08-221 Resolution No. 08-221
RESOLUTION
AUTHORIZING EXECUTION OF A DEVELOPMENT AGREEMENT WITH
SIEMENS ENERGY &AUTOMATION, INC.
FOR DEVELOPMENT AT 950 TOLLGATE ROAD
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that
Ed Schock, Mayor, and Diane Robertson, City Clerk, be and are hereby authorized and directed to
execute a Development Agreement on behalf of the City of Elgin with Siemens Energy &
Automation,Inc.for development at 950 Tollgate Road,a copy of which is attached hereto and made
a part hereof by reference.
s/Ed Schock
Ed Schock, Mayor
Presented: September 24, 2008
Adopted: September 24, 2008
Omnibus Vote: Yeas: 5 Nays: 0
Attest:
s/Diane Robertson
Diane Robertson, City Clerk
TOLLGATE ROAD
DEVELOPMENT AGREEMENT
This Agreement dated for reference purposes as July3) 2008, by and between the CITY
OF ELGIN, an Illinois municipal corporation (hereinafter referred to as the "City"), and
SIEMENS ENERGY & AUTOMATION, INC., a corporation organized and existing under the
laws of the State of Delaware and authorized to do business in the State of Illinois, (hereinafter
referred to as"Developer").
WITNESSETH
WHEREAS, Developer is the owner of the property commonly known as 950 Tollgate
Road, Elgin, Illinois 60123, where both the Developer's Mechanicals Drives Division, and its
affiliate Winergy Drive Systems Corporation, service and produce windmill turbines for
alternative energy suppliers, and provide other components and services for other industrial gear
boxes and mechanical drives (hereinafter referred to as the"Tollgate Road Facility"); and
WHEREAS, Developer is proposing to purchase equipment to be used to expand its
operations in the Tollgate Road Facility and
WHEREAS, the purchase of this equipment and the ensuing expansion of the Tollgate
Road Facility will allow the Developer to retain current Elgin employees and generating other
jobs over the next jobs over the next five (5) years; and
WHEREAS, the equipment to be purchased for the Tollgate Road Facility operations are
more particularly described in Economic Opportunity Wind Energy Development Grant Program
Application attached hereto as Exhibit A (the purchase of the specified equipment by the
Developer in Exhibit B is hereinafter referred to as the "Subject Equipment Purchase" and the
specified equipment, "Subject Equipment"); and
WHEREAS, the Developer has requested from the City certain economic development
assistance for the Subject Equipment Purchase as hereinafter described, and the State of Illinois
through its Department of Commerce and Economic Opportunity has indicated its willingness to
provide $150,000 in grant funds for this project; and
WHEREAS, it is unlikely that the Subject Equipment Purchase would occur in the
absence of the City's commitment to limited economic development assistance; and
WHEREAS, in order to provide for the continued development of the City including the
purchase of the Subject Equipment, the City has agreed to provide the Developer certain
development assistance for the Subject Equipment Purchase as hereinafter described; and
WHEREAS, the Subject Equipment Purchase will result in retaining a significant number
of jobs in the City, will result in attracting new jobs to the City and will result in increases in the
City's tax revenues and an increase in tax revenues to other local taxing districts; and
4
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, the Development Assistance as hereinafter described resulting in significant
increases in employment opportunities, significant increases in the City's tax base and spurring
additional development opportunities within the City 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. Developer at its cost shall make the Subject Equipment Purchase for the Tollgate
Road Facility in accordance with in Exhibit B hereto and in accordance with the Subject DCEO
Grant Agreement (hereinafter defined). The Subject Equipment Purchase shall conform in all
respects with the description of same herein, in Exhibit B and in the Subject DCEO Grant
Agreement. Except as otherwise provided in this Agreement or for funds provided through a
Wind Business Grant, all costs and expenses relating to the Subject Equipment Purchase shall be
the responsibility of and shall be paid for by the Developer.
3. The Developer shall place the purchase order for the Subject Equipment Purchase
no later than ninety (90) days following the date of this Agreement, and shall receive the
specified equipment at Tollgate Road Facility no later than December 31, 2009 (hereinafter
referred to as the "Completion Date"). In the event Developer requires any extension of the
Completion Date for the Subject Equipment Purchase, any such request shall be submitted to the
City in writing specifying the reasons for such an extension and the amount of additional time
being requested. Any agreement by the City to extend the Completion Date for the Subject
Equipment Purchase shall be at the sole discretion of the City Council of the City.
4. In consideration for Developer's the Subject Equipment Purchase and substantial
investment in the City of Elgin, the City agrees to provide economic development grants to the
Developer in the total amount of $150,000 to be used by the Developer solely and only for
purchase of the Subject Equipment. Such economic development grant shall be distributed to the
Developer as follows:
A. That in further consideration of the Developer's purchase of the Subject
Equipment, the City agrees to enter into the State of Illinois Department of Commerce and
Economic Opportunity Grant Agreement #08-203175, a copy of which is attached hereto as
Exhibit C (hereinafter referred to as the "Subject DCEO Grant Agreement"). Subject to the
Developer's compliance with all of the terms and requirements of the Subject DCEO Grant
Agreement, the City agrees to tender to Developer $150,000 of grant funds provided for therein
solely for the purchase of the Subject Equipment. Notwithstanding the foregoing, or anything
2
4 �
else to the contrary in this Agreement, the City's obligation to pay to the Developer the $150,000
of grant funds provided for in the Subject DCEO Grant Agreement is subject to and contingent
upon the City's receipt of such funds from the State of Illinois and the Developer's compliance
with all of the terms and requirements of the Subject DCEO Grant Agreement including, but not
limited to, adherence to the schedule as required therein.
5. That the parties understand and agree that the economic development assistance
being provided by the City to the Developer as set forth herein is expressly contingent upon
Developer's completing the Subject Equipment Purchase as set forth herein. In the event the
Developer fails to complete the Subject Equipment Purchase provided in this Agreement, the
parties understand and agree that the City will not be providing the Developer any economic and
development assistance pursuant to this Agreement or otherwise, and Developer shall promptly
reimburse the City in full any funds which may have previously been paid by the City pursuant
to this Agreement, and the City's obligation to provide the Developer by payment or otherwise
any economic development grant assistance shall be null and void.
