HomeMy WebLinkAbout00-184 r
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Resolution No. 00-184
RESOLUTION
AUTHORIZING EXECUTION OF A DEVELOPMENT AGREEMENT WITH
MOTOROLA, INC.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Ed Schock, Mayor, and Dolonna Mecum, City
Clerk, be and are hereby authorized and directed to execute a
Development Agreement on behalf of the City of Elgin with
Motorola, Inc . for a new Distribution Center Development
located at the northwest corner of the 1-90 Tollway and
Randall Road, a copy of which is attached hereto and made a
part hereof by reference .
s/ Ed Schock
Ed Schock, Mayor
Presented: August 9, 2000
Adopted: August 9 , 2000
Omnibus Vote : Yeas 7 Nays 0
Attest :
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
JUL 8-2000 TUE 03: 19 PM CITY OF ELGIN FAX Na 1 847 931 6075 P. 03
RAGREE/MOTOROLA.DA2
' Draft 7/18/00
DEVELOPMENT AGREEMENT
This Development Agreement is made and entered into
this iyhAday of , 2000 , by and between the CITY OF
ELGIN, an Illinois municipal corporation, (hereinafter
referred to as the "City") and MOTOROLA, INC. , a Delaware
corporation, (hereinafter referred to as "Motorola") .
WITNESSETH
WHEREAS, the City and Motorola entered into a
Development Agreement dated February 14, 1996 (hereinafter
referred to as the "Original Development Agreement" ) ; and
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WHEREAS, Motorola is the owner of the property
located at the northwest corner of the 1-90 Tollway and
Randall Road with such property being legally described in the
Original Development Agreement in Exhibit A thereto
(hereinafter referred to as the "Original Development
Property") ; and
WHEREAS, the Original Development Agreement provided
that Motorola was to develop the Original Development Property
with Motorola ' s Messaging, Information and Media Sector
Complex; and
WHEREAS, the Original Development Agreement further
. provided for the City to provide certain economic development
assistance to Motorola for the development by Motorola of the
Original Development Property with Motorola ' s Messaging,
Information and Media Sector Complex; and
JUL18-2000 TUE 03: 19 PM CITY OF ELGIN FAX Na 1 847 931 6075 P. 04
WHEREAS, the economic development assistance to be
provided by the City pursuant to the Original Development
Agreement was expressly contingent upon Motorola commencing
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and completing the development of the Original Development
Property with its Messaging, Information and Media Sector
Complex by specified dates; and
WHEREAS, the City and Motorola entered into an
Amended Development Agreement dated July 23 , 1997, which
provided Motorola additional time to commence and complete the
development of the Original Development Property with its
Messaging, Information and Media Sector Complex (such Amended
Development Agreement between the city and Motorola dated
July 23 , 1997, is hereinafter referred to as the "Amended
Development Agreement") ; and
WHEREAS, Motorola has elected not to develop the
Original Development Property with its Messaging, Information
and Media Sector Complex; and
WHEREAS, as a result of Motorola not having
developed the Original Development Property with its
Messaging, Information and Media Sector Complex on the
Original Development Property and completing same by the dates
specified in the Amended Development Agreement the City and
Motorola acknowledge and agree that pursuant to the Amended
Development Agreement between Motorola and the City of Elgin
Motorola currently owes and is obligated to repay to the City
of Elgin the total amount of $665 , 393 . 14 , with such amount
•
being comprised of the first installment of the economic
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JUL-I8-2000 TUE 03: 19 PM CITY OF ELGIN FAX Na 1 847 931 6075 P. 05
development grant previously paid by the City to Motorola in
the amount of $250, 000 provided for in paragraph 4 of the
Amended Development Agreement and $415, 393 . 14 of costs the
City incurred arising from the utility improvements as set
forth in paragraph 3 of the Amended Redevelopment Agreement ;
• and
WHEREAS, Motorola after consultations with the City
concerning certain potential additional development assistance
and the repayment to the City of development assistance
provided by the City pursuant to the Original Development
Agreement as amended by the Amended Development Agreement,
Motorola has determined to proceed with the development of a
Distribution Center to support growth and process improvements
in Motorola' s Communication Enterprise Business on a site in
the City of Elgin located at the property known as
Northwest XI in the Northwest Corporate Park being developed
by the Wispark Corporation and legally described on Exhibit A
hereto (hereinafter referred to as the "New Development
