09-02-2008-RIFA Resolution,,__. __ .
PRESENTED: September 2, 2008
September 2, 2008
ADOPTED:
RE50LUTION NO. 2008- ~~ ~5
A RESOLUTION APPROVTNG AND AUTH~RIZING AN AMENDMENT
TO THE REVENUE SHARING AGREEMENT BETWEEN THE CZTY OF DANVILLE,
VIRGINIA AND THE COUNTY OF PITTSYLVANIA, VIRGINIA ftEI,ATING TO
iHE ADDITION OF TWO REGIONAL INDUSTRIAL PARKS, TO THE TWO
ALREADY APPROVED.
wHEREAS, the City of Danvilie and Pittsyivania
County have formed a Regional Industrial Facility Authority;
and
WH~REAS, one of the main focuses of tne Regional
Industrial Facility Authority is to develop and manage ~
regional industrial parks; and
WHEREAS, it is anticipated that the revenues
ge:~erated from t~ese regiona2 industria3 parics wiZ3. be shared
equally betwec~n the two localities; and
YJHEREAS, the Council has determined that economic
cooperation with Pittsylvania County and the sharing of
revenues from the industrial parks enhances and promotes
economic dev~lo~ment in the reqion and benefits the health,
safety, welfare, conveni~nce, and prosperity of the citizens
of the City of banville; and
WHEFtEAS, the City anci County wish to amend the
Revenue Shar~ng Agreement~ by adding two new industrial park
locations to be covered by ~he Revenue Sharing Agre~ment.
OFFICE OF THE
CITV ATTORNCY
CITY OF
OANVILlE,V1RQIN1~
NOW THEREF~RE, BE IT RESOLVE~ by the Council o~ the
City of Danville, Virginia, that the Revenue Sharing Agreement
by and between tne City of Danville and the County of
Pittsylvania, substantially in the form attached hereto and
incorpo~ated herein by reference, be, and the same is hereby
amended to include two new industrial park loc~tions to ~e
added to the existing two regional industrial parks; and
BE IT FURTHER RESOLVED that M. Lyle Lacy, III,
Interim City Manager, be, and he is hereby authorized to
execute said Revenue Sharing Agree~ent on behaZf of the City.
APP,~tO ED: ~
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~~MAYOR
ATTEST:
CLE K
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nd ~g 1 Su fi~iency:
. ~
ity Attorney
OFFICE OR TN! ~
CITY ATTORNEY 2
CITY OF I
pANVIILE, VIRGINIA I
I2EGIONAL INllUSTRIAL FACILiTY AUTHORITY
AGREEiViEIVT F'OR COST SLiARING ANU IZEVENUE SHARING BETWEEN THE
CITY OF I:)ANVILLE, VIRGINIA
ANp
PITTSYLVANIA COUNTY, VIRGINIA
This Agreement originally made and entered into the 2nd day of October, 2001, by and
between lhe City of Danville {hereafter "Danville") and the Pittsylvania County (hereafter
"Pittsylvania"), and further a~nended on the _ day of' , by the same parties.
1. I2ECI'I'A'1'lONS:
WHEREAS, Danville and Pittsylvania have heretofore adopled a Memorandum of
Understanding, dated April, 2001, in which Danville and Pittsylvania have agreed to work
cooperatively to develop a regional cyber park located in i~anville, Virginia, and a regional
industrial park located in Pittsylvania County, Virginia; and
WHEREAS, the parties hereto wish to more thoroughly memorialize and confirm this
Agreement by entering into this Revenue Sharing Agreement pursuant to the Virginia Regional
Industrial Facilitics Act,1'iNe 15.2, Chapter 64, Code of' Virginia, 1950, as amended; and
WHERLAS, the parties recognize that prior inveshnents have been made by Danville on
the initial 219 acres, more or less, previously acquirec~by the Uanvilk IDA, including the
purchase of the tand and its associnted development in thc amount of $4,93~,UOU; and
WHEREAS, the parties recognize that prior investntents havc been made by Yittsylvania
County for the MSAP program in the amount of $2,000,000; and
WIiEREAS, the Dam~ille IDA~xerciscd an option to purchase the 88.5 acre property
owned by the option "Sellers" and purchased such property fur a lotal sum of $?,584,61 R.25,
which was previously,tiUed in the name of the Industrial Developi~~ent Authority of Danville,
Virginia; and
WHEREAS, the parties,in eon,junetion with Virginia Polytechnic Institute and State
University, Averett University, and Danville Communiry College, develope~and constructed„on
approximately eleven (11) acres of the Additional Cicy Property, an institute for udvanced
learning and reseai•ch (the "lnstilule"), which is designrd to provide advanced tecltnology-
integrated education and research in Southside Virginia and serve as a focal point for economic
development in the region; and
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' Deleted: now owneJ
WHEREAS, the parlies further agree to develop a joint industrial park located in the
County hereafter known as the Pittsylvania-Danville Regional Industrial Park, (Cane Creek
Centre), as generally outlined and described in this Agr~ement. To that end, the parties have
rcceived from the Commonwealth of Virginia funds to assist in providing initial engineenng,
feasihility, and related studies (°initial Studies Report") for a joint industrial park located in
Pittsylvania County, Virginia, as hereafter described ("5tudy Grant"}; and
WHEREAS, the parties agree to proceed with the acquisition of options and contracts for
the purchase of the real property for the Pittsylvania-Danville Regional Industrial Park to be
located in Pittsylvania County, Virginia; and
WHEREAS, the parties agree to add additional properties to be used for economic
development projects, more specifically a 3,000 to 4,000+/- acre mega parlc in southwestem
Pittsylvania County and a]00-i- acre Southside Virginia Energy Park located in the vicinity of
the Brosville Industrial Park.
