HomeMy WebLinkAbout2019-804 Economic Dev - Town of Chapel Hill interlocal agreement Wegmans CIO
Zvi � 60cj
INTERLOCAL AGREEMENT BETWEEN ORANGE COUNTY
AND THE TOWN OF CHAPEL HILL REGARDING THE REIMBURSEMENT OF AN
INDUCEMENT GRANT TO WEGMANS FOOD MARKETS , INCORPORATED
THIS AGREEMENT , made and entered into this Vt day of November , 2016 between
Town Chapel Hill , North Carolina a municipal corporation situated in Orange County , North
Carolina (the " Town " ) , and Orange County , a political subdivision of the State of North Carolina
(the " County" ) , for the reimbursement to the County by the Town of one half of the County ' s
expenditures for an economic development inducement grant to induce Wegmans Food
Markets , Incorporated ( " Wegmans" ) to locate a new facility in Chapel Hill , Orange County , North
Carolina . County and Town may be referred to jointly as the " Parties " .
WITNESSETH
WHEREAS , the County and Town are public bodies , politic and/or corporate , under the
laws of the State of North Carolina and are vested with the power and authority by Article 20 of
North Carolina General Statute Chapter 160A to enter into this Interlocal Agreement ( hereinafter
referred to as the "Agreement" ) ; and
WHEREAS , representatives of the County and Town have expressed interest in joint
economic development incentives to jointly fund the economic development inducement grant to
Wegmans with the County paying one hundred percent ( 100 % ) of the agreed upon incentive to
Wegmans and Town reimbursing to County fifty percent (50 % ) of County ' s inducement grants
and
WHEREAS , this project will create jobs , provide company benefits to employees , create
property and sales tax revenue , assist in capturing market share from other areas , and improve
a gateway location ; and
WHEREAS , the estimated maximum inducement grant is and shall not exceed four
million dollars ( $4 , 000 , 000 . 00 ) ; and
WHEREAS , the County and Town now desire to formally establish the terms of the
Town ' s reimbursements to the County .
NOW , THEREFORE , in consideration of the foregoing and based on mutual promises
and obligations set forth herein , the receipt and sufficiency *of which is hereby acknowledged ,
the County and Town agree as follows :
1 . TERM AND TERMINATION
a . This Agreement shall commence upon execution and shall continue until all
reimbursement installments are paid in full with such payment in full occurring
no later than January 31 , 2026 .
b . This Agreement may be renewed or amended upon written agreement of the
Parties .
2 . RESPONSIBILITIES OF TOWN
a . The Town is responsible for and shall reimburse the County fifty percent (50 % )
of the total inducement grant paid to Wegmans by County . The total amount of
such reimbursement paid by Town shall not exceed two million dollars
( $ 22000 , 000 . 00) .
b . Town shall pay its inducement grant reimbursement in annual installments
within thirty ( 30 ) days of receipt of the County ' s invoice .
3 . RESPONSIBILITIES OF COUNTY
a . The County is responsible for direct payment of the inducement grant to
Wegmans . The total amount of the inducement grant shall not exceed four
million dollars ( $4 , 000 , 000 . 00 ) and shall be paid in annual installments and
subject to the terms and conditions of the Inducement Grant Agreement
between County and Wegmans , dated November 1 , 2016 .
b . Upon County ' s payment of its annual inducement grant installment to
Wegmans the County shall invoice Town for the fifty percent (50 % )
reimbursement amount . This annual invoice will be in the form of a single
invoice for the full fifty percent ( 50 % ) installment amount .
4 . REMEDIES
a . Should County for any reason permanently discontinue paying Wegmans the
agreed upon inducement grant prior to the natural expiration of the Inducement
Grant Agreement Town may , without penalty , discontinue reimbursing County
for such inducement grant ; provided , however , that all reimbursements due
County up to and including the date of County ' s discontinuance of payments to
Wegmans shall be fully reimbursed by Town to County .
b . Should Town for any reason discontinue reimbursing County the agreed upon
inducement grant reimbursement prior to the natural expiration of the
Inducement Grant Agreement between County and Wegmans , Town , through
execution of this Agreement , authorizes County to collect and withhold from
Town any real and personal property tax revenues due to Town , and paid by
Wegmans , in an amount equal to the full reimbursement amount owed to
County by Town pursuant to this Agreement . By execution of this Agreement
Town grants to County all such real and personal property tax revenues for
deposit in County ' s general fund and disclaims and releases any and all right
to , claim , or interest in such tax revenues .
5 . ENTIRE AGREEMENT
This Agreement constitutes the entire Agreement of the Parties hereto regarding
reimbursement by Town to County for the inducement grant paid to Wegmans by
County .
In witness whereof, the Parties , by and through their authorized agents , have hereunder set
their hands and seals as of the day and year first above written .
/PAAAMA A
_ S
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Manager , Town Chapel Hill Chair , range Coun oard of Com is io
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This instrument has been pre - audited in the manner required by the Local Governmend �� t'
�L R
and Fiscal Control Act :
Chapel Hill Finance Officer
This instru nt h b en pre - audited in the manner required by the Local Government Budget
and Fiscal ntr I
Orange to ty CFO