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 hereunder shall be made in writing and
shall be deemed given if personally delivered or mailed by registered or certified mail, return
receipt requested, to the parties at the following addresses, or at such other addressed for a party
as shall be specified by like notice, and shall be deemed received on the date on which said hand
delivered or the second business day following the date on which so mailed:
TO THE CITY: TO THE DEVELOPER:
City of Elgin Siemens Energy and Automation
150 Dexter Court 950 Tollgate Road
Elgin, IL 60120-5555 Elgin,IL 60123
Attention: Raymond H. Moller Attention: Dan Weilandt
With a copy of any such notice to: With Required Copy To:
City of Elgin Siemens Corporation
186 Wood Avenue South
150 Dexter Court Iselin,New Jersey 08830-2770
Elgin, IL 60120-5555 Attn: Real Estate Counsel
Attention: William A. Cogley
Corporation Counsel
8. That the failure by aparty to enforce any provision of this agreement again
st 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.
3
x '
10. That this Development 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 the 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 in 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.
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 the parties hereto.
14. The City and Developer agree that, in the event of a default by the other party,the
other party shall, prior to taking any such actions as may be available to it, provide written notice
to the defaulting party stating that they are giving the defaulting party sixty (60) days within
which to cure such default. If the default shall not be cured within the sixty (60) days period
aforesaid, then the party giving such notice shall be permitted to avail itself of remedies to which
it may be entitled under this agreement.
15. If either party fails or refuses to carry out any of the material covenants or
obligations hereunder, the other party shall be entitled to pursue any and all available remedies as
specified herein or otherwise available at law, equity or otherwise. Notwithstanding the
foregoing or anything else to the contrary in this agreement, with the sole exception of an action
to recover the monies the City has agreed to pay pursuant to the preceding Paragraph 4 hereof,
no action shall be commenced by the Developer against the City for monetary damages. 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.
16. Time is of the essence of this Agreement.
17. This agreement shall be construed, and the rights and obligations of the City and
the Developer hereunder shall be determined in accordance with the laws of the State of Illinois
without reference to its conflict of laws rules.
18. Notwithstanding any other provisions of this Agreement, it is expressly agreed
and understood by the Developer and the City that in connection with the performance of this
Agreement and the Subject Equipment Purchase that Developer shall comply with all applicable
federal, state, city and other requirements of law.
4
.t
19. To the fullest extent permitted by law, Developer agrees to and shall indemnify,
defend and hold harmless, the City, its officials, officers, employees, attorneys, agents, boards
and commissions from and against any and all claims, suits, judgments, costs, attorney's fees,
damages or other relief, to the extent resulting from or arising out of negligent actions or
omissions of the Developer in connection with this agreement, including negligent acts or
omissions of employees, agents of the Developer arising out of the performance of this
agreement, or in any way resulting from or arising out of or alleged to be resulting from or
arising out of any violation and/or breach of the terms or provisions of this agreement by the
Developer, including any violation and/or breach by employees, agents of the Developer. In the
event of any action against the City, its officials, officers, employees, agents, attorneys, boards or
commissions covered by the foregoing duty to indemnify, defend and hold harmless such action
shall be defended by legal counsel of the Developer's choosing, subject to the City's approval,
the costs of which shall be paid by the Developer. The provisions of this paragraph shall survive
any termination and/or expiration of this agreement.
20. To the fullest extent permitted by law, Developer agrees to and shall indemnify,
defend and hold harmless the City, its officials, officers, employees, attorneys, agents, boards
and commissions, from and against any and all third party claims, suits, judgments, costs,
attorneys' fees, expert witness fees and expenses, damages or other relief, in any resulting from
or arising out of the City's execution of this agreement and the City's performance of this
agreement, and the development approvals provided by the City as provided for in this
agreement. In the event of any action against the City, its officials, officers, employees, agents,
attorneys, boards or commissions, covered by the foregoing duty to indemnify, and defend and
hold harmless, such action shall be defended by legal counsel of the Developer's choosing and
the costs of which will be paid for by the Developer. Additionally, in the event of such third
party action the Developer to the extent permitted by law shall upon the request of the City
attempt to intervene in such proceedings and join the City in the defense thereof.
21. Developer agrees to and shall provide to the City written reports on the status of
the Subject Equipment Purchase. Such written reports shall be provided to the City quarterly or
upon reasonable request of the City. Such written reports shall contain invoices and payment
receipts, and such other information with respect to the performance of the Developer's
obligations as may be reasonably requested by the City.
22. Developer on behalf of itself and its respective successors and assigns hereby
acknowledges the propriety, necessity and legality of all of the terms and provisions of this
agreement, and does hereby further agree and does waive any and all rights to any and all legal
or other challenges or defenses to contest the propriety, necessity and legality of any of the terms
and provisions of this agreement and hereby agrees and covenants on behalf of itself and its
successors, assigns and grantees of the Subject Property, not to sue the City or maintain any legal
action or other defenses against the City with respect to any challenges the propriety, necessity
and legality of any of the terms and provisions.
5
ti
IN WITNESS WHEREOF, the parties hereto have entered into and executed this
agreement on the date and year first written below.
CITY OF ELGIN, a municipal SIEMENS ENERGY AND AUTOMATION,
corporation INC.
By: By: Z/2bl)/
� ''
Mayor
Its W /3: 2 G� •vriy dv c.v
Date: Se e Tribe r. 0W-f, Q-008
? Gd
SIEMENS ENERGY AND AUTOMATION,
INC.
By:
Its YP coo 40 - P 6.0
Date: g° '-' Z2 r of
Attest:
City Clerk
B H L I B:603080.4\114706-00496
6
APPENDIX A
Illinois Department of Commerce and Economic Opportunity
Wind Energy Development Grant Program
Application Cover Page
Applicant Information:
Siemens Energy&Automation, Inc. 39-1280256
Applicant name FEIN(SSN if individual)
Corporate Address:
3333 Old Milton Road,Alpharetta GA 30005 Kane
Applicant address(include 9 digit zip code) County
PLEASE MAIL ALL CORRESPONDENCE TO:
950 Tollgate Road, Elgin, IL 60123 Kane
Project address(if different from above) County
847.531.7435 847.931.7752
Telephone number Fax number
Dan Weilandt Director, SE&A Mechanical Drives
Applicant project manager Title
dan.weilandt@siemens.com www2.sea.siemens.com
E-mail address Web site address
PLEASE MAIL ALL CORRESPONDENCE TO:
Siemens Energy&Automation With emailed copy to
950 Tollgate Road Grant Williams at:williamgs(a�millercanfield.com
Elgin,IL 60123
Attn:Dan Weilandt
Verification of Renewable Energy Resources and Coal Technology Development
Assistance Charge:
If the applicant's electric or gas utility is listed below and if the applicant is a current customer of
one of those utilities at the address indicated above, please provide a copy of a recent bill. If your
utility is not listed below, or if you are a customer at a different address, please attach a letter
from your utility stating that the applicant is serviced by an investor-owned/municipal gas or
electric utility of electric cooperative that imposes the Renewable Energy Resources and Coal
Technology Development Assistance Charge as defined in ILCS 687/6-1 et seq. The
Department will verify this information before issuing a grant to the applicant.
