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HomeMy WebLinkAbout07-215 Resolution No. 07-215 RESOLUTION AUTHORIZING EXECUTION OF A DEVELOPMENT AGREEMENT WITH MPR PLASTICS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Ed Schock, Mayor, and Diane Robertson, City Clerk, be and are hereby authorized and directed to execute a Development Agreement on behalf of the City of Elgin with MPR Plastics for development of corporate offices at 1551 Scottsdale,a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schock, Mayor Presented: August 22, 2007 Adopted: August 22, 2007 Omnibus Vote: Yeas: 7 Nays: 0 Attest: s/Diane Robertson Diane Robertson, City Clerk DEVELOPMENT AGREEMENT This Development Agreement is made and entered into thi day of ,n"2007, by and between the CITY OF ELGIN, an Illinois municipal corporation, (hereinafter referred to as the "City") and MPR Plastics, an Illinois corporation (hereinafter referred to as "Developer"). WITNESSETH WHEREAS, Developer intends to purchase property located at 1551 Scottsdale Court, Elgin, Kane County, Illinois, and legally described on Exhibit A attached hereto (such property is hereinafter referred to as the "Subject Property") and WHEREAS, Developer intends to purchase, occupy and utilize the Subject Property for relocation of its precision, custom plastic molding business (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 Subject Development of the Subject Property is currently estimated to represent a $1,200,000 investment in improvements and is expected to result in the creation of 30 to 40 full-time employees and an additional 20 to 30 temporary employees in the City of Elgin by September 30, 2007; and WHEREAS, it is unlikely that the development of the Subject Property will occur in the absence of limited economic assistance; 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 with its manufacturing facility expansion, 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 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 the Subject Property with the Subject Development according to the site plan dated March 12, 2007 prepared by Harris Architects, attached hereto as Exhibit B. Developer shall complete all improvements for the Subject Development, occupy same and commence operations at the Subject Property on or before September 30, 2007. 3. That by September 30, 2007 the Developer shall create not less than fourteen (14) new full-time jobs, each with an annual salary in excess of $40,000, in the following types of positions: Plant Manager, Production Foreman, Production Manager, Director of Quality Control, Quality Control Manager, Engineer, Customer Service Manager, Controller, Mold maker, President. 4. That in consideration of Developer's intention to purchase the Subject Property and completing the Subject Development on the Subject Property and providing for the creation 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 the commencing operations of the Subject Development at the Subject Property on or before September 30, 2007, as required in the preceding Paragraph 2 hereof, and in the event of Developer creating and establishing not less than fourteen (14) new full-time jobs at the Subject Development on or before September 30, 2007, 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 Property with the total monies to be paid by the City to the Developer pursuant to this agreement not to exceed $14,000. The City shall pay such monies not to exceed $14,000 to the Developer upon receipt of acceptable documentation verifying the creation and establishment of such full-time jobs at the Subject Development and the issuance of a final certificate of occupancy for 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 September 30, 2007. 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 $14,000 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 five (5) 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 September 30, 2007, 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 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, send 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 MPR Plastics 150 Dexter Court 2110 South Foster Ave. Elgin, IL 60120-5555 Wheeling, IL 60090 Attention: City Manager Attention: Paul D. Doran 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. 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 Paragraph 2 and 3 hereof, Developer shall provide the City reasonable data and records of 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 MPR Plastics Corporation B ----------- By — — ---- -- — -- �— Ed Schock, Mayor Attest: ity Clerk ° t -awEv°�t�lgllieveeitiel�e..:�t�l. 00600���b s G H A4a � �it [ y� I .f .;fR.ijiii q. F� 8i s!s'gui`9l=d i��lti'�+�1183siS!LOcc > N 3 flit li t if i quip i� ..