MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF FALL RIVER
AND
QUAKER FABRIC CORPORATION OF FALL RIVER
The City of Fall River (the "City") and Quaker Fabric Corporation of Fall River
(the "Company") hereby enter into this Memorandum of Understanding to set forth
their respective and mutual undertakings in connection with the purchase of and
construction of an expandable manufacturing facility and distribution warehouse
(the "Facility") on an approximate 60-acre industrially zoned site in the
southeastern end of Fall River (the "Site") and to increase employment in the
City by as many as 700 jobs.
A. The City agrees that it will:
1. Identify appropriate federal and state grant funds to complete the
"structural mitigation" work necessary to improve traffic conditions
for residents in the Brayton Avenue/Jefferson Street area and
facilitate access to the project site in accordance with the
"Traffic and Access Study" as prepared by Vanasse Hangen Brustlin,
Inc. and in accordance with the Section 61 findings for the facility
under the Massachusetts Environmental Policy Act, all such
mitigation work to be completed no later than August 2001. In the
event that the City fails to secure appropriate federal and state
grant funds for the above referenced improvements, the City shall
initiate and complete such work at its sole cost and expense.
2. Identify appropriate federal and state grant funds and assume the
cost of designing and constructing the new roadways needed to
improve access to both "the Site" itself and to the businesses
already located in the immediate vicinity, all as set forth on
Exhibit A attached, including but not limited to a "perimeter road"
ringing the cluster of businesses already operating in the Bleachery
Pond area and benefitting both the project site and other businesses
as well, such new roadways to be completed no later than August
2001. In the event that the City fails to secure appropriate federal
and state grant funds for the above referenced improvements, the
City shall initiate and complete such work at its sole cost and
expense.
3. Work with the Economic Assistance Coordinating Council to "certify"
this project in accordance with the Massachusetts Economic
Development Incentive Program guidelines which will enable the
Company to become eligible for a 5% State Investment Tax Credit
(ITC) on "anything tangible and depreciable" (i.e., plant and
equipment).
4. Certify, as part of Massachusetts Economic Development Incentive
Program, a local Tax Increment Financing (TIF) plan which will
provide the Company with a property tax exemption based upon the
percentage of value added through new construction for a period of
twenty years based upon a formula set forth in the TIF Agreement of
May 27, 1999 by and between the City and the Company.
Memorandum of Understanding
Page 2
B. The Company agrees it will:
1. Begin site development improvements no later than the Fall of 1999
and proceed with the construction of an approximately 358,200 s/f
building thereafter so as to accommodate an opening prior to
December 31, 2001.
2. Purchase an approximate 60-acre industrially zoned site (the "Site")
and invest $50.0 million in new plant and equipment at the Site,
including the construction of an expandable fabric manufacturing
facility and distribution warehouse (the "Facility"), and to
increase employment in the City by as many as 700 jobs between the
date of this Agreement and December 31, 2005.
3. Secure all necessary federal, state and local permits, including
project subdivision plan, pertaining to the siting and construction
of said "Facility."
4. Maintain its current level of 2,350 employees and, by virtue of the
construction of the new "Facility," increase its employment in the
City by 640 - 700 jobs by December 31, 2005. Said job creation will
consist of 140 - 200 new jobs by December 31, 2001, 250 new jobs by
December 31, 2002 and an additional 250 new jobs by December 31,
2005.
5. Maintain manufacturing and/or distribution processes in all Fall
River properties currently owned by Quaker Fabric Corporation.
6. Work with the City of Fall River to seek federal and state grants to
facilitate the infrastructure improvements necessary to implement
the construction of the Facility.
Dated: The City of Fall River
by: Edward M. Lambert, Jr.
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Edward M. Lambert, Jr.
Mayor
Dated: July 1, 1999 Quaker Fabric Corporation of Fall River
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by: [ILLEGIBLE]
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Name:
PRESIDENT AND CEO
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Title: