HomeMy WebLinkAbout98-128 (2) `' �=�j. � City of Elgin Agenda Item No.
gr
May 8, 1998
TO: Mayor and Members of the City Council
FROM: Joyce A. Parker, City Manager
SUBJECT: Agreement with R.R. Donnelley and Owners of the
Highland Lofts
PURPOSE
The purpose of this memorandum is to submit for City Council
consideration a proposed agreement between the City, R.R.
Donnelley and Sons Company and the owners of Highland Lofts
regarding R.R. Donnelley establishing its Digital Colorgraph-
ics facility at the Highland Lofts building.
BACKGROUND
On December 17, 1997 the City Council passed a resolution
outlining the city' s intent to provide assistance regarding
R.R. Donnelley relocating its Digital Colorgraphics facility
in the Highland Lofts building at 168 E. Highland Avenue . A
copy of Resolution No. 97-315 is attached. The resolution
references in the final paragraph thereof that the parties
will enter into a formal development agreement concerning the
establishment of the Digital Colorgraphics Division at the
Highland Lofts building.
The purpose of the agreement is to formalize the terms of the
parties ' previous negotiations and the intentions of the City
Council as set forth in the City Council resolution. City
staff has been negotiating with representatives of R.R.
Donnelley for the past two months regarding the specific terms
of the agreement . The majority of these discussions focused
on what obligations R.R. Donnelley would have to monitor the
security system for the Spring Street parking deck. The City
Council resolution provides that the security system is to be
monitored by R.R. Donnelley and Sons Company security person-
nel . R.R. Donnelley expressed its concerns over liability for
monitoring the entire garage and the cost of 24 hour monitor-
ing.
A proposed compromise agreement has been reached with R.R.
Donnelley, a copy of which is attached. The agreement would
provide R.R. Donnelley with 70 designated parking spaces for
use from 11 : 00 p.m. on Sundays through 11 : 00 p.m. on Fridays
in lieu of the previously contemplated 130 parking spaces for
Agreement with R.R. Donnelley and Owners of the Highland Lofts
May 8, 1998
Page 2
use 24 hours a day seven days a week. R.R. Donnelley would
have no specific monitoring obligations under the agreement .
The agreement may be summarized as follows :
1 . R.R. Donnelley is obligated to relocate and maintain its
Digital Colorgraphics Division to the Highland Lofts
building which is anticipated to initially involve the
lease of not less than 40, 000 square feet of such facili-
ty and employ approximately 150 full time employees at
this location.
2 . The city will furnish a security system for the Spring
Street parking facility including monitoring equipment to
be installed at the Highland Lofts building as set forth
in the contract previously entered into by the city with
Walker Parking Consultants/Engineers dated February 11,
1998 .
3 . No monitoring obligations for the Spring Street parking
facility security system are provided for in the agree-
ment .
4 . The city will provide 70 contiguous under cover parking
spaces in the Spring Street parking facility designated
for the use of R.R. Donnelley employees from 11 : 00 p.m.
on Sundays through 11 : 00 p.m. on Fridays .
5 . The city may conduct surveys regarding R.R. Donnelley' s
use of the 70 designated parking spaces . In the event
the results of at least three consecutive surveys of R.R.
Donnelley' s use of the designated parking spaces indicate
that not all of the designated spaces are being utilized,
after notice to R.R. Donnelley, the number of designated
parking spaces may be reduced accordingly by the city or
reassigned to reflect limited times for designated use by
R.R. Donnelley employees . In the event of future in-
creases in R.R. Donnelley' s staffing levels R.R. Donnel-
ley may make a request to the city for an increase of
designated parking spaces in addition to the 70 designat-
ed parking spaces provided for in the agreement . The
decision to designate any spaces in addition to the 70
spaces provided for in the agreement is at the sole and
exclusive discretion of the city taking into account the
parking needs of other downtown businesses and the
general public .
6 . The city' s designation of the 70 parking spaces for R.R.
Donnelley is in lieu of the city' s obligation to provide
for the use of 25 of the 50 parking spaces at the Spring
Street parking facility as required in the Facade Im-
provement Agreement between the Kresmerys and the City.
Agreement with R.R. Donnelley and Owners of the Highland Lofts
May 8 , 1998
Page 3
7 . The city will authorize a 15 minute passenger loading
zone on Highland Avenue, three handicapped parking spaces
on Division Street and a loading zone on Division Street .
8 . In the event R.R. Donnelley fails to relocate its Digital
Colorgraphics Division to the Highland Lofts building and
maintain such operations at the Highland Lofts building
during the term of the agreement the city, after notice
to R.R. Donnelley, may terminate the agreement and remove
the city' s equipment installed at the Highland Lofts
building and terminate the designation of reserved
parking spaces at the Spring Street parking facility and
the agreement shall have no further force or effect .
9 . The term of the agreement is for five years commencing
upon execution of the agreement .
At the Committee of the Whole Meeting of February 25, 1998,
the City Council tentatively decided on an allocation of
parking spaces at the Spring Street parking deck. This
allocation of parking spaces provided 130 designated spaces
for R.R. Donnelley, 50 designated spaces for Home Federal, 101
ten hour spaces and 65 two hour spaces . Given the reduction
of R.R. Donnelley designated spaces from 130 to 70 it was also
m Federal designated
thought appropriate to reduce the Home g
parking spaces accordingly. Exhibit B to the attached agree-
a
P g P
ment now provides for 70 designated parking spaces for R.R.
Donnelley, 30 designated parking spaces for Home Federal, 181
ten hour spaces and 65 two hour spaces . Home Federal has been
informed of the proposed reallocation and has stated a
willingness to work with the city.
R.R. Donnelley has advised the city that it intends to monitor
the security system from the Highland Lofts monitoring station
for approximately seven hours a day. The proposed agreement
allows the city the option of installing the recording equip-
ment for the security system at an appropriate city facility.
The city may wish to install an additional monitoring station
at the police department or other appropriate city facility to
allow for additional monitoring and tape recording of the
security system.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
R.R. Donnelley and Sons, Home Federal and Kurt Kresmery.
FINANCIAL IMPACT
There is no financial impact for the security system identi-
fied in the agreement as the city has already entered into the
contract for the security system in the February 11, 1998
contract with Walker Parking Consultants/Engineers, Inc . The
cost of the signage for the designated parking is approximate-
ly $3 , 000 . In the event the city elects to proceed with the
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Agreement with R.R. Donnelley and Owners of the Highland Lofts
May 8, 1998
Page 4
installation of an additional monitoring station at the police
department or other appropriate city facility the estimated
cost of the additional monitoring station is $25, 000 . Funds
for the signage for the designated parking are available from
account number 010-3321-753 . 19-08 . Funds for an additional
monitoring station are available from account
number 270-0000-791 . 93-80, project number 079502 (Spring
Street Parking Deck Improvements) .