� if o � [j 11 1,� ,;1 pit �I lilll�i►1l�lj a t .. .... .. l n = ° D�< m — SDALC C n p D e� cn . C) p tb D F- N m p Cl) `> D Y C p m �r— m � p Z c cnN :.................. mr^ co - D y =:: - c ------------ F- 29 m O n 0 V1 Ov C) Ln it D C. � g 0% 1PI 2gyppSF.FEMM M EMM 6RV WAFBQ$F"TT:3 !•rR f L/yJI IW MAIM AFI CNI Ti _-NC. 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P.%rc['a S r•AL AAO N COrORPM COMAACIC•Y.IA101r.L N.00Mrpt IIL zo.„ OAwl1lT 01CTI rllaelNAwrlI ND rN YWLr1WrF aIID �VOpt�1 wM...OrA C1Aw tYAYr.tmN.er0 A1rIl1 YMr[ OATABAY'1 eOrrLpt�3aw 10M11DN eRM.W[iNT I� FIs. IMI. d.TAM M W CPMLIW w LLAMA.Ca �AlrlbwD MIYw.N R DICT WNL-10(11 rfA.CILM TO lOIr..1w1 D ravine mw rNr[.u1m ro rrAl xn S�IQ OA CNrM �p r1aW11.I171111aYL Y MrwmO I'[0.0 1aF1sfETs Agenda Item No. 3 , . g City of Elgin March 9, 2007 `� NOATHWfiST 010 -All K�. TO: Mayor and Members of the City Council rnr�^r!k Growd-afw' FROM: Olufemi Folarin, City ManagelEconomic 1 »rprr,tcd 7.u,x 134se Raymond H. Moller, Director Development & Business Services SUBJECT: Jobs Incentive Grant/MPR Plastics, Inc. PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information.to consider providing MPR Plastics, Inc. a jobs grant. RECOMMENDATION It is recommended that the City Council authorize a Jobs Incentive Grant with MPR Plastics, Inc. • in the amount of$14,000. BACKGROUND MPR Plastics, Inc. is considering purchasing a building at 1551 Scottsdale Court in Elgin and moving from their current location in Wheeling. The purchase price for the Elgin location is $2.7 million. It is anticipated that MPR will occupy the building in July, 2007. They have been in ° business for 36 years and specialize in high precision, custom plastic injection molding. They are a rapidly growing company with $5 million in sales in 2006. Some of their customers include ITW, General Electric and Fischer Scientific. They make parts used in a wide array of products including laboratory pumps, pneumatic regulators, GE Dishwashers, the M-1 Abrams Tank, John Deere Combines, pneumatic nail guns, water softeners, water process controls and mobile antennas. They have between 30 and 40 employees and will be using an additional 20 to 30 workers from local temporary labor agencies. They currently employ 14 employees that have compensation over $40,000 per year. As an inducement for new firms to locate in Elgin, the City Council has previously authorized one time payments of$1,000 per job for jobs paying $40,00 or more on an annual basis. The fourteen positions are: Plant Manager; Production foreman 1, 2 and 3; Production Manager; Director of Quality Control; Quality Control Manager; Engineer; Engineer 2; Customer Service • Mariager, Controller; Moldmaker; Moldmaker 2; and President. r' • Jobs Incentive Grant/MPR Plastics, Inc. March 9, 2007 Page 2 COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None FINANCIAL IMPACT he total incentive to: Plastics is $14,000. There are sufficient funds available in the Riverboat Lease Fund, account number 276-0000-791.80-27, Economic Development Incentives ($1,095,000) to fund the job incentive grant. To date $640,898 has been encumbered or expended from this account. Following an approval of this expenditure, $440,102 remains available. LEGALIMPACT Vg/A Development Agreement will be required. ALTERNATIVES 1. The City Council may choose to approve a Development Agreement with MPR Plastics, Inc. • 2. The City Council may choose to deny this request from MPR Plastics, Inc. Respectfully submitted for Council consideration. RHM/j r Attachment • MPR . Jeh Precision Molding Specialises Elgin Chamber of Commerce Economic Development Director of Elgin Attn: Ray Moller 31 South Grove Avenue Elgin, IL 60120 December 13,2006 Dear Mr.Moller, MPR Plastics, Inc. is considering purchasing a building at 1551 Scottsdale Court in Elgin and moving from our current location in Wheeling. We have been in business for 36 years and specialize in high precision,custom plastic injection molding. We are a rapidly growing company with 5 million in sales in 2006. Some of our customers include FTW, General Electric and Fischer Scientific. We make parts used in a wide array of products • including laboratory pumps,pneumatic regulators,GE Dishwashers,the M-1 Abrams Tank, John Deere combines, pneumatic nail guns,water softeners,water process controls and mobile antennas. For more information,visit our website at www.mprplastics.com. We will have between 30 to 40 employees and will be using an additional 20 to 30 workers from local temporary labor agencies. We currently employ 12 employees that have compensation