Title
A RESOLUTION TERMINATING A JOB CREATION GRANT AGREEMENT WITH BEAUTY SYSTEMS, LLC.
Executive Summary: Pursuant to Resolution No. 10-105, adopted on August 18, 2010, the City of Hudson entered into a Job Creation Grant agreement with Beauty Systems, LLC as an incentive for the business to invest in the community. Subsequently Council adopted Resolution No. 14-158 calling for a modification of said agreement, reducing the grant from 35% to 25% for the remainder of the 5-year term. Because the company has made the decision to close its Hudson office, the Tax Incentive Review Council (TIRC), at its October 15, 2015, meeting recommended termination of this agreement.
Body
Legislative History
Resolution Nos. 10-105 and 14-158.
Purpose & Explanation
In conversation with representatives of Beauty Systems, LLC earlier this year, the City was advised that in an effort to reduce redundancy and streamline their organization the company made the decision to close its Hudson office. For that reason the Tax Incentive Review Council (TIRC) recommends to Council that the Job Creation Grant Agreement with Beauty Systems. LLC. be terminated.
Timing Considerations
None.
Fiscal Impact
Currently Budgeted
Supplemental Appropriation Required
X Appropriation Not Required.
Recommendation
Suggested Action
Staff recommends that Council accept the recommendation of the Tax Incentive Review Council (TIRC) that the Job Creation Grant Agreement with Beauty Systems, LLC be terminated.
Submitted by,
Jane Howington, City Manager
Charles E. Wiedie, Economic Development Director