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Home My WebLink About2/21/1996 - Regular~ ROAN ,~, . p a 1838 ~affraru~ C~n~ixxt#~ ~# ~.~~t~~~.e ROANOKE COUNTY BOARD OF SUPERVISORS AGENDA FEBRUARY 21, 1996 12:00 NOON Welcome to the Roanoke County Board of Supervisors meeting. This is a special meeting for the purposes listed below. A. ROLL CALL B. EXECUTIVE SESSION pursuant to the Code of Virginia 2.1-344 (A) 5: Discussion concerning a prospective business or industry where no previous announcement has been made of the business' or industry's interest in locating in the community. C. CERTIFICATION RESOLUTION D. NEW BUSINESS 1. Consideration of an agreement for an economic development prospect for Valley Tech Park and appropriation of funds. E. ADJOURNMENT ® Recv~~ Paper < ~~ROAN~.~ ~• y Z ~, ~ 2 a 13 C~.~ixxtt~ o~~ ~~r~t~~1~e A'ORKING DOCUMENT -SUBJECT TO REVISION ROANOKE COUNTY BOARD OF SUPERVISORS ACTION AGENDA FEBRUARY 21, 1996 12:00 NOON iuwrr o' na eua+ma Welcome to the Roanoke County Board of Supervisors meeting. This is a special meeting for the purposes listed below. A. ROLL CALL BLJ ABSENT AT 12:05 P.M. (ARRIVED AT 12:46 P.M.), B. EXECUTIVE SESSION pursuant to the Code of Virginia 2.1-344 (A) 5: Discussion concerning a prospective business or industry where no previous announcement has been made of the business' or industry's interest in locating in the community. FM MOTION AT 12:07 P.M. URC WITH BI;T ABSENT C. CERTIFICATION RESOLUTION R-022196-1 BLJ MOTION TO ADOPT CERTIFICATION RESO EXECUTIVE SESSION ENDED AT 1:20 P.M. - BI.~T A~ItRIVED AT 12:46 P.M. AND PARTICIPATED IN EXECUTIVE SESSION RECESS TO ATTEND PRESS CONFERENCE FROM 1:30 TO 2:50 P.M. RECONVENED AT 2:50 P.M. D. NEW BUSINESS ® Hecyded Paper 1. Consideration of an agreement for an economic development prospect for Valley Tech Park and appropriation of funds. R-022196-2 HCN MOTION AUTHORIZE ECH TO EXECUTE PERFORMANCE AGREEMENT WITH IDA AND R R DONNELLEY AND SONS COMPANY AND ADOPT RESO APPROPRIATING $2.5 MILLION FROM UNAPPROPRIATED BALANCE AYES - FMS FFH, HCN, BLJ NAYS-NONE ABSTAIN - LBE REFRAINED FROM DISCUSSION AND VOTE BECAUSE OF POTENTIAL CONFLICT OF INTEREST.) E. ADJOURNMENT BLLT DECLARED MEETING ADTOURNED AT 3:00 P.M. 0~ pOANp~~ G ti' A Z z v ,ate 1838 MARY H. ALLEN, CMC CLERK TO THE BOARD P.O. BOX 29800 5204 BERNARD DRIVE ROANOKE, VIRGINIA 24018-0798 (703) 772-2005 FAX (703) 772-2193 MEDIA RELEASE February 21, 1996 FOR FURTHER INFORMATION CONTACT: Mary H. Allen, Clerk to the Board 540-772-2003 BRENDA J. HOLTON DEPUTY CLERK The Roanoke County Board of Supervisors has called a special meeting to be held on WednesdaX., February 21, 1996 at 12.00 noon at the Roanoke County Administration Center, 5204 Bernard Drive. Attached to this media release is a copy of the agenda outlining what will be discussed at the meeting. ® Recyded Paper O~ EtOAN ,1.~ L ~ ~ ~ z o a2 rasa COUNTY ADMINISTRATOR ELMER C. HODGE (540) 772-2004 C~.a~xxr# ~#~ ~~xxY.~.~.~e P.O. BOX 29800 5204 BERNARD DRIVE 21 February 1996 ROANOKE, VIRGINIA 24018-0798 FAX 1540) 772-2193 BOARD OF SUPERVISORS BOB L. JOHNSON. CHAIRMAN HOLI_INS MAGISTERIAL DISTRICT HARRY C. NICKENS, VICE-CHAIRMAN VINTON MAGISTERIAL DISTRICT LEE B. EDDY WINDSOR HILLS MAGISTERIAL DISTRICT FENTON F. "SPIKE" HARRISON, JR. CATAWBA MAGISTERIAL DISTRICT H. ODELL "FUZZY" MINNIX CAVE SPRING MAGISTERIAL DISTRICT 1540) 772-2005 We, the undersigned, being the five members of the Roanoke County Board of Supervisors do hereby waive any defects in the Notice of a Special Meeting of said Board to be held at the Roanoke County Administration Center, 5204 Bernard Drive, Roanoke, Virginia, on Wednesday, February 21, 