LEGAL IMPACT
k None .
ALTERNATIVES
1 . To enter into the proposed agreement with R.R. Donnelley
and the owners of the Highland Lofts .
2 . Do not enter into the agreement . In the event the city
were not to enter into an agreement the city would need
to proceed to remove the partially installed monitoring
station at the Highland Lofts building and relocate such
monitoring station at an appropriate city facility.
RECOMMENDATION
Approval of the proposed agreement between the City, R.R.
Donnelley and the owners of the Highland Lofts . It is further
recommended that staff be authorized to negotiate and bring to
the City Council a change order to the contract with Walker
Parking Consultants/Engineers, Inc . to provide for an addi
tional monitoring station to be located at the police depart-
ment or other appropriate city facility.
Respectfully submitted,
yce A. Parker
City Manager
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Attachment
II
April 17, 1998
MEMORANDUM
TO: Joyce A. Parker, City Manager
FROM: William A. Cogley, Assistant Corporation Counsel
SUBJECT: Status Report on Negotiations with R.R. Donnelley
The purpose of this memorandum is to summarize recent
developments in the ongoing negotiations with R.R. Donnelley
concerning R. R. Donnelley' s plans to relocate its Digital Color
Graphics Division to the Highland Lofts Building.
On December 17, 1998, the City Council passed a resolution
outlining the city' s intent regarding R.R. Donnelley' s
relocating its Digital Color Graphics facility in the Highland
Lofts building. A copy of Resolution No. 97-315 is attached.
The resolution references in the final paragraph thereof that
the parties will enter into a formal Development Agreement
concerning the establishment of the Digital Color Graphics
Division in the Highland Lofts Building. In the first week of
March a draft Development Agreement was forwarded to
R.R. Donnelley. A copy of the draft Development Agreement is
also attached. The Development Agreement attempted to
formalize the terms of the parties ' previous negotiations and
the intentions of the City Council as set forth in the City
Council resolution. The principal obligations of the city in
the Development Agreement are to provide a security system for
the Spring Street parking facility and to design reserved
parking spaces in the facility for use of R.R. Donnelley' s
employees . The principal obligations of R.R. Donnelley in the
Development Agreement are to provide monitoring for the
security system and to commit to relocating its Digital Color
Graphics Division at the Highland Lofts Building including
leasing not less than 40,000 square feet at such location and
employing at all times not less than any specified number of
full time employees at such location.
On March 23, 1998 R.R. Donnelley provided staff with its
comments regarding the draft Development Agreement. Attached
is a copy of the development agreement with R.R. Donnelley' s
handwritten proposed revisions along with my March 24, 1998
memorandum to Bob Malm summarizing R.R. Donnelley's proposed
revisions to the Development Agreement. The most significant
proposed revisions relate to R.R. Donnelley' s obligation to
monitor the security system and to commit to providing a
specified number of new full time employees at the Highland
Lofts location. R.R. Donnelley proposed to limit its
obligations to monitor and provide security only to its own
Joyce A. Parker -2- April 17, 1998
employees and to those areas being utilized by R.R. Donnelley.
R.R. Donnelley also proposed the deletion of any obligation of
R.R. Donnelley to lease a specified number of square feet at
the Highland Lofts Building and maintain the promise of 150
full time employees at such location.
On April 1, 1998 we met with representatives of R.R. Donnelley
including Russ Greg, Chris Barney and their attorney Brian
Sedlak. At this meeting we were able to resolve a number of
minor issues relating to the Development Agreement. The
discussions thereafter focused upon the issue of
R.R. Donnelley' s obligation to monitor the security system and
to specify its obligations regarding leasing of the Highland
Lofts property and minimum employment levels . We appear to
have been able to resolve R.R. Donnelley' s concern over
liability of monitoring through the arrangement of the city
entering into a contract with the security firm which
R.R. Donnelley was to have utilized for such activity with R.R.
Donnelley reimbursing the city for the cost of this service.
We pointed out to the R.R. Donnelley representatives the City
Council ' s resolution which specifically provides that the
security system is " . . . to be monitored by R.R. Donnelley and
Sons Company security personnel . " R.R. Donnelley
representatives stated that it had been their understanding
that they would only have the responsibility to monitor the
system for their employees for limited hours each day. R.R.
Donnelley representatives indicated that they expected to
provide some monitoring of the system for approximately eight
hours a day. R.R. Donnelley made a proposal at this meeting
that it would reimburse the city for 1/3 the cost of monitoring
the Spring Street parking facility up to an amount not to
exceed $50, 000 per year. The meeting concluded with city staff
indicating we would look into the costs associated with
monitoring the security system and the parties agreeing to
reconvene at a second meeting on Thursday, April 9, 1998 .
The second meeting was held with R.R. Donnelley representatives
on April 9, 1998. At this meeting Bob Malm reported the
results of his investigations concerning the costs of
monitoring the security system. The cost to monitor the
security system 24 hours a day, seven days a week from a remote
security company office location are approximately $100,000 per
year. The cost for a security firm to monitor the security
system 24 hours a day seven days a week at the Highland Lofts
location are approximately $150,000 . City staff reiterated its
position that R.R. Donnelley should provide for 24 hour
monitoring of the system. Staff also suggested that in the
event R.R. Donnelley were to provide less than 24 hour
monitoring some consideration should be provided by
R.R. Donnelley for this concession in the form of concessions
concerning the designated parking. Russ Greg stated at this
meeting that R.R. Donnelley could consider monitoring the
security system each day from 5 :00 p.m. to 5 : 00 a.m. The
parties at the meeting agreed to caucus separately to discuss
Joyce A. Parker -3- April 17, 1998
this issue and to thereafter reconvene. During the caucus
representatives of R.R. Donnelley came to Bob Malm' s office and
announced that Russ Greg and Chris Barney had walked out of the
meeting. We inquired whether they wished to schedule a further
meeting at that time and they responded that they did not.
