HomeMy WebLinkAboutRES.426.06-05-1989 . � , �-
BILL N0. 89-102 RESOLUTION N0. a
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
ENTER INTO A CONTRACT WITH SIX-THIRTY CORPORATION
FOR DEVELOPMENT OF A NEW MANUFACTURING SITE FOR
DANA CORPORATION
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF CAPE GIRARDEAU ,
MISSOURI , AS FOLLOWS:
SECTION l . The City Manager , for and on behalf of the City of
Cape Girardeau, Missouri , is hereby authorized to enter into a
contract with Six-Thirty Corporation for development of a new
manufacturing site for Dana Corporation. A copy of said Contract
is attached to 'this Resolution and made a part hereof .
PASSED AND ADOPTED THIS �� DAY OF , 1989 .
� - � �.
� �
rancis E. Rhodes, Mayor
ATTEST:
i
�
E lyn G. LeGrand, City Clerk
CONTRACT
This aQreement entered into by and between Six-Thirty
Corporation, a corporation authorized to do business in the State
of Missouri , hereinafter referred to as "Six-Thirty" , and the City
of Cape Girardeau, Missouri , a Municipal Corporation, hereinafter
referred to as "City" .
WHEREAS, Six-Thirty Corporation is a real estate development
company desirous of developing certain lands owned by said
corporation located in the City of Cape Girardeau known as the
Six-Thirty Industrial Park for a project establishing a new
manufacturing site in the City of Cape Girardeau for the Dana
Corporation; and
WHEREAS, City desires to provide assistance to Six-Thirty in
support of Six-Thirty ' s development for the Dana Corporation
project ; and
WHEREAS, the City has previously en'tered into a Community
Development Block GranL Agreement with the Missouri Department of
Economic Developmen't for the purpose of promoting this project ,
said Grant Agreement and Fund Approval are at 'tached hereto and
made part hereof by reference as thouqh fully set out herein.
COMES NOW the parties hereto on this day
of , 1989 , and agree and obligate themselves as
follows:
1 . Pursuant to the "Fund Approval" attached to and made part
of the Grant Agreement existing between the State of Missouri and
the City of Cape Girardeau , Six-Thirty Corporation ( identified as
"Developer" in the Funding Approval and Grant Agreement ) is
expected to provide funding for street improvements in the amount
of Eighty-Two Thousand Five Hundred Thirty-One Dollars
( $82 ,531 . 00 ) and sanitary sewer improvements in the amount of
Forty-One Thousand Six Hundred Eighty-Seven Dollars ( $41 ,687 . 00 )
as well as payment for engineering design in the amount of
Thirty-Eight Thousand Nine Hundred Sixty-Nine Dollars
( $38 ,969 .00 ) . The State is expected to provide Three Hundred
Thousand Dollars ( $300 , 000 . 00 ) for street improvements and
Sixty-Two Thousand Nine Hundred Dollars ( $62 ,900 . 00 ) for sewer
improvements .
2 . It is agreed by and between the parties that with respect
to the sums set out hereinabove for sanitary sewer construction
and street construction , that the City of Cape Girardeau will not
require that Six-Thirty make lump sum payments at the time of
construction of these improvements. It is agreed by and between
the parties that City will proceed with the street improvements
and the sanitary sewer improvements pursuant to the Grant
Agreement and that Six-Thirty ' s share of costs will be assessed
through special tax bills payable over ten ( 10 ) years at the rate
of interest normally applicable in accordance with City Ordinances
and State Statutes .
3 . Six-Thirty Corporation and City hereby agree that upon
execution of construction contracts for completion of the street
and sanitary sewer improvements as set out in the Grant Agreement ,
that City will require Six-Thirty to pay for such improvements
through the City 's tax bill process for special assessments . The
total amount to be tax billed through the special assessment
process for street improvements is Eighty-Two Thousand Five
Hundred Thirty-One Dollars ( �82 , 531 . 00 ) and for sanitary sewer
improvement is Forty-One Thousand Six Hundred Eighty-Seven Dollars
( $41 ,687 . 00 ) .
It is aqreed that certain costs for filling and grading
for the street improvements have been incurred by Six-Thirty
Corporation which shall be paid by the City and included in the
tax bills to be issued. It is further agreed that if street
improvement costs exceed the Three Hundred Eighty-One Thousand
Five Hundred Thirty-One Dollars ( $381 , 531 . 00 ) total set out in the
Funding Approval , that any such cost overruns will be included in
tax bills in addition to the Eighty-Two Thousand Five Hundred
Thirty-One Dollars ( �82 , 531 .00 ) for street improvements noted
above .
