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HomeMy WebLinkAbout03-19 Resolution No. 03-19 RESOLUTION AUTHORIZING EXECUTION OF A DEVELOPMENT AGREEMENT WITH INNOTECH LABORATORIES INC. FOR THE DEVELOPMENT OF 2760 SPECTRUM DRIVE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Ed Schack, Mayor, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute an agreement on behalf of the City of Elgin with InnoTech Laboratories Inc. for the development of a manufacturing facility for the production and sales of its Inn Vision System at the property located at 2760 Spectrum Drive, a copy of which is attached hereto and made a part hereof by reference . BE IT FURTHER RESOLVED that Resolution No. 03-7 adopted January 8, 2003 authorizing an earlier version of this agreement be and is hereby repealed. s/ Ed Schock Ed Schock, Mayor Presented: January 22 , 2003 Adopted: January 22 , 2003 Omnibus Vote : Yeas : 7 Nays : 0 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk DEVELOPMENT AGREEMENT THIS DEVELOPMENT AGREEMENT is made and entered into this 8th day of January, 2003, by and between the CITY OF ELGIN, an Illinois municipal corporation (hereinafter referred to as the "City") ; and INNOTECH LABORATORIES INC. , an Illinois corporation (hereinafter referred to as "Developer") . WHEREAS, Developer has advised the City that it is considering initially leasing property in the Northwest Business Park, Elgin, Kane County, Illinois; and WHEREAS, the Developer has advised the City that after leasing property in the Northwest Business Park, it will then pursue the development of approximately 13. 386 acres in the Northwest Business Park, commonly known as 2760 Spectrum Drive, Elgin, Kane County, Illinois and legally described in Exhibit A to this agreement, or pursue the development of a similarly sized and configured parcel at such other suitable location within the City of Elgin, Illinois (the property legally described in Exhibit A and any such other suitable location within the City of Elgin, Illinois at which the Developer chooses to develop are hereafter referred to in this agreements as the "Subject Property") ; and WHEREAS, the Developer is comprised of top research scientists and engineers for the purpose of designing and manufacturing diagnostic equipment for use by the clinical research, forensic, and medical industries; and WHEREAS, the Developer has developed an innovative and revolutionary device for conducting biological specimen analysis as applied to research and forensic scientists, medical diagnostics, genomic research and agricultural development, such product being known as the "Inn Vision System" and being more particularly described in Exhibit B attached hereto; and WHEREAS, the Developer intends to develop the Subject Property with its corporate headquarters and production lines to provide for the production and sales of its Inn Vision System and at full production the development of the Subject Property will include a manufacturing facility of approximately 250, 000 square feet which will house 16 double production lines capable of producing almost 1 billion units per year (such proposed development of the Subject Property as more particularly described in Exhibit B attached hereto and Exhibit C attached hereto is hereinafter referred to as the "Subject Development") ; and WHEREAS, Developer, after consultations and negotiations with the City has determined to proceed with the Subject Development of the Subject Property; and WHEREAS, the Subject Development on the Subject Property is currently estimated to represent in land, building and equipment 2 improvements, a $100 million capital investment and it expected to result in the creation of at least 200 jobs in the City of Elgin by September 30, 2006; and WHEREAS, the Subject Development of the Subject Property would result in substantial increases in the City's tax base and provide new and additional employment opportunities in the City of Elgin; and WHEREAS, in order to provide for the continued development of the City, including the development of the Subject Property by the Developer, and in order to assist the Developer with the Subject Development of the Subject Property, the City has applied to and has obtained a grant from the State of Illinois Department of Commerce and Community Affairs in the amount of $350, 000 pursuant to a Grant Agreement between the City of Elgin and the State of Illinois Department of Commerce and Community Affairs, a copy of such Grant Agreement being attached hereto as Exhibit C (such Grant Agreement between the City and the State of Illinois Department of Commerce and Community Affairs is hereinafter referred to as the "Subject Grant Agreement") ; and WHEREAS, the City has agreed to pass through the grant from the State of Illinois Department of Commerce and Community Affairs in the amount of $350, 000 to the Developer according to the terms and conditions of this Agreement; and 3 WHEREAS, the City of Elgin is a home rule unit authorized to exercise any power and perform any function pertaining to its government and affairs; and WHEREAS, the economic development initiatives to be passed on by the City from the State of Illinois Department of Commerce and Community Affairs resulting in significant increases in the City of Elgin' s tax base and employment opportunities within the City of Elgin are matters pertaining to the government and affairs of the City; and NOW, THEREFORE, for and in consideration of the mutual undertakings as set forth herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 1. The foregoing recitals are incorporated into this agreement in their entirety. 2. That the Developer agrees to and shall develop the Subject Property with the Subject Development as described herein and as more particularly described in Exhibits B and C attached hereto. Developer shall initially lease and occupy property in the Northwest Business Park, Elgin, Illinois and shall use its reasonable best efforts to commence production in the City of Elgin by September 30, 2004, and thereafter shall use its reasonable best efforts to complete the Subject Development of the Subject Property on or about 4 September 30, 2007 . Developer and Developer' s Subject Development of the Subject Property shall also otherwise comply with all of the terms and requirements of the Subject Grant Agreement between the State of Illinois Department of Commerce and Community Affairs and the City of Elgin, a copy of which is attached hereto as Exhibit C. 3. That in consideration of Developer' s developing the Subject Property with the Subject Development as provided for in this Agreement, the City agrees to pay to the Developer a grant in the amount of $350, 000 paid to the City by the State of Illinois Department of Commerce and Community Affairs pursuant to the Subject Grant Agreement attached hereto as Exhibit C. Provided the City has first received the grant of $350, 000 from the State of Illinois Department of Commerce and Community Affairs pursuant to the Subject Grant Agreement, the City shall pay to the Developer such grant in the amount of $350, 000 by January 15, 2003. The Developer agrees to use such funds for the purposes set forth in the Subject Grant Agreement. It is further expressly agreed and understood by the parties hereto that the City' s sole and only development assistance and/or monetary or financial contribution for the Subject Development on the Subject Property shall be the payment of the $350, 000 of grant funds received by the City from the State of Illinois Department of Commerce and Community Affairs pursuant to the Subject Grant Agreement attached hereto as Exhibit C and that the City shall have 5 no other responsibility for any other costs or expenses relating to the Subject Development on the Subject Property. Nothing in this agreement shall preclude Developer from seeking additional economic or development incentives from the City in addition to the funds provided in the Subject Grant Agreement. 4 . That Developer shall continue with its operations at the Subject Development on the Subject Property for a period of not less than ten (10) years following Developer completing, occupying and commencing operations of the Subject Development on the Subject Property. 5. Brian Jones, a corporate officer of InnoTech, shall personally guarantee the repayment to the City of all grant funds disbursed to InnoTech under the Subject Grant Agreement in the event InnoTech fails to expend the grant funds in accordance with the provisions of "Part I, Budget" and "Part III, Scope of Work" of the Subject Grant Agreement. The personal guarantee of Brian Jones shall remain in effect until such time as InnoTech demonstrates to the City that InnoTech possesses sufficient assets to repay the grant funds to the City in the event the grant funds are required to be repaid under the terms and conditions of this agreement. The personal guaranty requirement of Brian Jones shall survive the expiration of this agreement. 6 6. That the parties understand and agree that the economic development assistance being provided by the City in the amount of $350, 000 as set forth herein is expressly contingent upon Developer' s development of the Subject Development on the Subject Property as set forth in this agreement. In the event the Developer fails to complete, occupy and commence operations of the Subject Development on the Subject Property as required in this agreement, and/or in the event Developer fails to provide for the creation and establishment of jobs at the Subject Development as required in this agreement, and/or in the event Developer fails to continue with its operation at the Subject Development on the Subject Property as required in the preceding paragraph 4 hereof, the parties understand and agree that the Developer shall reimburse the City in full the $350, 000 of grant funds distributed to the Developer under the economic development grants provided for in the preceding paragraph 3 hereof. 7. That this agreement shall not be deemed or construed to create an employment, joint venture, partnership or other agency relationship between the parties hereto. 8 . That all notices or other communications hereunder shall be made in writing and shall be deemed given if personally delivered, sent by overnight courier or mailed by registered or certified mail, return receipt requested, to the parties at the following addresses, or at such other addresses for a party as shall be specified by a 7 like notice and shall be deemed received on the date which said notice is hand delivered or the second business day following the date on which so mailed: TO THE CITY: TO THE DEVELOPER: City of Elgin InnoTech Laboratories Inc. 150 Dexter Court 4 N. Walkup Avenue Elgin, IL 60120-5555 Crystal Lake, IL 60014 Attention: City Manager 9. That the failure by a party to enforce any provision of this agreement against the other party shall not be deemed a waiver of the right to do so thereafter. 