The following morning of Friday April 10, 1998 I called
R.R. Donnelley attorney Brian Sedlak. I advised Mr. Sedlak
that although the parties apparently had a misunderstanding as
to the extent of R.R. Donnelley's obligation to monitor the
security system for the Spring Street parking facility I
informed him that the city very much wanted to complete a fair
and appropriate Development Agreement with R.R. Donnelley. I
asked Mr. Sedlak to work with me as intermediaries between the
parties so that we could reach an agreement. I communicated to
Mr. Sedlak two new proposals concerning the monitoring of the
security system. The first proposal was that R.R. Donnelley
would monitor the security system 12 hours a day from 5 : 00 p.m.
to 5 : 00 a.m. R.R. Donnelley would also agree that designated
parking would not be in effect on the weekends from
approximately 6 : 00 p.m. on Friday through 6 : 00 a.m. on Monday.
The second proposal was that R.R. Donnelley would have no
obligation for monitoring of the security system and in
exchange therefor R.R. Donnelley would have no designated
parking and would utilize the Spring Street parking facility on
a first come first served basis. Mr. Sedlak indicated that he
would discuss these two proposals with Russ Greg and call me on
Monday April 13 .
I spoke to Mr. Sedlak on Monday April 13 . Mr. Sedlak indicated
he had discussed the two proposals with Russ Greg and that
R.R. Donnelley would respond by Wednesday April 15 .
On Thursday, April 16, I received information from Ray Moller
and yourself that Russ Gregg had been discussing issues
relating to the development agreement with representatives at
the Elgin Chamber of Commerce. After you spoke with Jim
McConoughey I also called him to discuss this matter. I
advised Mr. McConoughey that the city very much wanted to reach
agreement with R.R. Donnelley and was anxious to further
discuss the monitoring issue and other remaining issues . Mr.
McConoughey advised me that he had discussed this matter with
Russ Gregg. He believed that R.R. Donnelley was willing to
monitor the security system from approximately 7 : 00 p.m. to
2 : 00 a.m. and in exchange therefor would relocate a number of
the designated spaces and limit the times for the designation
of such spaces . Mr. McConoughey advised me that R.R. Donnelley
would consider moving 35 of the 110 designated parking spaces
from the undercover location and would limit the designation of
spaces from 7 : 00 a.m. to 7 : 00 p.m. from Mondays through
Saturdays . I advised Mr. McConoughey that this would represent
some progress on these issues and looked forward to a proposal
from R.R. Donnelley.
Joyce A. Parker -4- April 17 , 1998
Later on Thursday, April 16 I received a call from R.R.
Donnelley Attorney Brian Sedlak. Mr. Sedlak provided the
following proposal from R.R. Donnelley:
1 . R. R. Donnelley would have no responsibility for monitoring
the security system for the Spring Street parking
facility. The city would complete the installation of
monitors in the lobby of the Highland Lofts building for
the use by R. R. Donnelley as it sees fit. A second
monitoring station at a city location would be provided at
city expense which the city could monitor as it determines
either actively or by tape recording.
2 . 110 parking spaces would be reserved through permit
parking for R.R. Donnelley at no cost to R. R. Donnelley.
70 of such spaces would be reserved Monday through
Saturday from 7 : 00 a.m. to 7 : 00 p.m. 40 of the spaces
would be reserved 24 hours a day, seven days a week. In
addition to the 110 designated spaces R.R. Donnelley is
requesting five additional spaces be marked for R. R.
Donnelley customer parking.
3 . R.R. Donnelley would commit to the employment of 60-110
full time employees at the Highland Lofts location, the
number to be seasonally adjusted. In the event employment
levels drop below 60 full time employees , the city could
remove the monitoring system at the Highland Lofts
building but would not be able to terminate all designated
parking. Parking could be reduced only pursuant to the
formula set forth in the development agreement which
provides for a pro rata reduction in designated parking
spaces in the event that R.R. Donnelley is not using all
of the 110 designated parking spaces .
As discussed with you in our office conference last evening the
most recent proposal of R.R. Donnelley is disappointing given
the statements of Russ Gregg at our April 9 meeting that R.R.
Donnelley would consider monitoring the security system from
5 : 00 p.m. to 5 : 00 a.m. and given the statements of Jim
McConoughey based upon his conversations with Russ Gregg. I
attempted to call Jim McConoughey at the Chamber of Commerce to
discuss R. R. Donnelley' s most recent proposal but have as of
yet been unable to speak with him.
After our office conference this afternoon I spoke to R.R.
Donnelley attorney Brian Sedlak and communicated to him the
city' s most recent counter proposal regarding the monitoring
and designated parking issues . Attached is a copy of my April
17 correspondence to Mr. Sedlak summarizing this counter
proposal . The counter proposal essentially adopts R. R.
Donnelley' s most recent offer with respect to the designated
parking with the addition that the 40 spaces to be reserved 24
hours a day seven days a week be relocated from the undercover
areas . The counter proposal further requires R.R. Donnelley to
Joyce A. Parker -5- April 17 , 1998
monitor the security system daily from 5 : 00 p.m. to 5 : 00 a .m.
Mr. Sedlak indicated he would attempt to respond to this most
recent proposal early next week.
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Attachments
cc : Erwin W. Jentsch
r: III
Resolution No. 97-315
RESOLUTION
OF THE CITY' S INTENT REGARDING
R. R. DONNELLEY & SONS COMPANY ESTABLISHMENT OF
DIGITAL COLOR GRAPHICS FACILITY IN THE
HIGHLAND LOFTS BUILDING
WHEREAS, the City of Elgin recognizes the importance that
R. R. Donnelley & Sons Company has had in the Elgin community
as demonstrated by its long term investment in Elgin; and
WHEREAS, the City of Elgin supports R. R. Donnelley & Sons •
Company' s plans to relocate their Digital Color Graphics
facility to the Highland Lofts Building in Elgin' s Center City;
and
WHEREAS, in order to facilitate the establishment of the
Digital Color Graphics facility in the Highland Lofts Building,
the Elgin City Council declares its intent to provide support
for such development as described herein.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF ELGIN, ILLINOIS, that the City Council hereby declares
its intent to provide the following development assistance to
facilitate the establishment of the R. R. Donnelley & Sons
Company Digital Color Graphics facility in the Highland Lofts
Building:
One hundred thirty designated parking spots in the Spring
Street parking garage for the exclusive use of the Digital
Color Graphics employees, 25 of which were previously
designated to Kensington Partners . The city will do its best
to ensure that these spaces are in as close proximity to the
Highland Lofts Building as possible.