FOR GAS DISTRIBUTION FOR ELECTRIC DISTRIBUTION
Alliant-Interstate Ameren CILCO
Ameren CILCO Ameren CIPS
Ameren CIPS Ameren P
Ameren IP Ameren UE
Ameren UE Commonwealth Edison Company
EXHIBIT
American Energy Company Corn Belt Energy Cooperative
Consumers Gas Company Illinois Rural Electric Cooperative
Illinois Gas Company Interstate Power Company
Nicor Gas Company Jo-Carroll Energy
North Shore Gas Company Mid American Energy Company
South Beloit Water, Gas and Electricity Company Rural Electric Convenience Cooperative
The Peoples Gas, Light&Coke Company South Beloit Water, Gas and Electricity Company
United Cities Gas Company
APPENDIX A: (cont.)
System Information:
Please See Project escripti
D- on
Attached as Exhibit A
Type of Project:
❑Wind Energy Development—YES
Job Creation/Retention:
Jobs Directly Related to Project:Created: 355 Retained: 149 *
*Note that this project will support the construction of a new facility in Elgin which is where the vast
majority of the new jobs and some of the retained jobs will be located.
Organization Legal Status: CORPORATION
❑ Individual ❑ Not For Profit Corporation 0 Nonresident Alien
❑Sole Proprietor ❑Tax Exempt ❑ Medical Corporation
❑ Partnership/Legal Corporation ❑ Governmental ❑ Pharmacy-Noncorporate
❑Corporation ❑ Estate or Trust ❑ Pharmacy/Funeral
Home/Cemetery/Corporation
Legislative Districts For Project Address: (view http://www.elections.il.gov/DistrictLocator/)
US Representative:_14th_State Senate:_43rd_State Representative:_22nd_
Financing Information:
Total grant request $1,250,000
Total estimated energy production(MW)of the project per year
following the project commencement date (include calculations in
applications) MW—See Project Description
Total value of the Department support request divided by the
estimated energy production per year, as expressed in dollars per
megawatt or equivalent(include calculations in applications) $/MW--See Project Description
Total project cost $ 12,117,723
Total applicant investment(dollars) $ 10,717,723
Sum of financial partner investment(dollars) $–Not Applicable
Sum of other public funds $--Not Applicable
1,400,000(Wind Grant
+$150,000 grant)
APPENDIX A: (cont.)
Applicant Certifications:
Applicant hereby certifies that:
• All authorizations required to perform the project,described in its application, have either been
obtained or will be obtained no later than 180 days following the grant start date set forth in the
Notice of Grant Award issued by the Department.
• The project complies with all applicable state,federal, and local environmental and zoning laws,
ordinances,and regulations and that all required licenses,permits, etc., have either been
obtained or will be obtained no later than 180 days following a grant award by DCEO.
• It is not in violation of the prohibitions against bribery of any officer or employee of the state of
Illinois as set forth in 30 ILCS 505/10.1.
• It has not been barred from contracting with a unit of state or local government as a result of a
violation of Section 33E-3 or 33E-4 of the Criminal Code of 1961 (720 ILCS 5/33 E-3 and 5/33 E-
4).
• It is not in violation of the Educational Loan Default Act(5 ILCS 38513).
• As of the submittal date,the information provided in its application is accurate,and the individuals
signing below are authorized to submit this application.
(6g/d(/Plila,ii a67
Authorized Official(signature) Applicant Project Manager(signature)
Director, Mechanical Drives Division Dan Weilandt
Typed/Printed Name Typed/Printed Name
We/in h'/-7 yam�a v/GI/
Director,Mechanical Drives Division Director, Mechanical Drives Division
Title and Date Title and Date
/0 4/07. . 'OO /D 9�1^ 47005
APPENDIX B
Illinois Department of Commerce and Economic Opportunity
Wind Energy Development Grant Program
Documentation Outline
A brief:history of the applicant including its legal organization and,if applicable,adist:of
tt <board of dire r ..
Siemens AG:
Siemens AG, the parent company of Siemens Energy & Automation, Inc., and its
affiliates are leading the wind turbine manufacturers of the world, and have been involved in
some of the most challenging wind power projects from offshore sites to mountainous areas for
almost three decades.
Siemens Energy&Automation, Inc., (SE&A)
SE&A, (applicant for the Wind Energy Grant),provides products and services throughout
the US and North America for industrial, manufacturing and construction sectors through its
electrical, engineering and automation solutions. With a history of over 150 years of innovative
engineering, SE&A, employs more than 9800 engineers, designers, field service technicians and
diverse professionals while providing the world's largest and most respected companies with
integrated solutions, software, hardware and services meeting their needs in the following areas:
automation, CNC, gearboxes and couplings, MES, motion control, power distribution process
analytics, process automation & instrumentation, residential electrical, traffic management, and
wireless modules for cellular phones. The contemplated Project (defined below) would be
purchased by SE&A, for use by its Mechanical Drives Division and by Winergy Drive Systems
Corporation, a wholly owned subsidiary of SE&A. The following paragraphs describe both the
operations of the Mechanical Drives Division and of Winergy Drive Systems Corporation
("Winergy").
Mechanical Drives Division:
With the acquisition of Flender Corporation in 2006, SE&A strengthened its position as a
leading provider of complete industrial drive technology solutions offering the most
comprehensive drive system solutions in the wind energy and industrial marketplace. Its
products include an extensive line of gear reducers and couplings, gear motors, and open gearing
for a host of industrial applications, including mining, cement, metals, paper and petrochemical.
Throughout the US and North America, the Mechanical Drives Division services marine, wind
turbine, railway, and other industrial gears. It also provides services such as rebuilding its
customers equipment in SE&A's shops, providing technicians for on site repairs and
manufacturing complete drop-in replacement gear units.
