FLEXSTEEL INDUSTRIES, INC. (NASDAQ:FLXS) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
| Entry into a Material Definitive Agreement |
Between May 15 June 6, 2017, Flexsteel Industries, Inc.
(Flexsteel) entered into a series of interconnected agreements
with various government entities and an Iowa not-for-profit
organization regarding real estate property transactions in
Dubuque, Iowa.
As set forth below, the brief descriptions of the two significant
agreements do not purport to be complete and are qualified in
their entirety by reference to the full text of the agreements,
which are filed as Exhibit 10.1 and Exhibit 10.2 attached hereto.
The agreements were contingent upon each being approved by The
City of Dubuque (City), Dubuque County (County), Iowa Economic
Development Authority (IEDA) and Dubuque Initiatives
(Initiatives), a not-for-profit organization, prior to being
signed.
Development Agreement Dubuque Development South, Dubuque,
Iowa
On June 5, 2017, the City completed final approval of the
Development Agreement. Flexsteel will construct a 250,000 square
foot manufacturing facility at approximate cost of $25 million.
Flexsteel has agreed to maintain 200 full-time employees and will
receive tax incremental finance with an estimated value of $4.1
million over 10 years. Construction is to begin Fall 2017 and is
expected to take approximately 1 year to complete.
Redevelopment Agreement Dubuque Operations
On June 5, 2017, the City approved the final agreements required
for the Redevelopment Agreement between Flexsteel, the City and
Initiatives. Under the terms of the Agreement Flexsteel will
donate approximately 43 acres of land and buildings with nominal
net book value in Dubuque, Iowa to Initiatives and will
contribute $2,660,000 toward demolition and above ground
remediation following acceptance of the donation by Initiatives.
The City and County will contribute $2,660,000 toward demolition
and remediation. Flexsteel will be responsible for all subsurface
remediation to prepare the ground for light industrial use, the
cost of which is indeterminable at this time. Initiatives will
pursue additional grants and funding for the redevelopment
project.
| Item 9.01 | Financial Statements and Exhibits. |
(a)Not applicable
(b)Not applicable
(c)Not applicable
(d)Exhibits
| Exhibit No. | Description |
| Exhibit 10.1 |
Development Agreement, dated as of June 5, 2017, among The City of Dubuque, Iowa and Flexsteel Industries, Inc. |
| Exhibit 10.2 |
Redevelopment Project Agreement, dated as of May 15, 2017, among The City of Dubuque, Iowa, Dubuque Initiatives and Flexsteel Industries, Inc. |
About FLEXSTEEL INDUSTRIES, INC. (NASDAQ:FLXS)
Flexsteel Industries, Inc. is a manufacturer, importer, marketer and distributor of residential and commercial upholstered and wood furniture products in the United States. The Company offers its products for contract under categories, such as hospitality, healthcare, senior living, government and commercial office. It offers furniture for common areas, guest rooms, dining areas, patient rooms, resident rooms, work spaces, reception areas, administrative and collaborative spaces. Its range of offering includes chairs, sofas, benches, ottomans, pillows, barstools, tables, headboards, group seating, desks & hutches, causeway collection, presentation boards, bookcases, recliners and storage. It also offers sectionals, reclining furniture, lift reclining furniture, media consoles, night stands and side tables, among others, for home. It offers various products for recreation, such as bucket seats, fold-n-tumble, dinette seating, helm seating and modular sectionals.