10. That this agreement may be modified or amended only in writing signed by both parties hereto, or their permitted successors or assigns, as the case may be. 11. That this agreement contains the entire agreement and understanding of the parties hereto with respect to the subject matter as set forth herein, all prior agreements and understandings having been merged herein and extinguished hereby. 12. That this agreement is and shall be deemed and construed to be a joint and collective work product of the City and Developer and, as such, this agreement shall not be construed against the other party, as the otherwise purported drafter of same, by any court of competent jurisdiction and in order to resolve any inconsistency, ambiguity, vagueness or conflict, if any, in the terms or provisions contained herein. 8 13. That the City and Developer agree that, in the event of a default by the other party, the other party shall, prior to taking any such action as may be available to it, provide written notice to the defaulting party stating that they are giving the defaulting party thirty (30) days within which to cure such default . If the default shall not be cured within the thirty (30) day period aforesaid, then the party giving such notice shall be permitted to avail itself of remedies to which it may be entitled under this agreement. 14. That notwithstanding any other provision of this agreement it is expressly agreed and understood by the Developer and the City that the development of the Subject Property by the Developer shall be in accordance and compliance with all applicable federal, state, city and other requirements of law. Developer shall also at its expense procure all permits and licenses, pay all charges and fees, and give all other notices necessary and incident to the due and lawful prosecution of the work necessary to provide for the development of the Subject Property as described in this agreement. 15. That this agreement is subject to and shall be governed by the laws of the State of Illinois. Venue for the resolution of any disputes or the enforcement of any rights pursuant to this agreement shall be in the Circuit Court of Kane County, Illinois. With the sole exception of an action to recover the monies the City has agreed to pay pursuant to the preceding Paragraph 4 hereof, and notwithstanding 9 anything else to the contrary in this agreement, no action shall be commenced by the Developer against the City for monetary damages. In the event any legal action is brought by the City for the enforcement of any of the obligations of Developer in this agreement and the City is the prevailing party in such action, the City shall also be entitled to recover from Developer reasonable interest and reasonable attorney' s fees. 16. That this agreement shall be binding on the parties hereto and their respective successors and permitted assigns. This agreement and the obligations herein may not be assigned without the express written consent of each of the parties hereto which consent may be withheld at the sole discretion of either of the parties hereto. 17. That upon request from the City the Developer shall provide the City reasonable data and records of Developer which documents Developer' s compliance with the requirements of this agreement. 18. That time is of the essence of this agreement. 19. That to the fullest extent permitted by law, Developer agrees to and shall indemnify, defend and hold harmless, the City, its officials, officers, employees, attorneys, agents, boards and commissions from and against any and all claims, suits, judgments, costs, attorneys fees, damages or other relief, including but not limited to worker' s compensation claims, in any way resulting from or arising out of or alleged to be resulting from or arising out of 10 negligent acts or omissions of the Developer in connection herewith, including negligence or omissions of employees, agents or subcontractors of the Developer arising out of the performance of this agreement, or in any way resulting from or arising out of or alleged to be resulting from or arising out of any violation and/or breach of the terms or provisions of this agreement by the Developer, including any violation and/or breach by employees, agents or subcontractors of the Developer. In the event of any action against the City, its officials, officers, employees, agents, attorneys, boards or commissions covered by the foregoing duty to indemnify, defend and hold harmless such actions shall be defended by legal counsel of the City' s choosing. 20. That notwithstanding anything to the contrary in this agreement, the terms and requirements of the Subject Grant Agreement between the State of Illinois Department of Commerce and Community Affairs and the City of Elgin are incorporated into this agreement by this reference and Developer and Developer' s Subject Development of the Subject Property shall comply with same. In the event of any conflict between the terms of this agreement and the terms of the Subject Grant Agreement between the State of Illinois Department of Commerce and Community and the City of Elgin, a copy of which is attached hereto as Exhibit C, the terms of the Subject Grant Agreement shall control. 11 IN WITNESS WHEREOF, the parties hereto have entered into and executed this agreement on the date and year first written above. CITY OF ELGIN, a municipal corporation BY 'i -% Ed Schock, Mayor Attest: ih4g__Ag- --- ----... Dolonna Mecum, City Clerk INNOTECH LABORATORIES INC. By -7 Title: / .-=5i�x/ BRIAN JONES (in his personal capacity) 7. �n -tea 12 12-27-02; 2:55PM; ;3039741 # 2/ 2 NORTHWEST BUSINESS PARK III LEGAL DESCRIPTION ALL OF LOTS 45 THROUGH 59 INCLUSIVE AND ALSO LOT 60 EXCEPT THE EAST 16.61 FEET THEREOF (AS MEASURED AT RIGHT ANGLES TO THE EAST LINE THEREOF) IN NORTHWEST BUSINESS PARK, BEING A SUBDIVISION OF THAT PART OF THE SOUTHWEST QUARTER AND THE SOUTHEAST QUARTER OF SECTION 19, TOWNSHIP 42 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN, AND ALSO LOTS 103 AND 104 IN NORTHWEST BUSINESS PARK RESUBDMSION NO. 1, BEING A RESUBDIVISION OF PARCELS "A" AND "B" IN SAID NORTHWEST BUSINESS PARK, ALL IN KANE COUNTY,ILLINOIS CONTAINING 13.386 ACRES OF LAND MORE OR LESS. EXHIBIT A C:\windows\TEMP\Temporary Internet Files\Content.TES\5OGN9TKI\LGL NWBPiii.doc&.ans 1 12/27/02 Background Inno Tech Laboratories, Inc. is comprised of top research scientists and engineers in the clinical/diagnostic and pharmaceutical industries. The company has developed a new method of conducting research. The innovative device is a revolutionary new method of conducting biological specimen analysis as applied to research and forensic sciences, medical diagnostics, genomic research, and agricultural development. There are two primary products. The reader system (Inn Vision) is the platform device for automating the loading and operating of a sample. The cassette (Inn Sert) is a self- contained, miniature laboratory processing unit. The Inn Vision system has the capability of automatically loading and processing multiple reagents and samples concurrently. The process generates real-time analysis of biological specimens while significantly reducing costs, eliminating most of the contamination risks, reducing the handling and disposing of biohazards, and increasing accuracy. The company has designed a state-of-the-art manufacturing process to insure strict compliance with quality production. At full production the proposed 250,000 square foot manufacturing facility will house sixteen production lines capable of producing approximately one billion units per year. The placement of this operation in Elgin, IL will result in significant economic benefits to the City as well as the State of Illinois. Financing Financing for the company will be scheduled as follows: PHASE ACTIVITY COST Phase I Prototype Validation $ 300,000 Phase II Operations Start-up/ $12,000,000 Tooling/Pre-production Phase III Post Production/Additional $15,000,000 or less Production Lines The timing for the three phases is anticipated to run fifteen (15) months. Phase I was funded in July, 2002. Phase II is anticipated to commence in the fourth quarter of 2002. In addition to the $350,000 DCCA Grant, the company will participate in STEP program which provides low interest bank financing assistance. EXHIBIT B Dec-16-2002 02:44pm FrarDCCA IL FIRST 217-557-9883 1-769 P.005/029 F-142 STATE OF ILLINOIS DEPARTMENT OF COMMERCE AND COMMUNITY AFFAIRS Notice of •Grant Award No. 03-120696 LEGISLATIVE ADD ONS This Grant Agreement (hereinafter referred to as the "Agreement") is entered into between the Illinois Department of Commerce and Community Affairs (hereinafter referred to as the "Department") and City of Elgin • (hereinafter referred to as the "Grantee) " . Subject to terms and conditions of this Agreement, the Department agrees to rrovidela Grant in an amount not to exceed $350,000.00 to the Grantee. Subject to the execution of this Agreement by both parties, ! the Grantee is hereby authorized to incur costs against this I Agreement from the beginning date of 11/01/2002 through the ending date of 10/31/2004 . The Grantee hereby agrees to use the funds ; provided under the Agreement for the purposes set forth herein and agrees to comply with all terms of this Agreement. This Agreement includes the following sections, all of which are incorporated into and made part of this Agreement : Part: I. Budget II. Special Grant Conditions III. Scope of Work IV. Program Terms and Conditions V. General Provisions VI . Required Certifications Under penalties ,of perjury, the undersigned certifies that the name, taxpayer information number and legal status listed below are correct. If you are an individual, enter your name and SSN as it appear on your Social Security 'Card. If completing this certification for a sole proprietorship, enter the owner's name followed by the name of the business and the owner's SSN. For all other entities, enter the name of the entity (as used to apply for the entity's BIN) and the EIN. Name: City of Elgin Taxpayer Identification Number: SSN/EIN: 366005862 12/16/2002 11:56:13 - 1 - • EXHIBIT Dec-16-2002 02:44pm •Froar-DCCA IL FIRST 217-557-9883 1-769 P.006/029 F-142 Legal Status (check one) : Individual Government entity Owner of sole proprietorship Nonresident alien individual Partnership Estate or legal trust Tax-exempt hospital or Foreign corporation, extended care facility partnership estate or trust Corporation providing or Other - not-for-profit billing medical and/or organization: health care' services Corporation NOT providing or Other: billing medical and/or health care services j . The Grantee acknowledges that the individual signing below is authorized to