Title
A Resolution approving the granting of an inducement to Aventics Corporation, or its successor or affiliate, pursuant to the Ky. Business Investment Act (KRS Subchapter 154.32), whereby the Lexington-Fayette Urban County Government agrees to rebate annually one percent (1%) of the company’s occupational license fees for a term of no longer than five (5) years from the activation date, subject to the limitations contained in the Act and any Agreement 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 allow an inducement to AVENTICS Corporation as local participation in the Kentucky Business Investment (KBI) Program, which includes a 5-year local 1% wage assessment through KBI. The company will expand its manufacturing of fluid power products in Lexington. Revenue to be rebated. Tax expenditure, not actual cost. (L1107-18) (Atkins)
Budgetary Implications: No
Advance Document Review:
Law: { Select Yes/No, Completed by [Attorney Name, Date]}
Risk Management: {Select Yes/No, Completed by [Official, Date]}
Fully Budgeted: N/A
Account Number:
This Fiscal Year Impact: Revenue to be rebated. Tax expenditure, not actual cost.
Annual Impact: Revenue to be rebated. Tax expenditure, not actual cost.
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 AVENTICS Corporation, 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 AVENTICS Corporation (or its successor to or an affiliate of), pursuant to the Act, whereby it would rebate annually to the Company 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 AVENTICS Corporation (or its successor or affiliate), for a term of no longer than five (5) 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 preamble to this Resolution is incorporated herein as if set out in full.
Section 2 - That the Granting of an inducement to AVENTICS Corporation, or its successor in interest or affiliate, as May be approved by the Kentucky Economic Development Finance Authority initially or in the future (hereinafter the “Company”), be and hereby is approved pursuant to the Kentucky Business Investment Program of the Kentucky Jobs Development Act (KRS Subchapter 154.32, hereinafter the “Act”).
Section 3 - That pursuant to the Kentucky Business Investment Program and KRS 154.32-090, the Lexington-Fayette Urban County Government hereby agrees to rebate annually to the Company one percent (1%) of the occupational license fee due from and remitted by the Company for 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 no longer than five (5) years from the activation date established by the program, subject to the limitations contained in the Act, any Agreement the Company has with the Authority or the Lexington-Fayette Urban County Government related to the project, and the submission of necessary documentation.
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 this Resolution shall become effective on the date of its passage.
PASSED URBAN COUNTY COUNCIL: