01-16 Resolution No . 01-16
RESOLUTION
AUTHORIZING EXECUTION OF AN E-ELGIN INCENTIVE PROGRAM AGREEMENT
WITH MICHAEL A. TRUMP OF THE LEFT BANK, LLC
(38 S . Grove Avenue)
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Joyce A. Parker, City Manager, and Dolonna Mecum,
City Clerk, be and are hereby authorized and directed to execute an
e-elgin Incentive Program Agreement on behalf of the City of Elgin
with Michael A. Trump of the Left Bank, LLC for the property
located at 38 S . Grove Avenue, a copy of which is attached hereto
and made a part hereof by reference .
s/ Ed Schock
Ed Schock, Mayor
Presented: January 24 , 2001
Adopted: January 24 , 2001
Omnibus Vote : Yeas 5 Nays 0
Recorded:
Attest :
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
CITY OF ELGIN
e-elgin Incentive Program
THIS AGREEMENT is made and entered into this _?S J( day of
January, 2001, by and between the City of Elgin, Illinois, a
municipal corporation (hereinafter referred to as "City" ) , and
Left Bank, LLC, (hereinafter referred to as "Owner" ) .
WHEREAS, City has established an e-elgin Incentive Program
(hereinafter referred to as " Program" ) for application within a
certain area of the corporate limits of the City designated by City
as appropriate for such application (hereinafter referred to as
"Target Area" ) : and
WHEREAS, Program is administered and funded by the City for
purposes of promoting opportunities to further both economic growth
and community development by taking advantage of the shift in the
national economy toward e-commerce, the Internet and advances in
telecommunication areas; and
WHEREAS, pursuant to the Program, City has developed a program
to offer assistance to property and business owners for expenses
related to technology infrastructure improvements, moving expenses,
advertising costs and infrastructure capital costs, a maximum of
$5, 000 for installation fees, and $2, 500 for advertising expenses,
pursuant to the criteria of the Program and as set forth herein;
and
WHEREAS, Owner owns at least 50% of the building, or is the
tenant of a business related building (s) located within the project
area, and owner desires to participate in Program pursuant to the
terms and provisions of this Agreement .
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 :
Section 1 . City shall pay to Owner/Tenant the sum of
$3, 491 . 00 for imovements approved pursuant to the provisions of
this Agreement (hereinafter referred to as "Eligible Costs" )
for the Structure referred to at Section 16 herein (hereinafter
referred to as " Structure" ) .
All parties hereto agree that all payments from the City provided
for herein shall be made to Left Bank LLC, who shall provide the
City with a full release upon receipt .
Section 2 . Eligible costs shall include labor, material and
equipment costs, and such other costs as may be reasonably
necessary for the execution and completion of the Improvements
hereby provided for (hereinafter referred to as the "Work" ) , as
designated from the proposal approved by the City pursuant to the
provisions of Section 3 herein, as identified in Exhibit A,
attached hereto and made part hereof this Agreement .
Section 3 . No Work shall be undertaken or shall be considered
to constitute the basis for an Eligible Cost until the Proposal for
such Work has been submitted to and approved in writing by the
Project Review Team, consisting of the City' s Director of Economic
Development and Business Services and the Technology Action Team.
Such proposals shall include, but not be limited to, a date certain
by which the Work shall be completed. All work relating to the
exterior Improvements to the Structure shall be completed within
180 days from the date of the Agreement, unless Owner obtains the
written consent of the Project Review Team.
Section 4 . The Project Review Team shall be permitted access
to Structure to periodically review the progress of the Work. Such
review shall not be in lieu of any other inspections which may
otherwise by required by law or by City. Any and all portions of
the work which do not, in the sole discretion of the Project Review
Team, conform to the Plans or other applicable terms of this
Agreement, shall be made to conform to the Plans and other
applicable Terms of this Agreement upon written notice of the
existence of such non-conforming portions .
