10-02-2001-RIFA ResolutionPRESENTED: OCtober 2, 2001
ADOPTED: October 2, 2001
RESOLUTION N0. 2001- 10 ,07
A RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION
OF A REVENUE SHARING AGREEMENT BETWEEN THE CITY OF DANVILLE,
VIRGINIA AND THE COUNTY OF PITTSYLVANIA RELATING TO THE
SHARING OF REVENU~S FROM TWO REGIONAL INDUSTRIAL PARKS.
WHEREAS, the City of Danville and Pittsylvania
County have formed a Regional Industrial Facility Authority;
and
WHEREAS, one of the main focuses of the regional
authority is to develop and manage two reqional industrial
parks; and
WHEREAS, it is anticipated that the revenues
generated from these two regional industrial parks will be
~ shared equally between the two localities; and
WHEREAS, the Council has determined that econornic
cooperation with Pittsylvania County and the sharing of
revenues from the two industrial parks enhances and promotes
economic development in the region and benefits the health,
safety, welfare, convenience, and prosperity of the citizens
of the City of Danville.
THEREFORE, BE IT RESOLVED by the Council of the City
of Danville, Virginia, that a Revenue Sharing Agreement by and
between the City of Danville and The County of Pittsylvania,
n~rorHr ~. s~NCSa
CITY ATTORNEY
W. CiARKE WHffFIElO. JR.
A3919TANT GlY ATtORNEY
CfTY OF
DANVIILE, YIRIiRiIA
/
~•r. ~*:~,q~r•
Virginia, substantially in the form attached hereto and
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1' incorporated herein by reference, be, and the same is hereby
approved.
AND BE IT FURTHER RESOI~VED that Jerry L. Gwaltney, I
~
City Manager, be, and he is hereby authorized to execute said
Revenue Sharing Agreement on behalf of the City.
~ ~^ ~ Approved as to
~ Form and Legal Sufficiency:
I
C ~
~ ' y A rney
,--.
~,.
~uonir R. s~CER
pTY ATTORNEY
VK ClARKE WHIiFIEID, Jp.
~eetsrarrc c~rr Rnawer
arr o~
o,wvrue, rnr~nu
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REGIONAL INDUSTRIAG FACILITY AUTHORITY
AGREEMENT FOR COST SHARING AND REVENUE SHARING BETWEEN
TI~ CITY OF DANVILLE, VIRGIl'~IA
AND
PITTSYLVA1~iIA COUNTY, VIRGINIA
~ This Agreement is made and entered into this day of
I
I 2001, by and between the City of Danville (hereafter "Danville") and the Pittsylvania
I County (hereafter "Pittsylvania").
I 1. RT,~CIT 1CI0„]~TS:
~ WHEREAS, Danville and Fittsylvania have heretofore adopted a Memorandum
t
j af Understanding, dated April, 2001, in wluch Danville and Piitsylvania ha~e agreed to
~ work cooperatively to develop a regional cyber pazk located in Danville, Virginia, and a
~ regional industrial pazk located in Pittsylvania County, Virginia; and
r
WI-TEREA5, 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 Facilities Act, Title 15.2, Chapter 64, Code of Virginia, 1950, as
' amended; and
I WHEREAS, the gart.ies recognize that prior investrnents have been made by
l~anville on #he initia1219 acres, more or less, now owned by the Danville IDA,
I including the purchase of the land and its associated development in the amount of
~ $4,930,000; and
~
i WHEREAS, the parties recognize that prior investrnents have been made by
f Pittsylvania County for the MSAP program in the arnount of $Z,000,000; and
WHEREAS, the Danville IDA has exercised an option to purchase the 88.5 acre
property owned by the option "Sellers" and has pwchased such property for a tatal sum
of $2,584,618.25 and is cuxrendy titled in the name of the Industrial Development
Aufhority of Danville, Virginia; aud
WHEREAS, the parties desire, in conjunction with Vir$inia Polytechnic Instiiute
and State University, Averett University, and Danville Cornmunity College, to develop
and conshvct, on approximately eleven (11} acres of the Additional City Property, an
institute for advanced leaming and research (the "Institute"), which is designed to
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provide advanced technology-integf~te,~'~ducation an~ research in Southside Virginia
and serve as a focal point for economic developrnent in the region; and
WHEREAS, the parties further agree to develop a joint industrial pazk located in
the County hereafter known as the Pittsylvania-Danville Regional Industrial Park, as
generally autlined and described in this Agjeement. To that end, th~ parties have
received from the Commonwealth of Virguua fiu~ds to assist in providing initial
engineering, feasibility, and related studics ("Initial Studies Report") far a joint indushial
park located in Pittsylvania County, Virginia> as hereafter described ("Study Grant"); and
WHEREAS, the parties agree to praceed with the acquisition of options and
eontracts for the purchase of the real property for the Pittsylvania-Danville Regional
Industrial Park to be located in Pittsylvania County, Virginia.
