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HomeMy WebLinkAbout02-63 Resolution No. 02-63 RESOLUTION AUTHORIZING EXECUTION OF A DEVELOPMENT AGREEMENT WITH DEMI & COOPER ADVERTISING, INC. FOR THE DEVELOPMENT OF ONE DOUGLAS AVENUE 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 Demi & Cooper Advertising, Inc . for the development of an advertising and marketing agency at the property located at One Douglas Avenue, a copy of which is attached hereto and made a part hereof by reference . s/ Ed Schock Ed Schock, Mayor Presented: February 27, 2002 Adopted: February 27, 2002 Omnibus Vote : Yeas : 7 Nays : 0 Attest : s/ Dolonna Mecum _ Dolonna Mecum, City Clerk Ray Moller- Development Agr-Demi & Cooper.wpd Page 1 DEVELOPMENT AGREEMENT This Development Agreement is made and entered into this day of , 2002, by and between the CITY OF ELGIN, an Illinois municipal Y(hereinafter referred to as the,cor oration "City") and DEMI & COOPER ADVERTISING, P INC., an Illinois corporation (hereinafter referred to as "Developer"). WITNESSETH WHEREAS, Developer intends to lease approximately 71 %/ square feet, of the property commonly known as One Douglas Avenue, Elgin, Kane County, Illinois, and legally described on Exhibit A attached hereto (such portion of the property leased by Developer is hereinafter referred to as the "Subject Property"); and WHEREAS, Developer intends to lease, occupy and utilize the Subject Property for the conduct of an Advertising and Marketing Agency (hereinafter referred to as the "Subject Development"); and WHEREAS, Developer, 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 City providing development assistance to Developer for the Subject Development will result in a substantial increase in the City's tax base and 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 development of the Subject Property by the Developer, 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 tax base and employment opportunities within the 1 Ray Moller-Development Agr-Demi &Cooper.wpd Page 2 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 Developer shall develop and utilize the Subject Property as an advertising and marketing agency and occupy same and commence operations at the Subject Property on or before December 31, 2002. 3. That by December 31, 2002 the Developer shall have created and established not less than nine (9) full-time jobs at the Subject Property, each with an annual salary in excess of $40,000, in the following positions: Sales Account Coordinator, Production Manager, Art Director, Controller, Account Executives, Account Supervisor, Vice President and President. 4. That in consideration of Developer's leasing the Subject Property and completing the Subject Development on the Subject Property and providing for the existence of jobs as set forth herein, the City agrees to provide the economic development assistance to Developer as set forth in this paragraph to be used by Developer for costs associated with the Subject Development on the Subject Property. Such economic development assistance from the City to Developer for the Subject Development shall be provided to Developer as follows: In the event of and upon Developer's completion, occupancy of and commencing operations of the Subject Development at the Subject Property on or before December 31, 2002, as required in the preceding Paragraph 2 hereof, and in the event of Developer establishing not less than nine (9) full-time jobs at the Subject Development on or before December 31, 2002, as required in the preceding Paragraph 3 hereof, the City shall pay to the Developer the sum of $1,000 for each of such full-time jobs created and established by the Developer at the Subject Development on the Subject 2 Ray Moller- Development Agr-Demi & Cooper.wpd Page 3 Property with the total monies to be paid by the City to the Developer pursuant to this agreement not to exceed $9,000. The City shall pay such monies not to exceed $9,000 to the Developer upon receipt of acceptable documentation verifying the existence of such full-time jobs at 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 Developer prior to -73 9 1I0/12 1 '3/ , 2002. 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 $9,000 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 Developer shall continue with its operations at the Subject Development on the Subject Property for a period of ten (10) years following Developer 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 Developer as set forth herein is expressly contingent upon Developer's development of the Subject Development on the Subject Property as set forth herein. In the event Developer fails to complete, occupy and commence operations of the Subject Development on the Subject Property on or before December 31, 2002, as required in the preceding Paragraph 2 hereof and/or in the event Developer 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 Developer 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 any economic development assistance to Developer for the Subject Development pursuant to this agreement or otherwise, and that the Developer shall reimburse the City in 3 Ray Moller- Development Agr-Demi &Cooper.wpd Page 4 full any funds distributed to the Developer 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, 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 a like 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 DEVELOPER: City of Elgin Demi & Cooper Advertising, Inc. 150 Dexter Court One Douglas Avenue Elgin, IL 60120-5555 Elgin, IL 60120 Attention: City Manager Attention: Charles Fall 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 Developer 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. 