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HomeMy WebLinkAbout02-229 • Resolution No. 02-229 RESOLUTION AUTHORIZING EXECUTION OF AN E-ELGIN INCENTIVE AGREEMENT WITH DAVID A. NOYES & COMPANY (6 Douglas Avenue) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Olufemi Folarin, Interim City Manager, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute an e-Elgin Incentive Agreement on behalf of the City of Elgin with David A. Noyes & Company for the property located at 6 Douglas Avenue, a copy of which is attached hereto and made a part hereof by reference . s/ Ed Schock Ed Schock, Mayor Presented: June 26, 2002 Adopted: June 26, 2002 Omnibus Vote : Yeas : 7 Nays : 0 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk • CITY OF ELGIN e-Elgin Incentive Agreement THIS AGREEMENT is made and entered into this ((T 4 day of , 2002 , by and between the City of Elgin, Illinois, a municipal corporation (hereinafter referred to as "City") , and David A. Noyes & Company, an Illinois Corporation, (hereinafter referred to as "Tenant" ) . WHEREAS, City has established an e-elgin Incentive Program (hereinafter referred to as "Program" ) for application within a certain area of the corporate limits of the City designated by City as appropriate for such application (hereinafter referred to as "Target Area" ) : and WHEREAS, Program is administered and funded by the City for purposes of promoting opportunities to further both economic growth and community development by taking advantage of the shift in the national economy toward e-commerce, the Internet and advances in telecommunication areas; and WHEREAS, pursuant to the Program, City has developed a program to offer assistance to property and business owner/tenant for expenses related to technology infrastructure improvements, moving expenses, advertising costs and infrastructure capital costs, a maximum of $5, 000 for installation fees, and $2, 500 for advertising expenses, pursuant to the criteria of the Program and as set forth herein; and WHEREAS, Owner owns at least 50% of the building, or is the tenant of a business related building (s) located within the project area, and owner desires to participate in Program pursuant to the terms and provisions of this Agreement . NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows : Section 1 . City shall pay to Tenant the sum of $1, 373 . 50 for improvements approved pursuant to the provisions of this Agreement (hereinafter referred to as "Eligible Costs" ) for the Structure referred to at Section 16 herein (hereinafter referred to as "Structure" ) . All parties hereto agree that all payments from the City provided for herein shall be made to David A. Noyes & Company, who shall provide the City with a full release upon receipt . 1 Section 2 . Eligible costs shall include labor, material and equipment costs, and such other costs as may be reasonably necessary for the execution and completion of the Improvements hereby provided for (hereinafter referred to as the "Work" ) , as designated from the proposal and price quotation approved by the City on May 8, 2002 , pursuant to the provisions of Section 3 herein, as identified in Exhibit A, attached hereto and made part hereof this Agreement . Section 3 . No Work shall be undertaken or shall be considered to constitute the basis for an Eligible Cost until the Proposal for such Work has been submitted to and approved in writing by the Project Review Team, consisting of the City' s Director of Economic Development and Business Services and the Technology Action Team, consisting of the following Member Organizations : Ameritech; Boys & Girls Club; Citizen Volunteers; City of Elgin; Community Crisis Center; Downtown Neighborhood Association; Elgin Area Chamber of Commerce; Elgin Community College; Elgin Recreation Center; Gail Borden Library; Judson College; Local businesses; NICOR; School District U-46; Sherman Hospital; State of Illinois; State Senator Rauschenberger' s office; and United Way. Such proposals shall include, but not be limited to, a date certain by which the Work shall be completed. All work shall be completed within 180 days from the date of the Agreement, unless Tenant obtains the written consent of the Project Review Team. Section 4 . The Project Review Team shall be permitted access to Structure to periodically review the progress of the Work. Such review shall not be in lieu of any other inspections which may otherwise by required by law or by City. Any and all portions of the work which do not, in the sole discretion of the Project Review Team, conform to the Plans within a time solely determined by the City or other applicable terms of this Agreement, shall be made to conform to the Plans and other applicable Terms of this Agreement upon written notice of the existence of such non-conforming portions . Section 5 . Upon completion of the Work, and upon final inspection and written approval by the Project Review Team and such other final inspections and