improvements and, in association with
such improvements, create an estimated fifteen (15) new full-time positions while retaining
twelve (12) full-time positions already existing as of September 30, 2012, as evidenced by the
State of Idaho Unemployment Insurance Wage Report submitted with the application (which
approved commitment, together with this grant, is sometimes hereinafter referred to as the
"Project"). URA acknowledges that the proposed capital improvements have been completed
and that, based on the information available to it as of the date of this resolution, up to fourteen
(14) qualifying new full-time positions have been created in association with the aforementioned
capital improvements. URA, by this Agreement, approves a grant award to COMPANY for
partial reimbursement of eligible Project costs, as defined in Idaho Code § 50-2903(14), which
partial reimbursements shall be paid as follows:
(a) For each qualifying new full-time position remaining in existence for the
duration of the two (2) year "grant period," which grant period shall commence January
11) 2016, and continue until December 31, 2017, URA will reimburse COMPANY for
$10,000.00 of its Project eligible capital improvements. Total reimbursements under this
grant shall not exceed $140,000.00.
(b) For purposes of the subsection (a) above, the term "qualifying new full-
time position(s)" shall refer to each full-time position with the COMPANY in excess of
twelve(12) full time positions, as represented on COMPANY's quarterly State of Idaho
GRANT AGREEMENT AND WRITTEN COMMITMENT-PAGE 2
Unemployment Insurance Wage Reports, which meets the qualifications set forth in
subparagraph (d) below; COMPANY acknowledges its responsibility to maintain a
minimum of twenty-six (26) qualifying full-time positions (i.e., fourteen "qualifying new
full-time positions") during the entire "grant period" in order to receive the maximum
reimbursements available hereunder, and that if COMPANY fails to maintain that
minimum, future payments may be reduced and/or reimbursements by COMPANY may
be required, pursuant to subsection (c), below. Provided, however, should a person
occupying a qualifying full-time position be deployed by an Armed Force of the United
States military, and should such deployment directly result in one or more quarters in
which said otherwise qualifying position fails to meet the minimum requirements for
qualification hereunder, said absence resulting therefrom shall not disqualify that position
from being considered as having existed during the entire or remainder of the "grant
period"; nevertheless, reimbursements associated with any such position by URA to
COMPANY shall only be made for those quarters in which the employee occupying that
position received the minimum quarterly wage requirements set forth in subsection (d),
below.
(c) The reimbursements contemplated in subsection (a) above shall be paid in
installments of $1,250.00 per quarter, for each qualifying new full-time position that
remains in existence for the entire two (2)year"grant period."Quarterly payments of that
amount will be made within 45 days following receipt by the URA of COMPANY's
State of Idaho Unemployment Insurance Wage Report representing the quarter in
question. All payments are expressly contingent on submission of approved reports
evidencing continued compliance with all terms and conditions of the grant. COMPANY
acknowledges that each of said installment payments is contingent upon COMPANY
maintaining at least fourteen (14) qualifying new full-time positions for the entire "grant
period" (i.e., twenty-six (26) total qualifying full-time positions for the entire `grant
period"), and that should COMPANY fail to maintain said minimum number of
qualifying new full-time positions, it shall reimburse URA for any overpayments
resulting therefrom in accordance with the terms of Section 4, below; COMPANY
expressly authorizes URA to discontinue, reduce, offset or suspend future installment
payments otherwise due to COMPANY, in order to recover such overpayments.
(d) In order to be considered a "qualifying" full-time position, each of the
twelve (12) retained full-time positions and each of the fourteen (14) new full-time
positions must pay a minimum hourly rate of$12.77 and provide a minimum employee
benefit of $1.73 per hour, in order to meet the minimum average hourly wage
requirement of $14.50 per hour, or pay an average quarterly wage of $6,640.40, as
reported on the quarterly State of Idaho Unemployment Insurance Wage Report.
GRANT AGREEMENT AND WRITTEN COMMITMENT-PAGE 3
2. USE OF FUNDS: COMPANY will only use grant funds for reimbursement of
expenses incurred in furtherance of the Project and in accordance with the Project terms.
3. COMPLIANCE INSPECTIONS: Observation and inspection visits by URA or
the City of Caldwell ("CITY") will be scheduled with the prior approval of COMPANY, which
shall not be unreasonably withheld or delayed. COMPANY shall not be responsible for any
expenses associated with such visits.
4. REPAYMENT OBLIGATION: COMPANY will repay any portion of the grant
funds not used for the purposes of the Project or in compliance with the Project terms when it
becomes apparent to COMPANY that such funds exist or within 30 days after notification by
URA. As noted in Section (1)(c) above, URA reserves the right to discontinue, reduce, or
suspend reimbursements and/or adjust future reimbursement payments if fails to maintain the
required minimum of twenty(20)total qualifying full time positions during the grant period.