Winergy Drive Systems Corporation:
For over 25 years, Winergy and its affiliate's operations have been supplying innovative
drive systems to the international wind power industry. Every second wind turbine installed
worldwide is equipped with at least one of Winergy's drive components. Drive systems, where
rotor torque is converted into electric energy, is the core of a wind turbine. And it is for that
system that Winergy's supplies its products and services to the US and North America. In fact,
Winergy is the only supplier of complete drive systems for wind turbines worldwide. Over the
last 25 years, Winergy and its affiliates have installed over 45,000 gearboxes and generators,
ranging from 400 kW to 5 MW. Winergy also provides components for such drive units
including gear units, couplings, generators, and inverters. Demand in the US and North America
for Winergy's drives continues to expand. In 2006, the United States broke its previous records
for the annual new installation of wind energy generating capacities with the installation of over
2,500 MW, raising the USA's capacity to generate wind turbine produced electricity to over
11,635 MW. The demand for wind energy turbines has only grown in 2007. Winergy will
continue to meet this demand by expanding its capacity to produce and service wind mill
turbines.
A.sumimary description•of the prba
oject including ckgrod�
unormation,locationy current
status and overall oblecttves _� A ��
SE&A is seeking assistance for its purchase of certain equipment listed in the Project
Description ("Project") necessary for the expansion of its operations at 950 Tollgate Road,
Elgin, IL 60123 ("Tollgate Road Facility") where both SE&A's Mechanical Drives Division
and its affiliate Winergy,service and produce wind mill turbines for alternative energy suppliers,
and provide other components and services for other industrial gear boxes and mechanical
drives. SE&A has explored, and has the option of, locating this project and the Randall Point
Project in Fort Madison/Keokuk, Iowa and in Kalamazoo, Michigan. It has received offers of
incentives packages each exceeding $15,000,000 to assist with location of the projects there.
In tandem with this project, SE&A will be constructing a new 170,481 square foot office
and production facility, through a 3'd party developer, in the Randall Point Business Park, Elgin,
Illinois, to be expanded later to a total of 330,000 square feet ("Randall Point Project"). This
new facility would allow SE&A to respond to its client's increasing demand for wind mill
turbines and other gear box and drive systems. In combination with the Randall Point Project,
SE&A and Winergy will retain the 149 current Elgin employees with average wages including
benefits of approximately $55,000 and anticipate generating another 355 jobs over the next five
years.
Background: With the explosion in demand for wind energy, and consequently wind
turbines, and the gear boxes, which are the heart of the wind turbines, SE&A made the decision
to expand its wind turbine gear box operations. It desires not only to assemble the wind turbine
gear boxes, but also to manufacture many of the components of those gear boxes and to increase
its service operations. Without the Project SE&A would not have the equipment necessary to
manufacture and prepare the components which will be used in these gear boxes.
Status: Currently, SE&A and Winergy have the premier state of the art carbonizing
oven for the heat treatment of gears to be used in the wind turbines. Their unique process creates
a hardened gear which allows it to transmit more power in a smaller space, essential to for a
wind turbine housed 200 feet up in the air. However, the vast majority of the components that
are used their wind turbines are manufactured elsewhere. This Project would provide the
equipment necessary for the expansion of both the heat treatment facility and the production of
other components used in the wind turbines, as well as gear boxes for other industrial uses at the
Tollgate Road Facility.
Structure of Purchase: SE&A will purchase the Project from third party vendors. The
equipment that comprises the Project will be installed within the Tollgate Road Facility. For
purposes of financing the transaction, after SE&A has purchased the equipment, it will then
transfer title of the equipment to its affiliate Siemens Financial Services, which is the financing
entity for all Siemens operating companies. Siemens Financial Services will then lease the
equipment back to SE&A.
Objective: The objective is for SE&A and Winergy to produce up to 50% of the
components, with state of the art gear grinding and heat treatment for its gear box assembly
occurring at its new facility in Randall Point Business Park.
A description of the proposed renewable energy system including the system size,
components and materials,estimated annual production, and any applicable calculations.
See Project Description Attached as Exhibit A
A brief description of the merits of the project per the evaluation criteria provided in
Section 4.3 of the application guidelines.
Overall quality of the application including measurable project goals,tasks and activities,
a well developed work plan, and easily identifiable deliverables.
As stated above, SE&A's has the premier heat treatment process for gears in the USA.
Demand for its products, currently, outpaces its ability to supply. SE&A has a long history of
quality manufacturing and meeting its customers demands on a global level. (See the following
websites:
http://www.flender.com/content manager/page.php?ID=36084&
dbc=4895e487cb0688539df4e1c10f820848
http://www.agma.org/AMJTemplate.cfm?Section=Home&CONT
ENTID=3 832&TEMPLATE=/CM/C ontentDi splay.cfm
http://www2.s ea.siemens.com/Industry+Solutions/Machine-
tools/Machine-Tools-Home.htm
http://www2.sea.siemens.com/Industry+S olutions/Metals/?langua
gecode=en
Likelihood of actual project development, potential to accomplish defined objectives,
technical feasibility, and replicability within the state of Illinois.
Detailed review and analysis for this project has been performed by SE&A global headquarters
in Germany. This project has received the approval from Germany's global corporate
headquarters, including the expenditures listed in this application. With the approval of this
grant,the equipment will be ordered in the month of May 2008.
Potential for the project to further encourage the utilization of renewable energy and
support economic development in the state of Illinois though job creation, business
development, and economic development.
Currently, the demand for wind energy is outpacing the ability of companies to supply the wind
turbines necessary to produce the wind generated electricity. As the Tollgate Road Facility is
equipped to manufacture more gears, the Randall Point Facility will be enabled to supply the
gear boxes for the wind turbines. With this greater local supply of turbines, a larger amount of
the demand will be met. This should result in the cost of the turbines (and thus costs for
producing wind powered electricity being reduced) and in both technological and design
improvements increasing efficiency in production of the turbines as well as the efficiency of
those turbines in producing electricity.
As stated before, this Project will provide SE&A and Winergy with the equipment necessary for
its expanded operations. Those expanded operations along with the Randall Point Project will
add an anticipated 355 jobs to the Elgin area over the next five years. SE&A anticipates
increasing its annual production hours of 86,000 to meet the internal demands of its expanded
operations. Without this Project, this increase in production hours, and thus the increase in
wages flowing into the Elgin area would not occur.
Cost-effectiveness through energy saved per grant dollar spent.
With the greater local supply of turbines, a larger amount of the demand for wind turbines will
be met. This should result in the cost of the turbines (and thus costs for producing wind powered
electricity being reduced) and in both technological and design improvements increasing
efficiency in production of the turbines as well as the efficiency of those turbines in producing
electricity.
Capability of the applicant including previous experience and additional professional
resources available.
See websites provided above
A description of the project budget identifying all costs eligible for grant reimbursement.
See Project Description Attached as Exhibit A
A detailed statement of work including tasks and deliverables.