execute this Agreement and that such signature constitutes the acceptance of this Agreement. GRANTEE: City of Elgin BY: -.1M2AMPAedralk-mL_ Signature Print or Type STATE OF ILLINOIS DEPARTMENT OF COMMERCE AND COMMUNITY AFFAIRS By: Joseph P. Hannon, Acting Director Date Grantee Address: Please indicate any changes below 150 Dexter Court Elgin, IL 60120-5555 Auth Signator: Ed Schock Phone: (847) 931 - 5930 • • The following is designated as administrator for the Grantee: • Auth Signator: Phone: 12/16/2002 11:56:13 - 2 - • PARTI BUDGET 03-120696 Budget Item State Grant Personnel $101,877 Fringe Benefits $13,644 Equipment $25,000 Rent/Utilities $10,000 r Contractual/Consultant $10,000 rV Other $189,479 Total $350,000 Dec-16-2002 02:45pm From-DCCA IL FIRST 217-557-9883 T-769 P.006/029 F-142 PART I1-Al SPECIAL GRANT CONDITIONS (GOVERNMENTAL ENTITIES) (Advanced) • 2.1 AUDIT REQUIREMENM The Grantee is required to have an audit conducted as provide in Part V, Section 5.4C, Audit Requirements. The audit must include ;a Revenue (Receipt) and Expenditure Statement comparing budgeted amounts with actual for this grant. The audit must also include a compliance:component which covers, at a minimum, the following items: • did the Grantee complete the activities described the Scope of Work (Part Ill) within the Grant Term • did the Grantee obtain prior written approvals from the Department for material changes from the performance of the zictivilies described in the Scope of Work (Part III) • did the Grantee expend grant funds within the grant period specified in the Notice of Grant Award • did the Grantee adhere to the grant Budget (Part I); if not, variances should be identified • did the Grantee obtain prior written approvals from the: Department for any material variances in its expenditure of grant funds • did the Grantee adequately account for receipts and expenditures of grant funds • if applicable, did the Grantee return grant funds to the Department in accordance with the provisions of the Grant Agreement • • are amounts reported in the Grantee's closeout package traceable to its general ledger • The Grantee is not required to have an audit conducted as a condition of this Grant Agreement; however, if the Grantee receives during the tgrm of this Grant Agreement(or has previously received),.additional grants from the State of Illinois for the project described in Part ill hereof, the Department may require the Grantee to have an audit conducted as provided in Part V, Section 5.4C(aXiv) hereof. • • , Dec-16-2002 02:46pm FroirDCCA IL FIRST 217-557-9883 T-769 P.009/022 F-142 2.2 PROJECTS REQUIRING EXTERNAL SIGN-OFFS. • (a) Pursuant to applicable statute(s), this grant requires sign-off by the following State agency(ies). The status of the sign-off is indicated as of the date the grant is sent to the Grantee for execution: AGENCY SIGN-OFF SIGN-OFF RECEIVED OUTSTANDING Illinois Historic Preservation Agency Illinois Dept. of Agriculture Illinois Dept. of Natural Resources NONE APPLICABLE While any external sign•off is outstanding, the provisions of Exhibit 1 apply with respect to the disbursement of funds under this grant. NOTE: The fact that a sign-off has been received in no way relieves the Grantee of its obligation to comply with any conditions or requirements conveyed by the applicable agency(ies) ,in conjunction with the issuance of the sign-off for the project funded under this Agreement. (b) For pt;ojects subject to review-by the Illinois Environmental Protection;Agency, the Grantee must, prior to construction, obtain a construction permit or "authorization to construct" from the IEPA pursuant to the provisions of the Environmental Protection Act, 415 ILCS 5/1 at seq. 2.3 PAYMENT PROVISIONS: PRIOR INCURRED COSTS. The Department shall authorize the State Comptroller's Office to disburse payment of the grant funds as follows: NV percent ( Ice %) of the grant award will be authorized for disbursement upon the Department's execution of this Agreement. If the amount set forth herein is less than 100% of the grant award, the disbursement schedule for the balance Of the grant award is attached hereto as Exhibit 3. If external sign•offs are indicated in Section 2.2, above, disbursement of grant funds (whether adhfance or scheduled) are subject to the restrictions set forth in Exhibit 1. Upon receipt of all required sign offs, the Department's Accounting Division will be notified to disburse grant funds in accordance with the disbursement method indicated herein. Note: The Department reserves the right to adjust the disbur:.ement schedule set forth above. Reimbursement of costs incurred by the Grantee prior to the Beginning Date specified in the'Notice of Grant Award requires the approval of the:. Department. Such costs must be clearly identified in Part I hereof. 2.4 PROJECT COMPLETION DATE. The Project Completion Datc for this Grant is as indicated below: Dec-16-2002 02:46pm ,FrarDCCA IL FIRST 217-557-9883 T-769 P.010/029 F-142 • Notwithstanding the end date stated in the Notice of Grant Award, the project shall be deemed complete when all activities described iii Part III hereof have been fully performed and grant funds have been expended or legally obligated by the Grantee for such activities pursuant to Parts I and III hereof. Grantee shall notify the Department of the Project Completion Date through the submittal of a letter to the Grant manager stating the Project 'Completion Date. The Project Completion Date for this Grant is the end date stated in the Notice of Grant Award. • 2.5 REPORTING REQUIREMENTS. In addition to any other do';uments specified in this Agreement, the Grantee must submit the following reports and information in accordance with the provisions hereof. (a) Status/Expense reports. Grantee shall submit status/expense :reports as indicated below. Quarterly Expense Reports: The Grantee shall submit Quarterly Expense Reports in the format provided by the Department. Reports shall be submitted quarterly through the Project Completion Date, except where Grantee is directed otherwise in the Close-out Package instructions; (b) Close-out Package. The Close-out Package described in Section 5.4 hereof is due 45 days following the end date stated in the Notice of Grant Award. Grantee shall submit the Close-out Package (consisting of a Final Status Report, a Firial Expense Report, and a Close-out Report) in the format provided by the Department, This package shall summarize expenditure of the grant funds and activities completed during the grant term. The Grantee's failure to comply with the Close-out requirements set forth herein and in Section 5.4 shall be considered a material breach of the performance required by this Agreement and may be the basis to initiate proceedings to recover all funds disbursed to the Grantee. (c) mammal Information. Upon request by the Department the Grantee shall, within 10 business days of its receipt of such a request, submit additional written reports regarding the Project, including, but not limited tc. materials sufficient to document information provided by the Grantee. (d) Submittal of Reports. Submittal of reports and documentation required under Section 2.5 should be submitted to the individual identified in Exhibit 2 hereto. 2.6 FUNDING LIMITATIONS/RESTRICTIONS. The Grantee hereby: expressly acknowledges and agrees to the following provisions: (a) The grant awarded pursuant to this Agreement is a one-time award. Tlhe State is not obligated to provide funding in subsequent State of Illinois fiscal years for the project funded by this grant. • • Dec-16-2002 02:47pm Fro,-DCCA IL FIRST 217-557-9883 T-769 P.011/029 F-142 • (b) Funding provided under this Agreement shall not be used to perform pr to further the performance of sectarian activities. (c) Without the express written consent of the Department, no grant funds (tor property purchased with grant funds may be disbursed or conveyed respectively, to, On behalf of, or for the benefit of, any registered lobbyist or family member of such lobbyist, as the term is defined in the Lobbyist Registration Act (25 ILCS 170/1 et seq.). 2.7 OPPORTUNITIES FOR MINORITY. FEMALE AND DISABLED PERSONS. Grantee shall use good faith efforts to recruit, develop and extend employment and contracting opportunities to women, minorities, and disabled persons from funds received under this grant. Nothing herein shall be deemed to modify or negate any requirement of the Business Enterprise for Minorities, Females and Persons with Disa biiities Pict (30 ILCS 575/1) or any other provision of this Grant Agreement. 2.8 MULTIPLE QR,ANT AWARDS. If the Grantee was previously awardecil a grant by the Department to fund the project described in Part III hereof, the Department may, pursuant to Section 5.7(c), unilaterally revise Parts I and III of the previously executed Grant Agreement to accurately reflect all project activities and the multiple funding sources therefor. If the Grantee receives additional grants to fund the project described in Part III hereof subsequent to the execution of this Agreement,iPerts I and III for said grant(s) will be developed to reflect all project activities and the multiple funding sources therefor. 2.9 FUNDING ACKNOWLEDGMENT. If requested by the Department, i;he Grantee shall post signs at the project site or affix signs/decals to equipment purchased with grant funds, which acknowledge the State as providing funds for the project; Signs not provided by. the Department must be approved by the Department prior to pasting. 2.10 TERMINATION FOR SAUSE. Grantee's failure to comply with any of the terms set forth in this Grant Agreement, shall be a sufficient basis to suspend or terminate this Agreement and seek recovery of all grant funds disbursed to the Grantee. failure to comply with the terms of this Grant Agreement shall also be a sufficient basis to suspend or terminate any other grant(s),Issued to the Grantee by the Department and to reject future grant requests for the Grantee. 