01-194 4.
s.
Resolution No . 01-194
RESOLUTION
AUTHORIZING EXECUTION OF A DEVELOPMENT AGREEMENT WITH
WANXIANG AMERICA CORPORATION FOR THE
DEVELOPMENT OF 88 AIRPORT ROAD
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Ed Schock, Mayor, and Dolonna Mecum, City Clerk,
be and are hereby authorized and directed to execute a
Development Agreement on behalf of the City of Elgin with
Wanxiang America Corporation for the development of an office and
automobile parts distribution facility at the property located at
88 Airport Road, a copy of which is attached hereto and made a
part hereof by reference.
s/ Ed Schock
Ed Schock, Mayor
Presented: July 11 , 2001
Adopted: July 11, 2001
Omnibus Vote : Yeas : 7 Nays : 0
Attest :
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
DEVELOPMENT AGREEMENT
This Development Agreement is made and entered into
this /A6( day of , 2001, by and between the
CITY OF ELGIN, an llinois municipal corporation (hereinafter
referred to as the "City" ) and Wanxiang America Corporation,
registered to do business in Illinois (hereinafter referred to
as "Developer") .
WITNESSETH
WHEREAS, Developer intends to develop the property
commonly known as 88 Airport Road, Elgin, Illinois and to
develop such property with an office and Automobile parts
distribution facility (such property being hereinafter referred
to as the "Subject Property" and such proposed development
being hereinafter referred to as the "Subject Development") ;
and
WHEREAS, Developer, after consultations and
negotiations with the City concerning certain development
assistance has determined to proceed with the Subject
Development of the Subject Property; and
WHEREAS, the Subject Development of the Subject
Property is currently estimated to represent a $9 million
dollar investment by the Developer resulting in the creation of
not less than 7 new full-time jobs within the next year and
projects not less than 18 new full-time jobs over the next
three years; and
WHEREAS, it is unlikely that the development of the
Subject Property will occur in the absence of limited economic
assistance; and
WHEREAS, the City providing development assistance to
Developer for the Subject Development will result in a
substantial increase in the City' s tax base and provide new and
additional employment opportunities in the City of Elgin; and
WHEREAS, in order to provide for the continued
development of the City including the development of the
Subject Property by the Developer with its Automotive parts
distribution facility the City has agreed to provide certain
development assistance as hereinafter described; and
WHEREAS, the City of Elgin is a home rule unit
authorized to exercise or perform any function relating to its
government and affairs; and
WHEREAS, economic development initiatives as provided
herein and resulting in significant increases in the City of
Elgin' s tax base and employment opportunities within the City
of Elgin 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 into
this agreement in their entirety.
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2 . That Developer shall develop the Subject Property
with a Automotive parts distribution facility according to the
site plan dated April 26, 2001, prepared by Cornerstone
Architects LTD. attached hereto as Exhibit A. Developer shall
complete all improvements for the Subject Development, occupy
same and commence operations at the Subject Property on or
before January 1, 2002 .
3 . That within one (1) year of the occupancy of the
Subject Development on the Subject Property the Developer shall
create not less than 7 new full-time jobs at the Subject
Development . Within three (3) years of Developer' s occupancy
of the Subject Development, Developer projects not less than 18
new full-time jobs at the Subject Development . Developer shall
use its best efforts to hire Elgin residents for all such jobs.
It is anticipated that the breakdown of the types of jobs that
Developer will provide at the Subject Development is as shown
in Exhibit B.
4 . That in consideration of Developer' s taking title
to the Subject Property, initiating the required physical
improvements on the Subject Property to complete the Subject
Development and providing for the creation of jobs as set forth
herein, the City agrees to provide the economic development
assistance to the Developer as set forth in this paragraph to
be used by Developer for costs associated with the Subject
Development on the Subject Property. Such economic development
assistance from the City to the Developer for the Subject
Development shall consist of the City paying to the Developer
the total sum of $110, 000 to be used by the Developer towards
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the costs of the Subject Development . The City shall pay
$110, 000 following the completion and acceptance of the
improvements to Airport Road, relocating underground an
electrical line located along the south property line and the
issuance of a certificate of occupancy for the Subject
Development at 88 Airport Road. Notwithstanding the foregoing,
said payment by the City shall not be made prior to January 1,
2002 .
