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HomeMy WebLinkAboutCouncil Actions 03-19-99 SpMtgROANOKE CITY CO UNCIL SPECIAL MEE TING March 19, 1999 9:15 a.m. CLARION HOTEL - BALLROOM C 2 72 7 Ferndale Drive, N. W. Roanoke, Virginia AGENDA Call Order -- Roll Call. Mayor David A. Bowers. Invocation: Mayor David A. Bowers. The Pledge of Allegiance to the Flag of the United States of America will be led by Mayor Bowers. Statement of Purpose. Mayor Bowers. A report of the City Manager with regard to an economic development matter concerning the location of a business or industry in the City and incentives for such business or industry; an application to the Commonwealth of Virginia Department of Transportation for Industrial Access Road Funds to provide access to a new industrial facility; appropriation and acceptance of funds in connection therewith; and scheduling a public hearing to receive citizen input on the issuance of bonds under the Public Finance Act of the Code of Virginia. 6. Adjournment. DAVID A. BOWERS Mayor CITY OF ROANOKE OFFICE OF THE MAYOR 215 CHURCH AVENUE S.W. - ROOM 452 ROANOKE, VIRGINIA 24011-1594 TELEPHONE: (540) 853-2444 FAX: (540) 853.1145 March 18, 1999 The Honorable Vice-Mayor and Members of Roanoke City Council Roanoke, Virginia Request for Special Meeting of Council on Friday, March 19, 1999 Dear Members of Council: In accordance with the provisions of Section 10, Meetings of Council, of the Charter of the City of Roanoke, I hereby call a Special Meeting of Council and provide you with notice of that meeting. The Special Meeting is for the purpose of considering and adopting measures relating to an economic development matter concerning the location of a business or industry in the City and incentives for such business or industry and an application to the Commonwealth of Virginia Department of Transportation for Industrial Access Road Funds to provide access to a new industrial facility. The special meeting of Council will be held on Friday, March 19, 1999, at 9:15 a.m., at the Clarion Hotel, Ballroom C, 2727 Ferndale Drive, N. W., Roanoke, Virginia. Sincerely, David A. Bowers Mayor DAB: jsj GET/DAB/j sj pc: W. Robert Herbert, City Manager James D. Ritchie, Assistant City Manager Wilburn C. Dibling, Jr., City Attorney James D. Grisso, Director of Finance Kit B. Kiser, Director of Utilities and Operations William F. Clark, Director of Public Works Glenn D. Radcliffe, Director of Human Development George C. Snead, Director of Public Safety Willard N. Claytor, Director Real Estate Valuation Robert H. Bird, Municipal Auditor Phillip F. Sparks, Chief of Economic Development Charles Huffine, City Engineer Mary F. Parker, City Clerk Honorable Mayor David A. Bowers and Members of City Cotmcil Roanoke, Virginia Dear Mayor Bowers and Members of City Council: II. March 19, 1999 Council Report # 98-46 SUBJECT: Johnson and Johnson economic development project. BACKGROUND A. Dr. Ronald Blum, a Roanoke resident and entrepreneur, founded Innotech which incorporated in 1990. B. Innotech soon became a leader in eyeglass lens technology. C. Johnson and Johnson purchased Innotech in March 1997. D. Innotech merged into Johnson and Johnson Vision Products, Inc. (J & J) in October 1998. CURRENT SITUATION A. J & J desires to build a new, modem manufacturing and distribution facility in the City of Roanoke. B. The Manufacturing facility would specialize in vision products. C. $125 million investment in new construction and equipment within the City is expected within the first 5 years after completion of construction. D. The investment is expected to double in size to $200 million within 10 years. E. This project will be the largest industrial investment in the history of the City of Roanoke and the Roanoke Valley. The initial building will be approximately 143,000 square feet. J & J expects to employ 600 people within three years of opening. Employment projections increase to 1200 by the 10th year. Average annual production wages will be $28,080 plus benefits. Fo G. H. I. Honorable Mayor David A. Bowers and Members of City Council Roanoke, Virginia Page 2 Jo The Maury L. Strauss and Shelia S. Strauss property between the Clarion Hotel and Countryside Golf course consisting of 31.206 acres has been sold to J & J for the new facility, closing occurred on January 19, 1999. (See attachment A) K. The property_ has been rezoned to light manufacturing (LM) by Roanoke City Council Resolution # 34061-110298 on November 2, 1998. The property is located in a Commonwealth of Virginia Enterprise Zone known as the 581/Hershberger Subzone, which was awarded by the Commonwealth of Virginia in October, 1998. Mo Two million dollars is expected to be made available to the City from the Govemor's Opportuni _ty Fund (GOF) by Governor Gilmore~ from which site acquisition will account for $1,600,000 and $400,000 for services of architects, engineers and other consultants. No The Virginia Economic Development Partnership has informed J & J that certain incentives from the state government will be available to J & J, subject to J & J's qualification. Those incentives are as follows: 1. Enterprise Zone Investment Tax Credit $5,500,000. 2. Major Business Facilities Job Tax Credit ($1000 credit per job) 800,000. 3. CIT Research funds 300,000. 4. Recruiting and Training cost avoidance ($800 per job) 1,842,304. $8,442,304. Minimum Total Tax Credits and Grants from the Commonwealth of Virginia(including GOF of $2,000,000) $10~442,304. O. City's appropriation or donation to the project will be $9,174,611 outlined as follows: $2,000,000 - cost of off-site improvements such as improvements to public roads, expansion of Frontage Road and cost of right of way acquisition. If the cost for such improvements is less than $2,000,000 any difference will be used as an additional appropriation to the Industrial Development Authority (IDA) to grant to J & J. Honorable Mayor David A. Bowers and Members of City Council Roanoke, Virginia Page 3 rn $4,600,000 - to the IDA to grant to J & J for infrastructure improvement on the property, i.e.: )~ Installation or extension of utility pipes and lines. > Grading )~ Storm water management facilities )~ Roads, bridges and parking facilities > Foundations >' Landscaping and exterior lighting [] $2,574,611 - to the IDA to grant to J & J for purchase of equipment for job training and production. P. $7.6 million is needed to fully fund the City's proposed appropriation or grant of $9,174,611. Up to $450,000 in State Industrial Access Road Funds will be requested from the Commonwealth of Virginia Department of Transportation to apply toward City infrastructure cost. Industrial Development Authority has authority to make grants to promote economic development. The City intends to appropriate $7,174,611 plus funds received from Governors Opportunity Fund to the IDA to fund grants to J&J. S. IDA has approved by resolution the City's request for the IDA to provide the described package of incentives to J & J or its assigns. T. The City will enter into a Performance Agreement with J & J, (see attached) committing J & J to the following; J & J will expend a minimum of $125,000,000 within the City between July 1, 1998 and the fifth anniversary of the construction completion date of July 1, 2000. If the total amount of expenditures is less than $125,000,000, J & J will promptly reimburse and repay the IDA 7.34% of the amount by which such capital investment is less than $125,000,000. J & J commits to provide a minimum of 600 full-time jobs within the City of Roanoke within 36 months from the date J & J has obtained a permanent certificate of occupancy for the facility and begins shipment of its product. IfJ & J has not provided 600 such jobs by that date, then J & J shall be entitled to keep only the percentage of the $2,000,000 equal to the percentage of 600 such jobs provided by that date and be obligated to repay the IDA the remaining percentage for reimbursement to the Governor's Opportunity Fund. Honorable Mayor David A. Bowers and Members of City Council Roanoke, Virginia Page 4 U. J & J intends to begin construction by June 30, 1999, and begin production of its products by July 1, 2000. V. The City will provide public improvements in the areas that are more fully described in the attached Performance Agreement, Section 5. W. The City anticipates a full return on its investment in less than 8 years from the time the facility is in production. X. The Code of Virginia gives localities the authority to issue bonds under the Public Finance Act by holding a public hearing. III. ISSUES IV. A. Timing B. Economic Development C. Funding D. City Council's Vision ALTERNATIVES: A. City Council authorize the following: The appropriation of up to $11,174,611 (to include up to $2,000,000 of expected GOF funds) - less $2,000,000 for off site improvements, for Economic Development purposes to the IDA to fund a grant to J & J. Authorize the Ci_ty Manager to enter into the performance agreement with the IDA and J & J or its assigns in a form approved by the City Attorney and substantially similar to the one attached to this report and allowing the IDA to make an Economic Development grant to J & J providing for "eligible cost" including land acquisition, site preparation, engineering, design cost, construction cost and other cost including financial cost, legal cost, management cost and related consultants fees. The portion of the grant funded with money from the Governor's Opportunity Fund will be used only toward qualified project investment under the Fund's rules and regulations. 