Loading...
HomeMy WebLinkAbout2/19/2003 - RegularRoanoke County Board of Supervisors Agenda February 19, 2003 NOTE: THIS IS AN ADJOURNED MEETING FROM FEBRUARY 18, 2003 FOR PURPOSE OF AN ECONOMIC DEVELOPMENT ANNOUNCEMENT AND RELATED ACTION. THE MEETING WILL BEGIN AT 10:00 A.M. IN THE BOARD MEETING ROOM, ROANOKE COUNTY ADMINISTRATION CENTER, 5204 BERNARD DRIVE, SW, ROANOKE, VIRGINIA. Good afternoon and welcome to our meeting for February 19, 2003. Regular meetings are held on the second Tuesday and the fourth Tuesday at 3:00 p.m. Public hearings are held at 7:00 p.m. on the fourth Tuesday of each month. Deviations from this schedule will be announced. The meetings are broadcast live on RVTV, Channel 3, and will be rebroadcast on Thursdays at 7:00 p.m. and on Saturdays at 4:00 p.m. The meetings are now closed-captioned. Individuals who require assistance or special arrangements to participate in or attend Board of Supervisors meetings should contact the Clerk to the Board at (540) 772-2005 at least 48 hours in advance. A. ROLL CALL (10:00 a.m.) ROLL CALL AT 10:55 A.M. PRESENT: JPM, RCF, HOM ABSENT: MWA, JBC B. NEW BUSINESS 1. Request to authorize the County Administrator to execute a performance agreement between Roanoke County, the Industrial Development Authority of Roanoke County, and Integrity Windows, Inc.; to approve a request to the Commonwealth Transportation Board for Industrial Access Funds; and to appropriate necessary funds. (Elmer Hodge, County Administrator; Doug Chittum, Director of Economic Development) A-021903-1 R-021903-1.a JPM MOTION TO APPROVE STAFF RECOMMENDATION AYES: RCF, HOM, JPM NAYS: NONE ABSENT: MWA, JBC ti C. ADJOURNMENT JPM ADJOURNED THE MEETING AT 10:58 A.M. i ~ ACTION NO. A-021903-1 ITEM NO. B-1 AT A REGULAR MEETING OF THE BOARD OF SUPERVISORS OF ROANOKE COUNTY, VIRGINIA HELD AT THE ROANOKE COUNTY ADMINISTRATION CENTER MEETING DATE: February 19, 2003 AGENDA ITEM: Request to authorize the County Administrator to execute a Performance Agreement between Roanoke County, the Industrial Development Authority of Roanoke County and Integrity Windows, Inc. and to approve a request to the Commonwealth Transportation Board for Industrial Access Funds, and to appropriate necessary funds. SUBMITTED BY: Doug Chittum Economic Development Director APPROVED BY: Elmer C. Hodge County Administrator COUNTY ADMINISTRATOR'S COMMENTS: SUMMARY OF INFORMATION: Marvin Windows and Doors is the largest made-to-order wood window and door manufacturer in the world. Known for their high quality craftsmanship, Marvin has been recognized among industry leaders for almost one hundred years. Integrity Windows and Doors is a corporation owned by Marvin, which is located in Warroad, Minnesota. The Integrity window and door line was introduced by Marvin in 1994 and has quickly become the fastest growing residential line of windows in the United States. After an extensive site search, Integrity has chosen aforty-two acre industrial tract in Valley Gateway Center located off of Route 460 to locate a new manufacturing facility. The site is currently owned by Fralin and Waldron Properties II, Inc. and is under contract by the Roanoke County Industrial Development Authority (IDA). Phase One consists of a new 200,000 square foot manufacturing facility creating 150 new jobs within thirty months. Phase Two will double the facility to 400,000 square feet and create 200 additional new jobs for a total of 350 new jobs by 2008. is Integrity Windows, Inc. has executed a Performance Agreement between the Company, Roanoke County, and the Roanoke County IDA. The agreement outlines the terms and conditions by which the County with assistance from the IDA, will construct infrastructure improvements to accommodate their development (new access road, water and sewer relocation and connections) and offer an economic development grant to the company based on new future tax revenue created by the project. FISCAL IMPACT: $776,085 will be spent on the extension of the roadway, water and sewer relocation and the related connection fees. Based on new future tax revenue generated by the project, an Economic Development Grant will be awarded to Integrity bringing the total County commitment to Integrity to $1,000,000. Because future tax revenues will be utilized to determine the exact amount of the Economic Development grant eventually awarded to Marvin, only $450,000 is required for appropriation at this time. It should be noted that the State of Virginia has committed almost $1.7 million dollars to assist Roanoke County with this important economic development project. Any Industrial Access Funds received from the State will also benefit