ECONOMIC DEVELOPMENT
AGREEMENT
This Agreement
is made this 14 th day of December, 2005,
by and between IsoRay Inc., a Minnesota corporation (hereinafter
referred to as “Developer”) and the Pocatello
Development Authority, an urban renewal agency formed under the
laws of the State of Idaho (hereinafter referred to as
“PDA”).
1.
Recitals
1.1 Developer represents that it intends to
construct within the city limits of the City of Pocatello a
manufacturing facility where Cesium 131 is inserted in titanium
capsules to be used in brachytherapy for certain cancer patients.
Developer will use the reactor facility located in Arco, Idaho to
produce the Cesium 131, but the decision to do so is contingent
upon test results which show that the irradiation process will
provide the product needed by the Developer in both quantity and
quality. Developer further represents that, contingent upon the
result of the testing, it has obtained preliminary approval to use
the reactor facility in such a manner and for such a purpose.
Developer is seeking funding for approximately half of the costs of
testing, including construction of the device required for
insertion of the testing sample.
1.2 Developer represents that the facility will
eventually employ up to 200 people, that the majority of these
positions will be professional or semi-professional, that
significant insurance benefits are provided to all employees, and
that the lowest salary is approximately double the current minimum
wage, all of which assertions are provided to indicate that the
jobs will be of significant positive impact to the local economy,
and thus meet the economic development mission of the
PDA.
1.3 PDA is a public body created as an urban
renewal agency pursuant to Idaho Code §50-2006, part of the
Idaho Urban Renewal Law of 1965. As an urban renewal agency
established by the City Council of the City of Pocatello, PDA is
charged with aiding and assisting economic development in the
Pocatello area, including assisting developments that will retain
and increase available jobs in the community; and is further
charged with encouraging such development by private enterprise;
all as more specifically provided in Idaho Code §§50-2002
and 50-2003, being part of the Idaho Urban Renewal Law, Idaho Code
§50-2902, being part of the Local Economic Development
Act.
1.4 Based upon the assertions and assurances
of the Developer, PDA has determined that the construction of a
manufacturing facility for the devices used to implant the Cesium
131 represents the type of development to which it may apply urban
renewal funds under the applicable statutes; and that the same will
promote economic development of the area, creation of jobs and an
increased tax base consistent with urban renewal laws. For that
reason, PDA has committed to provide $200,000.00 to Developer for
the testing project as described above, subject to the possibility
of repayment requirements as set out below.
1.5 By this Agreement, PDA and
