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HomeMy WebLinkAbout08-213 r r s ) Resolution No. 08-213 RESOLUTION AUTHORIZING EXECUTION OF A DEVELOPMENT AGREEMENT WITH CSI TECHNOLOGIES, INC. FOR PARTICIPATION IN THE JOBS INCENTIVES GRANT PROGRAM BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Ed Schock, Mayor, and Diane Robertson, City Clerk, be and are hereby authorized and directed to execute a Development Agreement on behalf of the City of Elgin with CSI Technologies, Inc. to participate in the Jobs Incentives Grant Program,a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schock, Mayor Presented: September 10, 2008 Adopted: September 10, 2008 Omnibus Vote: Yeas: 6 Nays: 0 Attest: s/Diane Robertson Diane Robertson, City Clerk DEVELOPMENT AGREEMENT This Development Agreement is made and entered into this 4 day of l Se-4__ _ -.---" , 2008, by and between the CITY OF ELGIN, an Illinois municipal corporation, (hereinafter referred to as the "City") and CSI Technologies, Inc., an Illinois corporation (hereinafter referred to as "Company"). WITNES SETH WHEREAS, Company intends to lease property located at 1 Douglas Avenue, Elgin, Kane County, Illinois, and legally described on Exhibit A attached hereto (such property is hereinafter referred to as the "Subject Property") and WHEREAS, Company intends to lease, occupy and utilize the Subject Property for relocation of its technical consulting services business (hereinafter referred to as the "Subject Development"); and WHEREAS, Company, after consultations and negotiations with the City concerning certain development assistance has determined to proceed with the Subject Development of the Subject Property; and WHEREAS, the Subject Development of the Subject Property is currently estimated to result in the creation of 44 full-time employees in the City of Elgin by December 31, 2011; and WHEREAS, it is unlikely that the development of the Subject Property will occur in the absence of limited economic assistance; and WHEREAS, the City providing development assistance to Company for the Subject Development will 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 leasing of the Subject Property by the Company with its consulting service relocation, the City has agreed to provide certain development assistance as hereinafter described; and WHEREAS, the City of Elgin is a home rule unit authorized to exercise or perform any function relating to its government and affairs; and WHEREAS, economic development initiatives as provided herein and resulting in significant increases in the City of Elgin's employment opportunities within the City of Elgin are matters within the government and affairs of the City of Elgin. NOW, THEREFORE, for and in consideration of the mutual promises and undertakings contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1. That the foregoing recitals are incorporated into this agreement in their entirety. 2. That Company shall lease the third and forth floors of the Subject Property beginning in September of 2008 for a minimum of three years. 3. A. That by September 30, 2008 the Company shall create and maintain at the Subject Property not less than fifteen (15) new full-time jobs, each with an annual salary in excess of$40,000, in the following type of position: Engineer. B. That by December 31, 2008 the Company shall create and maintain at the Subject Property not less than 9 new full-time jobs, each with an annual salary in excess of$40,000, in the following types of positions: Entry-Level BP Engineer 1, Entry-Level BP Engineer 2, Entry-Level Engineer BP 3, Entry-Level FAC Engineer 1, z Entry-Level FAC Engineer 2, Entry-Level FAC Engineer 3, Senior-Level Mechanical Engineer, Engineering Assistant,Project Manager. C. That by December 31, 2009 the Company shall create and maintain at the Subject Property not less than 8 new full-time jobs, each with an annual salary in excess of$40,000, in the following types of positions: Entry-Level BP Engineer 1, Entry-Level BP Engineer 2, Entry-Level Engineer BP 3, Senior Data Base Administrator, Entry-Level Tech Support Engineer, LAN Administrator, Engineering Assistant, and Project Manager. D. That by December 31, 2010 the Company shall create and maintain at the Subject Property not less than 6 new full-time jobs, each with an annual salary in excess of$40,000, in the following types of positions: Engineering Assistant 1, Engineering Assistant 2, Entry-Level FAC Engineer 1, Entry-Level FAC Engineer 2, Senior-Level Mechanical Engineer, and Engineering Manager. E. That by December 31, 2011 the Company shall create and maintain at the Subject Property not less than 6 new full-time jobs, each with an annual salary in excess of $40,000, in the following types of positions: Entry-Level Developer 1, Entry-Level Developer 2, Entry-Level FAC Engineer 1, Entry-Level FAC Engineer 2, engineering Assistant, and Project Manager. 