3. Authorize the City Manager to request and accept up to $2,000,000 from the Governor's Opportunity Fund and appropriate up to $2,000,000 from Honorable Mayor David A. Bowers and Members of City Council Roanoke, Virginia Page 5 Number 008-002-9701. Establish an accounts receivable for the Governor's Opportunity Fund proceeds of up to $2,000,000. Authorize the City Manager to request and accept $450,000 from the Commonwealth of Virginia Department of Transportation in Industrial Access Road Funds and appropriate the funds to a new Capital Projects Fund account entitled J & J Off-Site Improvements, Account Number 008-002-9700 and establish an accounts receivable for the State Industrial Access Road Funds for $450,000. The following is the scope of proposed road improvements and funding: Improvements and Extension of Frontage Road Extension of Ordway Cul-de-sac Ferndale at Ordway and at J & J property Total anticipated City cost less Industrial Access Road Fund $2,000,000. -450,000. Net anticipated City cost (which includes $150,000 matching funds required for Industrial Access Road Funds) $1,550,000. o Appropriate $1,124,611. from the Undesignated Capital Funds to a new Capital Projects account entitled" J & J Off-Site Improvements", Account Number 008-002-9700. Authorize City Clerk to advertise for a public hearing to be held on April 19, 1999, for the purpose of receiving citizen input on the issuance of $7.6 million in bonds under the Public Finance Act of the Code of Virginia. Timing is critical in that J & J must have their plant in operation by July 1, 2000. Economic Development program is advanced by the investment of $125,000,000 increasing to $200,000,000 in ten years and providing 600 full time jobs increasing to 1200 in ten years. Co Funding for repayment of the $7.6 million in bonds and interest relating to the J & J project will be provided by the annual new tax revenue from J & J's investment. $1,124,000 is available in the Undesignated Capital Fund Account. $450,000 of Industrial Access Road Funds will be requested from the Commonwealth of Virginia Department of Transportation. Honorable Mayor David A. Bowers and Members of City Council Roanoke, Virginia Page 6 City Council Vision for economic development will be greatly enhanced with the new investment and high tech and high quality jobs to be provided. B. City Council not authorize the following: The appropriation of up to $11,174,611 (to include up to $2,000,000 of expected GOF funds) - less $2,000,000 for off site improvements, for Economic Development purposes to the IDA to fund a grant to J & J. Authorize the City Manager to enter into the performance agreement with the IDA and J & J or its assigns in a form approved by the City Attorney and substantially similar to the one attached to this report and allowing the IDA to make an Economic Development grant to J & J providing for "eligible cost" including land acquisition, site preparation, engineering, design cost, construction cost and other cost including financial cost, legal cost, management cost and related consultants fees. The portion of the grant funded with money from the Governor's Opportunity Fund will be used only toward qualified project investment under the Fund's rules and regulations. o Authorize the City Manager to request and accept up to $2,000,000 from the Governor's Opportunity Fund and appropriate up to $2,000,000 from the Governor's Opportunity Fund proceeds to a new Economic Development Fund Account entitled "J & J Development". Establish as accounts receivable for the Governor's Opportunity Fund proceeds of up to $2,000,000. o Authorize the City Manager to request and accept $450,000 from the Commonwealth of Virginia Department of Transportation in Industrial Access Road Funds and appropriate the funds to a new Capital Projects Fund account entitled J & J Off-Site Improvements and establish an accounts receivable for the State Industrial Access Road Funds. The following is the scope of proposed road improvements and funding: Improvements and Extension of Frontage Road Extension of Ordway Cul-de-sac Femdale at Ordway and at J & J property Honorable Mayor David A. Bowers and Members of City Council Roanoke, Virginia Page 7 Total anticipated City cost less Industrial Access Road Fund $2,000,000. -450,000. Net anticipated City cost (which includes $150,000 matching funds required for Industrial Access Road Funds) $1,550,000. 5. Appropriate $1,124,611 from the Undesignated Capital Funds to a new Capital Projects account entitled "J & J Off-Site Improvements". Authorize City Clerk to advertise for a public hearing to be held on April 19,1999, for the purpose of receiving citizen input on the issuance of $7.6 million in bonds under the Public Finance Act of the Code of Virginia. mo Timing for J & J would not be met, therefore jeopardizing the development of the project in Roanoke. Economic Development program will not be enhanced by new investments and jobs. C. Funding will not be an issue. D. City Council Vision for economic development will not be realized. V. RECOMMENDATION: Recommend that City Council authorize the following actions: The appropriation of up to $11,174,611 (to include up to $2,000,000 of expected GOF funds) - less $2,000,000 for off site improvements, for Economic Development purposes to the IDA to fund a grant to J & J. Authorize the City Manager to enter into the performance agreement with the IDA and J & J or its assigns in a form approved by the City Attorney and substantially similar to the one attached to this report and allowing the IDA to make an Economic Development grant to J & J providing for "eligible cost" including land acquisition, site preparation, engineering, design cost, construction cost and other cost including financial cost, legal cost, management cost and related consultants fees. The portion of the grant funded with money from the Governor's Opportunity Fund will be used only toward qualified project investment under the Fund's rules and regulations. Honorable Mayor David A. Bowers and Members of City Council Roanoke, Virginia Page 8 o Authorize the City Manager to request and accept up to $2,000,000 from the Governor's Opportunity Fund and appropriate up to $2,000,000. from the Governor's Opportunity Fund proceeds to a new Economic Development Fund Account entitled" J & J Development", Account Number 008-002-9701. Establish an accounts receivable for the Governor's Opportunity Fund proceeds of up to $2,000,000. Upon certification of funding by the City's Director of Finance. Authorize the City Manager to request and accept $450,000 from the Commonwealth of Virginia Department of Transportation in Industrial Access Road Funds and appropriate the funds to a new Capital Projects Fund account entitled "J & J Off-Site Improvements", Account Number 008-002-9700 and establish an accounts receivable for the State Industrial Access Road Funds for $450,000. The following is a breakdown of proposed improvements and funding: Improvements and Extension of Frontage Road Extension of Ordway Cul-de-sac Femdale at Ordway and at J & J property Total anticipated City cost less Industrial Access Road Fund $2,000,000. -450,000. Net anticipated City cost (which includes $150,000 matching funds required for Industrial Access Road Funds) $1,550,000. Appropriate $1,124,611. from the Undesignated Capital Funds to a new Capital Projects account entitled "J & J Off-Site Improvements", Account Number 008-002-9700. Authorize City Clerk to advertise for a public hearing to be held on April 19, 1999, for the purpose of receiving citizen input on the issuing of $7.6 million in bonds under the Public Finance Act of the Code of Virginia. Respectfully Submitted, W. Robert Herbert City Manager Honorable Mayor David A. Bowers and Members of City Council Roanoke, Virginia Page 9 WRH/PFS/kdc cc: Assistant City Manager Director of Finance City Attorney Director of Utilities & Operations Director of Public Works Manager, Management & Budget Chief, Economic Development City Engineer ECONOMIC DEVELOPMENT · gTE PROPOSF.,D CUL-DE-SAC PEOPOSED CUL-DE-SAC ./ pROPO,e~"~.D NEW CONSTI~UCTION ECONOMIC S~I~ CUL-I~-SAC IMPI~O~M~N'r~ TO OROWAY PROPOSED CUL-DE-SAC' ,.../ CUL-0~-$AC ATTACHMENT