2011 - 03-21-2011 Reg. Meeting - Laserfiche WebLink

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BUK 23 1,,10012 The Golden LEAF Foundation GRANTEE ACKNOWLEDGMENT AND AGREEMENT 1) Grantee: Lee County 2) Project Title: - Frontier Spinning Mills Logistic Support Project (Cotton Ball) 3) Purpose of Grant: This Golden LEAF grant will allow Lee County to purchase pallets that it will lease to Frontier Spinning. Frontier has been using ports in Florida and Louisiana for shipments, and has explored moving production facilities closer to ports in the Gulf area, which would have resulted in the loss of Frontier jobs in North Carolina and may have led to decreased sales of North Carolina cotton to Frontier. With these pallets, Frontier will be able to ship its products from North Carolina ports at a more economical cost. The purchase of the pallets will allow Frontier to maintain its employment of 1014 employees in North Carolina and its purchase of over 165,000 bales of North Carolina cotton per year. 4) Amount of Grant: up to $1,000,000.00 5) Award Date: 10/7/2010 Start Date: 6) Special Terms and Conditions Applicable to Grant: a) Funds are to be used for permissible public purposes associated with acquiring pallets that will be leased to Frontier Spinning at fair market value. b) Release of funds is contingent on the Foundation's approval of the terms of the lease of the pallets. c) Funds are contingent on the company agreeing to retain 1014 full -time jobs at its North Carolina operations for five years from the commencement of the lease and agreeing to maintain its current levels of purchase of North Carolina cotton. d) Funds are contingent on the Grantee using commercially reasonable efforts to purchase pallets manufactured from recycled agricultural plastics. e) Release of funds is contingent on the company agreeing to allow the Grantee and Golden LEAF to verify the company's job retention figures by reviewing NCUI -101 forms submitted to the Employment Security Commission and /or through other means satisfactory to Golden LEAF. f) The grant is contingent on the Grantee entering an agreement with the company providing for appropriate consequences for the company's failure to meet job retention commitments. g) Any funds that the Grantee receives from the company because of the company's failure to satisfy its job retention obligations must be paid to Golden LEAF, plus a pro rata share of the amount of the grant for each job not created; provided, however, that the Grantee shall not be required to repay to the Foundation an amount in excess of payments received from the company under the lease agreement. h) Grant funds are to be used for charitable, tax - exempt public purposes as defined by Section 501(c)(3) of the Internal Revenue Service Code. i) Grantee agrees to use the proceeds from the lease of the pallets for future economic development activities that meet charitable, educational, scientific or tax - exempt public purposes within the meaning of Section 501 (c) (3) of the Internal Revenue Code and may be required to gain approval from the Foundation regarding future uses of lease proceeds. Proceeds from the lease or sale agreement may not be paid or otherwise transferred to the company, its affiliates, or principals, or to further support this project without prior agreement by Golden LEAF. j) Prior to release of funds, Grantee agrees to submit an evaluation plan for approval by Golden LEAF. In the plan, Grantee must demonstrate how it will report economic impact measures, including job retention, investment, and verification of lease payments made by the company.