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HomeMy WebLinkAboutReso 95-252 - Approve & Authorize the Mayor to execute the Jobs Credit & Fee Deferral Payment Agrment between COR, Paul Ogden, & Seco Manufacturing CO Inc ;� , . � • RESOLUTION NO. �S'�-SZ--- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE THE JOBS CREDIT AlVD FEE DEFERRAL PAYMENT AGREEMENT BETWEEN THE CITY OF REDDING, PAUL C. OGDEN, AND SECO MANUFACTURING COMPANY, INC. /T/S HEREBYRESOLVED that the City Council of the City of Redding hereby approves the above-mentioned Jobs Credit and Fee Deferral Agreement. BE/TFURTHERRESOLVED that the Mayor of the City of Redding is hereby authorized and directed to sign the Agreement in the form attached hereto and incorporated herein by reference; and the City Clerk is hereby authorized and directed to attest the signature of the Mayor and to impress the official seal of the City of Redding thereto. /HEREBYCERT/FYthat the foregoing Resolution was introduced and read at a regular meeting of the City Council of the City of Redding on the 7th day of November, 1995 and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS P• Anderson, R. Anderson, McGeorge and Kehoe NOES; COUNCIL MEMBERS Murray ABSENT: COUNCIL MEMBERS None ABSTA/N: COUNCIL MEMBERS None � ��� _ ) . AVID A. K OE, Mayor ATTEST: CONNIE ST 0 MAYER it Clerk FORM APPROVED: � �-� �������- ��� � � (� W. LEONARD WIN�G E, City Attorney � 1 "V �G ' N ' � • JOBS CREDIT AND FEE DEFERRAL PAYMENT AGREEMENT aUALIFIED INDUSTRIAL PROJECT Owner: PAUL C. OGDEN, PRESIDENT Company: SECO MANUFACTURING CO.. INC. Mailing Address: P. 0. BOX 493592. REDDING, CA 96049 Physical Location: 4155 OASIS ROAD. MOUNTAIN LAKES INDUSTRIAL PARK APN(s): 1 14-300-04& 07 Building Permit No(s).: (Plan Check No(s)l: 95-0391 & 95-0516 I. PARTIES. This Agreement is entered into as of this 7th day of November, 1995, by and between the CITY OF REDDING, a municipal corporation, hereinafter referred to as "City," and Paul C. Ogden, individually, and SECO Manufacturing Co., Inc., hereinafter together referred to as "Owner." II. PURPOSE. The purpose of this Agreement is to set forth the terms and conditions under which City agrees to defer the collection of development fees or 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 the remodel and expansion of an existing industrial building and construction of a new 26,000 square foot building for the purpose of further expanding an existing manufacturing business. 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 1 1, 1995, 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. � • Jobs Credit and Fee Deferral Payment Agreement/SECO Mfg. Co., Inc. Page 2 IV. DEVELOPMENT FEES. The development fees eligible for deferral or application of jobs credit, pursuant to this Agreement are depicted on Exhibit "B." The total amount eligible to be deferred or subject to jobs credit, pursuant to this Agreement is S72,000.00, 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. INTEREST AND COLLECTION OF FEES. Beginning on the date of execution of this Agreement and continuing during the period of deferral, interest shall accrue on the fees deferred equal to the interest rate the City receives through the Local Agency Investment Fund, and shall be calculated quarterly through the period of deferral. The initial interest rate shall be 5.99%. Interest shall be due and payable only in the event of a default as set forth in Section IX. VI. SECURITY; RECORDATION. To secure payment of jobs credit covered under this Agreement, in the case of default or other circumstance, Owner shall execute or cause to be executed a deed of trust in favor of the City encumbering the Project site described in Exhibit "A" for the amount of the jobs credit. The executed deed of trust shall be submitted into escrow by City along with escrow instructions stating the following: A. The deed of trust shall be recorded secondary to an existing lien in favor of Country National/Tri Counties Bank and two (2) security instruments to be recorded by Mid Valley Bank associated with the federal Small Business Administration Loan Program. B. The City's deed of trust shall not be subordinate to any security instruments in favor of Owner, SECO Manufacturing Co., Inc., or any other private party. If requested by City, Owner agrees to obtain a fully executed Subordination Agreement from each such encumbrance or deed of trust. All other encumbrances shall be cleared, except real property taxes or City-approved assessment district taxes or liens not yet due. C. All document preparation, escrow, title, and recording fees shall be paid by Owner. D. Failure to record a properly executed Deed of Trust within one year of the date of approval by the City Council of this Agreement shall constitute a default of this Agreement and, at the election of City, the entire amount of development fees waived by this Agreement shall immediately become due and payable. VII. 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. � • Jobs Credit and Fee Deferral Payment Agreement/SECO Mfg. Co., Inc. Page 3 VIII. 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 72 jobs have been created or will be created within one year from the date a certificate of occupancy for the Project is issued. The jobs credit totals 572,000.00 or 51,000 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, or from the creation of the seventy-second (72) 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 tax returns submitted to the State of California for the Company 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 compliance. Said report is due no later than 30 days following the anniversary date of occupancy each year. D. At the conclusion of the effective period of this Agreement, the City shall issue a certificate of completion of jobs credit and a Deed of Reconveyance removing the City's lien from the property. IX. 