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HomeMy WebLinkAboutReso 2000-088 - Jobs Credit • • . RESOLUTION NO. 2000Fk - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE JOBS CREDIT AND FEE DEFERRAL PAYMENT AGREEMENT FOR CHATSWORTH PRODUCTS INC. WHEREAS, in order to further quality job growth and the City's economic development efforts, the City has determined that the Chatsworth Products, Inc. manufacturing facility is a qualified project to receive benefits from this program; and WHEREAS,Chatsworth Products Inc.will create and maintain 100 full-time jobs in the first year from the date of occupancy of the new manufacturing facility and maintain these jobs for a minimum period of five (5) years; and WHEREAS,the totals of$150,000 or$1,500 per job created will be applied to development related fees associated with the construction of the new manufacturing facility. NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Redding that the Mayor or his designee sign the Job Credit and Fee Deferral Payment Agreement. I HEREBY CERTIFY that the foregoing resolution was introduced and read at a special meeting of the City Council of the City of Redding on 4`''day of May 2000, and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: Cibula, Kight , McGeorge and Anderson NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Pohlmeyer ABSTAIN: COUNCIL MEMBERS: None 'OBERT C. ANDERSON, Mayor Attest: Form Approved: Connie Strohmayer, City Clio' W. Leonard Wingate, City Atto ey (o vCee4 &1 (/aK A3S is -7 ��% • ,V JOBS CREDIT AND FEE DEFERRAL PAYMENT AGREEMENT QUALIFIED PROJECT Company: Chatsworth Products Inc. Mailing Address: 31425 Agoura Road Westlake Village, CA 91361-4614 Physical Location: 6700 Airport Road Redding CA 96003 APN(s): 054-280-03 Building Permit No: Plan Check No. N/A I. PARTIES. This Agreement is entered into as of this 4th day of May, 2000, by and between the CITY OF REDDING, a municipal corporation, hereinafter referred to as "City," and Chatsworth Products Inc. a Corporation doing business in the manufacturing, and development of component racks/cabinets for the computer and telephone communication industries, hereinafter referred to as "Owner." II. PURPOSE. The purpose of this Agreement is to set forth the terms and conditions under which City agrees to issue jobs credit pursuant to the Jobs Credit and Fee Deferral Program as adopted and amended by the City Council (Council Policy No. 804), and in effect as of the date of execution of this Agreement, and Owner agrees to pay the fees as provided in this Agreement. III. TERMS AND CONDITIONS. Owner has applied to City and received certification from the City Manager or a designee that this industrial project is a "qualified project" (the "Project") consisting of a manufacturing/industrial facility. A. The property and Project are located within the City of Redding, County of Shasta, State of California; and the property is more particularly described in Exhibit "A," attached and incorporated by this reference. B. The application of Owner, dated January 6, 2000, for consideration under the Jobs Credit and Fee Deferral Program, a copy of which is on file with City, is incorporated by this reference as though fully set forth herein. Chatsworth Products Inc. Agreement,Page 1 C. The Owner will be occupying a temporary building located at 3600 Recreation Drive within the Mountain Lakes Industrial Park. This building/facility will be used while the new manufacturing facility located at 6700 Airport Road is under construction. This program and the deferment of any fees are associated with the new manufacturing facility on not the temporary building. IV. DEVELOPMENT FEES. The development fees eligible for application of jobs credit, pursuant to this Agreement are depicted on Exhibit "B." The total amount eligible to be subject to jobs credit, pursuant to this Agreement is $150,000.00, as stated in Exhibit "B," attached hereto and incorporated herein by this reference. Any and all development fees in excess of the amount stated above shall be the sole responsibility of Owner. V. SECURITY. Owner shall execute a promissory note for payment of all development fees which are deferred pursuant to the jobs credit. The promissory note plus interest at 7% per annum shall mature 5 years from the date of execution