Property" ) ; and
WHEREAS, in order to provide for the continued
development of the City including the development of the New
Development Property by Motorola with a Distribution Center
the City has agreed to provide certain development assistance
as hereinafter described; and
WHEREAS, the City providing the development
assistance to Motorola for its Distribution Center on the New
Development Property will result in a substantial increase in
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JUL:18-2000 TUE 03:20 PM CITY OF ELGIN FAX Na 1 847 931 6075 P. 06
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the City' s tax base, provide new and additional employment
opportunities in the City of Elgin and specifically will
result in a minimum investment by Motorola of approximately
$30 million in capital improvements and the relocation of
approximately 500 jobs to the City of Elgin and the creation
of approximately 100 new jobs within the City of Elgin; 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 resulting in significant increases in the City
of Elgin' s tax base and 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 :
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1 . That the foregoing recitals are incorporated
into this agreement in their entirety.
2 . That Motorola shall develop the New Development
Property with a Distribution Center according to the site plan
prepared by Stephen Rankin attached hereto as Exhibit B (such
Distribution Center to be constructed by Motorola on the New
Development Property is hereinafter referred to as the
"Distribution Center Development" ) . Such Distribution Center
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Development shall also provide for berms and other landscaping
as required by the City. It is understood and agreed that the
initial phase of the Distribution Center Development shall be
approximately 300, 000 square feet on approximately 30 acres
and that the value of the project, including land,
improvements, buildings and equipment shall be approximately
•
$37, 000 , 000 , Motorola shall complete the construction of the
Distribution Center Development , occupy same and commence
operations at the Distribution Center Development on or before
December 31, 2001 .
3 . That upon the occupancy of the new Distribution
Center Development Motorola shall relocate approximately 500
previously existing full time jobs to such Distribution Center
Development , Motorola shall also create approximately 100 new
full time jobs at the Distribution Center Development within
thirty-six (36) months of Motorola ' s occupancy of the •
Distribution Center Development . It is anticipated that the
• breakdown of the types of jobs that Motorola will provide at
the Distribution Center Development is as follows :
1 . Material pickpack, quality control and shipping and
receiving Salary ranges $25, 000-30 , 000 annually;
2 . Operations technicians - Salary (depending upon experience
is $30, 000-35, 000 annually; and 3 , Product analysis and
supervisors - Salary range $42, 000-48 , 000 annually.
4 . That in consideration of Motorola! s undertaking
and completing of the development of the New Development
Property with the Distribution Center Development and Motorola
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JUL-18-2000 TUE 03:20 PM CITY OF ELGIN FAX Na 1847 931 6075 P. 08
providing for the relocation, creation and establishment of
jobs as set forth herein the City agrees to provide the
economic development assistance to Motorola as set forth in
this paragraph to be used by Motorola for costs associated
with the development of the Distribution Center Development
including for such matters as offsetting job relocation
expenses, infrastructure improvements, fiber optics, power and
telecommunication service and worker training. Such economic
development assistance from the City to Motorola for the
Distribution Center Development shall be provided to Motorola
as follows :
A. Pursuant to the Amended Development Agreement
• between Motorola and the City Motorola currently owes and is
obligated to repay to the City the first installment of an
economic development grant previously paid by the City to
Motorola in the amount of $250, 000 . In the event of and upon
Motorola' s completion, occupancy of and commencing operations
at the Distribution Center Development on or before
December 31, 2001 , and in the event of and upon Motorola ' s
having provided for the relocation, creation and establishment
of jobs at the Distribution Center Development as required in
the preceding paragraph 3 hereof, the City will forgive
Motorola ' s required repayment of such sum of $250, 000 and
. instead will permit Motorola to use such monies toward the
costs of the development of the Distribution Center
Development as identified herein.