WITNESSETH:
That for and in consideration of the mutual benefits inuring to each of the
localities hereto, and in furkher consideration af the duties and responsibility hereby
imposed. upon fihe parties hereto, the parties do hereby covenant and agree as follows:
2. DEFINITI4NS;
A. Act: "Act" shall be defined as the Virginia Regiona! Industrial Facilities
Act, Chapter 64, Title 15.2 of the Code of Virginia,1950, as amended.
$. Additional Citv Property: "Additional City Property" shall be defined as
88.5 acres, more or less, lacated in the City of Danville. Virginia, and as
shown on a certain plat of survey entitled "A Plat of Survey from the
Zndustrial Developrnent Authority of Danville, Virguua" dated February
28, 2001, a copy ~f which is attached to this Agreement as E~ibit "A".
C. A~r.~em~nt: "Agceement" sha11 he defined as this Revenue Sharing
Agreement, when entered into by all parties, made pursuant to the Virginia
Regionai Industrial Facilities Act, Chapter 64, Tide 15.2 of the Code of
Virginia, 195Q, as amended.
D. ber Paz :"Cyber Park" shall be defined as the additional City property
and the existing City property containing 308 acres, more or less.
E. Dissolution of Authoriri: "Dissolution of Authority" shall be defined as
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set forth in ~lirginia Code Section 15.2-6415, as amended, regarding the
procedures and division of assets upan dissolution of a regional industrial
facility authority.
F. Existin~ Citv Pronertv: "Existing City Property" shall be defined as 219.5
acres, more or less, located and lying in the City of Danville, Virguua, and
as shown on a certain plat of survey entided "Plat of Survey far River
View Industrial Park" dated February 29, 2000, including lots 1, 2, 3, 4, 5,
and 7 on said plat and excluding lots 6, 8, 9 and the roadways, a copy of
w}uch plat is attached hereto and made a part hereof as Exhibit "B".
G. I~ost Locality: "Host Lacality" shall be defiried as the locality where the
Regional Industrial Facility is physically located.
H. ~n~o~e and revenues g~enerated bv ~n~faciiity owned bv the Authority:
"Income and revenues generaied by any facility owned by the Authoriry"
shall be defined as any and all identifiable ta.~ revenues generated from
property owned currently or at some dme by the Authority which may
have been sold, leased, conveyed or transferred to any third party.
I. Iv~ember Localities: "Member Localities" shall be defined as the City of
Danville and Pittsylvania County, Virginia.
J. Nan-host I,ocalitv: "Non-host Locality" shall be defined as the partner
locality that is not the host locality.
K. di c:"Ordinance" shal] mean an Ordinance adopted by both
Member T.ocalities which creates the Danville-Pittsylvania Regional
Indust~ial Facility Authority pwrsua~at to the Virguva Regional Industrial
Facility's Act, Chapter 64, Title 15.2 of the Code of Virginia, 1950, as
L. Pitt~ylvania-Danville Regional Industrial Park: "Pittsylvania-Danville
Regional Industrial Park " shall be defined as a joint industrial park to be
located in Pittsylvania County near the City of Danville.
