Subject: 21305/Kenco/IDB/Agmt-Taxes
Date: Thu, 4 May 1989 09:49:48 -0500


                               RESOLUTION NO. 21305
                 
                 
                  A RESOLUTION TO MAKE CERTAIN FINDINGS RELATING
                  TO THE KENCO GROUP, INC. PROJECT, TO DELEGATE
                  CERTAIN AUTHORITY TO THE INDUSTRIAL
                  DEVELOPMENT BOARD OF THE CITY OF CHATTANOOGA,
                  AND TO AUTHORIZE THE MAYOR TO ENTER INTO AND
                  EXECUTE AN AGREEMENT FOR PAYMENTS IN LIEU OF
                  AD VALOREM TAXES.
                 
                 
                           ___________________________
                 
                 
       	    	 WHEREAS, pursuant to Tennessee Code Annotated, Section
       7-53-305(b) the City of Chattanooga (the "City") is permitted to
       delegate to The Industrial Development Board of the City of
       Chattanooga (the "Corporation") the authority to negotiate and
       accept payments in lieu of ad valorem taxes from lessees of the
       Corporation upon a finding by the City that such payments are
       deemed to be in furtherance of the Corporation's public purposes; 

       and
       	    	 WHEREAS, Kenco Group, Inc. ("Kenco") is contemplating an
       upgrade of equipment in its manufacturing facility in 
Chattanooga,
       and, because of the substantial economic benefits to Chattanooga
       and Hamilton County resulting from the project, has asked the
       Corporation and the City to approve payments in lieu of ad 
valorem
       taxes; and
       	    	 WHEREAS, the City has determined that payments in lieu
       of ad valorem taxes from such a project would be in furtherance 
of
0C
       the Corporation's public purposes as set forth within Chapter 53
       of Title 7 of Tennessee Code Annotated;
       	    	 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
       THE CITY OF CHATTANOOGA, TENNESSEE, That we do hereby find that
       the Kenco project referenced above is in the best interest of the 

       City of Chattanooga, and that payments in lieu of ad valorem 
taxes
       derived therefrom would be in furtherance of the Corporation's
       public purposes; and
       	    	 BE IT FURTHER RESOLVED, That having made such a finding
       in this instance we do hereby delegate to the Corporation the
       authority to negotiate and accept payments in lieu of ad valorem
       taxes from Kenco, it being further noted that this delegation is
       for this purpose and this project only; and
       	    	 BE IT FURTHER RESOLVED, That the Mayor is hereby
       authorized to enter into an Agreement for Payments in Lieu of Ad
       Valorem Taxes.
      
       ADOPTED:	 March 18, 1997
      
       RLN:cjc