Integrity. STAFF RECOMMENDATION: Staff recommends the following: 1. Authorize the County Administrator to execute a Performance Agreement between Roanoke County, the Industrial Development Authority of Roanoke County and Integrity Windows, Inc., allowing for Integrity's' development of a new manufacturing facility in Roanoke County; (Agreement Attached) 2. Appropriate $450,000 from the Public Private Partnership Account to the IDA/Integrity Account to be used for industrial roadway construction and public utility relocation and connection fees; 3. Appropriate $500,000 revenue from the Governors' Opportunity Fund to be paid to Integrity Windows; and 4. Adopt the attached resolution requesting that the Commonwealth Transportation Board provide Industrial Access Road funding for Integrity Windows, Inc. VOTE: Supervisor McNamara motion to approve staff recommendation. Motion Approved. Yes No Absent Mr. Flora ® ^ ^ Mr. Church ^ ^ Mr. Minnix ® ^ ^ Mr. Altizer ^ ^ Mr. McNamara ® ^ ^ cc: File Doug Chittum, Director, Economic Development Paul M. Mahoney, County Attorney Diane D. Hyatt, Chief Financial Officer Rebecca Owens, Director, Finance Arnold Covey, Director, Community Development George Simpson, Assistant Director, Community Development r !.. AT A REGULAR MEETING OF THE BOARD OF SUPERVISORS OF ROANOKE COUNTY, VIRGINIA, HELD AT THE ROANOKE COUNTY ADMINISTRATION CENTER ON WEDNESDAY, FEBRUARY 19, 2003 RESOLUTION 021903-1.a REQUESTING THAT THE COMMONWEALTH TRANSPORTATION BOARD PROVIDE INDUSTRIAL ACCESS ROAD FUNDING FOR INTEGRITY WINDOWS, INC. WHEREAS, Integrity Windows, Inc. has purchased property located in the County of Roanoke, Virginia, and will soon enter into a firm contract to construct its facilities on that property for the purpose of producing windows; and WHEREAS, this new facility is expected to involve a new private capital investment in land, building, and manufacturing equipment of approximately $15,000,000 and Integrity Windows, Inc. is expected to employ 150 persons at this facility; and WHEREAS, manufacturing operations are expected to begin at this new facility on or about March of 2004; and WHEREAS, the property on which this facility will be located has no access to a public street or highway and requires the construction of a new roadway which would connect to Woods Farm Road (Route 834); and WHEREAS, the County of Roanoke hereby guarantees that the necessary right- of-way for this new roadway and utility relocations or adjustments, if necessary, will be provided at no cost to the Virginia Department of Transportation; and WHEREAS, the County of Roanoke hereby guarantees that the necessary right- of-way for this improvement, and utility relocations or adjustments, if necessary, will be provided at no cost to the Industrial Access Fund. 1 ~? NOW, THEREFORE, BE IT RESOLVED that the Roanoke County Board of Supervisors hereby requests that the Commonwealth Transportation Board provide Industrial Access Road funding to provide an adequate road to this new manufacturing facility; and BE IT FURTHER RESOLVED that the Roanoke County Board of Supervisors hereby agrees that the new roadway so constructed will be added to and become a part of the road system of the County of Roanoke. On motion of Supervisor McNamara to adopt the resolution, and carried by the following recorded vote: AYES: Supervisors Flora, Minnix, McNamara NAYS: None ABSENT: Supervisors Altizer, Church A COPY TESTE: Brenda J. Holton, CMC Deputy Clerk to the Board of Supervisors cc: File Doug Chittum, Director, Economic Development Commonwealth Transportation Board Fred Altizer, District Engineer, VDOT Paul M. Mahoney, County Attorney Diane D. Hyatt, Chief Financial Officer Rebecca Owens, Director, Finance Arnold Covey, Director, Community Development George Simpson, Assistant Director, Community Development 2 A Roanoke County Board of Supervisors Agenda February 19, 2003 NOTE: THIS IS AN ADJOURNED MEETING FROM FEBRUARY 18, 2003 FOR PURPOSE OF AN ECONOMIC DEVELOPMENT ANNOUNCEMENT AND RELATED ACTION. THE MEETING WILL BEGIN AT 10:00 A.M. IN THE BOARD MEETING ROOM, ROANOKE COUNTY ADMINISTRATION CENTER, 5204 BERNARD DRIVE, SW, ROANOKE, VIRGINIA. Good afternoon and welcome to our meeting for February 19, 2003. Regular meetings are held on the second Tuesday and the fourth Tuesday at 3:00 p.m. Public hearings are held at 7:00 p.m. on the fourth Tuesday of each month. Deviations from this schedule will be announced. The meetings are broadcast live on RVTV, Channel 3, and will be rebroadcast on Thursdays at 7:00 p.m. and on Saturdays at 4:00 p.m. The meetings are now closed-captioned. Individuals who require assistance or special arrangements to participate