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INTERGOVERNMENTAL COOPERATION AGREEMENT
The City of Elgin, Illinois (the "City") , the Public Building
Commission of Kane County, Kane County, Illinois (the "Commission")
and Community College District No. 509, Elgin Community College,
State of Illinois (the "College") , agree as follows, as of June 1,
1987 :
Section 1. Definitions. The following terms shall have the
following meanings when used in this Agreement.
"Agreement" means this intergovernmental cooperation agree-
ment.
"Bond Registrar" means the bond registrar and paying
agent for the Commission Bonds.
"College Tax" means the direct annual tax levied by the
College pursuant to Section 18 of the PBC Act and the Initial
Lease.
"Commission Bonds" means those bonds, issued by the Commission
pursuant to the Commission Bond Resolution, to finance the Project.
"Commission Bond Resolution" means the resolution of the
Commission providing for the issuance of the Commission Bonds.
"Conveyance Act" means An Act in relation to the transfer of
interests in real estate by units of local governments or school
districts, as amended, (Ill. Rev. Stat. 1983, ch. 30 , par. 156 et '
seq. )
"County" means Kane County, Illinois.
"Lease" means the lease between the Commission and the College.
"PBC Act" means the Public Building Commission Act, as amended,
(Ill. Rev. Stat. 1983, ch. 85 , par. 1031 et seq. )
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"Project" means the acquisition of the Public Building for use
by the College as a educational extension center in the downtown
area of the City.
"Public Building" means that building located on the Site.
"Recorder" means the Recorder of Deeds of the County.
"Site" means the real estate described as follows :
All of lot 5, and the easterly 15.74 feet of Lot 12, and that part of
lots 3, 4, 13, 14 and 16 which lie southwesterly of the southwesterly right-
of-way line of the Chicago and Northwestern Railway Company, all in
Block 13 of J. T. Giffords Plat of Elgin, in the City of Elgin, Kane County,
Illinois.
"Termination Date" means the date on which the Commission
Bonds have been paid in full.
2 . Nature and Purpose of Agreement. This Agreement is an
intergovernmental cooperation agreement entered into pursuant to
Article VII , Section 10 of the Illinois Constitution of 1970 and
the Intergovernmental Cooperation Act, as amended (Ill. Rev. Stat. ,
1983 , ch. 127 , par. 741 et seq. ) . The City, the Commission and the
College intend and expect that the Commission will acquire the
Public Building and lease the Public Building to the College for
use as an educational extension center in the downtown area and
central business district of the City. The College will then use
the Public Building to provide educational courses , programs and
services to meet the educational needs of those persons residing or
working in the City and of residents of other areas within the
territorial boundaries of the College.
The use of the Public Building proposed by the College is one
which will attract people to the downtown area and central business
district of the City, helping to promote the revitalization and
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redevelopment of such area. Thus , the use of the Public Building
by the College is in the best interest of the City, the College and
the Commission.
Under certain circumstances as described herein, the Public
Building may not be leased to and used by the College as an educa-
tional extension center. The City wishes to ensure that, in such
event, the Public Building will be used for such purposes as will
also promote and enhance the revitalization and redevelopment of
the downtown area and central business district of the City.
In furtherance of the various objectives of the parties to
this Agreement, it is the purpose of this Agreement to set forth
the respective understandings , covenants and obligations of the
City, the Commission and the College with respect to the purchase,
conveyance, improving, altering, equipping, use, occupancy and dis-
position of the Site and the Public Building.
Section 3 . Acquisition and Initial Conveyance to the Commission.
The City has fee simple title to the Site. Pursuant to the provi-
sions of the Conveyance Act, and in respect of the declaration by
the College that it is necessary and convenient for the Commission
to use and occupy the Public Building for purposes of establishing
an educational extension center in the downtown area of the City, the
City shall convey all of its right, title and interest in and to the
Site to the Commission. The instrument of conveyance required by the
Conveyance Act to effectuate such transfer from the City to the
Commission shall be recorded in the Office of the Recorder.
Section 4 . Financing the Project. The Commission will use
its best efforts to issue the Commission Bonds in an amount
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sufficient to finance the Project. The City agrees to purchase the
Commission Bonds .
Section 5 . Use and Occupancy of the Building by the College.
The College and the Commission agree to enter into and execute the
Lease at or prior to the time the Commission Bonds are issued and
delivered. The College and the Commission shall comply with all of
the terms and conditions of the Lease. It is acknowledged and agreed
that the execution of and compliance with the Lease is in furtherance
of the various purposes and objectives set forth in Section 2 hereof.
Section 6 . Sublease by the College . To ensure that the use and
occupancy of the Public Building shall be consistent with and in
furtherance of the various purposes and objectives set forth in
Section 2 hereof , the Commission shall not approve any sublease by
the College of the Public Building or any part thereof, pursuant to
the Lease, without the prior written consent of the City.
Section 7 . Termination of Lease . If at any time the financing
structure described in the Initial Lease is determined by a final,
non-appealable judgment of a court of competent jurisdiction to be
invalid and/or ultra vires with respect to the College and the College
is, as a result, unable to collect the College Tax, the College may
terminate the Lease.
Section 8 . Notice of Litigation. In the event that litigation
is initiated seeking to invalidate the Financing Structure, to stop or
enjoin the collection of the College Tax or for purposes or relief
related thereto, the College shall promptly notify the City and the
Commission. The College shall also ensure that the City and the
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Commission are served with copies of all pleadings and other court
papers and documents filed in any such litigation.
Section 9 . Conveyance of Building Prior to the Termination Date.
If prior to the Termination Date, the College is not the Lessee under
the Lease, the Commission shall convey the Site to the City or may
with the prior written consent of the City, convey the Site to a third
party; provided, however, that any such conveyance shall be consistent
with and in furtherance of the various purposes and objectives set
forth in Section 2 of this Agreement.
Section 10 . Conveyance of Building on or After the Termination
Date.
(a) If, on the Termination Date, the Commission Bonds have been
paid in full and the College is the lessee under the Lease, fee simple
title to the Site shall revert to the College.
(b) If on the Termination Date, the College is not the lessee
under the Lease, at the option of the City upon written notice
delivered to the Commission, fee simple title to the Site will be
conveyed by the Commission to the City. In such event, the Public
Building shall be used for such purposes as the City shall determine,
best promote and enhance the purposes and objectives set forth in
Section 2 hereof.
(c) If the City chooses not to exercise the option provided
for in subsection (b) of this Section, the Commission may (i) retain
fee simple title to the Site and (A) use the Public Building for the
lawful purposes of the Commission or (B) lease the Public Building as
provided in the PBC Act or (ii) convey fee simple title to the Site as
it shall -determine; provided, however, to ensure that the use of the
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Public Building is consistent with and in furtherance of the various
purposes and objectives set forth in Section 2 hereof, the Commission
shall obtain the prior written consent of the City prior to taking any
action provided for in this
subsection (c) .
THE CITY OF ELGIN, ILLINOIS
Byd -tI
ayor
Cy Cler c
COMMUNITY COLLEGE DISTRICT NO. 509
ELGIN COMMUNITY COLLEGE
By
President, Board of Trustees
Secretary
PUBLIC BUILDING COMMISSION OF KANE
COUNTY, KANE COUNTY, ILLINOIS
By
Chairman
Secretary