Title
Request to Amend Existing Economic Development Agreement Between MEDC and Zah Group Dated December 5, 2013
Requested Action
Approve revisions to the existing Economic Development Agreement
Recommendation
Approve requested revisions to the existing Economic Development Agreement
Description/History
MEDC entered into an Economic Development Agreement with Zah Group, Inc. (Klein Tools) in 2010 which was subsequently amended in December 2013. Klein Tools has been meeting the benchmarks set forward in the amended agreement and exceeding the benchmark for capital investment until 2017. In 2017, Klein Tools did not meet the employment benchmark and their incentive payment was reduced according to the agreement. Due to this reduction, Klein Tools has been reevaluating their hiring strategy, taking into consideration the construction delay for the upcoming distribution center. Klein Tools has requested a modification in employment for years 2018-2021 as spelled out in the attached request. Part of the request that would be new to this revised agreement is the inclusion of full time temporary employees in the employee headcount. They have begun using a staffing agency for temp-to-hire employees as part of their hiring strategy.
Staff recommends approval of the requested revisions including the addition of temporary employees.
Justification
Klein Tools has been a community partner since they began moving their operations to Mansfield.
Funding Source
4A
Prepared By
Laurie Fleiner, MEDC, 817-728-3653