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HomeMy WebLinkAbout00-88 1 Resolution No. 00-88 RESOLUTION ADOPTING THE E-ELGIN INCENTIVE PROGRAM BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that it hereby adopts the e-elgin Incentive Program dated March 27, 2000 as the city' s policy for offering assistance to property and business owners for expenses related to technology infrastructure improvements, moving expenses and advertising costs, a copy of which is attached. s/ Ed Schock Ed Schock, Mayor Presented: April 12 , 2000 Adopted: April 12 , 2000 Omnibus Vote : Yeas 6 Nays 0 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk March 27, 2000 e-elgin Incentive Program I . INTRODUCTION II . TARGET AREA III. TYPE OF ASSISTANCE IV. OWNERSHIP V. ELIGIBLE IMPROVEMENTS VI . INELIGIBLE IMPROVEMENTS VII . APPLICATION PROCESS AND ADMINISTRATIVE PROCEDURES VIII . CORRESPONDENCE IX. APPLICATION I . INTRODUCTION The City of Elgin has committed to pursue and promote opportunities to further both economic growth and community development in Elgin by taking advantage of the shift in the national economy toward e- commerce, the Internet and advancements in telecommunication areas . In 2000 the City authorized the formation of a Technology Action Team and a partnering grant program for center city commercial property owners and downtown business owners who are involved in technology related business efforts . The e-elgin Incentive program offers assistance to property and business owner ' s for expenses related to technology infrastructure improvements, moving expenses and advertising costs . Under the program, property owners or business owners within the target area are eligible to apply for grants related to the above referenced expenses . II. TARGET AREA A map indicating the program' s target area is presented as Exhibit A. The buildings and/or businesses for which assistance through the program is sought must be located within the target area . III. TYPE OF ASSISTANCE After approval in the program, property or business owners may receive the following levels of assistance : Downtown commercial property owners and downtown business owners can qualify for up to 50o of capital costs not to exceed a total expenditure of $60 , 000 ($30 , 000 maximum City Contribution) in funding for technology infrastructure improvements that include installation of new Category 5 or better wiring, upgrade to Category 5 or better wiring, backup power generators for technology equipment, high speed Internet access capabilities including necessary hardware or other technology infrastructure improvements approved by the Technology Action Team and City Council . (Does not include computer equipment, but could include routers for DSL service) . High-tech businesses relocating to downtown Elgin and downtown- based technology companies that are growing and looking to remain in downtown Elgin, are eligible for 10096 rebate of the service and installation fees associated with relocation costs for DSL and T-i service, with a not to exceed limit of $5, 000 . 00 . Downtown commercial property owners and downtown businesses are eligible for up to $2 , 500 annually in co-op advertising funds when they promote e-elgin in their ads . This grant will pay for 250 of advertising placement cost up to $2 , 500 annually. To qualify, ads must bear the e-elgin logo and tag line as provided by the Technology Action Team and ads must appear in newspapers and magazines of general distribution. Participation in the advertising assistance shall be reviewed on an annual basis by the program administrator. IV. OWNERSHIP Eligible applicants may be the owner of a commercial building or the owner of a technology based business in the target area. Business owners who are tenants of a building for which improvements are planned must provide written consent from the building owner of all proposed improvements . The tenant applicant must have at least three-years remaining on their lease at the location in order to apply under the program. V. ELIGIBLE IMPROVEMENTS The e-elgin Incentive Program is intended to fund improvements ranging from capital cost assistance, reimbursing moving expenses and advertising assistance . Eligible improvements include : • New category 5 or better wiring. • Upgrade to category 5 or better wiring. • Backup generators . • Hardware for highspeed Internet access . (excluding computers) • Other Technology infrastructure improvements . • Service fees related to DSL and T1 relocation. • Advertising expense assistance . All work funded under the e-elgin Incentive Program is required to conform to applicable code and ordinances . VI . INELIGIBLE IMPROVEMENTS It is not the purpose of the program to finance ongoing improvements which could be considered part of a building ' s routine maintenance or redevelopment . Building additions shall not be funded. Each eligible improvements shall be funded by the program only once . Ineligible improvements are improvements to the building interior (with the exception of those items identified in section V) or exterior maintenance work such as roof repairs/replacements . VII . APPLICATION PROCESS AND ADMINISTRATIVE PROCEDURES 1 . Applicants will receive a copy of the program guidelines and application form. The completed application should be submitted to the Director of Economic Development and Business Services . 