Supply and maintain close circuit audio television cameras
at appropriate locations within and outside the Spring Street
parking garage to be monitored by R. R. Donnelley & Sons
Company security personnel .
Supply telephone service with direct dial 911 access to
the Elgin Police Department as well as other voice systems as
necessary for employees to access security personnel .
Provide safety orientation to the Donnelley employees as
well as a visible police presence during the facility' s
transition to Center City.
Approve the needed permits to support the Highland Lofts
build-out, including truck dock access to the building.
BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ELGIN, ILLINOIS, that this resolution is intended only as a
declaration of the current general intentions of the City
Council regarding the above described matters and is not
intended nor shall this resolution be relied upon or construed
so as to create any legal obligations for the City of Elgin it
being the express intention of the City Council not to create
any legal obligations to provide any such assistance unless and
until the City of Elgin enters into a formal 'development
agreement concerning the establishment of the Digital Color
Graphics facility in the Highland Lofts Building.
s/ Kevin Kelly
Kevin Kelly, Mayor
Presented: December 17 , 1997
Adopted: Decenber 17 , 1997
Vote : Yeas 7 Nays 0
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
DRAFT 3/4/98
RAGREE/DONNELLE.DA
DEVELOPMENT AGREEMENT
This agreement made and entered into this day
of , 1998, by and between the City OF ELGIN, an
Illinois municipal corporation, (hereinafter referred to as the
"City" ) , KURT KRESMERY and MARC KRESMERY (hereinafter referred
to as the "Kresmerys" ) and R.R. DONNELLEY, INC. , a
corporation, (hereinafter referred to as "R.R. Donnelley" ) .
WITNESSETH
WHEREAS, the Kresmerys are the owners of the property
commonly known as 168 E. Highland Avenue, Elgin, Illinois
(hereinafter referred to as the "Highland Lofts" ) ; and
WHEREAS, R.R. Donnelley after consultations and
negotiations with the City concerning certain development
assistance, has determined to proceed with the relocation of
its digital color graphics facility to the Highland Lofts ; and
WHEREAS, in order to provide for the continued
development of the City including the development of the center
City area the City has agreed to provide certain development
assistance in the form of a security system and reserved
parking for R.R. Donnelley; and
WHEREAS, the City providing development assistance to
R.R. Donnelley to facilitate the relocation of its digital
color graphics facility to the Highland Lofts building will
result in new and additional employment opportunities in the
Elgin center City area and spur additional economic development
in the center City; and
WHEREAS, the City of Elgin is a home rule unit
authorized to exercise any power and perform any function
relating to its government and affairs; and
WHEREAS, development initiatives resulting in
significant increases in employment opportunities ' within the
Elgin center City area are matters within the government and
affairs of the City of Elgin.
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 . That the foregoing recitals are incorporated in
this agreement in their entirety.
2 . That to facilitate R.R. Donnelley' s relocation of
its digital color graphics facility to the Highland Lofts
building the City agrees to furnish at its sole cost during the
term of this agreement a CCTV security system and two-way audio
system for the City of Elgin Spring Street parking facility to
include monitoring equipment to be installed at the Highland
Lofts building all as described in Exhibit A attached hereto
(hereinafter referred to as the "security system" ) . The City
shall provide for the installation of the security system on or
before April 15, 1998, and shall during the term of this
agreement maintain at its cost said security system in good
working order.
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3 . That the City shall provide a safety orientation
to R.R. Donnelley employees during the transition of the R.R.
Donnelley facility to the Highland Lofts building.
4 . That the Kresmerys and R.R. Donnelley agree that
they shall provide space at the Highland Lofts building for the
installation of those aspects of the security system, including
but not limited to monitoring equipment, to be installed at the
Highland Lofts building. R.R. Donnelley shall build out a
console to house the monitoring equipment to be installed at
the Highland Lofts building. In the event the console or other
build outs at the Highland Lofts building are not complete to
allow the City to install the security system before April 15,
1998 , it is understood and agreed that R.R. Donnelley shall be
responsible for the costs incurred as a result of any such
delays including the cost of any change orders . It is further
expressly agreed and understood that all equipment of the
security system to be installed either at the Spring Street
parking facility or the Highland Lofts building shall at all
times be and remain the sole and exclusive property of Ape City
of Elgin and may be removed by the City of Elgin upon the
expiration or termination of this agreement.
5 . That R.R. Donnelley shall provide for 24 hour
monitoring of the security system. R.R. Donnelley understands
and agrees that it shall at its own cost and expense provide
all personnel necessary to monitor the security system and that
R.R. Donnelley is solely responsible for the hiring, training
and supervision of all persons monitoring the security system.
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R.R. Donnelley agrees that it shall use reasonable care in
monitoring the security system and that its personnel shall
immediately notify the City of Elgin Police Department in the
event any criminal or suspicious activity is observed or
indicated on the security system. R.R. Donnelley agrees to the
fullest extent permitted by law to indemnify and hold harmless
the City, its officers, employees and agents from and against
and all claims for damages, causes of actions, suits or any
other liability resulting from or arising out of R.R.
Donnelley' s , its employees or agents negligent monitoring of
the security system. In the event R.R. Donnelley fails to
monitor the security system the City may terminate this
agreement and remove all security equipment installed at the
Highland Lofts building and terminate the designation of the
reserved parking spaces at the Spring Street parking facility.
6 . That during the term of this agreement the City
shall provide one hundred thirty ( 130) contiguous under cover
parking spaces in the Spring Street parking facility designated
for the use of R.R. Donnelley employees . The location of said
130 parking spaces in the Spring Street parking facility are
identified in Exhibit B attached hereto. The City shall erect
signs in the area of said designated parking spaces identifying
the parking spaces as being reserved for the use of R.R.
Donnelley employees .
7 . That R.R. Donnelley shall at its cost issue its
employees stickers or placards identifying the cars of R.R.
Donnelley employees . Such stickers or placards shall be
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displayed on the driver' s side of the rear window of vehicles .
R.R. Donnelley agrees to use its best efforts to require its
employees to park within the one hundred thirty ( 130 )
designated spaces . The City shall enforce such reserved
parking through the City' s normal parking ' enforcement
operations in the Spring Street parking facility.
8 . That the Kresmerys understand and agree that the
City' s designation of said one hundred thirty ( 130) parking
spaces for R.R. Donnelley employees as herein provided shall be
in lieu of the City' s obligation to provide the use of
twenty-five (25) of the fifty ( 50) parking spaces at the Spring
Street parking deck as set forth in Paragraph 3 of that certain
Facade Improvement Agreement between the Kresmerys and the City
of Elgin dated August 28, 1996 .
