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HomeMy Public PortalAbout2014_08_12_R090 Authorizing the Governor's Dev Opp Fund Grant Perf Agreement The Town of Leesburg, Virginia PRESENTED August 12, 2014 RESOLUTION NO. 2014-090 ADOPTED August 12, 2014 A RESOLUTION: AUTHORIZING THE MAYOR OR TOWN MANAGER TO EXECUTE THE GOVERNOR'S DEVELOPMENT OPPORTUNITY FUND GRANT (GOF) PERFORMANCE AGREEMENT WHEREAS, Code of Virginia of 1950, as amended, § 2.2-115 entitled, "Governor's Development Opportunity Fund" ("GOF") authorizes the Governor to use funds from the Governor's Development Opportunity Fund to attract economic development prospects and secure the expansion of existing industry in the Commonwealth; and WHEREAS, an existing business operating within the Town(the"Company") indicated that the Town is one of three (3) localities where the Company is considering expanding its business by building its corporate headquarters and adding new jobs; WHEREAS, in order to induce the Company into remaining in the Town and building its corporate headquarters in the Town, the Governor has selected the Company to receive GOF funds; and WHEREAS, a GOF award requires matching funds from the localities which seek to benefit from the GOF funds; and WHEREAS, the County of Loudoun, the Economic Development Authority of Loudoun County, and the Town wish to provide these matching funds and incentives to the Company to induce the Company to expand within the Town; and WHEREAS,the Virginia State Code requires that a Governor's Development Opportunity Fund Grant Performance Agreement ("Agreement")be executed by the parties in order for the Company to obtain the GOF funds,the County incentives and the Town incentives; and - 2 - A RESOLUTION: AUTHORIZING THE MAYOR OR TOWN MANAGER TO EXECUTE THE GOVERNOR'S DEVELOPMENT OPPORTUNITY FUND GRANT (GOF) PERFORMANCE AGREEMENT WHEREAS,the parties to the Agreement are the Town of Leesburg,the County of Loudoun,the Economic Development Authority of Loudoun and the Company; and WHEREAS,the terms of the Agreement provide that the County will commit to a cash grant to the Company in the amount of$340,000 and to grant permit and fee waivers in the amount of $110,000; and WHEREAS,the terms of the Agreement provide that the Town will commit to matching funds in the amount of$150,000 towards a Virginia Department of Transportation("VDOT") Economic Development Access Program("EDAP") award (to be used towards the construction of a portion of Hope Parkway) and to grant permit and fee waivers in the amount of$77,000; and WHEREAS, the Agreement contains certain"clawback"provisions whereby if the Company does not locate within the Town,the Agreement is terminated and if the Company does not meet certain targets (capital investment and the addition of new jobs), a certain percentage of the funds and incentives must be repaid; and WHEREAS,the Town Attorney has reviewed all drafts of the Agreement; and WHEREAS,providing the funds and incentives contained within the Agreement to the Company to expand its corporate headquarters in the Town will result in substantial economic benefits to the Town and its residents. THEREFORE, RESOLVED, by the Council of the Town of Leesburg in Virginia that the Mayor or Town Manager is authorized to execute the Governor's Development Opportunity Fund Grant Performance Agreement so long as the final draft has been approved by the Town Attorney. - 3 - A RESOLUTION: AUTHORIZING THE MAYOR OR TOWN MANAGER TO EXECUTE THE GOVERNOR'S DEVELOPMENT OPPORTUNITY FUND GRANT (GOF) PERFORMANCE AGREEMENT PASSED this 12th day of August,2014. 4,10Z.,-7„ , s en C. mstattd, Mayor Town of Leesburg A T _: hO Clerk of Co .'ice P:\Resolutions\2014\0812 Approving the Governor's Development Opportunity Fund Grant Agreement.doc