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HomeMy WebLinkAbout20202782.tiffRESOLUTION RE: APPROVE AGREEMENT PURSUANT TO C.R.S. §30-11-123 AND AUTHORIZE CHAIR TO SIGN - VESTAS BLADES AMERICA, INC. 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 Vestas Blades America, Inc., 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 Vestas Blades America, Inc., 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 14th day of September, A.D., 2020. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO ATTEST: datdeo ; ok Weld County Clerk to the Board BY: 21 Deputy Clerk to the Board APP VED AS Tf ; ,�, y};4 ) `^T 4� 151 vi f:arbara Kirk Mike Freeman, Chair Steve Eloreno, Pro -Tern aunty ' orney Kevin D. Ross Date of signature. f23 42. C c: F1 C /so) AcT (Bc ICD),G A NS), PL('rP),Town oFndsor 09/23/.20 2020-2782 F10071 AGREEMENT PURSUANT TO C.R.S. § 30-11-123 THIS AGREEMENT is made and entered into thisl4thday of Sept, 2020, 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 Vestas Blades America, Inc. whose address is 11140 Eastman Park Dr, Windsor, CO 80550, 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: 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 11140 Eastman Park Dr, Windsor, CO 80550 ("the Facility"), placed into service in Weld County in: a. Between 2020-2028 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 (hereinafter referred to as, "10 -Year Term"). Individual pieces of personal property place in service between the years of 2020- 2028 shall only receive the fifty -percent (50%) of the amount of personal property taxes paid by the Taxpayer for personal property for the 10 -Year Term. For example, equipment placed in service in 2020 will receive the fifty -percent (50%) of the amount of personal property taxes paid by the Taxpayer for personal property for the 10 -Year Term beginning in 2021 and ending in 2030, for equipment placed in service in 2021 the 10 -Year Term beginning in 2022 and ending in 2031, for 1 2020-2782 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. 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 With a Copy to: If to Taxpayer: Weld County Attorney 1150 O Street Greeley, CO 80632 Hans Jespersen VP/GM Vestas Blades America 11140 Eastman Park Drive Windsor, CO 80550 HJS (D,vestas.com 970-674-6200 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. 3 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. 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. The above and foregoing Agreement was hereby approved on the 14tlday of A.D., 2020. ATTEST: dsdrtiffA) Weld County (.1erx to the BY: eputy Clerk to the Controller Sept., BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO C ike Freeman, Chair SEP 1 4 2020 APPROVED AS TO SUBSTANCE: ."&/1 Elected Official or Department Head TAXPAYER: Vestas Blades A rerica By: 4 ( Hans Jespe •en, VP / GM 026�� - 02782, Esther Gesick Subject: Attachments: FW: Vestas Multi -Year Expansion Project WC PPT Incentive Agreement_Vestas Signed_02Sept2020.pdf From: Don Warden <dwarden@weldgov.com> Sent: Wednesday, September 2, 2020 9:29 AM To: Esther Gesick <egesick@weldgov.com> Subject: FW: Vestas Multi -Year Expansion Project Will you put this on the BOCC agenda for Monday. September 14th. I will be there to present 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 <aherbisonc uostatecolorado.org> Sent: Wednesday, September 2, 2020 7:11 AM To: Don Warden <dwarden@weldgov.com> Subject: RE: Vestas Multi -Year Expansion Project d;aaatia x1: This email originated from outside of Weld County Government. Do not click links or open attachments unless you recognize the sender and know the content is safe. Morning Don, Attached is the signed Vestas agreement. Please let me know if there is anything else I should provide. Thank you! Audrey Herbison Economic Development Manager Upstate Colorado Economic Development 822 7th Street, Suite 550 1 Greeley, CO 80631 (970) 356-4565 jpstateColorado.org NoCoREDL.com Weld County Business Recovery Program WeldRecovery.com NoCo COVID-19 Resources NoCoRecovers.com From: Don Warden <dwarden@weldgov.com> Sent: Monday, August 31, 2020 11:28 AM To: Audrey Herbison <aherbison@upstatecolorado.org> Subject: RE: Vestas Multi -Year Expansion Project Good catch. Yes, we should change it the $298,294 amount. I have changed it on the attached agreement. 