A PERFORMANCE AGREEMENT iCOPY This Performance Agreement ("Agreement") is dated this __ day of March, 1999 by and among the City of Roanoke, Virginia ("City"), a municipal corporation organized and existing under the laws of the Commonwealth of Virginia, the Industrial Development Authority of the City of Roanoke, Virginia ("Authority"), an industrial development authority organized and existing under the laws of the Commonwealth of Virginia, and Johnson & Johnson Vision Products, Inc. ("J & J"), a Florida Corporation and a wholly owned subsidiary of Johnson and Johnson, a New Jersey corporation. WITNESSETH: Recitals J & J has acquired real property ("Land") consisting of approximately 31.206 acres in two adjoining parcels, designated Tax Map numbers 6460101 and 6460106 according to the City's tax map records and fronting Ferndale Drive and Interstate Route 581. J & J has acquired the Land for the construction and operation of a manufacturing facility and related research and development and office facilities. The City and the Authority wish to encourage J & J to use the Land to construct, equip and operate the facilities herein described. The City has determined that it will improve certain public roads and other public facilities and acquire the property necessary therefor, as well as make an appropriation or donation of money to the Authority, all for the purposes of promoting economic development within the City and the Roanoke Valley. The Authority, based upon the application and undertakings ofJ & J, has determined to make grants to J & J to promote economic development in the City and the Roanoke Valley, and the City will provide sufficient funds to the Authority to enable the Authority to make such grants. Subject to the terms of this Agreement, the City's appropriation or donation described in the preceding paragraphs will be in an amount of $9,174,611.00, which amount will include some, if not all, of the costs to the City to improve the public roads and other public improvements described in this Agreement. The City anticipates receiving an additional $2,000,000.00 from the Governor's Opportunity Fund, and this amount when received, will constitute an additional appropriation to the Authority to be applied as provided in this Agreement. Agreement NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties hereto mutually agree as follows: 1. J & J has acquired title to the Land. 2. The City represents to J & J that the Land is located in an area designated as the 581/Hershberger Subzone to the City's Enterprise Zone Two and that the local incentives for businesses locating there will be the same as for businesses in the other part of the City's Enterprise Zone Two and will be in full force and effect upon J & J's commencement of operations in the Facility described in the following section. 3. J & J will construct on the Land a manufacturing facility and related research and development and office facilities and related improvements, or any combination thereof ("Facility"). J & J intends to obtain necessary permits and begin construction of the Facility by June 30, 1999 ("Construction Start Date") and open the Facility and begin production of its products (Completion Date) by July 1, 2000. 4. Subject to the terms of this Agreement, the City will appropriate $9,174,611.00 t0.the Authority, less the amount expended for offsite improvements in accordance with this Agreement, and use best efforts to obtain an additional $2,000,000.00 from the Governor's Opportunity Fund ("GOF") and appropriate that amount as well to the Authority, and the City and the Authority will expend the funds as an economic development grant as follows: (a) The City will construct certain offsite improvements that will promote economic development in the City and Roanoke Valley and benefit its citizens generally, but that are also necessary for the operation of the Facility. These "offsite" improvements and the dates by which they will be complete are discussed in Section 5. From the total of $11,174,611.00 (which includes GOF funds) the sum of $2,000,000.00 will be allocated to and deducted for the cost ofoffsite improvements and cost of right-of-way acquisition. Any costs for the offsite roads, improvements and right-of-way acquisition that exceed $2,000,000.00 will not be deducted from the economic development grant to J & J. The City agrees to keep J & J reasonably informed of the City's progress with the offsite improvements and to notify J & J in advance, if practicable, that the possibility for cost overruns exists. In the event that such costs exceed or may exceed $2,000,000.00 the City and J & J will confer together and cooperate reasonably together to modify the offsite improvements described in Section 5 in a way that best fulfills the purposes intended, while limiting the City's expenditure to the $2,000,000.00 amount herein described. However, if such costs exceed or may exceed the sum of $2,000,000.00, any further funds or costs to be expended by the City on those items must receive the prior approval of City Council and any further work on those items will be subject to such approval. The parties acknowledge that City Council may, by a measure adopted at a City Council meeting, elect to authorize an additional appropriation of up to $250,000.00, if such costs exceed $2,000,000.00, but has no obligation to appropriate any amount over $2,000,000.00. In no event shall the costs for such items exceed a total of $2,250,000.00. (b) The City will use its best efforts to obtain from the Governor's Opportunity Fund $2,000,000.00 and appropriate this sum to the Authority, and the Authority will in turn grant this amount to J & J within 45 days after J & J gives written notice to the City and the Authority that J & J has closed on its purchase of the Land or after execution of this Agreement, whichever is later. J & J will cooperate with the City in its efforts to obtain such funds. Of this sum, $1,600,000.00 will be applied to reimburse J & J the purchase price it has paid for the Land, and $400,000.00 will be applied to reimburse a portion of J & J's costs for the services of architects, engineers and other consultants. (c) The monies described in this part (c) are called "Residual Grants", meaning the balance of $11,174,611.00 remaining after subtracting an allocation of $2,000,000.00 for the City's cost of the offsite improvements and $2,000,000.00 in Governor's Opportunity Funds. The Residual Grants of $7,174,611.00 will be appropriated by the City to the Authority, and the Authority will in mm grant that sum as an economic development grant to J & J to reimburse or be applied to the following costs: (i) following eligible costs: $4,600,000.00 for infrastructure on the Land, allocated to the Installation or extension of utility pipes and lines Grading Stormwater management facilities Roads, bridges parking facilities Landscaping, signs and exterior lighting Foundations The foregoing allocation is an estimate, and J & J's actual experience will not cause the total amount of Residual Grants either to increase or decrease, but the allocation in the following subpart (ii) will be adjusted, so that the aggregate amount of Residual Grants remains fixed at $7,174,611.00, provided that all such funds are used for eligible costs. (ii) $2,574,611.00 for the purchase of equipment that is important to job training and production, adjusted, depending upon J & J's actual cost for improvements on the Land, so that the total amount of Residual Grants is $7,174,611.00, provided that all such funds are used for eligible costs. The City will appropriate to the Authority, and the Authority will grant J & J $4,000,000.00 of the Residual Grant no later than one hundred twenty (120) days after J & J's Construction Start Date, defined in Section 3. The City will appropriate to the Authority, and the Authority will grant J & J the remainder of the Residual Grant no later than ninety (90) days after the Completion Date, defined in Section 3. (d) Notwithstanding any of the foregoing, the Residual Grants will be increased by the amount, if any, by the which the City' s actual cost to construct the offsite roads, improvements and acquisition of right-of-way is less than the $2,000,000.00 allocated from the foregoing funds for that purpose. The City's cost shall be the sum of all amounts actually paid or incurred by the City for design and construction of roads, improvements and acquisition of right-of-way, as called for by this Agreement. This remaining sum of money, if any, shall be appropriated by the City to the Authority as soon as practicable after the amount is determined, and the Authority will thereupon grant the amount to J & J in accordance with the other provisions of this Agreement. (e) However, J & J agrees to provide the Authority information to establish that all grant funds J & J receives either have been expended or