5. PROJECT COORDINATOR: COMPANY hereby designates DARREL
"GUS" GUSTAVESON as Project Coordinator for the Project and grant compliance required by
this Agreement and the Project terms. The Project Coordinator shall direct the Project and
control the manner of its performance. In the event the Project Coordinator is no longer
employed by COMPANY, or becomes unable or unwilling to complete the Project for any
reason, COMPANY shall,within ten(10) days, notify URA in writing of such event and propose
a substitute Project Coordinator. URA shall have the option of (i) accepting the substitute
Project Coordinator; or(ii)terminating the grant.
5. REPORTS: Each quarter, COMPANY will submit State of Idaho
Unemployment Insurance Wage Reports, on forms provided by URA. Reports shall include, at
least, Grantee Information, Project Location and Description, Grant Information, Project
Compliance Statement, Reimbursement Request, and Grantee's Certification, and any objectives
and milestones consistent with the Project.
7. ACCOUNTS AND RECORDKEEPING: COMPANY shall maintain books
and records regarding the Project and the grant funds and make them available for inspection by
URA and/or CEDC upon request, subject to any limitations imposed by applicable law.
COMPANY shall maintain copies of any records and reports under the grant for a period of at
least five(5)years after the grant period ends.
S. WARRANTIES AND REPRESENTATIONS In order to induce URA to make
the grant described in this Agreement, COMPANY represents and warrants to URA that:
GRANT AGREEMENT AND WRITTEN COMMITMENT-PAGE 4
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•Juu.io sjgj jo uoiju.Tjsiuitupu aq, jolluotu of soinsuatu luuojljppu Xolduza xo sliodoi poljuiap
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,ANVdWoo jo uoiju&lgo 2uipujq puu p2al oq. sj ivaLUaatOV luuB slq L •i
C. SEVERABILITY: In the event that any provision or any part of a
provision of this Agreement shall be finally determined to be superseded, invalid, illegal or
otherwise unenforceable pursuant to applicable laws by an authority having Jurisdiction, such
determination shall not impair or otherwise affect the validity, legality, or enforceability of the
remaining provisions or parts of provisions hereof, which shall remain in full force and effect as
if the unenforceable provision or pat were deleted.
d. ENTIRE AGREEMENT: This Agreement, together with the documents
referred to herein, constitutes the entire agreement between the parties hereto. No oral
representations or other agreements have been made by the parties except as stated herein. This Agreement may not be changed in any way except as herein provided, and no term or provision
hereof may be waived except in writing signed by a duly authorized officer or agent.
C. VERIFICATION AND WARRANTY: COMPANY acknowledges and
represents to URA that the Proposal, and all statements therein, were true, accurate and
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complete, and remain true, accurate, and complete. Company acknowledges that URA has relied
on such statements in deciding to award a grant by the Agreement.
L PARAGRAPH HEADINGS AND TITLES: The title of any paragraph
of this Agreement is for convenience only and shall not be deemed to limit, restrict or alter the
content, meaning or effect thereof.
g
PUBLICITY: No press releases or publicity will be issued or conducted
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re ardin the Project without obtaining URA's comments and prior written approval thereof.
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h. NON-DISCRIMINATION: COMPANY warrants and represents that all
of its employees are treated equally during employment without regard to race, color, religion,
disability, sex,age,national origin, ancestry,marital status, or sexual orientation.
i. ATTORNEYS FEES: If any legal action or other proceedings is brought
for the enforcement of this Agreement, or because of an alleged dispute, breach, default or
misrepresentation in connection with any provisions of this Agreement, the successful or
prevailing y
revailin art or parties, shall be entitled to recover reasonable attorney's fees, court costs, and
all expenses including taxes) even if not taxable as court costs (including, without limitation, all
such fees, costs and expenses incident to appeals), incurred in that action or proceedings, in
addition to any other relief to which such party or parties may be entitled.
i. NOTICES: All notices, demands, or other writings required to be given
or made or sent in this Agreement, or which may be given or made or sent by either party to the
other, shall be deemed to have been fully given when (1) personally delivered, (2) sent by
GRANT AGREEMENT AND WRITTEN COMMITMENT-PAGE 6
e I fi I i retttrn rece'ipt reqUeSted or (3) sent by Federal- Express or other
ert led 1.,Jn'ted States ma'l,
eqUiVc"flent overnight,, letter deliver, to the fiollowing address o�r sucli other addresses as May 'be
provided by, the pareas in writing:
UJi-bari Reiiewa,l Agency ol"'flie City, o-f(,',"a1dwe11
411 Blaine Street
Caldwell, Idaho 83605
JO.HNSON J] SYSS"T"'EMS, Inc.
1711 Slipstream Way
Caldwell-, Ida1io 83605
1N WI,TNESS WHEREOF, the pa,rti,c-,,.,s,, fia,ve set flieff baild's of ,.e date(s)
written below.
CALDWELL URBAN RENEWAL AGENCY
..........
Signature:
as Date
By.- Nanie- Title
ATT'J'Ad"S'llm
OF Tjj
.............. 1000
0,1LPAP',
Caldwell I-Jrban,Renewal gency
Sec yet
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All
,ol'Ol-,.IN�S'ON'Tl-1,.ER.MA.1-4 SYSTEMS,,, IN'C.
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Title.:
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