JOB CREATION CREDIT AGREEMENT
FOR LWC PARTNERS, L.L.C.
THIS JOB CREATION CREDIT AGREEMENT is entered into this day of , 2010, by and between the City of Lawrence, Kansas, a municipal corporation (hereinafter referred to as the “City”) and LWC Partners, LLC, a Kansas limited liability company, and its successors, affiliates and assigns (hereinafter referred to collectively as the “Company”).
WHEREAS, the City owns, controls and operates the Lawrence Municipal Airport in Lawrence, Kansas (the “Airport”), an Airport which includes aeronautical navigation facilities, and the City desires to lease to the Company and the Company desires to lease from the City certain premises located on said Airport (the “Leased Premises”) upon the terms and conditions stated in a Land Lease Agreement executed on (the “Land Lease Agreement”); and
WHEREAS, the Company and/or its principals, members and affiliates, will engage in the business of transmission and pipeline inspection services, and the maintenance, operation, service, repair and storage of its aircraft, and related activities, and desires to lease said Leased Premises and rights from the City of Lawrence, Kansas, on and at said Airport; and
WHEREAS, one of the City’s current and long term objectives is to secure private economic investment in the City to broaden the City’s tax base and to create job opportunities for the community; and
WHEREAS, the City finds that granting a Job Creation Credit to the Company as more fully described herein which shall be applied toward the Company’s rent payments due pursuant to the Land Lease Agreement furthers the City’s economic development objectives.
NOW THEREFORE, the parties agree to the following:
1. The Company shall receive a $1,350 per year credit, subject to certain limitations including paragraph 3 of this Agreement, toward the rent payments due pursuant to the Land Lease Agreement for each full-time job created or retained at the Airport by the Company, and/or its principals, members and affiliates, as set forth herein. In years one through five of the Land Lease Agreement, the total job creation credit shall not exceed ninety-eight percent (98%) of the total value of the annual rent payment amount due pursuant to the Land Lease Agreement. In years six through ten of the Land Lease Agreement, the total job creation credit shall not exceed fifty percent (50%) of the total value of the annual rent payment due pursuant to the Land Lease Agreement.
2. Commencing in the eleventh year of the Land Lease Agreement and continuing through the remaining term of the Land Lease Agreement, and any Option Period thereof, the Company shall no longer be eligible to receive a job creation credit.
3. The Job Creation Credit described in paragraph 1 shall cease, and the City shall have no further obligation under this Agreement, if Company is granted an exemption from ad valorem property taxes in years one through ten of the Land Lease Agreement, unless Company shall elect to make comparable payments in lieu of property taxes (“Pilot Payments”) to the applicable taxing jurisdictions, in which event the Job Creation Credit described in paragraph 1 shall not cease.
IN WITNESS WHEREOF, the parties have hereunto set their hands this_____ day of
_______________________, 2010.
CITY OF LAWRENCE, KANSAS
David L. Corliss, City Manager
“The City”
ATTEST:
Jonathan M. Douglass, City Clerk
LWC PARTNERS, LLC,
a Kansas limited liability company
By:
John D. Scott, Co-manager
By:
Douglas J. Compton, Co-manager
“The Company”
STATE OF KANSAS )
COUNTY OF DOUGLAS )
BE IT REMEMBERED, that on this day of , 2010, before me, the undersigned, a Notary Public in and for the County and State aforesaid, came John D. Scott, Co-manger, on behalf of LWC Partners, LLC, a Kansas limited liability company, who is personally known to me to be the same person who executed the within and foregoing instrument of writing and duly acknowledged the execution of the same on behalf of said limited liability company.
IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal the day and year last above written.
Seal: Notary Public
STATE OF KANSAS )
COUNTY OF DOUGLAS )
BE IT REMEMBERED, that on this day of , 2010, before me, the undersigned, a Notary Public in and for the County and State aforesaid, came Douglas J. Compton, Co-manger, on behalf of LWC Partners, LLC, a Kansas limited liability company, who is personally known to me to be the same person who executed the within and foregoing instrument of writing and duly acknowledged the execution of the same on behalf of said limited liability company.
IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal the day and year last above written.
Seal: Notary Public