in or attend Board of Supervisors meetings should contact the Clerk to the Board at (540) 772-2005 at least 48 hours in advance. A. ROLL CALL (10:00 a.m.) B. NEW BUSINESS 1. Request to authorize the County Administrator to execute a performance agreement between Roanoke County, the Industrial Development Authority of Roanoke County, and Integrity Windows, Inc.; to approve a request to the Commonwealth Transportation Board for Industrial Access Funds; and to appropriate necessary funds. (Elmer Hodge, County Administrator; Doug Chittum, Director of Economic Development) C. ADJOURNMENT 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 19, 2003 AGENDA ITEM: Request to authorize the County Administrator to execute a Performance Agreement between Roanoke County, the Industrial Development Authority of Roanoke County and Integrity Windows, Inc. and to approve a request to the Commonwealth Transportation Board for Industrial Access Funds, and to appropriate necessary funds. SUBMITTED BY: Doug Chittum Economic Development Director APPROVED BY: Elmer C. Hodge County Administrator COUNTY ADMINISTRATOR'S COMMENTS: SUMMARY OF INFORMATION: Marvin Windows and Doors is the largest made-to-order wood window and door manufacturer in the world. Known for their high quality craftsmanship, Marvin has been recognized among industry leaders for almost one hundred years. Integrity Windows and Doors is a corporation owned by Marvin, which is located in Warroad, Minnesota. The Integrity window and door line was introduced by Marvin in 1994 and has quickly become the fastest growing residential line of windows in the United States. After an extensive site search, Integrity has chosen aforty-two acre industrial tract in Valley Gateway Center located off of Route 460 to locate a new manufacturing facility. The site is currently owned by Fralin and Waldron Properties II, Inc. and is under contract by the Roanoke County Industrial Development Authority (IDA). Phase One consists of a new 200,000 square foot manufacturing facility creating 150 new jobs within thirty months. Phase Two will double the facility to 400,000 square feet and create 200 additional new jobs for a total of 350 new jobs by 2008. A g_~ Integrity Windows, Inc. has executed a Performance Agreement between the Company, Roanoke County, and the Roanoke County IDA. The agreement outlines the terms and conditions by which the County with assistance from the IDA, will construct infrastructure improvements to accommodate their development (new access road, water and sewer relocation and connections) and offer an economic development grant to the company based on new future tax revenue created by the project. FISCAL IMPACT: $776,085 will be spent on the extension of the roadway, water and sewer relocation and the related connection fees. Based on new future tax revenue generated by the project, an Economic Development Grant will be awarded to Integrity bringing the total County commitment to Integrity to $1,000,000. Because future tax revenues will be utilized to determine the exact amount of the Economic Development grant eventually awarded to Marvin, only $450,000 is required for appropriation at this time. It should be noted that the State of Virginia has committed almost $1.7 million dollars to assist Roanoke County with this important economic development project. Any Industrial Access Funds received from the State will also benefit Integrity. STAFF RECOMMENDATION: Staff recommends the following: 1. Authorize the County Administrator to execute a Performance Agreement between Roanoke County, the Industrial Development Authority of Roanoke County and Integrity Windows, Inc., allowing for Integrity's' development of a new manufacturing facility in Roanoke County; (Agreement Attached) 2. Appropriate $450,000 from the Public Private Partnership Account to the IDA/Integrity Account to be used for industrial roadway construction and public utility relocation and connection fees; 3. Appropriate $500,000 revenue from the Governors' Opportunity Fund to be paid to Integrity Windows; and 4. Adopt the attached resolution requesting that the Commonwealth Transportation Board provide Industrial Access Road funding for Integrity Windows, Inc. -R AT A REGULAR MEETING OF THE BOARD OF SUPERVISORS OF ROANOKE COUNTY, VIRGINIA, HELD AT THE ROANOKE COUNTY ADMINISTRATION CENTER ON TUESDAY, FEBRUARY 19, 2003 RESOLUTION REQUESTING THAT THE COMMONWEALTH TRANSPORTATION BOARD PROVIDE INDUSTRIAL ACCESS ROAD FUNDING FOR INTEGRITY WINDOWS, INC. WHEREAS, Integrity Windows, Inc. has purchased property located in the County of Roanoke, Virginia, and will soon enter into a firm contract to construct its