Economic Development Grant City of Salina
Economic Development Grant Offer and Agreement
Offer
This Economic Development Grant Offer and Agreement ("Agreement") entered into on the 16th day of April,
2012 is made by and between the City of Salina, Kansas, 300 West Ash Street, Salina, Kansas ("City") and
Exide Technologies, 413 Berg Road, Salina, Kansas ("Grantee").
WHEREAS, Grantee recently submitted a request for economic development incentive funding from the City ,
of the purpose of increasing employment and leveraging capital equipment for Project Castleton ("Project");
and
WHEREAS, the Project is proposed to result in stimulated economic activity in the community through the
addition of between 100 and 130 full-time jobs generating an estimated $5.1 million in annual payroll
(significantly exceeding the Saline County average for similar positions) and up to $10 million in capital
equipment investment; and
WHEREAS, the City's Salina Economic Development Incentives Council (SEDIC) has reviewed the
Grantee's initial request for the granting of a total not to exceed $390,000 in City economic development sales
tax funds for the Project; and
WHEREAS, on April 16, 2012, the Salina City Commission approved the expenditure of up to $390,000 as an
economic development grant for the Project consisting of the following:
Project Castleton: The Project will add between 100 and 130 additional manufacturing positions with
annualized average wage levels of$39,137 (equalized to $18.82 per hour, not including bonus) and up
to $10 million in directly related capital equipment. Project completion is 30 calendar months from
execution of this Agreement. Completion of the Project is reliant upon attaining the specified
employment targets presented herein. Exide's ability to implement the Project and meet the grant
conditions contained herein is also contingent upon additional state and local funding for staffing,
equipment acquisition and workforce training.
NOW, THEREFORE, pursuant to City of Salina appropriations authority and Resolution 12-6897 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 , the City of Salina hereby offers and agrees to pay a total not to
exceed $390,000 as the City's share of allowable costs incurred in accomplishing the Projects, subject to
Grantee's compliance with the assurances and conditions as herein provided.
This offer is made on and subject to the following terms and conditions:
Conditions
1. The maximum obligation of the City of Salina under this offer shall be $390,000.
2. The City shall pay $3,000 per job for eligible Project Castleton job creation.
3. Grantee shall use every reasonable effort to meet the job creation target of between 100 and 130 new jobs
within 30 months from the execution date of the Agreement
4. Grantee shall report to the Salina Area Chamber of Commerce progress related to job creation and the
installation and activation of project-related capital equipment. This information shall demonstrate to the
Chamber compliance with project performance targets, including required job creation and wage levels.
5. Payment of the allowable grant disbursement for attainment of specified job creation as referred to herein
shall be subject to the following:
a. Grant payments shall be made over a timeframe not to exceed 30 calendar months. However, the city
manager shall be authorized to apply reasonable discretion with regard to acceptance or rejection of a
Grantee request for grant funding.
b. Grant payments shall be made pursuant to provision of a written request to the City for grant
disbursement and an affidavit from Grantee certifying: the quantity of jobs created for Project
Castleton since April 16, 2012, that all jobs counted meet the wage targets contained herein and that
prior year Project Castleton jobs have been retained and continue to meet wage targets.
c. Approved grant disbursements shall be made to Exide within 30 calendar days from receipt of a
written request.
d. Retention of all prior year's proportionate job targets is required in order to be eligible for
disbursement of grant funds for jobs throughout the grant cycle.
e. Grantee may request multiple draw downs of grant funds, not to exceed twice per calendar year.
6. In addition to and for informational purposes only, Grantee shall report to the Salina Area Chamber of
Commerce progress related to job creation, and the installation and activation of project-related capital
equipment.
7. The official contact for'the City is: Lieu Ann Elsey, City Clerk
300 West Ash, P.O. Box 736
Salina, KS 67402-0736
(785) 309-5735 (phone); (785) 309-5738 (fax)
lieuann.elseygsalina.org
8. The official contact for the Grantee is: James T. Thomas, Salina Plant Director
Exide Technologies
416 Berg Road.
Salina, KS 67401
(785) 825-6276 (phone)
j im.thomasgexide.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 of the Offer.
City of Salina ttest:
Jas Gage, City M ager Lieu Ann Elsey, City Clerk
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.
Evidenced this 16th day of April, 2012
Exide Technologies
By ,/- •w•70� e
G ntee's Designated Official Representative, Title