See Project Description Attached as Exhibit A
A detailed timetable for project development including activities,deliverables and
applicable milestones if applicable.
(1) Machine Orders to be placed for Project in April, 2008
(2) Project to be delivered to Tollgate Road Facility during the months of May,2009 through
September,2009.
(3)Installation of the Project, (which is not to be deemed part of the Project, and for which no
funds provided by the State of Illinois will be used)to be complete by October, 2009.
A description of the pertinent experiences of the applicant and project participants and
additional professional resources and support available to the applicant.
See websites provided above
The name, address,license number, and proof of insurance of the renewable energy system.
installer
Not Applicable
APPENDIX C
Illinois Department of Commerce and Economic Opportunity
Wind Energy Development Grant Program
Proposed Project Costs
Summary: _
Total Applicant Contributions State Funding
Costs Investment From Other Requested
Sources
A. Purchase of Services:
Not Applicable
B. Equipment/Materials: $12,117,723 $10,717,723 $150,000 from $1,250,000
City of Elgin
Total: $12,117,723 $10,717,723 $150,000 $1,250,000
Percent of Total: 100% 88.45% 1.24% 10.32%
Purchase of Services: (For the installation of renewable energy generation equipment list all applicable costs for
design,construction, repair,or maintenance,and fees for legal,financial, or artistic services.All subcontracts must
be explained in detail, include the license number and address of the subcontractor,and be attached to the
end of this section.)
No installation of equipment purchased in this Project is included in this Project.
Equipment/Materials: (List all items of equipment to be purchases of greater than$100)
Annual Lease State Requested
Specific Machine Type Purchase Price Amount Funding
Hessap VDM 1200 ( 2 axis ) $1,916,115.00 $267,209.98 $250,000.00
CTX500 $367,620.00 $51,266.09
Liebherr LC800 $1,097,640.00 $153,070.33
Hofler HF 1250 $1,233,165.00 $171,969.84 $200,000.00
Hessap VDM 1200 (without
bore) $1,462,125.00 $203,899.24 $200,000.00
Fromag $364,011.00 $50,762.80
Hofler Rapid 800 $898,329.00 $125,275.61
Hofler Rapid 800 $898,329.00 $125,275.61
Hofler Rapid 1250 $1,080,834.00 $150,726.67 $200,000.00
Hofler Rapid 1250 $1,080,834.00 $150,726.67 $200,000.00
Klingelberg P 150 $1,015,680.00 $141,640.68 $200,000.00
Klingelberg P 100 $703,041.00 $98,041.91
A? t t. Fg t t s 1j A �, fita idn r = S, 'k M
APPENDIX C: (cont.)
Financial Partners and All Other Sources of Investment: (Specify in reasonable detail including phone
number,contact person and address.)
Total Investment
1. City of Elgin $150,000.00
Ray Moller
Director of Economic Development&Business
Services
City of Elgin
150 Dexter Court
Elgin IL 60120
Phone:(847)931-6749
Subtotal $150,000.00
Project Total $12,117,723.00
State Funds Requested $1,250,000.00
Attach additional budget pages if necessary.
Financial Partnerships and Other Investment Sources, Letter or Guidelines:
Provide letters from each financial partner or funding entity indicating the amount of their
support and the project commencement date expected for their partnership.
In the event of funding by private foundations or public sources, if such a letter is not yet
available, indicate the anticipated source (USDA program name, etc.) and supporting
documentation or guidelines for the anticipated source.
13HLIB:590877.1\I 14706-00496
Exhibit A
Project Description
ss .*B d# T. Af iz is5 w., ',i, , vn , a; -7,7,-§13,-,„r-,,,-,„'....„7„,,‘,,,,,,,,p _ � 3", °.:, 7. ,+`0 uJA
? t_i_
K^ "��`n'. nl�WOO.:.t ? P N�•i�`i al�nT� �F y� �� .,.�. �, j , �t i �+ M ��� �.
fr itt4.rr'-�k. �� i r'v.7.. v,'4�.�,t,45 I'''' ",, :.i Nis.vim' 4'!, ', -'t 'y4t rloi,• 's- t„,._.:--0-
n ' 1' ,. -a^' z ,� r 3 ,F_ y'v.r fr i+� a3�, � _ '-D ,+
�i V.4� � ���Pm f"''7 t�� •y�.i�? 'f� i� 1 ���"� �� �f r Lift-,144.,,1 A�ty�4 � we 1 y���- -4-'4''''-' t
,-0 t+l. ,.-040A,441 �' irev w-,na 3 Q., Al �Q d U:'6i 'o A .flf -'i' 10 Kt I j.,SSS .F,''t }k
PROJECT DESCRIPTION:
Purchase of the below listed equipment for manufacturing and heat treatment of gears to be used in the assembly
of wind energy turbines and for other industrial uses.
Package Production Specific Machine Annual Lease
No. Phase Technology/Use Type Purchase Price Amount
Vertical Turning
1 .0 rn (+Drill ) Hessap VDM 1200 ( 2 1,916,115 267,209.98
2 c°n E n Horzontal Turning CTX500 367,620 51,266.09
3 ° Gear cutting Liebherr LC800 1,097,640 153,070.33
4 Gear cutting Hofler HF 1250 1,233,165 171,969.84
P. Hessap VDM 1200
5 d CNC Vertical Turning ( without bore) 1,462,125 203,899.24
6 cD Key Seating Fromag 364,011 50,762.80
7 c Gear Grinding Hofler Rapid 800 898,329 125,275.61
7 Gear Grinding Hofler Rapid 800 898,329 125,275.61
8 ra Gear Grinding Hofler Rapid 1250 1,080,834 150,726.67
9 2 Gear Grinding Hofler Rapid 1250 1,080,834 150,726.67
10 o Gear Testing Klingelberg P 150 1,015,680 141,640.68
11 = Gear Testing Klingelberg P 100 703,041 98,041.91_
a' z
��'°� g�:fit .�: ... .,�_� �' �h..'��x._ .�,..
EXHIBIT B
SUBJECT EQUIPMENT
Hessap VDM 1200 ( 2 axis )
CTX500
Liebherr LC800
Hoffer HF 1250
Hessap VDM 1200 ( without
bore)
Fromag
Hofler Rapid 800
Hofler Rapid 800
Hofler Rapid 1250
Hofler Rapid 1250
Klingelberg P 150
Klingelberg P 100
Total
7
dceo
Illinois Department of Commerce and Economic Opportunity
Rod Blagojevich Jack Lavin
Governor Director
May 16, 2008
Mayor Edward Schock
Mayor
City of Elgin
150 Dexter CL
Elgin, IL 60120-5555
Dear Mayor Schock:
Enclosed please find Grant Agreement Number 08-203175 between your organization ("Grantee")
and the Illinois Department of Commerce and Economic Opportunity("Department"). Please re-
view the Agreement carefully to ensure that the Grantee's rights and responsibilities are clearly
understood. You are encouraged to have the Agreement reviewed by an attorney. In particular,
please note the following:
Beginning Date (Notice of Grant Award). Costs incurred prior to the specified beginning date are
not eligible for reimbursement, unless such costs have been identified in the Project Budget and
approved by the Department.