approvals as may be required by law, Tenant shall submit to City: (1) an executed, notarized itemized contractor statement reflecting the total cost of the Work and each portion thereof, including, but not limited to, the cost of labor (whether provided by any contractor or subcontractor) , materials and equipment; (2) copies of all bids, contracts and invoices submitted, executed or incurred pursuant to the Work; and (3) reasonable proof of payment of all costs incurred pursuant to the Work. 2 Section 6 . City shall pay Tenant in accordance with Section 1 herein within thirty (30) days of tenant' s compliance with the provisions of Section 5 herein. In no event shall the amount paid Tenant exceed the amount specified in this Agreement nor shall the City pay the Tenant an amount greater than the cost specified in an invoice submitted by a contractor for any approved work set forth in Exhibit A. Section 7 . In the event Tenant fails to complete the Work in accordance with the terms of this Agreement, or otherwise breaches the terms of this Agreement, City may terminate this Agreement upon written notice of breach and termination to Tenant, and any and all financial or other obligations on the part of City shall cease and become null and void. Section 8 . Upon completion of the Work, and for the term of the Tenant' s occupancy of the property thereafter, or for a period of three (3) years thereafter, whichever is less, Tenant shall properly maintain the Work in its finished form, without alteration or change thereto, and shall not enter into any Agreement, or take any other steps to alter, change or remove such Work without prior written approval from this Project Review Team in its sole discretion. Section 9 . Nothing herein is intended to limit, restrict or prohibit the Tenant from undertaking any other work in or about the subject property which is unrelated to the improvement provided for in this Agreement . Section 10 . This Agreement shall be binding upon City, and upon Tenant, Tenant' s successors and assigns for a period of five (5) years from and after the date of completion and approval of the work. Tenant shall provide subsequent Tenant (s) of Structure with a copy of this Agreement . This Agreement shall run with the land underlying Structure . Section 11 . If Tenant does not own the underlying property for which work is being done, Tenant warrants and represents to City that Tenant has a lease at the location for which the work is proposed for a term of at least three (3) years . Tenant further warrants and represents that he has received authorization from all owners of the property for which work is to be done to accept funds under this program and to undertake the work. A copy of said written authorization is attached hereto as Exhibit B. Section 12 . To the fullest extent permitted by law, the Tenant agrees to indemnify, defend and hold harmless the City, its officers, employees, boards and commissions from and against any and all claims, suits, judgements, costs, attorney' s fees, damages or other relief arising out of or resulting from or through or alleged to arise out of any reckless or negligent acts or omissions of Tenant' s officers, employees or agents as a result of or in the 3 performance of this Agreement . In the event of any action against the City, its officers, employees, agents, boards or commissions covered by the foregoing duty to indemnify, defend and hold harmless, such action shall be defended by legal counsel of the City' s choosing. Section 13 . This Agreement is not intended and shall not be construed to create a partnership, joint venture or employment relationship between the parties hereto. Section 14 . This Agreement shall be subject to and governed by the laws of the State of Illinois . The parties hereto hereby agree that venue for any and all actions which may be brought by each and either of them to enforce the provisions of this Agreement shall be in the Circuit Court of Kane County, Illinois. Section 15 . The terms of this Agreement shall be severable. In the event that any of the terms or provisions of this Agreement are deemed to be void or otherwise unenforceable for any reason, the remainder of this Agreement shall remain in full force and effect . Section 16 . Tenant' s Name : David A. Noyes & Company Address : 6 Douglas Avenue City: Elgin State : IL Zip Code : 60120 Telephone Number: (847) 742-7360 Property Location of Structure : 6 Douglas Ave . Elgin, Illinois . Ownership Interest : Tenant Contact Person: Ronald E. Ainsworth Owner' s Name : Ted A. Meyers, Foote Meyers Mielke Flowers Address : 100 E. Chicago St . City: Elgin State : IL Zip Code: 60120 Telephone Number: (847) 741-7275 Property Location:6 Douglas Av. Ownership Interest : Trustee Owner' s Name : Address : City: State : Zip Code : Telephone Number: Property Location: Ownership Interest : Owner' s Name : Address : City: State : Zip Code : Telephone Number: Property Location: Ownership Interest : 4 • Section 17 . The City of Elgin e-Elgin Incentive Guidelines dated March 27, 2000, as such guidelines may be amended from time to time by the City, are hereby incorporated into this Agreement as if fully set forth herein. In the event of any conflict between the terms of such e-Elgin Incentive Guidelines and the terms of this Agreement, the terms of the e-Elgin Incentive Guidelines shall control . IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first appearing above . TENANT CITY OF E -- r By: 6100 - David A. Noyes & Company Oluf emi Fo ' . 