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Home My WebLink About20213422.tiffRESOLUTION RE: APPROVE AGREEMENT PURSUANT TO C.R.S. §30-11-123 AND AUTHORIZE CHAIR TO SIGN - LINEAGE LOGISTICS, LLC, AND LINEAGE LOGISTICS SERVICES, LLC WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, the Board has been presented with an Agreement Pursuant to C.R.S. §30-11-123 between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, and Lineage Logistics, LLC, and Lineage Logistic Services, LLC, with further terms and conditions being as stated in said agreement, and WHEREAS, after review, the Board deems it advisable to approve said agreement, a copy of which is attached hereto and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Agreement Pursuant to C.R.S. §30-11-123 between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, and Lineage Logistics, LLC, and Lineage Logistic Services, LLC, be, and hereby is, approved. BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized to sign said agreement. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 15th day of December, A.D., 2021. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO ATTEST:;,,,,) Weld County Clerk to the Board BY: t;frj Deputy Clerk to the Boar APP ED Count ttorney Date of signature: 1L/2V.L Steve Moreno, Chair Scd�t K. James, Pro-Tem laudA Perry L. Buck ike Freeman Lori S cC.F2(P'4 O), ACT(cP/an)t CA(.B8) FL ere) t /17/22, 2021-3422 F10074 AGREEMENT PURSUANT TO C.R.S. $ 30-11-123 THIS AGREEMENT is made and entered into this 15"day of December, 2021, by and between the County of Weld, a body corporate and politic of the state of Colorado, by and through the Board of County Commissioners of the County of Weld, whose address is P.O. Box 758, 1150 O Street, Greeley, CO 80632, hereinafter referred to as, "Taxing Authority," and Lineage Logistics, LLC and Lineage Logistics Services, LLC whose corporate address is 465000 Humboldt Drive, Novi, MI 48377, hereinafter referred to as, "Taxpayer." WITNESSETH: WHEREAS, Taxing Authority desires to promote economic development within Weld County, Colorado, for the purposes of generating employment opportunities for residents of Weld County, thereby stimulating the economic well-being of Weld County's citizens, and WHEREAS, C.R.S. § 30-11-123 provides that the Taxing Authority may negotiate incentive payments to taxpayers who establish new business facilities or who expand existing business facilities, and WHEREAS, Taxpayer represents that it has invested or intends to invest in qualifying personal property and wishes to receive the incentive payment benefits available pursuant to C.R.S. § 30-11-123, and WHEREAS, Taxpayer has been determined to be currently eligible to receive the incentive payment benefits available pursuant to C.R.S. § 30-11-123, and pursuant to the Board of County Commissioners' policy concerning incentive payments passed by Resolution on February 20, 1991 ("Resolution of the Taxing Authority"). NOW, THEREFORE, the parties hereto hereby agree to the following: 1. Subject to annual appropriation by Taxing Authority, fifty -percent (50%) of the amount of personal property taxes paid by the Taxpayer for personal property located at Taxpayer's Facility at Great Western Industrial Park, Lot 15, Windsor, Colorado ("the Facility"), placed into service in Weld County in: a. 2023, and appearing on the personal property declaration schedule submitted by the Taxpayer to the Weld County Assessor, which personal property has not appeared on previous schedules, shall be paid to the Taxpayer by the Taxing Authority for the ten (10) tax years beginning 2024 and ending 2033 (hereinafter referred to as, "10 -Year Term"). All tax incentive payments made pursuant to this Agreement shall hereinafter be referred to as, "Tax Incentive Payments." Taxpayer shall submit to the Weld County Assessor an affidavit certifying the aggregate cost and year of acquisition of Taxpayer's personal property that, to Taxpayer's best knowledge, information and belief, qualifies for incentive payments under C.R.S. § 30-11-123, for the 10 -Year Term. The amounts so certified shall 1 2021-3422 be subject to review by the Weld County Assessor. 2. Tax Incentive Payments shall be made by Taxing Authority only upon appropriation, and only if: a. All taxes and assessments levied and assessed on Taxpayer by Taxing Authority for Facility are current, and b. In each year of this Agreement, Taxpayer remains eligible to receive the Tax Incentive Payments under criteria established in C.R.S. § 30-11-123 and the Resolution of the Taxing Authority, and c. Tax Incentive Payments are not calculated as being part of the Weld County Home Rule five percent (5%) property tax limitation or State of Colorado property tax limitation. 3. Any appropriated Tax Incentive Payments shall be made to Taxpayer by Taxing Authority within 90 days of receipt of full payment by the Taxpayer of all personal property taxes due and receipt of an affidavit from the Taxpayer stating that the Taxpayer remains eligible for such payment pursuant to C.R.S. § 30-11-123 and the Resolution of Taxing Authority. 