End Date(Notice of Grant Award). The Project must be completed by the stated end date. Mod-
ifications for scope of work changes or date extensions must be approved in writing by the De-
partment and processed prior to the stated end date.
Part II - Special Conditions. Part II requires specific acknowledgment by and acceptance of the
Grantee of all obligations set forth therein. The Grantee is expected to be thoroughly familiar with
the provisions of Part II, including requirements regarding the submittal of reports, authenticating
documents, etc.
If the terms of the Agreement are acceptable, please complete the following steps in order to
properly execute the Agreement:
• verify the Grantee's correct federal taxpayer identification number(FEIN) and correct le-
gal/business
status in the appropriate blanks on pages 1-2;
• have an authorized official of the Grantee execute page 2 of the Notice of Grant Award and
the acknowledgment set forth in Part II;
• make any necessary corrections to the Grantee's address; fill in the name, phone number,
and address (if different from the Grantee's address)for the administrator/project man-
ager; and
Internet Address http/Iwww.illinoisbitbiz
620 East Adams Street James R.Thompson Center 2309 West Main,Suite 118
Springfield,Illinois 62701-1615 100 West Randolph Street,Suite 3-400 Marion,Illinois 62959-1180
Chicago,Illinois 60601-3219
217/782-7500 312/814-7179 6181997-4394
1DD;800/785-6055 TOD:800/785-6055 EXHIBIT C TDD:800/785-6055
{
c please review Section 6.6 carefully and mark the statement with an "X" as it relates to
the Grantee.
if "Grantee Disclosures" are required by the Department, the disclosures must be com-
pleted, signed by an authorized official of the Grantee organization and returned with the
executed Grant Agreement.
The Grantee's ability to incur costs against the Grant as of the beginning date set forth in the No• •
tice of Grant Award is contingent upon the Grantee's acceptance of the terms and conditions as
set forth in the attached Agreement. The Department may elect not to execute the Agreement if
any of the terms are changed without the Department's prior approval, and the Grantee will be
responsible for any costs already incurred.
The Department may also elect not to execute the Grant Agreement if it determines that it is not
in the best interest of the State of Illinois to do so. Written notification of such a determination
and the basis therefore will be provided to the addressee of this letter in such event.
IMPORTANT INSTRUCTIONS: Please return the ENTIRE SIGNED ORIGINAL document to the
individual indicated in Exhibit 2 of the Grant Agreement. Please direct any questions concerning
the Agreement to the individual identified in Exhibit 2.
ADDITIONALLY, the forms to be utilized in preparing reports required by Part II of the Agree-
ment are also provided in this packet. Reports will not be accepted unless these forms are
used.
***IMPORTANT: IF YOUR ORGANIZATION HAS RECEIVED PRIOR DCEO GRANTS AND ALL REQUIRED REPORTS
HAVE NOT BEEN SUBMITTED AND APPROVED BY THE DEPARTMENT,THERE MAY BE A DELAY IN THE RELEASE OF
FUNDS FOR THIS GRANT.
You will be provided with a fully executed copy of the Agreement after it has been signed by the
Department's Director.
Sincerely,
9DIZ:ptit utifyLLA--)
JoLaine Miner
DCEO Grant Manager
Enclosure(s)
•
CHECKLIST
Before returning your signed grant agreement, please double•check the following items
to assure completion:
Verify the Grantee's correct federal taxpayer identification number (FEIN) on page
1 of the Notice of Grant Award.
Verify the Grantee's correct legal/business status in the appropriate blank on page
2 of the Notice of Grant Award.
The authorized official named on page 2 of the Notice of Grant Award must sign
the grant agreement. Provide date; print name and title of the authorized official.
(If you have any questions about who is authorized to sign, please call DCEO
before proceeding.) The same authorized official must sign the acknowledgment
on the last page of Part II.
Make any necessary corrections to the Grantee's address on page 2 of the Notice
of Grant Award.
Fill in the name, phone number, and address (if different from the Grantee's
address) for the administrator/project manager, on page 2 of the Notice of Grant
Award. The authorized official must also sign in this area if an administrator or
project manager is being designated. By doing so, the designated person will be
allowed to sign future grant correspondence and quarterly and final reports.
If the Grantee is not a government entity, the Reporting Requirements in Part II,
Section 2.5 (a) require that you provide "authenticating documentation" at the
time you return the grant agreement to DCEO. (If you have any questions about
what constitutes "authenticating documentation," please call DCEO before
proceeding.)
To reiterate, the same authorized official must sign the acknowledgment on the
last page of Part 11.
Review Part VI, Section 6.6 (Drugfree Workplace Act) carefully and mark the
statement with an "X" as it relates to the Grantee.
If quarterly reports are required in Part II, Section 2.5, reporting forms are
attached. Remove the reporting forms and retain them for your future use.
Return the signed Notice of Grant Award and Parts I through VI and Exhibit 1 to
your DCEO Contact:
.JoLaine Miner
Illinois Department of Commerce and Economic Opportunity
620 E. Adams
Springfield, IL 62701-1696
(217) 782-5295
STATE OF ILLINOIS
DEPARTMENT OF COMMERCE AND ECONOMIC OPPORTUNITY G
Notice of Grant Award No. 08-203175
MISCELLANEOUS STATE PROGRAMS
This Grant Agreement (hereinafter referred to as the "Agreement")
is entered into between the Illinois Department of Commerce and
Economic Opportunity (hereinafter referred to as the "Department" ) AND
City of Elgin
(hereinafter referred to as the "Grantee) " . Subject to terms and
conditions of this Agreement, the Department agrees to provide a
Grant in an amount not to exceed $150, 000 .00 to the Grantee.
Subject to the execution of this Agreement by both parties,
the Grantee is hereby authorized to incur costs against this
Agreement from the beginning date of 04/01/2008 through the ending
date of 03/31/2010, unless otherwise established within Part I •
Budget and/or Part III Scope of Work. The Grantee hereby agrees to use
the funds provided under the Agreement for the purposes set forth
herein and agrees to comply with all terms of the Agreement.
