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HomeMy WebLinkAbout20-127 Resolution No. 20-127 RESOLUTION AUTHORIZING EXECUTION OF AN ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT WITH 200 AIRPORT LLC (200 Airport Road) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, • that David J. Kaptain, Mayor, and Kimberly A. Dewis, City Clerk, be and are hereby authorized and directed to execute an Economic Development Incentive Agreement on behalf of the City of Elgin with 200 Airport LLC, for economic development assistance in connection with the development of 200 Airport Road, a copy of which is attached hereto and made a part hereof by reference. s/David J. Kaptain David J. Kaptain, Mayor Presented: : October 14, 2020 Adopted: : October 14, 2020 Omnibus Vote: Yeas: 9 Nays: 0 Attest: s/Kimberly Dewis Kimberly Dewis, City Clerk ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT This Economic Incentive Agreement(the "Agreement") is made and entered into as of this 14th day of October 2020, by and between the CITY OF ELGIN, an Illinois municipal corpora- tion(hereinafter referred to as the "City"), and 200 AIRPORT LLC, a Delaware limited liability company("200 Airport"). WHEREAS, 200 Airport is a Delaware limited liability company, affiliated with THOMAS ENGINEERING,LLC, a Delaware limited liability company("Thomas"); and WHEREAS,200 Airport will purchase the vacant, 48,300-square foot building at 200 Air- port Road(the"Subject Property") for Thomas' headquarters; and WHEREAS,Thomas is expected to employ 45 people full-time from the Subject Property; and WHEREAS, Thomas will invest approximately $1,000,000 inside the 48,300-square foot building to construct a new demonstration laboratory that mimics typical pharmaceutical facilities (hereinafter referred to as the "Subject Project"); and WHEREAS, to induce Thomas and 200 Airport into proceeding with the purchase of the Subject Property and the completion of the Subject Project, the City will provide "fast-track" per- mitting and waive City building permit, zoning, and utility installation fees associated with the construction of the Subject Project as hereinafter described in this Agreement; and WHEREAS, Thomas and 200 Airport will not proceed with the purchase of the Subject Property and the completion of the Subject Project in Elgin without certain economic development assistance from the City; and WHEREAS, section 8-11-20 of the Illinois Municipal Code (65 ILCS 5/8-11-20) author- izes municipalities, including the City, to enter into economic incentive agreements relating to the development or redevelopment of lands within the corporate limits of a municipality; and WHEREAS, the City is a home rule unit of government authorized to exercise any power and perform any function, including without limitation the provision of incentives for economic development, relating to its government and affairs; and WHEREAS, economic incentive agreements including the incentives and other provisions set forth in this Agreement pertain to the government and affairs of the City; and WHEREAS,the Subject Project is expected to create job opportunities within the City; and WHEREAS, the purchase and occupancy of the Subject Property by Thomas and the com- pletion of the Subject Project will serve to further the development of adjacent areas; and WHEREAS, without this Agreement, the purchase of the Subject Property and the com- pletion of the Subject Project would not be possible; and WHEREAS, Thomas and 200 Airport meet high standards of credit worthiness and finan- cial strength; and WHEREAS,the purchase and occupancy of the Subject Property by Thomas and the com- pletion of the Subject Project will strengthen the commercial and industrial sectors of the City; and WHEREAS,the purchase and occupancy of the Subject Property by Thomas and the com- pletion of the Subject Project will enhance the tax base of the City; and WHEREAS, this Agreement is made in the best interests of the City. 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.Recitals. The foregoing recitals are incorporated into this Agreement in their entirety. 2. Subject Project. 200 Airport, at its cost, shall improve the Subject Property with the Subject Project. The Subject Project shall substantially conform in all material respects with all applicable legal requirements,including,but not limited to,all city ordinances and codes,the terms of this Agreement, or as otherwise directed by the City as is necessary to comply with ordinances, building codes or other requirements of law. Except as otherwise provided in this Agreement, all costs and expenses relating to the Subject Project shall be the responsibility of and shall be paid for by 200 Airport. Provided prompt approval of the Subject Project by the City, 200 Airport shall commence construction of the Subject Project within three hundred and sixty five days(365) days of the entry into this Agreement, and shall use commercially reasonable efforts to complete the Subject Project no later than one hundred and eighty(180)days after the issuance of the associated building permit for the Subject Project, subject to delays beyond 200 Airport's reasonable control. The Subject Project shall be deemed completed when 200 Airport has completed the construction and installation all improvements relating to the Subject Project and the Subject Project has passed all inspections. 