LEGAL NOTICE CITY OF GLASGOW ORDINANCE NO. 2016-2890
AN ORDINANCE AMENDING ORDINANCE NO. 2760, AN ORDINANCE PERMITTING REBATE OR RETENTION BY INNOVATIVE MANUFACTURING SERVICES, INC., OF ONE PERCENT (1%) OF THE ONE AND ONE-HALF PERCENT (1%) OCCUPA-TIONAL LICENSE FEE ON CERTAIN WAGES PAID TO EMPLOYEES IN THE CITY OF GLASGOW, KENTUCKY ON THE CONDITION THAT INNOVA-TIVE MANUFACTURING SERVICES, INC., MEETS THE CRITERIA OF ITS APPLICATION FOR INCEN-TIVES UNDER THE KENTUCKY BUSINESS SYS-TEMS ACT.
THAT, WHEREAS, Innovative Manufacturing Ser-vices, Inc., (“Innovative”) was awarded benefits and incentives under the Kentucky Business Investment Act (KBI) by and through the Kentucky Economic De-velopment Cabinet and these benefits and incentives were based upon a period of ten (10) years;
WHEREAS, the
City of Glasgow
adopted an ordinance on October 24, 2011, (Ordinance No. 2760) which only provided for a five (5) year rebate or reten-tion by Innovative of one percent (1%) of the one and one-half percent (1%) occupational tax revenues to be paid by employees of Innovative for new employ-ees related to Innovative’s expansion;
WHEREAS, until just recently, Innovative was operat-ing under the belief that the City of Glasgow had ap-proved a ten(10) year rebate/retention which mirrored that of the state incentive program;
WHEREAS, according to the Kentucky Economic De-velopment Cabinet, Innovative will not be able to take advantage of the state benefits and incentives under KBI unless the City’s rebate/retention incentive is, in fact, for a period of ten (10) years; and
WHEREAS, the City of Glasgow desires to amend Ordinance No. 2760 to provide for a ten (10) year rebate and retention period rather than five (5) years;
NOW, THEREFORE, in light of the foregoing recitals, BE IT HEREBY ORDAINED, by the City of Glasgow as follows:
SECTION ONE: Ordinance No. 2760, adopted on October 24, 2011, shall be, and hereby is, amended to provide that for ten (10) years subsequent to the “activation date” as that term is defined in the Service and Technology Agreement which follows the Ken-tucky Business Investment Incentive State Program by and among the Kentucky Economic Development Finance Authority, Innovative Manufacturing Services, Inc., and Glasgow/Barren County Industrial Develop-ment and Economic Authority, Innovative Manufac-turing Services Inc., shall be entitled to retain and to have rebated to it, one percent (1 %) of the One and one-half percent (1 %) occupational license fee which would otherwise be paid by new employees of said company from their respective salaries and wages. The one percent (1 %) retention or rebate shall not apply to existing employees or other income or net profits of said company and shall only apply to occu-pational license fees on wages paid to employees in the City of Glasgow, Kentucky, sometimes otherwise referred to as “payroll taxes”.
SECTION TWO: The approval granted herein is sub-ject to Innovative Manufacturing Services, Inc., re-ceiving final approval of its application and meeting all terms and conditions of its eligibility of said benefits under the Kentucky Business Investment Act.
SECTION THREE: The approval granted herein is subject to Innovative Manufacturing Services, Inc., executing a Memorandum of Agreement with the City of Glasgow, Kentucky, recognizing and agreeing that the loan agreement, dated October 25, 2011, which was executed immediately after Ordinance No. 2760 was adopted shall remain in full force and effect for the entire ten (10) year rebate/retention period. SECTION FOUR: This ordinance shall take effect upon its passage and publication according to law.
/S/
DICK DOTY, MAYOR ATTEST: /S/ TOMMIE S. BIRGE, CITY CLERK FIRST READING: 10-24-16 SECOND READING: 11-14-16