Economic Development Funding Agreement
City of Salina
Economic Development Grant Offer and Agreement
Offer
This agreement entered into on the 21 st day of June, 2010 is made by and between the
City of Salina, Kansas, 300 West Ash Street, Salina, KS, herein called the "City", and
Philips Lighting Company, whose address is 3861 S. Ninth, Salina, Kansas, herein called
the "Grantee."
WHEREAS, Grantee recently submitted a request for economic development incentive
funding from the City for the purpose of funding capital equipment and facility
modifications fot three independent projects (project LIDO, Project R&D Lab and
Project Star); and
WHEREAS, collectively these projects are proposed to result in stimulated economic
activity in the community through up to $3.2 million in capital investment and the
addition of up to twenty-two (22) full-time jobs, including wage levels that exceed the
Saline County average for similar positions; and
WHEREAS, the City's Salina Economic Development Incentives Council (SEDIC)
reviewed Grantee's application and recommended to the Salina City Commission the
granting ofa total not to exceed $150,000 in City economic development sales tax funds
for Grantee's project; and
WHEREAS, on June 21,2010, the Salina City Commission approved the expenditure of
up to $150,000 as an economic development grant for Grantee's projects, consisting of
the following:
Project LIDO: This project would add an additional draw line to the glass furnace
and allow the facility to make more of their own glass components for their lamp
manufacturing operation. The first project is proposed to add five (5)
manufacturing positions to the facility. Completion of the project is reliant upon
cost assistance with equipment acquisition, delivery and installation and related
building, electrical and utility modifications.
Project R&D Lab: This project would relocate a research and development lab,
enabling consolidation opportunities. This project is proposed to add eight (8)
employees, to include a lab manager and other lab technicians. Completion ofthe
project is reliant upon cost assistance with construction of the laboratory, HV AC
and building modifications and related llib equipment.
Project Star: This project involves a global consolidation process to improve
overall manufacturing efficiency and effectiveness of current functions. This
proposed project is proposed to add nine (9) additional manufacturing jobs in
Salina (8 hourly production jobs and 1 engineering support position). Completion
of this project is reliant upon cost assistance with transporting and re-installation
of existing equipment, and utility and building modifications.
NOW THEREFORE, pursuant to City of Salina appropriations authority and in
consideration of the Grantee's acceptance of this offer, and the benefits to accrue to the
City of Salina and the public from the accomplishment of the project and compliance
with the assurances and conditions as herein provided, the City of Salina hereby offers
and agrees to pay a total not to exceed $150,000 as the City's share of allowable costs
incurred in accomplishing these specific projects.
This offer is made on and subject to the following terms and conditions:
Conditions
1. The maximum obligation ofthe City of Salina under this offer shall be $150,000 and
each of the Grantee's development projects shall be reviewed for compliance
independently and proportionately to proposed job growth estimates.
2. Grantor shall request the Salina Area Chamber of Commerce to certifY specifically
authorized project components and related costs as associated with each ofthe three
proposed economic development projects prior to such purchase, delivery, installation
and/or modification.
3. Payment ofthe City's share ofthe allowable project equipment and facility
modification costs as detailed in this Agreement will be made pursuant to paid
invoices submitted to the City by Grantee. Grantee may request multiple drawdowns
of grant funds. Grantee shall request Salina Area Chamber of Commerce certification
as to the purchase and receipt of the requested equipment and facility modification
costs referred to herein, as compared to those project components/costs previously
certified. The Grantee will also request Salina Area Chamber of Commerce
certification that eligible project equipment has been received, installed and ready for
use; and that related facility modifications have been completed.
4. Grantee agrees not to resell or dispose of project equipment for a period of five (5)
years without the written permission of the City.
5. The project shall be complete within eighteen (18) calendar months from the
execution date of the Agreement.
6. Grantee shall use every reasonable effort to meet the job creation estimate of twenty-
two (22) new jobs within eighteen (18) months from the execution date of the
Agreement.
7. The official contact for the City is:
Lieu Ann Elsey
City Clerk
300 West Ash, P.O. Box 736
Salina, KS 67401
785-309-5735 (0)
785-309-5738 (F)
L ieuAnn.E Isev@Sa1ina.org
8. The official contact for the Grantee is:
Dan Mendicina
Salina Plant Director
Philips Lighting Center
3861 S. Ninth St.
Salina, KS
Phone (785)-822-1517
dan.mendicina@philips.com
The Grantee's acceptance of this offer, ratification and adoption of the project memo
incorporated herein shall be evidenced by execution of this agreement by the Grantee,
and the offer and agreement shall comprise a Grant Agreement. Such Grant Agreement
shall become effective upon the Grantee's acceptance ofthe offer.
City of Salina
Attest:
Acceptance
The Grantee does hereby ratify and adopt all assurances, statements, representations,
warranties, covenants and agreements contained in the project information memo and
incorporated materials referred to in the foregoing offer and does hereby accept the offer,
by such acceptance, agrees to comply with all of the terms and conditions in the Offer
and in the project application letter.
J,,"1
Evidenced this /3 day of ~ 2010
Philips Lighting Company of Salina
By
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