4 Ray Moller Development Agr-Demi & Cooper.wpd Page 5 13. That the City and Developer 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. 14. That notwithstanding any other provision of this agreement it is expressly agreed and understood by the Developer and the City that the development of the Subject Property by the Developer shall be in accordance and compliance with all applicable federal, state, city and other requirements of law. Developer 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 development 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 Developer 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 Developer in this agreement and the City is the prevailing party in such action, the City shall also be entitled to recover from Developer 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 Developer's compliance with the requirements of the preceding Paragraphs 2 and 3 hereof, Developer shall provide the City reasonable data and records of 5 Ray Moller- Development Agr-Demi & Cooper.wpd Page 6 Developer which documents Developer'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 DEMI & COOPER ADVERTISING, Inc., corporation an Illinois corporation By By E c ock, Mayor Charles FA!'" Title: rre s,rf e't Attest: Qtl-f}gn,%"-C2 /4-J2- A 44,-- Dolonna Mecum, City Clerk F:\Legal DeptWgreement\Development Agr-Demi&Cooper.wpd 6 847-381 -6518 p. 3 1;7;793 12: 50p Fuller and Herres EXHIBIT A PARCEL 1: THE EAST 1/3 OF LOT 6 (EXCEPT THE NORTHERLY 10 rFEI THEREOF)IN BLOCK 16 OF THE ORIGINAL TOWN OF ELGIN, ON THE EAST SIDE OF THE FOX RIVER, IN THE CITY OF ELGIN, KANE COUNTY, ILLINOIS. PARCEL 2: THE EAST 22 FEET OF THE WEST 44 FEET(FRONTING 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 COUNTY, ILLINOIS. PARCEL 3: THE WEST 1/3 OF LOT 6 (EXCEPT THE NORTH 9 FEET THEREOF) IN BLOCK 16 OF THE ORIGINAL TOWN OF ELGIN ON THE EAST SIDE OF FOX RIVER, IN THE CITY OF ELGIN, KANE COUNTY, ILLINOIS. ` City of Elgin Agenda Item No. 0 ATED0" C ' •� nil G �4.4 4:I: November 9, 2001 N NEIGHBORHOOD VITALITY TO: Mayor and Members of the City Council FROM: Joyce A. Parker, City Manager SUBJECT: Jobs Incentive Grant/Demi & Cooper Advertising One Douglas Avenue PURPOSE The purpose of this memorandum is to present to the Mayor and members of the City Council a proposal from staff to provide Demi & Cooper Advertising (D&C) a jobs grant . BACKGROUND D&C leased space at One Douglas Avenue in 1999 . D&C is an advertising and marketing agency that also provides web site hosting services . D&C recently was selected as the advertising and marketing agency to provide creative service for the Enhancing Elgin Program coordinated by the Elgin Area Chamber of Commerce . When discussing the advantages of locating their business in Elgin with non-city staff personnel , they were informed of the e-Elgin incentive program. D&C personnel did not understand that an application had to be filed and approved by the City Council prior D&C followed most the to the initiation of funded work. For part, the program guidelines for securing multiple quotes for proposed work. Unfortunately, D&C pr oceeded with th e work and th en submitted the improvements for payment . Under the e-Elgin incentive program, D&C would have been eligible for a grant of $8, 896 . 57 . However, payment was denied because the program guidelines request advance approval . Had D&C been aware of potential incentive opportunities when they were evaluating their options of locating in Elgin' s Center City, they would also have been considered eligible for the Jobs Incentive Program. In prior cases, the City has provided a one- time payment of $1, 000 for jobs paying an annual salary in excess of $40, 000 per year. Currently, nine positions at D&C have salaries in excess of $40 , 000 . Jobs Incentive Grant November 9, 2001 Page 2 Position Salary Sales Account Coordinator $40, 000 Production Manager 50 , 000 Art Director 55, 000 Controller 56, 000 Account Executive 62 , 000 Account Executive 68, 700 Account Supervisor 70 , 000 Vice President 75, 000 President 75, 000 Nine positions currently employed at D&C meet or exceed the $40, 000 annual salary qualification for the new job creation incentive of $1, 000/job. In light of the confusion surrounding the application for the e- Elgin incentive, staff is proposing that D&C be considered for participation in the Jobs Incentive Program. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED Development Review Team which includes representatives from the Elgin Area Chamber of Commerce . IMPACT DIVE,WANCIAL The 2000 budget included $653 , 500 for economic development incentives . To date, all monies have been allocated and none remain. The total incentive would equal $9, 000 and would be charged against account number 276-0000-791 . 80-27 . Adequate funds would need to be included within the proposed 2002 budget in order to fund this initiative . LEGAL IMPACT Vi\AQ/ 1 An agreement will be required. ALTERNATIVES 1 . Fund the proposed jobs assistance application. 2 . Do not fund the proposed jobs assistance application. Jobs Incentive Grant, Demi & Cooper November 9, 2001 Page 3 RECOMMENDATION Staff recommends approval of the participation of Demi & Cooper in the Jobs Incentive Program in the amount of $9, 000 . Respectfully submitted, pyCL. Joyce A. Parker City Manager RHM: sp