2 . Applications will be reviewed by staff for compliance with all program guidelines . A site inspection will be completed by the City of Elgin ' s Code Administration staff for an inventory of any violations of the property maintenance, building, or zoning codes . Applicants do not have to be in complete code compliance at the time of application for the program but must be compliant before reimbursement can be made to the business . 3 . If the City staff determines an application complies with all program guidelines and determines sufficient funding is available for the proposed project, the completed application and recommendation for a grant award will be forwarded to the City Council . The City Council in its sole discretion shall determine whether to approve and authorize execution of a grant agreement . In the event City staff determines to deny an application for this program, an applicant may appeal such denial by City staff to the City council . To pursue such an appeal, the applicant shall notify the program coordinator in writing (by return receipt mail) with a request to appeal the City staff ' s denial of the application within ten (10) working days of receiving notice of the disapproved application. The City Council will hear any such appeal and may in its sole discretion decide to uphold the staff decision or may decide to proceed with the authorization and execution of a grant agreement . 4 . No reimbursement shall be made for work initiated or completed prior to the execution of a grant agreement . 5 . All required work shall be completed within 3 months of execution of the grant agreement . 6 . Following the approval of the application and after the applicant has received at least two bids for each of the approved work items, the applicant shall notify the Program Coordinator as to the contractor selected, the contract amount and the anticipated date of project completion. Copies of all bids and proposals shall be submitted promptly to the Program Coordinator. The program shall fund an amount equal to the low bid for each work item. The applicant may not serve as his/her own contractor. 7 . When applicable, building permits shall be obtained by the applicant before the work begins. . All projects must apply for a certificate of occupancy, if none exists for current uses in the building. Questions regarding permit requirements should be directed to the City' s Department of Code Administration. 8 . After the agreement has been executed and all necessary permits have been issued, work may proceed. All change orders must be approved by the Program Coordinator in writing. 9 . After completion of the project, copies of all bids, contracts, invoices, lien waivers, and canceled checks must be submitted to the Program Coordinator. City staff will inspect the work for compliance with City codes and conformance with any plans approved for the project . Payment will be issued only upon completion of all work items as originally approved. Major changes or elimination of certain items in the approved plans must be approved in advance by City staff . Payment shall be made to the applicant within 30 days of final project closeout by the City. VIII. CORRESPONDENCE All questions anc comments regarding this program shall be directed to: Raymond H. Moller Director of Economic Development and Business Services 150 Dexter Court Elgin, IL 60120 IX. NO VESTED RIGHTS The provisions of this program are intended to provide guidelines for considering applications from persons or organizations seeking to participate in the e-elgin Incentive Program. The City Council of the City of Elgin, in its sole and exclusie discretion, shall determine whether to provide any of the incentives contemplated in this program after duly considering the cost incurred by the City of Elgin for providing the incentives and after considering the relative gain derived by the public from those incentives . The City Council of the City of Elgin further expressly reserves the right and option to decide at any time whether or not to provide continued or additional funding for this program. The creation or existence of this program shall not be construed to create or provide any vested rights in any person or organization to obtain approval of a grant application, a grant agreement or funding thereunder. e-elgin Incentive Application Form 1 . Applicant (Name) Home Address (Home Address) (City) (State) (Zip) (Phone) 2 . Building or establishment for which the rebate is sought : (Street Address) Applicant is : Owner Tenant If tenant, what is term of lease? 