This Agreement includes the following sections, all of which are •
incorporated into and made part of this Agreement :
Part :
I . Budget
II . Special Grant Conditions
III . Scope of Work
IV. Program Terms and Conditions
V. General Provisions
VI . Required Certifications
Under penalties of perjury, the undersigned certifies that the name,
taxpayer information number and legal status listed below are correct .
If you are an individual, enter your name and SSN as it appears on your
Social Security Card. If completing this certification for a sole
proprietorship, enter the owner' s name followed by the name of the 1
business and the owner' s SSN. For all other entities, enter the name
of the entity (as used to apply for the entity' s EIN) and the EIN.
pH
Name: City of Elgin
Taxpayer Identification Number:
SSN/EIN: 366005862
05/16/2008 14 :23 :45 - 1 -
•
Legal Status (check one) :
Individual (01) Estate or Trust (10)
Sole Proprietor(02) - Pharmacy-Noncorporate (11)
Partnership/Legal Corporation(03)- Nonresident Alien(13)
Corporation(04) Pharmacy/Funeral Home/Cemetery
Not For Profit Corporation (04) Corporation(15)
Medical Corporation(06) Tax Exempt (16) :
Governmental (08)
The Grantee acknowledges that the individual signing below is authorized
to execute this Agreement and that such signature constitutes the
acceptance of this Agreement.
GRANTEE:
City of Elgin
By:
(Signature) Date
Print or Type Name and Title
STATE OF ILLINOIS DEPARTMENT OF COMMERCE AND ECONOMIC OPPORTUNITY
By:
Jack Lavin, Director Date
Grantee Address: Please indicate any changes below
150 DEXTER CT
Elgin, IL 60120-5527
Auth Signator: Ed Schock
Phone: (847) 931 - 5930
The following is designated as administrator for the Grantee:
Auth Signator:
Phone:
05/16/2008 14 :23 :45 - 2 -
•
PART I GRANT BUDGET ESTABLISHMENT
PROGRAM: MISCELLANEOUS STATE PROGRAMS
NAME OF APPLICANT/GRANTEE:
City of Elgin
APPLICATION GRANT NUMBER: 08-203175
PROJECT DURATION: BEGIN DATE: 04/01/2008 END DATE: 03/31/2010
SUMMARY OF PROJECT - BY BUDGET/COST CATEGORY
CURRENT NEW
COST APPROVED REQUESTED BUDGET
CAT. DESCRIPTION BUDGET AMOUNT AMOUNT
1003 PERSONNEL
1005 FRINGE BENEFITS
1007 TRAVEL
1009 EQUIPMENT- NON-CONSTR PROJECTS 150 , 000 . 00 150, 000 .00
1011 COMMODITIES/PRINTING/POSTAGE
1013 RENT/UTILITIES
1015 CONTRACTUAL/CONSULTANT
1017 AUDIT/ACCOUNTING/LEGAL
1019 TRAINING/CONFERENCES
1021 MARKETING/ADVERTISING/WEBSITE
1023 OTHER
1201 PLANS & SPECIFICATIONS
1203 ARCHITECTURAL/ENGINEERING FEES
1205 PRINTING (CONSTRUCTION DOCS)
1207 EQUIPMENT (CONSTR PROJECTS)
1209 LAND PURCHASE
1211 LABOR
1213 EXCAVATION
1215 WIRING/ELECTRICAL
1217 CONS^1R/RENOVATION MATERIALS
05-16-2008 14:23 :45
PART I GRANT BUDGET ESTABLISHMENT
PROGRAM: MISCELLANEOUS STATE PROGRAMS
NAME OF APPLICANT/GRANTEE:
City of Elgin
APPLICATION GRANT NUMBER: 08-203175
PROJECT DURATION: BEGIN DATE: 04/01/2008 END DATE : 03/31/2010
SUMMARY OF PROJECT - BY BUDGET/COST CATEGORY
CURRENT NEW
COST APPROVED REQUESTED BUDGET
CAT. DESCRIPTION BUDGET AMOUNT AMOUNT
1219 PAVING/CONCRETE/MASONRY
1221 CONSTRUCTION MAN. & OVERSIGNT
1223 MECHANICAL SYSTEMS
1225 SITE PREPARATION/DEMOLITION
1227 BUILDING/STRUCTURE PURCHASE '
1229 PLUMBING
1231 NEW CONSTR BID AS WHOLE
1233 OTHER CONSTRUCTION EXPENSES
1235 CONTINGENCY
ff
TOTAL PROJECT COSTS/BUDGET 150, 000 . 00 150, 000 . 00
05-16-2008 14 :23 :45
gC
PART
BUDGET
08-203175
City of Elgin _
ACTIVITIES COSTS
Equipment $150,000.00
TOTAL $150,000.00
PART II-Al
SPECIAL GRANT CONDITIONS
(GOVERNMENTAL ENTITIES)
(Advanced)
2.1 AUDIT REQUIREMENTS.
The Grantee is required to have an audit conducted as provided in Part V.
Section 5.4C, Audit Requirements. The audit must include a Revenue
(Receipt) and Expenditure Statement comparing budgeted amounts with
actual for this grant. The audit must also include a compliance component
which covers, at a minimum, the following items:
• did the Grantee complete the activities described in the Scope of Work (Part Ill)
within the Grant Term
• did the Grantee obtain prior written approvals from the Department for material
changes from the performance of the activities described in the Scope of Work (Part Ill)
• did the Grantee expend grant funds within the grant period specified in the Notice of
Grant Award
• did the Grantee adhere to the grant Budget (Part I); if not, variances should be
identified
• did the Grantee obtain prior written approvals from the Department for any material
variances in its expenditure of grant funds •
• did the Grantee adequately account for receipts and expenditures of grant funds
• if applicable, did the Grantee return grant funds to the Department in accordance
with the provisions of the Grant Agreement
• are amounts reported in the Grantee's close-out package traceable to its general
ledger
The Grantee is not required to have an audit conducted as a condition of this
Grant Agreement,- however, if the Grantee receives during the term of this
Grant Agreement (or has previously received), additional grants from the State
of Illinois for the project described in Part III hereof. the Department may
require the Grantee to have an audit conducted as provided in Part V, Section
5.4C(2)(iv) hereof.