1996, at 12:00 o'clock for the purpose of consideration of an agreement for an economic develop- ment prospect for Valley Tech Park. ~, J Harry C . ~KTi Odell "Fuz i Vice Chairman L " Ll z M nn Fento ~ F. "gpike" Haryrison, ~ Jr. n ~ 1 Lee B. Eddy I~l ~ Paul M. Mahoney County Attorney ® Recycled Paper O~ AOANp,~~ G ti A 2 L7 2 ~, ~~ 1838 COUNTY ADMINISTRATOR ELMER C. HODGE (540) 772-2004 ROANOKE, VIRGINIA 24018-0798 FAX (540) 772-2193 20 February 1996 Mrs. Mary H. Allen, Clerk Roanoke County Board of Supervisors P. O. Box 29800 Roanoke, VA 24018 Dear Mrs. Allen: BOARD OF SUPERVISORS BOB L. JOHNSON, CHAIRMAN HOLLINS MAGISTERIAL DISTRICT HARRY C. NICKENS, VICE-CHAIRMAN VINTON MAGISTERIAL DISTRICT LEE B. EDDY WINDSOR HILLS MAGISTERIAL DISTRICT FENTON F. "SPIKE" HARRISON, JR. CATAWBA MAGISTERIAL DISTRICT H. ODELL "FUZZY" MINNIX CAVE SPRING MAGISTERIAL DISTRICT (540) 772-2005 Please call a Special Meeting of the Board of Supervisors of Roanoke County, Virginia, for Wednesday, February 21, 1996, at 12:00 o'clock to be held at the Roanoke County Administration Center, 5204 Bernard Drive, Roanoke County, Virginia, for the purpose of consideration of an agreement for an economic develop- ment prospect for Valley Tech Park. Very truly yours, _ J i ~'~~''Z ~ ~ e ~, .f ~ ~., tom.- j /spb c:\wp5Vorms\m eeLing. spe ~.CY~~~ ~~ .a~xx~.~.C2~e P.O. BOX 29800 5204 BERNARD DRIVE ® Recycled Paper February 21, 1996 FOR FURTHER INFORMATION CONTACT: Anne Marie Green Director, Community Relations 540-772-2010 FOR IMMEDIATE RELEASE PRESS RELEASE ROANOKE COUNTY ANNOUNCES ECONOMIC DEVELOPMENT PROJECT Roanoke County and the Roanoke Valley Economic Development Partnership announced today that XX Company will be building a $102 million facility at the County's Valley TechPark site. The announcement was made today at a press wnference attended by various dignitaries, including the Honorable George A. Allen, Jr., Governor of Virginia. XX is an international printing company with offices and subsidiaries in 26 countries on five continents throughout the world. Founded in 1864, the tympany is headquartered in Chicago, and already has three subsidiary facilities in Virginia, one in Harrisonburg and two in Lynchburg. XX reported $6.5 billion in sales in 1994, with the majority of its business in the field of catalogs, magazines and books. The new Roanoke County plant will use a computerized process to print high-end books, and is expected to provide 310 new jobs by the end of 1999, with salaries ranging between $10 and $15 per hour. Roanoke County and the State of Virginia have offered a combined incentive package totalling $3.3 million, which will be spent on site preparation, job training programs, and utility connections. In return, XX has agreed to invest $16 million in constructing the facility and $85 million in capital equipment by the end of 1999. The County expects apay-back on these incentives through tax revenue within a four year period. "Phis is a truly great day for Roanoke County," said Bob Johnson, Chairman of the Roanoke County Board of Supervisors. "When we purchased the property for Valley TechPark, we wanted to fill the space (more) with high-tech, high quality companies. We have more than met that goal with the recruitment of XX. This will be the largest industrial investment ever in Roanoke County, and probably in the Roanoke Valley. XX is well known as a great corporate citizen, a great neighbor and a great place to work. The Board of Supervisors is pleased to welcome XX to Roanoke County." Fenton F. Harrison, Supervisor from the Catawba Magisterial District, agreed, stating that "XX is planning a significant contribution