9 . That the parties further understand and agree
that during the term of this agreement the City may conduct
surveys regarding R.R. Donnelley' s use of the 130 designated
parking spaces . In the event a survey of R.R. Donnelley' s use
of the designated parking spaces indicates that not all of the
designated spaces are being utilized a number of designated
spaces may be reduced accordingly by the City or re-signed to
reflect limited times for designated use by R.R. Donnelley
employees . In reducing the number of designated spaces the
Donnelley' s future staffing Cityshall consider R.R. y levels .
If staffing levels or driving patterns require additional
designated spaces above the reduced level, the City shall
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increase the number of designated spaces, but in no event to
exceed 130 spaces .
10 . That the City shall provide ongoing maintenance
of the Spring Street parking facility during the term of this
agreement.
11 . That during the term of this agreement R.R.
Donnelley shall at all times lease not less than 40,000 square
feet of the Highland Lofts building and maintain its digital
color graphics facility and employ at all times not less than
150 full time employees at such location. R.R. Donnelley shall
provide the City, if requested, payroll information to verify
employment levels .
12 . That the parties understand and agree that the
undertakings of the City as set forth herein are expressly
contingent upon R.R. Donnelley' s locating its digital color
graphics facility at the Highland Lofts building as described
herein which will result in a minimum of 150 new full time jobs
at the Highland Lofts building. In the event R.R. Donnelley
fails to relocate its digital color graphics facility to the
Highland Lofts building as described herein and maintain such
operations and employment levels at the Highland Lofts building
during the term of this agreement the parties understand and
agree that the City may immediately remove all security
equipment installed at the Highland Lofts building and
terminate the designation of the reserve parking spaces at the
Spring Street parking facility.
-6-
13 . That this agreement shall not be deemed or
construed to create an employment, joint venture, partnership
or other agency relationship between the parties hereto.
14 . This agreement represents the entire agreement
between the parties hereto and any oral representations,
promises, terms or agreements not herein expressed shall be of
no force and effect.
15 . That this agreement may not be assigned without
the express written consent of all parties hereto.
16 . That this agreement is subject to and shall be
governed by the laws of the State of Illinois .
17 . That the term of this agreement shall be for five
(5) years commencing upon the execution of this agreement.
IN WITNESS WHEREOF, the parties have entered into and
executed this Agreement on the date and year first written
above .
City OF ELGIN, a municipal R.R. DONNELLEY, INC. , a
corporation corporation
By By
Kevin Kelly, Mayor Name
Title
Attest: Attest
Dolonna Mecum, City Clerk Name
Title
Kurt Kresmery
Marc Kresmery
-7-
03/23/98 MON 13:35 FAX 931 5409 ELGO D1G11AL LULuxururn ti , ,
RR DONNELLEY & SONS COMPANY Agin Digital Colorgraphics Center
645 Tollgate Road
Merchandise Media Elgin,Illinois 60123-9349
Telephone(847)931-0296
Fax:(847)931-5409
A •
f‘ iti , c_DD/A55-Lei
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.;
1vo _sa-
To: � ,
Company: U;s . , .z From: Chris Barney,Di ision Controller Division 063
Sub1ject: r--e_ .e.n
Date: 3123/s Time: 1 'WC r, Ai '
Number of pages including cover sheet: / /
Additional information:
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please call,847/931-6303 with any auestTons
regarding this fax
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03/23/98 MON 13_36 FAX 931 5409 ELGIN DIGITAL COLORGRAPH 4002
•
DRAFT 3/4/98 PAY 14--G . Pckrt -+ ht
RAGREE/DONNELLE.DA
AGREEMENT
This agreement made and entered into this _ day
of 1998, by and between the City OF ELGIN, an
Illinois municipal corporation, (hereinafter referred to as the
"City" ) , KURT KRESMERY and MARC KRESMERY (hereinafter referred
and R.R. DONNELLE7
to as the "Kresmerys") , a 1 Sans
Cr , corporationq.(hereinafter referred to as "R.R. Donnelley" ) . co ,1
1 WITNESSETH
�t�aLJacQ., .
WHEREAS, the Kresmerys are the owners of the property
commonly known as 168 E. Highland Avenue, Elgin, Illinois
(hereinafter referred to as the "Highland Lofts") ; and
WHEREAS, R.R. Donnelley sf r cortsi.i-tatkonr
nr ra�•f a 4 ri Javn ia•Y
ee; has determined 'to proceed with the relocation of
p its ytigital olor traphics o the Highland Lofts; and
REAS, in order to provide for the continued
+•� development of the City including the development of the center
City area the City has agreed to provide certain development
• assistance in the form of a security system and reserved
parking for R.R. Donnelley; and
41111 WHEREAS, the City, providing development assistance to t
R.R. Donnelley to facilitate the relocation or its _•-igital
olor - aphics �-r to the Highland Lofts building -.. —"L---
result in new and additional employment opportunitie3 in the ^,it
DiViSio'\ Elgin center City area and spur additional economic development
in the center City; and
VIII
?31 -
hPR @9 '98 14:417
Sao 'd iva s3Noc t£:St (isA)86 ,oz- •xvw
03/23/98 HON 13:36 FAX. 931 5409 ELGIN DIGITAL COLORGRAPH 41003
•
WHEREAS, the City of Elgin is a home rule unit
authorized to exercise any power and perform any function
relating to its government and affairs; and
•
WHEREAS, development initiatives resulting in
significant increases in employment opportunities within the
Elgin center City area are matters within the government and
affairs of the City of Elgin.
-.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. That the foregoing recitals are incorporated in
this agreement in their entirety. Di'tg 5i TY
•
2. That to facilitat: R.R. Donnelley's relocation of
its digital for Ap aphics - to the Highland Lofts
Gar building the City agrees to furnish at its sole cost during the
•
term of this agreement a CCTV security system-and two-way audio
system for the City of Elgin Spring Street parking facility e-, `-
monitoring equipment to be installed at the Highland
Lofts building all as described in Exhibit A attached hereto 13,,,i.,et-
The City G.lj
(hereinafter referred to as the "security system' ) - 40,
shall provide for the installation of the security system on or
before p.p.z-i-3r 15, 1998, and shall during the • -rm of this
agreement maintain at its cost said securit system in good
Na
b rn
0)11
working order. S � 2 -2-
931 Sdr�' par,E.0
7.
mAR 09 '98 14:47
WI H:S( I I21d)86 AZ- '11VW
h00 'd
0.1/23/98 MON 13:37 FAX 931 5409 ELGIN DIGITAL COLORGRAPH Vj004
eillalPf° ItaittPC
3 . That the City^shall provide a safety orientation elle
to R.R. Donnelley employees during the transition of the R.R.
