Title
A Resolution approving the granting of an inducement to Sumitomo Electric Wiring Systems, Inc., pursuant to the Ky. Business Investment Act (KRS Subchapter 154.32), whereby the Lexington-Fayette Urban County Government agrees to forego the collection of one percent (1%) of the Occupational License Fee related to the project for a term of not longer than ten (10) years from the activation date, subject to the limitations contained in the Act and any agreement Sumitomo Electric Wiring Systems, Inc., has with the Ky. Economic Development Finance Authority or the Urban County Government related to the project, and taking other related action. [Mayor’s Office, Atkins]
Summary
Authorization to approve agreement with Sumitomo Electric Wiring Systems, Inc. approving a 10-year local 1% wage assessment to participate in the Kentucky Economic Development’s Kentucky Business Investment Program. The Kentucky Economic Development Finance Authority has given Sumitomo Electric Wiring Systems, Inc. preliminary approval to participate in the Kentucky Business Investment Program. Sumitomo Electric Wiring Systems, Inc. plans to create 10 jobs with an average wage of approximately $56,400 per year plus benefits. There is no budgetary impact. (L0817-15)(Atkins)
Budgetary Implications [select]: NO
Advance Document Review:
Law: NO
Risk Management: NO
Fully Budgeted [select]: Yes/No/Partial
Account Number:
This Fiscal Year Impact: $
Annual Impact: $
Project:
Activity:
Budget Reference:
Current Balance:
Body
WHEREAS, the General Assembly has created the Kentucky Business Investment Program pursuant to KRS Subchapter 154.32 (the “Act”) to induce the creation of certain qualifying projects that would create jobs in Kentucky; and
WHEREAS, the Kentucky Economic Development Finance Authority has preliminarily approved the participation of Sumitomo Electric Wiring Systems, Inc., in the Kentucky Business Investment Program (the “Program”); and
WHEREAS, the Council of the Lexington-Fayette Urban County Government is willing to approve the granting of an inducement to Sumitomo Electric Wiring Systems, Inc., pursuant to the Act, whereby it would forego the collection of the one percent (1%) of the occupational license fee that would otherwise be due to it related to the employees who meet the requirements of the Program, which shall be retained by Sumitomo Electric Wiring Systems, Inc., for a term of not longer than ten (10) years from the activation date established by the Program, subject to the limitations contained in the Act and any agreement.
NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE LEXINGTON-FAYETTE URBAN COUNTY GOVERNMENT:
Section 1 - That the granting of an inducement to Sumitomo Electric Wiring Systems, Inc., be and hereby is approved pursuant to the Kentucky Business Investment Program of the Kentucky Jobs Development Act (KRS Subchapter 154.32).
Section 2 - That pursuant to the Kentucky Business Investment Program and KRS 154.32-090, the Lexington-Fayette Urban County Government hereby agrees to forego, and authorizes Sumitomo Electric Wiring Systems, Inc., to retain, the one percent (1%) of the occupational license fee due from the wages of those employees whose jobs meet the criteria related to the qualifying project under the program (as determined by the Kentucky Economic Development Finance Authority), for a term of not longer than ten (10) years from the activation date established by the program, subject to the limitations contained in KRS Chapter 154.32 and any agreement Sumitomo Electric Wiring Systems, Inc., has with the Authority or the Lexington-Fayette Urban County Government related to the project.
Section 3 - That Sumitomo Electric Wiring Systems, Inc., pursuant to its agreement with the Kentucky Economic Development Finance Authority and/or the Lexington-Fayette Urban County Government, shall simultaneously be entitled to a credit against the local occupational tax equal to the one percent (1%) of its taxable wages.
Section 4 - That the Mayor, the Clerk of the Urban County Council, and other appropriate officers and employees of the Urban County Government are hereby authorized to execute, acknowledge and deliver any agreements, documents and such other instruments and papers and to take such other actions as may be necessary or desirable, on behalf of the Lexington-Fayette Urban County Government, to effect the transactions authorized above.
Section 5 - That the preamble to this Resolution is incorporated herein as if set out in full.
Section 6 - That this Resolution shall become effective on the date of its passage.
PASSED URBAN COUNTY COUNCIL:
__________________________________
MAYOR
ATTEST:
_________________________________
CLERK OF URBAN COUNTY COUNCIL