Section 5 . Upon completion of the Work, and upon final
inspection and written approval by the Project Review Team and such
other final inspections and approvals as may be required by law,
Owner shall submit to City: (1) an executed, notarized itemized
contractor statement reflecting the total cost of the Work and each
portion thereof, including, but not limited to, the cost of labor
(whether provided by any contractor or subcontractor) , materials
and equipment; (2) copies of all bids, contracts and invoices
submitted, executed or incurred pursuant to the Work; and (3)
reasonable proof of payment of all costs incurred pursuant to the
Work.
Section 6 . City shall pay Owner in accordance with Section 1
herein within thirty (30) days of owner' s compliance with the
provisions of Section 5 herein.
2
In no event shall the amount paid Owner exceed the amount specified
in this Agreement nor shall the City pay the Owner an amount
greater than the cost specified in an invoice submitted by a
contractor for any approved work set forth in Exhibit A.
Section 7 . In the event Owner fails to complete the Work in
accordance with the terms of this Agreement, or otherwise breaches
the terms of this Agreement, City may terminate this Agreement upon
written notice of breach and termination to Owner, and any and all
financial or other obligations on the part of City shall cease and
become null and void.
Section 8 . Upon completion of the Work, and for a period of
five (5) years thereafter, Owner shall properly maintain the Work
in its finished form, without alteration or change thereto, and
shall not enter into any agreement, or take any other steps to
alter, change or remove such Work without prior written approval
from this Project Review Team in its sole discretion.
Section 9 . Nothing herein is intended to limit, restrict or
prohibit the Owner from undertaking any other work in or about the
subject premises which is unrelated to the improvement provided for
in this Agreement .
Section 10 . This Agreement shall be binding upon City and its
successors, and upon Owner, Owner' s successors and assigns for a
period of five (5) years from and after the date of completion and
approval of the work. Owner shall provide subsequent Owner (s) of
Structure with a copy of this Agreement . This Agreement shall run
with the land underlying Structure .
Section 11 . If Owner does not own the underlying property for
which work is being done, Owner warrants and represents to City
that Owner has a lease at the location for which the work is
proposed for a term of at least three (3) years . Owner further
warrants and represents that he has received authorization from all
owners of the property for which work is to be done to accept funds
under this program and to undertake the work. Further, such
owner (s) of the property for which work is to be done hereby
acknowledges that he is aware of this Agreement and authorized the
work which is to be made to the Structure. Said owner (s) of the
property for which improvements are to be made further acknowledge
that, as owner of the property, he is a party to this Agreement and
is bound by the provisions of this Agreement specifically, but not
limited to, the provisions of Section 6 of this Agreement . Each
"Owner" signature hereto hereby warrants and represents that there
are no other entities having an ownership interest in the
Structure, which have not executed this Agreement .
3
Section 12 . To the fullest extent permitted by law, the Owner
agrees to indemnify, defend and hold harmless the City, its
officers, employees, boards and commissions from and against any
and all claims, suits, judgements, costs, attorney' s fees, damages
or other relief arising out of or resulting from or through or
alleged to arise out of any reckless or negligent acts or omissions
of Owner' s officers, employees or agents as a result of or in the
performance of this agreement . In the event of any action against
the City, its officers, employees, agents, boards or commissions
covered by the foregoing duty to indemnify, defend and hold
harmless, such action shall be defended by legal counsel of the
City' s choosing. .
Section 13 . This Agreement shall not be construed to create
a partnership, joint venture or employment relationship between the
parties hereto.
Section 14 . This Agreement shall be subject to and governed
by the laws of the State of Illinois . The parties hereto hereby
agree that venue for any and all actions which may be brought by
each and either of them to enforce the provisions of this Agreement
shall be in the Circuit Court of Kane County, Illinois .
Section 15 . The terms of this Agreement shall be severable .
In the event that 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 .
Section 16 . Owner' s Name: Left Bank, LLC
Address : 38 South Grove Avenue
City: Elgin State : IL Zip Code : 60120
Telephone Number: (847 ) 695-8181
Property Location of Structure : 38 S . Grove
Elgin, Illinois .
