The URL can be used to link to this page

Home My WebLink About 14-69 Adopting Standard Format Agreement for Business Assistance ProgramRESOLUTION NO. 14-10 A RESOLUTION ADOPTING A STANDARD FORMAT AGREEMENT FOR THE TAX AND FEE BUSINESS ASSISTANCE PROGRAM OF THE TOWN WHEREAS, on August 27, 2014, the Board of Tnistees of the Town of Firestone (the "Town") adopted an ordinance enacting Chapter 3.24 of the Firestone Municipal Code in order to establish a tax and fee business assistance program ("BAP") to recruit businesses and employers within the Town thereby stimulating the economy of and within the Town; and WHEREAS, participation in the BAP is based upon approval by the Board of Trustees exercising its legislative discretion in good faith, and WHEREAS, under Chapter 3.24, each BAP application is subject to approval solely on its own merits and approval shall require an agreement be executed between the applicant and the Town; and WHEREAS, in order to facilitate implementation of the BAP, the Board desires to approve a standard template of a BAP agreement to accompany the BAP application materials; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN OF FIRESTONE, COLORADO, Section 1. The Town Board of Trustees hereby approves the standard format agreement for the tax and fee business assistance program, attached hereto, for the purpose of entering into an agreement with and granting certain business assistance to such businesses that have been approved to participate in the BAP program. Section 2. Town staff is hereby authorized and directed to assist business owners and operators in applying for the BAP, and to submit the attached standard format agreement to the Town Board as part of applications for approval to participate in the BAP program. Any proposed agreement remains subject to Town Board approval, disapproval or modification. Section 3. This Resolution shall be in fill force and effect fiom and after the date of its passage and approval. INTRODUCED, READ AND ADOPTED thisayof 2014. Tm! !/I NOW 07L�� I Sorensen yor Town Clerk BUSINESS ASSISTANCE AGREEMENT FOR IN THE TOWN OF FIRESTONE THIS AGREEMENT ("Agreement") is made and entered into as of the day of , 201_, between the TOWN OF FIRESTONE, a Colorado statutory town (the "Town"), and a Colorado limited liability company ("the Company"). WHEREAS, the Town wishes to provide certain business assistance in connection with the Company's occupancy of approximately square feet of space for a �msert ;�type of �6usinessl ("the Project") located at (atldressl , Firestone ("the Project Location"); and WHEREAS, the Company plans to complete construction and occupy the Project location by (date of ci�rnpleted;workl ; and WHEREAS, the Company plans that the Project will generate new sales tax revenue by the opening and operation of the Project in the Town; and WHEREAS, pursuant to Chapter 3.24 of the Firestone Municipal Code, the Town has established the framework for participation in a business assistance program based upon approval by the Board of Trustees, which program requires an agreement executed by the Company and Town; and WHEREAS, Board of Trustees finds the execution of this Agreement will serve to provide benefit and advance the public interest and welfare of the Town and its citizens by securing the location of this economic development project within the Town. NOW THEREFORE, in consideration of the mutual promises set forth below, the Town and the Company agree as follows: 1. Sales Tax Rebates. The Town shall rebate to the Company 40% of the incremental sales tax revenues derived from the imposition of the Town's 3.0% general sales tax (excluding the Town 's one percent (1 %) sales tax imposed for streets and parks projects) that is actually collected by the Town and attributable to retail sales occurring at the Project Location and generated by the Project for the first thirty-six (36) months of its operation subject to the cap below. The rebate period shall commence upon and run continuously from the date of issuance of the first certificate of occupancy for the Project at the Project location. Rebates shall not exceed $10,000 or thirty-six (36) months of operation, whichever comes first. 2. Payment of Rebates; Disclosures. The sales tax rebates provided for in section 1, above, shall be paid by the Town in annual installments and shall be made on or before March 31, for the period ending the immediately preceding 1 December 31. No interest shall be paid on amounts subject to rebate. In the event the Company receives any credit or rebate for taxes previously paid for which a rebate was given pursuant to this Agreement, the Town shall be entitled to repayment of the rebate attributable to the amount credited or rebate, and shall have the right to offset such amount against amounts payable in future rebate periods. The Company acknowledges that implementation of this Agreement requires calculations based on the amount of sales taxes collected and paid by the Company during the term of this Agreement and issuance of rebate payment checks in amounts determined pursuant to this Agreement, and that the amounts of the rebate payment checks will be public information. The Company, for itself, its successors, assigns, and affiliated entities, hereby releases and agrees to hold harmless the Town and its officers and employees from any and all liability, claims, demands, and expenses in any manner connected with any dissemination of information necessary for or generated in connection with the implementation of rebate provisions of this Agreement. 3. Use of Funds. Funds rebated pursuant to this Agreement shall be used by the Company solely for obligations and/or improvements permitted under Firestone Municipal Code section 3.24.060. 