5 . That the parties understand and agree that
the economic development assistance being provided by the City
to Developer as set forth herein is expressly contingent upon
Developer' s development of the Subject Development on the
Subject Property as set forth herein. In the event Developer
fails to complete, occupy and commence operations of the
Subject Development on the Subject Property on or before March
1, 2002 , and/or in the event Developer fails to provide for the
creation and establishment of jobs at the Subject Development
as required in the preceding Paragraph 3 hereof, the parties
understand and agree that the City will not be providing any
economic development assistance to Developer for the Subject
Development pursuant to this agreement or otherwise, and that
the Developer shall reimburse the City in full any funds
distributed to the Developer under the economic development
grants provided for the preceding Paragraph 4 hereof .
6 . That this agreement shall not be deemed or
construed to create an employment, joint venture, partnership,
or other agency relationship between the parties hereto.
7 . That all notices or other communications
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hereunder shall be made in writing and shall be deemed given if
personally delivered, sent by overnight courier or mailed by
registered or certified mail, return receipt requested, to the
parties at the following addresses, or at such other addresses
for a party as shall be specified by a like notice and shall be
deemed received on the date which said notice is hand delivered
or the second business day following the date on which so
mailed:
TO THE CITY: TO THE DEVELOPER:
City of Elgin Mr. Gary Wetzel
150 Dexter Court 1226 N. Michael Drive
Elgin, IL 60120-5555 Suite B-i
Attention: City Manager Wood Dale, IL 60191
8 . That the failure by a party to enforce any
provision of this agreement against the other party shall not
be deemed a waiver of the right to do so thereafter.
9 . That this agreement may be modified or amended
only in writing signed by both parties hereto, or their
permitted successors or assigns, as the case may be.
10 . That this agreement contains the entire agreement
and understanding of the parties hereto with respect to the
subject matter as set forth herein, all prior agreements and
understandings having been merged herein and extinguished
hereby.
11 . That this agreement is and shall be deemed and
construed to be a joint and collective work product of the City
and Developer and, as such, this agreement shall not be
construed against the other party, as the otherwise purported
drafter of same, by any court of competent jurisdiction and in
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order to resolve any inconsistency, ambiguity, vagueness or
conflict, if any, in the terms or provisions contained herein.
12 . That this agreement is subject to and shall be
governed by the laws of the State of Illinois . Venue for the
resolution of any disputes or the enforcement of any rights
pursuant to this agreement shall be in the Circuit Court of
Kane County, Illinois .
13 . That this agreement shall be binding on the
parties hereto and their respective successors and permitted
assigns. This agreement and the obligations herein may not be
assigned without the express written consent of each of the
parties hereto which consent may be withheld at the sole
discretion of either of the parties hereto.
14 . That upon Developer ' s compliance with the
requirements of the preceding Paragraphs 2 and 3 hereof,
Developer shall provide the City reasonable data and records
of Developer which documents Developer' s compliance with the
requirements of the preceding Paragraphs 2 and 3 hereof.
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 Wanxiang America Corporation
corporation
By By4 /aiii
Ed Schock, Mayor Nac..�
Title aeA
Attest:
Dolonna Mecum, City Clerk
elf e-eAL
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WANXIANG CORPORATION
1226 N. Michael Drive, Suite B-1,Wood Dale, ILAMERICA 60191, TEL: (630)595-8888, FAX: (630)595-9088
QS9000
CERTIFIED
April 22, 2001
Mr. Raymond H. Moller
Director of Economic Development
City of Elgin
150 Dexter Court
Elgin, IL 60120-5610
Dear Mr. Moller,
As we have discussed, Wanxiang America Corporation will appreciate any incentives or
assistance The City of Elgin can grant us to help ease the cost of a possible relocation of our
company to Elgin. Please consider the following requests:
Request forJob Credits: The following positions fit within the parameters that we have
discussed (permanent positions with compensation in excess of $50,000 per year):
No. Of Positions Additions During Additions During Additions During
Job Title Moving to Elgin First Year Second Year Third Year
President 1
COO 1
General Manager 1
Sales&Marketing 2 2 1 1
Whse Supervisor 1
Cust Support Spec 2 1 1 1
Design Engineer 2 2 2 2
Sales Engineer 2 2 2 1
Total................ 12 7 6 5
Request for Assistance with Improvements to Roadway: Airport Road will have to be
appropriately expanded and with curbs and gutters. The expansion will require 576 linear feet
of new roadway to run the length of the proposed site. Cost for this project will be $84,240.00.