2.11 ELQQA.L3TATE AND LOC Si TAX UABIIITlES: STATL AGEN0 P. .I,NQUEN IES. The Grantee is required to comply with all federal, state and local laws, including but not limited to the filing of any and all applicable tax returns. In the event that a grantee is delinquent in filing and/or paying any federal, state and/or local taxes, the Department shall disburse grant funds only if the' Grantee entfrs into an installment payment agreement with said tax authority and remains in good standing therewith. grantee is required to tender a copy of any such installment payment agreement to the Department. In no event may Grantee utilize grant funds to discharge outstanding tax liabilities or other debts owed to any governmental unit. The execution of this Grant,Agreement by the Grantee is its certification that (I) it is current as to the filing and payment of any federal, state and/or local taxes applicable to Grantee; and • • (ii) it Is not delinquent in its payment of moneys owed to any federal, state, or local unit of government. THE UNDERSIGNED IS AUTHORIZED ON BEHALF OF GRANTEE TO, AND HEREBY DOES, SPECIFICALLY ACKNOWLEDGE AND AGREE TO COMPLY WITH ALL SPECIAL GRANT CONDITIONS REFERENCED HEREIN. BY: TITLE: /17.49,/0/? DATE: 42/3y°Z PART III SCOPE OF WORK 03-120696 Section 1. Public Benefit The Grantee is a governmental entity serving a population of 97,000 residents. To encourage economic development, the Grantee will use grant funds to assist InnoTech Laboratories, Inc. (InnoTech)for the final design, construction, testing, and validation of an "In Vitro" diagnostic device. Specifically, grant funds will be disbursed to InnoTech for operating expenses related to their operation in Elgin, Illinois. InnoTech is comprised of top research scientists and engineers from the clinical/diagnostic and pharmaceutical industries. The company has developed a new method of research. The innovative device is a revolutionary new method for conducting biological specimen analysis as applied to research and forensic sciences, medical diagnostics, genomic research, and agricultural development. There are two primary research products. The reader system (Inn Vision) is the platform device for automating the loading and operating of a sample. The cassette (Inn Seri) is a self-contained, miniature laboratory processing unit. The Inn Vision system has the capability of automatically loading and processing multiple reagents and samples concurrently. The process generates real-time analysis of biological specimens while significantly reducing costs, eliminating most of the contamination risks, reducing the handling and disposing of biohazards, and increasing accuracy. The company has designed a state-of- the-art manufacturing process to ensure strict compliance with quality production. At full production the proposed 250,000 square foot manufacturing facility will house sixteen double production lines capable of producing approximately one billion units per year. The location of InnoTech Laboratories, Inc. in Elgin, Illinois will result in significant economic benefits to the City as well as the State of Illinois. It is anticipated that in just a few years, InnoTech will employ more than 1,000 people, with an annual salary base and benefits totaling more than $70,000,000 and annual taxes including state income, payroll and real estate totaling more than $300,000,000. Section 2. Grant Tasks 2.1 The Grantee shall act as fiscal agent for purposes of disbursement of funds provided under this Grant to InnoTech. In order to ensure performance required under this Grant, Grantee shall, prior to the disbursement of any funds to InnoTech, enter into an appropriate contractual agreement with InnoTech which specifically includes the following provisions: 2.1.1 InnoTech shall expend Grant funds only in accordance with Part I, Budget and shall render the performance specified in Part III, Scope of Work. Expenditures will include personnel; fringe benefits; the purchase of office equipment and supplies that may include but not be limited to, business computer hardware, various software applications, telecommunications equipment, office furniture, and minimal laboratory testing equipment; rent and utilities for a temporary facility during the construction of the permanent manufacturing facility; contractual/consultants which represents the estimated expense to build molds that will be used to produce the cassettes; and a contingency related to prototype development. Job descriptions for personnel involved in this project are found in Attachment A. 2.1.2 Pursuant to Section 5.10F hereof, InnoTech shall be subject to all of the terms and conditions of this Grant Agreement. 1-11-03; 8:52AM; i ldcca legal ;217 7820038 tF 2/ 2 JAN-10-2003 FRI 01:41 P11 CITY OF ELGIN-LEGAL FAX NO. 1 847 931 5665 P. 03 2.1.3 Pursuant to Section 2.5 hereof, Inn°Tech shall be directly responsible for complying with all reporting requirements. 2.1.4 The agreement between Grantee and Inn°Tech shall require a personal guarantee from Brian Jones guaranteeing repayment to the Grantee of all grant funds disbursed to Inn°Tech under this Grant Agreement in the event Innotech fails to expend the grant funds m accordance with the provisions of"Part I, Budget"and"Part III, Scope of Work" of this Grant Agreement. Grantee's contractual agreement with InnoTech shall specify that the personal guaranty requirements set forth in this Grant Agreement sur- vive the expiration of this Grant Agreement. 2.1.5 Grantee's contractual agreement with InnoTech shall specify: 1. That the grant funds shall be repaid to Grantee in the event any of the following events occur. A. InnoTech fails to commence production in Elgin by Septem- ber 30, 2004;or B. Inn°Tech fails to create at least 200 jobs in Elgin by Septem- ber 30, 2006;and 2. The personal guarantee of Brian Jones shall remain in effect until such time as InnoTech demonstrates to the Grantee that InnoTech pos- sesses sufficient assets to repay the grant funds to the Grantee in the event the grant funds are required to be repaid under the terms and conditions of this Grant Agreement and InnoTech's contractual agree- ment with the Grantee. 2.2 The Grantee adcnowledges that,the Department shall have legal recourse to the Grantee regarding its and InnoTech's compliance with provisions of this Grant Agree- ment, including but not limited to proper expenditure of grant funds, compliance with re- porting requirements, compliance with audit requirements, record retention require- ments and all of the certifications set forth in Part VI hereof. 2.3 The Grantee agrees that any funds it receives in repayment (or recovery) of funds provided under this Grant Agreement shaN be used solely for infrastructure im- provements, including but not limited to planning, construction, reconstruction, equip- ment, utilities, vehicles and all costs associated mill economic development, community programs, educational programs, public health and public safety consistent with the ap- propriate authorizing the award of this grant. Grantee shall comply with the require- ments of this grant agreement relative to fiscal management and accounting for all such expenditures. asqk.-no""P/y,A6( Y1116 APPROVED: for the Illinois Department of Commerce and Community Affairs APPROVED; the City of Elgin a -- Dec-16-2002 02:49pm FrarDCCA IL FIRST 217-557-9863 T-769 P.015/029 F-142 Chief Executive Officer I President Develops primary goals,operating plans,policies,and short and long-range objectives for the organization,Implements these objectives following Board of Directors'approval,Directs and coordinates activities to achieve profit and return on capital. Establisnes organizational structure and delegates authority to subordinates.Leads the organization towards objectives,meets with and advises other executives and reviews results of business operations, Determines action plans to meet needs of shareholders. Represents organization to financial community, major customers,government agencies,shareholders,and the public. Chief Financial officer Directs the overall financial plans and accounting practices of the organization.Oversiees treasury, accounting,budget, income tax and audit activities of the organization.Oversees fnancial'and accounting system controls and standards and ensures timely financial and statistical reports for management and/or Board of Directors use.This is the top finance and accounting position for the organization. Marketing Director Overseas development of policies,procedures and objectives for mediating and selling the organization's products and services.Oversees product/service development,pricing);marjceting budgets,`and sales objectives. Directs sales force,marketing staff and/or distributors. Provides • marketing expertise to executive management team. Operations Director Manages organization operations by directing and coordinating activities consistent with established goals,objectives,and polides.Follows direction set by Chief Executive Officer and Board of Directors,Implement*programs to ensure attainment of buelneas plan for growth and profit. Provides direction and structure for operating unite.May participate In developirr g policy and strategic plans. MIS Direttor Directs IS operations Including computer operations,technical support,systems analysis and programming.May also direct database management,telecommunications, IS training and microcomputer technology,Establishes technical priorities,standards,and procedures.Ensures sufficient systems capacity for organizational needs. • Quality Control Director Charged With investigating regulated activities to assure compliance with federal,state/,or municipal laws: Interprets and clarifies federal,state,or municipal laws.Represents agency at meetings,conventions,and other forums to promote and explain agency objectives.Consults with other governmental agencies,business community, and private organi cationsio resolve problems,Plans and directs surveys and research studies to ensure effective program!operation and to establish or modify standards. Prepares or directs preparation and release of reports. studies, Ind other publications relating to program trends and accomplishments. Participates,as member of management team,in formulating and establishing organizational policies and operating procedures for company and develops,implements, and coordinates, through support staff and lower echelon managers, product assurance program to prevent or etirninatedefects in new or existing products:Analyzes,evaluates,and presents information concerning factors,such as business situations, production capabilities,manufacturing problems, • economic trends, and design and development of new products for consideadon by o her members of management team.Reviews technical problems and procedures of departments and recommends solutions to problems or changes in procedures.Visits and confers with representatives of material and component vendors to obtain information related to supply quality, capacity of vendor to meet orders, and vendor quality standards.Confers with engineees about quality assurance of new products designed and manufactured products on market to rectify problems.Reviews technical publications,articles,and abstracts to stay abreast of toc finical developments in industry. Attachment A— page 1 • Doc-16-2002 02:50pe From-DCCA IL FIRST 217-55T-9883 T-T69 P.016/029 F-142 • • Scientist--Research A research scientist is responsible for research and development in collaboration with others on projects He or she makes detailed observations,analyzes data,and interprets results.Prepares technical reports,summaries,protocols, and quantitative analyses.An incumbent maintains familiarity