Ownership Interest : Owner
Contact Person: Mike Trump
Owner' s Name :
Address :
City: State : Zip Code :
Telephone Number:
Property Location:
Ownership Interest : Owner:
Owner' s Name :
Address :
City: State : Zip Code:
Telephone Number:
Property Location:
Ownership Interest : Tenant :
4
Owner' s Name :
Address :
City: State : Zip Code:
Telephone Number:
Property Location:
Ownership Interest :
Section 17 . The City of Elgin Neighborhood Business
Improvement Grant Program Guidelines dated February 4, 1999, as
such guidelines may be amended from time to time by the City, are
hereby incorporated into this Agreement .
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement on the date first appearing above.
OWNER CITY ,
,"2.4
4 By:
Left Bank, LLC J oeVA. Parker, City Manager
OWNER ATTEST :
Dolonna Mecum, City Clerk
OWNER
OWNER
OWNER
•
OF <
C'• C��
City of Elgin Agenda Item No.
December 13, 2000 G
TO : Mayor and Members of the City Council,
ALIVE DOWNTOWN
FROM: Joyce A. Parker, City Manager
SUBJECT : e-elgin Incentive Grant/Left Bank, LLC
38 South Grove Avenue
PURPOSE
The purpose of this memorandum is to present to the Mayor and
members of the City Council an application from Left Bank, LLC to
parti cipate in the e-elgin Incentive Progra-
BACKGROUND
In April 2000, the Mayor and City Council approved the e-elgin
Incentive Program. Assistance was provided for within the
following areas :
1 . Capital Costs
2 . Line Service Fees
3 . Advertising
Downtown commercial property owners and downtown business owners
can qualify for up to 50% of capital cost not to exceed a total
expenditure of $60, 000 ( $30, 000 maximum City contribution) in
funding for technology infrastructure improvements that include
installation of new Category 5 or better wiring, upgrade to
Category 5 or better wiring, backup power generators for technology
equipment, or high-speed Internet access capabilities, including
necessary hardware or other technology infrastructure improvements
approved by the Technology Action Team and City Council . Eligible
expenses do net include computer equipment, but could include
routers for Digital Subscriber Service (DSL) service .
High-tech businesses relocating to downtown Elgin and downtown-
based technology companies that are growing and planning to remain
in downtown Elgin are eligible for a 100% rebate of the service and
installation fees associated with relocation costs for DSL and T-1
service, with a not-to-exceed limit of
$5, 000 .
•
e-elgin Incentive Grant, Left Bank, LLC
December 13, 2000
Page 2
Downtown commercial property owners and owne
�" __ downtown businesses are
eligible for up to 52, 500 annually in co-op advertising funds when
they promote e-elgin in their ads . This grant will pay for 25% of
advertising placement costs, up o S2 , 500 annually. To qualify, ads
must bear the e-elgin logo and tag line as provided by the
Technology Action Team and ads must appear in newspapers and
magazines of general distribution . Participation in the
advertising assistance shall be reviewed on an annual basis by the
program administrator .
It should be noted that other requests for assistance under the e-
elgin incentive Program may be forth coming from the owner of 38
South Grove Avenue ( Promac Building) . The building has a
significant amount of quality office space available for rent and
has many features that make it attractive for use by high tech
companies . A review of the e-eight guidelines indicates that an
applicant is not limited to the use of the program if future
requests do not duplicate previously funded projects .
The proposal from Left Bank, TLC contains the following costs :
Capital Costs - $5, 432 . 00 , Service Tees - $775 . 00, and T-1 and
place line charges - $1, 280 . 00 . A total of $3 , 491 . 00 is el igible
for funding under the e-e-gin program. The award of a grant to
Left Bank, LLC would be the third under the e-elgin Incentive
Program.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
infrastructure Committee of the Technology Action Team.
VI, FINANCIAL IMPACT
1 / The total incentive would equal 53, 491 . 00 . Expenses related to the
e-elgin Incentive Program would be funded through account number
276-0000-791 . 80-27 in 2001 . Previously approved commitments which
would be paid in 2001 currently total $271 , 300 . 00 . The proposed
budget in 2001 for economic development contracts will total
$653 , 400 . 00, leaving a balance of $381, 600 . 00 .
'EGAL IMPACT
None .
ALTERNATIVES
1 . Fund the proposed e-elgin incentive application .
