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Home My WebLink About06-245 • Resolution No. 06-245 RESOLUTION AUTHORIZING EXECUTION OF A PARTICIPATION AGREEMENT WITH BIGGERS CHEVROLET UNDER THE COOK COUNTY AUTOMOBILE DEALERSHIP INCENTIVE PROGRAM 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 Participation Agreement on behalf of the City of Elgin with Biggers Chevrolet under the 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: October 11, 2006 Adopted: October p11, 2006 Omnibus Vote: Yeas: 7 Nays: 0 Attest: s/Dolonna Mecum Dolonna Mecum, City Clerk PARTICIPATION AGREEMENT IN CITY OF ELGIN COOK COUNTY AUTOMOBILE DEALERSHIP INCENTIVE PROGRAM This agreement made and entered into this 02rn day of OGTD/'E/z , 2006, by and between the CITY OF ELGIN, an Illinois municipal corporation (hereafter referred to as the "City") and Biggers Chevrolet, an Illinois corporation (hereafter referred to as "Biggers Chevrolet- Isuzu"). WITNESSETH WHEREAS, the City Council of the City of Elgin has previously enacted Ordinance No. T1-04 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, Biggers Chevrolet has made application to the City to participate in the Investment Grant portion of the incentive program; and WHEREAS, the City Council has determined that it is in the best interest of the City to approve Biggers Chevrolet application to participate in the Investment Grant portion of the program. 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 as follows: 1. That the application of Biggers Chevrolet to participate in the Investment Grant portion of the City of Elgin Cook County Automobile Dealership Incentive Program is hereby approved by the City Council of the City of Elgin. The application of Biggers Chevrolet-Isuzu, bid award for exterior light replacement to Power and Lighting Systems, Inc. of Shiller Park, Illinois and Parking lot resurfacing to J & R Asphalt of Hickory Hills, Illinois are incorporated herein and made a part of this agreement. 2. That the terms of Ordinance No. T1-04, a copy of which is attached hereto, are hereby incorporated into this agreement in their entirety. Biggers Chevrolet agrees to comply with all conditions and terms as specified in the automobile dealership incentive program and as set forth in the attached Ordinance No. T-1-04. 3. That Biggers Chevrolet hereby agrees that upon the approval of the Investment Grant Application the dealer has up to two years to complete capital improvements. The City of Elgin will pay half of the grant amount in the first month that improvement construction begins, with the balance being paid in 13 months or when construction is completed, which ever comes first. The required improvements must be completed within the two-year period or all grant money previously distributed will be forfeited. The required improvement must be completed within the two- year period and Biggers Chevrolet-Isuzu must still be operating an automobile dealership within the City of Elgin or all grant money previously distributed must be repaid to the City of Elgin within thirty (30) days of the expiration of the said two-year period. 4. That is consideration of Biggers Chevrolet participating in the Cook County Auto Dealership Investment Grant Program, the City agrees that Biggers Chevrolet is eligible to receive grant assistance in the amount of$30,000. IN WITNESS WHEREOF, the parties have entered into and executed this agreement on the date and year first written above. CITY OF ELGIN BIGGERS CHEVROLET by by ayor Jame . Leichter Pre dent Attest: Attest: City Clerk L/ September 8, 2006 , T L d7TT7mT mil 1: TO: Mayor and Members of the City Council • rrnwnui cwwth uiJ FROM: Olufemi Folarin, City Manager I)irrc,ditd lay Bil,e Raymond H. Moller, Director of Economic Development SUBJECT: Cook County Automobile Dealership Incentive Program Application—Biggers Chevrolet PURPOSE The purpose of this memorandum is to provide information to the Mayor and members of the City Council to consider an agreement with Biggers Chevrolet for participation in the Cook County Automobile Dealership Incentive Program. RECOMMENDATION It is recommended that the Mayor and members of the City Council authorize staff to enter into a participation agreement with Biggers Chevrolet in the amount of $30,000 for the Investment Grant Program of the Cook County Automobile Dealership Incentive Program. BACKGROUND On August 28, 1996, the City Council passed an ordinance establishing an incentive program for automobile dealerships located in the Cook County portion of Elgin. Since that time, several amendments have been adopted by the Council affecting the program. The Cook County Automobile Dealership Incentive Program consists of three elements: 1. Sales Tax Sharing Agreement: Any Elgin automobile dealership whose facility is located in Cook County may take advantage of