It is acknowledged and agreed by and between the parties
that a portion of the sewer improvements included in the Fun ding
Approval and contemplated in this agreement are being over sized
by the City and, therefore , any costs exceeding the total of One
Hundred Four Thousand Five Hundred Eighty-Seven Dollars
( $104 , 587 . 00 ) set out in the Funding Approval will be borne by the
City and not included in any tax bill issued to Six-Thir 'ty.
It is further acknowledged that Six-Thirty has dedicated
the necessary right-of-way to the City for said street
improvements and it is agreed by and between the parties that
Six-Thirty will dedicate the necessary right-of-way for said sewer
improvements at no cost to the City .
Six-Thirty hereby agrees to accept and pay tax billing of
these sums for the above described purposes all in accordance with
the City 's tax bill procedures as set forth in City Ordinances and
the statutes of the State of Missouri .
4 . The parties hereto agree that Six-Thirty's obligation for
engineering design in the amount of Thirty-Eight Thousand Nine
Hundred Sixty-Nine Dollars (�38 ,969 . 00 ) will remain as it was
described in the Grant Agreement and that this amount will not be
tax billed but will be paid in cash as the expenses are incurred.
5 . The parties hereto agree that the following described
real estate will enjoy substantial benefits upon the completion of
the sanitary sewer project and street development project as set
-2-
out herein and that said real estate is an appropriate subject for
special benefit assessment as contemplated by the parties :
The Six-Thirty Industrial Park located in Cape Girardeau,
Missouri , comprised of 100 . 61 acres located on the North side of
Highway 74 and 86 .06 acres located on the South side of Highway 74 .
6 . It is agreed by and between the parties that this
agreement shall be binding on the parties , their successors and
assigns including Grantees of the real estate being specially
assessed pursuant to this contract . The parties hereto agree that
said special assessment tax bills shall constitute liens against
Six-Thirty 's real estate in accordance with the City Code and
State Statutes of Missouri .
This Agreement entered into the day and year first written
above .
SIX-THIRTY CORPORATION
[Typed Name & Title of Signer ]
ATTEST:
( Typed Name & Title of Signer ]
CITY OF CAPE GIRARDEAU, MISSOURI
J. Ronald Fischer , City Manager
ATTEST:
Evelyn G. LeGrand, City Clerk
-3-
",�� MISSOURI DEPARTMENT OF ECONOMIC DEVELOPMENT
•- COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
r.� � �"� `% FUNDING APPROVAL
�*=��,�_��-'� under Title I of the Housing and Community Development Act of l974(Public Law 93-383)as amcnded.
1:NAME AND ADDRESS OF GRANI'EE: 8.PROJECT DESCRIPI'ION(indicate speci5c scope of each acdvity
rcgardless of funding source):
City of Cape Girardeau
� P. 0. Box 61i
Cape Girardeau, MO 63702 Dana Corporation
206 New Jobs
2 PROJECT NO. 3.CONTRACT NO. $19,�00,000 private invest�ent
88-ED-09 CDA-252-0053 The line items described as developer
4.POPULATION 5. cash in the privste matching funds
SEN.DIST. 27 column indicates monies that must be
34,364 REP.DIST.158�I59 spent befoze CDBG funds can be spent
6.EFFECI7vE DATE/ENDING DATE OF GRANi'AGREEMENT: on those line items designated as
CS/17/89 to 05/16/90 streets and sanitary sewers.
7.MAXIMUM CDBG GRANT AMOUNT AWARDED: ���i—�`� ��
�487,900
9.APPROVED ACTIVITIES,COST'S AND FUiv'DING STRATEGY � � �
ATCHING FUNDS
ACTMTY REa ENV. CDBG RECIPIENT: OTHERS:
PR RAM A N = P F
DB-4;ater Fac. 09 Yes 235,000 125,000 110,000 Union Ele .)
DB-Street 13 Yes d382,531 300,000 82,531 Developer Cash
DB-San. Se�.*er 10 Yes - 104,557 62,900 41,687 Developer Cash
Elec. Dist. 44 Yes 507,591 507,591 Union Ele .)
Gas Line 43 les 13,000 13,000 Union Ele .)