4. The Tax Incentive Payments shall not be made by Taxing Authority if an amendment to the Colorado Constitution limiting property taxes is subsequently passed after the date of this Agreement, or if a court of competent jurisdiction declares any portion of this Agreement, C.R.S. § 30-11-123 (as may be amended), or the Resolution of the Taxing Authority, to be invalid or unconstitutional. 5. Any Tax Incentive Payments made under this Agreement that are determined not to be legal under the laws of the State of Colorado or are determined to be part of the Weld County Home Rule five percent (5%) property tax limitation or State of Colorado property tax limitation, shall be repaid to Weld County. 6. TAX INCENTIVE PAYMENTS TO TAXPAYER SHALL ONLY BE MADE TO THE EXTENT REVENUES ARE AVAILABLE AND APPROPRIATED IN EACH OF THE TEN (10) TAX YEARS OF THE 10 -YEAR TERM. 7. This Agreement is not assignable. 8. Acceptance of any Tax Incentive Payment by Taxpayer constitutes agreement by both parties to fund the Tax Incentive Payment for the tax year involved. 9. Claim for a Tax Incentive Payment must be submitted to Taxing Authority by Taxpayer by October 1st of each year or Taxpayer waives the right to receive payment for that year. 2 10. Taxpayer agrees that it shall attempt to use reasonable efforts to ensure that a minimum of fifty percent (50%) of its workforce employed at the Facility are Weld County residents during the terms of this Agreement. 11. All notices required or permitted under this Agreement shall be given in writing and shall be effective when delivered in the case of hand delivery, when transmitted, in the case of facsimile transmission or five days after mailing, when mailed, provided that mailed notices shall be sent by certified mail, return receipt requested. Notices shall be sent to the following addressees at the following addresses or facsimile numbers or to such other addressees, addresses or facsimile numbers as a party may designate from time to time by notice given pursuant to this paragraph: If to the County: Board of County Commissioners P.O. Box 758 Greeley, CO 80632 If to Taxpayer: With a Copy to: Weld County Attorney 1150 O Street Greeley, CO 80632 Lineage Logistics 1 Park Plaza, Suite 550 Irvine, CA 92614 Attn: Legal Department 12. Each of the parties will execute and deliver such other instruments and documents and will take all such other actions as the other party may reasonably request and as may reasonably be required in order to effectuate the purpose of this Agreement and to carry out its terms. 13. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. 14. This Agreement constitutes the entire agreement between the parties and supersedes and replaces all prior and contemporaneous agreements, representations, both written and oral, between the parties with respect to the subject matter of this Agreement. No variation of modification of this Agreement, and the waiver of the Agreement's provisions or conditions, shall be binding unless made in writing and signed by duly authorized officers of the County and Taxpayer. As permitted hereunder, this Agreement shall be binding upon, and inure to the benefit of, the parties and their respective successors and assigns. This Agreement shall be governed by and construed according to the laws of the state of Colorado. 3 15. It is expressly understood and agreed that the enforcement of the terms and conditions of this Agreement, and all rights of action relating to such enforcement, shall be strictly reserved to the undersigned parties and nothing in this Agreement shall give or allow any claim or right of action whatsoever by any other person not included in this Agreement. It is the express intention of the undersigned parties that any entity other than the undersigned parties receiving services or benefits under this Agreement shall be an incidental beneficiary only. +h The above and foregoing Agreement was hereby approved on the (5 day of Oece m ber, A.D., 2021. ATTES'I4�� Weld County Clerk to the B BY: fll u) Deputy Clerk to the B • pril - APPROVED AS TO FUNDIN ' V(/rlst-.-- Controller APPROVED AS TO FORM: 1rr County Attorney BOARD OF COUNTY COMMISSIONERS ELD COUNTY, COLORADO ve Moreno, Chair DEC 15 2021 OVED AS TOiSUBSTANCE: Elected Official or Department Head TAXPAYER: Lineage Logistics, L By: Michael J. McClendon, President International Operations & EVP, Network Optimization 4 0oa I- 39aa Esther Gesick From: Sent: To: Subject: Attachments: Don Warden Monday, December 6, 2021 8:59 AM Esther Gesick FW: PPT Rebate Request- Lineage Logistics Lineage_Weld County_Lineage Logistis LLC Tax Incentive Agreement 2024-2033 MM- signed_MJM_120621.pdf; Lineage_Weld County_Lineage Logistis LLC Tax Incentive Agreement 2024-2033.docx Will you put this on the December 15th BOCC agenda. I will be here to present it. Thanks! Donald D. Warden Director of