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• SI1-18-2000 TUE 03:20 PM CITY OF ELGIN FAX Na 1 847 931 6075 F. u
B. Pursuant to the Amended Development Agreement
between Motorola and the City Motorola also currently owes and
is obligated to repay to the City the amount of $415 , 393 . 14 to
reimburse the City for costs the City incurred arising from
certain utility improvements made by the City. It is agreed
that commencing from July 1, 2000, interest shall be charged
and shall accrue at six percent (6%) simple interest per annum
on such sum of $415, 393 . 14 . In the event of and upon
Motorola' s completion, occupancy of and commencing operations
at the Distribution Center Development on or before
December 31 , 2001, and in the event of and upon Motorola
having provided for the relocation, creation and establishment
of jobs at the Distribution Center Development as required in
the preceding paragraph 3 hereof, it is agreed Motorola shall
• be permitted to defer repayment of such sum of $415, 393 . 14,
plus the above stated interest, to the City until the
occurrence of the earliest of one of the following three
instances : i) the Original Development Property or any part
thereof is developed in any fashion as evidenced by the City
of Elgin issuing a certificate of occupancy for any portion of
such property; or ii) the Original Development Property or any
part thereof is sold or leased; or iii) August 1 , 2005 . Upon
the occurrence of the earliest of one of the preceding three
instances Motorola shall immediately pay to the City such sum
of $415 , 393 . 14 , plus interest . Motorola may also elect to pay
such sum of $415, 393 . 14 , plus interest, at any time prior to
the above specified instances.
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JUL-18-2000 TUE 03:20 PM CITY OF ELGIN FAX Na 1 847 931 6075 P. 10
C, In the event of and upon Motorola ' s completion,
occupancy of and commencing operations at the Distribution
Center Development on or before December 31, 2001, and in the
event of and upon Motorola having provided for the relocation,
creation and establishment of jobs at the Distribution Center
• Development as required in the preceding paragraph 3 hereof,
the City will pay to Motorola the sum of $100, 000 to be used
by Motorola toward the costs of the development of the
Distribution Center Development as identified herein.
5 . That the parties understand and agree that the
economic development assistance being provided by the City to
Motorola as set forth herein is expressly contingent upon
Motorola' s development of the Distribution Center Development
on the New Development Property as set forth herein. In the
event Motorola fails to complete, occupy and commence
operations at the Distribution Center Development on the New
Development Property on or before December 31 , 2001, and/or
in the event Motorola fails to provide for the relocation,
creation and establishment of jobs at the Distribution Center
Development as required in the preceding paragraph 3 hereof,
the parties understand and agree that the City will not be
providing any economic development assistance to Motorola for
the Distribution Center Development pursuant this agreement or
otherwise, and that Motorola shall immediately provide full
payment to the City of the monies Motorola currently owes and
is obligated to repay to the City of Elgin pursuant to the
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JUL-18-2000 TUE 00:20 PM CITY OF ELGIN FAX Na 1 847 931 6075 p, 11
Amended Development Agreement in the amount of $665, 393 . 14 ,
plus interest .
6 . That to assist Motorola in attempting to
expedite the construction of the Distribution Center
Development the City agrees that such development shall be
coordinated through the City' s Director of Community
Development who will assemble a City staff development team
. encompassing engineering, site planning, permitting and other
related development work,
7 . That the City agrees that the building setbacks
and height restrictions which are specified on the site plan
for the Distribution Center Development prepared by Stephen
Rankin and attached hereto as Exhibit B comply with the
current ORI zoning for the New Development Property as
modified by the existing annexation agreement for the New
Development Property,
8 . That this agreement shall not be deemed or
construed to create an employment, joint venture, partnership,
or other agency relationship between the parties hereto.