This is a serious cost but the resulting improvement will be of benefit to the company and
community.
Ray, please consider the above requests and any other possible assistance the city might be
willing to provide...We are very impressed with Elgin and sincerely believe that relocation to
your area could be positive and productive for both the company and the city's business
community. Please let us know the city's response to these requests as soon as possible so
that we might include it in our plans.
Sincerely,
Jail/ d
Gary E. Wetzel
Chief Operating Officer
Exhibit B
Co oodLL
City of Elgin Agenda Item No.
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June 8, 2001
TO: Mayor and Members of the City Council
ECONOMIC GROWTH
FROM: Joyce A. Parker, City Manager
SUBJECT: Development Agreement/Wanxiang America Corporation
PURPOSE
The purpose of this memorandum is to provide the Mayor and members
of the City Council with information to consider a Development
Agreement between the Wanxiang America Corporation and the City of
Elgin.
BACKGROUND
em. In mid April of this year, the Mayor, City Council representatives,
Chamber of Commerce and City Staff met with Mayor Zhengero Lin of
the City of Xiaoshan and Mr. Pin Ni and officers of the Wanxiang
America Corporation.
The Wanxiang Group Company was authorized in 1990 to operate
independently. At the time, most enterprise in China was required
to operate under the direction and control of local and provencial
governmental authority. In 1995, Wanxiang Group was declared by
the Ministry of Agriculture as one of China' s leading township
enterprises . In 1997, it was ranked by the State Council as one of
China' s top 120 Groups. Wanxiang Group' s operating capital exceeds
$850 million U. S. dollars and employs more than 7 , 000 people at its
55 enterprises. The enterprises cover a broad range of activities,
including manufacturing, agriculture and services .
In 1994, the Wanxiang America Corporation was established. The
project proposed for 88 Airport Road would house corporate offices
for the Wanxiang America Corporation as well as a distribution
facility for automotive parts . Wanxiang is on of the largest
automotive parts makers in China.
At the meeting in April with Mayor Lin and Mr. Pin Ni and a
subsequent letter from Mr. Gary Wetzel of Wanxiang America
Corporation, the subject of development incentives was raised.
, .
rh. Wanxiang Development Agreement
June 8, 2001
Page 2
Following a review of the Airport Road project, staff is
recommending that an incentive package of $100, 000 be structured
for the Wanxiang development on Airport Road. Wanxiang is
investing $9 million dollars in the project . A 165, 888 square foot
office and warehouse facility will be constructed on a ten-acre
site.
In addition to the investment, 12 jobs with salaries exceeding
$50, 000, will relocate to Elgin when the facility opens and seven
jobs with similar salaries will be created within a 12 month
period. The $100, 000 incentive would be applied toward the cost of
improving Airport Road.
The City will pay the $100, 000 following the completion and
acceptance of the improvements to Airport Road and the issuance of
a certificate of occupancy for the property at 88 Airport Road. In
addition, the payment by the City will not be made prior to January
1, 2002 .
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
r
Elgin Area Chamber of Commerce and City of Elgin Development Review
Team.
FINANCIAL IMPACT
The incentive will total $100, 000 and will be charged to account
number 276-0000-791 . 80-27 . The expenditure will be included in the
2002 budget .
54)EGAL IMPACT
s
None.
ALTERNATIVES
1 . Fund the proposed incentive program.
2 . Do not fund the proposed incentive program.
Wanxiang Development Agreement
June 8, 2001
Page 3
RECOMMENDATION
It is recommended that the City Council approve the proposed
development incentive with Wanxiang America Corporation for the
development at 88 Airport Road.
Res ectfully submitted,
Jo'tce A. Parker
City Manager
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