HomeMy WebLinkAbout03-193 (2) I
r
Resolution No. 03-193
RESOLUTION
AUTHORIZING EXECUTION OF A DEVELOPMENT AGREEMENT WITH
BLUFF CITY MATERIALS, INC. , GIFFORD 300, LLC AND COPART, INC.
(West of State Route 25 and South of U. S. Route 20)
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 Bluff City Materials,
Inc . , Gifford 300, LLC and Copart, Inc . for the development of
property west of State Route 25 and south of U. S. Route 20, a copy
of which is attached hereto and made a part hereof by reference .
s/ Ed Schock
Ed Schock, Mayor
Presented: June 25, 2003
Adopted: June 25, 2003
Omnibus Vote : Yeas : 7 Nays : 0
Attest :
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
4
DEVELOPMENT AGREEMENT
This Agreement, dated as of this 25th day of June, 2003 between the CITY OF ELGIN, Illinois, an
Illinois municipal corporation(the"City"), BLUFF CITY MATERIALS, INC., an Illinois corporation
and GIFFORD 300, LLC, an Illinois limited liability company(said last two mentioned entities being
hereinafter collectively called the"Owner"), and COPART, INC., a California corporation("Copart").
I. Definitions
As used herein, the following terms shall have the following meanings:
"Bartlett Property"shall mean those tracts of land comprising approximately 311 acres, situated in
unincorporated Cook and Kane Counties, Illinois, as more particularly described on Exhibit 1 attached
hereto and as labeled "Future Adjacent Property"on the Site Map attached hereto.
"Bartlett"shall mean the Village of Bartlett, Illinois, an Illinois municipal corporation.
"Copart Parcel" shall mean that approximate 42 acre parcel within the Elgin Property(hereafter
defined), as depicted and labeled"Area A"on the Site Map (hereafter defined).
"Copart Expansion Parcel"shall mean that approximate 87.6 acre parcel situated within the Elgin
Property and located immediately south of and adjacent to the Copart Parcel, as depicted and labeled
"Area B"on the Site Map.
"Copart Operations"shall mean the business activity involving(i) the storage of damaged,
repossessed or stolen vehicles and(ii)the re-sale of same at wholesale.
"Copart Sales Contract" shall mean that certain contract between Owner and Copart pursuant to
which the Owner has agreed to sell, and Copart has agreed to purchase the Copart Parcel (with an option
to purchase the Copart Expansion Parcel).
"Development Application"shall mean the Second Amended City of Elgin Development
Application filed by the Owner and Copart and assigned City petition number 23-03, a copy of which is
attached hereto as Exhibit 2.
"Elgin Property" shall mean that approximate 347 acre parcel of real estate legally described on
Exhibit 3 attached hereto, and depicted and labeled Areas A,B, C, D &E on the Site Map.
"Planned Development"means, collectively,the map amendment and zoning authorizations
requested in the Development Application.
As used herein"Subterranean Mining" shall mean the conduct, at depths not less than approximately 250
feet below the surface of the ground, of mining and removal of limestone, galena, gravel, sand and other
minerals (collectively"Resources"),via blasting and other means, and, as incidental or accessory
operations to the foregoing or in connection therewith(i)the stockpiling and sale, at wholesale or retail, of
the Resources; (ii)the screening, crushing,mixing,washing, grinding and storage of the Resources in
F:Uxgal Dept\Agreement\Development Agreement-Bluff City Materials.doc 1
f
' t
connection with the preparation of the same for sale; (iii) the construction,maintenance and operation of
such buildings, structures, conveyors, and other moveable and immovable equipment necessary to carry
out the foregoing, including underground passages, shafts or entries through, to and from other mines and
lands adjacent to or on the property, (iv)the storage of explosives and such other equipment necessary to
carry out the mining, (v) the establishment of subterranean offices, equipment storage and equipment
repair facilities, and(vi)the establishment on the surface of secondary processing equipment, stockpiles
of processed Resources, and scales and offices used in connection with the sale of such Resources.
Blasting on the surface shall be permitted only to the extent required to construct the"portal(s)" leading
from the surface to the subterranean mining operation.
"Subterranean Mining Royalty" shall have the meaning as set forth in paragraph 5(a)below.
"Surface Mining"shall mean commercial mining operations, including (i) the extraction of sand,
gravel,topsoil or other aggregates (collectively the"Surface Minerals")by removing the overburden lying
above the natural deposits thereof, and extracting directly from the natural deposits thereby exposed, (ii)
the screening, crushing, grinding, mixing,washing, storage and sale of the Surface Minerals, (iii)the
crushing, recycling and resale of imported concrete and asphalt, (iv) reclamation through the use of clean
construction and demolition debris (as defined by 415 ILCS 5/3.160 as amended from time to time of the
Illinois Environmental Protection Act), and(v)the operation and construction of all buildings, structures,
conveyors and other equipment or improvements necessary to accomplish any of the foregoing. Surface
Mining shall not include blasting.
"Site Map"shall mean that map of the Elgin Property showing its proposed zoning subcomponent
parcels attached hereto as Exhibit 4.
II. Recitals
A. Owner is the owner of the Elgin Property, which is situated within the corporate limits of
the City.
B. Owner(or an affiliated company) is also the owner of the Bartlett Property. Owner plans
to request of Bartlett that it(i) annex the Bartlett Property and(ii) grant the authority to conduct
Subterranean Mining with respect to the Bartlett Property.
C. Owner has filed the Development Application requesting that the City enact certain
ordinances with respect to the Elgin Property(which, if approved,will include, inter alia, the right to
conduct Subterranean Mining under the Elgin Property).
D. The City is willing to consider the enactment of said Planned Development only on the
conditions set forth herein.
III. Consideration and Agreement
In consideration of the mutual observance by the parties of their respective covenants and
obligations as set forth herein, and of$10.00 and other good and valuable consideration, the receipt and
sufficiency of which are hereby mutually acknowledged, it is agreed as follows.
F:\Legal Dept\Agreement\Development Agreement-Bluff'City Materials.doc 2
1. Incorporation of Definitions and Recitals. The definitions and recitals set forth above
are hereby incorporated herein by reference.
2. Filine of Development Application.The City acknowledges that the Owner has caused to
be filed with the City the Development Application.
3. Prompt Administrative Review. The City agrees that it shall, without undue delay,
cause the Development Application to be published for the earliest practicable public hearing.
Additionally,promptly following the completion of such public hearing, the corporate authorities of the
City shall consider and act upon said Development Application. It is acknowledged that the
administration of the City has previously reviewed the Development Application and has recommended
the approval of such Development Application without modifications. However,nothing herein shall
obligate the corporate authorities of the City to approve the Development Application.