W ITNESSETH:
That forand in considerarion of the mutual benefits inunng to each of the localities
hereto, and in further consideration of the duties and responsibility hereby imposed upon the
parties hereto, the paities do hereby covenant and agree as follows:
2. AEFINI'1'IONS:
A. Act: "Act" shall be defined as the Virginia Regional Industrial Facilities
Act, Chapter 64, Tide 15.2 of the Cndc of Virginia, 1950, as amended.
B. Additional City Propertv: "Additional City Property" shall be defined as
88.5 acres, more or less, located in the City of Danville. Virginia, and as shown
on a certain plat of survey entitled "A Plat of Survey from the Industrial
Devetop~i~enc Aut4zotiity of Danvifle, Virginia" dated Februa~y 28, 2001, a copy of
which is attached to this Agreement as Exhibit "A".
C. Agreement: "Agreement" shall be defincd as this Revenue Sharin~
Agreement, when entered into by all partics, made pursuant to the Virginia
Re~ional Industnal racilities Act, Chapter 64, Title 15.2 of the Code of Virginia,
1950, as amended.
D. Cvber Park: "Cyber Park" shall be defined as the additional City property
and the existing City property containing 308 ecre~, more or less.
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E. Dissolution of AuthotitY: "Dissolution of Authority" shall be defined as
set forth in Virginia Code Section 15.2-6415, as amcnded, regarding the
procedures and division of assets upon dissolution of a rcgional industrial facility
authority.
F. Existing Cit~Property: "Existing City Property" shall be defined as 219.5
acres, more or less, locatcd and lying in the City vf Danville, Virginia, and as
shown on a certain plat of survey cntitlcd "Plat of Survcy for River View
industrial Park" duted February 29, 2~00, including lots 1, 2, 3, 4, S, and 7 on said
plat and exeluding fou 5, 8, 9 and thc roadways, a copy oS wf~ich ptat is attached
hereto and made a part hereof as Exhibit "B".
G. 1lost Localitv: "Host Locality" shall be defined as the locality wherc the
Regional Industrial Facility is physically located.
H. Income and revenues generated bv anv facility owned bv the Auth4-itv:
"Income and revenues generated by any faci4'sty ownrd by the Autharity" shall be
defined as any end aU identifiable tax rcvenues gcnerated from property owned
currently ar at some time by the Auth~rity, which may have been yold, leased,
conveyed or transferred to any third party.
I. Member Localitirs: "Member Lacalities" shal] be defined as the City ot
Danv'sl4e and Pittsylvaiiia Cvunty, Vis~inia.
1. Non-host I,ocality: "Non-host Locality" shall be defined as the partner
locality that is not the host localiry.
K. Ordinance: "Ordinance" shall mean an OiYiinance adopted by both
Member Localities which creates the Danvilfe-Pittsyivania Regionat IndustnaV
Pacility Authority pursuant to the Virginiu Regional Indu.etnal F~ciGty's Act,
Chapter 6a, Tide 15.2 of the Code of Virginia, 1950, a~ amended.
L. Piltsvlvania-Danville Rc~onal Industrial Park: "Pittsylvania-Danville Regional
Indusuial Park" (Cane Creek Centre) shall br defined as a joint industnal park to
be located in Pittsylvania County near tfie City of Danville.
