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Home My WebLink About01-128 Resolution No. 01-128 RESOLUTION AUTHORIZING EXECUTION OF A FIRST AMENDMENT TO CITY OF ELGIN COOK COUNTY AUTOMOBILE DEALERSHIP INCENTIVE PROGRAM PARTICIPATION AGREEMENT (Elgin Toyota) 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 First Amendment to City of Elgin Cook County Automobile Dealership Incentive Program Participation Agreement on behalf of the City of Elgin with Robert Loquercio Enterprises, d/b/a Elgin Toyota, for participation in the sales tax rebate portion of the City of Elgin Cook County Automobile Dealership Incentive Program, a copy of which is attached hereto and made a part hereof by reference . s/ Ed Schock Ed Schock, Mayor Presented: May 9, 2001 Adopted: May 9, 2001 Omnibus Vote : Yeas 6 Nays : 0 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk FIRST AMENDMENT TO CITY OF ELGIN COOK COUNTY AUTOMOBILE DEALERSHIP INCENTIVE PROGRAM PARTICIPATION AGREEMENT This First Amendment is made and entered into this 1 day of A / G J , 2001, by and between the CITY OF ELGIN, an Illinois municipal corporation (hereinafter referred to as the "City") and ROBERT LOQUERCIO ENTERPRISES a Delaware corporation, doing business as ELGIN TOYOTA (hereinafter referred to as "Elgin Toyota." WITNESSETH WHEREAS, Elgin Toyota, previously agreed to participate in the business retention incentive program for automobile dealerships located within that area of the City of Elgin lying within Cook County under the terms of Ordinance No. T12-96 in an agreement with the City dated 16 July 1997; and WHEREAS, Elgin Toyota determined it no longer desired to participate in the business retention incentive program and wishes to terminate the prior agreement; and WHEREAS, the City Council of the City of Elgin enacted Ordinance No. No. T1- 99 which provides for the establishment of an incentive program for automobile dealerships located within that area of the City of Elgin lying within Cook County; and WHEREAS, Elgin Toyota has made application to the City to participate in the sales tax rebateportion of the incentive program; and P g WHEREAS, the City Council has determined that it is in the best interest of the City to terminate the prior agreement and approve Elgin Toyota's application to participate in the sales tax rebate portion of the program; and WHEREAS, the City of Elgin and Elgin Toyota executed an agreement on March 10, 1999 establishing the terms and conditions of Elgin Toyota's participation in the sales tax rebate component of the City of Elgin Cook County Automobile Dealership Incentive Program; and WHEREAS, the Original Agreement required Elgin Toyota to complete certain minimum capital improvements at the facility before April 30, 2001;and WHEREAS, the Illinois Department of Transportation's reconstruction of Illinois Highway 19 (Chicago Street) required Elgin Toyota to postpone certain renovation and capital improvement plans at the facility; and WHEREAS, Elgin Toyota and the City of Elgin desire to amend the Original Agreement to extend the date for completing the required capital improvements at the Elgin Toyota facility until April 30, 2002. NOW, THEREFORE, for and in consideration of the mutual promises and undertakings as set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 1. Paragraph 4 of the Original Agreement is hereby amended to read as follows: "4. Elgin Toyota and the City agree that the annual average amount of local retail sales tax paid to the City during the time period specified in the prior agreement is one hundred twenty-four thousand, two hundred ninety-five and 00/100 dollars ($124, 295.00), hereafter referred to as the "base rate." In consideration of Elgin Toyota completing, not later than April 30, 2002, minimum capital improvements at the improved real property Elgin Toyota owns at 1200 East Chicago Street, Elgin, Cook County, Illinois, hereafter referred to as the "facility") in an amount in excess of two hundred percent(200%) of the base rate, the City agrees that Elgin Toyota is eligible to receive a retail sales tax rebate in the amount of fifty percent (50%) of any annual increase from the base rate. " 2 2. Paragraph 7 of the Original Agreement is hereby amended to read as follows: "7. In the event Elgin Toyota fails to complete minimum capital improvements at the facility in an amount in excess of two hundred percent(200%) of the base rate before April 30, 2002, all funds paid by the City to Elgin Toyota pursuant to this agreement shall be returned to the City within ten (10) days following the expiration of said twenty-four (24) month period. Upon reimbursing the City for funds received pursuant to this agreement, Elgin Toyota, or any successor in interest permitted under the terms of paragraph 11 of this agreement, shall be eligible to submit an application to participate in the business retention facet of Ordinance No. T1-99." 3. Except as expressly modified in paragraph 1 and paragraph 2 above, the Original Agreement shall remain unchanged and continue in full force and effect. IN WITNESS WHEREOF, the parties have entered into and executed this First Amendment to the Original Agreement on the date and year first written above. CITY OF ELGIN ROBERT LOQUERCIO ENTERPRISES., a Delaware corporation, d/b/a ELGIN TOYOT By: By: / !/ Mayor Robert Loquer« Its President Attest: Attest: 061 City Clerk aurieQui el, Its Secretary-Treasurer 3 , Y • O OF ECC: Cry 0,... .�y` , o .., ;, City of Elgin Agenda Item No. RATED VO E [ of f a April 2 , 2001 ` � tC ffi ( 0 w� 1- G `:. I E Jr,' TO: Mayor and Members of the City Council N .1141;Op --- FROM: Joyce A. Parker, City Manager ECONOMIC GROWTH SUBJECT: Revision of the Cook County Auto Dealership Incentive Agreement with Elgin Toyota PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider amending the existing Cook County Auto Dealership Incentive agreement with Elgin Toyota. BACKGROUND In March, 1999, the City approved a participation agreement with Elgin Toyota in the Cook County Auto Dealership Incentive Program. One of the stipulations in the agreement required that Elgin Toyota complete all capital improvements at their facility within 24 months . The 24 month period will expire this month. Elgin Toyota has requested that the completion deadline be extended to April 2002 . Due to the construction along Route 19, Toyota postponed any renovation plans originally scheduled for the summer of 1999 . Furthermore, due to the delay, their proposed contractor was no longer interested in handling the project . Subsequently, Elgin Toyota has negotiated with Lamp Incorporated of Elgin to perform the construction. All plans are ready to be submitted to the City once the amendment is finalized. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None . 0*(FINANCIAL IMPACT .... This amendment would not affect the previously approved subsidy included within the original agreement . Elgin Toyota is participating in the Sales Tax Rebate portion of the incentive . .. Elgin Toyota - Cook County Auto Dealership Agreement April 2 , 2001 Page 2 which entitles them to receive 50 percent of any sales tax in the excess of their sales tax base . No rebates have been generated to date pending completion of the capital expansion and renovation. Economic Development Incentives are funded with Riverboat Lease Funds, account number 276-0000- 791 . 80-27 . Sufficient funds are included in the five year financial plan to fund these incentives . 1 .J LEGAL IMPACT A revised agreement will need to be completed. ALTERNATIVES Do, not approve the revised agreement . RECOMMENDATION It is recommended that the City Council approve the revised Cook County Auto Dealership Incentive agreement with Elgin Toyota. R spectfully submit d, oyce A. Parker City Manager JRN/ai