•
9 . 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 like notice,
and shall be deemed received on the date which said notice is
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SUL-18-2000 TUE 03:20 PM CITY OF ELGIN FAX Na 1 847 931 6075 P. 12
hand delivered or the second business day following the date
on which so mailed:
TO THE CITY: City of Elgin
150 Dexter Court
Elgin, Illinois 60120-5555
Attn: City Manager
TO MOTOROLA: Motorola, Inc.
1303 E. Algonquin Road
Schaumburg, IL 60196
Attn; Rick Kriva
Vice President, Real Estate
and Development
10 . 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.
11 . 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.
12 . 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.
13 . That this agreement is and shall be deemed and
construed to be a joint and collective work product of the
City and Motorola 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 in
order to resolve any inconsistency, ambiguity, vagueness or
conflict, if any, in the terms or provisions contained herein.
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JUL-18-2000 TUE 03:20 PM CITY OF ELGIN FAX NO. 1 84( br31
14 . 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 .
15 . 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.
16 . That upon Motorola' s compliance with the
•
requirements of the preceding paragraphs 2 and 3 hereof,
Motorola shall provide to the City reasonable data and records
of Motorola which documents Motorola ' s compliance with the
requirements of the preceding paragraphs 2 and 3 hereof. Upon
Motorola' s providing to the City such reasonable data and
records evidencing Motorola' s compliance with the requirements
of the preceding paragraphs 2 and 3 hereof Motorola's
compliance with the requirements of paragraphs 2 and 3 of this
agreement shall be deemed fully satisfied and complete.
p ‘ q,
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JUL-18-2000 TUE 03:21 PM CITY OF ELGIN FAX NO, 1 847 931 6075 P. 14
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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 MOTOROLA, INC. , a Delaware
corporation corporiimion
BYBY
Xe7,d04eff..Z7-- ler I
Ed Rhock, Mayor Name
RICHARD J. KRIVA
Title vir.F PREcIDPNI AND DIRf4CTOR
REAL. ESTATE AND DEVELOMENT
Attest ;
lc- /
Dolonna Mecum, City Clerk
.
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JUL-18-2000 TUE 03:21 PM CITY OF ELGIN FAX NO, 1 847 931 6075 P. 15
EXHIBIT A
(Legal description for new development property to
be inserted)
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PARCEL 8A:
THAT PART OF THE SOUTH HALF OF THE NORTHEAST QUARTER AND THE
SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF SECTION 30,
TOWNSHIP 42 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN, IN THE
CITY OF ELGIN, KANE COUNTY, ILLINOIS, DESCRIBED As FOLLOWS:
COMMENCING AT THE SOUTHEAST CORNER OF SAID NORTHEAST QUARTER,
THENCE SOUTH 88' 43' 36" WEST ALONG THE SOUTH LINE OF SAID NORTHEAST
QUARTER, A DISTANCE OF 2478.91 FEET TO THE WEST RIGHT-OF1WAY LINE OF
GALVIN DRIVE PER DOCUMENT NUMBER 96K089578 FOR A POINT OF BEGINNING;
THENCE ALONG SAID WEST LINE FOR THE FOLLOWING THREE (3) COURSES; (1)
THENCE NORTH 00° 57' 38" WEST, A DISTANCE OF 533.21 FEET TQ A POINT OF
CURVATURE; (2) THENCE NORTHERLY ALONG A CURVE CONCAVE WESTERLY,
HAVING A RADIUS OF 967.00 FEET FOR AN ARC LENGTH OF 347.14 FEET TO A POINT
OF TANGENCY; (3) THENCE NORTH 21° 31' 44" WEST, A DISTANCE OF 4}91 FEET TO A
LINE PARALLEL WITH THE NORTH LINE OF THE SOUTHEAST QUARTER OF THE
NORTHWEST QUARTER OF SAID SECTION 30; THENCE SOUTH 88° 40' 41" WEST
ALONG SAID PARALLEL LINE, A DISTANCE OF 1422.91 FEET TO THE WEST LINE OF THE
SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 30 AS
MONUMENTED, OCCUPIED AND ACCEPTED; THENCE SOUTH 00' 41' 03''' EAST ALONG
SAID WEST LINE,A DISTANCE OF 878.71 FEET TO THE SOUTHWEST CORNER OF THE
SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF SAID I SECTION 30;
THENCE NORTH 88° 43' 38" EAST ALONG THE SOUTH UNE OF THE SOUTHEAST
QUARTER OF THE NORTHWEST QUARTER AND THE SOUTH HALF OF THE NORTHEAST
QUARTER OF SAID SECTION 30, A DISTANCE OF 1490.51 FEET TO THE POINT OF
BEGINNING, CONTAINING 29.811 ACRES OR 1,298,589 SQUARE FEET MORE OR LESS.