to the Catawba District, and will be providing hundreds of well paying jobs for the residents of the Roanoke Valley. I am pleased to have the opportunity to welcome XX to Valley TechPark and to Glenvar." The Roanoke Valley Economic Development Partnership started recruiting the company in May, 1995 and worked with Roanoke County and the Virginia Department of Economic Development to locate it at Valley TechPark. "XX is another example of the high-tech manufacturing base we are working to expand in the Roanoke Valley," said Beth Doughty, Executive Director of the Partnership. XX expects to begin construction in May and to have the facility operational by the end of 1997. (end) FACT SHEET XX Company XX is amulti-billion dollar international corporation, employing over 35,000 people in printing operations throughout the world, and grossed $6.5 billion in sales last year. The company is engaged in commercial printing, offering gravure, letterpress and offset printing and book printing and binding services. National publications which the company prints include Modern Maturity, Glamour, Mademoiselle, Time, People, Family Circle, TV Guide, Sports Illustrated, over 1,000 telephone directories and a large part of the J.C. Penney Catalog. The company is headquarter on Wacker Drive in Chicago, with branches and plants located in a variety of areas, including one in Harrisonburg and two in Lynchburg, Virginia. Subsidiaries are located in England, Ireland, Mexico and the Far East. o XX has agreed to invest $102 million in plant and equipment at Roanoke County's Valley TechPark Project by 1999 to construct a 450,000 sq. ft. facility for the printing of high-end books. The investment will be spent as follows: Land & Building $16,000,000 Capital Equipment $85,000,000 o Roanoke County will provide $2.5 million in improvements to Valley TechPark, to cover installation of a traffic signal at the entrance to the park, various infrastructure improvements such as clearing, rough grading, erosion and sediment control, connection fees, water and sewer line extension to the property line, and public pavement improvements and drainage work. o Roanoke County will convey 130 acres to XX, with the agreement that if XX does not proceed with the project as outlined in the agreement, the land will revert to the County. o Roanoke County will provide a local job training grant in the amount of $250 per employee, which will be administered by the Fifth District Employment and Training consortium. o The State of Virginia has agreed to provide over $1 million worth of incentives, including $460,000 from the Governor's Opportunity Fund Program and $450,000 for the Workforce Services Training Program. Based on these figures, Roanoke County expects to receive a return on its investment through tax revenues within four years. o XX will hire 312 full time employees by 1999. These will be new jobs, and are not the result of closing any facilities elsewhere. The salaries for these jobs will range between $10 and $15 per hour. o Future phases are planned to bring the total investment to over $140 million, in a 1 million square foot facility with over 750 full-time employees at the site. o Roanoke County and XX have entered into a performance agreement setting out the above terms and conditions. ~ y AGENDA ECONOMIC DEVELOPMENT ANNOUNCEMENT ROANOKE COUNTY, VIRGINIA WEDNESDAY, FEBRUARY 21, 1996 1:30 P.M. I. Welcome and Introductions -Elmer C. Hodge, County Administrator II. Announcement of New Company -the Honorable George A. Allen, Governor of Virginia. III. Vice Chairman, XX John Pecaric, Vice President and Division Director of the Roanoke Plant IV. Comments -The Honorable Bob L. Johnson, Chairman, Roanoke County Board of Supervisors V. Comments - Beth Doughty, Executive Director, Roanoke Valley Economic Development Partnership VI. Closing -Elmer C. Hodge RECEPTION FOLLOWING THE CEREMONY O~ (~OANp,1.