will be expended or incurred for site development work and eligible costs as set forth above. Such documentation will be supplied by J & J to the Authority to the extent available prior to the first grant payment of GOF money of up to $2,000,000.000 and the second grant payment of $4,000,000.00 as set forth above and on a continuing basis thereafter to show that those monies were used for site development and eligible costs by J & J. Prior to the third grant payment as set forth above, J & J will supply information and documentation to the Authority to allow the Authority to establish that the remaining amount of grant funds to be made to J & J has been expended or incurred by J & J in site development work or eligible costs as set forth herein and in a sufficient time period to allow the Authority to evaluate the documentation and to meet the payment schedule as set forth above. Such information will include all information and documentation that may be required by the State for the GOF money. Upon receipt from J & J of any information and documentation reasonably deemed by the Authority insufficient for its purposes, the Authority shall promptly notify J & J and cooperate with J & J to develop an alternative, reasonable format or mode of presentation. "Eligible costs" are understood to include land acquisition, site preparation, design costs, construction, cost of equipment for the Facility, and other costs, including, related consultant costs, provided however, that any grant funded with money from the GOF will be used only toward qualified project investment under the GOF's rules and regulations. If any economic grant funds are not used by J & J for economic development and eligible costs, as contemplated or required by this Agreement, J & J will repay to the Authority the amount of any such funds not used as required. (f) The Authority will request disbursement of an appropriation from the City at least 15 business days prior to the date it is to make the corresponding grant payment to J & J. The request will be made through the City's Economic Development Office, and the City will make disbursement within 10 business days of the request, except that money from the GOF will only be provided by the City to the Authority no sooner than 10 business days after the City receives such funds from the GOF. 5. Subject to the terms of this Agreement, the City will acquire the necessary rights of way and construct or cause to be constructed, the following offsite improvements, to be complete by the date as of which J & J receives a permanent certificate of occupancy for the Facility or July 1, 2000, whichever is later. (a) The extension of Ordway Drive from its northern terminus to intersect Ferndale Drive, generally as shown on the attached Exhibit A, according to standards of Virginia Department of Transportation and the standards designated J & J-City of Roanoke Standards for Offsite Improvements and set forth on Exhibit B attached (together called "Road Standards"), to provide for access between Hershberger Road and the Land by a City maintained public street. The parties anticipate the closure of Ferndale Drive north of the line identified as "new north terminus Ferndale Drive" on the attached Exhibit A, and the newly established street will lie within the shaded area shown on Exhibit A. (b) The existing right of way of Ferndale Drive will be terminated and a cul-de-sac established at approximately 400 feet from its intersection with FerncliffAvenue at the location designated D on the attached Exhibit A. The existing pavement between the new cul-de-sac and the new Ordway Drive extension shall be demolished and obscured. (c) The southerly segment of Frontage Road, beginning at Ordway Drive, will be improved and extended as a city street to connect with the northerly segment of Frontage Road which presently terminates at or near Highland Farm Road to provide principal vehicle access to and from the Land in both directions, north and south. J & J will dedicate to the City, without charge, a right of way 50 feet in width abutting the 1-581 boundary to allow the connection of the two segments of the roadway not now connected. J & J will assess no charge to the City for other easements necessary for development and use of the Land. The City will acquire such additional right of way from other property owners as is necessary and provide improvements according to Road Standards. The parties acknowledge and agree that governmental regulation, including necessary FEMA approvals, as well as unforeseeable circumstances, may delay construction of the new segment of Frontage Road extending from the northerly boundary line of the Land in a northerly direction across the golf-course property to the intended connection at or near Highland Farm Road. If the City anticipates or encounters such delay in governmental approvals or delay occasioned by other circumstances, the City will so advise J & J, and the City and J & J will promptly confer together and if reasonably necessary, extend the time by which this segment of Frontage Road is to be completed by up to three (3) additional periods of 90 days-each. J & J will not unreasonably withhold its consent to any such extension reasonably required. (d) The above roads, improvements and acquisition of right of way will be subject to approval by any necessary agencies or departments as may be required by federal, state, or city laws or regulations. The City agrees to keep J & J reasonably informed of the City's progress with the offsite improvements and to notify J & J in advance, if practicable, that the possibility for cost overruns exists. In the event that such costs exceed or may exceed $2,000,000.00 the City and J & J will confer together and cooperate reasonably together to modify the offsite improvements described in Section 5 in a way that best fulfills the purposes intended, while limiting the City's expenditure to the $2,000,000.00 amount herein described. Furthermore, if the total costs or expected costs for such items exceed $2,000,000.00, as allocated for such items in this Agreement, any further funds or work to be expended on those items must receive the prior approval of City Council and any further work on those items will be subject to such approval. The parties acknowledge that City Council may, by a measure adopted at a City Council meeting, elect to authorize an additional appropriation of up to $250,000.00, if such costs exceed $2,000,000.00, but has no obligation to appropriate any amount over $2,000,000.00. In no event shall the cost for such items exceed a total of $2,250,000.00. 6. J & J commits that, between July 1,1998 and the fifth anniversary of the Completion Date, it will expend at least $125,000,000.00 on the Facility and on equipment installed and used in the City of Roanoke, and within a reasonable period of time from the complete expenditure, but in no event later than the fifth anniversary of the Completion Date, J & J will certify and document to the Authority and the City that its capital expenditures so described aggregate at least $125,000,000.00 or, if the aggregate is less, then J & J will certify and document to the Authority and the City the specific amount of all such capital expenditure between July 1, 1998 and the fifth anniversary of the Completion Date. If the total amount of such expenditures is less than $125,000,000.00, the grant originating with the City (that is, the grant of $9,174,611.00, not including GOF funds) will be reduced by seven and 34/100 percent (7.34%) of the amount by which such capital investment is less than $125,000,000.00. In that event, J & J will be entitled to retain only the grant in the reduced amount which will include the portion up to $2,000,000.00 allocated and expended by the City for offsite improvements in accordance with the other provisions of this Agreement. IfJ & J's capital expenditures above described are less than $125,000,000.00 as of the fifth (5th) anniversary of the Completion Date, then J & J will promptly reimburse and repay the Authority the amount by which grants actually received by J & J and monies allocated and expended for offsite improvements as aforesaid exceed the reduced amount of the grant, provided however that J & J's liability for reimbursement and repayment will never exceed the portion of the City's $9,174,611.00 grant (not including GOF funds) actually received by J & J and the portion of that grant allocated to offsite improvements and actually expended by the City for offsite improvements in accordance with this Agreement. By way of example, if such capital expenditures aggregate only $124,500,000.00 as of the fifth (5th) anniversary of the Completion Date and the grant of $9,174,611.00 has been fully funded (not including GOF funds), then J & J will be liable to reimburse and repay to the Authority $36,700.00. By way of further example, ifJ & J makes no capital expenditures and J & J has received none of the City's $9,174,611.00 grant and the City has expended no part of that amount for offsite improvement in accordance with this Agreement, then J & J will not be liable to reimburse and repay any amount to the Authority. As an additional example, if J & J makes capital expenditures of only $10,000,000.00 by the fifth (5th) anniversary of the Completion Date and the grant of $9,174,611.00 has been fully funded (not including GOF funds) then J & J would be liable to reimburse $8,441,000.00 under this section. Such payback or refund, if any is due, shall be made to the Authority within thirty (30) days after notice from the Authority to J & J that such funds are due. The anticipated grant of GOF funds shall not be diminished or affected by the provisions of this section. 