3 . Proposed use of program: New Category 5 or better wiring Upgrade to Category 5 wiring or better Backup Generator Highspeed Internet access hardware Moving Expenses Advertising Other Technology Infrastructure (please specify) 4 . Cost Elements A. Capital Costs $ B . Service Fees $ C. Advertising $ Total Cost $ 5 . Statement of Understanding. B. The applicant (undersigned) agrees to comply with the guidelines and procedures of the e-elgin Incentives Program and the conceptual design and outline specifications as agreed to by the applicant and the application review team. C. The applicant understands that the applicant must submit detailed cost documentation, copies of any permits, bids, contracts and invoices and contractor ' s final waivers of lien upon completion of the approved improvements . Applicant Signature If the applicant is other than the owner, the following line must be completed: I certify that I , the owner of the property at do authorize the applicant to apply for a rebate under the e-elgin Incentive Program and undertake the approved improvements . Date (Owners Signature) FOR OFFICE USE ONLY Date Application Received: Application Fee Paid: Yes No If yes, Check Cash Application I .D. Number: Rebate Approved: Date Total Estimated Project Cost Percent Applied for Rebate Total Amount of Rebate Rebate Denied: Date Reason (Program Coordinator) Return To : Raymond H. Moller Director of Economic Development and Business Services 150 Dexter Court Elgin, IL 60120 44( • OF FCC City of Elgin Agenda Item No. 1P -lT[D FFv. March 22, 2000 TO: Mayor and Members of the City Council FROM: Joyce A. Parker, City Manager SUBJECT: e-elgin Incentive Program Guidelines PURPOSE The purpose of this memorandum is to present to the Mayor and members of the City Council proposed guidelines for the e-elgin Incentive Program. BACKGROUND The Mayor and City Council members tentatively approved the development of an e-elgin Incentive Program that would include the following incentives for technology related companies locating within the downtown area: 1 . Downtown commercial property owners and downtown business owners can qualify for up to 50% of $30, 000 in capital costs for technology infrastructure improvements that include installation of new Category 5 or better wiring, upgrade to Category 5 or better wiring, backup power generators for technology equipment, high speed Internet access capabilities including necessary hardware or other technology infrastructure improvements approved by the City Council . (Does not include computer equipment, but could include routers for DSL service) . 2 . High-tech businesses relocating to downtown Elgin and downtown-based technology companies that are growing and looking to remain in downtown Elgin, are eligible for 100% rebate of the service and installation fees associated with relocation costs for DSL and T-1 service, with a not to exceed limit of $5, 000 . 00 . e-elgin Incentive Program Guidelines March 22 , 2000 Page 2 3 . Downtown commercial property owners and downtown businesses are eligible for up to $2 , 500 annually in co-op advertising funds when they promote e-elgin in their ads. This grant will pay for 25% of advertising placement cost up to $2 , 500 annually. To qualify, ads must bear the e-elgin logo and tag line as provided by the Technology Action Team. Participation in the advertising assistance shall be reviewed on an annual basis by the program administrator. OWNERSHIP Eligible applicants may be the owner of a commercial building or the owner of a technology based business in the target area. Business owners who are tenants of a building for which improvements are planned must provide written consent from the building owner of all proposed improvements. The tenant applicant must have at least three years remaining on their lease at the location in order to apply under the program. ELIGIBLE IMPROVEMENTS The e-elgin Incentive Program is intended to fund improvements ranging from capital cost assistance, reimbursing moving expenses and advertising assistance. Eligible improvements include : • New category 5 or better wiring. • Upgrade to category 5 or better wiring. • Backup generators . • Hardware for highspeed Internet access (excluding computers) . • Other Technology infrastructure improvements . • Service fees related to DSL and T-1 relocation. • Advertising expense assistance . All work funded under the e-elgin Incentive Program is required to conform to applicable code and ordinances . The guidelines and application procedures outlined in attachment A are similar to those adopted by the City Council for the Neighborhood Business Program. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED Representatives from the Chamber of Commerce, the Downtown Neighborhood Association and technical interest have been part of the review process for formulating the incentive package . t e-elgin Incentive Program Guidelines March 22 , 2000 Page 3 t)k— FINANCIAL IMPACT Dollars available in the Economic Development Incentive expense line item, account number 276-0000-791 . 80-26, could be used to fund any grants under the e-elgin Incentive Program. LEGAL IMPACT None . ALTERNATIVES 1 . Structure the program as outlined. 2 . Amend the proposed program. 