Eoncomic Development Grant Offer and Agreement (2011)
City orSalina
Economic Development Grant Offer and Agreement
Offer
This agreement entered into on the 26th day of January, 2011 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 increasing employment and leveraging capital equipment and facility
modifications for Project Joy; and
WHEREAS, this project is proposed to result in stimulated economic activity in the community through
the addition of up to 50 full-time jobs generating an estimated $2.35 million in annual payroll
(significantly exceeding the Saline County average for similar positions) and up to $5 million in capital
investment; and
WHEREAS, the City's Salina Economic Development Incentives Council (SEDIC) has reviewed the
Crantee's initial request for the granting of a total not to exceed $750,000 in City economic development
sales tax funds for Grantee's project; and
WHEREAS, on January 26, 2011, the Salina City Commission approved the expenditure of up to
$750,000 as an economic development grant for Grantee's project, consisting of the following:
Project Joy: This project will add up to 50 additional manufacturing positions with annualized
average wage levels of $47,000 ($22.60 per hou~) and up to $5 million in directly related equipment
and facility renovation investment. Project completion is desired by July 31, 2012, but not formally
required until January 31, 2014. Completion of the project is reliant upon attaining the specified
employment targets presented herein.
NOW 'n-IEREFORE, pursuant to the City's appropriations authority and in consideration of the Grantee's
acceptance of this offer,. and the benefits to accrue to the City and the public from the accomplishment of
the project and compliance with the assurances and conditions as herein provided, the City hereby offers
and agrees to pay a total not to exceed $750,000 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 of the City under this offer shall be $750,000 specifically for Project Joy
and the Grantee's development project shall be. reviewed for compliance prior to disbursement of
funds.
2. The Grantee shall demonstrate to City compliance with project performance targets.
3. Payment of the City's share of the allowable grant disbursement for attainment of specified job
creation as referred to in this Agreement shall be subject to the following:
a. Grant payment shall be made proportionately over a timeframe of thirty-six (36) months.
b. C3rant payment shall be made pursuant to provision of a written request for grant disbursement
and an affidavit from Grantee certifying: the quantity of jobs created for Project Joy since
January 4,2011, that all jobs counted meet the wage targets contained herein and that prior
year Project Joy jobs (applicable in grant years 2 and 3) have been retained and continue to
meet wage targets. Retention of prior year's proportionate job targets is required in oraer to be
eligible for disbursement of grant funds for job created in subsequent years of the project.
c. Grantee may request multiple drawdowns 'of grant funds.
d. Project job target attainment shall at all times equal or exceed that proportionate drawdown of
grant funding to be provided by Grantor.
e. The city manager shall be authorized to apply reasonable discretion with regard to acceptance
or rejection of a Grantee request for grant funding.
4. Tn addition to and for informational purposes oIily, Grantee shall report to Salina Area Chamber of
Commerce progress related to the purchase, receipt, installation and readiness for use of the requested
equipment, and completion of related facility modifications as referred to herein.
5. Grantee shall use every reasonable effort to meet the job creation estimate of 50 new jobs and an
equipment and building related investment within 18 months from the execution date of the
Agreement.
6. The official contact for the City is: Lieu Ann Elsey, City Clerk
300 West Ash, P.O. Box 736
Salina, KS 67402-0736
Phone: (785) 309-5735
Ii euann. eIsey@salina.org
7. The official contact for the Grantee is: Dan Meildicina, Salina Plant Director
Philips Lighting Center
3861 S. Ninth St.
Salina, KS 67401
Phone: (785)822-1517
dan. mend ic ina@phiIips.com
The Grantee's acceptance of this offer, ratification and adoption of the project memo incorpo.rated herein
shan 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 of the offer.
City Od , lina
Acccptancc
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 prc?ject application letter.
Evidenced this
2L...JC::: day of January, 2011
By
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Title
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