3.Economic Incentives. In consideration for 200 Airport's purchase of the Subject Property and undertaking and completion of the Subject Project, the City agrees to provide economic in- centives to 200 Airport to be used by 200 Airport solely for the Subject Project. Such economic incentives shall consist of and be distributed to 200 Airport as follows: "Fast-Track"Permitting Process and Waiver of Certain Development and Building Permit Fees The City will conduct a "fast-track"permitting process for 200 Airport and waive building permit, zoning and/or utility installation fees otherwise due and payable to the City in con- nection with the construction of the Subject Project on the Subject Property. The building permit, zoning, and/or utility installation fees the City is agreeing to waive pursuant to this 2 Agreement in connection with the Subject Project on the Subject Property are listed in Exhibit A attached hereto, and the total amount of fee waiver shall not exceed fifty thou- sand dollars ($50,000.00). Is it acknowledged and agreed that the estimated amounts for such fees listed in Exhibit A attached hereto are current estimates and that the final amounts for the various fees listed in Exhibit A will be determined and calculated by the City at the time of building permit application by 200 Airport. Notwithstanding anything else to the contrary in this Agreement, with the sole exception of the building permit, zoning, and/or utility installation fees listed in Exhibit A attached hereto, 200 Airport shall pay all other applicable fees and costs due to the City or third parties in connection with the Subject Project,including,but not limited to, impact fees required under the Elgin Municipal Code, 1976, as amended, engineering review fees, stormwater management review fees, zoning deposits, all fees required under applicable annexation agreements and recapture agree- ments,impact fees from other jurisdictions, any other governmental agency fees other than those of the City, any third-party City or county engineering review fees, and any utility fees. The building permit, zoning, and/or utility installation fee waivers and "fast-track"permit- ting process contemplated in this section shall not be extended to any future interior pro- jects, expansions, or additions on the Subject Property beyond the current Subject Project. 4. Miscellaneous. A. That this Agreement shall not be deemed or construed to create an employment,joint venture, partnership, or other agency relationship between the parties hereto. B. That all notices or other communications hereunder shall be made in writing and shall be deemed given if personally delivered or mailed by registered or certified mail, return receipt requested, to the parties at the following addresses, or at such other addressed for a party as shall be specified by like notice, and shall be deemed received on the date of such personal delivery or the second business day following the date of such mailing: TO THE CITY: TO 200 AIRPORT: Richard G. Kozal 200 AIRPORT ROAD City Manager 575 W. Central Road CITY OF ELGIN Hoffman Estates, Illinois 60192 150 Dexter Court ATTN: Brian T. Casey, Manager Elgin, Illinois 60120-5555 WITH A COPY TO: WITH A COPY TO: William A. Cogley Roger T. Stelle Corporation Counsel MELTZER, PURTILL & STELLE LLC CITY OF ELGIN 1515 E. Woodfield Road, Second Floor 150 Dexter Court Schaumberg, Illinois 60173 Elgin, Illinois 60120-5555 3 C. 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. D. 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. E. 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. F. That this Agreement is and shall be deemed and construed to be a joint and collective work product of the City and 200 Airport 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 in order to resolve any inconsistency, ambiguity, vagueness or conflict, if any, in the terms or provisions contained herein. G. That this Agreement is subject to and shall be governed by the laws of the State of Illinois. H. That this Agreement shall be binding on the parties hereto and their respective succes- sors 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 the parties hereto. I. The City and 200 Airport agree that, in the event of a default by the other party, the other party shall, prior to taking any such actions 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) days 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. J. If either party fails or refuses to carry out any of the material covenants or obligations hereunder, the other party shall be entitled to pursue any and all available remedies as specified herein or otherwise available at law, equity or otherwise. Notwithstanding the foregoing or any- thing else to the contrary in this Agreement, with the sole exception of an action to recover the fees the City has agreed to waive pursuant to the preceding paragraph 3 of this Agreement, no action shall be commenced by 200 Airport against the City for monetary damages. 