7. J & J commits to provide at least 600 full-time jobs within the City of Roanoke within thirty-six (36) months from the date as of which J & J has both obtained a permanent certificate of occupancy for the Facility and begun shipment of products manufactured in the Facility. The parties understand that this number of jobs will include the jobs J & J now provides in the City. J & J acknowledges that the grant by the Authority of $2,000,000.00 originating with the Governor's Opportunity Fund is based upon the number of jobs by that date. IfJ & J has not provided 600 such jobs by that date, then J & J shall be entitled to keep only the percentage of $2,000,000.00 equal to the percentage of 600 such jobs provided by that date and be obligated to repay the Authority the remaining percentage, if any, of $2,000,000.00. Thus, by way of example, ifJ & J provides only 450 such jobs by that date, then it shall be entitled to retain three-fourths of the $2,000,000.00 and shall be obligated to refund to the Authority one-fourth of $2,000,000.00. Such payback or refund, if any is due, shall be made to the Authority within thirty (30) days after notice from the Authority to J & J that such funds are due. The Authority will return to the City or to the Governor's Opportunity Fund any funds that it receives from J & J under this section, but the Authority has no obligation to pay any entity any funds under this section except those funds that it receives from J & J. 8. Notwithstanding anything in this Agreement to the contrary, the Authority's obligations hereunder to pay or provide funds are not general obligations of the Authority, but are special obligations of the Authority limited to those funds which are provided hereunder by the City. 9. Representatives of the Virginia Economic Development Parmership have informed J & J that certain incentives from state government will be available to J & J, subject to J & J's qualification therefor, and those incentives are as follows: 1. Enterprise Zone Investment Tax Credit $5,500,000.00' 2. Major Business Facilities Job Tax Credit $ 800,000.00 3. CIT Research Funds $ 300,000.00 4. Recruiting and Training Grant and Reimbursement Minimum Total Tax Credits And Grants $1,280,000.00 $7,880,000.00 10. Each party agrees to cooperate with the other in executing additional documents necessary to carry out the intent and purpose of this Agreement. 11. If any term of this Agreement is found to be void or invalid, such invalidity shall not affect the remaining terms of this Agreement, which shall continue in full force and effect. The parties intend that the provisions of this Agreement be enforced to the fullest extent permitted by applicable law. Accordingly, the parties agree that if any provisions are deemed not enforceable by a court or agency of competent jurisdiction, they shall be deemed modified to the extent necessary to make them enforceable. 12. The persons who have executed this Agreement represent that they are duly authorized to execute this Agreement in their representative capacities as indicated. 13. This Agreement may be executed in any number of counterpart copies, each of which shall be deemed an original, but all of which together shall constitute a single instrument. 14. J & J will have the right to assign this Agreement to an Affiliate or to Johnson and Johnson or one of its subsidiaries upon written notice to the City and Authority. However, J & J shall not assign this Agreement to any person or entity other than an Affiliate or Johnson and Johnson or its subsidiary without the prior written consent of the City Manager and the Chairman or Vice-Chairman for the Authority, which consent shall not be unreasonably withheld or delayed. The term "Affiliate" means any entity owned or controlled by or under common ownership or control of either J & J or Johnson and Johnson. Any such assignment will not release or affect the obligations of J & J hereunder. 15. The terms, conditions, provisions and undertakings of this Agreement shall be binding upon and inure to the benefit of each of the parties hereto and their respective successors and assigns. 16. Each party agrees that any party's waiver or failure to enforce or require performance of any term or condition of this Agreement or any party's waiver of any particular breach of this Agreement by any other party extends to that instance only. Such waiver or failure is not and shall not be a waiver of any of the terms or conditions of this Agreement or a waiver of any other breaches of the Agreement by any party and does not bar the nondefaulting party from requiring the defaulting party to comply with all the terms and conditions of the Agreement and does not bar the nondefaulting party from asserting any and all rights and/or remedies the nondefaulting party has or might have against the defaulting party under this Agreement or by law. 17. J & J shall not discriminate on the basis of race, religion, color, sex or national origin in its employment practices, contracting or provision of services in violation of any applicable laws. 18. By virtue of entering into this Agreement, J & J agrees and submits itself to a court of competent jurisdiction in the City of Roanoke, Virginia and further agrees that this Agreement is controlled by the laws of the Commonwealth of Virginia and that all claims, disputes, and other matters shall be decided only by such court according to the laws of the Commonwealth of Virginia. 19. (a) Notwithstanding the foregoing, if, by reason of Force Majeure, any party is unable to perform or observe any agreement, term or condition of this Agreement which would give rise to a default by that party of any obligation under this Agreement, that party shall not be deemed in default during the continuance of such inability or due to such inability. However, as such force majeure may apply to J & J's obligations to establish the 600 full-time jobs and to make the investment referred to in this Agreement and the payback provisions called for in this Agreement, only a reasonable length of time will apply to any such force majeure claimed by J & J. (b) The term "Force Majeure" shall mean acts of God; strikes; lockouts or other industrial disturbances; acts of public enemies; orders or restraints of any kind of the government of the United States of America or the Commonwealth or any of their departments, agencies, political subdivisions or officials, or any civil or military authority; insurrections; civil disturbances; riots; epidemics; landslides; lightning; earthquakes; fires; hurricanes; tornados; storms; droughts; floods; arrests; restraint of government and people; explosions; breakage, malfunction or accident to facilities, machinery, transmission pipes or canals; shortages of labor, materials, supplies or transportation; any property on which work is to be done being too wet to allow work to be done on it; or any cause or event not reasonably within the control of that party. 20. If J & J becomes obligated to pay back any of the funds to the Authority for failure to comply with the requirements of this Agreement, the Authority agrees to return such funds to the City. IfJ & J does not require the entire amount of the grant referred to in this Agreement, J & J will not request the balance of such funds not used or expended by J & J from the Authority and the Authority will not request such funds from the City. 21. J & J promises and agrees to grant and dedicate to the City necessary easements on the Land for the construction of infrastructure improvements benefitting the Land or surrounding areas including, but not limited to, storm drainage, sanitary sewers, and/or water, and the grant and dedication of the easements will be at no cost to the City. 22. (a) J & J shall have no liability to the City or to the Authority for any breach of this Agreement with respect to acquiring the Land, constructing the Facility, installing and using equipment in the City of Roanoke and providing jobs in the City of Roanoke, or any one or combination of those obligations, other than as set forth in Sections 6 and 7 of this Agreement. J & J shall never be liable to the City or to the Authority for money damages for any other breach of this Agreement. (b) The Authority shall never be liable to J & J for money damages for any breach of this Agreement, except to make a grant of funds it receives from the City in accordance with the terms of this Agreement. ~ . 