Finance and Administration Finance and Administration PO Box 758 1150 O Street Greeley, CO 80632 tel: 970-356-4000 Extension 4218 email: dwarden@co.weld.co.us Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. From: Audrey Herbison <aherbison@upstatecolorado.org> Sent: Monday, December 6, 2021 8:51 AM To: Don Warden <dwarden@weldgov.com> Cc: Cathy Schulte <cschulte@upstatecolorado.org>; Rich Werner <rwerner@upstatecolorado.org> Subject: RE: PPT Rebate Request- Lineage Logistics e loriginated fromoulde of Weld County Government. DoDa,rfot:clielc. links or open attacht4en pub th content Hi Don, Hope you had a great weekend! Attached is the signed Lineage Logistics agreement. Please let me know if there is anything additional you need from me. Thank you so much! 1 Audrey Herbison Economic Development Manager Upstate Colorado Economic Development 822 7th Street, Suite 550 Greeley, CO 80631 (970) 356-4565 UpstateColorado.org NoCoREDI.com Weld County Business Recovery Info at WeldRecovery.com NoCo COVID-19 Resources NoCoRecovers.com From: Don Warden <dwarden@weldgov.com> Sent: Thursday, December 2, 2021 2:15 PM To: Audrey Herbison <aherbison@upstatecolorado.org> Cc: Cathy Schulte <cschulte@upstatecolorado.org>; Rich Werner <rwerner@upstatecolorado.org> Subject: RE: PPT Rebate Request- Lineage Logistics The red line changes are fine. If they want to change the month from November to December and sign and return two clean copies I will get the Commissioners to approve it. Donald D. Warden Director of Finance and Administration Finance and Administration PO Box 758 1150 O Street Greeley, CO 80632 tel: 970-356-4000 Extension 4218 email: dwarden@co.weld.co.us Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. From: Audrey Herbison <aherbison@upstatecolorado.org> Sent: Thursday, December 2, 2021 1:35 PM To: Don Warden <dwarden@weldgov.com> Cc: Cathy Schulte <cschulte@upstatecolorado.org>; Rich Werner <rwerner@upstatecolorado.org> Subject: RE: PPT Rebate Request- Lineage Logistics Hi Don, 2 Hope you had a wonderful Thanksgiving last week! Lineage Logistics just sent me the PPT Agreement with some redline edits (attached). When you get a chance, can you please review and let me know next steps. Thank you so much! Audrey Herbison Economic Development Manager Upstate Colorado Economic Development 822 7th Street, Suite 550 Greeley, CO 80631 (970) 356-4565 Office (303) 681-6883 Cell UpstateColorado.org NoCoREDl.com Weld County Business Recovery Info at WeldRecovery.corn NoCo COVID-19 Resources NoCoRecovers.com From: Don Warden <dwarden@weldgov.com> Sent: Thursday, November 4, 2021 3:44 PM To: Audrey Herbison <aherbison@upstatecolorado.org> Cc: Cathy Schulte <cschulte@upstatecolorado.org>; Rich Werner <rwerner@upstatecolorado.org> Subject: RE: PPT Rebate Request- Precision Building Systems Attached is the agreement Lineage Logistics, LLC. Donald D. Warden Director of Finance and Administration Finance and Administration PO Box 758 1150 O Street Greeley, CO 80632 tel: 970-356-4000 Extension 4218 email: dwarden@co.weld.co.us Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. From: Audrey Herbison <aherbison@upstatecolorado.org> Sent: Thursday, November 4, 2021 10:20 AM To: Don Warden <dwarden@weldgov.com> Cc: Cathy Schulte <cschulte@upstatecolorado.org>; Rich Werner <rwerner@upstatecolorado.org> Subject: RE: PPT Rebate Request- Precision Building Systems 3 J� Y Hi Don, Thank you so much! We appreciate the Commissioners', and your, support! Lineage has requested to move forward with an agreement immediately. The first year the company anticipates requesting reimbursement would be 2024. The company rep that will be signing the agreement is: Michael J. McClendon President International Operations & EVP Network Optimization Lineage Logistics, LLC 465000 Humboldt Drive Novi, MI 48377 Please let me know if you need any additional information. I will connect with PBS and see what works best for them, but I anticipate they will want to wait until they own the site and have a solidified construction schedule before moving forward with the agreement. I will let you know as soon as I hear from them. Thank you, again! Audrey Herbison Economic Development Manager Upstate Colorado Economic Development 822 7th Street, Suite 550 Greeley, CO 80631 (970) 356-4565 UpstateColorado.org NoCoREDl.com Weld County Business Recovery Info at WeldRecovery.com NoCo COVID-19 Resources NoCoRecovers.com From: Don Warden <dwarden@weldgov.com> Sent: Thursday, November 4, 2021 9:47 AM To: Audrey Herbison <aherbison@upstatecolorado.org> Cc: Cathy Schulte <cschulte@upstatecolorado.org>; Rich Werner <rwerner@upstatecolorado.org> Subject: RE: PPT Rebate Request- Precision Building Systems Audrey, The Commissioners have approved both of the requests from PBS and Lineage Logistics. Let me know when you need letters or agreements. Thanks, Donald D. Warden Director of Finance and Administration Finance and Administration PO Box 758 1150 O Street Greeley, CO 80632 tel: 970-356-4000 Extension 