M. Me ag Park: The "Mega Park" shall bc defined as ajoint industrial park consisting
of 3,000 to 4,000 +/- acres in the southwestern Portion of Pittsylvania County.
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N. Southside Virginia Energv Park; The "Southside Virginia Energy Park" shall be
defined as a joint industrial park consisting of 100 +/- acre, located in the vicinity
of the Brosville Industrial Park.
~FO. Regional Industrial Facilitv: "Regional Industnal Facility" shall be
detined as any joint industrial project contcmplated and agreed to by the partner
localities.
3. CREATION OF REGIONAL INDUSTRIAL FACILITY AUTHORITY.
Danville and Pittsylvania County have established a regional industrial facility authority
through adoption of respective ordinances, as allowed by and in compliance with the Act. The
terms and duties of the members of the Board of Directors are specified in said ordinance and in
the Act. The regional industrial faci{ity authority shall be named the "Danville-Pittsylvania
Countv Regional Industrial Facilitv Authority," hereinaftcr rcferrcd to as the "Regional
Authority."
4. PURCIIASE OF PROPERTY.
A. Danville and Pittsylvania have each contributed the sum of $1,000,000 for the
purchase of the 88.5 acres. An additional $1,000,000 has been committed by the Future of the
Piedmon[ Foundation for the purchase and development of the Institute. The Danville lndustrial
Devclopment Authority has dosed on the purchase of the 88.5 acres, more or less, for a total cost
of $2,584,618.25.
B. Danville and Pittsylvania agrec to jointly purchase and development property to
bc located in Pittsylvania Counry near the City of Danville municipal boundary for a loint
Industrial Park.
C. Danville and Pittsylvania County agree tu joindy purchase and develop a 3,000 to
4,000 +/_ acre mega park in thc southwestern portion of Pittsylvania C'ounty and a 100 +/- acre
Southside Virginia Energy Park located in the vicinity of the Brosville Tndustrial Park.
'fRANS1~LR OI~ TITL~ TO PROPERTY.
Danville and Pittsylvania agree that the acreage in the Cyber Park, et~ the Pittsylvania-
Danville Regional Industnal Park, the Mega Park, and the Southside Virginia Energy Park shall
be conveyed to and titled in the name of the Regional Authority.
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PROJECT COSTS. oe~etea_ 9
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In order to and a~ a condition of sharing the revenues from any propecty owned by the
Rcgiona) Authority, each of the Member Localities must contnbute equally in the cost of
deve{opment And marketing of the Regional Industriai Facilities described in this Agreement, as
well as one-half (1/2) of the cost of the recniitment and incentive packages offered to any
industry to locate within any of the joint Regional Industnal Facilities descnbed herein.
A. Const-uetion and Develoament Costs. Mernber Localities hereby agree to each
pay one-half (1/2) of the cost to the Membcr Localities for development construction of thc Joint
lndustrial Facilities described hcrein as well as the Institute.
B. Marketin~ and Promotional Costs. Member Localities hereby agree to each pay
one-half ( l!2) of the cost for all marketing and promotion of the Joint Regional Industrial
Facilities described in this Agreement.
C. Recruitment Incentives. Member Localities hereby agree to each pay one-half
(1/2) of the cost of any grants or incentives of any type offered to an industry client in order to
entice such industry or business to locate within any of the Joint Regional Facilities described in
this Agreement.
D. LJtilitv Extensions. Each locality will be responsible for the cost of utility
installation, separate from this Agreement, for industrial facilities within its service jurisdiction
in accordance with its established policies and procedures and the cost for such utility extensions
will not be used to compute any dissolution, described herein.
7. PROJECT FUNDING.
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. E- _ . , . _ „ ~ , ~ lhe panies have recmved an Imbal
~~udies Gram from the Coimnonwealth of
~.. , , , ,, ~ ~ V irginia in thc amount of 540,000 ~o
. complete initial studies of a Regionel
Industr~al Park in Pittsylvania Counry.
