TAX INCREMENT FINANCING AGREEMENT
CITY OF FALL RIVER, MASSACHUSETTS
AND
QUAKER FABRIC CORPORATION OF FALL RIVER
This agreement is made this 27th day of May 1999, by and between: City of Fall
River, a municipal corporation duly organized under the laws of the Commonwealth
of Massachusetts, having a principal place of business at Xxx Xxxxxxxxxx Xxxxxx,
Xxxx Xxxxx, Xxxxxxxxxxxxx, 00000, acting through its Tax Increment Financing
(TIF) Board (hereinafter called the "CITY"); and Quaker Fabric Corporation of
Fall River, a corporation with a principal place of business at 000 Xxxxxxxx
Xxxxxx, Xxxx Xxxxx, Xxxxxxxxxxxxx, acting through XXXXX XXXXXXXX, ITS PRESIDENT
(hereinafter called the "COMPANY").
WHEREAS, the COMPANY is the largest employer in the CITY and a leading
manufacturer of woven upholstery fabrics for furniture markets in the United
States and abroad; and
WHEREAS, the COMPANY wishes to build a major manufacturing and warehousing plant
in Fall River at a site to be purchased by the COMPANY at 000 Xxxxxxxxx
Xxxxxx/Xxxxxxxxx Xxxx located within Fall River's Bleachery Pond Economic
Opportunity Area (hereinafter referred to as the "FACILITY") and obtain certain
tax exemptions from the CITY for said FACILITY; and
WHEREAS, the CITY is willing to grant said tax exemptions in return for a
guarantee of capital investment at the FACILITY and employment opportunities for
local workers; and
WHEREAS, the COMPANY has embarked upon a strategy of significant capital
investment in plant and equipment and job creation in Fall River;
NOW, THEREFORE, in consideration of the mutual promises contained herein, the
parties do mutually agree as follows:
A. THE COMPANY'S OBLIGATIONS
1. The COMPANY shall build an expandable (+/-) 358,200 square foot
manufacturing and warehousing facility at 000 Xxxxxxxxx Xxxxxx/Xxxxxxxxx
Xxxx (hereinafter referred to as the "SITE") to expand the COMPANY's
production and distribution operations.
TIF Agreement - Quaker Fabric Corporation of Fall River . . . Page 2
2. The COMPANY shall invest approximately $50 million in the FACILITY, employ
in the CITY an additional seven hundred (700) permanent full-time workers
by December 31, 2005, and retain the current two thousand three hundred
fifty (2,350) employee level. The COMPANY shall agree to operate a
business and provide best faith efforts to maintain the level of jobs
described as long as the TIF Agreement is in place.
3. The COMPANY shall cooperate with Job Training Partnership Act programs and
the Division of Employment and Training of the Commonwealth of
Massachusetts, the Bristol County Training Consortium and other agencies,
as appropriate, in seeking to fill vacancies at the COMPANY from the local
community. The COMPANY shall commit to a policy of making all good faith
efforts to hire qualified Fall River residents for any employment
opportunities that become available at the FACILITY.
4. The COMPANY shall make all good faith efforts to use local subcontractors
for the construction of the new FACILITY. The COMPANY shall also make all
good faith efforts to use local contractors and subcontractors for any
future repairs or renovations to the FACILITY.
5. If the COMPANY decides to sell the FACILITY or the business or to
otherwise transfer control of the FACILITY or business and/or the
operations therein, the COMPANY shall make good faith efforts to give the
CITY at least sixty (60) days prior notice of said sale or transfer. This
agreement is non-transferable. Said notice shall be given by certified
mail, return receipt requested, to the Mayor of the City of Fall River,
Xxx Xxxxxxxxxx Xxxxxx, Xxxx Xxxxx, Xxxxxxxxxxxxx, 00000.
6. The COMPANY shall provide the CITY with a quarterly report beginning at
the end of the quarter immediately following Project Certification and for
each subsequent quarter thereafter. Said report shall contain the
following information: (1) employment levels at the COMPANY at the
beginning and end of the reporting period; (2) number of Fall River
residents employed at the COMPANY at the beginning and end of the
reporting period; (3) utilization of local contractors and subcontractors
during the reporting period; (4) supplies/materials purchased locally
during the reporting period; (5) the COMPANY's financial contribution to
the city (i.e., property taxes, motor vehicle excise taxes, water and
sewer fees) for the reporting period. Said quarterly report shall be given
to the Mayor of the City of Fall River, President of the Fall River City
Council, Fall River City Clerk, Fall River Assessor, and Jobs for Fall
River, Inc., Xxx Xxxxxxxxxx Xxxxxx, Xxxx Xxxxx, XX, 00000. Jobs for Fall
River, Inc. shall be responsible for monitoring job creation activities
and compliance with the terms and conditions set forth in this agreement.
TIF Agreement - Quaker Fabric Corporation of Fall River . . . Page 3
B. THE CITY'S OBLIGATIONS
1. The CITY shall grant a Tax Increment Financing exemption to the COMPANY in
accordance with Massachusetts General Laws, Chapter 23A, Section 3E,
Chapter 40, Section 59, and Chapter 59, Section 5. Said exemption shall be
granted on the building or buildings to be constructed at the SITE, and
all expansions and modifications thereof. Said exemption shall be valid
for a period of twenty (20) consecutive years, beginning with fiscal year
2000 (July 1, 1999) and ending with fiscal year 2019 (June 30, 2019). Said
exemption schedule is as follows:
Term Exemption Taxes Due
Years 1 - 16 100% 0%
Years 17 - 20 75% 25%
Year 21 0% 100%
C. OTHER CONSIDERATIONS
1. If the COMPANY fails to meet or maintain employment goals or comply with
the other terms of this Agreement, the CITY may request revocation of the
TIF Agreement by the Economic Assistance Coordinating Council, in
accordance with Commonwealth of Massachusetts Regulations 402 CMR,
Sections 2.01 - 2.18, as amended.
Executed as a sealed instrument as of the day and year first above written.
Tax Increment Financing Board, Quaker Fabric Corporation of Fall River
City of Fall River
/s/ Xxxxxx X. Xxxxxxx, Xx. /s/ [ILLEGIBLE]
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Mayor Xxxxxx X. Xxxxxxx, Xx., Chairman Name:
PRESIDENT AND CEO
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