Title
Request to Consider Adoption of the restated resolution, to replace RES0252-2010 adopted at the November 8, 2010 Regular Meeting, regarding the request of a transfer of employment for Ovonyx Technologies, Inc. located at 2956 Waterview Drive
Body
Whereas, on September 12, 2007, the Rochester Hills City Council approved a request from Ovonyx Technologies, Inc. (“Ovonyx) for an Industrial Facilities Exemption Certificate for personal property only for six years; and
Whereas, in connection with that request, the City and Ovonyx entered into a Development Agreement, dated September 17, 2007 setting forth the parties’ representations, understandings and obligations concerning the tax abatement; and
Whereas, in approving Ovonyx’s tax abatement request, the City Council relied on and was induced by Ovonyx’s representations regarding its location of its business in the City, its substantial proposed investment in new personal property, and its retention of existing jobs and creation of new jobs; and
Whereas, Ovonyx has notified the City that it will be relocating from Rochester Hills at the end of the year and requests the City Council to approve the transfer of employment and equipment outside of Rochester Hills; and
Whereas, Section 9 of the Development Agreement between the parties says, in pertinent part:
“The applicant, Ovonyx Technologies, Inc., agrees to remain in the City of Rochester Hills for the period of the Industrial Facilities Exemption Certificate to retain the benefits of the abated taxes unless permission is granted by the City Council. Failure to obtain permission prior to the end of the term of the Industrial Facilities Exemption Certificate shall result in the right of the City to recapture from applicant all taxes abated plus interest…Further, it is understood that Ovonyx Technologies, Inc. subleases space at 2956 Waterview Dr. from Energy Conversion Devices, Inc., whose lease initially expires in 2010 with an option to renew for five...
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