4. Copart Host Fee.
(a) Copart agrees that if the Development Application is approved by the corporate authorities
of the City and the City enacts the ordinances therein requested,then in consideration
thereof Copart shall pay to the City as a condition to the conduct of Copart Operations on
the Copart Parcel (and the Copart Expansion Parcel), on an ongoing quarterly basis, a sum
equal to the product of(a) the Base Vehicle Charge (as hereafter defined)multiplied by
(b) the number of automobiles sold during the preceding quarter(such sum being
hereinafter called the"Copart Hosting Fee"). As used herein, the term"Base Vehicle
Charge"shall mean, and be calculated as follows:
(i) Commencing with the date ("Commencement Date") Copart opens for
business on the Copart Parcel and until the fifth anniversary of such
Commencement Date, the Base Vehicle Charge shall be Two Dollars
($2.00)per vehicle.
(ii) On the 5th anniversary of the Commencement Date, and on each 5-year
anniversary thereafter,the Base Vehicle Charge shall be increased by that
percentage of the previous Base Vehicle Charge in effect for the prior
period which equals the aggregate of each annual increase (if any) in the
Cost of Living(hereafter defined) over the preceding five years, limited,
however,to not more than (A) a 2%Cost of Living increase in any one
year and(B) an aggregate 10% increase for the entire 5-year period as to the
previously established Base Vehicle Charge.
For example, assume the Commencement Date is January 1,2004. Also assume
that the Cost of Living increases by the following percentages in each of the
following years:
During 2004 2%
During 2005 1%
During 2006 3%
During 2007 2%
F:\Legal Dept\Agreement\Development Agreement-Bluff City Materials.doc 3
During 2008 2%
As such, commencing on January 1, 2009, the Base Vehicle Charge of$2.00
would be increased by 9%(18 cents)to$2.18, and this new Base Vehicle Charge
would be in effect for the following 5-year period, until January 1, 2014.
By way of further example, assume that the Cost of Living increases by the
following percentages in each of the following years:
During 2009 2%
During 2010 3%
During 2011 4%
During 2012 2%
During 2013 2%
As such, commencing on January 1, 2014, the Base Vehicle Charge of$2.18
would be increased by 10%(22 cents)to$2.40, and this new Base Vehicle Charge
would be in effect for the following 5-year period, until January 1, 2019.
As used herein, the term"Cost of Living"shall mean, and be determined with reference to
the so-called Consumer Price Index for All Urban Consumers-All Items (1967 = 100) as
published by the Bureau of Labor Statistics of the United States Department of Labor(the
"Department",with such index being hereinafter called the "CPIU"). If the CPIU is
discontinued, then(A)the parties shall use such index as (i)may be published by the
Department and(ii) is most similar to the CPIU, and otherwise (B)the parties shall use
such other index as may be mutually acceptable to them.
The calculation of the Copart Hosting Fee shall be based upon the reports("State
Reports") filed with the State of Illinois by Copart with respect to the sale of automobiles
from such facility, copies of which State Reports shall be delivered by the operator to the
City within sixty(60) days following the close of each calendar quarter. The payment of
the Copart Hosting Fee shall be made to the City by Copart within sixty(60) days
following the close of each calendar quarter. The City shall have the right to review
Copart's records pertaining to automobiles sold from the Copart Parcel upon reasonable
prior notice to Copart. Such record review shall take place on the Copart Parcel and shall
not be requested by the City more frequently than once each calendar quarter.
(b) It is the intention of the parties hereto that Copart and any successor in title with respect to
the Copart Parcel shall not be subject to a Copart Hosting Fee payment requirement that is
greater than the level of the fees demanded or otherwise received by the City from any
other party conducting business activities similar to Copart. Accordingly, and
notwithstanding anything to the contrary set forth herein or in the Development
Application, if the City hereafter grants to any other party(a"Third Party") the right to
conduct business operations similar to that of Copart, the Copart Hosting Fee payable
hereunder shall be adjusted to the extent required to insure that the Copart Hosting Fee
payable hereunder is not more (on a per vehicle basis) than the fees required to be paid by
the Third Party to the City in connection with the Third Party's conduct of business
operations similar to that of Copart or its successors in title. If the Third Party is not
required to pay any fees to the City,then Copart(or its successors) shall be relieved of any
F:\Legal Dept\Agreement\Development Agreement-Bluff City Materials.doc 4
f
obligation to pay the Copart Hosting Fee to the City hereunder. Nothing herein shall allow
the City to charge a Copart Hosting Fee greater than $2.00 per vehicle (subject to periodic
Cost of Living adjustment as provided herein).
(c) Copart hereby further covenants,represents and agrees as follows:
(i) Copart is agreeing to pay the Copart Hosting Fees as an inducement to the City to enter
into this Development Agreement and to zone portions of the Subject Property in order
to allow the Copart Parcel and the Copart Expansion Parcel to be used for the Copart
Operations.
(ii) Copart further acknowledges and agrees that(A)the imposition of the Copart Hosting
Fees by the City is not motivated by the desire to merely raise revenue,but, instead,
(B) such Copart Hosting Fees bear a reasonable relationship to the costs anticipated to
be incurred by the City in connection with the regulation and administration of the
Copart Operations; and
(iii)Copart, for itself and its successors, assigns, grantees, licensees and tenants, hereby
waives and releases any claim it may have,or allege to have,to challenge the propriety/
legality of the Copart Hosing Fee; and
(iv)Copart, for itself and its successors, assigns, grantees, licensees and tenants hereby
covenants and agrees that in consideration of this Agreement neither the Copart nor its
successors, assigns, grantees, licensees or tenants shall directly or indirectly sue City in
an effort to have declared invalid, or to otherwise eliminate or modify,the requirement
contained herein that Copart Hosting Fees shall be payable to the City as provided
herein. (The covenant and agreement of the Copart as set forth in the preceding sentence
shall hereinafter be called the "Covenant Not To Sue"). The parties hereto understand
and agree that the Copart's Covenant Not To Sue as stated herein is a material
inducement to the City's agreement to enter into this Agreement and is freely and
voluntarily given.
5. Subterranean Minin,2 Royalty: Parity of Treatment. If the City approves the
Development Application and enacts the ordinances therein requested,then in consideration thereof:
(a) Subject to the provisions of subparagraphs 5(b) and 5(c)below, the City shall be
entitled to receive a royalty(hereinafter called a"Subterranean Mining Royalty")
from the party conducting Subterranean Mining under the Elgin Property(the
"Mining Operator"). It is further agreed and understood that:
(i) The term"Subterranean Mining Royalty" shall mean a royalty equal to the
product of(i) 1 %a%(.015)multiplied by(ii) the Mining Operator's Net
Subterranean Mining Imputed Sales Revenue(as hereafter defined). The
payment of the Subterranean Mining Royalty shall be made within sixty
(60)days following the end of each calendar quarter.