23. For the term of this Agreement, no party shall originate any publicity, news release, or other public announcement, written or oral (a "Release"), concerning future discussions or negotiations relating to the amendment, modification, or expansion of this Agreement or to performance hereunder between the parties hereto without the prior written approval of each other party hereto, which approval will not be unreasonably withheld or delayed; provided, however, appropriate officials of the City and the Authority shall be permitted to make public reports about this Agreement to their respective governing bodies, and the governing bodies shall be permitted to adopt appropriate ordinances or resolutions authorizing the execution of this Agreement or other action regarding this Agreement. This provision shall not be construed as prohibiting any party to make any disclosure required by law. However, prior to a written disclosure the disclosing party will make reasonable efforts to provide the other parties hereto a copy of such written disclosure. Furthermore, this provision does not prohibit the parties from discussing with other entities the offsite improvements mentioned in this Agreement. 24. This Agreement constitutes the entire agreement of the parties and supersedes all prior agreements between the parties. No amendment to this Agreement will be valid unless made in writing and signed by the appropriate parties. 10 IN WITNESS WHEREOF, authorized representatives. ATTEST: Mary F. Parker, City Clerk WITNESS: the parties have executed this Agreement by their CITY OF ROANOKE By. City Manager/Assistant City Manager INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF ROANOKE By ATTEST: SEAL Approved as to Form: City Attorney Appropriation and Funds Required for this Contract Certified Director of Finance Date Acct. # Johnson & Johnson Vision Products, Inc. By Ben Deibler, President of Innotech Division Approved as to Execution: City Attorney 11 I I Exhibit A To Performance Agreement Among City, Authority and J & J HERSHBERGER ROAD SITE OF NEW HOME DEPOT FERNDALE DRIVE -- DEPT STORE f._~ 1,10RDWAY DRIVE NEW WDBJ EXTENSION OF HEADQUARTERS ORDWAY DRIVE 581/HERSHBERGER ROAD INTERCHANGE NEW CUl-DE-SAC EXTEN.DED STAY MOTEL J&J SITE CLARION HOTEL SOUTHERN LIMIT OF IMPROVEMENTS ORDWAY DRIVE NORTHERN LIMIT OF IMPROVEMENTS AND EXTENSION ORDWAY DRIVE NEW NORTH TERMINUS FERNDALE DRIVE (ORDWAY EXTENSION) INTERSTATE 581 ROAD HIGHLAND FARM ROAD APARTMENTS NEW CUL-DE-SAC AND TERMINATION OF FERNDALE DI~IV~ SOUTH SOUTHERN TERMINUS OF FRONTAGE ROAD EXTENSION NORTHERN TERMINUS OF FRONTAGE ROAD EXTENSION [--VIC!NITY, CONCEPT COUNTRYSIDE GOLF HIGHLAND FARM ROAD WBERN-TRANE EXHIBIT B (Page 1 of 3) J & J-City of Roanoke Standards for Offsite Improvements The following descriptions correspond to three components of offsite improvements described in Section 5 of a Performance Agreement between J & J and the City of Roanoke, Virginia 1. Section 5(a), Extension of Ordway. o Ordway Drive Extension shall be constructed to the VDOT geometric design standards for an urban collector. A 40-mph design speed should be used with curb and gutter, thirty-four feet from face of curb to face of curb. The terrain for the area is rolling. The pavement design for the new segment of roadway shall be based on the projected traffic volumes for the design year of 2010 to include the J & J site and its projected auto and truck volumes. The limits of the project will be from the Hoback Road intersection at Ordway Drive to Ferndale Drive in the vicinity of the southern entrance of the Clarion Hotel. A 50-foot right-of-way shall be provided. Section 5(b), New Cul-De-Sac at Femdale Drive. Ferndale Drive shall be terminated approximately 400 feet from its intersection with FerncliffAvenue with a new cul-de-sac. The existing pavement between the cul-de-sac and new Ordway Drive Extension shall be demolished and obscured. 3. Section 5(c), Extension and Upgrade of Frontage Road. The extension and upgrade of the Frontage Road shall provide 22 feet of pavement with 6-feet shoulders in cut and fill. If guardrail is required, an additional 3-feet of shoulder shall be provided in the fill section. A four-foot ditch (front slope) from the shoulder break to the centerline of the ditch shall be provided in the cut sections. Maximum slopes shall be 2:1. Grades should be kept at a maximum of 4%. The limits of extension will be from the J & J south property line across the frontage ofJ &J, Countryside golf course at the 3rd hole, and Newbern-Trane for a total length of approximately Exhibit B (Page 2 of 3) 2,600 feet with a connection to the existing Frontage Road North of Newbern- Trane in the vicinity of Highland Farm Road. A 50-foot right-of-way shall be provided by J & J for the new construction. The upgrade of the existing Frontage Road will be from the J & J south property line in the vicinity of the Clarion Hotel entrance, for approximately 625 feet back towards Ordway Drive. Upgrade of the existing Frontage Road shall be completed within the existing right of way. An overlay shall be provided for existing pavement, and pavement will be widened to 22 feet where now less than 22 feet, but existing pavement may not be upgraded to meet design year 2010 standards. G:\WP\WETHERIN~ 142225.final-perfmagr\bmh\op Exhibit B (Page 3 of 3) A-lO GEOMETRIC DESIGN STANDARDS FOR URBAN COLLECTOR STREET SYSTEM G EN ERA[: NOTES A minimum ~ speecl of 30 mph or higher ~.~3ul~ be used (1) f~' CC~lector ~ll'ee($, dependir~ ~'1 availalN~ ~g~ Of ~=y, ~n. (~ S~ T~ ~ ~ ~~n ~ ~~ ~ A-2 ~me~. ~,~drnurn 9raaes o4 st,xxl le~g'~ [le~ ~an ~,C0 ~) and one. way down Grade~ may be 2% Stee3er. 01) FOOTNOTES V~ne~re fea..c.t:ge. I~r, es st',ocCd be 12' withe in/ndustr~l eree.~ however, where way imposes severe rrn,~Ik~,~, used in msiaerclai areas Izne ~ to bt. 12' at all in~e~--~nge Ioca~io~. A v~dtt~ of 8' or more m~y be is l~'~na me slclewaUc (or ms~dal or c~er ar-.as wf'~re me slopes will be ~ b'! ~e pm=eny owner. ,~avide ~ wide p~ved ~,oulcer$ ~ exceeds 30'30 VPD w~, ~ ~. more wffi have ~,e .'naJn~me pavemafg s~ucmm p~ I' ravelng a~ me pa~,~nen~ ecge. v.~ere ~.~ apptoac~ n:~ ~ ('a-~vesed way Ver~i¢~ d~a~u~:~ ~ ~ ~'~ler~s k~r new If & I;3~t' ~ is uz4'~ t~tween me back of cu~ and sidewaJk, it should be 3' m~mom. AI;;~fl~x C. Ta.bie FIGURE A-1-7 FOR IMMEDIATE RELEASE, March 19, 1999 INNOTECH, A DIVISION OF JOHNSON & JOHNSON, TO MAKE LARGEST PLANT INVESTMENT IN ROANOKE VALLEY HISTORY Contacts: Beth Doughty, RVEDP, 343-1550 John McKeegan, Johnson & Johnson, 732-524-1130 Phil Sparks, Roanoke City, 853-2715 The City of Roanoke and the Roanoke Valley Economic Development Partnership today announced that Innotech, a division of Johnson & Johnson, plans to develop a $125 million-plus vision products production facility. This will be the largest new plant investment in Roanoke Valley history. Employment is expected to be up to 600 people within three years of opening. The company initially will build approximately 143,000 square feet of facilities on a 31-acre site fronting on Interstate 581 near Hershberger Road. Construction will begin this spring. Added to the company's existing building, the new facility will bring the company's Roanoke City square footage to approximately 200,000. The combined facilities will house administrative, research, manufacturing and distribution facilities. The size, investment and employment levels of the project may grow. "Key factors in our decision to expand here were the pro-business attitude in the Roanoke Valley and the Commonwealth of Virginia, and the excellent quality of life and cultural opportunities for employees and their families," said Ben Deibler, president of Innotech. A developer of eyeglass technology, Innotech was founded by Dr. Ronald D. Blum and incorporated in 1990. The company moved to its Airport Road location in 1993. It was acquired by Johnson & Johnson in 1997. "Roanoke faced competition from a number of larger U.S. cities," said Blum. "With the location of this project, combined with the existing ITT Electro-Optics facility and other local work in the field, Roanoke has the potential of becoming a major center for the optics industry." "Today's announcement is especially gratifying because it reflects a quality company's commitment to the Roanoke Valley," said Roanoke Mayor David Bowers. "Johnson & Johnson MORE >>> 111 FRANKLIN PLAZA, SUITE 333 ROANOKE, VIRGINIA 24011 540-343-1 5 5 0 1 -800- LOCATE 2 FAX:540-344-6096 WWW.ROANOKE,ORG RVEDP@ROANOKE. ORG Innotech Expansion