HomeMy WebLinkAbout98-280 Resolution No. 98-280
RESOLUTION
AUTHORIZING EXECUTION OF A PARTICIPATION AGREEMENT IN
CITY OF ELGIN COOK COUNTY
AUTOMOBILE DEALERSHIP INCENTIVE PROGRAM
(Feeny Chrysler-Plymouth-Jeep-Eagle, 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 a
Participation Agreement in City of Elgin Cook County Automobile
Dealership Incentive Program on behalf of the City of Elgin
with Daniel P. Feeny, d/b/a Feeny Chrysler-Plymouth-Jeep-Eagle,
Inc . to permit participation in the business retention rebate
portion of the program, a copy of which is attached hereto and
made a part hereof by reference.
s/ Kevin Kelly
Kevin Kelly, Mayor
Presented: November 18, 1998
Adopted: November 18, 1998
Omnibus Vote: Yeas 5 Nays 0
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
PARTICIPATION AGREEMENT IN CITY OF ELGIN
COOK COUNTY AUTOMOBILE DEALERSHIP INCENTIVE PROGRAM
This agreement made and entered into this /S14' day of
��A� --- , 1998, by and between the CITY OF ELGIN, an
Illinois municipal corporation (hereinafter referred to as the
"City") and FEENY CHRYSLER-PLYMOUTH-JEEP-EAGLE, INC. , a [n] [insert
state] corporation, (hereinafter referred to as "Feeny") .
WITNESSETH
WHEREAS, the City Council of the City of Elgin has previously
enacted Ordinance No. T12-96 which provides for the establishment
of an incentive program for automobile dealerships located within
that area of the City of Elgin lying within Cook County; and
WHEREAS, Feeny has made application to the City to participate
in the sales tax rebate portion of the incentive program; and
WHEREAS, the City Council has determined that it is in the
best interest of the City to approve Feeny' s application to
participate in the sales tax rebate portion of the program.
NOW, THEREFORE, for and in consideration of the mutual
promises and undertakings as set forth herein, and for other good
and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto as follows :
1 . That the application of Feeny to participate in the sales
tax rebate portion of the City of Elgin Cook County Automobile
Dealership Incentive Program is hereby approved by the City Council
of the City of Elgin.
2 . That the terms of Ordinance No. T12-96, a copy of which
is attached hereto, are hereby incorporated into this agreement in
their entirety. Feeny agrees to comply with all conditions and
terms as specified in the automobile dealership incentive program
and as set forth in the attached Ordinance No. T12-96. In the event
of any conflict between the provisions of this agreement and those
of Ordinance No. T12-96, the provisions of this agreement shall
control .
3 . That in consideration of Feeny completing minimum capital
improvements in an amount in excess of two hundred percent (200%)
of the annual average amount of local retail sales tax paid to the
City during the month of April 1998 and for each of the thirty-five
(35) consecutive calendar months immediately preceding April, 1998
at the real property and improvements Feeny owns at 1010 East
Chicago Street, Elgin, Cook County, Illinois (the "facility") , the
City agrees that Feeny is eligible to receive a retail sales tax
rebate in the amount of fifty percent (50%) of any annual increase
in the retail sales tax generated by Feeny at the facility in
excess of the annual average retail sales tax distributed to the
City by Feeny during the month of April 1998 and for each of the
thirty-five (35) consecutive calendar months immediately preceding
April 1998 .
4 . Feeny, when eligible, may apply for a fifty percent
(50o) retail sales tax rebate annually for five consecutive periods .
The first annual period shall commence on November 1, 1998 and
shall terminate on October 31, 1999. Each of the four remaining
2
periods shall commence annually on November 1st and terminate on
October 30th.
IN WITNESS WHEREOF, the parties have entered into and executed
this agreement on the date and year first written above.
CITY OF ELGIN FEENY CHRYSLER-PLYMOUTH-
JEEP-EAGLE, INC. , an
Illinois corporation,
-elfrVa7
By Pity- 2 4 BY iU ���
Mayor Daniel P. Feeny
Its President
Attest: Attest:
51,4h",„-0
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City Clerk Therese C. Feeny
Its Vice President
3
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CITY OF ELGIN
COOK COUNTY AUTOMOBILE DEALERSHIP
INCENTIVE PROGRAM
APPLICATION FORM
Feeny Chrysler-Plymouth-Jeep-Eagle, Inc.