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'I hese funds were malched by the
hlember L~::dilics at SS,fHH] wch.~
~ E3. . Futurc o(thc Picdincrn~. The
~. Future of d~e Yiedmom Founda~ion (d~c
• • "F'aundation"~ is an organitation
A., lncome ~enerated bv Authonty. Danville anJ Pittsylvania agree that any and all organized under Intemal Revenue Code
Sec~inn S01(c)(3).whichhashcrn
~ xtivcly imulvcd in c(Tur1e to proimrte
ineome generated as a result of sales, leases, conveyances, a~ld/01 inlC1'CSt On ~U11dS I]CId b}~ flle the economic Ewwth and de~elopment of
~
~ Ihe C[ty and the County. The Poumfation
Regional Authonty sliall constitute income generated by thc ltegional Authority_ Such income ~~~sCUMMI'1"ftUUneMdhon Uollars
(SI.WO,OW) from a Unire~i ~tate+
gcnerated hy the Reginnal Authonty will be held by the Reginnal Auth~nty and utili2ed by the gorixnmcn~ ~mnt for thc acquoilion,
devclopmrn~andcunswctiunof~hc
Regional Authonty to fwther promote economic development within the two localities as the Instiwk ~
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' Deleted: BC.
Regional Authonty deems appropriate
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Bt Any additional funding agreed to bv both partners/loc:alities iointly The Member ',oe~ecea: Eo.
Localities understand and agree that additional funding may be ncccssary for the acquisition and
development of the four (4) joint industrial parks outlincd in this AgrccmenG Member Localilies
agree that in the event that they both joinNy dctcrminc that additional funds need to be allocated
towards the Regional Authority that such funds will be tendered to thc Authority for the uses
permitted by this Agreement and the Act.
8. ADMINISTRATION OF PROJECT FUNDING.
Member Localities do hereby agree that the administration and support given to each
project described in this Agreement as well as such suppoit given to the Regional Authoriry shall
bc allocated and determined by the Regional Authonty. As of the date of this Agreement the
Ciry of Danville has acted as "Development Suppnrt AgenP' for the projcct funding in thc Cyber
Park and for the initial filing process for an Initial Study Grant for the Danville-Pittsylvania
Regiona) lndustrial Park. The parties agree that the allocation of such administrative support
duties is best allocated by and through the Re~ional Authority.
4. PURSUIT OF OTHER FUNDING.
Nothing in this Agrccment shall preclude either locality, either joimly or separately, from
pursuing, and successfully receiving, other funding sources to pay for sile developrnent of any
regional project. It is understood and agrccd that one Mcmber Localiry cannot bind another
Member Localiry to any Grants without the approti~al of all Membcr I.ocalities.
10. PRIOR EXPENDITURES BY PARTNER LOCALIT'IES.
lt is unde~stood and agrerd that in consideration of Pittsylvania support of the location oF
the "High Tcch lnstih~te" within the City of llanville tha~ Uanville will not seek a contribution
for the cxisting 219 acres and its improvements. The parties acknowleJge that the City's initial
contribution for Existing City Property is four million nine hundred thiity tllousand dollars
($4,930,OD0). The parties further acknowledge that the MSAP program is a vital element to the
successfal development of The Cyber Park of Danville and Pittsylvania County. The County
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prcviously allocaled two million dollars ($2,0OO,OQO) of its distributior~from the Tobacco oeieted: n~~ '
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Commission to the Future of the Piedmonl Foundation for the MSAP program. Therefore, the Deleted: ~blsyear
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partics acknowleAge that the C'ounty's initial contribution for the MSAP wa~two million dollars DHat@G: is ~
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($2,000,000) towards pronosed jnint projects outlinrd by this Agreement. , D2leted: 1`urtlier, both lucalniaagree
IuplrJgral Iea~1S1,000(HNlhriyear
l l. SHARING OF MACHINF.RY AN111'OOLS '1'AX REVF,VUES. (rom lhr luhaceu ~llotinc^t Ilwl cxh
i«:~~~~, «~,::,~, o-~, ~~i~,• ~~~gima
To6ac;o t-,~inino,wn
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Once one or more industries or businesscs have located within any Regional lndustrial
Facility, the host locality will begin to realize tax re~enues fram such industries nr husinesses for
machinery and tools tax, The host locality alone shall determine the rate at which machinery and
tools are taxed and the due date of such taxes, The host localiry agrees that upon receipt of
machinery und tools tax remitted by an industry located within a Regional lndustrial Facility
Authority Park, it shall appropriate the total of taxes so received and pay one-half (1/2) thereof to
the non-host locality and retain the remaining one-half (1/2).
l2. SHARIIVG OF REAL PROPERTY AND PERSONAL PROPERTY TAX
REVENUE:
Once one or more industries or 6usincsses have located within any Regional Indus[rial
Facility or purchased real property in any Regional Industrial FACility, the host locality will begin
to realize tnx revenues from such industries or businesses for real property and per~onal property.