~ L ~ ~ ~ Z Z v a~ 1838 COUNTY ADMINISTRATOR ELMER C. HODGE (5401 772-2004 P.O. BOX 29800 5204 BERNARD DRIVE ROANOKE, VIRGINIA 24018-0798 FAX (540) 772-2193 20 February 1996 Mrs. Mary H. Allen, Clerk Roanoke County Board of Supervisors P. O. Box 29800 Roanoke, VA 24018 Dear Mrs. Allen: BOARD OF SUPERVISORS BOB L. JOHNSON, CHAIRMAN HOLLINS MAGISTERIAL DISTRICT HARRY C. NICKENS, VICE-CHAIRMAN VINTON MAGISTERIAL DISTRICT LEE B. EDDY WINDSOR HILLS MAGISTERIAL DISTRICT FENTON F. "SPIKE" HARRISON, JR. CATAWBA MAGISTERIAL DISTRICT H. ODELL "FUZZY" MINNIX GAVE SPRING MAGISTERIAL DISTRICT f540) 772-2005 Please call a Special Meeting of the Board of Supervisors of Roanoke County, Virginia, for Wednesday, February 21, 1996, at 12:00 o'clock to be held at the Roanoke County Administration Center, 5204 Bernard Drive, Roanoke County, Virginia, for the purpose of consideration of an agreement for an economic develop- ment prospect for Valley Tech Park. Very truly yours, ~.5 /spb c:\wp5V orm s\meeting.spe C~o~xt#~ a~ ~o~x~n~e ® Recycled Paper C-~ AT A REGULAR MEETING OF THE BOARD OF SUPERVISORS OF ROANORE COUNTY, VIRGINIA, HELD AT THE ROANORE COUNTY ADMINISTRATION CENTER ON FEBRUARY 21, 1996 RESOLUTION 022196-1 CERTIFYING EXECUTIVE MEETING WAS HELD IN CONFORMITY WITH THE CODE OF VIRGINIA WHEREAS, the Board of Supervisors of Roanoke County, Virginia has convened an executive meeting on this date pursuant to an affirmative recorded vote and in accordance with the provisions of The Virginia Freedom of Information Act; and WHEREAS, Section 2.1-344.1 of the Code of Virginia requires a certification by the Board of Supervisors of Roanoke County, Virginia, that such executive meeting was conducted in conformity with Virginia law. NOW, THEREFORE, BE IT RESOLVED, that the Board of Supervisors of Roanoke County, Virginia, hereby certifies that, to the best of each members knowledge: 1. Only public business matters lawfully exempted from open meeting requirements by Virginia law were discussed in the executive meeting which this certification resolution applies, and 2. Only such public business matters as were identified in the motion convening the executive meeting were heard, discussed or considered by the Board of Supervisors of Roanoke County, Virginia. On motion of Supervisor Minnix to adopt the Certification Resolution, and carried by the following recorded vote: AYES: Supervisors Eddy, Minnix, Harrison, Nickens, Johnson NAYS: None A COPY TESTE: r ~• Mary H. Allen, Clerk Roanoke County Board of Supervisors cc: File Executive Session AT A SPECIAL MEETING OF THE BOARD OF SUPERVISORS OF ROANORE COUNTY, VIRGINIA, HELD AT THE ROANORE COUNTY ADMINISTRATION CENTER ON TUESDAY, FEBRUARY 21, 1996 RESOLUTION 022196-2 AUTHORIZING THE EXECUTION OF A PERFORMANCE AGREEMENT WITH R. R. DONNELLEY & SONS COMPANY, INC., THE BOARD OF SUPERVISORS OF ROANORE COUNTY, AND THE ROANORE COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY, AND APPROPRIATION OF FUNDS WHEREAS, the County of Roanoke and the Industrial Development Authority desire to promote and encourage the economic development of Roanoke County, Virginia, and the Roanoke Valley by the recruitment of new industry for the Roanoke Valley, in order to provide for increased employment and corporate investment in the County; and WHEREAS, this increased employment and investment constitutes a valid public purpose for the expenditure of public