of this agreement, the occupancy of the new facility manufacturing facility or the creation of the 10th job, whichever is later. At maturity it shall be all due and payable, less the amount of jobs credits which have become fully vested as provided for in paragraph VIII, below. VI. BUILDING PERMIT. Upon receipt of notification of City Council approval of this Agreement, a building permit may be issued providing Owner has complied with all other requirements for issuance including payment of all required fees in excess of the amount stated in Section IV. VII. JOBS CREDIT. Exhibit "C," attached hereto and made a part hereof, illustrates the jobs credit for which the Project is eligible. The Owner hereby agrees that a total of 100 jobs will be created within the first year from the date of occupancy of the new manufacturing facility. The jobs credit totals $150,000.00 or $1 ,500.00 per job created. The following conditions shall apply: A. All jobs created subject to this Agreement shall be full-time positions and not seasonal in nature. B. The jobs shall be in existence for a minimum period of five (5) years from the date of execution of this Agreement, the occupancy of the new manufacturing facility, or the creation of the tenth job, whichever is later. The period of time during which the jobs shall be in existence shall be the "effective period" of this Agreement. C. Owner shall submit an annual report to the City certifying the number of full-time employees on the anniversary date of occupancy. Such report shall consist of a copy of the four most recent quarterly payroll registers and an executed Annual Certification of Jobs Status as presented in Exhibit "D," attached hereto and made a part hereof. The City shall have the right to review such company records as is necessary to verify Chatsworth Products Inc. Agreement,Page 2 compliance. Said report is due no later than 30 days following the anniversary date of occupancy within the temporary facility each year. D. At the conclusion of the effective period of this Agreement the City shall issue a certificate of completion of jobs credit to Owner. The corporate guarantee and any outstanding personal guarantees will thereupon expire. VIII. DEFAULT A. Failure on the part of the Owner to create or maintain the jobs for which credit is given by this Agreement shall constitute a default of the Agreement. A default shall have occurred if: 1 . Upon conclusion of the effective period of this Agreement, the average number of jobs maintained by Owner is less than 90 percent of that number stated in Section VIII. For each year that the number of jobs maintained by Owner is 90 percent or greater of the number stated in Section VIII, an amount equal to 20 percent of the jobs credit shall be fully vested provided that not less than 20 percent of the jobs credit shall remain in effect and subject to the requirements of this Agreement throughout the effective period of this Agreement. 2. At any time during the effective period of this Agreement Owner ceases conducting business at the project site. Twenty percent of the jobs credit shall be fully vested for each full calendar year that the number of jobs maintained by Owner was 90 percent or greater of the number stated in Section VIII as set forth in subparagraph (1 ). B. City shall provide written notice of any default to Owner, including the amount of jobs credit which are canceled by the City and lost by the Owner. C. City may waive any default of the Owner. The waiver by City of a default and of City's right to collect any balance due by virtue of the default shall not constitute a waiver by City of any subsequent default of Owner. IX. ASSIGNMENT; SUCCESSORS IN INTEREST. The rights, duties, and obligations of this Agreement may only be assigned by Owner with the prior written consent of City and the assumption by the assignee of all of the obligations of this Agreement. Consent to an assignment by City shall not be unreasonably withheld. Any assignment to which City has not consented shall be of no force and effect and shall constitute a default of this Agreement. In the event of a sale and leaseback of the real property by Owner, the new owner of the real property must agree to be bound by the terms of this Agreement, or the City may elect, in its sole discretion, to declare a