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Home My WebLink About96-280 Resolution No . 96-280 RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT WITH AMERITECH MOBILE COMMUNICATIONS, INC. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Kevin Kelly, Mayor, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute an agreement on behalf of the City of Elgin with Ameritech Mobile Communications, Inc. , for job training and economic development, a copy of which is attached hereto and made a part hereof by reference. s/ Kevin Kelly Kevin Kelly, Mayor Presented: October 9 , 1996 Adopted: October 9 , 1996 Vote: Yeas 6 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk AGREEMENT THIS AGREEMENT is hereby made and entered into this ) /.1"c\ day of F.--c' t- , 1996, by and between the City of Elgin, Illinois, a municipal corporation (hereinafter referred to as "City" ) , and Ameritech Mobile Communications, Inc. , a Delaware corporation (hereinafter referred to as "Ameritech" ) . WHEREAS, City has determined it to be in its best interests to provide for the promotion of job opportunities for its citizens and to provide for the overall economic development of the City of Elgin; and WHEREAS, Ameritech has determined it to be in its best interests to develop a call center within the corporate limits of the City of Elgin. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows : 1 . City shall pay Ameritech the sum of $600, 000 as a training grant, which shall be paid as follows : (a) $400,000 on or before March 1, 1997 (b) $200,000 on or before December 30, 1997; provided, however that the payment of said funds shall be conditional upon the terms provided for herein, including but not limited to, appropriation of such funds by City. 2 . Ameritech shall enter into a 10-year lease agreement (which lease shall include a five-year termination option) to lease the property commonly known as 777 Big Timber Road, Elgin, Illinois, which lease shall commence on or about October 15, 1996, for use as a call center (hereinafter referred to as "facility" ) . Ameritech plans for an investment of $6 . 8 million to ready the building for occupancy and an initial relocation of approximately 200 existing employees on or about March 1, 1997 . 3 . During the twelve months preceding March 1, 1998, Ameritech shall hire 400 individuals as new employees, who shall be employed by Ameritech for work at the facility. Ameritech shall provide reasonable documentation of such hiring on or before March 30, 1998 . 4 . During the twelve months preceding March 1, 1998, Ameritech shall hire not less than 100 individuals as new employees whose principal place of residence shall be Elgin, Illinois at the time of hiring, who shall be employed by Ameritech for work at the facility. Ameritech shall provide reasonable documentation of such hiring on or before March 30, 1998 . s 5 . In the event Ameritech hires less than the 100 new employees provided for in paragraph 4 herein on or before March 1, 1998, Ameritech shall refund $1,000 to City on or before April 1, 1998 for each such new employee which is less than 100 such new employees as City' s sole remedy; for example, the hiring of 90 such new employees shall result in a refund to City in the amount of $10,000, and so forth. 6 . In the event Ameritech fails to enter into the lease agreement for the facility provided for in paragraph 2 herein on or before December 31, 1996, this agreement shall be void and of no further force and effect. 7 . This agreement shall not be so construed so as to create a joint venture, partnership, employment or other agency relationship between the parties hereto. 8 . The terms of this agreement shall be severable. In the event any of the terms or provisions of this agreement are deemed to be void or otherwise unenforceable for any reason, the remainder of this agreement shall remain in full force and effect. 9 . This agreement shall be subject to and governed by the laws of the State of Illinois . In the event that either party hereto attempts to enforce any of the terms or provisions of this agreement, or any rights arising therefrom, venue for such enforcement actions shall be in the Circuit Court of Kane County, Illinois . 10 . This agreement represents the entire agreement between the parties hereto. No other agreements, either oral or written, exist between the parties hereto. No modifications or amendments to this agreement shall be made or effective without the signed, written agreement of the parties hereto. CITY OF E IN By Kevin Kelly, May Attet: k°4/L41-4- Lc � City Clerk AMERITECH MOBILE CO S, I By is RESIDE APPROVED AS TO LEGAL.FORM k. 2 ATTORNEY-AM I r 111 °F - / / 1 •� AgendältemNo . _ \„,/,„ PPP" " 'p'iJ[fl f LB t October 3, 1996 TO: Mayor and Members of the City Council FROM: Richard B. Helwig, City Manager SUBJECT: Ameritech Training Grant Agreement PURPOSE The purpose of this memorandum is to present to the Mayor and members of the City Council, a proposed Training Grant Agree- ment with Ameritech. BACKGROUND The Mayor and City manager met with representatives from Ameritech to discuss the location of a call center facility within the City of Elgin. Ameritech has identified the abandoned Safety-Kleen building on Big Timber Road as the site for a call center location. This call center will be one of four major call centers serving many of the more than 2 . 2 million cellular customers and 1 million paging customers in 24 metropolitan markets, including five of the top 25 markets in the U. S . Ameritech will enter into a ten-year lease for the entire 127 ,000 sq. ft. building. Ameritech will invest $6 . 8 million to ready the building for occupancy in March, 1997 . The project cost (exclusive of payroll) is estimated at $30 million. After the initial relocation of approximately 200 existing employees, Ameritech will create an additional 400 full-time jobs during the first 12 months of operation. The City of Elgin is proposing to provide Ameritech Cellular a training grant in the amount of $600,000 to facilitate the investment in the Safety-Kleen building on Big Timber Road, as well as the creation of 400 new full-time positions ( 100 positions to be filled by residents of Elgin) within the City of Elgin. The first installment of the grant in the amount of $400 ,000 would be payable on or before March 1, 1997 . The final installment of the grant in the amount of $200, 000 would be payable on or about December 30 , 1997 or such exten- sion that the parties deem acceptable and the creation of 400 new full-time positions ( 100 positions filled by residents of Elgin) . To the extent Ameritech Cellular is unable to fill at least 100 positions with residents of Elgin, the training grant would be reduced by $1,000 per position less than the 100 position minimum. Ameritech Training Grant Agreement October 3, 1996 Page 2 COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None . FINANCIAL IMPACT Expenditures related to this project will be charged to the Fox Bluff Corporate Center Fund, account number 270-0000-791 . 84-01 . LEGAL IMPACT None. ALTERNATIVES Do not provide the suggested incentive package. RECOMMENDATION Authorize the Mayor to enter into a Training Grant Agreement with Ameritech. Respectfully submitted, /?61-4r•-•174)rz77 -€41 Raymond H. Moller Director of Business Services and Properties Richard B. Helwig City Manager amp