The URL can be used to link to this page

Home My WebLink About08-293 i 1 Resolution No. 08-293 RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT WITH GIFFORD 300, L.L.C. IN CONNECTION WITH THE BLUFF CITY QUARRY AREA PROPOSED TIF DISTRICT BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Olufemi Folarin,City Manager,and Diane Robertson, City Clerk,be and are hereby authorized and directed to execute an agreement on behalf of the City of Elgin with Gifford 300, L.L.C. for reimbursement to the City of Certain Costs relating to Bluff City Quarry Area proposed TIF District, a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schock, Mayor Presented: December 17, 2008 Adopted: December 17, 2008 Omnibus Vote: Yeas: 6 Nays: 0 Attest: s/Diane Robertson Diane Robertson, City Clerk } FEES AND COSTS REIMBURSEMENT AGREEMENT THIS AGREEMENT is made and entered into this 3rd day of December, 2008, by and between the City of Elgin an Illinois municipal corporation (hereinafter referred to as the "City") and Gifford 300, LLC, an Illinois limited liability company (hereinafter referred to as the "Owner"); and WHEREAS, the Owner has requested that the City take the following action (the "Municipal Action"), to wit, enact or adopt legislation that will cause certain property owned by the Owner at the south east corner of Gifford Road and Bluff City Boulevard in the City of Elgin, Illinois (the "Subject Property") as a Redevelopment Project Area (hereinafter a "TIF District") as defined under the Tax Increment Allocation Redevelopment Act (the "Act")(65 ILCS 5/11-74.4-1 et. seq.); and WHEREAS, in analyzing and (at the sole discretion of the City) implementing the requested Municipal Action, the City expects to incur fees and costs including, without limitation, fees and costs payable to Kane, McKenna and Associates, Inc. in connection with such consultant's (i) preparation and presentation of a feasibility analysis of the proposed TIF District and (ii) consulting with the City in connection with the redevelopment agreement with the Owner (collectively the"Fees and Costs"); and WHEREAS, the City is unwilling to embark on its consideration of the requested Municipal Action unless the Owner agrees to reimburse the City for the Fees and Costs as herein provided; NOW, THEREFORE, the undersigned Owner does hereby covenant and agree as follows: I. The Owner shall promptly reimburse the City for such Fees and Costs as the City may from time to time incur; provided, however, that unless and until this Agreement is hereafter amended so as to increase such limit, the Owner shall not be required to reimburse the City more than an aggregate of Seventy-five Thousand Dollars ($75,000) of such Fees and Costs (the "Aggregate Reimbursement Limitation"). The City shall periodically (not less frequently than quarterly) provide to the Owner copies of invoices reflecting the Fees and Costs for which the City seeks reimbursement. 2. Subject to the Aggregate Reimbursement Limitation, the Owner's covenant as contained in paragraph 1 above shall apply to all such Fees and Costs incurred by the City prior to such date (if ever) as the Owner shall have notified the City in writing that the Owner has elected to withdraw its request for the Municipal Action. 3. To secure its obligations to the City hereunder, the Owner shall deposit with the City the sum of Twenty Thousand Dollars ($20,000) (the "Escrow Deposit"). The City shall have the right to withdraw from the Escrow Deposit such Fees and Costs as may from time to time be due and owing by the Owner to the City, and shall account for all such withdrawals to the Owner. The amount of such Escrow Deposit shall not limit the Owner's obligation to the City hereunder. Further, any balance of the Escrow Deposit remaining after the payment to the City of all Fees and Costs due and owning by the Owner shall be promptly refunded by the City to the Owner. 