default of the Agreement. In determining whether to approve an assignment, the City may, in its discretion, consider the financial capability of the assignee to comply with the terms of this Agreement. X. ACCELERATION. Chatsworth Products Inc. Agreement,Page 3 Any transfer of ownership or possession or any occupation of the Project not consented to by City as provided in Section XI, whether voluntary or involuntary, and regardless of whether or not Owner consents, including without limitation the filing of any proceeding in bankruptcy, seeking the protection of any similar State law provision concerning debtor protection, the transfer of corporate or partnership assets, the foreclosure by any senior lienor, or the entering into any real property sales contract shall constitute an event of default which accelerates the date for payment of development fees remaining due which have not been offset by fully vested jobs credits and all deferred fees plus accrued interest shall, at the City's discretion, immediately become due and payable in full. Should such an event of default occur during construction, City may cancel the building permit(s) and take any and all action necessary to halt all construction, occupation, or use of the Project. XI. CAPTIONS. The captions of the sections and subsections of this Agreement are for convenience only and shall not be deemed to be relevant in resolving any question of interpretation or intent. XII. SEVERABILITY. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision. XIII. ATTORNEY'S FEES AND COSTS. Owner agrees to pay all costs, including reasonable attorney's fees, in the event of any legal action brought to enforce or interpret any term or terms of this Agreement, the promissory note, the deed of trust, or the lien against the property. XIV. ENTIRE AGREEMENT. This Agreement represents the entire and integrated Agreement between City and Owner. This Agreement may be amended only by written instrument signed by both City and Owner. XV. INSURANCE. This provision has been removed. XVI. AUTHORITY. The undersigned hereby represent and warrant that they are authorized by the parties to execute this Agreement. XVII. NOTICES AND PAYMENTS. All written notices, reports, or payments permitted or required to be delivered by this Agreement shall be delivered or mailed to the following addresses of the respective parties: Chatsworth Products Inc. Agreement,Page 4 REPORTS PAYMENTS OWNER City Manager Department of Finance Chatsworth Products City of Redding City of Redding Inc. 760 Parkview Avenue 760 Parkview Avenue 31425 Agoura Road Redding, CA 96001 Redding, CA 96001 Westlake Village, CA 91 361-461 4 Chatsworth Products Inc. Agreement,Page 5 IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first written above. CITY OF REDDING By Michael Warren, City Manager ATTEST: Chatsworth Products Inc. CONNIE STROHMAYER, City Clerk Joseph Cabral, President FORM APPROVED: W. LEONARD WINGATE, City Attorney Chatsworth Products Inc. Agreement,Page 6 EXHIBIT "A" LEGAL DESCRIPTION The real property referred to herein is situated in the State of California, County of Shasta, City of Redding, and is described as follows: Property is generally described as part of AP# 054-280-03 approximately 937 by 600 feet to be identified as a parcel within a parcel map to be recorded by the City of Redding. Physical location is 4650 Lockheed Drive. Assessor's Parcel Number: 054-280-03 EXHIBIT "B" LIST OF FEES AND AMOUNTS (Estimates) BUILDING 10,622.03 PLAN CHECK 6,904.32 ELECTRICAL 2,898.11 MECHANICAL 512.79 PLUMBING 308.42 FIRE PLAN CHECK 300.00 FIRE SPRINKLER 144.00 CAPITAL IMPROVEMENT 8,000.00 ELECTRIC 4,500.00 STORM DRAIN 8,000.00 PARKS -0- TRAFFIC -0- WATER METER 1 ,035.00 WATER CONNECT 16,966.00 SEWER CONNECT 48,507.00 SEWER TAP 138.00 OTHER 15,000.00 $123,835.67 EXHIBIT "C" JOBS TO BE CREATED AFTER TWO YEARS OF OCCUPANCY JOB TITLE NUMBER OF POSITIONS MANAGEMENT Ten (10) SKILLED Twenty Five (25) UNSKILLED Sixty Five (65) TOTAL One Hundred (100) EXHIBIT "D" ANNUAL CERTIFICATION OF JOBS STATUS JOBS CREDIT PROGRAM Owner: Company: Mailing Address: Physical Location: Jobs Credit Agreement Date: Report Period: I, , the undersigned, do hereby certify that as of 20 , (Company named above) employed persons in full-time, nonseasonal positions. Submitted on , 20 Signed Title