over S 40,000 per year. Please advise of any incentives and programs that are available to us that can help us make (he decision to move to Elgin from our existing location. Such incentives will play a fundamental role in our decision making process. Thank you very much for your consideration. incerely, Paul D. Doran President • MPR Plastics, Inc• 2110 South raster Avenue •Wheeling, Illinois 60090 • (847) 394.1080 • (847) 394-1082• wwwmprplastics.com MPR he Precision Molding Specialists Elgin Chamber of Commerce Economic Development Director of Clgin Attn: Ray Moller 31 South Grove Avenue Elgin, IL 60120 January 24,2007 Dear Mr.Moller, As per your voice mail request to Paul Doran, here are-the job descriptions for the 12 people that have compensation over S 40,000 per year a:stated La aur letter to you dated December 13,2006. Since the letter. one additional employee has been added and another one will be added by the end of February. 1) Plant Manager_ Responsible for all aspects of production and operations of the plant. Plans and directs operations to meet production runs,manages plant employees. Ensure production totals are accurate and entered on the ERP system correctly. 2) Production Responsible for production of parts for the 1"shift. Supervises plant Foreman #1 employees,prepares machines for production, oversees the processing of production runs and ending production runs. 3) Production Responsible for production of parts for the 2'd shift. Supervises plant Foreman #2 employees, prepares machines for production,oversees the processing of production runs and ending production runs. 4) Production Responsible for production of parts for the 3`d shift. Supervises plant Foreman#3 employees, prepares machines for production, oversees the processing of production runs and ending production runs. 5) Production Responsible for preparing machines for production, maintaining production Manager runs and ending production runs. Works in conjunction with Production Foreman and also supervises plant employees. 6) Director of Responsible for the operations involving Quality Control Assurance. Quality Control Involves planning and direcling responses and corrective actions necessary when non-conforming parts are produced. Communicates with customer involving complaints and requesting part blueprints and measurement guidelines. 7) Quality Control Responsible for supervising Quality Control Inspectors and ensuring parts Manager are being accurately measured and inspected. Interacts with Production Foreman to ensure non-conforming parts are handled correctly. MPR Plastics,lnc. • 2110 South Foster Avenue•Wheeling, Illinois 60090• (847) 394-1080 • (847) 394.1082• %Y%vw.mprplastics.com J1 MPR The Precision Molding Specialists 8) Engineer Issues quotes on repairs and creations of molds and production runs. Oversees repairs and creation of molds to ensure conformance to part blueprints and guidelines.Directs Moldmaker activities and scheduling. Interacts with Quality Control in correcting non-conforming parts. 9) Engineer#2 Issues quotes on repairs and creations of molds and production runs. Oversees repairs and creation of molds to ensure conformance to part blueprints and guidelines. Works with Quality Control in correcting non- conforming parts. 10) Customer Service Responsible for customer interaction. Prepares work orders for production. Manager Calculates and orders needed raw materials to process production runs. Creates shipping paperwork and ensures orders are sent properly and orders were fulfilled correctly. Calculates and prepares invoices. Interacts with all other production positions. 11) Controller Responsible for financial reporting and financing needs. Ensures the company IT needs are met and working properly. Prepares payroll and provide HR functions. Ensure orders were entered and processed correctly on ERP computer system. Applies payments of customer invoices and . oversee collections. Prepares checks and wire payments to vendors. 12) Moldmaker Repairs and performs maintenance on molds, assists in the creation of molds. Calculates and prepares estimates and quotes. Creates fixtures used to aid in production. 13) Moldmaker#2 Job duties similar to Moldmaker. To be filled in February. 14) President Oversees the entire operation of organization. Interacts with customers, vendors and managers. Prepares company strategy and policy. Provides engineering support when needed. Please contact me if you need additional information. Thank you very much for your consideration. Sincerely, 4/Z4- Mark LaBadie Controller • M PR Plastics,Inc.• 2110 South Foster Avcnue•Wheeling, Illinois 60090• (847)394-1080• (847) 394-1082•www.mprplastics.com