add one is routinely ranked as one of the most admired companies in America, and we are excited about adding it to our list of stars. This project achieves two other highly desired goals: quality jobs with great benefits, and a company whose decision makers will be here in Roanoke." The company will receive more than $19 million in incentive packages from the Commonwealth of Virginia and the City of Roanoke, with the state providing $10 million and the city contributing the balance in local grants -- which will be used for the purchase ofhigh- tech equipment for initial training and continued job training; the construction of public streets, utilities, and other infrastructure improvements, and site acquisition and development. Projected direct tax revenues, alone, are expected to exceed the city's investment within the first decade of operation. The City of Roanoke and Johnson & Johnson have entered into a contract which will ensure the safety of each party's investment. If the company fails to meet anticipated employment and investment levels, Johnson & Johnson Vision Products will pay back the city on a sliding scale. In addition, the city will benefit from having new construction jobs and purchases, and from increased payroll and purchases by the company. "This new money will turn over many times in the Roanoke Valley and will strengthen our local economy," said Bob Herbert, Roanoke City Manager. "Johnson & Johnson has shown its confidence in the Commonwealth of Virginia by deciding to invest $125 million for a new vision products facility in the Roanoke Valley that will result in as many as 600 jobs," said Governor Jim Gilmore. "We are delighted that this comprehensive company has selected Roanoke for this project." "This project is important to the Roanoke Valley, not only because of the international reputation of Johnson & Johnson," said Beth Doughty, executive director of the Roanoke Valley Economic Development Partnership. "It will have a significant impact on the region's economy fbr decades. The decision today is something we should all appreciate and be grateful for." The City of Roanoke, Roanoke Valley Economic Development Partnership, Virginia MORE>>> Innotech Expansion add two Economic Development Partnership, and Virginia Department of Business Assistance have been working with Innotech for more than a year on this project. The Roanoke Valley Economic Development Partnership markets Botetourt, Craig, Franklin, and Roanoke Counties, Roanoke, Salem, and Vinton to new and expanding industry. Innotech Fact Sheet Innotech, a division of Johnson & Johnson, has chosen Roanoke City for a new production facility. Combined with existing facilities, the project will include administrative, research, manufacturing and distribution functions. The initial investment in the project is approximately $125 million, and includes 143,000 square feet of new facilities, plus approximately 60,000 square feet of existing facilities. Initial employment in the project is expected to be up to 600 within three years of opening. This project will be the largest industrial investment ever in the Roanoke Valley, surpassing R.R. Donnelley's $102 million investment in 1996. The facility will be built near Hershberger Road and 1-581 adjacent to the Clarion Hotel. The property is in a Commonwealth of Virginia Enterprise Zone and has been zoned for light manufacturing. The company will receive a more than $19 million incentive package from the Commonwealth of Virginia and the City of Roanoke. Funding from the city will go toward training and site and infrastructure improvements. The city is expected to receive a return on its investment from taxes at the facility within the first decade. A contract between Roanoke City and Johnson & Johnson Vision Products guarantees the level of capital expenditure and job creation. If it does not occur, the company will pay back the incentives on a sliding scale. Enterprise Zone Investment Tax Credit Infrastructure improvement to the site Equipment for job training & production Governor's Opportunity Fund Off-site improvements, such as road construction Recruiting & Training cost avoidance Major Business Facilities Job Tax Credit CIT Research Funds $5,500,000 $4,600,000 $2,574,611 $2,000,000 $2,000,000 $1,842,000 $800,000 $300,000 $19,617,015 Innotech was founded in 1990 by Dr. Ronald D. Blum. The company was purchased by Johnson & Johnson in March 1997. Discussions between the company and Roanoke Valley officials began in March of 1997. The Roanoke Valley faced competition from eight larger communities from throughout the United States. Mary F. Parker, CMC/AAE City Clerk CITY OF ROANOKE Office of the City Clerk March 22, 1999 Sandra H. Eakin Deputy City Clerk File # 60-450 James D. Grisso Director of Finance Roanoke, Virginia Dear Mr. Grisso: I am attaching copy of Ordinance No. 34214-031999 amending and reordaining certain sections of the 1998-99 Capital Projects Fund Appropriations, in connection with a Performance Agreement with Johnson & Johnson Vision Products, Inc., to provide jobs, equipment, and make an investment for acquisition, development, and construction of a new facility in the City of Roanoke. The abovereferenced measure was adopted by the Council of the City of Roanoke at a special meeting which was held on Friday, March 19, 1999. Sincerely, Mary F. Parker, CMC/AAE City Clerk MFP:Io Attachment pc: W. Robert Herbert, City Manager Kit B. Kiser, Director, Utilities and Operations William F. Clark, Director, Public Works Glenn D. Radcliffe, Director, Human Development George C. Snead, Jr., Director, Public Safety Willard N. Claytor, Director, Real Estate Evaluation Robert H. Bird, Municipal Auditor Phillip F. Sparks, Chief, Economic Development Charles M. Huffine, City Engineer H:X, AGENDA99~MAR 15 .WPD IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA The 19th day of March, 1999. No. 34214-031999. AN ORDINANCE to amend and reordain certain sections of the 1998-99 Capital Projects Fund Appropriations, and providing for an emergency. WHEREAS, for the usual daily operation of the Municipal Government of the City of Roanoke, an emergency is declared to exist. THEREFORE, BE IT ORDAINED by the Council of the City of Roanoke that certain sections of the 1998-99 Capital Projects Fund Appropriations, be, and the same are hereby, amended and reordained to read as follows, in part: ADDropriationm General Government Johnson & Johnson Off-Site Improvements (1-2) ................. Johnson & Johnson Development (3) .......................... Revenues Due from State (4). Due from State (5). ' ....................................... $ Fund Balance Unappropriated - Fund Balance (6) ........................... $ 1) Appropriated from General Revenue 2) Appropriated from State Grant Funds 3) Appropriated from State Grant Funds 4) Governor's Opportunity Funds (008-002-9700-9003) (008-002-9700-9007) (008-002-9701-9007) (008-1250) 1,124,611 450,000 2,000,000 2,000,000 $ 21,206,641 1,626,611 2,000,000 2,000,000 450,000 1,773,265 5) State Industrial Access Grant (008-1251) $ 450,000 6) Unappropriated Fund Balance (008-3325) (1,124,611 ) BE IT FURTHER ORDAINED that, an emergency existing, this Ordinance shall be in effect from its passage. ATTEST: City Clerk. Mary F. Parker, CMC/AAE City Clerk CITY OF ROANOKE Office of the City Clerk March 22, 1999 File #60-450 Sandra H. Eakin Deputy City Clerk W. Robert Herbert City Manager Roanoke, Virginia Dear Mr. Herbert: I am attaching copy of Ordinance No. 34215-031999 authorizing the proper City officials to execute a Performance Agreement among the City of Roanoke, the Industrial Development Authority of the City of Roanoke, Virginia, and Johnson & Johnson Vision Products, Inc., (J&J) that provides for J&J to provide jobs, equipment, and make an investment for the acquisition, development, and construction of a new facility in the City of Roanoke; that the City will undertake to provide certain public improvements in the vicinity of such new facility; that the City will make an appropriation of up to $9,174,611.00 to the Industrial Development Authority, all for the purpose of promoting economic development; authorizing the proper City officials to apply for and accept a grant or donation from the Governor's Opportunity Fund of an amount up to $2,000,000.00 to be added to the above appropriation and made available to the Industrial Development Authority; and authorizing the City Clerk to advertise for a public hearing on April 19, 1999. The abovereferenced measure was adopted by the Council of the City of Roanoke at a special meeting which was held on Friday, March 19, 1999. Sincerely, Mary F. Parker, CMC/AAE City Clerk MFP:Io Attachment H:XAGENDA99XMAR. I 5.W'PD W. Robert Herbert March 22, 1999 Page 2 pc~ John McKeegan, Manager, Corporate Communications, Johnson & Johnson, One Johnson & Johnson Plaza, New Brunswick, New Jersey, 08933 