with current scientific literature and contributes to the process of a project Within his or her scientific discipline, as well as investigating,creating,and developing new mathoris and technologies for project advancement. He or she may also be responsible for identifying patentable Inventions and acting as principal investigator in conducting his or her own experiments. May also be asked to participate in scientific conferences and contribute to scientific journals, Scientist-.Clinical Research • A clinical research administrator is responsible for clinical data entry and validation td ensure legibility;completeness,and consistency of data.He or she assists users with requests for clinical documents and is responsible for working with physicians and/or their staff to clarify any questionable information.He or she may be responsible for auditing internal patient files and studies and for assisting with the development and evaluation of clinical record documents. Scientist--Biochemical.Development A biochemical development scientist oversees the design and scaleup of processes,' instruments,and equipment from the laboratory through the pilot plant and manufacturing process,He or she assists the manufacturing operations in problem solving with regards to equipment and systems and participates in the design and start-up of new manufacturing facilities and equipment. He or she develops and recommends new process formulas and technologies to achieve cost effectiveness and product quality. Establishes operating equipment spegifications, improves manufacturing techniques,and is involved in new product scale-up,pro improvement,technology transfer,and process-validation activities.lie or;,he works with various departments to ensure that processes and designs are compatible for new product technology transfer and to establish future process and equipment automation technology. Mechanical Engineer Supervises a variety of mechanical engineering assignments. Oversees thin production, installation,operation,maintenance and repair of mechanical equipment,including centralized heat,gat water and steam systems. Requires a BS degree and a minimum of S yearhr, mechanical engineering experience. Chemical Engineer Designs equipment and develops processes for manufacturing chemicals and related products, Conducts research to develop new and improved chemical manufacturing processes.Requires BS in Engineering. Attachment A—. page 2 Dec-16-2002 02:50pm From-DCCA IL FIRST 217-557-9883 T-769 P.017/029 F-142 PART IV TERMS AND CONDITIONS GOVERNING GRANT (Governmental Entities) 4.1 APPLICABLE ME LIMITATIONS. (i) Compiption of Performance. All activities described in Part III hereof, which are chargeable to grant funds provided by this Agreement, must be completed by the grant period end date set forth in the Notice of Grant Award. (II) Expenditure of Grant Funds. All grant funds provided under this Agreement must be expended or legally obligated by the grant end date set forth in the Notice of Grant Award. Grant funds not expended by the•grant end date mu:A be returned to the Department in accordance with directions provided by the Department. 4.2 INTEREST ON GRANT FUNDS. The Grantee may be allowed to retain interest earned on grant funds awarded under this Agreement, provided that: (I) All interest 'earned must be accounted for and reported to the Department in the Grantee Close-Out Package described in Section 5.4(B) herein; and (ii) Interest may only be expended for activities which are identified in Parts I and 111 hereof. • 4.3 REFUNDS TO THE DEPARTMENT. Any refunds (unliquidated grunt balance, interest earned on grant funds, or ineligible/improper grant expenditures) due the Department shall be remitted by the Grantee upon demand and pursuant to instructions issued by the Department. 4.4 BUDGET/SCOPE OF WORK MODIFICATIONS. (I) Grant Budget (Part i). The Grantee must obtain prior written approval from the Department for any expenditures which materially vary from the expenditures set forth in Part 1 hereof. For purposes of this Agreement, "materially vary" means Any variance within the line items set forth in Part I which exceeds 10% of the amount established for that line item or any line item added or substituted for a line item in Part I hereof. (ii) Scope of Work (Part III). The Grantee must obtain prior written approval from the Department before changing any of the activities specified in Part III which are chargeable to this grant. Any revision to Part 111 which results in the performance of activities by the Grantee which are inconsistent with the purpose set'forth in the Appropriation authorizing the grant awarded under this Agreement are not permissible. 4.5 FISCAL R ECORDING/REPORTING REQUIREMENTS. The Grantee iS accountable for all funds disbursed under this grant. The Grantee's financial management system shall be structured to provide for accurate, current, and complete disclosure of the expenditure of all funds provided under this Agreement. The Grantee shall maintain effective control and accountability over all funds disbursed and equipment property, or Dec-16-2002 02:51pm 'Fran-DCCA IL FIRST 217-557-9863 T-769 P.018/029 F-142 • other assets acquired with grant funds. The Grantee shall keep records: sufficient to permit the tracing of funds to a level of expenditure adequata to insure that funds have been expended in accordance with the terms of this Agreement. 4.6 GRANT DELIVERABLES. The Grantee will submit the following Grant deliverables in accordance with the Grant Agreement provisions referenced herein: (i) Project'Status and Expense Reports, if applicable (Section 2.5) (ii) Financial Close-out Package (Section 5.4B); and (iii)Audit (if applicable)(Section 2.1 and Section 5.4C). 4.7 PROCUREMENT OF CONSTRUCTION AND PR()FES$IONAL SERVICES: ACQUISITION OF EQUIP . ENT OR LAND. The Grantee shall procure all construction and professional services, and acquire land, equipment and materials financed in whole or in part' with grant funds provided hereunder, through written, contractual agreement(s), which specify the rights and obligations of both parties relevant to the specified transaction. 4.8 DUE DILIGENCE IN EXPENDITURE OF FUNDS. Grantee shall ensure that grant funds are expended in accordance with the following principles: • (i) Grant expenditures should be made in accordance with generally accepted sound business practices, arms length bargaining, applicable Federal and State laws and regulations,'and the terms and conditions of this Agreement; (ii) Grant expenditures should not exceed the amount which would be incurred by a prudent person under the circumstances prevailing at the time the decision is made to incur the costs; and (iii) Grant expenditures should be consistent with generally accepted! accounting principles. • • • Dec-16-2002 02:51pm Fra-DCCA IL FIRST 217-557-9883 T-769 P.019/029 F-142 PART V GENERAL PROVISIONS 5.1 GRANTEE AUTHORITY; INDEPENDENCE OF GRANTEE PERSONNEL; GRANTOR AUl THOjtIT,GOVERNING LAW, A. Grantee Authority. The Grantee warrants that it is the real party in interest to this Agreement, that it is not acting for or on behalf of an undisclosed party, and that it possesses legal authority to apply for this grant and to execute the propc.sed program or project described in Part III hereof. Grantee's execution of this Agreement shall serve as its attestation that Grantee has read, understands and agrees to all provisions of this Agreement and to be bound thereby. Grantee further acknowledges thal the individual executing this agreement is authorized to do so on Grantee's behalf. B. ldoendence of Grantee Personnel. All technical, clerical, and ether personnel necessary for the performance required by this Agreement shall be employed, or contracted with, by Grantee, and shall In all respects be subject to the rules and regulations of Grantee governing its employees. Neither Grantee nor its personnel :;hall be considered to be the agents or employees of the Department. C. Grantor Authority. The Department and its payroll employees, when acting pursuant to this Agreement, are acting as State officials In their official capacity and not personally or as the agents of others. • D. Governing Law. This Grant is awarded in the State of Illinois for execution within the State of Illinois. This Agreement shall be governed by and construecl according to Illinois law as that law would be interpreted by an Illinois Court. Where there is no Illinois law on a particular subject or issue, then the applicable law will be applied as it would;be if interpreted and applied by an Illinois court. 5.2 SCOPE OF WQRK.. In consideration for the grant funds to be provided by the Department, the Grantee agrees to perform the project described in Part lil hereof and to prepare and submit to the Department the reports and other deliverables described in this Agreement. 5.3 FISCAL RESPONSIBILITIES. A. Non Appropriation Clause. Payments pursuant to this Agreement are subject to the availability of applicable Federal and State funding from the Department and their appropriation and authorized expenditure under state law. Obligations of the State will cease immediately without penalty or liability of further payment being required if i(1 any fiscal year that this Agreement is in effect the Illinois General Assembly or Federal fundirjg source fails to appropriate or otherwise make available sufficient funds for this grant. The Grantee hereby is given actual knowledge of the fact that pursuant to the State Finance Act, 30 ILCS 105/30, payments under this grant are contingent upon there) existing a valid appropriation therefor and that no officer shall contract any indebtedness on behalf of the State, or assume to bind the State in an amount in excess of the money appropriated, unless Dec-16-2002 02:52pm Frog-DCCA IL FIRST 217-557-9883 T-769 P.020/022 F-142 expressly authorized by law. If this is a multi-year grant, it is void by operation of law if the Department fails to obtain the requisite appropriation to pay the grant in any year in which this Agreement is in effect. B. Total AmuntaLcusiatjjmald, The Grantee expressly understands and'agrees that the total financial `obligation of the Department under this Agreement snail not exceed the total grant amount set forth on the Notice of Grant Award and the Grantee agrees expressly to fully complete the Scope of Work specified in this Agreement and all other obligations under this Agreement within the stated total consideration. C. DitataufSdantimpistignisi Payment to the Grantee under this Agreement shall be made payable,in the name of the Grantee and sent to the person and place specified in the Notice of Grant Award. The Grantee may change the person to whom payments are sent, or the place to which payments are sent by written notice to the Department signed by the Grantee. No such change or payment notice shall be binding upon the Department until ten (10) business days after actual receipt. 