Donnelley facility to the Highland Lofts building.
4 . That the Kresmerys . . . agree that "
they shall provide space at the Highland Lofts building for the Spatz!) .
installation of those aspects of the security system, including
, but not limited to monito ing equipment, to be installed at the
Highland --)6ofte buildin -
-~the-#i . ies- n the event the console es- Sc-
at the Highland -Lofts building R at complete to
allow the City to install the security system before 15, °L
1998, it is understood and agreed that A.R. Donnelley, shall be
responsible for the costs incurred as a result of any such
reas,oUt
delays including the cost of any change order- . _ er kAlec5
expressly agreed and understood that all equipment of the S..c,lN deit
security system to be installed either at the Spring Street ��`��`�`
parking facility or the Highland Lofts building shall at all C,11
times be and remain the sole and exclusive property of the City
of Elgin =and may be removed by the City of Elgin upon the
T
0}cepk expiration or termination of this agreement. +RJR'$
5,ntefrktivri "`��
di� lnR3_nnnna> 1� i -ex-, ,,1 -
S1� -
44,..05 a - e� Sit
a d e,Lak4,�
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Q.Q. DanrjJ... and--,supexvxstiitiof--e-rl—persens._moai ri Lhe .Gecwz.i44 qc .t --„
Lam -3-
t WR 09 '98 14.46 9.31 `•ir19 FN15E.Cie
900 •d AVO S3NOP lE:Sl (Ibd)86 ,Oi- .11b1,1
03/23/98 MON 13:38 FAX 931 5409 ELGIN DIGITAL COLORGRAPH UU�
•
, n
•
0
I mmedl-at e ly -irY�tfie
13346§at--4-1:Ly, r rl
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e
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inn �f rha
•
r eeve d
6 . That during the term of this agreement the City 44/nnio\
shall provide one hundred -ttT Lam—{ )
contiguous under cover
Stile parking spaces in the Spring Street parking facility designated
test
for the use of B.A. Donnelley employees. e location of said
parking _tipaces in the Spring Street parking facility are 0.
--1�6
identified in Exhibit B attached hereto. The City shalt erect
VW'rjV
signs in the area of said designated parking spaces identifying
reserved for the use of R. R . AiLAIrj
the parking spaces as being
Donnelley employees .
7 . That R.R. Donnelley shall at its cost issue its
employees stickers or placards identifying the cars of R.R.
Donnelley employees. Such stickers or placards shall be
-4-
931 SuO9
11AR 09 '9e 14:4e
9uo •d s
MI o Zc:SI (I213)86 ,OZ- •idW
03/23/98 MON 13:38 FAX 931 5409 ELGi,`i GOLURGRAYA
displayed on the driver's side of the ear w n-ow of vehicles .
R.R. Donnelley agrees to use efforts to require its \
44-44.
employees to park within the one hundred / t?rtri.y- ( lsu) ( l/c
designated spaces . The City shall enforce such reserved
parking through the City' s normal parking enforcement
operations in the Spring Street parking facility.
8 . That the Kresmery5 understand and agree that the
City's designation of said one hundredi parking ( ,7
spaces for R.R. Donnelley employees as herein provided shall be
in lieu of the City's obligation to provide the use of
twenty-five (25) of the fifty (50) parking spaces at the Spring
Street parking deck as set forth in Paragraph 3 of that certain
Facade Improvement Agreement between the Kresmerys and the City
of Elgin dated August 28, 1996 .
9 . That the parties further understand and agree
that during the term of this agreement the City may conduct
surve Ys reg g ardin A.R. Donnelley's use of the - B•)designated `'�°
parting spaces. In the event • ;EE1
oaf—thy Av-.s-gaated PArX1,4 ees indicat that 'not all of th S�j
SG
designated•-spaces are being utilized a number of designated
11 spaces may be reduced accordingly by the City or re-signed to T t„
reflect limited times for designated use by R.R. Donnelley 51.
employees. In reducing the number of designated _spaces the
City shall consider R.R. Donnelley's future staffing levels .
If staffing levels or driving patterns require additional
designated spaces above the reduced level, the City shall
v� I,
tpyr/O&CZ
OVIIC11-5-
51-r.1 f.4o9 PACIE.CIE
1^AR 09 '98 14:48
LOU 'd AVG SHOP Z2:SI (IHA)86 ,OZ- 'MTh
03/23/98 MON 13:39 FAX 931 5409 ELGIN DIGITAL COLORGRAPH i1JUU7
•
. increase the number of designated spaces
004. - Ai- d S sole- cAsi'
10. That the City shall provi a ongoing maintenance
of the Spring Street parking facility during the term of this
agreement.
11. T at during th term of t is agreeme t R.R.
Donnell y. shall all times 1 ase not less than 40,000 square
feet of a Highl d Lofts bui ding and mai tain its d ital
color gra ice fact ity and empl at all tin\ not less han
150 full ti a employe at such to tion. R.R. onnelley sh 11
provide the ty, if r quested, pa oil informa on to vvri
employment ley ls. .
12. That the parties understand and agree that the
undertakings of the City as set forth herein are expressly p
contingent upon R.R. Donnelley's locating its O gital 0. or
45taphics ,foci 4.ty at the Highland Lofts building as described
herein A t rh tri 1 rGeiiJ f i n a..iiL�„l n.,,n, of 1 Sn G i , —
9;,,;57� In the event; R.R. Donnelley
D C C-
49114 fails to relocate its jofigital for Aaphics to the (..;4;S;c7-N
Highland Lofts building as described herein- and maintain such
07::N .
operations -errti'-amplolimes1 a"m1-s at the Highland Lofts building
during the term of this agreement the parties understand and
agree that the City may-ii remove all security
175--
equipment installed at the Highland Lofts building and
` terminate the designation of the reserve parking spaces at the
n a-
Spring Street parking facility.
ImaR C�9 '98 14:d4 931 T.,10.-1 P GE.O:'
800 'd AVG SHOP £F:Sl (18d)86 ,GZ- 'PW
03/23/98 MON 13:40 FAX 931 5409 ELGIN DIGITAL CULURGRAPH L, JUU,5
•
13. That this agreement shall not be deemed or
construed to create an employment, joint venture, partnership
or other agency relationship between the parties hereto.