funds; and WHEREAS, the Company desires to support these economic development efforts of the County and the Authority by establishing its corporate facilities in the County. NOW, THEREFORE, BE IT RESOLVED by the Board of Supervisors of Roanoke County, Virginia, as follows: 1. That the execution of a performance agreement with R. R. Donnelley & Sons Company, Inc., Board of Supervisors of Roanoke County, and the Roanoke County Industrial Development Authority for the establishment of certain industrial development facilities in Roanoke County is hereby authorized and approved; and all actions taken by the officers and agents of the County in connection with this transaction are ratified and confirmed. 1 ~ - 2. That the County Administrator is authorized to execute said performance agreement on behalf of the County, upon form approved by the County Attorney. 3. That the sum of $2,102,500 is hereby appropriated and donated to the Industrial Development Authority of Roanoke County. That this appropriation of public funds is made from the County's Unappropriated Balance. 4. That the sum of $397,500 is hereby appropriated to the County Economic Development Department. This appropriation is made from the County's Unappropriated Balance. 5. That this resolution shall take effect immediately. On motion of Supervisor Nickens to adopt the resolution, and carried by the following recorded vote: AYES: Supervisors Minnix, Harrison, Nickens, Johnson NAYS: None ABSTAIN: Supervisor Eddy A COPY TESTE: ~~ Mary H. Allen, Clerk Roanoke County Board of Supervisors cc: File Diane D. Hyatt, Director, Finance Paul M. Mahoney, County Attorney Timothy W. Gubala, Secretary, IDA 2 ACTION NO. ITEM NO. ~~ AT A REGULAR MEETING OF THE BOARD OF SUPERVISORS OF ROANOKE COUNTY, VIRGINIA, HELD AT THE ROANOKE COUNTY ADMINISTRATION CENTER MEETING DATE: February 21, 1996 AGENDA ITEM: Approval of Performance Agreement with the Industrial Development Authority of Roanoke County, Virginia, and R. R. Donnelley & Sons Company, Inc. and an appropriation of funds to accomplish said Agreement COUN'~'y ADMINISTRATOR' S COMMENTS : ~ ~-yx~=~"'r ~.~`~ :% ~~ I~ County staff has negotiated a Performance Agreement to promote and encourage economic development in Roanoke County through the recruitment of new industry to provide for increased employment and corporate investment in Roanoke County. This Performance Agreement with the IDA and R. R. Donnelley & Sons Company, Inc. accomplishes this goal. STTMMARY OF INFORMATION: This Performance Agreement provides for the appropriation of $2,500,000 to complete certain Stage I infrastructure at ValleyTech Park in order that Donnelley will construct its manufacturing and distribution facilities in ValleyTech Park. Donnelley anticipates the following Project phases: PHASE INVESTMENT EMPLOYMENT TIMING I $ 63,000,000 175 1997 II $ 39,000,000 137 2000 III $100,000,000 338 To be determined 1 ~. `~_1 The County anticipates completing infrastructure improvements in stages at the following projected costs estimates: Stage I $2,500,000 ($2,102,500 Authority & $397,500 County Department of Economic Development) Stage II $2,100,000 The County will have to appropriate Stage II funding only when Donnelley commits to construction of its Phase II. The County will appropriate the bulk of these funds to the IDA, and the IDA will actually complete the infrastructure improvements and other incentives. In addition, the Commonwealth of Virginia has awarded a grant to the County on behalf of Donnelley. These grant funds are awarded on a reimbursement basis for the purpose of making on-site infrastructure improvements and the payment of certain