JUL-18-2000 TUE 03:21 PM CITY OF ELGIN FAX NO, 1 847 931 6075 P. 16
EXHIBIT A
(Site plan for Distribution Center to be attached)
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PROJECT DATA \ \1
GALVIN DRIVE, ELGIN, ILLINOIS \
SITE AREA \
APPROX 29 66 AGREE \
cyi (+13.8 acres) ;
BUILDING AREA O \ m \
OFFICE - 2 FLOORS ±135,000 SF O
AT 367,500 SF EACH 0 , \
WAREHOUSE 30'CLEAR HEIGHT 157,500 SF \
TOTAL BUILDING AREA 292.500 SF \
WAREHOUSE EXPANSION 135,000 SF
. 7711 II x 1 1 1 1 I 11-31-7 -7171Ei i 1 ITT^i 1 11 11 II{TT [7314 Ill s
PARKING 563 I nI1IIIIIIIIIIIIIOIIIIII�IIIIIIII HO Q \ \
1--- 1 , - __ Irl:
FUTURE PARKING 273 _
TOTAL PARKING 856 1 A
_. i.
�.Illllllllllllllll n llllllllfllllllllll n
300' 35 E t
I I TTI.I.1111111i
WAREHOUSE EXPANSION 1 V1QBFIiOUSF I. SUUT0 IGAiA
SUBTOTAL AREA SUBTOTAL AREAL
135,000 SOFT. ......ee.: SQFT 6, SQ ` -
R.51.:;1,'''
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_. _ _1, 1, nu! 111 111 Li__ e. ' i 1 ;um I I11 ILP 1111 L L'LL _ _ 1
1490.50'
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— PROJECT"ELEVEN"SITE PLAN-ELGIN, ILLINOIS 6/22/00
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City of Elgin Agenda Itern No.
Ei.
II
July 20, 2000
fr
CI•
4 '
TO: Mayor and Member of the City Council
EC.NOMIC GROWTH
FROM: Joyce A. Parker, City Manager
SUBJECT: Motorola Development Agreement
PURPOSE
The purpose of this memorandum is to present to the Mayor and
members of the City Council a development agreement with Motorola
for the property located at Interstate 90 and Randall Road.
BACKGROUND
On February 14 , 1996, the City of Elgin and Motorola, Inc. entered
into a development agreement relating to property owned by Motorola
located at the 1-90 Tollway and Randall Road. In order to provide
for the development of the Motorola site, the City agreed to
provide certain infrastructure-related assistance in the form of
roadway improvements, utility improvements and economic development
grants dedicated for on-site infrastructure improvements .
The majority of the initial site work on the 130-acre parcel was
completed. However, due to business conditions, Motorola has
chosen to delay the project .
On July 23, 1997, the City of Elgin and Motorola, Inc. entered into
an Amended Development Agreement for the site at 1-90 and Randall
Road. In order to ensure the accuracy of the Development
Agreement, certain modifications were made to the agreement :
1 . The completion date for the access road serving the Motorola
site from Route 72 was changed from September 30, 1996 to
December 31, 1997 .