'Interim City �e / �3,or�� �- Manager ATTEST: Dolonna Mecum, City Clerk 5 OFftC/ `A� �1' City of Elgin Agenda Item No. Hii¢ y p b E L I ad*.VII G May 3, 2002 #3 ECONOMIC GROWTH TO: Mayor and Members of the City Council FROM: Olufemi Folarin, Interim City Manager SUBJECT: e-elgin Incentive Grant Program Application From David A. Noyes & Company, 6 Douglas Avenue PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information regarding an application from David A. Noyes & Company to participate in the e-elgin Incentive Program. rft. BACKGROUND In April of 2000, the Mayor and City Council approved the e-elgin Incentive Program. Assistance was provided for within the following areas : 1 . Capital Costs 2 . Line Service Fees 3 . Advertising Downtown commercial property owners and downtown business owners can qualify for up to 50% of capital costs not to exceed a total expenditure of $60, 000 ($30, 000 maximum City contribution) in funding for technology infrastructure improvements that include installation of new Category 5 or better wiring, upgrade to Category 5 or better wiring, backup power generators for technology equipment, or high-speed Internet access capabilities, including necessary hardware or other technology infrastructure improvements approved by the Technology Action Team and City Council . Eligible expenses do not include computer equipment, but could include routers for Digital Subscriber Service (DSL) service. High-tech businesses relocating to downtown Elgin and downtown- based technology companies that are growing and planning to remain in downtown Elgin are eligible for a 100% rebate of the service and installation fees associated with relocation costs for DSL and T-1 service, with a not-to-exceed limit of $5, 000 . e-elgin Incentive Grant, David A Noyes & Co. May 3, 2002 Page 2 Downtown commercial property owners and downtown businesses are eligible for up to $2 , 500 annually in co-op advertising funds when they promote e-elgin in their ads. This grant will pay for 25% of advertising placement costs, up to $2 , 500 annually. To qualify, ads must bear the e-elgin logo and tag line as provided by the Technology Action Team and ads must appear in newspapers and magazines of general distribution. Participation in the advertising assistance shall be reviewed on an annual basis by the program administrator. David A. Noyes & Company is currently located at 6 North Douglas Avenue in Elgin. The company is a financial services firm, functioning as spec brokers, insurance brokers, and financial planners . The equipment that is proposed to be installed is Category 5E wiring, which will constitute an upgrade to the latest standard of electrical wiring, to be used for data and voice transmission. The upgrade is necessary in order for the company' s business services to be maintained. Specifically, David A. Noyes & Company plans to expand their Elgin office by installing additional phone lines and r computers, and hiring additional employees . The Cat 5E wiring will also facilitate communications between the Elgin office and the firm' s Chicago office . The application from David A. Noyes & Company includes an initial cost estimate for the following costs : capital costs totaling $3, 845 for labor and materials to provide and install a new communication system consisting of cable, jacks, patch panels, and coaxial cable for connection to cable television service. Upon review by the Technology Action Team, it was determined that coaxial cable for television service is not an eligible cost under the e-elgin program. David A. Noyes was requested to obtain a revised quotation excluding the cost of cable . The revised . quotation totals $2 , 747 and includes the cost for labor and materials to provide and install a new communication system consisting of cable, jacks, and patch panels . This capital improvement is eligible for funding at 50% of total cost under the e-elgin program, resulting in a grant amount of $1, 373 . 50 if awarded. The award of a grant to David A. Noyes & Company would be the fifth grant funded through the e-elgin Incentive Program. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED Technology Action Team . . 4 e-elgin Incentive Grant, David A Noyes & Co. May 3, 2002 Page 3 CIPLTFINANCIAL IMPACT he total incentive amount would consist of 50% of the total cost of $2, 747 . 00, which equals $1, 373 . 50 . Expenses related to the e- elgin Incentive Program would be funded through account number 276- 0000-791 . 