14 . This agreement represents the entire agreement
between the parties: hereto and any oral representations ,
promises, terms or agreements not herein expressed shall be of
no force and effect.
That this agreement may not be aesigned without
the express written consent of all parties hereto.
16. That this agreement is subject to and shall be
governed by the laws of the -State of Illinois .
17 . That the term of this agreement shall be for five
(5) years commencing upon the execution of this agreement.
IN WITNESS WHEREOF, the parties have entered into and
executed this Agreement on the date and year first w •
1�
Sons C-"Ai0°`
above.
City OF ELGIN, a municipal R.R. DONNELLE - , a _6346,Jar4._
corporation corporation
By By •
Kevin Kelly, Mayor Name
Title
Attest: Attest
Dolonna Mecum, City Clerk Name •
Title
Kurt Xresmery
Marc Kresmery
-7-
r�AR 09 'qfi i4 4q ?S1 F.dr,9 NIGE.0;
600 •d AVG STOP (IHd)86 ,0t- •EVW
03/23/98 MON 13:40 FAX 931 5409 ELGIN DIGIIAL LULUxGkAkH yJUUJ
•
. 41111aPPSI
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•
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10"
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SPRING STREET PARKING RAMP
Preliminary Space Allocation
Diagram 1
10 Hour Parking(101) HC=Handicap (8)
R.R Donnelley&Sons(130) OF=Officials(2)
•
2 Hour Parking (65)
Home Federal(50)
EXHIBIT B
VIRR 09 '98 1a:49 97.,1 P;110E.C
010 'd AVG SHOP ££:S1 ((dd) 86 ,OZ- RbdW
03/23/98 M0N 13:41 FAX 931 5409 ELGIN DIGITAL GULURGR PH , iuiu
•
jnser toDevdopnientAgreemeft
Insert 2a
Notwithstanding the foregoing,R.R.Donnelley intends to purchase one camera for the security
system(the "RR, Donnelley Camera"). If R.R. Donnelley purchases the R.R.Donnelley
Camera,tine City shall install the R. Donnelley Camera at a location determined by R.R.
C Donnelley and pursuant to R.R. Donnelley's instructions. Such installation shall be at the City's
Z sole cost and expense. •
1
Jnsert2b
The City's installation and maintenance of the security system shall not unreasonably interfere
with R.R. Donnelley's business operations at the Highland Lofts Building.
Insert 31
R.R. Donnelley, at its sole cost,shall cause plans to be prepared for the console(the "Console")
for the Highland Lofts Building that will house the monitoring equipment for the security system
(the "Console Plans"). R.R.Donnelley shall submit the Console Plans to the City for its
, it approval,which shall not be unreasonably withheld or delayed. Unless the City objects to the
be* Console Plans within 10 days after delivery by RR.Donnelley,the City shall be deemed to have
01approved the Console Plans. After the City has approved Console Plans,R.R.Donnelley shall
construct the Console in accordance with the Console Plans. In addition,the City shall,upon
notice from R.R.Donnelley,provide and install at the City's sole cost an additional monitoring
system in R.R.Donnelley's premises in the Highland Lofts Building.
•
Insert 3b .
Any such removal of the security system shall not interfere with the business operations of R.R.
Donnelley's and upon such removal the City shall return the Monitoring Space to the same
condition it was in prior to the installation of the Console.
5. The security system shall be for the sole use of RR Donnelley in the protection
of its employees, agents and invitees. Operation of the security system for such purposes shall be
at the sole cost and expense of R.R.Donnelley and in such instance R.R.Donnelley at its own
cost and expense shall (1)provide all personnel necessary to monitor the security system and(2)
be'responsible for the hiring,training and supervision of its personnel monitoring the security
I
system.
The parties agree that in no event shall R.R.Donnelley have the obligation to
monitor or provide security to any individuals other than its employees,agents and invitees and
to any other area than that portion of the Spring Street parking facility designated for R.R.
Donnelley's use(identified on the attached Exhibit B). R.R.Donnelley agrees to indemnify the.
City against claims for damages to R.R, Donnelley's property or its employees, agents and
invitees occurring in that portion of the Spring Street parking facility designated for R.R.
Donnelley's use.
cHMAT14o2:225136_I.W PD I
i i0 'd AU S3NOP £F:SI (Illd)86 .0Z- 'TM
03/23/98 HUN 13:41 FA1 931 D4u9 E.i-"'.` 1'1t.'11:i'- wi'"n"A`•"" --
•
Insert 4a,
R.R. Donnelley shall be permitted to use the 110 designated parking spaces 24 hours a day, every
day of the calendar year. The City and R.R. Donnelley agree upon the request of either party to
meet twice a year to review in good faith R.R. Donnelley's parking needs and,if necessary,
increase or decrease the number of R.R. Donnelley's designated parking spaces.
Insert Sa
,in good faith,during R.R.Donnelley's employee shift changes.
Insert 5b
the results of at least three consecutive surveys of R.R. Donnelley's use of the designated parking
spaces,taken on separate business days during employee shift changes,
Insert Sc
_ewe , after the City has given
tC� R.R.Donnelley advance 30 day written notice and R.R. Donnelley has
�`'� not cured its failure within the 30 day period,
Xsert 6 ,
, after the City has given R.R.Donnelley advance 30 day written notice and RR.Donnelley has
not cured its failure within the 30 day period,
Insert 7a
In addition,RR. Donnelley has the option to extend the term of this Agreement for an additional
• five year period by providing written notice to the City no later than 30 days before the
expiration of the term. In the event that R.R.Donnelley fails to provide such notice to the City,
R.R.Donnelley shall be deemed to have elected to extend the term for the additional five year
peri d.
18. That R.R.Donnelley shall not be liable for any damages to the security system
C-OrIP E u ss caused by R.R.Donnelley's gross negligence or intentional misconduct.
�� 19. That the City will not assign this Agreement without the prior written consent of
R.R.Donnelley,which may be withheld in R.R.Donnelley's sole discretion.