4. This agreement shall not be construed so as to create a partnership,joint venture, employment or other agency relationship between the parties hereto. IN WITNESS WHEREOF, the parties have entered into and execute this agreement as of the 3rd day of December, 2008. OWNER: CITY: GIFFORD 300, LLC CITY OF ELGIN By: By: \ .w�.... Name: William E. Haworth City anage Title: Manager Attest: City Clerk C:\Users\billh\AppData\L.ocal\Microsoft\Windows\Temporary Internet Files\ContenLOutlook\FN UC I OQ3\Reimbursement Undertaking-O.doc - 2 - November 26,2008 ; 1 TO: Mayor and Members of the City Council y ,3, FROM: Olufemi Folarin, City Manager William A. Cogley, Corporation Counsel SUBJECT: Proposed Agreement with Kane, McKenna and Associates, Inc. for Consultant Services in Connection with the Bluff City Quarry Area as a Proposed Tax Increment Financing Redevelopment Project Area and a Proposed Agreement with Gifford 300, LLC Providing for Reimbursement to the City of Certain Costs Relating to the Bluff City Quarry Area PURPOSE The purpose of this memorandum is to submit to the Mayor and members of the City Council a proposed agreement with Kane, McKenna and Associates, Inc. for consulting services in connection with the Bluff City Quarry Area as a proposed tax increment financing redevelopment project area and a proposed agreement with Gifford 300, LLC providing for the reimbursement to the City of its costs in connection with the agreement with Kane McKenna and certain other costs relating to the Bluff City Quarry Area. RECOMMENDATION It is recommended that the City Council authorize the proposed agreement with Kane McKenna for consulting services in connection with the Bluff City Quarry Area as a proposed tax increment financing redevelopment project area. It is further recommended that the City Council approve a proposed reimbursement agreement between the City and Gifford 300, LLC providing for the reimbursement to the City of its costs in connection with the agreement with Kane McKenna and certain other costs relating to the Bluff City Quarry Area. BACKGROUND On September 10, 2008,the City Council adopted Resolution 08-216 providing for a feasibility study on the designation of the Bluff City Quarry Area as a proposed tax increment financing redevelopment project area. Attached is a proposed agreement with the consulting firm Kane McKenna and Associates, Inc. for consulting services regarding the proposed TIF area. Phase I services would involve such a feasibility study including investigating the desirability and feasibility of using tax increment financing or other appropriate economic development incentives and funding for the proposed TIF district resulting in a TIF eligibility report. If a TIF is determined to be advisable, Phase II and Phase III services would then be provided. Phase II services would involve the preparation of a redevelopment plan and project. Phase III services would involve implementation of the Proposed Agreement with Kane, McKenna and Associates, Inc. November 26,2008 Page 2 redevelopment plan and project. The attached agreement authorizes Phase I services. Such services would not exceed $15,000. Phase II or Phase III services will require future approval by the City Council. Kane McKenna is considered one of the preeminent TIF consultants in the State of Illinois and has substantial experience with numerous Illinois communities in studying and implementing TIF districts. A copy of a statement in qualifications and background of Kane McKenna dated September 2008 is attached. Also attached is a proposed agreement between the City and Gifford 300, LLC. Gifford 300, LLC is the major property owner within the Bluff City Quarry Area. Such agreement provides for Gifford 300, LLC to reimburse the City its fees and costs incurred pursuant to the Kane McKenna agreement or otherwise in connection with the Bluff City Quarry Area study. The initial limit on such reimbursement is $75,000. Gifford 300, LLC will also deposit an initial $20,000 with the City or payment of the initial fees and costs. In the event the City's costs exceed the aggregate amount of $75,000, the City will request the owner increase such amount by way of amendment to the agreement. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED Gifford 300, LLC FINANCIAL IMPACT None at this time. The City's costs pursuant to the agreement with Kane McKenna will be reimbursed by Gifford 300, LLC. LEGALIMPACT The proposed agreement with Kane McKenna would be considered an exception to the City's procurement ordinance thereby requiring approval of two-thirds of the members of the City Council now holding office. ALTERNATIVES 1. The City Council may choose to approve the proposed agreements with Kane McKenna and Gifford 300, LLC as presented or in an amended form. 2. The City Council may choose to not approve agreements for the study of the proposed Bluff City Quarry TIF Area and do not proceed with any feasibility analysis for such area. Respectfully submitted for Council consideration. WAC/bf Attachments