4. Termination. This Agreement shall terminate and become void and A no force or effect upon the Town if, by (deadline for_cornpl"eted word, the Company has not completed the Project (as evidenced by the issuance of a certificate of occupancy for the Project); or should fail to comply with any Town code. 5. Business Termination. In the event that, within three (3) years of the commencement of the rebate term, the Company ceases operations at the Project Location, the Company shall upon demand pay to the Town a portion the total amount of sales tax which was due and payable to the Town but was rebated by the Town to the Company pursuant to this Agreement. For each full year that the Company ceases operations at the Project Location within such three-year period the Town shall receive back thirty-three percent (33%) of the amounts rebated. 6. Effect of Change in Tax Rate. Any increase in the Town general sales rate above 3.0% shall not affect the rebate payments to be made pursuant to this Agreement; rather, the amount of the rebate payments will continue to be based upon the general sales tax rate of 3.0% (excluding the Town's one percent (1 %) sales tax imposed for street and parks projects). Any decrease in the Town general sales tax rate shall cause the amount of the rebate payments made pursuant to this Agreement to be based on the applicable percentage of revenues actually received by the Town from application of the reduced general sales tax rate. 7. Subordination, The Town's obligations pursuant to this Agreement are subordinate to the Town's obligations for the repayment of any current or future bonded indebtedness and are contingent upon the existence of a surplus in sales tax revenues in excess of the sales tax revenues necessary to meet such existing or future bond indebtedness. The Town shall meet its obligations under this Agreement only after the Town has satisfied all other obligations with respect to the use of sales tax revenues for bond repayment purposes. For the purposes of this Agreement, the terms "bonded indebtedness," "bonds," and similar terms describing the possible forms of indebtedness include all forms of indebtedness that may be incurred by the Town, including, but not limited to, general obligation bonds, revenue bonds, revenue anticipation notes, tax increment notes, tax increment bonds, and all other forms of contractual indebtedness of whatsoever nature that is in any way secured, collateralized or paid by sales and use tax revenues of the Town. 8. Annual Appropriation. Nothing in this Agreement shall be deemed or construed as creating a multiple fiscal year obligation on the part of the Town within the meaning of Colorado Constitution Article X, Section 20 or any other constitutional or statutory provision, and the Town's obligations hereunder are expressly conditional upon annual appropriation by the Board of Trustees, in its sole discretion. The Company understands and agrees that any decision of Board of Trustees to not appropriate funds for payment shall be without penalty or recourse to the Town and, further, shall not affect, impair, or invalidate any of the remaining terms or provisions of this Agreement. 9. Governing Law: Venue. This Agreement shall be governed and construed in accordance with the laws of the State of Colorado. This Agreement shall be subject to, and construed in strict accordance with the Firestone Municipal Code. In the event of a dispute concerning any provision of this Agreement, the parties agree that prior to commencing any litigation, they shall first engage in a good faith the services of a mutually acceptable, qualified, and experienced mediator, or panel of mediators for the purpose of resolving such dispute. In the event such dispute is not fully resolved by mediation or otherwise within 60 days a request for mediation by either party, then either party may commence legal proceedings regarding the dispute. The venue for any lawsuit concerning this agreement shall be in the District Court for Weld County, Colorado. 10. Legal Challenge; Escrow, The Town shall have no obligation to make any rebate payment hereunder during the pendency of any legal challenge to this Agreement. The parties covenant that neither will initiate any legal challenge to the validity or enforceability of this Agreement, and the parties will cooperate in defending the validity or enforceability of this Agreement against any challenge by any third party. Any funds appropriated for payment under this Agreement shall be escrowed in a separate Town account in the event there is a legal challenge to this Agreement. 3 11. Assignment, The Company may not assign, transfer, pledge or encumber, whether for collateral or any other purposes, any of the obligations, benefits or provisions of the Agreement in whole or in any part without the express written consent of the Town Council of the Town. Any purported assignment, transfer, pledge, or encumbrance made without such prior written authorization shall be void. 12. No Joint Venture. Nothing is this Agreement is intended or shall be construed to create a joint venture between the Town and the Company and the Town shall never be liable or responsible for any debt or obligation of the Company. 13. Entire Agreement. This instrument shall constitute the entire agreement between the Town and the Company and supersedes any prior agreements between the parties and their agents or representatives, all of which are merged into and revoked by this Agreement with respect to its subject matter. Contact information is as follows: If to the Company: (contact name) (Company name) (address) Firestone, CO 80520 (phone) (email) IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the day and year first written above. (business name) A Colorado limited liability company ATTEST: Title: Print name 0 TOWN OF FIRESTONE Paul Sorensen Mayor ATTEST: Larissa Medina Town Clerk