4. That in consideration of Company's intention to lease the Subject Property and providing for the creation of jobs as set forth herein, the City agrees to provide the economic development assistance to Company as set forth in this paragraph to be used by Company for costs associated with the relocation to the Subject Property. Such economic development assistance from the City to Company for the Subject Development shall be 3 • provided to Company as follows: In the event of and upon Company's occupancy of and the commencing operations of the Subject Development at the Subject Property on or before September 30, 2008, as required in the preceding Paragraph 2 hereof, and in the event of Company creating and establishing not less than fifteen (15) new full-time jobs at the Subject Development on or before September 30, 2008, as required in the preceding Paragraph 3A hereof, the City shall pay to the Company the sum of$1,000 for each of such full-time jobs created and established by the Company at the Subject Development on the Subject Property with the total monies to be paid by the City to the Company pursuant to this provision of the agreement not to exceed $15,000. In the event of Company creating and establishing not less than nine (9) new full-time jobs at the Subject Development on or before December 31, 2008, as required in the preceding Paragraph 3B hereof, the City shall pay to the Company the sum of$1,000 for each of such full-time jobs created and established by the Company at the Subject Development on the Subject Property with the total monies to be paid by the City to the Company pursuant to this provision of the agreement not to exceed $9,000. In the event of Company creating and establishing not less than eight (8) new full-time jobs at the Subject Development on or before December 31, 2009, as required in the preceding Paragraph 3C hereof, the City shall pay to the Company the sum of$1,000 for each of such full-time jobs created and established by the Company at the Subject Development on the Subject Property with the total monies to be paid by the City to the Company pursuant to this provision of the agreement not to exceed $8,000. In the event of Company creating and establishing not less than six (6) new full-time jobs at the Subject Development on or before December 31, 2010, as required in the preceding Paragraph 4 3D hereof, the City shall pay to the Company the sum of$1,000 for each of such full- time jobs created and established by the Company at the Subject Development on the Subject Property with the total monies to be paid by the City to the Company pursuant to this provision of the agreement not to exceed $6,000. In the event of Company creating and establishing not less than six (6) new full-time jobs at the Subject Development on or before December 31, 2011, as required in the preceding Paragraph 3E hereof, the City shall pay to the Company the sum of$1,000 for each of such full-time jobs created and established by the Company at the Subject Development on the Subject Property with the total monies to be paid by the City to the Company pursuant to this provision of the agreement not to exceed $6,000. The City shall pay such monies not to exceed the total amount of$44,000 to the Company upon receipt of acceptable documentation verifying the creation and establishment of such full-time jobs at the Subject Development and the issuance of a final certificate of occupancy for the Subject Development at the Subject Property, provided however, and notwithstanding anything to the contrary provided in this agreement, payment by the City shall not be made to the Company prior to September 30, 2008. It is further expressly understood and agreed by the parties hereto that the City's sole and only financial contribution for the Subject Development on the Subject Property shall be the financial assistance not to exceed $44,000 as described in this paragraph and that the City shall have no other responsibility for any other costs or expenses relating to the Subject Development of the Subject Property. 5. That Company shall continue with its operations at the Subject Development on the Subject Property and maintain the full-time jobs at the Subject Property referenced in paragraph 3 hereof for a period of not less than five (5) years 3 following Company completing, occupying and commencing operations of the Subject Development on the Subject Property. 