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HomeMy WebLinkAbout87-0601 ECC Intergovernmental 1-4 - OL O1 "Le2/tA, 4/1 - 0-ge f ,1&(.1g4C_ Xer( ca„.„( Ace-kyie OP c f V "v` 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. ) 2 "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 3 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 4 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 5 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 6 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