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Home My WebLink About2001-03-14 01-146 ORDERCOUNCIL ACTION Itam 140. 01-166 Dnte: March 1412001 Item/Subject: AUMorizing Development Agreement— Inbarfaca Fabrics Group Responsible Department Community and Economic Development Commentary: This Order would approve a development agreement with Interface Fabrics Group providing for its opening of a dam center for Its global operations in downtown Bangor and creation of new employment opportunities for Bangor area residents. Interface Fabrics Group plans to invest $2 to $2.5 million in equipment and employ an estimated 15 to 20 full time persons at the new data center. The data center will be located at ]] Exrhange Street and Is expected to be open prior to lune 30. Average annual salaries will exceed $30,000 with full employee benefits Department Head Managers Comments: Recommend approval. associated InfomraOan: Order, I'..i. �. Ie � iO�iQif nance Dire=r X Passage _ First Reading Page_ of Referral AsaignMMCouroilOr Yardvla March 14, 2001 CITY OF BANGOR (MILE.) Order, Authorizing Development Agreement— Interface fabrics Group By one City candy of me Ory ofBxgor. ORDERED, THAT WHEREAS, the Interface Fabrics Group is a manufacturer of innovative textile products for commercial interiors with Its corporate office located in Guilford; and WHEREAS, companies within the Interface Fabrics Group include Chatham Inc., Guilford of Maine, Intek, Interface fabrics Lbd., Teknh, TekSolubons and Toltec fabrics; and WHEREAS, Interface Fabrics Gaup has 21 manufacturing and sales locations in six countries; and WHEREAS, Me Interface Fabrics Group is desirous of locating a data center in Bangor for the global operations of Me Interface Fabrics Group; and WHEREAS, Me Bangor location will also serve as the central location for the development and deployment of Me company's new enterprise resource planning (ERR) system; and WHEREAS, Interface Fabrics Group plans to employ an estimated 15 to 20 full time persons at the new data center within the ne# few months; and WHEREAS, completion of the data carter writ create a significant public benefit by providing high quality jobs within the Citys downtown area, and will significantly enhance the tax base of the City; NOW, THEREFORE, BY THE QTY COUNCIL OF THE CITY OF BANGOR, BE IT ORDERED THAT the City Manager is hereby authorized to execute a development agreement wiM Interface Fabrics Group providing for Its opening of a date center for Is global operations in downtown Bangor and creation of new employment opportunities for Bangor area residents, under terms and conditions substantially as aVAched hereto, and in a final form approved by the Qty Solicitor or Assistant City Solicitor. IM CIw 00n= 1 March 16, 3001 I Motion for Passage Made and Seconded Passed C T4 CL (TITLE) Authorleln¢ Develooaeat Aeremeut - Interface Fabrics Group DEVELOPMENT AGREEMENT This Agreement is made and entered into as of Maven 2001 by and between the City of Bangor (hereinafter "City"), a municipal corporation located in Bangor, County ofPerwbscot, State of Maine, and Interface Fabrics Group, a corporation duly organized and existing under the laws of the Some of Delaware, with a principle place of business in the State of Maine. WITNESSETH WHEREAS, the Interface Fabrics Group is a manufacturer of innovative textile products for commercial interiors with its corporate office located in Guilford; and WHEREAS, companies within the Interface Fabrics Group include Chatham Inc., Guilford of Maine, Intek Interface Fabrics Ltd., Teknit, TekSolutions and Toltec Fabrics; and WHEREAS, Interface Fabrics Group has 21 manufacturing and sales locations in six countries; and WHEREAS, fire Interface Fabrics Group is desirous of locating a data center in Bangor for the global operations of the Interface Fabrics Group; and WHEREAS, the Bangor location will also serve as the central location for the development and deployment of flu: company's new enterprise resource planning (ERP) system; and WHEREAS, Interface Fabrics Group plans to employ an estimated 15 to 20 full time persons at the new data center within the next f months; and WHEREAS, completion of Hie data center will create a significant public benefit by providing high quality jobs within the City's downtown area, and will significantly enhance Hes tax base of the City; NOW THEREFORE, IN CONSIDERATION of the mutual promises and cavernous contained in this Agreement, the City and Interface Fabrics Group agree as follows: I. Subject to the provisions of this Agreement, Interface Fabrics Group agrees to locate and open a data center for its global operations in downtown Bangor prior to June 30, 2001, and will create new employment opportunities for Bangor area residents and will employ no less than ten (10) new full time employees at its new Bangor location whose average annual salaries exceeds $30,000 and who receive full employee benefits. At all times during the term ofthis Agreement Interface Fabrics Group shall employ no less than ten (10) new fail time employees at its Bangor location whose average annual salaries exceeds $30,000 and who receive full employee benefits. 01-146 2. So long as Interface Fabrics Group complies with the provisions of this Agreement, the City will return W Interface Fabrics Group annually an amount equal to 50.0 %of all new personal property, taxes on equipment due and paid to the City by Interface Fabrics Group for personal property and equipment located at 77 Exchange Street in Burger, or other location within Bangor approved by the City, which location shall not meassentably be wiilrheld, for a period of ten years beginning July 1, 2001 and ending June 30, 2011. 3. Interface Fabrics Group hereby acknowledges thaz the City, in agreeing to provide assistance W Interface Fabrics Group, relied in material part upon the assured establishment arta opening of its data center in Bangor and agrees to use its best efforts W substantially open the data center no later than Jane 30, 2001. 4. Interface Fabrics Group agrees that it shall keep and maintain books, records and other documents relating directly to the employment and payroll of employees located at its new Burger data center and agrees that any duly authorized representative of the City shall, at all reasonable times, have access to and the right W inspect, copy, audit and examine at such books, records and other documents of Interface Fabrics Group during the period of this Agreement. 5. Interface Fabrics Group shall, within sixty (60) days of payment W the City for property taxes paid on personal property and equipment located at its data center in Bangor, during the period beginning July 1, 2001 and coding June 30, 2011, notify the Finance DirecWr, City of Bangor, 73 Harlow Street, Bangor, Maine 04401, of the amount so paid, and requesting payment of the amount due from the City of Bangor under the terra of this Agreement. Interface Fabrics Group shall a the same time submit documentation satisfactory to City that Interface Fabrics Group hos complied with the terns of this Agreement set forth in Section 1 above. 6. Aay notice which either party desires or is required to give to the other in connection with this Agreement shall be in writing and shall be sent postage prepaid, certified mail, return receipt requested, as follows: If W City: Edward A. Boom, City Manager City of Bangor 73 Harlow Street Burger, Maine Mill If W Interface Fabrics Group: Interface Fabrics Group P.O. Box 179 Guilford, Maine 04443 Or such other person and/or address as may be identified in writing by the parties. '/. Except as provided in this Agreement, Interface Fabrics Group shall not assign its rights under this Agreement without the prior written consent of City, which consent shall not be unreasonably withheld, delayed or conditioned. The City's obligations hereunder are contingern upon Interface Fabrics Group's compliance with the temos and/or conditions act foM in this Agreement. 8. Itishvmdedbythepartiesthattlds Agre mtshalloperateasmn( tunderseal,in accordance with 14 MRSA Sx.751. WITNESS WHEREOF this Agreement bas been executed, sanded and delivered in duplicate comterpsrcs as of the day and year first above writtev. INTERFACE FABRICS GROUP By CITY OF BANGOR By Edward A. Barrett Its City Manager