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. Notwithstanding anything to the contrary stated herein or otherwise, 200 Airport's aggregate liability under this Agreement and in connection with its receipt of the economic incentive described herein shall be expressly limited to the value of the building permit, zoning and utility installation fee waivers received by 200 Airport from the City in connection with this Agreement and such economic incentive. K. Time is of the essence of this Agreement. 4 shall be construed, and the rights and obligations of the Cityand 200 L. This Agreements a g Airport hereunder shall be determined in accordance with the laws of the State of Illinois without reference to its conflict of laws rules. M. No past, present or future elected or appointed official, officer, employee, attorney, agent or independent contractor of the City shall be charged personally or held contractually liable under any term or provision of this Agreement Including, but not limited to, because of their ne- gotiation, approval, execution or attempted execution of this Agreement. N.Notwithstanding any other provisions of this Agreement, it is expressly agreed and un- derstood by 200 Airport and the City that in connection with the performance of this Agreement, that 200 Airport shall comply with all applicable federal, state, city and other requirements of law including, but not limited to, any applicable requirements regarding prevailing wages, minimum wage, workplace safety and legal status of employees. O.200 Airport,on behalf of itself and its respective successors,assigns and grantees hereby acknowledges the propriety,necessity and legality of all of the terms and provisions of this Agree- ment and does hereby further agree and does waive any and all rights to any and all legal or other challenges or defenses to any of the terms and provisions of this Agreement and hereby agrees and covenants on behalf of itself and its successors, assigns and grantees of the Subject Project, not to sue the City or maintain any legal action or other defenses against the City with respect to any challenges of the terms and provisions of this Agreement, other than with respect to any failure of the City to perform its obligations under this Agreement. The provisions of this section shall sur- vive any termination, completion and/or expiration of this Agreement. P.This Agreement may be executed in counterparts, each of which shall be an original and all of which shall constitute one and the same once duly executed and delivered to the other party. For the purposes of executing this Agreement, any signed copy of this Agreement transmitted by email or facsimile shall be treated in all manners and respects as an original document. The signa- ture of any party on a copy of this Agreement transmitted by email or facsimile shall be considered for these purposes as an original signature and shall have the same legal effect as an original sig- nature. Any such emailed or faxed copy of this Agreement shall be considered to have the same binding legal effect as an original document. At the request of either party, any email or facsimile copy of this Agreement shall be re-executed by the parties in an original form. No party to this Agreement shall raise the use of e-mail or facsimile as a defense to this Agreement and shall for- ever waive such defense. Q. If any provision or part thereof of this Agreement or the application of any such provi- sion or part thereof to any party,person or circumstance shall be held invalid, illegal or unenforce- able in any respect by a court of competent jurisdiction, then such invalidity, illegality or unen- forceability shall not affect any other provision or part thereof. R. This Agreement is conditioned upon 200 Airport becoming the fee owner of the Subject Property within one hundred and eight(180)days of the entry into this Agreement, and in the event 200 Airport does not become such fee owner, then this Agreement shall terminate and be of no further force or effect. In the event that 200 Airport does not become the fee owner of the Subject 5 Property within one hundred and eight (180) days of the entry into this Agreement, 200 Airport shall provide the City with written notice thereof after which this Agreement shall terminate and be of no further force or effect. IN WITNESS WHEREOF, the City and 200 Airport have executed this Agreement on the date and year first written above. CITY OF ELGIN 200 AIRP 1`'T LLC A By: ' By: David J. Kaptain, ay. Brian T. Casey, Manager Attest: het(j Kimberly Dew' City Clerk F:\COMMUNITY_DEVELOPMENT\ECONOMIC DEVELOPMENT\AIRPORT RD 200 THOMAS ENGINEERING\THOMAS ENGINEERING ECONOMIC INCENTIVE AGREEMENT FINAL 09-30-2020.DOCX 6 EXHIBIT A Listing of Building Permit, Zoning, and/or Utility Installation Fees to be Waived by the City in Connection with the Subject Project at 200 Airport Road Fee Category Estimated Amount Building Permit $37,500 Plan Review $9,375 Electrical $800 Plumbing .' $1,000 HVAC $1,000 Occupancy $200 Signage $100 Total $49,975.00 7