4218 email: dwarden@co.weld.co.us 4 Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. From: Audrey Herbison <aherbison@upstatecolorado.org> Sent: Monday, November 1, 2021 2:39 PM To: Don Warden <dwarden@weldgov.com> Cc: Cathy Schulte <cschulte@upstatecolorado.org>; Rich Werner <rwerner@upstatecolorado.org> Subject: PPT Rebate Request- Precision Building Systems Hi Don, I am confidentially working with Precision Building Systems (PBS), a modular home and building materials fabrication company, on a proposed expansion that will relocate their existing operation to a new/expanded state of the art facility in Brighton/Weld County. PBS is currently located in Denver (along the 1-25 corridor) and due to site limitations, they do not have the ability to expand their existing facility. The company is proposing the construction of a 200,000 square foot advanced manufacturing facility in Brighton, just north of Vestas at 1501 E. Crown Prince Blvd. PBS is under contract on the land (currently owned by Vestas) and they are in due diligence. The company has been working with Brighton's planning staff on preliminary development review and the permitting process, and all indications are that the site can support the proposed operation. The company has also been working with Vestas on accessing Vestas's rail spur until one can be built on the proposed site for PBS. As you will see on the attached Project Information Form, the total project investment is estimated at $42M, of which $13M is estimated to be equipment. The facility will employ 150 new FTE in Phase 1, with an additional 50 FTE in Phase 2. The facility average wage is estimate at $29.45/hour or $61,264/year, which is about 111% of the Weld County average wage of $26.65/hour or $55,432/year (2021, most current). Due to the company's current location and their hope to retain as many employees as possible during the relocation, the company conservatively estimated that the new operation in Brighton will employ 30% Weld -residents, but the company has expressed commitment in working with ESWC and Aims CC toward 50% Weld -residency among their employees. The company also anticipates some of their current employees will relocate to Weld County and/or Brighton to be closer to the new facility. I believe that 30% Weld -residency is reasonable/achievable as the facility establishes, with an ability to get to 50% over time, based on the location of the facility and the workforce required for this operation. I have been in contact with City of Brighton and Brighton EDC staff regarding this project and they are supportive of the proposed operation. They are currently in the process of an economic impact study to determine URA and City assistance levels, which will then be proposed to their respective boards. While I do not believe the company is "shopping" incentives, they have requested incentive estimates and preliminary approvals as they finalize the location for their new and expanded facility. All estimates provided in the attached PIF have been confirmed by the company to be "net new" and do not include relocated equipment or employment numbers. Based on the company's estimated equipment investment of $13M, a Weld County partial personal property tax rebate is estimated at $156,473 over 10- 5 years (see attached depreciation schedule). The proposed site is in the Enterprise Zone and may also be able to take advantage of Colorado First/Existing Industries training grants, but this project is not eligible for JGITC, as they are not considering leaving Colorado. PBS's new modular home and building -materials fabrication facility and operation meets the Weld PP tax rebate criteria of constructing/developing a new business facility, strengthening the county's primary employment base by creating new jobs, and further diversify our manufacturing sector. The company's annual average wage ($61,264/year) is above the Weld County Average of $55,432 and the company pays 50% of employee health premiums and benefits are 23.5% of salary. The company plans to work with ESWC to hire 50% Weld residents and ensure they are paying market/completive wages to attract the workforce they need. They are also interested in working with Aims CC to form long-term training partnerships. PBS has been a pleasure to work with, and Brighton has been a great partner on this project. We are excited about PBS's expansion in Weld County and the positive economic impact that it brings. I am happy to provide any additional information and/or answer any questions you or the Commissioners may have. Please let me know if the Commissioners would support a 50% personal property tax rebate for this project. Thank you so much! Audrey Herbison Economic Development Manager Upstate Colorado Economic Development 822 7th Street, Suite 550 Greeley, CO 80631 (970) 356-4565 Office (303) 681-6883 Cell UpstateColorado.org NoCoREDl.com Weld County Business Recovery Info at WeldRecovery.com NoCo COVID-19 Resources NoCoRecovers.com 6 Hello