F:\Legal Dept\Agreement\Development Agreement-Bluff City Materials.doe 5
(ii) The term"Net Subterranean Mining Imputed Sales Revenue"shall mean:
(A) Arms-length Sales to Third Parties Consummated at the Elgin
Property and/or Bartlett Property: In the case of sales of
Resources extracted through the conduct of Subterranean Mining
under the Elgin Property and/or Bartlett Property and sold at arms
length to a third party purchaser, the Net Subterranean Mining
Imputed Sales Revenue shall equal (1) gross sales price billed by the
Mining Operator to the third-party less (2) all taxes, freight,
shipping and customer allowances, and such Net Subterranean
Mining Imputed Sales Revenue shall be deemed to have been
received by the Mining Operator on the date such Resources leave
the confines of both the Elgin Property and the Bartlett Property. If
the Mining Operator sells the said Resources to (A) the Owner or
(B) an affiliate of the Owner or Mining Operator(in either case an
"Intermediary") and such Intermediary re-sells the Resources to the
ultimate third party purchaser, then the Net Subterranean Mining
Imputed Sales Revenue shall be based upon(x) gross sales price
billed by the Intermediary to the third-party less (y) all taxes, freight,
shipping and customer allowances;
(B) Dispositions Not Involving Sales at Arms-length: In the case of
the disposition of saleable Resources extracted through the conduct
of Subterranean Mining under the Elgin Property and/or Bartlett
Property other than by way of sale (such as,by way of example
only,through exchange,barter, or gift)but excluding those
Resources used in on-site construction or maintenance, the Net
Subterranean Mining Imputed Sales Revenue shall be deemed to
equal the product of(1)the average sales price per ton enjoyed by
the Mining Operator from the arms length sale of similar Resources
to third party purchasers of similar-sized orders of such Resources
during the preceding 12 months multiplied by(2) the tonnage of
such Resources which is shipped off the confines of both the Elgin
Property and the Bartlett Property; it being the intention of the
parties that Elgin shall be entitled to receive Subterranean Mining
o
Royalties whenever such saleable Resources
ces are removed from the
confines of both the Elgin Property and the Bartlett Property even
though not by way of traditional sale.
(C) Sales of Resources From Other Business Sites of the Mining
Operator: In the case of the disposition of Resources(i) extracted
through the conduct of Subterranean Mining under the Elgin
Property and/or Bartlett Property other than to a third party
purchaser and(ii) shipped to an off-site sales yard operated by the
Mining Operator for sale from such off-site location, the Net
F:\Legal Dept\Agreement\Development Agreement-Bluff City Materials.doc
Subterranean Mining Imputed Sales Revenue shall be determined as
follows:
(1) if such Resources are sold within six (6)months of being
removed from the Elgin Property and Bartlett Property,then the
Net Subterranean Mining Imputed Sales Revenue shall be
determined on the date of such sale in the manner provided in
subparagraph(A) above; and otherwise
(2) if such Resources are not sold within six (6)months of being
removed from the Elgin Property and Bartlett Property, then the
Net Subterranean Mining Imputed Sales Revenue shall be
determined as of the first day of the seventh(7`h)month in the
manner provided in subparagraph(B) above.
(iii) The Net Subterranean Mining Imputed Sales Revenue shall be determined
based upon the Mining Operator's quarterly report to the City as to the
amount of same for the period in question. The City shall have the right to
review and/or audit the Mining Operator's records pertaining to its Net
Subterranean Mining Imputed Sales Revenue not more frequently than once
each calendar quarter at the Mining Operator's offices located in the
Chicagoland area. The payment of the Subterranean Mining Royalty shall
be made within 60 days following the close of each calendar quarter.
(iv) To secure the payment of the Subterranean Mining Royalties to Elgin and
Bartlett as provided herein, the Owner shall:
(A) record against the Elgin Property and the Bartlett Property a
covenant"Royalty Covenant"which runs with title to the land and
which memorializes the obligation of any Mining Operator to pay
Subterranean Mining Royalties as provided herein. Elgin agrees
that said Royalty Covenant shall not be deemed to be an obligation
upon any party(1)to whom the current Owner may sell the Elgin
Property or Bartlett Property, or any portion of either of same ("New
Owner") and(2)who does not have any financial interest in the
Subterranean Mining occurring thereon.
(B) include in any lease or subcontract agreement the Owner may enter
into with a Mining Operator in connection with Subterranean
Mining("Mining Agreement") specific provisions (A) obligating the
Mining Operator to pay the Subterranean Mining Royalty directly to
Elgin to the extent payable under such Mining Agreement, and (B)
making Elgin a third party beneficiary of any such Mining
Agreement with the right to enforce the payment of the
F:\Legal DeptWgreement\Development Agreement-Bluff City Materials.doc 7
Subterranean Mining Royalties as against the Mining Operator to
the extent payable under such Mining Agreement.
(b) The Owner has petitioned Bartlett for its zoning authorizations allowing the
conduct of Subterranean Mining under the Bartlett Property(the`Bartlett Mining
Authority"). The Owner has proposed to both Elgin and Bartlett that they enter
into that Intergovernmental Agreement in the form attached hereto as Exhibit 5 (the
"Intergovernmental Agreement") so as to each enjoy the benefits of the Royalty
Sharing described in paragraph 1.4(d) of the proposed Intergovernmental
Agreement. Elgin hereby agrees to execute and enter into the Intergovernmental
Agreement. However,because Bartlett has not, as yet, agreed to execute and enter
into said Intergovernmental Agreement the Elgin and the Owner hereby further
agree that if Bartlett refuses to execute and enter into the Intergovernmental
Agreement before Subterranean Mining on the Bartlett Property commences, then:
(i) The Owner shall cause to be paid to Elgin the same amount of
Subterranean Mining Royalties in connection with the conduct of
Subterranean Mining on the Bartlett Property as Elgin would have
otherwise been entitled to receive under the Intergovernmental Agreement
had same been in force(such Mining Royalties paid to Elgin under the
provisions of this subparagraph(i)being hereinafter called"Replacement
IGA Royalties"); and
(ii) At such time as Subterranean Mining occurs on the Elgin Property(A)
Elgin shall be entitled to retain(and not share with Bartlett)the entire
Subterranean Mining Royalty specified in paragraph 5(a)(i) above,but(B)
the Owner(or,by assignment,the Mining Operator) shall be entitled to a
credit against the said Subterranean Mining Royalties in an amount equal to
all Replacement IGA Royalties previously paid to Elgin.
(c) It is the intention of the parties hereto that the Owner and any Mining Operator
with respect to the Elgin Property shall not be subject to a Subterranean Mining
Royalty payment requirement that is greater than the level of royalties demanded or
otherwise received by the City from any other subterranean miner. Accordingly,
and notwithstanding anything to the contrary set forth herein or in the Development
Application, if the City hereafter grants to any other party(a"Third Party") the
right to conduct Subterranean Mining,the formula for determining the
Subterranean Mining Royalty payable hereunder shall be adjusted to the extent
required to insure that the Subterranean Mining Royalty payable hereunder are not
more(as a percentage of Net Subterranean Mining Imputed Sales Revenue)than
the royalties required to be paid by the Third Party to the City in connection with
the Third Party's conduct of Subterranean Mining. If the Third Party is not
required to pay any royalties to the City, then the Mining Operator shall be relieved
of any obligation to pay the Subterranean Mining Royalty to the City hereunder.