•
. .
e-eigin incentive Grant, Left Bank, LLC
December 13, 2000
Page 3
2 . Do not fund the proposed e-elgin Incentive aolcaton .
RECOMMENDATION
Staff recommends aPproval of the application by Left Bank, LLC
particioarion in the e-eigin Incentive 2rogram in the amon.
$3, 491 . 00
R;..2ectfuli_v submitty)
Joe A. 2arker
City Manager
-• -, • . •
RHM: sp
Attachment
•• • -
. _
October 20, 2000
Mr. Raymond H Moller
Director of Economic Development & Business Services
150 Dexter Court
Erin, II 60120
Dear Ray:
Enclosed you will find a completed e-elgin Incentive application form for the request of
funds for internet hardware that will make our property at 38 South Grove better
equipped to service multiple tenants and provide them with voice and data access
throughout our building.
This request is being submitted by Left Bank, LLC., the owners and lessors of this
building. We have enclosed two equipment quotes and will be pleased to provide you
with any additional information you require.
Thank you for your consideration of this request.
Best regards,
Michael A. Trump
Member-Left Bank, LLC.
e-elgin Incentive
Application Form
1 . Applicant l 7/cA4z?
(Name)
Home Address . &/
(Home Address)
rr.�]
(City) (State) (Zip) (Phone)
2 . Building or establishment for which the rebate is sought :
(Street Address)
Applicant is : wr.er Tenant
If tenant , what is term of lease?
3 . Proposed use of program:
New Category 5 or better wiring
Upgrade to Category 5 wiring or better
Backup Generator
Highsoeed Internet access hardware
Moving Expenses
Advertising
Other Technology Infrastructure (Tease specify)_
4 . Cost Elements
Capital Costs $
B . Service Fees $
C . Advertising $ /L -2)a
Total Cost S I
•
5 . Statement of understanding.
2 . The applicant (undersigned) agrees to comply with the
guidelines and procedures of the e-elgin Incentives
Program and the conceptual design and outline
specifications as agreed to by the applicant and the
application review team.
3 . The applicant understands that the applicant must
submit detailed cost documentation, copies of any
permits, bids, contracts and invoices and contractor' s
final waivers of lien upon completion of the approved
improvements .
-3?Applicant Signature '
If the applicant is other than the owner, the following line must
be completed :
I certify that I , the owner of the property at
do authorize the applicant to apply for a rebate
under the e-elgin Incentive Program and undertake the approved
improvements .
Date L' 1/2 2Ul 0
(Owners Signature)
FOR OFFICE USE ONLY
Date Application Received:
Application Fee Paid: Yes No
If yes , Check Cash
Application I . D . Number :
Rebate Approved : Date
Total Estimated Project Cost
Percent Applied for Rebate
Total Amount of Rebate
Rebate Denied : Date
Reason
(Program Coordinator)
Return To : Raymond H . Moller
Director of Economic Development
and Business Services
150 Dexter Court
Elgin, IL 60120
Document is best viewed in a fixed font like Courier
COW Computer Centers, Inc.
200 North Milwaukee Avenue
Vernon Hills, IL 60061
Thank you for allowing me the opportunity to quote
on the following items . If I can be of any further assistance,
please contact me at 1-800-800-4.239 ext. 50336 or email me at
calecam @cdw.com
SALES QUOTATION ORDER NO. Page 1
11/01/2000 2:48 PM DF36205
BILL TO: 1008362 SHIP TO:
PROMAC, INC. PROMAC, INC.