5.4 RECORDS,RETENTION Abp ACCESS TO RECORDS:PROJECT•Ct,OSEOUT; ACCOUNTING: AND AUDIT REQUIREMENTS. A. Records Betentlon. The Grantee is accountable for all funds received under this Agreement and shall maintain, for a minimum of three (3) years following the later of the expiration or termination of this Agreement, adequate books, records, and supporting documents to ,verify the amount, recipients and uses of all disbursements of funds passing in conjunction with this Agreement.. This Agreement and all books, records and supporting documents related hereto shall be available for inspection and audit by the Department, the Auditor General of the State of Illinois, or any of their duly authorized representatives, and the Grantee agrees to cooperate fully with any audit conducted by the Auditor:General or the Department. Grantee agrees to provide full access to all relevant rnaterialsand to provide copies of same upon request. Failure to maintain books, records and supporting documents required by this Section 5.4 shall establish a presumption in favor of the Department for the recovery of any funds paid by the Department under this Agreement for which adequate books, records and supporting documentation are not available to support their purported disbursement. If any of the services to be performed under this Agreement are subcontracted, the Grantee shall include in all subcontracts covering such services, a provision that the Department and the Auditor General of the State of Illinois, or any of their duly authorized representatives, will have full access to and the right to examine any pertinent books, documents, papers and records of any such subcontractor involving transactions related to this Agreement for a period of three(3) years from the later of the expiration or termination of this Agreement. B. Grant Closeout. In addition to any other reporting requirements specified in this Agreement, the Grantee shall complete and submit a final Grant Closeout Package on forms provided by the Department, within time limits established by thi: Department, after the expiration or termination of this Agreement. The Grantee must report on the expenditure of grant funds provided by the State, and if applicable, the Grantee's required matching funds. The Grantee is°responsible for taking the necessary steps to correct aiiy deficiencies disclosed • . Dec-16-2002 02:53pm FrarDCCA IL FIRST 217-55T-9883 T-T89 P.021/020 F-142 by such Grant Closeout Package, including such action as the Department, based on its review of the Grant Closeout Package, may direct. In accordance with the Illinois Grant Funds Recovery Act, 30 ILCS 71)5/1 et seq., the Grantee must, within 45 days of the expiration or termination of this Agreement, refund to the Department, any balance of funds which is unobligated at the end of the Grant term specified in the Notice'of Grant Award. For purposes of preparation of grant closeout forms, the determination of allowable expenditures and excess grant funds shall be based on the premise that the total Grantee compensation under this Agreement shall not exceed the amount specified in the Notice of Grant Award. C. Audit Requirements. If required by Part Ii of this Grant Agreeme-nt, the Grantee shall be required to have an audit conducted in accordance with the following terms: a. State Audit Requirements: (i) The audit shall be conducted by a certified public accountant who is licensed by the State of Illinois to conduct an audit in accordance with Generally Accepted Auditing Standards. (ii) Grant funds shall be included in the Grantee's annual audit, unless the Department authorizes the Grantee to have a grant-specific audit conducted. (iii) Upon completion of an audit, an audit report shall be issued and the Grantee shall provide the Department with a copy of such audit report (iv) The Grantee shall provide the Department with a copy of-an audit report within 30 days cif the Grantee's receipt of such audit report, but in no event:later than nine months following the end of the period for which the auait was performed. The Grantee shall send the audit report to the Department at the following address: Illinois Department of Commerce and Community Affairs Division of Audits 620 East Adams Springfield, IL 62701 D. Worker's Compensation Insurance. Social Security, Retirement apd Health Insurance Benefits, and Taxes. The Grantee shall provide Worker's Compensation insurance where the same is required and shall accept full responsibility for the payment of: unemployment insurance, premiums for Workers' Compensation, Social Security and retirement and health insurance benefits, as well as all income tax deduction and any other taxes or payroll deductions required by law for its employees who are performing services specified by this Agreement. 5.5 TERMINATION: SUSPENSION. • A. This Agreement may be terminated as follows: . Da-16-2002 02:53pm Frai-DCCA IL FIRST 217-557-9983 T-769 P.022/029 F-142 1. Due to Loss of Funding. Obligations of the State will cease immediately without penalty of further payment being required if in any fiscal year the Illinois General Assembly or Federal funding source fails to appropriate or otherwise make available sufficient funds for this Agreement. In the event the Department suffers such a loss of funding in frill or in part, the Department shall give the Grantee written notice which shall set forth the effective date of full or partial termination, or if a change in funding is required, setting forth the change in funding and the changes in the approved budget. 2. For Cause. If the Department determines that the Grantee has failed to comply with any of the terms, conditions or provisions of this Agreement, or any other Agreement executed by the Department and the Grantee, including any applicable rules or regulations, the Department may terminate this Agreement in whole or in part at any time before the expiration date of this Agreement. The Department shall notify the Grantee in writing of the reasons for the termination and the effective date of the termination. Grantee shall not incur any costs after the effective date of the termination. Payments made to the Grantee or recovery by the Department shall be in accord with the legal rights and liabilities of the parties. • In the event of termination for cause, Grantee shall also be subject to any other applicable provisions specified elsewhere in this Agreement. Termination for cause may render the Grantee ineligible for consideration for future grants from the Department. 3. For Convenience. The Department or the Grantee may terminate this Agreement in whole or in part when the Department and the Grantee agree that continuation of the program objectives would not produce beneficial results commensurate with the further expenditure of funds. The Department and the Grantee shall agree upon termination conditions including the effective date and, in the case of partial termination, the portion to be terminated. The Grantee shall not incur new obligations for the terminated portion after the effective date, and shall cancel a; many outstanding obligations as possible. The Department shall, allow full credit to the Grantee for the Department's share of the non-cancelled obligations, if properly incurred by the Grantee prior to termination. • B. Susgenslan. If the Grantee fails to comply with the specific conditions and/or general terms and conditions of this Agreement, the Department may, after written notice to the • Grantee, suspend this Agreement, withhold further payments and prohibit the Grantee from incurring additional obligations of grant funds, pending corrective action by the Grantee or a decision to terminate this Agreement. Department may determine to allow such necessary and proper costs which the Grantee could not reasonably avoid during the period of suspension provided that the Department agrees that such costs were .necessary and reasonable and incurred in accordance with the provisions of this Agreement. Section 5.6 INDEMNIFICATION. A. Non-governmental entities. The Grantee agrees to indemnify and hold the Department and/or the State of Illinois, and its officers, agents, or employees harmless from and against any and all claims, and actions, including but not limited tip, attorneys' fees, costs and Dec-16-2002 02:54pm 'From-DCCA IL FIRST 217-557-9863 T-769 P.023/020 F-142 interest, based upon and arising out of any services performed under this Agreement by the Grantee and , its officers, employees, agents, independent contractors, .subcontractors, subrecipients, volunteers, or other associates. The Grantee shall further indemnify and hold the Department and/or the State of Illinois and/or its officers, agents and employees harmless from and'against any and all liabilities, demands, claims, damages, suits costs, fees and expenses incident thereto, for injuries or death to persons and for loss or damage to or destruction of property because of negligence, intentional act:; or emissions on the part of Grantee, its , officers, employees, agents, independent contractors, subcontractors, subrecipients, volunteers or other associates, arising out of any services performed under this Agreement. • The Grantee further agrees to indemnify, save and hold harmless the Department, its officers, agents and employees against any liability, including costs and expenses associated with the violation of general, proprietary rights, copyrights or rights of privacy of third parties arising out of the publication, translation, reproduction, delivery, performance, use or disposition of any data developed or furnished under this Agreement or any libelous or any unlawful matter contained therein. B. GQyernmanl Xntities. In the event that the Grantee is a Governmental Entity, it will indemnify and hold harmless the Department as set out herein to the extent authorized by Federal and/or State constitutions(s) and/or laws. C. Notice. In the event that any demand or claim relating to the transactions or activities pursuant to this Agreement is made known to either party, the Department and/or the Grantee will notify the other party to this Agreement in writing in an expedient manner. 