F:\L.egal Dept\Agreement\Development Agreement-Bluff City Materials.doc 8
(d) No royalty shall be payable to the City with respect to (i)the conduct of Surface
Mining on the Elgin Property or(ii)material extracted as part of the creation of the
portal(s) leading down to the subterranean mining rooms.
(e) Owner hereby further covenants, represents and agrees as follows:
(i) Owner is agreeing to pay the Subterranean Mining Royalties as an
inducement to the City to enter into this Development Agreement and to
zone the Subject Property in order to allow blasting on and under the
Subject Property in connection with Subterranean Mining;
(ii) Owner further acknowledges and agrees that(A)the imposition of the
Subterranean Mining Royalties by the City is not motivated by the desire to
merely raise revenue,but, instead, (B) such Subterranean Mining Royalties
bear a reasonable relationship to the costs anticipated to be incurred in
maintaining public safety by the City in connection with the regulation and
administration of the Subterranean Mining; and
(iii) The Owner, for itself and its successors, assigns, grantees, licensees and
tenants, hereby waives and releases any claim it may have,or allege to have,
to challenge the propriety/legality of the Subterranean Mining Royalties;
and
(iv) The Owner, for itself and its successors, assigns, grantees, licensees and
tenants hereby covenants and agrees that in consideration of this Agreement
neither the Owner nor its successors, assigns, grantees, licensees or tenants
shall directly or indirectly sue City in an effort to have declared invalid,or to
otherwise eliminate or modify,the requirement contained herein that
Subterranean Mining Royalties shall be payable to the City as provided
herein. (The covenant and agreement of the Owner as set forth in the
preceding sentence shall hereinafter be called the "Covenant Not To Sue").
The parties hereto understand and agree that the Owner's Covenant Not To
Sue as stated herein is a material inducement to the City's agreement to enter
into this Agreement and is freely and voluntarily given.
(v) The Owner hereby agrees to require in any lease or license agreement that it
may enter into with a third party Mining Operator in connection with the
conduct of Subterranean Mining on the Subject Property provisions
referring to and incorporating the provisions of this subparagraph 5(d) so as
to make same binding on such third party.
6. No Cross-Default. It is acknowledged and agreed that no failure by Copart(or any
successor of Copart)to pay the Copart Hosting Fee, and no other violation by Copart of any provisions of
the ordinances enacted pursuant to the Development Application shall impose any liability upon, or
adversely affect the rights granted to,the other parties benefited by the Development Application.
Similarly,no failure by the Mining Operator to pay the Subterranean Mining Royalty, and no other
F:U.egal Dept\Agreement\Development Agreement-Bluff City Materials.doc 9
i
violation by the Owner or the Mining Operator of any provisions of the ordinances enacted pursuant to
the Development Application, shall impose any liability upon, or adversely affect the rights granted to, the
other parties benefited by the Development Application.
7. Cancellation of Development Agreement. This Agreement and all of the parties
obligations hereunder are expressly subject to and contingent upon the City Council of the City of Elgin
enacting the ordinances requested in the Development Application, as same may be amended by
agreement of the parties hereto, on or before August 31, 2003. In the event the City Council does not
enact such ordinances on or before such date, then upon written notice from either party this Agreement
shall be cancelled and null and void with no further liability of either party hereunder.
8. Negotiations with METRA. METRA has expressed an interest in possibly purchasing
from the Owner an approximate 20 acre parcel consisting of Area C and a portion of Area B (the
"METRA Acreage"). Owner hereby agrees that for a period of sixty months following the date of this
Agreement(said period being hereinafter called the"60-Month Period"):
(a) Owner will not develop the METRA Acreage(but shall have the right to mine same); and
(b) Owner will not sell any portion of the METRA Acreage without first offering same for sale
to METRA on the same terms as Owner is otherwise prepared to accept from a third-party
purchaser and giving METRA the first right to purchase same for a period of 60 days
following notice to METRA.
9. Severance of Surface from Subterranean Levels. It is agreed and understood that if(a)
the ownership of any portion of the fee title pertaining to the Subject Property lying below 250 feet from
the surface (the"Subterranean Fee") is separated from the ownership of the Subject Property lying above
the Subterranean Fee(the"Surface Fee"), or(b)the entirety of the Subject Property is sold subject to a
reserved easement or reservation of mineral rights,then in either event the owner of the Surface Fee shall
have no liability to the City for the payment of Subterranean Mining Royalties.
10. IDNR Consultation Requirement. Attached hereto as Exhibit 6 is the IDNR
Consultation Agency Action Report("IDNR Report")pertaining to the Subject Property. Other than with
respect to the establishment of(i) Copart Operations on the Copart Parcel and Copart Expansion Parcel,
(ii)the METRA use on Area B and/or Area C, and(iii) Subterranean Mining(excluding the construction
of any portal)under the entire Subject Property(said enumerated uses being hereinafter called the
"Covered Uses"), the Owner shall, to the extent required by law, not commence any other use on the
Subject Property not already in existence(i.e. Surface Mining and ancillary uses)without the completion
of a consultation with the Illinois Department of Resources under the Illinois Endangered Species
Protection Act(520 ILCS 10/1 et. seq. and the applicable regulations contained in 17 Illinois
Administrative Code, Chapter I, Subchapter C, Section 1075; excluding,however, such uses as the City
may acknowledge are exempt from such consultation process.
11. Miscellaneous.
(a) Notices. All notices and other communications hereunder shall be in writing and shall be
deemed given if delivered personally or mailed by registered or certified mail (return
F:\Legal Dept\Agreement\Development Agreement-Bluff City Materials.doc 10
receipt requested)to the parties at the following addresses(or such other addresses for a
party as shall be specified by like notice), and shall be deemed received on the date on
which so hand-delivered or on the second(2nd)business day following the date on which
so mailed:
To the City: City Elgin
150 Dexter Court
Elgin, Il 60120
Attn: City Manager
with copy to: City of Elgin
150 Dexter Court
Elgin, Il 60120
Attn: Corporation Counsel
To Owner: Bluff City Materials, Inc. and
Gifford 300, LLC
2250 Southwind Blvd.
Bartlett, Illinois 60103
Attn: Mr. Dean W. Kelley
With a copy to: Maurides &Foley, L.L.C.
2 North LaSalle St., Suite 1900
Chicago, Illinois 60602
Attn: George D. Maurides
With an additional
copy to: Schnell, Bazos, Freeman,
Kramer, Schuster&Vanek
Attn: Peter C. Bazos, Esq.
1250 Larkin Avenue
Suite 100
Elgin, Illinois 60123
(b) Severability. If any one or more of the provisions contained in this Agreement
shall, for any reason,be held invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other provisions hereto,
and this Agreement shall be construed as if such invalid, illegal or unenforceable
provision and not been contained herein;provided however,that if permitted by
applicable law, any invalid, illegal or unenforceable provision may be considered in
determining the intent of the parties with respect to the provisions of this
Agreement.
(c) Non-waiver. The failure by a party to enforce any provision of this Agreement
against the other party shall not be deemed to be a waiver of the right to do so
thereafter.