Eng. Design 36 No 38,969 _38,969 Developer Cash
Const. Ins. 3S No 15,000 15,000
Administration 35 No 23,000 23,000
Mach/Equipment 52 Tes 5,000,000 5,000,000 Company)
Land/Bldg SO Yes 4,200,000 4,200,000 Company)
, '
Davis-Eacon appZi s whe e specifi d by ini ials D
0,519,678 457,900 38,000 9,993,778
70TAL
�Fund for activiues that are conditioned subject m an emironmerttd reviaw mafi nat be incurred or obligated urtdl a written"Notice of Remwal of 6rartt Condrtons"is iswed by DED.
�This cofumn represertts the ma�omum amourtt of C�BG huids epproved for each acdvity.ettePt that the grarrtee may transfer funds between activiries an amourrt not to azceed
S10,OD0 w 10%of the total COBG allocaUon,whichever is leu,euept that edminisnatioR audiC and engineering rnstsmay not axceed the indicated totals.
PREPARED BY: OATE:
David H. Meyer May 1, 1989
0839-1/119
MO 419-1146(03-88)
� ~. GRANT AGREEMENT
��..:'..�':=;�.
�,:,�:`"�� (DED Form GA-88)
-,e. • STATE OF MISSOURI
� � EPARTMENT OF ECONOMIC DEVELOPMENT
��_� D
''������`r • COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
This grant agreement is madeCby�nd between the State of Missou�f,Department of Economic Development(DED),hercin called"the State"or
"DED,"and the 1 I Y CAPE �I RARDFAII hercin called the Grantee, pur-
suant�o the authority of Title I of the Housing and Community Development Act of 1974(Public Law 93-383),as amcndod,herein referred to as
"The Act"and commonly referred to as thc Community Development Block Grant Program(CDBG).The Grantee's submissions(including
"assurances'�for CDBG assistance,Department of Housing and Urban Development(HUD)regulations at 24 CFR Part 570,the State's FY-88
"Final Statement",the State's FY-$8 Grantee Management Handbook and the State's FY-88 CDBG Program Guidelines(as now in effect and
as may be amended from time to time),which are incorporated by reference,together with the DED Funding Approval form,and any special
conditions,which are hereto attached,constitute part of the agreement.
In reliance upon and in consideration of the mutua]representations and obligations hereunder,the State and the Grantee agree as follows:
(1)Subject to the provisions of this Grant Agreement,the State will make the funding assistance for federal fiscal year 1988 specified in the at-
tached DED Funding Approval form available to the Grantee upon execution of the Agreement by the parties.The obligation and utiliza-
tion of the funding assistance provided is subject to the requirements for a release of funds by the S�ate under the Environmental Review
Procedures at 24 CFR Part 58 for any activities requirin8 such release.
(2)The Grantee agrees to comply with all applicable requiremenu of Titles II and III of the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970(42 U.S.C.4601)as specified in the State's Fiscal Year 1988 Program Guidelines,Assurances submitted by
the Grantee,and thc state's Fiscal Year 1988 Grantee Management Handbook.
(3)The Grantee agrees to assume all of the responsibilities for environmental review,decision making and actions,as specif'ied and required in
Section 104{�of the Act and published in 24 CFR Parc 58.
(4)The Grantee agrees to accept responsibility for adherence to this agreement by subrecipient entities to which it makcs funding assistance
available.
(5)The Grantee agrees that any and all such amount of local funds or in-kind(force account)services or materials indicated in the attached
Funding Approval form shall be equal to or greater than the amount indicated.
(6)The Grantee agrees that any proposed construction-related activity budget variances(from the Funding Approval form)in excess of l�o of
the amount of this agreement or 510,000(whichever is a lesser amount)shall be approved by DED in writing prior to an obligation of funds
for such activity;however,any variance shall be approved by the Grantee's governing body in advance of an obligation of such activity.No
variance is allowed for non�onstruction activities such as administration,engineering,audit,and inspection,unless approved by DED.
(7)The Grantee aerees to complete the project in iu entirety prior to the ending date of the agreement as indicated in the Funding Approval
form.
(8)The Grantee agrees that any CDBG funds remaining from the allocation indicated in the Funding Approval form after the project has been
completed shall be returned to DED if they have been drawn to the Grantee's local depository,or cancelled if such funds have not been
drawn.