2 . Payment of the initial $250, 000 was made subject to the
beginning of site grading rather than building construction.
The second payment of $250, 000 was conditioned on start of
building construction rather than six months after the first
payment .
Development Agreement with Motorola
July 20, 2000
Page 2
3 . The date for start of building construction was changed from
June 1, 1997 to June 1, 1999 . The project completion date was
changed from June 30, 1999 to June 20, 2001 .
Motorola has again approached the City of Elgin about proceeding
with a project . In order to accommodate this project, further
revisions to the Motorola Development Agreement are proposed.
Attached for your review is an agreement and communications between
the City and Motorola describing the proposed project . A summary
is provided below.
The 'Project
Motorola is now proposing the development of another project in the
City of Elgin. The project includes the following elements :
1 . Motorola will be creating a Distribution Center to support
growth and process improvements in its Cdmmunication
Enterprise business . The initial phase will be approximately
300, 000 square feet on 30 acres . The estimated real estate
value of the project (land, equipment, improVements and
building) is approximately $37 million. Motorola shall
construct and occupy the distribution center by pecember 31,
2001 . The company is considering a site in the Northwest
Corporate Park being developed by WISPARK Corporation.
2 . The number of jobs being relocated to Elgin will be
approximately 500 . Additionally, Motorola plans to create 100
new jobs . The total number of jobs are to be present within
36 months . Over time, the employee population is estimated to
grow to over 1, 000 employees . The type of jobs that will be
located at this site are: (1) Material Pick Pack, Quality
Control and Shipping and Receiving - salary range is $25, 000-
$30, 000 annually; (2) Operations Technicians - salary
(depending upon experience) is $30, 000-$35, 000 annually; and
(3) Product Analyses and Supervisors - salaty range is
$42, 000-$48, 000 annually.
3 . Motorola will be sensitive to the needs of the adjacent
Village of Gilberts, providing vital berms and other
landscaping.
4 . Initial long-term power requirements will be a 6, 000 to 8, 000
amp service. Telecommunication estimates necessitate the
capacity for 1, 000 phone lines .
, .
Development Agreement with Motorola
July 20, 2000
Page 3
Proposed City Participation
In order to ensure that the development process proceeds in a
smooth manner, the following involvement by the City is being
recommended to facilitate the project :
1 . To expedite construction, site development is to be
coordinated through the City of Elgin Director of Community
Development, who will assemble a City staff team encompassing
engineering, site planning, permitting and other related
development work. This team will work directly with WISPARK
Corporation and Motorola development representatives .
2 . Permitting for construction will be phased, as plans are
approved by the City.
3 . Upon review of the site plan submitted to the City on May 18,
2000, all building setbacks and height specifications comply
with the current ORI zoning, as modified by an existing
annexation agreement .
4 . The City and Chamber of Commerce, in conjunction with Motorola
and WISPARK Corporation, will assist in the research necessary
to provide dual feed electric and telecommunication service to
the site .
5 . To assist Motorola in the development of the distribution
center, the City would provide development assistance to be
used to offset job relocation expenses, infrastructure
improvements, power and telecommunication service, worker
training and child care related to the distribution center.
Such assistance is itemized as follows :
a. Pursuant to the Amended Development Agreement dated July
23, 1997, Motorola owes the City a sum of $250, 000 . The
City will forego Motorola' s required payment of this sum,
and instead allow its use toward the various development
costs identified above .
b. Pursuant to the Amended Development Agreement dated July
23, 1997 , Motorola currently owes the City a sum of
$415, 393 . 14, allowing the City to recover its costs for
utility improvements previously made to the site
currently owned by Motorola . Under the proposed
amendment, the City will instead require the payment of
this sum, along with interest incurred at 6% per annum
starting from the date of a new City/Motorola agreement
. . • ,
Development Agreement with Motorola
July 20, 2000
Page 4
at the time when either of the following two instances
first occurs : i) the site currently owned by Motorola is
developed by them or another as evidenced by receipt of
a City of Elgin Certificate of Occupancy, or ii) the site
currently owned by Motorola is sold or leased. Motorola
may elect to pay this sum, with interest, at any time
prior to these two instances . In no event shall the
payment be made later than August 1, 2005 .
c. The City will make a cash payment of $100, 000 to Motorola
for its use toward the various development costs
identified above.