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% of that number stated in Section VIII. For each year that the number of jobs maintained by Owner is 90% or greater of the number stated in Section VIII, an amount equal to 20% of the jobs credit shall be forgiven, provided that not less than 20% of the jobs credit shall remain in effect throughout the effective period of this Agreement. Such jobs shall always be calculated as those in addition to the number of employees existing at the project site as of February 1, 1994. 2. At any time during the effective period of the Agreement Owner ceases conducting business at the project site. A percentage of the jobs credit shall be forgiven for ' • • Jobs Credit and Fee Deferral Payment Agreement/SECO Mfg. Co., Inc. Page 4 each full calendar year that the number of jobs maintained by Owner was 90% or greater of the number stated in Section VIII as set forth in subparagraph (1). 3. At any time during the effective period of the Agreement, the number of jobs maintained by Owner falls below the number of employees existing at the project site as of February 1, 1994. B. City shall provide written notice of any default to Owner, including the amount of jobs credit which must be paid to City under the Agreement, along with accrued interest at the rate shown in Section V that has been deferred. 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 default of Owner. D. Paul C. Ogden, individually, and SECO Manufacturing, Inc. shall be jointly and severally liable for all payments and damages due to City as a result of Owner's default. X. 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. XI. ACCELERATION. Any transfer of ownership or possession or any occupation of the Project not consented to by City as provided in Section X, 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 repayment;and all jobs credit and deferred fees along with 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. � • Jobs Credit and Fee Deferral Payment Agreement/SECO Mfg. Co., Inc. Page 5 XII. 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. XIII. 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. XIV. 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. XV. 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. XVI. INSURANCE. During the term of this Agreement, Owner shall maintain insurance to protect against financial loss by reason of destruction or damage of the facility by fire or other hazards. Such hazard insurance shall specify full replacement value on the project for which the jobs credit or deferred fee was issued and name the City and its assigns as loss payee as their interests may appear. XVII. AUTHORITY. The undersigned hereby represent and warrant that they are authorized by the parties to execute this Agreement. XVIII. 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: ' • • Jobs Credit and Fee Deferral Payment Agreement/SECO Mfg. Co., Inc. Page 6 R�P�RT� i��#1��1I�I�:T� �:1�#�€�F� City Manager Department of Finance As shown at the City of Redding City of Redding beginning of this 760 Parkview Avenue 760 Parkview Avenue Agreement. Redding, CA 96001 Redding, CA 96001 IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first written above. CITY OF REDDING By DAVID A. KEHOE, Mayor ATTEST: OWNER By CONNIE STROHMAYER, City Clerk PAUL C. OGDEN FORM APPROVED: SECO MANUFACTURING CO., INC. By W. LEONARD WINGATE, City Attorney PAUL C. OGDEN, President ' • • EXHIBIT "A" LEGAL DESCRIPTION The real property referred to herein is situated in the State of California, County of Shasta, and is described as follows: Parcel 1 as shown on Parcel Map No. 80-77 for Economic Development Corporation and recorded August 30, 1977 in Book 13 of Parcel Maps at page 38, Shasta County Records. Assessor's Parcel Number 1 14-300-4 and 07 ' • • EXHIBIT "B" LIST OF FEES AND AMOUNTS Wastewater Fee S 17,712.00 Building Fee 3,867.50 Plan Check Fee 2,513.88 Electrical 781 .50 Mechanical 202.50 Plumbing 217.50 Micro Film 29.40 Fire Plan Check 62.00 Fire Sprinkler 81 .00 Capital Improvement 2,916.00 Electric 200.00 Storm Drain 2,304.00 Title Report 200.00 Water Meter 295.00 Water Connect 14,080.00 Sewer Connect 20,666.69 Miscellaneous* 5,871 .03 S 72,000.00 *'To be applied towards any eligible fee not covered by above listing. ' • • EXHIBIT "C" JOBS CREDIT JOB TITLE NUMBER OF POSITIONS Assembly 9 Assembly Foreman 1 Sewing 13 Sewing Supervisor 1 Machinist 6 Shipping 1 Shipping Supervisor 1 Welder 2 Maintenance 3 Electrician 1 Miscellaneous � Painter 2 Marketing 2 Production Manager 1 Account Clerk 2 Office Manager 1 Inventory Control 2 Quality Control 1 Engineering 1 Swing Shift Foreman 1 Unspecified 20 Total: 72 -�- � � i • EXHIBIT "D" ANNUAL CERTIFICATION OF JOBS STATUS JOBS CREDIT/FEE DEFERRAL PROGRAM Owner: Company: Mailing Address: Physical Location: Jobs Credit/Fee Deferral Agreement Date: Report Period: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I, , the undersigned, do hereby certify that as of 19 , (Company named above) employed persons in full-time, nonseasonal positions. Submitted on , 19 Signed Title