F:\Legal Dept\Agreement\Development Agreement-Bluff City Materials.doc 11
(d) Modification of Agreement. This Agreement may be modified or amended only
in a writing signed by all of the parties hereto, or their successors or assigns, as the
case may be.
(f) Entire Agreement. This Development Agreement, together with any hereafter
executed Intergovernmental Agreement, the Development Application(if
approved) and the ordinances and resolutions enacted pursuant thereto contain the
entire agreement and understanding of the parties with respect to the subject matter
set forth herein, all prior agreements and understandings having been merged
herein and extinguished hereby.
(g) Incorporation of Recitals and Exhibits. The recitals to this Agreement, as well
as all Exhibits attached hereto, are by this reference incorporated herein.
(h) Joint Preparation. This Agreement is and shall be deemed and construed to be
the joint and collective work product of the City and Owner and, as such, this
Agreement shall not be construed against either 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.
(i) Law Governing. This Agreement shall be governed by and construed in
accordance with the laws of the State of Illinois. In any legal proceeding between
the parties hereto,venue shall exclusively lie in the Circuit Court of Cook County,
Illinois. Each party hereby waives any objection it may have to commencement or
transfer of any such proceeding to either of said venues and hereby affirmatively
consents to same.
(j) Successors. This Agreement shall inure to the benefit of, and shall be binding
upon the parties hereto and their respective successors, assigns and owners.
Further, upon any conveyance of ownership of the Elgin Property by the Owner or
its successors(in either case the "Grantor"), the party making such conveyance
shall be relieved of any further liability or obligation accruing hereunder from and
after the date of such conveyance and the party receiving such conveyance shall
assume all rights and obligations of the Grantor.
(k) Time of the essence. Time shall be of the essence of this Agreement.
(1) Counterparts. This Agreement may be executed in multiple counterparts, all of
which, together, shall constitute one and the same agreement. Further,
photocopies, facsimile transmissions and other reproductions of this Agreement
and/or the signatures hereon shall be the equivalent of originals.
F:U.egal Dept\Agreement\Development Agreement-Bluff City Materials.doc 12
(m) No joint venture. This Agreement shall not be deemed or construed to evidence or
create an employment,joint venture,partnership or other agency relationship
between the parties hereto.
(n) City Cooperation. The City agrees that upon its execution of this Agreement it
will cooperate with the Owner to acquire any and all easements and/or rights-of-
way necessary to service the Elgin Property with utilities and/or to allow the Owner
to construct various off-site public improvements. The City agrees that in the
event Owner is unable to obtain said easements or rights of way over, under,
across, or through property not owned by the City or under the City's control which
may be necessary or appropriate for the development of the Elgin Property at a cost
and on conditions acceptable to Owner,the City shall, at Owner's request,use, to
the full extent permitted by law,the City's eminent domain power to secure such
easements or rights of way. Prior to commencing any condemnation action, Owner
shall submit, for City review and approval, written documentation demonstrating
that Owner has pursued reasonable alternatives for the acquisition of such
easements or rights of way, and Owner shall deposit with City the amount of funds
necessary to pursue eminent domain action. All such actions by the City shall be at
no cost to the City, which costs shall be borne solely by the Owner.
(o) Default: Notice: Cure. No party shall be deemed to be in breach of its obligations
hereunder unless (i)written notice of the alleged breach is first given to such party
allegedly in default(the"Defaulting Party") and(ii)the Defaulting Party fails to
correct such alleged breach within 30 days of the date of such notice (in the case
of an alleged payment default)or within 90 days of the date of such notice (in the
case of a default not involving a failure to make a payment). Without limiting the
generality of the foregoing,because it is anticipated that the Mining Operator will
be calculating and making payments of Subterranean Mining Royalties directly to
Elgin, it is further agreed that notice of any failure by the Mining Operator to
make such payments shall be given to Owner and the Mining Operator; and
(o) Any failure on the part of a Mining Operator to pay to Elgin all Subterranean
Royalties required under this Agreement shall hereinafter be called a"Royalty
Deficiency". Elgin agrees that:
(i) it shall not have the right to assert any claim("Royalty Deficiency Claim") or
take any other action against the Owner or the Mining Operator that extracted
and sold the Resources, or the Owner's zoning entitlements with respect to any
Royalty Deficiency on the part of the Mining Operator that pertain to Net
Subterranean Mining Imputed Sales Revenue generated by such Mining
Operator more than five (5) years prior to the assertion of the Royalty
Deficiency Claim ; and
(ii) If the Owner notifies Elgin in writing that the existing Mining Operator
("Existing Operator")has or will be replaced(hereinafter called an"Operator
Change Notice")then Elgin shall have no right to assert any Royalty
F:\Legal Dept\Agreement\Development Agreement-Bluff City Materials.doc 13
Deficiency Claim, or take any other action against the Owner or the Mining
Operator that extracted and sold the Resources, or the Owner's zoning
entitlements,with respect to any Royalty Deficiency on the part of the Existing
Operator unless such Royalty Deficiency Claim is asserted within six (6)
months of the Operator Change Notice, and in such case the Royalty Deficiency
Claim shall not pertain to Net Subterranean Mining Imputed Sales Revenue
generated by such Mining Operator more than five(5) years prior to the
assertion of the Royalty Deficiency Claim.
(p) This Agreement shall be enforceable in a court of competent jurisdiction by any of
the parties,by an appropriate action at law or in equity to secure the performance of
the covenants herein described. If any clause or provision of this Agreement is
determined to be illegal, invalid, or unenforceable under present or future laws,the
remainder of this Agreement shall not be affected by such determination, and in
lieu of each clause or provision that is determined to be illegal, invalid or
unenforceable, there shall be added as a part of this Agreement a clause or
provision as similar in terms to such illegal, invalid or unenforceable clause or
provision as may be possible and be legal, valid and enforceable. If the Owner or
the Mining Operator legally challenge the validity of the covenant contained herein
requiring the payment of Mining Royalties and such covenant is declared invalid,
then The City shall be entitled to a preliminary and permanent injunction
prohibiting any further Subterranean Mining(and surface activities in support
thereof) on the Subject Property. Similarly, if Copart legally challenges the
validity of the provisions of this Agreement requiring the payment of the Copart
Hosting Fee and such provisions are declared invalid,then the City shall be entitled
to a preliminary and permanent injunction prohibiting any further Copart
Operations on the Copart Parcel and Copart Expansion Parcel. The parties hereto
agree to litigate any and all disputes arising out of or in connection with this
Agreement in the Circuit Court of Cook County, Illinois, and by executing this
Agreement each party agrees that such Court shall be the proper and exclusive
venue for any such proceeding.
(q) The parties agree to cooperate in good faith in recording against the Bartlett
Property,the Copart Parcel, the Copart Expansion Parcel and the Elgin Property a
memorandum of this Agreement.