Business Name:
1010 E. Chicago Street
Business Address:
City/State/Zip Code: Elgin, IL 60120
Corporate Officer: Mr. Daniel P. Feeny
Telephone: (847) 697-0900
Federal Tax ID Number: 36-3761157
Sales Tax ID Number: IBT # 2275-1769
If you are interested in participating in the Cook County Automobile Dealership Incentive
Program,please complete and return this application to: James I?. Nowicki, City of Elgin, 150
Dexter Court, Elgin, IL 60120 (telephone 847-931-5625).
Also, please provide three (3) copies of the appropriate documentation supporting the fcucei of
the particular program in which you wish to participate.
Participants in the rebate programs are required to submit Illinois Department of Revenue
documentation of revenues and sales taxes paid for the last three years (all documentation
will remain confidential). Descriptions of plans for capital improvements must also be
submitted at the time of application to the program. Application is subject to review and must
he approved by the Elgin City Council.
•
• 1
• SALES TAX SHARING AGREEMENT
(Dealership capital investment must be more than 200% of the average sales tax base (1993-
1995).
Detailed Description of Capital Investment:
See Exhibit A "Feeny CP/JE Improvements"
prepared by Architect dated 9/21/98
Name of General Contractor: Michael J. Brown Construction, Inc.
Address: 37 W 222 Rt. 64 Suite 195
City/State/Zip: St. Charles, IL 60175
Telephone:
Project Costs:
Construction/Remodeling $ 946,010.95
Other Capital Improvements $
5/95 - 4/98 215,100.67
Average Sales Tax Base (k4 .3{�th9)9x5) $
Please provide the following documentation (all documentation provided will remain
confidential):
► Copies of City of Elgin building permit receipts related to capital investment - Item 1
► Receipts for capital improvement purchases. - Payout Application/Certification - Item 2
► State of Illinois certified sales tax receipts 199i) (5/95 - 4/98) - Item 3
► Construction/bid documents (required for building permit) for building
expansion/remodeling. - Plans - Item 4
► Listing of capital items to be purchased.. - construction Contract - Item 5
► Copy of business plan, if available. N/A
► Copy of most recent audited financial statement. - Item 6
t .
INVESTMENT GRANT
(Capital investment must he at least$50,000 and up to $200,000)
Detailed Description of Capital Investment (please include number of square feet improved):
N/A
Name of General Contractor:
Address:
City/State/Zip:
Telephone:
Project Costs:
Construction/Remodeling $
Other Capital Improvements $
Please provide the following documentation (all documentation provided will remain
confidential):
► Copies of City of Elgin building permit receipts related to the capital investment.
► Receipts for other capital improvement purchases (e.g., furniture, fixtures, etc.).
► Construction/bid documents (required for building permit) for building
expansion/remodeling.
► Listing of capital items to be purchased.:
► Copy of business plan, if available.
► Copy of most recent audited financial statement.
I
BUSINESS RETENTION REBATE
(Dealerships must remain in Elgin for at least five years -- may not be used in conjunction
with another incentive)
N/A
Please provide the following documentation (all documentation provided will remain
confidential):
► Copy of five-year lease agreement (if property is leased).
► Affidavit, signed by an authorized officer, stating the dealership will continue their retail
operations in Elgin for at least five years.
► State of Illinois certified sales tax receipts (1993-1995).
All supportive financial documents and required information must be supplied before the
application will be considered by the Elgin City Council.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
We agree to all conditions specified in the Automobile Dealership Incentive Program.
--eSigned: 62 k Signed: P kee,4,1fre(
Daniel P. Feeny
Title: President Title: Sg'cT/7 .
(Chief Corporate Officer) (Chief Financial Officer)
Date: October 22 , 1998
Approved:
Attest:
Signed: Signed: x'
Kevin Kelly, Mayo Dolonna Mecum, City Clerk
Date: -"t` 797f
7<
♦ , • P '
September 21, 1998
Feeny Chrysler Plymouth/Jeep Eagle
1010 E. Chicago Street
Elgin, Illinois
FEENY CP/JE IMPROVEMENTS
In general terms, the improvements to the existing consisted of a three phase interwoven
project. The first phase consists of constructing a new 2, 457 sq. ft. Service Write-up
Addition. The second phase consists of constructing a new 3,324 sq. ft. Showroom
Addition with offices. The third phase consists of remodeling the existing showroom,
remodeling and addition of the general office, and constructing new ADA accessible toilet
facilities.