3 . Choose not to proceed with the adoption of an e-elgin Incentive Program. RECOMMENDATION It is recommended that the proposed e-elgin Incentive Program as outlined be adopted. R- t .ectfully submit Ic d J•i e A? Parker City Manager SLP Attachment • March 17, 2000 e-elgin Incentive Program I. INTRODUCTION II . TARGET AREA III . TYPE OF ASSISTANCE IV. OWNERSHIP V. ELIGIBLE IMPROVEMENTS VI . INELIGIBLE IMPROVEMENTS VII. APPLICATION PROCESS AND ADMINISTRATIVE PROCEDURES VIII . CORRESPONDENCE IX. APPLICATION I . INTRODUCTION The City of Elgin has committed to pursue and promote opportunities to further both economic growth and community development in Elgin by taking advantage of the shift in the national economy toward e- commerce, the Internet and advancements in telecommunication areas . In 2000 the City authorized the formation of a Technology Action Team and a partnering grant program for center city commercial property owners and downtown business owners who are involved in technology related business efforts . The e-elgin Incentive program offers assistance to property and business owner' s for expenses related to technology infrastructure improvements, moving expenses and advertising costs . Under the program, property owners or business owners within the target area are eligible to apply for grants related to the above referenced expenses . II . TARGET AREA A map indicating the program' s target area is presented as Exhibit A. The buildings and/or businesses for which assistance through the program is sought must be located within the target area. III. TYPE OF ASSISTANCE After approval in the program, property or business owners may receive the following levels of assistance : Downtown commercial property owners and downtown business owners can qualify for up to 500 of capital costs not to exceed a total expenditure of $30, 000 ($15, 000 maximum City Contribution) in funding for technology infrastructure improvements that include installation of new Category 5 or better wiring, upgrade to Category 5 or better wiring, backup power generators for technology equipment, high speed Internet access capabilities including necessary hardware or other technology infrastructure improvements approved by the Technology Action Team and City Council . (Does not include computed equipment, but could include routers for DSL service) . High-tech businesses relocating to downtown Elgin and downtown- based technology companies that are growing and looking to remain in downtown Elgin, are eligible for 100o rebate of the service and installation fees associated with relocation costs for DSL and T-1 service, with a not to exceed limit of $5, 000 . 00 . Downtown commercial property owners and downtown businesses are eligible for up to $2, 500 annually in co-op advertising funds when they promote e-elgin in their ads . This grant will pay for 25% of advertising placement cost up to $2, 500 annually. To qualify, ads must bear the e-elgin logo and tag line as provided by the Technology Action Team and ads must appear in newspapers and magazines of general distribution. Participation in the advertising assistance shall be reviewed on an annual basis by the program administrator. IV. OWNERSHIP Eligible applicants may be the owner of a commercial building or the owner of a technology based business in the target area. Business owners who are tenants of a building for which improvements are planned must provide written consent from the building owner of all proposed improvements . The tenant applicant must have at least three-years remaining on their lease at the location in order to apply under the program. V. ELIGIBLE IMPROVEMENTS The e-elgin Incentive Program is intended to fund improvements ranging from capital cost assistance, reimbursing moving expenses and advertising assistance. Eligible improvements include : • New category 5 or better wiring. • Upgrade to category 5 or better wiring. • Backup generators . • Hardware for highspeed Internet access. (excluding computers) • Other Technology infrastructure improvements . • Service fees related to DSL and T1 relocation. • Advertising expense assistance . All work funded under the e-elgin Incentive Program is required to conform to applicable code and ordinances . VI. INELIGIBLE IMPROVEMENTS It is not the purpose of the program to finance ongoing improvements which could be considered part of a building' s routine maintenance or redevelopment . Building additions shall not be funded. Each eligible improvements shall be funded by the program only once. Ineligible improvements are improvements to the building interior (with the exception of those items identified in section V) or exterior maintenance work such as roof repairs/replacements . VII . APPLICATION PROCESS AND ADMINISTRATIVE PROCEDURES 1 . Applicants will receive a copy of the program guidelines and application form. The completed application should be submitted to the Director of Economic Development and Business Services . 2 . Applications will be reviewed by staff for compliance with all program guidelines . A site inspection will be completed by the Cityof Elgin' s Code Administration staff for an inventory of any gcodes . or zoning violations of the property maintenance, building, Applicants do not have to be in complete code compliance at the time of application for the program but must be compliant before reimbursement can be made to the business . 