38 S GROVE AVE 33 5 GROVES AVE
ATTN ACCTS PAYABLE ATTN: STEVE KAISER
ELGIN, IL 60120-6404 ELGIN, IL 60120-6404
PHONE 8476958181 PO4 BUDGET QUOTE
QUOTE DATE SHIP VIA TERMS SLS RESALE NO
11/01/2000 NM NET 30 Days CALEB CAMP
EDC QTY ITEM NUMBER/ UNIT UNIT EXTENDED
•
CD ORD DESCRIPTION PRICE ?RICE
14754442 1 CIS-CISCO2621 EA 2, 319 . 00 2, 319. 00
CISCO 2621 DUAL 10/100 ENET
111362 1 CIS-WIC-IDSU-TI EA 776.00 776.00
CISCO 3600 1PT TI DSU/CSU-WAN Iz CAR
223363 1 CIS-CD26-CH-12.0. 7= HA 929.00 929.00
CISCO 2600 IP/c N FEATURE PH
150788 1 CIS-WS-C2924M-XL-EN EA 1, 319. 00 1, 819. 00
CISCO 2924 24PT 10/100 XL ENT SWITCH
SUB-TOTAL 5, 843.00
• SHIPPING 14 . 99
SALES TAX 511.26
•
TOTAL CUE IN U.S DOLLARS 6, 369.25
COW Computer Centers, Inc. * 200 North Milwaukee Avenue
Vernon Hills, IL 60061 * Phone: 847-465-6000 * Fax: 847-465-6800
1
•
KNet
Proposal & Contract for Service
iFor. Quotatl'on Information:
Name: Steve Kaiser Quote #: 10270003
Company: Promac
Address: 38 South Grove Ave. Terms: Net 30
Rep: Brian Clark
City/St/Zip: Elgin, iL 80123
Email: From: (630) 983
Phone: 847.895.8181 Fax: 847.695.8241 To: (847) 289
Code Product Number Product Oeseri ran Gib llnitPrice Oiscouat Eat Price Tax
Internet Service 5 Month Term
O XNet T1 Startup XNet T1 Startup Fee - Existing 1 - 100% -
M XNet 512K Monthly XNet 512 Kbps Monthly Fee 1 eso.oa 650.00
Telephone Circuit 5 Month Term
O Line T1 install Line T1 1.54 Mbps Installation Fee - Existing 1 - 100% - y
M Line T1 Monthly Line T1 1.54 Mbps Monthly Fee 1 630.00 630.00 Y
•
Administration
O XNet Admin Startup XNet Administration Fee - PER each tenant 2 100.00 200.00
M XNet Admin Monthly XNet Administration Fee - PER each tenant 2 100.00 200.00
—
Consulting —`--- - - - --�
O Hours Configuration of below equipment to facilitate 3 125.00 375.00
multi-tenant Internet services at Pro mac site
Equipment
E CiSCO2621 CISCO 2621 Dual Ethernet Router 1 3,095.00 20% 2,476.00 Y
E WiC-1DSU-T1 Fractional T1 DSU/CSU WAN Interface Card 1 1,000.00 20% 800.00 Y }�
E SF26CP-12.1 CISCO 2600 IP Plus Feature Pack Upgrade 1 700.00 20% 560.00 Y
E WS-C2924-XL-EN Cisco 24-Port 10/100 Ethernet Switch,Enterprise 1 1,995,00 20% 1,596.00 Y _
INTERNAL USE ONLY: . One Time Fee: $ 575.00
�j'� Monthly Fee: $ 1,480.00
Approved by: '€� (. —�_` 4 Equipment Cost: $ 5,432.00
•
Mates: •
This Internet service is provided as a shared usage model where ail tenants will This quote is not valid after 30 days. Tax
be able to burst to the specified bandwidth. XNet will maintain and support the charges:may apply. The right to correct
common router and switch element for each tenant under the agreement... service errors is reserved.
is provided at "face value" to meet each tenants needs. Billing will be determined Codes:
among the tenants based on their usage percentage and pro-rate portion of the 0 = One Time Fee
telco and Internet components. XNet will invoice Promac directly with line items M =Monthly Fee
to facilitate the ability to bill and collect from the other tenants. E = Equipment Cost
I hereby note that I am qualified to contract on behalf of the organization named Upon execution, please sign below and fax
above, and agree to pay the charges listed In this service agreement. i agree to and/or mail to the following address:
pay any additional charges and taxes that may be associated with the installation
'and monthly fees for the telephone circuit. I have read and understood all XNet Information Systems
submitted pages, and agree by the XNet terms and conditions. 3080 Ogden Ave, Suite 303
Lisle, IL 80532
Phone: 830-983-6064
Fax: 830-983-6879
Siemature: Date: • ' URL: www.xnet.com