Dr. Ronald D. Blum, Innotech, 6701 Peters Creek Road, N. W., Roanoke, Virginia 24019 Elizabeth S. Doughty, Executive Director, Roanoke Valley of Virginia Economic Development Partnership, 111 Franklin Plaza, Suite 333, Roanoke, Virginia 24011 John P. Baker, Executive Director, City of Roanoke Redevelopment and Housing Authority, 2624 Salem Turnpike, N. W., Roanoke, Virginia 24017 James D. Grisso, Director of Finance Kit B. Kiser, Director, Utilities and Operations William F. Clark, Director, Public Works Glenn D. Radcliffe, Director, Human Development George C. Snead, Jr., Director, Public Safety Willard N. Claytor, Director, Real Estate Evaluation Robert H. Bird, Municipal Auditor Phillip F. Sparks, Chief, Economic Development H :~,AGENDA99~vlAR 15 WPD IN THECOUNC~ OF THE CITY OF ROANOKE, VIRGINIA The 19th day of March, 1999. No. 34215-031999. AN ORDINANCE, authorizing the proper City officials to execute a Performance Agreement among the City of Roanoke (City), the Industrial Development Authority of the City of Roanoke, Virginia (Authority), and Johnson & Johnson Vision Products, Inc. (J&J) that provides for J&J to provide jobs, equipment, and make an investment for the acquisition, development, and construction of a new facility in the City of Roanoke; that the City will undertake to provide certain public improvements in the vicinity of such new facility; that the City will make an appropriation of up to $9,174,611 to the Authority, all for the purposes of promoting economic development; authorizing the proper City officials to apply for and accept a grant or donation from the Governor's Opportunity Fund of an amount up to $2,000,000 to be added to the above appropriation and made available to the Authority; authorizing the City Clerk to advertise for a public hearing; and providing for an emergency. BE IT ORDAINED by the Council of the City of Roanoke as follows: 1. The City Manager or the Assistant City Manager and the City Clerk are hereby authorized on behalf of the City to execute and attest, respectively, a Performance Agreement among the City, the Authority, and J&J, upon certain terms and conditions as set forth in the report to this Council dated March 19, 1999. The Performance Agreement is to be in a form approved by the City Attorney, and will provide for J&J to provide jobs, equipment, and make an investment for the acquisition, development and construction of a new facility on private property in the City of Roanoke that has been acquired by J&J and for the provision by the City of certain public improvements in the vicinity of such new facility, such improvements being more particularly described in the ~tbove mentioned report to this Council. 2. The City shall appropriate an amount up to $9,174,611.00 (which will be in addition to any funds the City will accept from the Governor's Opportunity Fund) to the Authority for the purposes of promoting economic development in the City and the Roanoke Valley in order to fund the grant that the Authority intends to make to J&J upon certain terms and conditions and which amount includes an appropriation for the cost of the public improvements that the City intends to make in the vicinity of the new facility to be constructed by J&J, all as more fully set forth in the aforementioned report to this Council. 3. The City Manager or the Assistant City Manager is hereby authorized to execute and provide on behalf of the City any documentation necessary for the application and acceptance of a grant or donation from the Governor's Opportunity Fund of an amount up to $2,000,000 for the purposes of providing that amount to the Authority for economic development in the City and the Roanoke Valley in order to partially fund the grant that the Authority intends to make to J&J, upon certain terms and conditions, all as more particularly set forth in the aforementioned report to this Council. 4. By adoption of this Ordinance, City Council hereby exPresses its intent to fund $7,600,000 of the amount required to be appropriated to the Authority by the City under the Performance Agreement through the issuance of general obligation bonds of the City under the Public Finance Act, without referendum, subject to final authorization of the issuance of bonds after the holding of a public hearing on April 19, 1999, and the adoption of an appropriate resolution or resolutions. 5. The City Clerk is hereby authorized to advertise for a public hearing to be held on April 19, 1999, before City Council for the purpose of receiving citizen input on the issuing of $7,600,000 in bonds under the Public Finance Act, Section 15.2-2600 et. seq., Code of Virginia (1950), as amended. 6. In order to provide for the usual daily operation of the municipal government, an emergency is deemed to exist, and this ordinance shall be in full force and effect upon its passage. ATTEST: City Clerk. Mary F. Parker, CMC/AAE City Clerk CITY OF ROANOKE Office of the City Clerk March 22, 1999 File #60-450 Sandra H. Eakin Deputy City Clerk W. Robert Herbert City Manager Roanoke, Virginia Dear Mr. Herbert: I am attaching copy of Resolution No. 34216-031999 authorizing the City Manager to make application to the Commonwealth of Virginia Department of Transportation for Industrial Access Road Funds, in an amount up to $450,000.00, for roadway construction to provide adequate industrial access to the former Maury L. and Shelia S. Strauss property, identified as Official Tax Nos. 6460101 and 6460106, for a new corporate prospect and authorizing execution of any required documentation on behalf of the City for acceptance of any such funds which may be awarded. The abovereferenced measure was adopted by the Council of the City of Roanoke at a special meeting which was held on Friday, March 19, 1999. Sincerely, Mary F. Parker, CMC/AAE City Clerk MFP:Io Attachment H:L~.GENDA99~vlAR 15 .WPD W. Robert Herbert March 22, 1999 Page 2 pc: John McKeegan, Manager, Corporate Communications, Johnson & Johnson, One Johnson & Johnson Plaza, New Brunswick, New Jersey, 08933 Dr. Ronald D. Blum, Innotech, 6701 Peters Creek Road, N. W., Roanoke, Virginia 24019 Elizabeth S. Doughty, Executive Director, Roanoke Valley of Virginia Economic Development Partnership, 111 Franklin Plaza, Suite 333, Roanoke, Virginia 24011 John P. Baker, Executive Director, City of Roanoke Redevelopment and Housing Authority, 2624 Salem Turnpike, N. W., Roanoke, Virginia 24017 James D. Grisso, Director of Finance Kit B. Kiser, Director, Utilities and Operations William F. Clark, Director, Public Works Glenn D. Radcliffe, Director, Human Development George C. Snead, Jr., Director, Public Safety Willard N. Claytor, Director, Real Estate Evaluation Robert H. Bird, Municipal Auditor Phillip F. Sparks, Chief, Economic Development H:~AGENDA99WIAR 15 WPD IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA, The 19th day of March, 1999. No. 34216-031999. A RESOLUTION authorizing the City Manager to make application to the Commonwealth of Virginia Department of Transportation for Industrial Access Road Funds in an amount up to $450,000.00 for roadway construction to provide adequate industrial access to the former Maury L. and Shelia S. Strauss property, tax map numbers 6460101 and 6460106, in the City of Roanoke for a new corporate prospect and authorizing the execution of any required documentation on behalf of the City for acceptance of any such funds which may be awarded. BE IT RESOLVED by the Council of the City of Roanoke as follows: 1. The City Manager or the Assistant City Manager is hereby authorized to execute and file on behalf of the City of Roanoke any and all appropriate documents required in connection with the application to the Commonwealth of Virginia Department of Transportation for Industrial Access Road Funds in an amount up to $450,000.00 for roadway construction to provide adequate industrial access to the former Maury L. and Shelia S. Strauss property, tax map numbers 6460101 and 6460106, in the City of Roanoke for a new corporate prospect and to execute on behalf of the City any documentation necessary for the acceptance of such Industrial Access Road Funds, and to furnish such additional information as may be required by the Commonwealth, all as more particularly set out in the City Manager's report to this Council dated March 19, 1999. 2. The form of any agreements for the acceptance of such Industrial Access Road Funds shall be approved by the City Attorney. 3. Any local matching funds up to $150,000.00 that may be necessary or are required by the acceptance of such Industrial Access Road Funds will be made available by subsequent appropriation of this Council. 4. The City will, if such project is approved, provide adequate right-of-way, provide for necessary adjustment of any utilities affected by construction, and provide for future necessary. maintenance of the roadway through other funding sources. ATTEST: City Clerk.