M. Re 'onal Industria~,Fac~ty: "Regional Tndustrial Facility" shall be
defined as any jQint industrial project contemplated arid agreed to by the
partner localities.
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3. C A'~`IQN O~ REGIONAL INDU,~TRYAL,~ACILITY A~JTHORITYt I
Danville and Pittsylvania County have established a regiona] industrial facility ~
authority thz'ough 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 aze
specified in said ordinance and in the Act. The regional industrial facility authority shall
I
be named the "Danville-Pittsylvania Count~RggiQnal Ir~dustrial Facility Authority,"
hereinafter referred to as the "Re~ional Authority." ~
4. PUR~I~.~E OF PROPERTY. I
A. Danville and Pittsylvania have each contributed the sum of $1,000,000 for ~
the pwchase of the 88.5 acres. A.n additional $1,d00,0U0 has been committed by the +
Future of the Piedmant Foundation for the purchase and development of the Institute.
I
The Danville Industrial Development Authority has ciosed on the purchase of the 88.5
acres, more or less, for a total cost of $2,584,b18.25. ~
B. Danville ~nd Pittsyivania agre;e to jointly purchase and development ~
property to be located in Pittsylvania County near the City of Danville municipal I
boundary for a Joint Industrial Pazk.
5. TRA~1S R O TITLE TO P~tOPERTY.
DanvilIe and Pittsylvania agree that the acreage in the Cyber Park and the
Pittsylvania-Danville Regional Industrial Pazk shall be conveyed to and titled in the name
of the Regional Authority.
6. ~ROJECT COSTS.
In order to and as a condition of sharing the revenues from any property owned by
the Regianal Authority, each of the Member Localities must contribute equally in the cost
of development and mazketing of the Regional Indushial Facilities described in this
Agreement, as well as one-half (I/2) of the cost of fhe recnutment and incenrive packages
offered to any industry to lacate within any of the joint Regional Industrial Facilities
described herein.
A. Construction and Development C4sts. Member Locaiiries hereby agree to
~ each pay ane-half (ll2) of the cost to ttze Member Localities for de~elopment
~ constru~ction af the doint Industrial Facilities described~ herein as we11 as the Institute.
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8. Marketi~g and Fromdtion~l Costs. Member Localities hereby agree to
each pay one-half (112) of the cost for al] 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 (112} of the cost of any grants or incentives af any type of~ered to an industry client
in order to entice such industry or business to locate within any of the Joint Regional
Facilities described in tlus Agreement.
D. Utilitv Extensions. Each locality will be responsible for the cost of utility
installation, separate from this Ag~eement, for industrial facilities within its service
jurisdiction in acc~ordance with its established policies and procedures and the cost for
such utility extensions will not be used to compute any dissolution, des~ribed herein.
7. PRO.XECT FUNDING.
A, initial Studies Grant. The parties have received an Izutial Studies Grant
from the Commonwealth of Virginia in the amount of $40,000 to complete initial studies
of a Regional Industrial Pazk in Pittsylvanis County. These funds were matched by the
Member Localities at $S,Q00 each.
B. Future of the Piedmont. The Future of the Piedmont Foundation (the
"Foundation") is an oxganization organized under Internal Revenue Code Section
501(c)(3), wluch has been actively in~olved in efforts to promote the economic growth
and development of the City and the County. The Foundatian bas COMMITTED One
Million Dollars ($1,000,000) from a United States governmsnt grant for the acquisition,
development and construction of the Institute.
C. Member Locality Funding. Danville and Pittsylvania agree to provide on
an annual basis, as and when each party receives distributions from the Tobacco
Commissian, an amount of One Million Dollars ($1,(}40,000) from such funds received
from the Tobacco Commission be paad or delivered to the Regional Authority, or to such
fund or account as the parties may mutually agree for the joint development of the
Institttte.