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<aherbisonPupstatecolorado.org> Sent: Monday, August 31, 2020 9:54 AM To: Don Warden <dwarden@weldgov.com> Subject: RE: Vestas Multi -Year Expansion Project (Caution: This email originated from outside of Weld County Government. Do not click links or open attachments unless you recognize the sender and know the content is safe. Thank you, Don. I will send this to the company for signature. In light of the new investment estimate, did you want me to change the new max amount to $298,294, or would you like to keep it at the original $397,725 (in case the investment returns to the initial projection)? Please let me know when you get a chance. Thank you! Audrey Herbison Economic Development Manager 2 Upstate Colorado Economic Development 822 7th Street, Suite 550 Greeley, CO 80631 (970) 356-4565 www.UpstateColorado.org From: Don Warden <dwarden@weldgov.com> Sent: Monday, August 31, 2020 9:27 AM To: Audrey Herbison <aherbison@upstatecolorado.org> Subject: FW: Vestas Multi -Year Expansion Project This what I sent Cathy on July 31st. 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: Don Warden Sent: Friday, July 31, 2020 1:43 PM To: 'Cathy Schulte' <cschulte@upstatecolorado.org> Subject: RE: Vestas Multi -Year Expansion Project Meant to attach the agreement, if the change with the maximum $397,725 is okay. Donald D. Warden Director of Finance and Administration Finance and Administration PO Box 758 1150 0 Street Greeley, CO 80632 tel: 970-356-4000 Extension 4218 email: dwarden@co.weld.co.us 3 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: Don Warden Sent: Friday, July 31, 2020 1:40 PM To: Cathy Schulte <cschulte@upstatecolorado.org> Subject: RE: Vestas Multi -Year Expansion Project I am doing fine, and hope you are also. Crazy times with COVID. I am fine with the multi -year agreement. Just checking before I send it. The total amount of incentives over the period is still estimated to be $397,725, correct? I have added the following to handle the multi -year agreement and put an estimated maximum amount. I think our auditors would want the estimated amount listed. Will this work for them? 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 11140 Eastman Park Dr, Windsor, CO 80550 ("the Facility"), placed into service in Weld County in: a. Between 2020-2028 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 (hereinafter referred to as, "10 -Year Term"). Individual pieces of personal property place in service between the years of 2020-2028 shall only receive the fifty -percent (50%) of the amount of personal property taxes paid by the Taxpayer for personal property for the 10 -Year Term. For example, equipment placed in service in 2020 will receive the fifty -percent (50%) of the amount of personal property taxes paid by the Taxpayer for personal property for the 10 -Year Term beginning in 2021 and ending in 2030, for equipment placed in service in 2021 the 10 -Year Term beginning in 2022 and ending in 2031, for equipment placed in service in 2022 the 10 -Year Term beginning in 2023 and ending in 2032, etc. b. The total estimated maximum incentive payment over the period of the agreement is $397,725 based upon the current Weld County mill levy. 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: Cathy Schulte <cschulte@upstatecolorado.org> Sent: Friday, July 31, 2020 8:35 AM To: Don Warden <dwarden@weldgov.com> Cc: Audrey Herbison <aherbison@upstatecolorado.org> Subject: Vestas Multi -Year Expansion Project Caution This email originated from outside of Weld County Government. Do not click links or open attachments unless you recognize the sender and know the content is safe. Morning Don, Hope all is well in your world . As you'll recall, last year we worked with Vestas on their multi -year (2020-2028) expansion project - Phase 1&2 value of $80M with an estimated total county rebate value of $397,725. A 2019 PP tax agreement was completed. They're now requesting a 2020-2028 PP tax agreement per the expansion project. Attached is the Weld support letter, PIF and PP Tax worksheet that was completed last year. While I know it's not your preference, would a multi -year agreement make sense for this project? Below is language I pulled from the multi -year Smuckers agreement with date modifications. Or, do you still want to have them do an annual agreement? "Between 2020-2028 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 (hereinafter referred to as, "10 -Year Term"). Individual pieces of personal property placed in service between the years of 2020-2028 shall only receive fifty -percent (50%) of the amount of personal property taxes paid by the Taxpayer for personal property for the 10 -Year Term. For example, equipment placed in service in 2020 will receive fifty -percent (50%) of the amount of personal property taxes paid by the Taxpayer for personal property for the 10 -Year Term beginning in 2021 and ending in 2030, for equipment placed in service in 2021 the 10 -Year Term beginning in 2022 and ending in 2031, for equipment placed in service in 2022 the 10 -Year Term beginning in 2023 and ending in 2032, etc." Let me know your thoughts and if you need anything else from me. Thanks so much! Cathy Cathy L. Schulte, CEcD Senior Vice President & Weld County EZ Administrator 5 Upstate Colorado Economic Development 970-356-4565 cschulteC@upstatecolorado.orq 6 Hello