facilities on that property for the purpose of producing windows; and WHEREAS, this new facility is expected to involve a new private capital investment in land, building, and manufacturing equipment of approximately $15,000,000 and Integrity Windows, Inc. is expected to employ 150 persons at this facility; and WHEREAS, manufacturing operations are expected to begin at this new facility on or about March of 2004; and WHEREAS, the property on which this facility will be located has no access to a public street or highway and requires the construction of a new roadway which would connect to Woods Farm Road (Route 834); and WHEREAS, the County of Roanoke hereby guarantees that the necessary right-of-way for this new roadway and utility relocations or adjustments, if necessary, will be provided at no cost to the Virginia Department of Transportation; and WHEREAS, the County of Roanoke hereby guarantees that the necessary right-of-way for this improvement, and utility relocations or adjustments, if necessary, will be provided at no cost to the Industrial Access Fund. 1 ~~l NOW, THEREFORE, BE IT RESOLVED that the Roanoke County Board of Supervisors hereby requests that the Commonwealth Transportation Board provide Industrial Access Road funding to provide an adequate road to this new manufacturing facility; and BE IT FURTHER RESOLVED that the Roanoke County Board of Supervisors hereby agrees that the new roadway so constructed will be added to and become a part of the road system of the County of Roanoke. 2 O~ <;OANp,I.~ ~~ ~~ Z ~, ~ 2 °v a~ 1838 DEPARTMENT OF ECONOMIC DEVELOPMENT Integrity from Marvin Windows & Doors Announcement Roanoke County Wednesday, February 19, 2003 10:00 a.m. Roanoke County Administration Building 5204 Bernard Drive Roanoke, VA AGENDA Welcome Doug Chittum Director of Economic Development Roanoke County Introduction of the Governor Joseph McNamara Chairman Roanoke County Board of Supervisors Announcement The Honorable Mark R. Warner Governor Commonwealth of Virginia Remarks George G. Marvin President Integrity Windows, Inc. Roanoke County Response Elmer Hodge Roanoke County Administrator Acknowledgements Phillip F. Sparks Executive Director Rke Valley Economic Devel. Partnership Closing Doug Chittum P.O. BOX 29800 • ROANOKE, VIRGINIA 24018-0798 • (540) 772-2069 • FAX NO. (540) 772-2030 ® Printed on Recycled Paper ROANOKE COUNTY ATTORNEY'S OFFICE Roanoke County Administration Center 5204 Bernard Drive, S.W. -Room 431 Roanoke, VA 24018-0798 Phone 772-2007 -Fax 772-2089 MEMORANDUM To: Board of Supervisors From: Paul M. Mahoney Date: February 12, 2003 Subject: Performance Agreement Integrity Windows, Inc. This memorandum is submitted to you within the range of the attorney-client privilege, and as such, is confidential. Further, it is exempt from disclosure as a public record under the provisions of the Virginia Freedom of Information Act, Section 2.2-3705.A.7 and 14 Attached for your review is a copy ofthe Performance Agreement with Integrity Windows, Inc. Please review this document and if you have any questions, please contact either Jill Loope, Elmer Hodge, or me. Governor Warner will come to Roanoke County on Wednesday, February 19, 2005, at 10 a.m. to announce this economic development success. After the Governor leaves for another announcement in Roanoke City, staff will request the Board to approve this agreement and to authorize the County Administrator to execute it on your behalf. We will ask the Board to go into public session at that time to take this action. Therefore, you will be asked to adjourn from your February 18, 2003 meeting to February 19, 2003 at 10 a.m. The Governor's office has requested the County to keep secret this announcement until February 19, 2003. Therefore, I request the Board to keep confidential this agreement until that time. You may lawfully do so since this document was submitted to you within the scope of the attorney/client privilege. Further, this document is exempt from disclosure under the Virginia Freedom of Information Act pursuant to the Code sections cited above. PMM/sb c: Elmer Hodge Jill Loope THIS AGREEMENT made as of this .3o day of January, 2003, by and b etween the BOARD OF SUPERVISORS OF ROANOKE COUNTY, VIRGINIA, a political subdivision of the Cormnonwealth of Virginia, hereafter "the County", the INDUSTRIAL DEVELOPMENT AUTHORITY OF ROANOKE COUNTY, VIRGINIA (hereinafter referred to as "the Authority" ); aild INTEGRITY WINDOWS, INC., a Minnesota corporation, (hereinafter "the Company") . WITNESSETH WHEREAS, the Roanoke County Board of Supervisors and the Industrial Development Authority of Roanoke County, Virginia, desire to promote and encourage