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Home My WebLink About10-51 Resolution No. 10-51 RESOLUTION AUTHORIZING EXECUTION OF AN AMENDMENT TO DEVELOPMENT AGREEMENT WITH CSI TECHNOLOGIES, INC. 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 an Amendment to Development Agreement on behalf of the City of Elgin with CSI Technologies,Inc. for participation in the jobs incentive grant program,a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schock, Mayor Presented: March 10, 2010 Adopted: March 10, 2010 Omnibus Vote: Yeas: 7 Nays: 0 Attest: s/Diane Robertson Diane Robertson, City Clerk AMENDMENT TO DEVELOPMENT AGREEMENT This amendment to development agreement is made and entered into this \O`'\ day of 2010, 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"). WITNESSETH WHEREAS, the City and the Company previously entered into a development agreement dated September 10, 2008, (hereinafter referred to as the "Subject Development Agreement"); and WHEREAS, the Development Agreement related to the Company's lease and occupancy of the property commonly known as 1 Douglas Avenue, Elgin, Illinois (hereinafter referred to as the"Subject Property"); and WHEREAS, the Subject Development Agreement provides in part for economic development assistance from the City to the Company for the Subject Development at the Subject Property relating to the establishment of full time jobs at the Subject Development on the Subject Property; and WHEREAS, the parties wish to amend the Subject Development Agreement as hereinafter set forth. NOW, THEREFORE, for and in consideration of the mutual promises and undertakings contained herein, and the mutual promises and undertakings as set forth in the Subject Development Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1. That Paragraphs 3 and 4 of the Subject Development Agreement be and are hereby amended in their entirety to read as follows: "3. That the Company plans to create and maintain at the Subject Property by December 31, 2011, up to 44 new full-time jobs, each with an annual salary in excess of$40,000. 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 the Company for the Subject Development shall be provided to the Company as follows: In the event of and upon Company's occupancy of an the commencing of 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 the various new full-time jobs at the Subject Development on the Subject Property on or before December 31, 2011, as described in the preceding paragraph 3 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 agreement not to exceed $44,000. The Company shall submit annually to the City through 2011 documentation in a form - 2 - satisfactory to the City's Finance Director verifying the creation and establishment of such full-time jobs at the Subject Development. The City shall pay such monies not to exceed the total amount of $44,000 to the Company in annual installments through 2011 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. 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." 2. That in the event of any conflict between the terms of the Subject Development Agreement and the terms of this amendment agreement, the terms of this amendment agreement shall supersede and control. 3. That except as expressly amended herein the Subject Development Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties have entered into and executed this amendment agreement as of the date and year first written above. CITY OF ELGIN, a municipal CSI TECHNOLOGIES, INC. Corporation - 3 - By Its filt.S. Ed Schock, Mayor Attest: Diane Robertson, ity Clerk F:\Legal Dept\Agreement\Development Agr-CSI Technologies-Amendment.docx - 4 - <�O F Er cs C> ,% Agenda Item No. C City of Elgin 'r1rEO�E�" � February 18, 2010 rF, s T af ra I 4as eLil TO: Mayor and Members of the City Council FROM: Sean R. Stegall, City Manager___- "'" tv li.vi "`''" I?iv r:?trrr{lax Br.:x RuthAnne K. Hall, Management Analyst SUBJECT: Amendment to Terms of Development Agreement with CSI Technologies, Inc. PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider an amendment to the terms of the Development Agreement with CSI Technologies, Inc. RECOMMENDATION It is recommended that the City Council amend the terms of the Development Agreement with CSI Technologies, Inc. at a cost of$44,000. BACKGROUND, The City of Elgin entered into a Development Agreement with CSI Technologies, Inc. (CSI) on September 10, 2008 in the amount of$44,000. As part of the original Development Agreement, CSI agreed to create and maintain 44 new full-time jobs, each with an annual salary in excess of $40,000. The original Development Agreement provided for a level of specificity regarding the position titles of the jobs identified as part of the incentive request and annual deadlines to obtain a specified number of the jobs. CSI is seeking to honor the terms of the Agreement to bring the 44 full-time professional jobs to Elgin, however, is asking for an amendment to remove the specification of the position titles, provide one end date of December 31, 2011, and allow for payment to be made as full-time jobs are filled — as referenced in paragraph 3. Staff has noted that this request is consistent with the language utilized in prior development agreements for job incentives and recommends that the amendment be made so that CSI can receive payment as requested. In addition, due to the current economic recession, CSI has had to alter its original employment plan. It should be noted that CSI has created and maintained 15 full-time professional jobs and added six full-time professional jobs in their first year of operation in Elgin. A copy of the amended agreement is attached. r Amendment to Terms of Development Agreement with CSI Technologies, Inc. February 18,2010 "III) Page 2 COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED CSI Technologies, Inc., Downtown Neighborhood Association F NANCIAL IMPACT The cost of the development agreement with CSI Technologies, Inc. will total $44,000. Funding for the agreement is budgeted ($44,000) and available ($44,000) in the Riverboat Lease Fund, account number 276-0000-791.80-27, "Economic Development Incentives," project number 17711P. L GAL IMPACT one. ALTERNATIVES 1. The City Council may choose to amend the terms of the Development Agreement with CSI Technologies, Inc. 2. The Ci ty Council may choose not to amend the terms of the Development Agreement with CSI Technologies, Inc. Respectfully submitted for Council consideration. RKH Attachment 1