[signature page follows]
F:\Legal Dept\Agreement\Development Agreement-Bluff City Materials.doc 14
JUN. 25. 2003 4:v'5PM COPART N0. 4075 P. 2
r
CITY OF ELGIN, BLUFF CITY MATERIALS, INC.
a municipal corporation an Illinois corporation
By. By;
Ed Schock,Mayor an W. Kelley,Vice-Pre d t
Attest: GIFFORD 300, LLC
an Illinoi invited liability co rmpan
By:
Delonna Mecum, City Clerk an W.Kelley,Manager
COPART, INC.
A California c Wrationi
By,
Its;
C:\WTNDOWS\Temporary Intemec Files\CanfentIE5\T4CNSTOII C' 1$
EXHIBIT 1
LEGAL DESCRIPTION OF BARTLETT PROPERTY
F:\Legal Dept\Agreement\Development Agreement-Bluff City Materials.doc
EXHIBIT 2
DEVELOPMENT APPLICATION
F:\L.egal Dept\Agreement\Development Agreement-Bluff City Materials.doc
EXHIBIT 3
LEGAL DESCRIPTION OF ELGIN PROPERTY
F:\Legal DeptWgreement\Development Agreement-Bluff City Materials.doc
EXHIBIT 4
SITE MAP
F:\Legal Dept\Agreement\Development Agreement-Bluff City Materials.doc
EXHIBIT 5
INTERGOVERNMENTAL AGREEMENT
F:\Legal Dept\Agreement\Development Agreement-Bluff City Materials.doc 20
EXHIBIT 6
IDNR Consultation Report
a
E.
F:\Legal Dept\Agreement\Development Agreement-Bluff City Materials.doe 21
City Of Elgin Agenda Item No.
May 23 , 2003
TO: Mayor and Members of the City Council
ECONOMIC GROWTH
FROM: David M. Dorgan, City Manager P*
Mark Biernacki, Community Development Group Director
SUBJECT: Bluff City Materials Development Agreement
PURPOSE
The purpose of this memorandum is to provide the Mayor and
members of the City Council with information to consider a
development agreement with Bluff City Materials .
BACKGROUND
Bluff City Materials (BCM) owns over 700 acres of land west of
State Route 25 and south of US Route 20 (see map) . Approximately
one-half of this acreage lies within the existing corporate
limits of the City of Elgin. The other one-half will lie within
the corporate limits of the Village of Bartlett .
Within both communities, BCM desires to continue to surface mine
their property' s sand and gravel , begin a subterranean mining
operation, and reclaim the properties for re-use into industrial
lots . In the Elgin portion of their properties, BCM is also
proposing that Copart, Inc . develop a wholesale automobile sales
facility on 40 acres along US Route 20 (expandable to 100 acres
in the future) . Finally, BCM is proposing to reserve 20 acres of
their land for part of future Metra commuter station.
In consideration of this development plan, staff is recommending
that the City enter into a development agreement with BCM and
Copart, Inc. This agreement identifies the terms and conditions
under which these uses are to occur and the timing of various
host fees and royalty payments .
Bluff City Materials Development Agreement
May 23 , 2003
Page 2
The development agreement is summarized as follows :
A. Copart Operation
The proposed wholesale automobile sales facility will be
operated by Copart . Their operation is presently located on
the north side of West Bartlett Road, west of Route 59,
near Bartlett' s growing residential areas . As a contractor
for insurance companies, Copart stores vehicles damaged in
accidents or natural disasters and then sells them at
auction to various purchaser.
The manner in which the automobiles are stored, the
facility' s land plan, screening and buffering along US
Route 20, and other site-related matters are the subject of
a zoning petition that has been considered by the Planning
and Development Commission at their May 19, 2003 regular
meeting. The Commission recommended that this zoning
petition be approved with conditions by a vote of four to
one .
B. Other Surface Uses
When BCM completes the surface mining of the property' s
sand and gravel, they will reclaim the land for re-use into
industrial lots. The future uses of these properties are
listed in the site' s proposed PGI , Planned General
Industrial zoning classification. In addition, Bluff City
has set-aside 20 acres of land at the southeast corner of
their property. Metra has identified this location at the
intersection of the Milwaukee and EJ&E railroads as a site
for a future commuter rail station. Metra will have five
years from the date of the agreement to exercise its desire
to purchase the property. These land uses were also
recommended for approval by the Planning and Development
Commission.
C. Subterranean mining
Bluff City will partner with Vulcan Materials to conduct a
subterranean mining operation underneath the properties.
They propose to extract limestone materials starting at a
depth that is greater than 250-300 feet below the surface.
The "portal" , or tunnel , through which the limestone is to
be brought to the surface will lie within the Village of
Bartlett . From this portal, the mining operation will
Bluff City Materials Development Agreement
May 23, 2003
Page 3
extend underground to sub-surface areas beneath both Elgin
and Bartlett . In addition to the Planning and Development
Commission, this proposed activity is being reviewed by the
Illinois Department of Natural Resources and by the
Illinois Nature Preserves Commission (most notably for the
impact such an operation may have on the Bluff Springs
Fen) .
D. Host Fees and Royalties
As part of this development agreement, BCM and Copart are
to remit to the City various host fees and royalty
payments.
Specifically, BCM is willing to pay a royalty in an amount
equal to 1 . 5% of the proceeds from the sale of the
limestone extracted from the subterranean mining effort . As
part of a separate intergovernmental agreement, the City of
Elgin and the Village of Bartlett will share the revenues
accrued from the royalty payments (years 1-5 : 2/3rds
Bartlett, 1/3rd Elgin; years 6-52 : 50/50; years 53-57 :
2/3rds Elgin, 1/3rd Bartlett; years 58 through to
completion: 50/50) . These payments are to occur in the
noted proportions regardless of the municipality from which
the mineral is being mined.
In addition, Copart is willing to pay a host fee to the
City of Elgin. Such a fee would be set at $2 . 00 for each
car sold.
Based on company projections, BCM/Vulcan' s royalty payments
will average $230, 000 a year for a total of $13 . 129 million
over 57 years . Copart' s host fees will average $84, 000 per
year for a total of $4 . 78 million over 57 years. Combined,
it is projected that both operations will generate revenues
to the City in the range of $300, 000 to $325, 000 per year
for a total of $17 . 9 million.
Bluff City Materials Development Agreement
May 23, 2003
Page 4
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
Village of Bartlett, Illinois Nature Preserves Commission
FINANCIAL IMPACT
Provided these uses remain operational at these locations, the
City could realize a long-term revenue stream as a result of
this development agreement . Based on company projections, it is
estimated that over a 57 year time period, the City will receive
a cumulative $17 . 9 million in combined host fees and royalty
payments (an average of $300, 000 to $325, 000 per year) . Actual
revenues will vary from year to year due to fluctuations in the
volume of vehicles processed through the Copart facility and in
the pricing and demand of limestone extracted through the
BCM/Vulcan operation.
Host fees and royalties are to be paid within 60 days of each
company' s calendar quarter. Due to the uncertainty of annual
royalty receipts, these revenues will be accounted for
separately and delineated as such during the annual budget
process .