the economic development and vitality of Roanoke County and the Roanoke Valley through the recruitment of new business for the citizens of the Roanoke Valley, in order to provide for increased employment and corporate investment in Roanoke County; and WHEREAS, the Authority is the contract purchaser of an approximate 42.38 acre tract of real estate known as Tract "D" of the Valley Gateway Business Park, located off State Route 460 in the eastern portion of the County ("the Property" ), and WHEREAS, the Company desires to locate a new production facility and development in this business park ("the Project" }, and WHEREAS, the County and the Authority desire that the Company will create high quality employment opportunities for the citizens of the Roanoke Valley by the development of r this Project which will promote economic development and generate new tax revenues for Roanoke County; and WHEREAS, this increased employment and investment constitutes a valid public purpose for the expenditure of public funds. NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein, the parties agree to accomplish the following: 1. Site Development and real estate assignment. The County and the IDA will construct and install an industrial access road and public utility lines to serve the Property necessary for the Company' s development project. A. The County will extend water and sewer utility lines to the property line of Tract D. Public utilities will be available for connection to the building by the date of issuance of a final certificate of occupancy. The County estimates that water and sewer utility relocations will cost $53,650; and utility connections will cost $344,408. The County will provide one water and sewer connection based upon a 4" water service and a 12" fire service. The County will appropriate the surn of $398,058 to the IDA to reimburse the Utility Fund for these connection fees. B. The County will complete the construction of the industrial access road to the proposed site, the termination of which shall be at the property line of Tract D. Road improvements must be completed by Roanoke County by the date of issuance of a final certificate of occupancy for the Phase I building. The County estimates that its share of the industrial access 2 r road costs will be $228,027, and that the Commonwealth of Virginia will award it an industrial access road grant of $150,000. C. The Authority will assign its contract rights to 42.38 acres of real estate in the Valley Gateway Business Park to the Company, so that the Company can acquire said real estate from F&W Properties II, Inc., under the terms and conditions and for the purposes contained in paragraph 2 of this Agreement. This Property is more specifically described as Tract. D, Roanoke County Tax Map Number 50.01-O1-05.00. D. The County or the Authority shall apply to the Commonwealth of Virginia and use its best efforts to secure a grant of up to $500,000 from the Governor' s Opportunity Fund ("GOF") on behalf of the Company. The County and the Authority acknowledge that any GOF funds are for the sole use and benefit of the Company for this Project, subject to any conditions, requirements and obligations imposed on the GOF in connection with such funds. The County or the Authority shall apply to the Commonwealth of Virginia and use its best efforts to secure a grant of up to $604,200 for Workforce Services and training. The County and the Authority believe that the Commonwealth of Virginia may provide the Company with a Sales and Use Tax exemption of up to $585,000 for production related machinery used in this Project. 2. Site development by the Company. A. The Company will cause the following improvements to be made, subject to approvals by the County: (1) Phase I: Construct a 200,000 square foot manufacturing facility on the Property, install new or relocated equipment and provide employment. Company shall enter into a construction contract for these improvements and initiate construction within five (5) 3 months of this Agreement and shall complete construction as evidenced by the i ssuance o f a certificate of occupancy within fourteen (14) months of this Agreement. Phase I will result in an initial minimum investment by the Company of $9,000,000 in improvements, $6,000,000 in new and relocated equipment, and employment at this site of at least 215 people within 48 months of this agreement. (2) Phase II: This facility will contain a minimum of 190,000 square feet addition for manufacturing with construction completed within 6 years of the date of this Agreement. Phase II will result in a minimum investment of $10,000,000 in new building construction and $7,000,000 in new and relocated equipment. The Company will employ at least 350 people at this site within 6 years of the date of this Agreement. 