D. Income generated b~Authorit~. Danville and Pittsylvania agree that any
and all income generated as a result of salea, leases, conveyances, and/or interest on
funds held by the Regional Authority sha11 constitute income generated by the Regional
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Authority. Such iacome generated by the Regional Authority will be held by the
Regional Authority and utilized by the Regionat Authority to further promote econornic
development within the two localities as the Regional Authority deeras appropriate.
E. Anv add~tional funding agreed to bv both partners/localities iaintlv. The
Member Localities understand and agree that additional funding may be necessary for the
aequisition and development of the two joint industrial parks outlined in this Agreement.
Member Localities agrse that in the event that they both jointly determine that additional
funds need to be allocated towards the Regional Authority that such funds will be
tendered to the Authority for the uses permitted by tlvs Agreernent and the Act.
8. A~DM~NISTRATION OF_PRQJECT FUNDING.
Member Localities do hereby agree that the administration and support given to
each project described in this Agreement as well as such support given to the Regional
Authority sha11 be allocated and determined by the Regional Authority. As af the date of
this Agreement the City of Danville has acted as "Development Support Agent" for the
project funding in the Cyber Park and far the initial filing process for an Initial Study
Crrant for the Danville-Pittsylvania Regional Industriai Park. The parties agree that the
allocation of such adrninistrative support duties is best allocated by and through the
Regional Authority.
9. PURSUTT OF QTHER FUNDIN~.
Nothir-g in this Agreement shall preclude either locality, either jointly or
separately, frflm pursuing, and successfully receiving, other funding sources to pay for
site develppment of any regiona! project. It is understoad and agreed tinat ane Member
Locality cannot bind another Member Locality to any Grants without the approval of all
Member Localities.
10. PRI,SIR EXPENDITURES BY PARTNER LO ALITIE5.
It is understaod and agreed that in cansideration of Pittsylvania support of the
location of the "High Tech Institute" within the City of Danville that Danville will not
seek a contribution for the existing 219 acres and its improvements. The parties
acknowledge that the City's initial contribution for Existing City Property is four millian
nine hundred thirty thousand dullars ($4,930,000). The parties fiirther acknowledge that
the MSAP prograrn is a vital element to the successful development of The ~yber Park of
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Danville and Pittsylvania County. The County has aIlacated two million dollars
($2,000,000) of its distributian this year from the Tobacco Commission to the Fuhue of
the Piedmont Founciation far tlze MSAP program. Therefore, the parties acknawledge
that the County's initia.t cantribution for the MSAP is two rnillion dollars {$2,OQ0,000)
tawazds proposed joint projects outlined by this Agreement. Further, both localities agree
to pledge at least $1,000,000 per yeaz from the tobacco allotrnent that each locality
receives frorn the Virginia Tobacco Commission.
11. SHARING OF MACHINERY AND T40LS TAX REVENUES.
Once one or more industries or businesses have located within any Regional
Industrial Facility, the host locality will begin to realize tax revenues from such industries
or businesses for machinery and taols tax. The host locality alone shall determine the
rate at which machinery and toals are taxed and the due date of such taxes. The host
lvcality agi~ees that upon receipt of machinery and tools tax remitted by an industry
located witlun the Regianal Park, it shall appropriate the total of taxes so received and
pay one-half {1/2) thereof to the non-host lacality and retain the remaining one-half (1/2}.
lZ. S~,ARIlYG OF REAL PROPERTY AND PERS4NAL PROPERTY TAX
RE'vENiJE:
Once ane or more industries or businesses have located within any Regional
Industrial Facility or purchased real praperty in any Regional Industrial Facility, the host
locality wiIl begin to realize tax revenues from such industries or businesses for real
property and personal properry. The host locality alane shall determine the rate at which
real and personal property is taxed and the due date of such taxes. The host locality
agrees that upon receipt of such taxes remitted by an industry, it shall appropriate the
total of taxes so received and pay one-half {1!2) thereof to the non-hast locality and retain
the rema,ining one-half (1/2).