EGAL IMPACT
The Legal Department has reviewed the development agreement .
ALTERNATIVES
1 . Enter into the development agreement with Bluff City
Materials and Copart, Inc .
2 . Do not enter into an agreement at this time.
RECOMMENDATION
It is recommended that the City Council approve the development
agreement as presented.
Respectfully submitted for Council consideration.
MTB/sr
Attachments
� _IIIIII�IIIIIIIIII - �I`�
III ` _ ���� ������u�■ uu�■/�11111�111 �
1111 - �I.�ID/IIII 111���11111��111111111111111111
Land Use/Subterranean
Mining Plan11
Elgin Industrial
Prepared • Parcels
Planning&■ Neighborhood
.. ... Services Dept., Proposed
COPART
Facility
■
■
a
IU • i . i0
IY
L
R
W
+ � VndMging � R
` W
Metra Commuter
Station
i
aavetell j
OAY
r 9
ato
��`• �''' '.,.� •'• 1f,'i'q� � �_-_. -
!t"v4id2i[uictrn
.i .:...•• jib)}�' .'1it.� f ":� y.�1 �' w� ,V••�.., ,�„�
(� 1 � ,�': �,�,.,� � /i'!;r- era � �.,•�. i' ! i';:` � � �; ;'rr;'?.
4 pY. J..,,,• r '
^o� ( � •.: fit` i;•.7. ,�.,.,...:�=zir':::.' -./- ....._.......... .... ,
it
•. ..: .......
Al
ul
094
—+—�1 �. , f lf�,,;��y�"-..4C2`ici�` `•.-.!�,��?;; y::�s'�s •�tS; �._ '^� ...-.\�\1 j � 1,
n ,
-
!r. � Q - I,._. -, ,. -• �---'' ,mom:===_.�:::::�::::_::--• � �
i
i • og PLAN
y, "° "'Rm
0 10
tawara Schock 847 931 6023 p. 4
uiizar0l 10:43 FAA 530 497 3477 ABBOTT LAID
Royalty Fee Proposal
SartlettMgm
�`7 �y �tti 1123/2003 �0-
Case 1 �
= ,:";,ice t t `�:' Salary:¢',�l,.S�� 'TOt�M 'ir"p �5 �,'�'EidfaM�• `y?Rr A7 ^is u� Yr!�-�
Yer ' Tyn6lSdd. ;-P1kelTonr':i�Sa1Ps!RL�t' 11®!X.� :`;vi' yYS JI 'i F > a�7a41.
1 1,242.000 S 6.50 S 8,073.000 S 121,095 S 80.730 S 40,365
2 1,656.DOD S 663 3 10,979,280 S 164,689 S 1D9,793 S 54,896
3 1971.000 S 5.76 S 13.329.085 S 199.936 S 133291 S 66,645
4 2,106,000 S 6.91) S 14,526.876 $ 217,903 S 145.269 S 72,634
5 2,520,000 $ T.04 S 17,730,239 $ 265.964 S 177,302 S 88.651
6 2,520,000 $ 7.18 S 18.084,844 4 271.273 S 135.636 $ 135,838
7 2,520,000 S 7.32 S 18,446.640 S 276.698 S 138,349 S 138,349
8 2,520,00D S 7.47 S 10,815.471 S 282.232 S 141.116 S 141.116
9 2,520,000 S 7.62 S 10.191,781 $ 287,877 S 143,938 S 143.938
10 2.520.000 S 7.77 $ 19,575,616 S 293.63.4 S 146,817 S 146,817
11 2.520.000 $ 7.92 S 19,967,129 S 299,507 S 149,753 $ 149,753
12 2,520.000 S 8.08 $ 20.366.471 S 305,497 4 t52,749 S 152,749
13 2,520.000 S 8.24 S 20.773.601 S 311.607 S 155,804 S 155,804
14 2,520,0D0 S B 41 S 21.189,777 S 3w,839 S 156,920 $ 158,920
15 2.520.000 S 8.58 S 21.M.062 $ 324,195 S th'2.098 $ 162.098
16 2.520,000 S 8.75 $ 22,045,323 S 330,650 S 165,340 S 165.340
17 2,520,ODU S 8.92 S 22,4B8.230 S 337.293 S 168.647 S 168,647
18 2,520.000 $ 9.10 S 22.935,954 S 344.039 S 172.02D S 172,020
19 2,520,ODD $ 9.28 S 23.394.574 S 350,m S 17SAGO S 175,460
20 2,520,000 S 9.47 S 23,062,567 5 357.939 S 178,969 S 178,969
21 2.520,D00 S 9.66 $ 24,339.818 S 365.097 S 182,549 S 162.549
22 2,520.ODO $ 9.85 S 24,526.1115 S 372 399 5 166200 S 156,200
23 2.520,000 S 10.05 S 25.323.147 S 379.847 S 199.924 S 189.924
24 2.520.000 S 10.25 S 25.829.610 S 387.444 S 193,722 S 193.722
25 2.520,000 S 10.45 $ 26,346,2D2 S 395,193 $ t97,597 S 197.597
26 2,520,000 S 10.68 5 26.873,126 S 4013.097 S 201,548 S 201,548
27 2.520.000 S MOD S 27.410.589 S 411.159 S 205,579 $ 205,579
28 2,520,0D0 S 11.D9 $ 27.958,B00 S 419,352 S 209.691 S 209.691
29 2,520,000 S 11.32 $ 29,517.976 S 427.770 S 213.805 S 213,885
30 2.520.000 S 11.54 S 29,Dee,336 S 439,326 S 218.163 S 218.163
31 2,520,DOO S 1177 S 29.670,103 $ 445,D52 S 222,526 S 2225126
32 2.520,DDO $ 1201 S 30 283,505 S 453.953 S 226.976 $ 228.976
33 2,52000 5 1225 S 30,B68,775 S 463.032 S 231,516 S 231,516
34 2.520.D00 S 12.49 $ 31.486,150 S 472.292 S 236,145 S 236.146
35 2,520.ODO S 12.74 S 32,115,873 S 481.738 S 240,069 S 240.869
36 2,S20.000 S 13.00 S 32.758,191 S 491,373 $ 245,666 $ 245.606
37 2,520,000 S 13.26 S 33.413,355 S 501,200 S 25D,60U S 250.800
38 2.520.ODO S 13.52 S 34.081.62.2 S 511224 S 255.612 S 255,612
39 2.520.DDO S 13.79 S 34,763,254 $ Sz1,449 S 260.724 S 260,724
40 2,520.000 S 14.07 S 35,458,519 S 531,878 S 265.939 $ 265.939
41 2,520,000 S U.35 S 36,167,l;90 S 642.515 S 271,258 S 271258
42 2.520,000 $ 14.84 S 36,591,043 S 553.3% S 27603 S 276,683
43 2,520.000 $ 14.93 S 37.628.964 S 564.433 S 282.216 S 282,216
44 2.520000 S 15.23 S 38,381,442 S 575,722 $ 287.861 S 287.861
45 2.520,DUO S 15.54 5 39.149.070 S 587,238 S 293,618 S 293,618
46 2,520,000 S 15.85 S 39.932,052 3 598,9el $ 299,490 S 299,490
47 2,520,000 S 16.18 S 40.730.693 S 610,%0 S 305.480 S 305.480
48 2,520,ODO S 16.49 S 41,545.307 $ 623.100 S 311.590 S 311,590
49 2.520.000 S 16.82 S 42.376.213 S 635,643 S 317,822 S 317,822
50 2,520,000 1 17,15 S 43,223,737 S 648,356 S 324,178 S 324,179
S1 2.520.00D S 1750 S 44,088212 5 661,323 $ 330.682 $ 330.662
52 2,520,000 S 17.05 S 44,969.976 S 674,550 S 337,275 S 337275
53 2,520.000 S 18.20 S 45.869.576 S 608,041 S 229,347 S 458,694
54 2,520,000 $ 18.57 S 46.786.763 S 701,801 S 233.934 S 467,86e