3. Procedures for the reimbursement of Authority funds to the Company. The County shall appropriate a sum sufficient to the Authority as an Economic Development Incentive Grant to fulfill the purposes of this Agreement. This sum sufficient amount shall be equivalent to six years of new local tax revenues ("new local tax revenues" mean local real estate taxes and machinery and tools taxes) generated by this Proj ect, less amounts expended by the County and the Authority for public infrastructure improvements described in paragraphs 1.A and l.B. It is estimated that the amount of this economic development incentive grant will be $373,915. The Authority, upon receipt of the appropriation of funds from the County, will award an economic development incentive grant to the Company for the construction of its improvements and facilities, and new employment benefiting the Property in the following manner: 4 L A. The Authority agrees to appropriate to the Company an amount equivalent to six years of new local tax revenues generated by this Project, less amounts expended by the County and the Authority for public infrastructure improvements described in paragraphs 1.A and 1.B, for the construction by the Company of new facilities and improvements, and for new employment on the Property. Reimbursements shall be made as follows: (i) new annual local tax revenues shall be divided equally between the County and the Company until the County's expenditures for public infrastructure improvements have been recovered, (ii) thereafter the new annual local tax revenues shall be paid to the Company, and (iii) payments shall be made in six (6) annual installments. Such payments will be made over a six (6) year period in accordance with this Agreement after an occupancy permit is issued for the Project and after the inspection and acceptance thereof by the County and/or the Commonwealth of Virginia. The Company shall provide such employment, financial and tax revenue data as may be reasonably required by the Authority so that the Authority may calculate the reimbursement within sixty (60) days of the end of each calendar year. The Authority shall pay such amount within thirty (30) days after receipt by the Authority of the data. B. If the Company terminates this Project or fails to construct the improvements for the Project described in paragraph 2.A. lwithin fourteen (14) months of the date of this Agreement, then the Authority shall be relieved of any obligation to the Company for any economic development incentive grant. In addition the Company shall reimburse the County and the Authority for utility relocation and industrial access road expenditures. C. If the Proj ect constructed on the Property fail to generate for the County new annual local tax revenues in the amount of One Million Dollars ($1,000,000.00) prior to December 31, 2009, then the Company shall reimburse the Authority based upon the difference between the 5 r actual local tax payments attributable to the Project and the total of County economic development incentives ($1,000,000.00 for utility relocations, utility connections, industrial access road extension and economic development grant). This reimbursement shall be paid within sixty days of the end of the calendar year, but no later than March 1, 2010. D. If the Project constructed on the Property fails to generate the full-time employment ("full time employment" being defined as an employee scheduled for the Company's normal work week and eligible for Company benefits) as p rovided i n p aragraphs 2A(1) and 2A(2) by more than 10%, then the Authority shall reduce its economic development incentive grant, as follows: If the Company has less than 81 full-time employees employed at this Project in Roanoke County within 24 months of this Agreement, then the economic development incentive grant shall be reduced by $1,000 for each full-time employee below this goal. If the Company has less than 126 full-time employees (or full time equivalents of no more than 10% of the total workforce) employed at this Project in Roanoke County within 36 months of this Agreement, then the economic development incentive grant shall be reduced by $1,000 for each full-time employee below this goal. If the Company has less than 194 full-time employees (or full time equivalents of no more than 10% of the total workforce) employed at this Project in Roanoke County within 48 months of this Agreement, then the economic development incentive grant shall be reduced by $1,000 for each full-time employee