The host localiry alone shall deteRnine the rate at which real and personal property is taxed and
the due date of such taxes. The host lucality agrees that upon receipt of such taxes nemitted by
an industry, it shall appropriate the total of taxes so received and pay onc-half (1/2) thereof to lhe
non-host localiry and retain the remaining one-half (1/2).
13. StIARING l~F MISCF,LLANF,niIS TAX RF.VF,NIJFS.
Once one or more industries or businesses have located within one of the Regional
Industrial Facilities, the host locality will begin to realize tax revenues from business license tax,
meals tax, lodging tax and any alcohol tax or any income and revenue generated by any facility
owned by the Authority as defined in this Agreement. The host locality alone shall Jeterminr
the tax rates for these taxes and thcir due datcs. Upon roceipt, the host locality shall appropriatc
the total taxes so received from these industries locatrd in the Itegional Yark and will pay onc-
half (1/2) thereof to thc non-host locality while retaininb the othcr one-half ( I/2). The paities
further agree that should the General Assembly of the State of Virginia authorize ~ locality to
levy and collect a new local tax and should the host locality choose to implement such future tax
on property, then the parties agrcc that such new tax revenues re:~lized f~Y>m a joint regiunal
authority will be shared equally in tl~e same manner and fashion as oU-er taxes within this
Agreement.
14. I'AY~91?N'I' OF 1'AX REVEN ULS.
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The host locality sha11 pay the portion of tax revenues due to die non-host ]ocality within
sixty (60) days of receipt and appmpnation of such tax revenues. If any tax dclinqucncies occur,
the non-host locality will pay for one-half of the cost of collecting past due taxes, and will
receive one-half of the penalties and interest accrued and paid.
l5. AMENDMEN'TS.
This Agrccment may be modified or amended by written Agreement approved by all
parties, for further development of other future development of other industrial properties, or for
other agreed upon reasons.
16. SEVERAB[L1TY.
The parts and provisions of diis Agreement are severable. lf any parc or provision shall
be held invalid by a court of compctcnt jurisdiction, the remainder of this Agreement shall
remain in full force and effect.
l7. SUCCESSOR5IN '1'ITLE.
It is agreed that the terms and conditions hereof shall be bindin~ upon the parties hereto,
and in addition, upon successors to the parties hereto.
18. DISSOLUTION OF AUTHORITY.
Dissolution of the Regional Autha~ity, should such occur, shall be made pursuant to
Virginia Code 5ection 15.2-G4 ] 5.
19. DISSOLUTION OF iZEVENUE SHARING AGREEMENT.
Once obligations have been incurred by the Authority in favor of any of the regional
parks, the parties hereto may withdraw from this Agreement only as the Member Lucalities
mutually agree.
20. CHOICE OF LAW.
The parties acknowledge that this Agrcement shall be govcrned by the laws of the
Commonwealth of Virginia.
21. LIM1iI'fATI~N OE I.iABILITY.
Thc Authority shall ensure the payment of all obligations, cost, and expenses for the
implementation of any project anticipated under this A6reement. "The Authority acknowledges
that the participating goveming bodies to this Agreement shall not be liable nor responsible for
the financing or for any debts of any projects desa~ibed within this Agi~eement.
22. FUTURE ANVG~C.ATION.
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I[ is agreed to by [he Member Localities that shuuld the City ever annex property within
the Danville/Pittsylvania County Joint Industrial Park or the adjacent Itinggold Industrial Park,
without the approval of the Board of Supervisors, thc City shall forfeit all futurc revenues from
the Joint industrial Park located in the County.
23. ENTIRE AGREEMEN'1'.
Thc parties acknowledge that this Agreement supercedes any prior Agreements and
incotporates all terms and conditions agreed [o between them, and further agree that there shall
be no oral modification hereof, and that any written modification shall be effective only if'duly
signed on behalf of the parties hereto. This Agreement, as amcnded, shal] remain in full force
and effect.
IN WITN~SS THLitEUP, this Agrecment is executed on behalf of the City of Danville,
Virginia, by its Mayor, pursuant to action duly taken by the City Council; and on behalf of
Pittsylvania County Board of Supervisors by its Chairman, pursuant to action duly taken by the
Board.
The City of Danville, Virginia
BY:
ATTEST:
Clerk
Approved as to Fonn:
Pittsylvania County
By: -
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