5.7 MODIFICATION BY OPERATION OF LAW: DISCRETIONARY MODIFICATIONS: BUDGET MODIFIAATIQNS• A. Modifications by Operation of taw. This Agreement is subject to such modifications as the Department determines may be required by changes in Federal or State law or regulations applicable to this Agreement. Any such required modification shall be incorporated into and be part of this Agreement as if fully set forth herein. The Department shall timely notify the Grantee of any pending implementation of or proposed amendment to such regulations of which it has notice. B. Budget Modification . Budget modifications shall be made in accordance with any applicable provisions as specified elsewhere in this Agreement. C. Discretionary Modifications. If either the Department or the Cirantee wishes to modify the terms of this Agreement other than as set forth in Sections A and B above, written notice of the proposed modification must be given to the other party. No modification will take effect until it is agreed to in writing by both the Department and the Grantee, except that if the Department notifies the Grantee in writing of a proposed modification without the prior written approval of the Grantee, failure of the Grantee to object in writing, specifying the reasons for the objections, within thirty (30) calendar days from the date of the Department's notice to the Grantee of such proposed modification, the modification will be deemed to be approved by the Grantee. The Department's notice to the Grantee shall contain the Grantee name, Grant Dec-16-2002 02:54pm #FrorDCCA IL FIRST 217-557-9883 T-769 P.024/029 F-142 number, modification number, purpose of the revision and signature of the Department's director. 5.8 CONFLICT OF INTEREST; !NTgREST OF PUBLIC OFFICIALS/EMPLOYEE:, BONUS(COMMMIQN PEQHIB1TE11: JIIRING OF STATE EMPLOYEES PROHIBITED. A. Conflict of Inter st_ The Grantee shall establish safeguards to prohibit officers, directors, agents, employees and family members from using positions of employment for a purpose that is, or gives the appearance of, being motivated by a desiro for a private gain for themselves or others, particularly those with whom they have family business or other ties. Safeguards, evidenced by rules or bylaws, shall be established to prohibf;t persons from engaging in actions which create or which appear to create a conflict of interest as described herein or in Section 2.6 of this Agreement. . i B. Interest of Public Officials/Employees. (i) Governmental Enf ty. if the Grantee is a governmental entity, the grantee certifies that no officer or employee of the Grantee and no member of its governing body and no other public official of the locality in which the program objectives will be carried oyt who exercises any functions 9r responsibilities in the review or approval of the undertaking or carrying out of such objectives shall participate in any decision relating to any contract negotiated under a program grant which affects his/her personal interest or the interest of any corporation, partnership or, association in which he/she is directly or Indirectly Interested, or has any financial interest, direct or indirect, in such contract or in the work to be performed under such contract. (ii) Nongovernmental Entity. If the Grantee is a nongovernmental entity, it shall comply with the provisions of Section 2.6 hereof relative to conflict of interest, Violations of this Section 5.8 (and 2.6 for non-governmental entities) may result in suspension or termination of this Agreement, and recovery of grant funds provided hereunder. Violators may also be criminally liable under other applicable State laws and subject to actions up to . and including felony prosecution. C. Nony5,Qr_C401115,010h Prohibited., The Grantee shall not pay any bonus or commission for the purpose of obtaining the grant awarded under this Agreement. D. Hiring State Employees Prohibited, No State officer or employee may be hired to perform services under this Agreement, or be paid with funds derived directly or indirectly through this grant without the written approval of the Department. 5.9 APPLICABLE STATUTES. A. Grantee Responsibility. All applicable Federal, State and local laws, rules and regulations governing the performance required by Grantee shall apply to thisAgreement and will be deemed to be included in this Agreement the same as though written herein in full. Grantee is responsible for ensuring compliance with all applicable laws, rules nd regulations, including, but not limited to those specifically referenced herein. Except where expressly Dec-16-2002 02:55pm From-DCCA IL FIRST 217-557-9883 7-769 P.025/029 F-142 • required by applicable laws and regulations, the Department shall not be responsible for monitoring Grantee's compliance. B. Land Trust/Beneficial Disclosure Acts 765 II.CS 405/2.1),. No grant award funds shall be paid to any trustee of a land trust, or any beneficiary or beneliciaries of a land trust, for any purpose relating to the land which is the subject of such trust, any interest in such land, improvements to such land or use of such land unless an affidavit is first filed with the Department identifying each beneficiary of the land trust by name and address and defining such interest therein. C. Historic Preser_yatton Act (2(1 ILCS 3420/1 et seg.). The Grantee will npt expend funds under this Agreement which result in the destruction, alteration, renovation, transfer or sale, or utilization of a historic property, structure or structures, or in the introduction of visual, audible or atmospheric elements to a historic property, structure or structures, which will result in the change in the character or use of any historic property. D. State of Illinois Discrimination Laws (775 ILCS 5/1-101. et stag,). In carrying out the performance required under this Agreement, the Grantee shall comply with all applicable provisions of the Illinois Human Rights Act, and rules and regulations promulgated by the Illinois Department of Human Rights, prohibiting unlawful discrimination in employment. Grantee's failure to comply with all applicable provisions of the Illinois Human Rights Act, or applicable rules and regulations promulgated thereunder, may result in a determination that Grantee is ineligible for future contracts or subcontracts with the State of Illinois or any of its political subdivisions or municipal corporations, and this Agreement may be canceled or voided in whole or in part, and such other sanctions or penalties may be imposed or remedies invoked as provided by statute or regulation. E. Drugfrng WprkpJace Act (30 ILCS 580/1, et,seqo, Grantee will make the certification required in this Agreement and will comply with all of the provisions cf the Drugfree Workplace Act that are applicable to the Grantee. False certification or violation of the requirements of the Drugfree Workplace Act may result in sanctions including, but not limited to, suspension of grant payments, termination of this Agreement and debarment of contracting or grant opportunities With the State for at least one (1)year but not more than five (5)years. F. Freedom of Information Act (5 ILCS 140/1 at seq.). Applications, programmatic reports and other information obtained by the Department under this Agreernent shall be administered pursuant to the Freedom of Information Act. The Department shall give Grantee timely notice in the event it receives a request for information submitted by Grantee relative to this Agreern nt. G. Prevailing Wage Act (820 ILCS 130/(11.01 et seq.). All projects for the!construction of fixed works Which are financed in whole or in part with funds provided by this Grant Agreement shall be subject to the Prevailing Wage Act (820 ILCS 130/0.01 et Seq.) unless the provisions of that Act exempt its application. In the construction of the project, the Grantee shall comply With the requirements of the Prevailing Wage Act, including, but not limited to, inserting into all contracts for such construction a stipulation to the effect thpt not less than the prevailing rate of,wages as applicable to the project shall be paid to all laborers, workers, and mechanics performing work under the contract and requiring all bonds of contractors to • Dec-16-2002 02:56pm Frou-DCCA IL FIRST 217-557-9883 T-769 P.026/029 F-142 • include a provision as will guarantee the faithful performance of such prevailing wage clause as provided by contract. 5.10 MISC ►NEOUS PROVISIONS., A. Waivers. A waiver of any condition of this Agreement must be requestec4 in writing. No waiver of any condition of this Agreement may be effective unless in writing from the Director of the Department. B. Assignment. The benefits of this Agreement and the right., duties and responsibilities of the Grantee under this Agreement may not be assigned (in whole or in part] except with the express written approval of the Department acting through its Director. Any assignment by the Grantee in violation of this provision renders this Agreement void able by the Department. • C. SeverabILity Clause. If any provision under this Agreement or its application to any person or circumstances is held invalid by any court of competent jurisdictign, this invalidity does not affect any other provision or its application of this Agreement which can be given effect without;the invalid provision or application. D. integration Clause. This Agreement, with attachments, as written, is the full and complete agreement between the parties and there are no oral agreEiments or understandings between the parties other than what has been reduced to writing heroin. E. Comptroller Filing Notice. The Grantee expressly understands that whenever applicable, a copy of this Agreement and any.modification, cancellation or renewal is required to be filed by the Department with the State Comptroller. F. Subcontract,and Grants. The Grantee's services, duties and responsibilities specified herein shall not be subcontracted or subgranted by the Grantee without prior:written approval of the Department, unless such subcontracts or subgrants are provided for elsewhere in this Agreement. Any subcontracts or subgrants shall be subject tc, and *form with, all applicable State and Federal laws, and shall specifically provide that subcontractors or subgrantees are subject to all of the terms and conditions of this Agreement. • • • • , Dec-16-2002 02:56pm FrarDCCA IL FIRST 21T-55T-9883 T-769 P.027/020 F-142 4 PART VI . STATE OF ILLINOIS REQUIRED ' CERTIFICATIONS The Grantee makes the following certifications as a condition of this Agreement. These certifications are required by State statute and are in addition to any certifications required by any Federal funding source as set forth in this Agreement. Grantee's execution of this Agreement shall serve as its attestation that the certifications made herein are true and correct. 6.1 COMPLIANCE WIT. _ - • I • _ A The Grantee certifies that it shah comply with all applicable provisions of Federal, State and local law in the performance of its obligations pursuant to this Agreement. 6.2 IQNFLICT OF INTEREST. The Grantee certifies that it has no public or private interest, direct or indirect, and shall not acquire directly or indirectly any such interest which does or may conflict in any manner with the performance of Grantee's services and obligations under this Agreement. 