In addition the exterior of the building has been renovated with a modern facade, canopy,
and lighting. The service department is being upgraded with new lighting and painting.
The entire building will be upgraded to include a fire alarm system to meet code and safety
issues.
As a fmal additional phase, the entire parking lot will be repaired and asphalted. The
existing old parking lighting will be removed and replaced with state of the art parking
light fixtures and poles.
OF E(C, �.
City of Elgin Memorandum
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ti
October 21, 1998
TO: Mayor and Members of the City Council
FROM: Joyce A. Parker, City Manager
SUBJECT: Cook County Automobile Dealership Incentive Program
Application - Feeny Chrysler-Plymouth-Jeep-Eagle
Dealership
PURPOSE
The purpose of this memorandum is to provide information to the
Mayor and members of the City Council to consider an agreement
with Feeny Crysler-Plymouth-Jeep-Eagle Dealership (Feeny) for
participation in the Cook County Automobile Dealership Incentive
Program.
BACKGROUND
On August 28 , 1996 , the City Council passed an ordinance estab-
lishing an incentive program for automobile dealerships located
in the Cook County portion of Elgin. Application forms and
program information were mailed to all dealerships in October,
1996 .
The Cook County Automobile Dealership Incentive Program consists
of three facets :
1) Sales Tax Sharing Agreement: Any Elgin automobile dealer-
ship whose facility is located in Cook County may take
advantage of the sales tax sharing agreement by making a
capital improvement to their facility of more than 200
percent of the average sales taxes paid over the- past three
years . During the next five years, the eligible dealership
will receive 50 percent of the increased local sales tax
revenue generated over the business ' s three year average
sales tax base .
2) Investment Grant Program: Automobile dealers who make
capital investments of at least $50, 000 and up to $200 , 000
may be eligible for a 15 percent investment grant from the
City. Upon approval, a participating dealer has up to two
years to complete capital improvements . The City will pay
half of the grant amount in the first month that improvement
construction begins, with the balance being paid in thirteen
months or when construction is completed, which ever comes
first . The required improvements must be completed within
RIM
, Cook County Auto Dealership Incentive
October 21, 1998
Page .pn
the two-year period or all grant money previously
distributed will be forfeited. Dealers are eligible for the
Investment Grant Program only once every five years .
3) The Business Retention Rebate: To be eligible for the 35
percent business retention rebate, a dealership must agree
in writing to continue their retail operations in Elgin for
a period of at least five years . The dealership is also
required to supply the City with Illinois Department of
Revenue documentation of the revenues and sales taxes paid
for the years 1994-1997 . All sales tax information received
from the Illinois Department of Revenue is required to
remain confidential .
Feeny has submitted an application and all required documentation
for participation in the Sales Tax Rebate facet of the program.
The Illinois Department of Revenue has verified the sales tax
receipts for the dealership during the previous three-year period
(1995-1998) . Upon execution of a participation agreement, the
dealership will be eligible to receive a 50 percent rebate of the
increase in sales tax receipts (October, 1998 through September,
P g
1999) over the previous three-year average . Feeny is scheduled
to make over $900 , 000 in improvements to their facility
The City Council has previously approved participation by Jerry
Biggers Chevrolet for the Investment Grant facet of the program,
and Ron Hopkins Ford and Elgin Toyota for the Business Retention
facet of the program.
Example :
Average 3-Year Sales Tax Receipts (1995-1998) $250, 000
Sales Tax Receipts (6/98 - 5/99) Assuming 20% Increase $300 , 000
Annual Rebate to Dealership (500 of $50, 000) $ 25, 000
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
None .
INANCIAL IMPACT
The exact rebate amount will not be known until completion of the
twelve month period following approval of the participation
agreement (October, 1998 through September, 1999) . Adequate
monies are available in the Elgin Riverboat Fund, account number
275-0000-791 . 80-27 - Economic Development Incentives - to fund
this program.
LEGAL IMPACT
fin*
" An agreement with the dealership will need to be prepared.
MIR
•Cook- County Auto Dealership Incentive
October 21, 1998
Page .pn
ALTERNATIVES
None .
RECOMMENDATION
It is recommended that the Mayor and members of the City Council
authorize staff to enter into a participation agreement with
Feeny Chrysler-Plymouth-Jeep-Eagle for the Sales Tax Rebate facet
of the Cook County Automobile Dealership Incentive Program.
R pectfully subny tted,
/ ce . Parker
City Manager
JAP/amp
Attachment