80-27, Economic Development Incentives. Sufficient funds exist in this account to cover the cost of this grant if it is awarded. A balance of $31, 680 .49 is available within this account . LEGAL IMPACT 01)0V/ An e-Elgin Incentive Agreement will need to be prepared. ALTERNATIVES 1 . Fund the proposed e-elgin Incentive application. 2 . Do not fund the proposed e-elgin Incentive application. RECOMMENDATION It is recommended that the Mayor and members of the City Council approve the application by David a. Noyes & Co. for participation in the e-elgin Incentive Program in the amount of $1, 373 . 50 . Respectfully submitted, C1W4:111411 _gb.... •.- Olufemi ;la/. Int_ im C M-nager RHM:bi Attachments emk Apr-25-02 0 8P 3:5YDavidiA Noyes & Co rttA n841 8114 J1 bU9O Y. Ul 01 • 1 r ,-- i9. Applicant Information _ U�o . 'of s r(o Name Ro tj E. �' N t Qoy c-cigrn ncendve rogram VP/ AP s Application Form Home Address 3t'}L)A'V // T L- City j.6//f) State i Zip 6TO/,)-3 Phone Y7 79.2-7--34141 2. Building or establishment for which the rebate is sought Street address (/' 1.�o Ob`--I AVE- Applicant is: Owner Tenant if tenant,what is term of lease?�_. , 3. Proposed use of program _ New Category 5 or better wiring Upgrade to Category S or better wiring _ Back up generator _ Iligh-speed Internet access hardcrase rill* — Moving expenses _ Advertising — Other technology infrastructure (please specify): 4. Cost Elements Capital Costs $013(47. (0 I Service Fees $ dvertisiag s___ - TnTAL COST t -7c1.77. 0 Statement of Understanding 10.The applicant (undersigned) agrees to comply with the guidelines and procedures of the e-elgin Incentives Program and the conceptual design and outline specifications as agreed to by the applicant and the application review team. II.The applicant understands that the applicant must submit detailed cost documentation and copies of any permits,bids, contracts and invoices and contractor's final waivers of lien upon completion of the approved improvements. Applicant's signature: 44`41 _ - / / Date: ;')/6—/0 2 NOTE: If the applicant is other than the owner, the following line must be completed: I certify that I, the owner of the property at ¶C0 h . Th&e s ( Trk do authorize the applicant to apply for a rebate under the e-elgin Incentive Program and to undertake the approved improvements. Owner's signature: �— Date: f Sr f c> �� • :ICtTY S-11 Return completed application form to: Raymond H.Moller Director of Economic Development and usiness Services 150 Dexter Court Elgin,IL 60120 FOR OFFICE USE ONLY ID ate application eceived: Application I.D. # : ' pplication fee paid: Yes No If yes: Check Cash ebate Approved Date: Rebate Denied Date: otal estimated project cost $ _ _ . Reason: - ercent applied for rebate $ otal amount of rebate $ I rogram Coordinator:_ Ray Moiler Elm 04050201 word doc Paget,:1 G. C. COMMUNICATIONS 6655 North Avondale Avenue CHICAGO IL 60631 773-467-4167 Fax 240-214-0456 PROPOSAL #04050201 APRIL 5, 2002 TO: Chris Aivaliotis David A. Noyes &Co. 208 South LaSalle Street Chicago IL 60604 RE: Elgin wiring G.C. Communications proposes to furnish and install new communication wiring in the Elgin branch office, as follows: System will consist of new Cat 5E jacks located per schedule following. rib* Each jack will have a separate Cat 5E home run four pair cable that will be terminated on a Cat 5E patch panel. Jacks will labeled with location number and color coded and patch panels will be clearly identified with location and color of each jack. Patch panels will be mounted on a six foot 19" relay rack secured to the floor. All material and workmanship will be fully warranted for one ful year. Each jack will be fully tested. SCHEDULE OF LOCATIONS AND QUANTITIES: LOC 1 Broker office LOC 2 Broker office LOC 3 Broker office LOC 4 Broker office LOC 5 Broker office LOC 6 Broker office LOC 7 Conference room The above seven locations to have three colored jacks. Ra� -Erin 04050201 word doc Paget Page two of proposal#04050201 LOC 8 Receptionist six jacks LOC 9 Staff position four jacks The relay rack will be floor mounted perpendicular to wall at existing data equipment location. The rack will have three (3) twenty four port patch panels, one for each color. The current data T1 from Ameritech will be relocated to a spare jack and identified. G.C. requests access to the property during weekend and evening hours and proposes to do the majority of work during those hours at no additional overtime charges and thereby not disturbing brokers and staff at work. The price for the wiring job as described is Two Thousand Seven Hundred Forty Seven Dollars ($2,747.00). Terms are fifty percent deposit with approval and balance upon completion. Submitted by G.C. Communications ACCEPTANCE: The above proposal is hereby accepted and authorization is given to proceed with material procurement and installation labor with payments to be made as scheduled. Authorizing signature Title Date