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Home My WebLink About99-65 Resolution No. 99-65 RESOLUTION AUTHORIZING EXECUTION OF A PARTICIPATION AGREEMENT IN THE AUTOMOBILE DEALERSHIP INCENTIVE PROGRAM WITH ROBERT LOQUERCIO ENTERPRISES, D/B/A ELGIN TOYOTA 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 on behalf of the City of Elgin with Robert Loquercio Enterprises, d/b/a Elgin Toyota for participation in the sales tax rebate portion of the City of Elgin Cook County Automobile Dealership Incentive Program, a copy of which is attached hereto and made a part hereof by reference. s/ Kevin Kelly Kevin Kelly, Mayor Presented: March 10, 1999 Adopted: March 10, 1999 Vote: Yeas 6 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk PARTICIPATION AGREEMENT CITY OF ELGIN COOK COUNTY AUTOMOBILE DEALERSHIP INCENTIVE PROGRAM This agreement is made and entered into this lOthday of March , 1999, by and between the CITY OF ELGIN, an Illinois municipal corporation (hereinafter referred to as the "City") and ROBERT LOQUERCIO ENTERPRISES a Delaware corporation, doing business as ELGIN TOYOTA (hereinafter referred to as "Elgin Toyota"). WITNESSETH WHEREAS, Elgin Toyota, previously agreed to participate in the business retention incentive program for automobile dealerships located within that area of the City of Elgin lying within Cook County under the terms of Ordinance No. T12-96 in an agreement with the City dated 16 July 1997, a copy of that agreement being attached to this agreement as Exhibit A, hereafter referred to as the "prior agreement"; and WHEREAS, Elgin Toyota no longer desires to participate in the business retention incentive program and wishes to terminate the prior agreement; and WHEREAS, the City Council of the City of Elgin has enacted Ordinance No. No. T1- 99 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, Elgin Toyota 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 terminate the prior agreement and approve Elgin Toyota'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 agree as follows: 1. The prior agreement is hereby terminated by the mutual consent and agreement of the City and Elgin Toyota and shall be of no further force or effect. 2. That the application of Elgin Toyota 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. 3. That the terms of Ordinance No. T1-99, a copy of which is attached hereto as Exhibit B, are hereby incorporated into this agreement in their entirety. Elgin Toyota 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. T1-99. In the event of any conflict between the provisions of this agreement and those of Ordinance No. T1-99, the provisions of this agreement shall control. 4. Elgin Toyota and the City agree that the annual average amount of local retail sales tax paid to the City during the time period specified in the prior agreement is one hundred twenty-four thousand, two hundred ninety-five and 00/100 dollars ($124, 295.00), hereafter referred to as the "base rate." In consideration of Elgin Toyota completing, within twenty-four (24) months from the date of this agreement, minimum capital improvements at the improved real property Elgin Toyota owns at 1200 East Chicago Street, Elgin, Cook County, Illinois, hereafter referred to as the "facility") in an amount in excess of two hundred percent (200%) 2 of the base rate, the City agrees that Elgin Toyota is eligible to receive a retail sales tax rebate in the amount of fifty percent (50%) of any annual increase from the base rate. 5. Elgin Toyota, when eligible, may apply for a fifty percent (50%) retail sales tax rebate annually for seven (7) consecutive periods. The first annual period shall commence on March 1, 1999 and shall terminate on February 29, 2000. Each of the six remaining periods shall commence annually on March 1 s` and terminate on the last day of February. 6. In accordance with Ordinance No. T1-99, Elgin Toyota shall post or cause to be posted in favor of the City a performance bond, letter of credit or such other instrument acceptable to the City before any sales tax rebate is paid to Elgin Toyota. The performance bond, letter of credit or such other instrument shall be in an amount equal to any sales tax rebate being sought by Elgin Toyota plus the amount of any sales tax rebate previously paid by the City to Elgin Toyota under the terms of this agreement. 7. In the event Elgin Toyota fails to complete, within twenty-four (24) months from the date of this agreement, minimum capital improvements at the facility in an amount in excess of two hundred percent (200%) of the base rate, all funds paid by the City to Elgin Toyota pursuant to this agreement shall be returned to the City within ten (10) days following the expiration of said twenty-four (24) month period. Upon reimbursing the City for funds received pursuant to this agreement, Elgin Toyota, or any successor in interest permitted under the terms of paragraph 11 of this agreement, shall be eligible to submit an application to participate in the business retention facet of Ordinance No. T1-99. 8. Elgin Toyota agrees that it will not relocate the retail automobile dealership operating at the facility for a period of not less than ten years from the date of this agreement. Upon 3 the expiration of said ten-year term, Elgin Toyota agrees to provide the City with written notice of its intent to relocate the retail automobile dealership operating at the facility six months before any such relocation and further agrees to participate in good faith negotiations with the city to maintain a retail automobile dealership at the facility or at another location within the City's corporate limits. 9. The City and Elgin Toyota agree that the City shall not be reimburse Elgin Toyota more than six hundred thousand dollars ($600,000.00) during Elgin Toyota's participation in the sales tax rebate portion of the City of Elgin Cook County Automobile Dealership Incentive Program created under Ordinance No. T1-99. 10. This agreement shall be contingent upon Elgin Toyota obtaining ownership of the premises on which the facility is located before 30 September 1999. In the event Elgin Toyota or its permitted successor or assign does not present reasonable proof of ownership of the premises to the City before 30 September 1999, this agreement shall be null and void. 11. This agreement shall be binding on the parties hereto and their respective permitted successors and assigns. The parties hereto understand that Elgin Toyota is considering assigning all of its rights and delegating all of its obligations hereunder to an Illinois corporation Elgin Toyota will be creating to purchase the premises on which the facility is located. The City hereby consents to such assignment provided such assignment shall include a written assumption agreement between Elgin Toyota and the Illinois corporation to be created by Elgin Toyota, the form of which shall be subject to the City's written approval. Following such assignment and delegation and the newly created Illinois corporation's assumption of Elgin Toyota's obligations, no further assignments of this agreement shall be made without the 4 express written consent of the City, it being expressly agreed and understood that any such consent may be provided or withheld by the City in its sole and exclusive discretion. 12. This agreement shall not be modified, amended or supplemented without the written agreement of the parties hereto. 13. This agreement shall be subject to and governed by the laws of the State of Illinois. Venue for the resolution of any disputes or the enforcement of any rights arising out of or in connection with this agreement shall be in the Circuit Court of Kane County, Illinois. 14. This agreement shall not be construed so as to create a joint venture, partnership, employment, or other agency relationship between the parties hereto. 15. 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. 16. This agreement constitutes the only agreement between the parties hereto. No other agreements, either oral or written, exist between the parties hereto. IN WITNESS WHEREOF, the parties have entered into and executed this agreement on the date and year first written above. CITY OF ELGIN ROBERT LOQUERCIO ENTERPRISES., a Dela- ware corporation, d/b/a ELGIN TOYOTA ByZB IZ-Z0 .q � 2� y 46J Mayor Robert quercio Its President Attest: Attest: .ozdy City Clerk uri Quind , is Secretary-Treasurer 5 �"n'.,s.,A..�.�.,t..�,. ..a.AA w w.,e.►' ' OFFICIAL SEAL BRENDA L. WEST NOTARY PUBLIC, STATE OF ILLINOIS My Commission Expires Oct.15,2002