the sales tax sharing agreement by making a capital improvement to their facility of more that 200% of the average sales taxes paid over the past three years. During the next five years, the eligible dealership will receive 50% of the increased local sales tax revenue generated over the business's three year average sales tax base. 2. Investment Grant Program: Automobile dealers who make capital investments of at least $50,000 and up to $200,000 may be eligible for a 15% investment grant from the City. Upon approval, a participating dealer has up to two years to complete capital improvements. The City will pay half of the grant amount in the first month that improvement construction begins, with the balance being paid in thirteen months or when • Cook County Auto Dealership Incentive September 8, 2006 Page 2 construction is completed, whichever comes first. The required improvements must be completed within the two year period or all grant money previously distributed will be forfeited. Dealers are eligible for the Investment Grant Program only once every five years. 3. The Business Retention Rebate: To be eligible for the 35% business retention rebate, a dealership must agree, in writing, to continue their retail operations in Elgin for a period of at least five years. All sales tax information received from the Illinois Department of Revenue is required to remain confidential. The total cost of the current request submitted by Biggers Chevrolet is $223,600 for electrical and paving services. The dealership is also indicating that an additional $100,000 in façade and signage improvements is planned in the near future. The current structure of the Investment Grant Program limits the value of the improvements eligible for assistance at $200,000 and the frequency of participants to once within a five year period. Under current guidelines, Biggers Chevrolet is eligible for a grant of$30,000. Biggers Chevrolet last participated in the program in 1997, receiving a grant of$30,000. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None FINANCIAL IMPACT The grant award to Biggers Chevrolet would total $30,000. There are sufficient funds budgeted ($286,777) and available ($249,944) in the Riverboat Fund, account number 275-0000-791-80- 24, "Economic Development Incentives/Car Dealers,"to fund this grant. LEGAL IMPACT None ALTERNATIVES 1. The Council may choose to authorize a Cook County Auto Dealership Incentive Grant with Biggers Chevrolet in the Amount of$30,000. 2. The Council may choose not to authorize a grant with Biggers Chevrolet. Respectfully submitted for Council consideration. RHM/dr RIGGERS CHEVROLET-1SUZ 1305 E.CHICAGO STREET CIL OWL I CHEVROLET ELGIN,ILLINOIS 60120 IiIRGFR (047)742-0000 _- i�tr CHEVROL.ET •rBIGGERS y, c 1 , � "We'a feat arky e(iec�nole6 Vest" E.lI.N [!�. ��" '� r� ` �i, VISIT OUR WEB SITE AT hLIpJAvwW.bloperxJievy.com imam: p n welmialfi 1 • w1 . . ,o' � 7` . i,7K ".` . ` ...- . .1 Q-. .' Augusli20,12u i • .� h{ - ;w--- +^ City of Elgin 150 Dexter Ct Elgin, Illinois 60120 Atten: Ray Moller Dear Ray, • As per our discussion,Biggers Chevrolet is applying for the Cook County Automobile Dealership Incentive Program. Attached you will find copies of bids for both exterior light replacement and parking lot resurfacing. . The light bids are as follows: Power and Lighting, Inc. $58,600.00 Four Seasons Display $65,282.31 CB MC Inc Clabordone $82,628.90 • (by Crosstown Electric) Fitzgerald Lighting $73,190.00 Single Source Sales $83,485.00 Power and Lighting Systems Inc of Schiller Park, Illinois was awarded the contract The parking lot bids are as follows: J&R Asphalt $165,000.00 Rose Paving $224,097.00 Rabine Paving $329,449.30 J&R Asphalt of Hickory Hills, Illinois was awarded the paving contract. Total for the projects is$223,600.00. Additional upgrade to the facility will be done soon. This includes exterior fascia treatment. The initial estimate from the architect for this project will be in excess of$100,000.00. If any further information is required,please feel free to contact me at 847-742-9000. Thank you for your consideration in this matter James B L 'chter • esident Jerry Biggers Chevrolet ,c,1 OF E�Ci 2 ` City of Elgin pB1B10Mi�1 Agenda Item No. o�' ilia,;,- c)447colk" 11,41 September 8, 2006 -°•° ¢'- NORTHWEST -.4 TO: Mayor and Members of the City Council r,.