6.3 argtIGQING/BID-ROTATING. The Grantee certifies that it has not been barred from contracting with a unit of State or local government as a result of a violation of Section 33E-3 or 33E•4 of the Criminal Code of 1.961 (720 ILCS 5/33 E•3 and 5/33 E•4). 6.4 DEFAULT ON EDUCATIONAl4,LOAN. The Grantee certifies that this Agrejement is not in violation of the Educational Loan Default Act (5 ILCS 385/3) prohibiting certain contracts to individuals who are in default on an educational loan. 6.5 AMERICANS WITH DISABILITIES ACT. The Americans with Disabilities Act (ADA) (42 U.S.C. 12101 et. seq.) and the regulations thereunder (28 CFR 35.130) prohibit discrimination against persons with disabilities by the State, whether directly or through contractual arl'angements, in the provision of any aid, benefit or service. As a condition of receiving this grant, the Grantee certifies that services, programs and activities provided under this Agreement are, and will continue to be, in compliance with the ADA: 6.6 DRUGFREE WORKPLACE ACT. The Grantee certifies that: A) It is a Corporation, Partnership, or other entity (other than an indij'iduai) with 24 or fewer employees at the time of execution of this Agreement. i B) That the purpose of this grant is to fund solid waste redu,;tion. C) It is a Corporation, Partnership, or other entity (other than an indiriidual)with 25 or more employees at the time of execution of this Agreement, or D) _ That it is an individual. If Option "A" or"B" is checked this Agreement is not subject to the requirements of the Act. . I Dec-16-2002 02:57pm From-DCCA IL FIRST 217-557-9883 T-769 P.028/022 F-142 If Option "C" or "D" is checked and the amount of this grant is five thousand dollars ($5,000.00) o'r more, the Grantee is notified that the Drugfree Workplace Act;(30 ILCS 580/1 et seq.) is applicable to this Agreement, and the Grantee must comply with the terms of said Act, as set forth below: Grantee will provide a drugfree workplace by: (a) Publishing a statement: (i) Notifying employees that the unlawful manufacture, distributipn, dispensing, possession or use of a controlled substance, including cannabis, is prohibited in the Grantee's workplace. (ii) Specifying the actions that will be taken against employees for violations of such prohibition. (iii)Notifying the employee that, as a condition of employment on such grant, the employee will: (A) abide by the terms of the statement; and (B) notify the employer of any criminal drug statute conviction. for a violation occurring in the workplace no later than five (5) days after such conviction. (b) Establishing a drug free awareness program to inform employee;; about: (I) the dangers of drug abuse in the workplace; • (ii)the Grantee's policy of maintaining a drug free workplace; (iii)any available drug counseling, rehabilitation and employee a:;sistance'programs; and (iv)the penalties that may be imposed upon an employee for drug violations. (c) Providing a copy of the statement required by subparagraph (a) toi each employee engaged in the performance of the grant and to post the statement in a !prominent place in the workplace. (d) Notifying the granting agency within ten (10) days after receiving notice, jander part (B) of paragraph (iii) of subsection (a) above, from an empioyeo or otherwise;receiving actual notice of such conviction. (e) Imposing a sanction on, or requiring the satisfactory participation in, a drug abuse assistance or rehabilitation program by any employee who is so convicted, as required by Section 5 of the Drugfree Workplace Act, 30 ILCS 580/5. • D.c-16-2002 02:5Tpn `FrarDCCA IL FIRST 21T-557-9883 T-769 P.029/029 F-142 • (f) Assisting employees in selecting a course of action in the event drug counseling, treatment and rehabilitation are required and indicating that a trained referral team is in place. (g) Making a, good faith. effort to continue to maintain a drugfree workplace through implementation of the Drugfree Workplace Act, 30 ILCS 580/5. If Grantee is an individual, it certifies that it will not engage in the unlawful manufacture, distribution, dispensation, possession, or use of a controlled suostance in the performance of this Agreement. 6.7 ANTI-BRIBERY. The Grantee certifies that neither it nor its emploiees have been convicted of bribing or attempting to bribe an officer or employee 01 the State of Illinois, nor has Grantee or any of its employees made an admission of guilt of such conduct which is a matter of record as defined in the Illinois Procurement Code (30 ILCS 500/50.5). 6.8 DISCRIMINATLON/ILLINOIS HUMAN RIGHTS ALA The Grantee certifies (i) that it will not commit unlawful discrimination in employment in Illinois as that term is defined in Article 2 of said Act; (ii) that it will comply with the provisions of Article 5 of the Act iregarding equal employment opportunities and affirmative action; and, (iii) that it will comply with policies and procedures established by the Department of Human Rights under Article 7 of the Act regarding equal employment opportunities and affirmative action. The Grantee further certifies that, if applicable, it will comply with An !Act to prohibit discrimination and intimidation on account of race, creed, color, :sex, religion, physical or mental handicap unrelated to ability or national origin in employment under 'contracts for public buildings or public works.' (775 ILCS 10/0.01 et. seq.) 6.9 SEXUAL HARASSMENT. The Grantee certifies that it his written sexlual harassment policies that shall include, at a minimum, the following information: (i)the 'Illegality of sexual harassment; (ii) the definition of sexual harassment under State law; (iii) description of sexual harassment, utilizing examples; (iv) the Grantee's internal complaint process including penalties; (v) the legal recourse, investigative and complaint process available through the Department of Human Rights and the Human Rights Commission; Zvi) direc ions on how to contact the Department and Commission; and (vii) protection again:it retaliation as provided by Section 6.101 of the Illinois Human Rights Act (775 ILCS 5/2-105 (BX5), A copy of the policies shall be provided to the Department upon request. 6.10 INTERNATIONAL ANTI-BOYCQU , E1tTIFtCATLQ.M. The Grantee hereby certifies that neither the Grantee nor any substantially owned affiliate company of ithe Grantee is participating oh will participate in an international boycott, as defined by the provisions of the U.S. Export Administration Act of 1979, or as defined by the regulatiohs of the U.S. Department of Commerce, promulgated pursuant to that Act (30 ILCS. 582/1 et seq.). �� OF E,C • °`'' p��b City of Elgin Agenda Item No. ' E REVISED G January 8, 2003 TO: Mayor and Members of the City Council ECONOMIC GROWTH FROM: Olufemi Folarin, Interim City Manager SUBJECT: Development Agreement with InnoTech Laboratories, Inc . PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider approval of a development agreement with InnoTech Laboratories, Inc . BACKGROUND InnoTech Laboratories is a clinical/diagnostic and pharmaceutical industry that employs research scientists and engineers in the production and testing of medical devices . In particular, the devices they manufacture allow users to conduct biological specimen analyses as applied to research and forensic science, medical diagnostics, genomic research, and agricultural development . InnoTech proposes to locate in the Northwest Business Park at Route 72 and Galvin Drive . They will lease existing space until such time when Interstate Partners can complete the construction of a 250, 000 square foot building within the business park. Future phases will require the construction of additional 250, 000 square foot buildings . InnoTech will employ approximately 400 persons within two years and over 1 , 000 persons within five years . At this level , according to their grant application, annual salary and benefits will reach $70, 000 , 000 with annual taxes, including state income, payroll and real estate totaling more than $300, 000, 000 . Senator Rauschenberger, the City of Elgin and the State of Illinois Department of Commerce and Community Affairs (DCCA) Development Agreement with InnoTech Laboratories, Inc . January 8, 2003 Page 2 worked jointly to prepare a competitive economic development package to ensure InnoTech' s location in the City of Elgin. A principal feature of this package is a $350 , 000 DCCA Grant sponsored by the Senator. After considering competitive sites and economic development packages available in the State of Wisconsin, InnoTech has decided to locate in Elgin, Illinois . The enclosed development agreement specifies the obligations of both the company and the City. These are summarized as follows : 1 . The Company agrees to perform Phase One activities, as generally described above, and in accordance with the attached Grant Agreement with DCCA. The Development Agreement requires InnoTech to achieve the following targets : commence production by September 30, 2004 , or, create 400 jobs by September 30, 2006 . 2 . The City agrees to serve as Grantee and recipient of the $350, 000 DCCA award. Monies will then be remitted to the company as specified in the development agreement . If the company fails to perform within the terms and conditions of the Development Agreement, the company shall be responsible to reimburse the $350, 000 to the City. 3 . The City agrees to give priority to the company' s building and construction related reviews, approvals, and inspections and will expedite their execution. 4 . The City will work with other State of Illinois agencies in securing other grant or loan programs for the projects future phases . Economic Development staff will monitor the performance requirements of the Development Agreement as well as the DCCA grant agreement (Exhibit C) in order to insure compliance by the company. Development Agreement with InnoTech Laboratories, Inc . January 8 , 2003 Page 3 COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED Senator Rauschenberger, State of Illinois . FINANCIAL IMPACT The DCCA grant will total $350, 000 . With the exception of having an independent audit performed of the project at a cost of approximately $1, 000, no additional local funds are being used for this project . Staff time devoted to the execution of the development agreement' s terms and conditions will be absorbed as a part of their normal duties and responsibilities . LEGAL IMPACT The Legal Department has reviewed the attached development agreement and State of Illinois grant agreement . ALTERNATIVES 1 . Adopt the development agreement and authorize the Mayor to execute the State of Illinois' grant agreement for $350, 0000 . 2 . Do not proceed with the development agreement at this time . RECOMMENDATION It is recommended that the City Council proceed as identified in Alternative One above . Respectfully submitted, Olu - Fo arin Interim Cit Mana•- MTB/sr