13. SHARING OF MISCELLANEOUS TAX R~VENUES.
Once one or more industries or businesses have located within one of the
Regional Industrial Facilities, the host locality will begin ta realixe ta~c revenues frorn
business license tax, meals tax, lodging tax and any alcohal tax or any income and
revenue generated by any facility owned by the Authority as defined in this Agreement.
The h~st locality alone shall determine the tax rates for these taxes and their due dates.
Upon receipt, the host locality shall ap~-ropriate the total taxes so received fi-om these
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industries located in the Regional Pazk arld will pay one-half (1/2) thereof to the non-host
locality while retaiaing the other one-half (1/2). The parties farther agxee that shouJd the
General Assembly of the State of Virginia authorize a locality to levy and collect a new
iocal tax and should the hast locality choose to implement such future tax on property,
then the parties agree that such new tax revenues realized from a joint regional authozity
will be shared equally in the same manner and fashion as other ta~~es within this
Agreement.
14. PAYII~NT OF TAX REVENUES.
The host locality shalI pay the portion of tax revenues due to the non-host locality
within sixty (60) days of receipt and appropriation of such tax revenues. If any tax
delinquencies occur, the non-host locality will pay for one-half of the cost of cc>llecting
past due taxes, and will receive one-half of the penalties and interest accrued and paid.
I5. AMENllMENTS.
Thia Agreement rnay be modified or arnended by written Agreement approved by
all parties, for fu,rther development of other future development of other industrial
properties, ur for other agreed upon reasons.
16. SEVERABILITY.
The pazts and pmvisions of this Agreement are severable. if any part or pravision
shall be held in~alid by a court of competent jurisdiction, the remainder of this
Agreement shall remain in full force and effect.
17. 3U~CESSORS IN TITLE.
It is agreed that the terms and r..onditions hereof shall be binding upon the parties
hereto, and in addition, upon successors to the parkies hereto.
18. DISSOLUTION OF AUTHORITY.
Dissolution of the RegionaI Authority, should such occur, shall be made pursuant
to Virguua Code Section 15.2-6415.
14. DISSQ~.,UTION UF R~VENUE SHARIlVG AGREEIVIENT.
Once obligations ha~e been incurred by the Authority in favor af any of the
regional parks, the parties hereto may withdraw from this Agreement only as the Member
Localities mutually agree.
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20. ~~,OICE OF LAW.
The parties aclmowledge that this Agreement shall be govemed by t.he laws of the
Comm~nwealth of Virginia.
21. ~INIITATIQN OF LIABILITY.
The Authority shall ensure the payment of all obligarions, cost, and expenses for
the implementation of any project anticipated under this Agreernent. The Authority
acknowledges that the participating goveming bodies to this Agreement sha11 not be
liable nor responsible for the financing or for any debts of any projects described within
this Agreemen~
22. FU'TUR~_ANNEXATiON.
It is agr@ed ta by the Member Localities that should the City ever annex property
within the DanvilleJPittsylvania County Joint Industrial Park or the adjacent Ringgold
Industrial Park, withaut the appmval of the Boazd of Supervisars, the City shaIl forfeit all
future revenues from the Joint Inde~strial Park located in the County.
23. ENTIRE AGREEMENT.
The parties acknow~edge that this Agreernent supercedes any prior Agreements
and incorporates all terms and conditions agreed to between them, and further agree that
there shall be no oral madification hereof, and that any written modificaxion shall be
effective only if duly signed on behalf of the parties hereto.
IN WITNESS THEREOF, this Agreement is executed on behalf of the City of
Danville, Vizginia, 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 Dauxville, Virginia
By:
ATTEST:
Clerk
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Appraved as to Forrn:
Pittsylvania Cotmty
sy:
ATI'EST:
Clerk
Appraved as ta Form:
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