6. That the parties understand and agree that the economic development assistance being provided by the City to Company as set forth herein is expressly contingent upon Company's relocation to the Subject Property as set forth herein. In the event Company fails to occupy and commence operations of the Subject Development on the Subject Property on or before September 30, 2008, as required in the preceding Paragraph 2 hereof and/or in the event Company fails to provide for the creation and establishment of jobs at the Subject Development as required in the preceding Paragraph 3 hereof, and/or in the event the Company fails to continue with operations at the Subject Development as required in the preceding Paragraph 5 hereof, the parties understand and agree that the City will not be providing the economic development assistance to Company for the Subject Property pursuant to this agreement or otherwise, and that the Company shall reimburse the City in full the funds distributed to the Company under the economic development grants provided for the preceding Paragraph 4 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, send 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 like to 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 COMPANY: City of Elgin CSI Technologies Inc. 150 Dexter Court 1051 E. Main Street Elgin, IL 60120-5555 Suite 215 Attention: City Manager East Dundee, Illinois Attention: Robert Aleksick 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 Company 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. 13. That the City and Company 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. 7 14. That notwithstanding any other provision of this agreement it is expressly agreed and understood by the Company and the City that the development of the Subject Property by the Company shall be in accordance and compliance with all applicable federal, state, city and other requirements of law. Company 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 lease 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 anything else to the contrary in this agreement, no action shall be commenced by the Company 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 Company in this agreement and the City is the prevailing party in such action, the City shall also be entitled to recover from Company 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 Company's compliance with the requirements of the preceding Paragraph 2 and 3 hereof, Company shall provide the City reasonable data and records of Company which documents Company's compliance with the requirements of the preceding Paragraphs 2 and 3 hereof. 18. That time is of the essence of this agreement. IN WITNESS WHEREOF, the parties have entered into and executed this agreement on the date and year first written above. CITY OF ELGIN, a municipal CSI TE 0, OGIES, INC. — corporation i By By _ Ed Schock, Mayor Robert M. Aleksick Attest: Diane Robertson, City Clerk F:\Legal Dept\Agreement\Development Agr-CSI Technologies-clean 7-25-08.doc 9 '3= TECHNOLOGIES,INC. July 17,2008 City of Elgin 150 Dexter Court Elgin,IL 60120 Attention: Mr.Raymond Moller Director of Economic Development Subject: Possible Relocation to Downtown Elgin Dear Mr. Moller. • Thank you for taking the time to visit with us last week. We very much appreciate your interest in - having us relocate to downtown Elgin in support of your economic development plans. Our company, CSI Technologies,Inc.,provides technical consulting services to electric utility companies.We are nationally recognized in our areas of specialization. Our staff of twenty-five includes fifteen degreed professionals,primarily mechanical engineers, at an average annual salary of approximately$70,000. We are growing rapidly and plan to he nine people this year,and twenty more over the next three years. In over ten years of business,we have never had to lay off or terminate a professional staffer due to lack of work. Please see the Attachment to this letter for a list • of our current professional staff and short-term recruiting plans. We are impressed with what we see in downtown Elgin. The downtown feel,amenities,and capital investments make it an attractive location for us as an organization,and for our staff as individuals. We have engaged a search consultant who has identified about a dozen suitable office properties along the I-90 corridor,and we have determined that downtown Elgin,based on a number of factors, including the available incentives,could possibly be a great location for as. It is my understanding that one of the available incentives to high impact projects is a$1,000 grant per new Elgin job that earns $40,000 or more annually before benefits. We have fifteen employees that fit this criterion.Without this grant we could not consider a move to Elgin. This is essential and necessary for mitigating our costs incurred from moving our operation to downtown Elgin. We ask that you present us with a development agreement soon so that we can proceed with planning. Accordingly,we would plan to sign a lease for the third and fourth floors at the One Douglas Avenue location. If we do so,I expect we would move to the new space in late August or early September of this year for a minimum of three years. 1051 E.Main Street Suite 215 East Dundee,Illinois 60118 Telephone(847)836 3000 Facsimile (847)836 3001 , ' • ••••* „.