(9)The Grantee agrees to comply with OMB Circular A-128,which govems the auditing requiremenu of these grant monies in accordance with
the Single Audit Act of 1484,and to provide DED with all required audiu.
(10)The Grantee agrees that State and HUD officials shall have full access to any documenu or materials relating to this agreement at any rea-
sonable time.
(1])The Grantee aerees that all funds received under this agreement shall be held and used by the Grantee for the purpose of accomplishing the
project only and none of the funds so held or received shall be diverted to any other use or purpose.
(12)The Grantee agrees that any material prepared by the Grantee or persons or firms employed or contracted by the grantee shall not be sub-
ject to copyright,and the State shall have the unrestricted authority to publish,disclose,distribute,or otherwise use,in whole or in part, any
reports,data or other material prepared under this agreement.
(13)The Grantee agrees to comply with the terms of DED conflict of interest policy as provided in the State's F1'-88 Grantee Management
Handbook and any subsequent revisions thereto.
(14)The Grantee agrees that any approval of contracu,sub�ontracts,material or service ordets,or any other obligation by the Grantee or its
agenu shall not be deemed an obligation by the State, and the State shall not be responsible for fulfillment of the Grantee's obligations.
(l5)The Grantee agrees to comply with the citizen participation requiremenu set out in Section 104(a)of the Acc,including the State's written
Citizens Participation Plan in accordance with Section 508 of the Housing and Community Development Act of 1987.
(l6) In the event that the State or an audit has determined that the Grantee has failed to comply with this agreement,the Grantee shall perform
remedial actions to correct the deficiency,as determined by the State which may include:
(a) Repayment or reimbursement of CDBG funds spent inappropriately to the State or the local CDBG fund(at DED's discretion);
(b)'The re[urn of CDBG funds deposited at the grantee's local fmancial institution to the State;
(c)The return of any equipment,materials,or supplies purchased,leased,or lease purchased using CDBG funds to DED or the supplier,
(d)Other actions as the State deems appropriate.
Such actions shall be performed by the Grantee in the time period specified by the State in writing to the Grantee.The State may refuse requesu
for CDBG funds by the Grantee or other actions as the State deems appropriate to ensure proper performance of the terms of this agreement.
(17)The State may terminate this agreement in whole or in part,at any time before the date of completion,whenever it is determined by t!�e
State that the Grantee has failed to comply with the conditions of this agreement.The State shall notify the Grantee in writing of the deter-
mination and the reasons for the termination,together with the effective date.The Grantee shall not incur new obligations for the termi-
nated portion after the effective date of the revocation of the agreement,and it shall be the grantee's duty to cancel all outstanding obliga-
tions that are legally possible.
(18)The State and Grantee each binds himself to his successors,executors, administntors,assigns,and legal representatives to the other party to
this agreement and to the successors,executors,administrators,assigns, and legal representatives of such other party,in respect to all coven-
ants,agreemenu,and obligations of this agreement.
(19)The State agrees that it may at any time,in its sole discre[ion,give any consent,deferment,subordination,relcase,satisfaction,or termina-
tion of any or all of the Grantee's obligations undcr this agreement,with or without valuable consideration,upon such terms and conditions
as the State may determine to be(a)advisable to further the purpose of the project or to protoct the State's financial interest therein,and
(b)consistent with both the statutory purposes of the grant and the limitations of the statutory authonty under which it was made.
r
IN WITNESS WHEREOF,the parties hereto have made and executed this agreement as of the day and year indicatcd in the Funding Approval
form. • %
�,
GRANTEE(CITY/VILLAGE/COUNTY): STATE:
SIG RE:/ TYPED: , � %�/
� ' , ` � � 'L•�"L=C= Ro
�,/ �>�,/���.T� 5 /16/8 9
�H1EF EXECUTIVE OFFICER DATE DIRECTOR,DEPARTMETv'T OF DATE
� (City Mayor,Village Board Chairman, ECONOMIC DEVELOPMENT
or Presiding County Commissioner)
SIG�IAT RE: % � ' TYPED:
�`,,C ' � �. , � e�. , rG�„ 5 16 8 9
ATTEST(C�y,Village,or County Clerk,or other
official of the Grantee
NOTE:THE GRANTEE'S SEAL MUST BE AFFIXED OVER THE GRANTEES SIGNATURES.IF NO SUCH SEAL EXISTS,
IT MUST BE PROPERLY NOTARIZED.