fees. Finally, this Performance Agreement provides for certain penalties if Donnelley fails to complete its obligations. In order to accomplish this Performance Agreement the County must appropriate $2,500,000 to this Project in the current fiscal year. This appropriation shall be made from the Unappropriated Balance. In addition, the County may have to appropriate $2,100,000 from the Unappropriated Balance in subsequent fiscal years based upon Donnelley's completion of future expansions. It is anticipated that the County will recover its project investment within 4-5 years based upon anticipated tax revenues derived from this Project. It is recommended that the Board of Supervisors: 1. Authorize the County Administrator to execute the Performance Agreement on behalf of the County by and between the Roanoke County Board of Supervisors, the Industrial Development Authority of Roanoke County, Virginia, and R. R. Donnelley & Sons Company, Inc. 2 • ~ ~i 2. Appropriate $2,500,000 from the Unappropriated Balance to this Project, as follows: $2,10.2,500 to the Roanoke County Industrial Development Authority, and $397,500 to the department of Economic Development. Respectfully submitted, ~~~ ~/- Timo by W. Gubala Director, Economic Development Approved by, ~~~ Elmer C. Hodge County Administrator Action Approved ( ) Denied ( ) Received ( ) Referred to Motion by Vote No Yes Abs Eddy Harrison Johnson Minnix Nickens 3 : .- r AT A SPECIAL MEETING OF THE BOARD OF SUPERVISORS OF ROANORE COUNTY, VIRGINIA, HELD AT THE ROANORE COUNTY ADMINISTRATION CENTER ON TUESDAY, FEBRUARY 21, 1996 RESOLUTION AIITHORIZING THE EBECUTION OF A PERFORMANCE AGREEMENT WITH R. R. DONNELLEY & SONS COMPANY, INC., THE BOARD OF SUPERVISORS OF ROANORE COUNTY, AND THE ROANORE COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY, AND APPRO- PRIATION OF FIINDS WHEREAS, the County of Roanoke and the Industrial Development Authority desire to promote and encourage the economic development of Roanoke County, Virginia, and the Roanoke Valley by the recruitment of new industry for the Roanoke Valley, in order to provide for increased employment and corporate investment in the County; and WHEREAS, this increased employment and investment constitutes a valid public purpose for the expenditure of public funds; and WHEREAS, the Company desires to support these economic development efforts of the County and the Authority by establishing its corporate facilities in the County. NOW, THEREFORE, BE IT RESOLVED by the Board of Supervisors of Roanoke County, Virginia, as follows: 1. That the execution of a performance agreement with R. R. Donnelley & Sons Company, Inc., Board of Supervisors of Roanoke County, and the Roanoke County Industrial Development Authority for the establishment of certain industrial development facilities in Roanoke County is hereby authorized and approved; and all actions taken by the officers and agents of the County in connection with this transaction are ratified and confirmed. 1 2. That the County Administrator is authorized to execute said performance agreement on behalf of the County, upon form approved by the County Attorney. 3. That the sum of $2,102,500 is hereby appropriated and donated to the Industrial Development Authority of Roanoke County. That this appropriation of public funds is made from the County's Unappropriated Balance. 4. That the sum of $397,500 is hereby appropriated to the County Economic Development Department. This appropriation is made from the County's Unappropriated Balance. 5. That this resolution shall take effect immediately. 2 • • /2 :O o Noo ~ - eJC ec SCs s /,d r~ Gt~ai Y~rs - ~ ~» m da x. l~~h~ s iz>