• • „ TECHNOLOGIES,INC. July 17, 2008 Page 2 of 2 Thank you again for your interest. I am sure that locating to downtown Elgin will benefit both CSI - • Technologies and the City of Elgin. Very truly yours, kii#,), lip 1W Robert M. Aleksick • President Attachment • • t "k, TECHNOLOGIES,MC. Attachment: CSI Current Staff and Recruiting Plans 2008-Current Professional Staff 2009-Planned Professional Hires Current Staff earning more than All hires above$40,000 before $40,000 before benefits: benefits • Engineers.15 employees . Entry-Level BP Engineer 1 Administrative 8 employees Entry-Level Developer 1 Entry-Level Developer 2 2008-Planned Professional Hires Senior Database Administrator All hires above$40,000 before LAN Administrator benefits Entry-Level Tech Support Engineer Entry-Level BP Engineer 1 Engineering Assistant . Entry-Level BP Engineer 2 Project Manage r Entry-Level BP Engineer.3 Entry-Level FAC Engineer 1 2010-Planned Professional Hires Entry-Level FAC Engineer 2 All hires above$40,000 before Entry-Level FAC Engineer 3 benefits Senior-Level Mechanical Engineer Engineering Assistant 1 Engineering Assistant Engineering Assistant 2 Project Manager Entry-Level FAC Engineer 1 • Entry-Level FAC Engineer 2 Senior-Level Mechanical.Engineer. Engineering Manager 2011-Planned Professional Hires • All hires above$40,000 before benefits Entry-Level Developer 1 Entry-Level Developer 2 Entry-Level FAC Engineer 1 Entry-Level FAC Engineer 2 Engineering Assistant Project Manager Page 1 of 1 PROFESSIONALS ASSOCIATED SURVEY, INC. Property - Alta - Topo- Condo - Mortgage Surveys 7100 N.TRIPP AVENUP LINCOLNWOOD,ILLINOIS 60646 TEL.:(847)67 5-3000 PLAT OF SURVEY FAX:(847)675-2167 PACREL1: OF THE EAST 1/3 OF LOT 6 (EXCEPT THE NORTHERLY 10.00 FEET THEREOF) IN BLOCK 16 OF THE ORIGINAL TOM OF ELGIN, ON THE EAST SIDE OF THE Aui01gills Ilhu,,. FOX RIVER, IN THE CITY OF ELGIN, KANE COUNTY, ILLINOIS. NORTH PARCEL 2. THE EAST 22.00 FEET OF THE WEST 44.00 FEET (FROWING ON CHICAGO STREET) OF LOT 6 IN BLOCK 16 OF THE ORIGINAL TOWN OF ELGIN, ON THE EAST SIDE OF THE FOX RIVER (EXCEPTING THAT PART CONVEYED TO THE CITY OF ELGIN, BY DEED DATED MARCH 14, 1867 AND RECORDED APRIL 2, 1883 AS DOCUMENT 23342 IN BOOK 178, PAGE 116), IN THE CITY OF ELGIN, KANE COMFY, ILLINOIS. PARCEL 3: THE EST 1/3 OF LOT 6 (EXCEPT THE NORTH 9.00 FEET THEREOF) IN BLOCK 16 OF THE ORIGINAL TORN OF ELGIN ON THE EAST SIDE OF FOX RIVER, IN THE CITY OF ELGIN, KANE COUNTY, ILLINOIS. N. `` - NOT INCLUDED _ •• CU<�N1LY KNJ AS: �—` 150-54 CHICAGO STREET, _._ I I.0 0 44 00'22.00 ELGIN, ILLINOIS. --.._._._ _-- `W' �•. ...__.. 6 .. ■ LOT 7 z2.00 22.dp / W I.00`' cgsrsc rrmt� ern 1 • / n ^,N 0 ! P .No. PO •i' . ' • / . 4- -- 1 -H c 4 (U A S ter a l' i e ca \ ti,w Q U • • Conc.• N 2W) 0 Meh l Sk�rS �� (� i r c ii - . ti . ,,,11 c 4i ,c, i 1 11 ,A1' 8 1 \ 1 ir, i \ L - . . , \I \ \ \I 3 . . . <<,\- \I ',.., \ \-,,, \ I /, i. P I (4 186 . Q \ � 2 f-) 404 Date August 7, 2008 1 Ei�rin FI TO: Mayor and Members of the City Council �= ihappee+n8 FROM: Olufemi Folarin, City Manager �4 Raymond H. Moller, Director of Economic Development SUBJECT: CSI Technologies Inc. Development Assistance PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider a request from CSI Technologies Inc. to participate in the Jobs Incentives Grant Program in order to relocate their offices to 1 Douglas Avenue. RECOMMENDATION It is recommended that the City Council enter into a Development Agreement with CSI Technologies Inc. to participate in the Jobs Incentives Grant Program in the amount of$44,000. BACKGROUND CSI Technologies Inc. (CSI) provides consulting services to electric utility companies. Their staff of 25 includes 15 degreed professionals, primarily mechanical engineers, earning an average salary of$70,000 annually. CSI is growing rapidly and plans to hire an additional nine employees in 2008 and an additional 20 employees over the next three years. CSI has been actively searching for potential relocation sites along the I-90 corridor. Absent the availability of the jobs incentive assistance, the firm will likely select a different location for their office. CSI has also indicated interest in submitting an e-Elgin Technology grant application in the near future. If CSI selects the Center City Elgin location, they would sign a three year lease for the third and fourth floors of the 1 Douglas Avenue site. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None FINANCIAL IMPACT The cost of the proposed assistance for CSI Technologies is $44,000. The original 2008 budget for the Economic Development Program was $727,460. There is $373,301 remaining. Funding . . . 4 CSI Technologies Inc. Development Assistance August 7, 2008 Page 2 to enter into this agreement in the amount of$44,000 is budgeted in the Riverboat Lease Fund, account number 276-0000-791-80-27, "Economic Development Incentives," project number 17711P, LEGAL IMPACT A Development Agreement will be required. ALTERNATIVES 1. The City Council may choose to enter into a Development Agreement with CSI Technologies Inc to participate in the Jobs Incentives Grant Program in the amount of $44,000. 2. The City Council may choose not to enter into a Development Agreement with CSI Technologies Inc. Respectfully submitted for Council consideration.