AG 2002 01 28 (Regular) - Laserfiche WebLink

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I I I 246 DRAFT The Water and Sewer Authority will be responsible for refunding the WSACC Capital Recovery Fee, which had been collected by the County for the Authority. Addendum to the Pillowtex (Fieldcrest Cannon) Economic Development Incentivn Grant The Board received the recommended Addendum to the existing agreement with Pillowtex regarding its Economic Development Incentive Grant. Pillowtex declared bankruptcy and withheld payment 'of appropriate 2000 tax payments to the County and City of Concord. The company did make a delayed payment of its real property taxes to the City of Kannapolis. In a memorandum to the Board, Mr. Clifton reco~u, ended the following: In view of the agreements on the Pillowtex grant, it is recommended, and so outlined in the addendum, that Pillowtex will remain eligible for four (4) of the five (5) years on the grant. 1999 being declared ineligible due to a failure to comply with the terms of the grant. UPON MOTION of Commissioner Fennel, seconded by Commissioner Privette and unanimously carried, the Board approved the ffollowing Agreement (Addendum) and authorized the Chairman to execute the Addendum on behalf of Cabarrus County. STATE OF North Carolina AGREEMENT (ADDENDUM) COUNTY OF CABARRUS THIS ADDENDUM (the "Addendum") to that certain Agreement (the "Agreement") dated December 10, 1998 between CAB~/~RUS COUNTY ("County"), a political subdivision of the State of North Carolina, the CITY OF ~ANNAPOLIS ("Kannapolis"), a municipal corporation of the State of North Carolina, the CITY OF CONCORD ("Concord"), a municipal corporation of the State of North Carolina, and FIELDCREST CANNON, INC. ("FCI"), a Delaware corporation with a place of business in Kannapolis, North Carolina, is made and entered into this-- day of Dece~er, 2001 by the County, Kannapolis, Concord, and PILLOWTEX, INC. ("Pillo~tex"), a Delaware corporation with a place of business in Kannapolis, North Carolina and the successor in interest to FCI. WITNESSETH: WHEREAS, under section II of Exhibit C-1 of the Agreement, the County and participating municipalities shall require Pillowtex to 'pay in full' annually total property taxes due; and WHEREAS, Pillowtex was delinquent, i.e. owed outstanding property t~xes to the County and to Concord as of the date of filing the 1999 grant application as required under the Agreement; and WHERF~, the parties now wish to clarify the effect of the Agreement in the 1999 tax year and subsequent tax years in lieu of the delinquency of payment by Pillowtex. NOW, THEREFORE, in consideration of the mutual promises and covenants set forth in this Addendum and the Agreement, and for other good and valuable consideration, the receipt and sufficiency of Which are hereby acknowledged by the parties, Kannapolis, Concord, the County and Pillowtex do hereby agree as follows: Section 1. Violation of Agreement Negates 1999 Grant. As to the County and to Concord, the failure of Pillowtex t'o pay in full the annual property taxes due as of the date of filing the a'pplication for the 1999 grant constituted a violation of the terms of the Agreement and thus negated any obligation for the County or Concord to make payment under the grant for the 1999 tax year. Section 2. Pillowtex still eligible to receive grant in tax years 2000 and 2001. Should Pillowtex make payment to the County and to Concord in a~ amount sufficient to satisfy all outstanding property taxes due for both tax year 2000 and also tax year 2001 on or prior to January 7, 2002, then Pillowtex will be deemed current on its tax obligations and shall be eligible, under the terms of the Agreement, to make application for reimbursement grants from the County and Concord for said tax years. Should Pillowtex fail to make payment sufficient to satisfy the outstanding property tax obligations on or prior to January 7, 2002, then such unpaid obligation shall constitute a violation of the terms of the Agreement and negate the eligibility for Pillowtex to make application to Concord and the County under the terms of the Agreement.