CHMAIN02:225736 I.WPD 2
Z 10 'd AVU s3N0P ' :51 (I d)86 ,QZ- •(V11
March 24, 1998
MEMORANDUM
TO: Robert 0. Malm, Chief Operating Officer/Assistant
City Manager
FROM: William A. Cogley, Assistant Corporation Counsel
SUBJECT: R.R. Donnelley' s Proposed Revisions to Development
Agreement
The following are my comments with respect to R.R. Donnelley' s
proposed revisions to the Development Agreement concerning the
Spring Street parking deck and the Highland Lofts property:
1 . Section 2 has been revised to provide that R.R. Donnelley
may purchase an additional camera which the city shall
install at a location determined by R.R. Donnelley at the
city' s sole cost and expense. Details of this additional
camera and the proposed location should be provided by
R.R. Donnelley.
2 . Section 4 has been revised by deleting the reference to
R.R. Donnelley with respect to providing space at the
Highland Lofts building for the installation of the
security system. The city should have both the owner' s
and the tenant' s consent to the installation of components
of the security system at the Highland Lofts property.
Section 4 has also been revised to provide that the city
shall install at the city' s cost an additional monitoring
system at the Highland Lofts building. I do not believe
such additional monitoring system was included in the
city' s contract for the security system. It is unlikely
that the city could install an additional monitoring
system by the May 15, 1998 deadline. If it is determined
by the city that an additional monitoring system is
necessary and justified inquiry should be made as to the
cost of such an additional system.
3 . Section 5 has been revised in its entirety. The new
Section 5 as proposed by R.R. Donnelley would limit the
security system to the sole use of R.R. Donnelley in the
protection of its employees , agents and invitees . R.R.
Donnelley' s revised Section 5 would also limit R.R.
Donnelley' s obligation to monitor and provide security
only to its own employees and to those areas being
utilized by R.R. Donnelley. The city could be exposed to
liability concerns in the event the city installs a
security system at the Spring Street parking deck but
provides inadequate monitoring thereof .
Robert 0. Malm -2- March 24 , 1998
4 . Section 6 includes a proposed revision that the parties
will meet twice a year to review in good faith R.R.
Donnelley' s parking needs and if necessary increase or
decrease the number of R.R. Donnelley designated parking
spaces . Such revision creates a possibility that R.R.
Donnelley will seek an increase beyond the 110 spaces
designated in the agreement.
5 . Section 9 includes a proposed revision identified as
"Insert 5c" . This proposed revision appears to be
treating R.R. Donnelley' s underutilization of the
designated parking spaces as an event of default for which
R.R. Donnelley should be provided thirty ( 30) days advance
written notice and an opportunity to cure its failure.
The underutilization of designated spaces is not an event
of default for which a cure would be contemplated.
Section 9 is proposed to be further revised by deleting
the last phrase "but in no event to exceed 130 spaces . "
This revision could provide the potential of unlimited
designated parking spaces to R.R. Donnelley.
6 . Section 11 is proposed to be deleted in its entirety.
This deletion would remove any obligation of R.R.
Donnelley to lease a specified number of square feet at
the Highland Lofts building and maintain the promise of
150 full time employees at such location. My
understanding was these terms were the essential quid pro
quo for the city agreeing to purchase and install the
security system and designating parking spaces at the
Spring Street parking facility. It is questionable
whether sufficient consideration would exist for the
agreement if R.R. Donnelley does not specially agree to
minimum lease terms and employment levels at the Highland
Lofts building.
7 . Section 12 also provides for a revision whereby the
referenced minimum 150 new full time jobs have been
deleted.
8 . Section 17 currently provides for a five (5) year term of
the agreement. R.R. Donnelley has proposed that it have
an option to extend the term of the agreement for an
additional five (5) years .
9 . A new Section 18 has been proposed by R.R. Donnelley
whereby R.R. Donnelley limits its liability for damage to
the security system unless caused by R.R. Donnelley' s
gross negligence or intentional misconduct. R.R.
Donnelley should be liable for any damage to the security
system caused by R.R. Donnelley' s negligence.
10 . A new Section 19 has been proposed by R.R. Donnelley
whereby the city may not assign the agreement without the
prior written consent of R.R. Donnelley which may be
Robert 0. Malm -3- March 24 , 1998
withheld at R.R. Donnelley' s sole discretion. I recommend
not limiting the city' s rights to assign the agreement.
WAC
nr
cc : Michael R. Gehrman
Richard G. Kozal
Approved:
Erwin W. Jentsch
City of Elgin
Mayor
o 11 Kevin Kelly
44
�R4TEDFF�tie
Council Members
Terry Gavin
Robert Gilliam
John T. McKevitt
Ed Schock
John Walters
Via Facsimile and U.S. Mail Marie Yearman
April 17, 1998
Brian L. Sedlak, Esq.
Jones, Day, Reavis & Pogue
77 West Wacker
Chicago, IL 60601-1692
Re: City of Elgin and R.R.
Donnelley Development
Agreement
Dear Brian:
As discussed with you in our phone conference this afternoon
the following is the city' s counter proposal with respect to
monitoring the security system for the Spring Street parking
facility and the designation of parking spaces :
1 . R.R. Donnelley would provide for the monitoring of the
security system each day from 5 : 00 p.m. to 5 : 00 a.m. The
monitoring would take place from the lobby of the Highland
Lofts building with the monitors to be installed by the
city. The city would enter into the contract with the
security company providing such service and R.R. Donnelley
would reimburse the city for the cost of this service.
2 . 110 parking spaces would be reserved for R.R. Donnelley.
70 of such spaces would be undercover and would be
reserved Monday through Saturday from 7 : 00 a.m. to 7 : 00
p.m. 40 of the spaces would not be undercover but would
be reserved 24 hours a day seven days a week.
The foregoing proposal adopts most of R.R. Donnelley' s recent
proposal concerning the designation of parking spaces with the
addition that the 40 24 hours spaces be relocated from
undercover areas . The proposal for R.R. Donnelley to provide
for the monitoring of the security system from 5 : 00 p.m. to
5 : 00 a.m. is consistent with Russ Gregg' s statement at our
April 9 meeting where Mr. Gregg suggested that R.R. Donnelley
would consider this arrangement. It also seems to make sense
150 Dexter Court • Elgin, IL 60120-5555 • Phone 847/931-6100 • Fax 847/931-5610 • TDD 847/931-5616
® Pnnted on recycled paper
Brian L. Sedlak -2- April 17, 1998
that if R.R. Donnelley is going to have a security person on
the premises for this approximate time frame to take advantage
of this expenditure to provide for monitoring of the security
system.
I look forward to hearing from you at your earliest convenience
regarding the foregoing proposal.
Very truly yours,
William A. Cogley
Assistant Corporation Counsel
WAC/mg
Attachments
cc: Joyce A. Parker
Erwin W. Jentsch