05-05 Advanced Energy Technology - BIP - $70,000

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PLACED OJ( 1 ST READING & REFERRED TO THE FINANCE COMMITTEE 2/7/05. PLACED ON 2ND RE)"¡])illNG 2/22/05. ORDINANCE NO: 5-05 BY: Corrigan, Demro, Dever, Dunn, FitzGerald, Madígan~,Sêelie. AN ORDINANCE authorizing the Mayor or his designee to enter into an agreement with Advanced Energy Technology Inc. for participation in the Lakewood Business Investment Program (BIP) of the Economic Development Fund (EDF) for a five (5) year forgivable loan in an amount of Seventy Thousand DOllars ($70,000.00). WHEREAS, as an authorized use of the City of Lakewood's entitlement allocation of federal Community Development Block Grant dollars, the EDF was established and approved by Lakewood City Council on December 2, 1996 in order to promote business investment and redevelopment in Lakewood for the purpose of supporting Lakewood's competitiveness and attractiveness as a location for new businesses and the expansion of existing businesses; and WHEREAS, the BIP was established and approved by Lakewood City Council on June 2, 1997 as a means for implementing the EDF in order to provide needed and appropriate assistance and support to companies investing in L¡;¡kewood that would foster redevelopment efforts to increase jobs, generate new tax revenue and provide for physical improvements in Lakewood; and WHEREAS, Advanced Energy Technology Incorporated has applied for a loan under the BIP in order to assist with the purchase of the machinery and equipment. WHEREAS, this application by Advanced Energy Technology meets and exceeds the General Assistance Guidelines of the BIP; and WHEREAS, the Economic Development Committee convened on February 3, 2005 and, reviewed, and unanimously approved recommendation of the SIP application by the Advanced Energy Technology Company, Inc.; and WHEREAS, an Agreement pursuant to Section II - Basic Criteria of the BIP General Assistance Guidelines will be executed by the Advanced Energy Technology, Inc. wherein Advanced Energy Technology, Inc. agrees to retain one hundred and twelve (112) fUll-time jobs and to the initial job creation of thirty-five (35) full-time jobs and further, in accordance with such Agreement, the Advanced Energy Technç¡logy, Inc. is prepared to undertake the project and to keep the business in Lakewood for five (5) years; and WHEREAS, in order to enter into loan agreements under the BIP with the Advanced Energy Technology Company, Inc, Lakewood City Council must grant authority for the City to enter into such agreements; and WHEREAS, this Council by a vote of at least five (5) members elected hereto determines that this ordinance is an emergency measure, and that this ordinance shall take effect at the earliest date possible as set forth in ARTICLE III, SECTIONS 10 and 13 of the SECOND AMENDED CHARTER OF THE cm OF LAKEWOOD, and that immediate action is necessary to provide for the preservation of the public health, safety and welfare and for the reason that financial assistance provided under the EDF Is an investment in the City of Lakewood which promotes business redevelopment, generates jobs, increases tax revenues and provides for physical improvements thereby stabilizing the community and improving the quality of life within the City. NOW, THEREFORE, BE IT ORDAINED BY THE cm OF LAKEWOOD, STATE OF OHIO: Section 1. That the Mayor or his designee is hereby authorized and directed to enter into an agreement with Advanced Energy Technology, Inc. for participation in the Lakewood Business Investment Program (BIP) of the Economic Development Fund (EDF) for a five (5) year forgivable loan in an amount of seventy thousand dollars ($70,000.00) toward the purchase of the machinery and equipment to be located at 11709 Madison Avenue, Lakewood, Ohio in compliance with and under the terms of the Business Investment Program of the Economic Development Fund; said agreements to contain such terms and conditions as deemed necessary by the Director of Law to protect the public interest.