Elgin Area Chamber of Commerce Participation
In addition to the above-mentioned efforts identified for the City,
the Elgin Area Chamber of Commerce will assume the following
responsibilities :
1 . To expedite the hiring and training of 500 workers, and using
the criteria specified above by Motorola, the Chamber of
Commerce Economic Development Department will develop a
screening and hiring process in conjunction with Elgin area
workforce partners, specifically Elgin Community College, the
Illinois Department of Employment Security, the Illinois
Employment Training Center, the Kane County Department of
Employment and Education, and Prairie State 2000 . These
agencies will then coordinate their effort with the training
incentives offered through DCCA and the High Impact Business
program.
2 . The Chamber will compile a list of available child care
facilities to determine whether or not adequate space is
available . If there is an inadequacy of available care, the
Chamber will then proceed with developing options based upon
the requirements to be provided by Motorola .
3 . The Chamber Economic Development staff will assist, wherever
possible, to expedite the closing of this project within the
City of Elgin.
4 . The Chamber will work with Motorola to become a member and an
investor in the Chamber' s Challenge 21 economic development
program.
emk Development Agreement with Motorola
July 20, 2000
Page 5 I
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
Motorola and the Elgin Area Chamber of Commerce.
"L'FINANCIAL IMPACT
The City previously distributed the initial $250, 000 to Motorola.
The remaining $100, 000 payment is available in the Fox Bluff
Corporate Fund and would be charged to account number 270-0000-
791 . 80-98, project number 170004 .
vokli/LEGAL IMPACT
Attached is the proposed Motorola Agreement .
ALTERNATIVES
1 . Amend the agreement to reflect current circumstances and
opportunities .
2 .
Request Motorola return initial payment of $250, 000 and elect
not to participate in the proposed project .
RECOMMENDATION
The authorization of the Motorola Development Agreement is
recommended.
R7,:. .ectfully submitt
:Ik--
/
J.4,ce - . Parker
City Manager
amp
rik
JUL. 20. 2000 10:42AM MOTOROLA NO. 3411 P. 2
rb4
MOTOROLA
July 20,2000 Via Facsimile&Federal Express
Mark Biernacki
Community Development Manager
City of Elgin
150 Dexter Court
Elgin,IL 60120-5555
Re: Revised Development Agreement
Dear Mark:
Attached please find the revised Development Agreement which has been exec ited by
Rick Kriva,Vice President and Director—Real Estate&Development for Motorola,Inc.
Per your instructions,I substituted the new page five which includes the word
"equipment".
As we discussed on the telephone,the Distribution Center business is gearing>p more
quickly than anticipated. Therefore,it may be entirely possible that we will open the
Distribution Center with 600 jobs instead of the anticipated 500 jobs. If this becomes the
case,then our requirement for approximately 100 new full time jobs will be satisfied
upon occupancy and we will provide you with the records for your files. The increase in
jobs upon occupancy would not have happened,but for the new Distribution Center
business and site in Elgin.
Rick Kriva and I plan on attending the City Council meeting on July 26th at 6 pM. If you
could forward directions from 1-90 to the place of the meeting,it would be greatly
appreciated. Thank you for your help in this matter.
Sincerely,
Christine A.Foh
Director of Real Estate Legal Affairs
Enclosure
cc: R.Kriva
1303 East Algonquin Road,76 Floor,Schaumburg,IL 60196
Telephone. 847/576-4887 Main FAX: 847/435.3918
Email: c.foh(gAnotorolacom