below this goal. 6 If the Company has less than 252 full-time employees (or full time equivalents of no more than 10% of the total workforce) employed at this Project in Roanoke County within 60 months of this Agreement, then the economic development incentive grant shall be reduced by $1,000 for each full-time employee below this goal. If the Company has less than 315 full-time employees (or full time equivalents of no more than 10% of the total workforce) employed at this Project in Roanoke County within 72 months of this Agreement, then the economic development incentive grant shall be reduced by $1,000 for each full-time employee below this goal. 4. If Tecton Products, L.L.C. locates on the property by June 30, 2006, and constructs a new facility, then the County and the Authority shall award an incentive package to Tecton using similar methods as those utilized in evaluating the liitegrity project. Any grant is subject to future appropriations by the Board of Supervisors of the County to the Authority, and would be based upon new annual local tax revenues generated by any new development. 4. The Company shall have the right to assign this Agreement to a separate entity provided that a17y such assignment shall not relieve the Company of its obligations herein. 5. If any party is unable to perform its commitments under this Agreement by reason of force majeure, then that party shall not be deemed to be in default of its obligations under this Agreement, and any deadlines for the performance of its obligations shall be extended for a tune equal to the time period of the force majeure event, plus ten days. The term "force majeure" as used herein shall include without limitation acts of god: hurricanes, floods, fire, tornadoes, earthquakes, storms; strikes or other industrial d isturbances; a cts o f p ublic e neinies; o rders o f 7 governmental authorities; insurrections; riots; epidemics; acts of third parties, contractors, subcontractors, and suppliers; or any cause or event not reasonably within the control of that party. 6. This Agreement shall be governed by and all disputes related hereto shall be determined in accordance with the laws of the Commonwealth of Virginia. 7. This Agreement and any payments of public funds from public funds is subject to future appropriations by the Board of Supervisors to the Authority. IN WITNESS WHEREOF, the undersigned have executed this Agreement the day and year first above written. BOARD OF SUPERVISORS OF ROANOKE COUNTY, VIRGII~TIA By: Elmer C. Hodge, County Administrator II~TDUSTRIAL DEVELOPMENT AUTHORITY OF ROANOKE COUNTY By: Seen: County Attorney STATE OF VIRGINIA Chairman 8 c COUNTY OF ROANOKE, to-wit: The foregoing instrument was acknowledged before me this day of January, 2003, by Elmer C. Hodge, Jr., on behalf of the Board of Supervisors for Roanoke County, Virginia. Notary Public My Commission expires: / / STATE OF VIRGINIA COUNTY OF ROANOKE, to-wit: The foregoing instrument was acknowledged before me this day of January, 2003, by Roanoke County, Virginia. Chairman of the Industrial Development Authority of Notary Public My Commission expires INTEGRITY WINDOWS, INC. Its: ,~1~~5/•~~y~ .f STATE OF : ~rs~v~sa~.~ CITY/COUNTY OF f? ©S~"Q~ , to-wit: The foregoing instrument was acknowledged before me this ~ O day of January, 2003, by G~olr~~ G ,/~~,~y~, as ~RE~~E~T of Integrity Windows, Inc.. otary Public M Commission ex Tres: / / 3/ / o~ "' ~~ y p ~ , EP_LPOT J. LARSOFJ ~'a~ NOTARY PUBLtC•MINNESQTA ~ ~~,~=: ~ ~~;~ .x ray Commission Expires Jan. 31, 2005 ru 10 From: Brenda Holton To: Doug Chittum Date: 2/19/03 1:25PM Subject: Re: Resolution Commonwealth Transportation Board Doug, thanks, I will prepare the resolution and give a certified copy to George. I am also preparing the Board report as an action item since there are other parts of the Staff recommendation. Iwill send you a copy of that also. Brenda J. Holton Deputy Clerk Roanoke County Board of Supervisors E-mail: bholton@co.roanoke.va.us. Phone: (540) 772-2005 Fax: (540) 772-2193 »> Doug Chittum 02/19/03 01:21 PM »> Brenda, The Resolution should go to George Simpson as he will handle the application to the CTB. Thanks, DC »> Brenda Holton 02/19/03 12:36PM »> Do you want me to send copies of the resolution to all members of the CTB with standard letter from Clerk's Office saying "here it is" or do you want to send the copies out with your letter? Just let me know. Thanks, Brenda J. Holton Deputy Clerk Roanoke County Board of Supervisors E-mail: bholton _co.roanoke.va.us. Phone: (540) 772-2005 Fax: (540) 772-2193 CC: Diane Childers; Jill Loope Don J. 1 Iarrison ~~ ~ Srnior Vice Pmsidrnt Marko 1'resi~jcnt F1rSt Ut~ton rational Bank VR1446 ~ X100 ~d t2 ~~ee~ 1 ~~ Roanoke, VA 24~>l~ Tel 540 563-7675 Fax 540 563-6018 ~._~ t,.,.