{B,,,,;, C,ro;,,,„,,, FROM: Olufemi Folarin, City Manager --= ) "'tu r'' R" Raymond H. Moller, Director o Economic Development SUBJECT: Cook County Automobile Dealership Incentive Program Application—Biggers Chevrolet PURPOSE The purpose of this memorandum is to provide information to the Mayor and members of the City Council to consider an agreement with Biggers Chevrolet for participation in the Cook County Automobile Dealership Incentive Program. RECOMMENDATION It is recommended that the Mayor and members of the City Council authorize staff to enter into a participation agreement with Biggers Chevrolet in the amount of $30,000 for the Investment Grant Program of the Cook County Automobile Dealership Incentive Program. BACKGROUND On August 28, 1996, the City Council passed an ordinance establishing an incentive program for automobile dealerships located in the Cook County portion of Elgin. Since that time, several amendments have been adopted by the Council affecting the program. The Cook County Automobile Dealership Incentive Program consists of three elements: 1. Sales Tax Sharing Agreement: Any Elgin automobile dealership whose facility is located in Cook County may take advantage of the sales tax sharing agreement by making a capital improvement to their facility of more that 200% of the average sales taxes paid over the past three years. During the next five years, the eligible dealership will receive 50% of the increased local sales tax revenue generated over the business's three year average sales tax base. 2. Investment Grant Program: Automobile dealers who make capital investments of at least $50,000 and up to $200,000 may be eligible for a 15% investment grant from the City. Upon approval, a participating dealer has up to two years to complete capital improvements. The City will pay half of the grant amount in the first month that improvement construction begins, with the balance being paid in thirteen months or when Cook County Auto Dealership Incentive September 8, 2006 Page 2 construction is completed, whichever comes first. The required improvements must be completed within the two year period or all grant money previously distributed will be forfeited. Dealers are eligible for the Investment Grant Program only once every five years. 3. The Business Retention Rebate: To be eligible for the 35% business retention rebate, a dealership must agree, in writing, to continue their retail operations in Elgin for a period of at least five years. All sales tax information received from the Illinois Department of Revenue is required to remain confidential. The total cost of the current request submitted by Biggers Chevrolet is $223,600 for electrical and paving services. The dealership is also indicating that an additional $100,000 in façade and signage improvements is planned in the near future. The current structure of the Investment Grant Program limits the value of the improvements eligible for assistance at $200,000 and the frequency of participants to once within a five year period. Under current guidelines, Biggers Chevrolet is eligible for a grant of$30,000. Biggers Chevrolet last participated in the program in 1997, receiving a grant of$30,000. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None (OfkFINANCIAL IMPACT ik The grant award to Biggers Chevrolet would total $30,000. There are sufficient funds budgeted ($286,777) and available ($249,944) in the Riverboat Fund, account number 275-0000-791-80- 24, "Economic Development Incentives/Car Dealers,"to fund this grant. EGALIMPACT None ALTERNATIVES 1. The Council may choose to authorize a Cook County Auto Dealership Incentive Grant with Biggers Chevrolet in the Amount of$30,000. 2. The Council may choose not to authorize a grant with Biggers Chevrolet. Respectfully submitted for Council consideration. RHM/dr . RIGGERS C :"E". G®LET--E a OW 1385 E.CHICAGO STREET GY � I:�Us!1 CHEVROLET ELGIN,ILLINOIS 60120 LIKIMs aQ�.Iw. 'LiIflOERS� (047)742-�J000 -X r..— --- .- . . ... -- I.- -131G Ess {;� t= . �rr��e �r G em ry e,.s4i �'}CHEVROL.ET ~�— 118141 �{ ; ;• �l,„ - �' .. ,,:, .q VISIT OUR WEB SITE AT hllpJ/www.bi09erschovy.com - ..�AiCgus 20�20. --— —: City of Elgin 150 Dexter Ct Elgin, Illinois 60120 Atten: Ray Moller Dear Ray, • As per our discussion, Biggers Chevrolet is applying for the Cook County Automobile Dealership Incentive Program. Attached you will find copies of bids for both exterior light replacement and parking lot resurfacing. . The light bids are as follows: Power and Lighting, Inc. $58,600.00 Four Seasons Display $65,282.31 CB MC Inc Clabordone $82,628.90 • (by Crosstown Electric) Fitzgerald Lighting $73,190.00 Single Source Sales $83,485.00 Power and Lighting Systems Inc of Schiller Park, Illinois was awarded the contract The parking lot bids are as foIIows: J&R Asphalt $165,000.00 Rose Paving $224,097.00 Rabine Paving $329,449.30 J&R Asphalt of Hickory Hills, Illinois was awarded the paving contract. Total for the projects is$223,600.00. Additional upgrade to the facility will be done soon. This includes exterior fascia treatment. The initial estimate from the architect for this project will be in excess of$100,000.00. If any further information is required,please feel free to contact me at 847-742-9000. Thank you for your consideration in this matter James B Lechter esident Jerry Biggers Chevrolet