3 . If the City staff determines an application complies with all program guidelines and determines sufficient funding is available for the proposed project, the completed application and recommendation for a grant award will be forwarded to the City Council . The City Council in its sole discretion shall determine whether to approve and authorize execution of a grant agreement . In the event City staff determines to deny an application for this program, an applicant may appeal such denial by City staff to the City council . To pursue such an appeal, the applicant shall notify the program coordinator in writing (by return receipt mail) with a request to appeal the City staff ' s denial of the application within ten (10) working days of receiving notice of the disapproved application. The City Council will hear any such appeal and may in its sole discretion decide to uphold the staff decision or may decide to proceed with the authorization and execution of a grant agreement . 4 . No reimbursement shall be made for work initiated or completed prior to the execution of a grant agreement . 5 . All required work shall be completed within 3 months of execution of the grant agreement . 6 . Following the approval of the application and after the applicant has received at least two bids for each of the approved work items, the applicant shall notify the Program Coordinator as to the contractor selected, the contract amount and the anticipated date of project completion. Copies of all bids and proposals shall be submitted promptly to the Program Coordinator. The program shall fund an amount equal to the low bid for each work item. The applicant may not serve as his/her own contractor. 7 . When applicable, building permits shall be obtained by the applicant before the work begins. All projects must apply for a certificate of occupancy, if none exists for current uses in the building. Questions regarding permit requirements should be directed to the City' s Department of Code Administration. 8 . After the agreement has been executed and all necessary permits have been issued, work may proceed. All change orders must be approved by the Program Coordinator in writing. 9 . After completion of the project, copies of all bids, contracts, invoices, lien waivers, and canceled checks must be submitted to the Program Coordinator. City staff will inspect the work for compliance with City codes and conformance with any plans approved for the project . Payment will be issued only upon completion of all work items as originally approved. Major changes or elimination of certain items in the approved plans must be approved in advance by City staff . Payment shall be made to the applicant within 30 days of final project closeout by the City. VIII . CORRESPONDENCE All questions anc comments regarding this program shall be directed to: Raymond H. Moller Director of Economic Development and Business Services 150 Dexter Court Elgin, IL 60120 IX. NO VESTED RIGHTS The decision of whether to approve a grant application and to enter into a grant agreement shall at all times remain in the sole discretion of the City Council, including but not limited to, based upon the appropriateness of a particular project or upon the decision to provide continued or additional funding for this program. The creation or existence of this program shall not be construed to create any vested rights in any person or organization to obtain approval of a grant application, a grant agreement or funding thereunder. e-elgin Incentive Application Form 1 . Applicant (Name) Home Address (Home Address) (City) (State) (Zip) (Phone) 2 . Building or establishment for which the rebate is sought : (Street Address) Applicant is : Owner Tenant If tenant, what is term of lease? 3 . Proposed use of program: New Category 5 or better wiring Upgrade to Category 5 wiring or better Backup Generator Highspeed Internet access hardware Moving Expenses Advertising Other Technology Infrastructure (please specify)__ 4 . Cost Elements A. Capital Costs $ B. Service Fees $ C. Advertising $ Total Cost $ 5 . Statement of Understanding. B . The applicant (undersigned) agrees to comply with the guidelines and procedures of the e-elgin Incentives Program and the conceptual design and outline specifications as agreed to by the applicant and the application review team. C. The applicant understands that the applicant must submit detailed cost documentation, copies of any permits, bids, contracts and invoices and contractor ' s final waivers of lien upon completion of the approved improvements . Applicant Signature If the applicant is other than the owner, the following line must be completed: I certify that I, the owner of the property at do authorize the applicant to apply for a rebate under the e-elgin Incentive Program and undertake the approved improvements . Date (Owners Signature) FOR OFFICE USE ONLY Date Application Received: Application Fee Paid: Yes No If yes, Check Cash Application I .D. 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