55 2.520,000 S 18.94 $ 47,722.498 S 715,837 S 238.612 $ 477,225
56 2.520,000 S 19.32 S 48,676,948 S 730.164 S 243.385 S 496,769
57 2.520,000 3 19.70 $ 49.650.407 S 744.751 S 240.252 S 496.505
Touts: 140,535,000 S 12.D4 S 1.692,571,159 S 25,393,567 11 -17-259,116 S 11,129,453
ASSrlR OR-a5; 1)Years 1-5 Bartlett:Years 6-52(50150).Years 53.57 Elgin
2)Saes price pw ton increases by 2%per year
3)Toni sold projectO by VuIgNBluff City based on market potential
4)Figures above we estim7tes and Subject to chanae due to Markel conditions
Z4.IUJ 10:4b FAA 630 497 3477 toward Schock 947 931 G023
ABBOTT LAND p. 7
0008
Combined
Bluff City/Copart Fees
2004 1 $25.000 so $25.000
2005 2 S30.000 $40,365 $70.365
2006 3 S35,000 $54,096 $89,896
2001 4 S40,000 $66,645 $106,045
2008 5 S45.000 $72,634 $117,634
20D9 6 S50'000 S88'651 $138,651
2010 7 $51.500 $135,636 $157,136
2011 8 S53.045 $138,349 S191.394
2012 9 $54,636 S141M6 $195,752
2013 10 $56,275 $143,938 $200.213
2014 11 557,964 S146,811 S204,781
2015 12 $59,703 $149,753 S209A56
2016 13 $61,494 $152,749 S214.243
2017 14 $0,339 $156,804 S219.143
2018 15 S65,239 $158,920 S224J59
2019 16 S67.196 $162-098 S229,294
2020 17 $69.212 $165,340 S234,562
2021 18 S71.288 $168.647 S239,935
2022 19 S73.427 $172,020 $245.447
2023 20 $75.829 $175.460 S251,089
2024 21 $77,898 S178,969 $256,867
2025 22 $80,235 S182.549 S262,784
2026 23 S82,642 $186,200 $268,842
2027 24 S85,122 S189,924 $275.046
2028 25 $81,675 S193,722 $281,397
2020 26 $90.306 S197.697 $287.903
2030 27 S93,016 $201,545 $294,563
201 28 $95.805 $205.579 S301384
2032 29 $95.679 $209,891 S308,370
2033 30 $101,640 S213,885 S315.525
2034 31 510D.000 $218.163 $318,163
2035 32 $100,000 S222.526 S322,526
2036 33 $100,000 $226,976 S326,976
2037 34 $100,000 S231.516 $331,516
2038 35 S100,000 S236,146 $336,146
2039 36 $1D0,000 $240.869 S340,869
2D40 37 SI00,000 $246.680 W5,686
2041 38 $100,000 $250.600 $350,600
2042 39 $100,000 $265,612 $355,612
2043 40 S100.000 $260,724 S360.724
2D44 41 S1D0.000 $265,939 $365.939
2046 42 $100,000 $211,258 $371,258
2D46 43 $100.000 $276,683 S378,6583
2047 44 $100,000 $282,216 $382,216
2046 45 S100,000 $287,861 $387.861
2049 46 $100,000 $293,618 "3,618
2050 47 3100.000 $299,490 S399.490
2051 48 $100.000 $305,480 S405.480
2052 49 $100,000 S311,590 S01,590
2063 50 $100,000 $317.822 $417,822
2054 51 $100,000 $324.179 $424.178
2055 52 $100,000 5330.662 $430,662
2056 53 $100.000 $337,275 5437,275
2057 54 S10O.D00 S458,694 $558,694
2059 55 51DO,000 S467,86B $56-1,568
2059 56 $100,000 S477.225 $577,225
2060 57 $100.000 S486,769 $586.769
2061 68 $100,000 $496.505 $596,605
Total: $4,797,964 $13,129,453 $17,927,417
City of Elgin
Agenda Item No.
D
September 3,2009 ,
TO: Mayor and Members of the City Council Stable
City G)vernmou
FROM: Sean R. Stegall, City Manager
David L. Lawry, General Services Group Director
SUBJECT: Bluff City Cemetery Parcel Purchase
it
PURPOSE
The purpose of this memorandum is to provide the Mayor and members of the City Council with
information to consider the purchase of a section of Bluff City Cemetery.
RECOMMENDATION
It is recommended that City Council approve the purchase of a new section of burial spaces at
Bluff City cemetery in the amount of$630,000.
BACKGROUND
In the spring of 2009,the City was approached by the Institute of Islamic Education (IIE) for the
purchase of multiple spaces at Bluff City Cemetery. After review of the surveyed sections and
undeveloped portions of the cemetery, the IIE would like to purchase a 1.33 acre of an
undeveloped portion of the south east part of the cemetery. This area is large enough to
accommodate 1,500 spaces and is adjacent to Section 25. The organization is willing to pay
$420 per space for a total purchase price of$630,000.
The proposed sale does not affect the burial cost for the service. This cost is currently $1,477 for
the internment service. It is anticipated that the 1,500 spaces will generate a future revenue
stream of$2,215,500 based upon 2009 pricing for the burial service.
The City will develop the section for use. This work includes installing a minor section of road,
an irrigation water line extension, tree removal, grading and surveying. Much of the work will
utilize in house staff and it is estimated that the cost for developing the section will be $23,100.
The current purchase price for a single space at Bluff City cemetery with flat stones is $700. The
proposed purchase price of$420 represents a 40% discount. A total of$78,750 will be paid to
the City upon approval of the agreement. The remaining balance will be paid over a seven year
Bluff City Cemetery Parcel Purchase
September 3, 2009
Page 3
ALTERNATIVES
1. The City Council may choose to approve the section purchase of Bluff City Cemetery by
the Institute of Islamic Education.
2. The City Council may not choose to approve the section purchase of Bluff City Cemetery
by the Institute of Islamic Education.
Respectfully submitted for Council consideration.
JB:cf
Attachment