-,;~-~,~,ccn~~-a~-hovia.com -+,~ INTEGRITY WINDOWS AND DOORS PROJECT SUMMARY Description of Proiect Marvin Windows and Doors is the largest made to order wood window and door manufacturer in the world. Known for their high-quality craftsmanship, Marvin has been recognized among industry leaders for almost 10 decades. Integrity Windows and Doors is a corporation owned by Marvin, which is headquartered in Warroad, Minnesota. The Integrity window and door product line was introduced in 1994 as a new line from Marvin, with an enhanced selection of product styles and options. In addition, Integrity is a more economical product of Marvin that utilizes a unique Ultrex exterior, which is innovative for the industry. Given its success, the Integrity line of products is becoming known in eastern markets, and the company is seeking an east coast location for their new manufacturing operation. Location Valley Gateway Center (Tract D, a 42 acre site located off of Route 460). Roanoke County successfully competed with an existing site that they own in Fargo, North Dakota. Investment Two phases: Phase I: $15,000,000 ($6 million in equipment, $9 million in land building by 2004) Phase II: $17,000,000 ($7 million in equipment, and $10 million in new facility construction by 2008). Total investment: $32 Million ($19 million in real estate, and $13 million in equipment) Employment Phase I: 150 jobs within 30 months Phase II: 350 jobs by 2008 Incentives The Valley Gateway site requires significant infrastructure improvements to enable it to serve the needs of Integrity. As such, the County and State have offered the following incentives: Roanoke County: $1 million in local incentives, reimbursable based upon a 6-year payback. This is primarily public infrastructure (water, sewer, roads) improvements, with the remaining being economic development grant through the Industrial Development Authority. State: $2 million, including $500,000 in Governor's Opportunity Fund contributions and $600,000 in job training funds, as well as assorted tax exemptions. Total Annual Payroll: $13,629,303 Phase I $20,503,689 Phase II TALKING POINTS • First major manufacturing announcement in Roanoke County since R.R. Donnelley. • Will be a major anchor and catalyst for the future development of Valley Gateway. • Will provide basic manufacturing jobs for the region, which will offset job losses over the last several years. • The Integrity operation is consistent with the County's economic development strategy of attracting quality employers, providing livable wages, while offering a significant investment in the community. • Marvin has along-standing reputation for being committed to the communities in which they operate. • The Integrity operation is compatible with development in this area, and meets the original vision of the development of the Valley Gateway business park. The operation meets the zoning, covenants, comprehensive plan and environmental standards for the area. • Marvin is a world leader within the window and door industry. The Integrity operation utilizes a technologically advanced manufacturing process, which is consistent with region's goal of attracting high tech manufacturers to the Valley. This meets the objectives of the Roanoke Regional Strategy for Economic Development. • Roanoke County was selected primarily for its outstanding quality of life, excellent school system, proximity to market, and the receptiveness and warmth of the community. While economic incentives were important to Marvin, they were not the deciding factors in their decision. The company was confident that Roanoke County shared the same high quality standards as Marvin's corporate philosophy. Mark Warner was elected Virginia's 69th governor in November, 2001. He is an accomplished businessman, community leader, and a husband and a father. Since his inauguration in January 2002, Governor Warner has taken abusiness-like approach to the challenges of a sluggish economy and the state's record revenue shortfall. Governor Warner has worked hard to restore Virginia's fiscal integrity and is building the foundation for a stronger economy, improved education, and a better quality of life for all Virginians. His administration has been marked by straight talk with Virginians, the determination to meet our challenges directly, and the drive to restore public confidence in the ability of state government to provide critical services. Mark Warner is not a politician, but a businessman and a true leader. Please j oin me in welcoming our Governor Mark Warner.