Item Coversheet

Spotsylvania County
Board of Supervisors Agenda
Executive Summary




Meeting Date:
May 14, 2019
Title:
Approval to Extend Economic Development Agreement for Knife Center

Agenda Title:
Approval to Extend Economic Development Agreement for Knife Center
Recommendation:
Staff requests the Board of Supervisors approve the incentives cited in the First Amendment to the Knife Center Performance Agreement between the EDA and the Knife Center that renews the Agreement for an additional five-year term or until the time when the total amount of the Grant payments reach $50,000, whichever occurred first, provided that the Knife Center maintains 20 employees per year during the renewal period.
Summary:
The Knife Center Performance Agreement ("Agreement"), approved in 2013, was based on inducing an online retail business specializing in cutlery-related products to relocate its operations from Maryland to Spotsylvania County. The Agreement was based on the reimbursement of BPOL taxes with an option to renew for an additional five years. On June 26, 2018, the Economic Development Authority approved a First Amendment to the Performance Agreement that renewed the Agreement for an additional five-year term or until the time when the total amount of the Grant payments reached $50,000, whichever occurred first provided that the Knife Center maintains 20 employees per year during the renewal period. The EDA’s approval was based on the company’s adherence to the Agreement, the number of additional full-time jobs, average annual salary and growth in sales year-over-year.
Committee/Commission Summary:
Economic Development Authority
Review Date:
June 28, 2018
Status:Approved
Financial Impact:
1.  BPOL Tax Rebate for up to 5 additional years not to exceed $50,000.                                                  
Staff Contacts:
Tom Rumora, Director of Economic Development and Tourism
Consequence of Denial/Inaction:
The Agreement will not be renewed.   
ATTACHMENTS:
File NameDescriptionType
Resolution-_Knife_Center_2013.pdf2013 Adpoted ResolutionResolution
Knife_Center_Power_Point_final.pptxPresentationPresentation