- f
9
2.2 PROJECTS REQUIRING EXTERNAL SIGN-OFFS.
(a) Pursuant to applicable statute(s), this grant requires sign-off by the following
State agency(ies). The status of the sign-off is indicated as of the date the grant is sent -
to the Grantee for execution:
AGENCY SIGN-OFF SIGN-OFF
RECEIVED OUTSTANDING
Illinois Historic Preservation Agency _ X
Illinois Dept. of Agriculture
Illinois Dept. of Natural Resources
NONE APPLICABLE
While any external sign-off is outstanding, the provisions of Exhibit-1 8pply with respect
to the disbursement of funds under this grant.
NOTE: The fact that a sign-off has been received in no way relieves the Grantee of its
obligation to comply with any conditions or requirements conveyed by the applicable
agency(ies) in conjunction with the issuance of the sign-off for the project funded under
this Agreement.
(b) For projects subject to review by the Illinois Environmental Protection Agency, the
Grantee must, prior to construction, obtain a construction permit or "authorization to
construct" from the TEPA pursuant to the provisions of the Environmental Protection Act,
415 ILLS 5/1 et seq.
2.3 PAYMENT PROVISIONS; PRIOR INCURRED COSTS. The Department shall
authorize the State Comptroller's Office to disburse payment of the grant funds as
follows:
100 percent ( ON) of the grant award will be authorized for disbursement upon
the Department's execution of this Agreement. If the amount set forth herein is less than
100% of the grant award, the disbursement schedule for the balance of the grant award
is attached hereto as Exhibit 3.
If external sign-offs are indicated in Section 2.2, above, disbursement of grant funds
(whether advance or scheduled) are subject to the restrictions set forth in Exhibit 1.
Upon receipt of all required sign offs, the Department's Accounting Division will be
notified to disburse grant funds in accordance with the disbursement method indicated
herein.
Note: The Department reserves the right to adjust the disbursement schedule set forth
above. Reimbursement of costs incurred by the Grantee prior to the Beginning Date
specified in the Notice of Grant Award requires the approval of the Department. Such
costs must be clearly identified in Part I hereof.
2.4 PROJECT COMPLETION DATE. The Project Completion Date for this Grant is as
indicated below:
II
,/
j�, Notwithstanding the end date stated in the Notice of Grant Award. the project
f shall be deemed complete when all activities described in Part III hereof have
been fully performed and grant funds have been expended or legally obligates -
by the Grantee for such activities pursuant to Parts I and III hereof. Grantee
shall notify the Department of the Project Completion Date through the
submittal of a letter to the Grant manager stating the Project Completion Date.
The Project Completion Date for this Grant is the end date stated in the Notice
of Grant Award.
2.5 REPORTING REQUIREMENTS. In addition to any other documents specified in
this Agreement, the Grantee must submit the following reports and information in
accordance with the provisions hereof.
(a) Status/Expense Reports. Grantee shall submit status/expense reports as
indicated below. •
N,k Quarterly Expense Reports: The Grantee shall submit Quarterly Expense
Reports in the format provided by the Department. Reports shall be submitted
quarterly through the Project Completion Date, except where Grantee is
directed otherwise in the Close-out Package instructions.
(b) Close-out Package. The Close-out Package described in Section 5.4 hereof is due
45 days following the end date stated in the Notice of Grant Award. Grantee shall submit
the Close-out Package (consisting of a Final Status Report, a Final Expense Report, and a
Close-out Report) in the format provided by the Department. This package shall
summarize expenditure of the grant funds and activities completed during the grant
term. The Grantee's failure to comply with the Close-out requirements set forth herein
and in Section 5.4 shall be considered a material breach of the performance required by
this Agreement and may be the basis to initiate proceedings to recover all funds
disbursed to the Grantee.
(c) Additional Information. Upon request by the Department, the Grantee shall,
within 10 business days of its receipt of such a request, submit additional written reports
regarding the Project, including, but not limited to, materials sufficient to document
information provided by the Grantee.
(d) Submittal of Reports. Submittal of reports and. documentation required under
Section 2.5 should be submitted to the individual identified in Exhibit 2 hereto.
2.6 FUNDING LIMITATIONS/RESTRICTIONS. The Grantee hereby expressly
acknowledges and agrees to the following provisions:
(a) The grant awarded pursuant to this Agreement is a one-time award. The State is not
obligated to provide funding in subsequent State of Illinois fiscal years for the project
funded by this grant.
(b) Funding provided under this Agreement shall not be used to perform or to further the
performance of sectarian activities.
(c) Without the express written consent of the Department, no grant funds nor property
purchased with grant funds may be disbursed or conveyed respectively, to, on behalf of,
or for the benefit of, any registered lobbyist or family member of such lobbyist, as the
term is defined in the Lobbyist Registration Act (25 ILCS 170/1 etseq.).
2.7 OPPORTUNITIES FOR MINORITY, FEMALE AND DISABLED PERSONS. Grantee
shall use good faith efforts to recruit, develop and extend employment and contracting
opportunities to women, minorities, and disabled persons from funds received under this
grant. Nothing herein shall be deemed to modify or negate any requirement of the
Business Enterprise for Minorities, Females and Persons with Disabilities Act (30 ILCS
575/1) or any other provision of this Grant Agreement.
2.8 MULTIPLE GRANT AWARDS. If the Grantee was previously awarded a grant by
the Department to fund the project described in Part III hereof, the Department may, •
pursuant to Section 5.8(c), unilaterally revise Parts I and III of the previously executed
Grant Agreement to accurately reflect all project activities and the multiple funding
• sources therefor. If the Grantee receives additional grants to fund the project described
in Part III hereof subsequent to the execution of this Agreement, Parts I and III for said
grant(s) will be developed to reflect all project activities and the multiple funding sources
therefor.
2.9 FUNDING ACKNOWLEDGMENT. If requested by the Department, the Grantee
shall post signs at the project site or affix signs/decals to equipment purchased with
grant funds, which acknowledge the State as providing funds for the project. Signs not
provided by the Department must be approved by the Department prior to posting.
2.10 TERMINATION FOR CAUSE. Grantee's failure to comply with any of the terms set
forth in this Grant Agreement, shall be a sufficient basis to suspend or terminate this
Agreement and seek recovery of all grant funds disbursed to the Grantee. A failure to
comply with the terms of this Grant Agreement shall also be a sufficient basis to
suspend or terminate any other grant(s) issued to the Grantee by the Department and
to reject future grant requests for the Grantee.
2.11 FEDERAL, STATE AND LOCAL LAWS; TAX LIABILITIES; STATE AGENCY
DELINQUENCIES. The Grantee is required to comply with all federal, state and local
laws, including but not limited to the filing of any and all applicable tax returns. In the
event that a Grantee is delinquent in filing and/or paying any federal, state and/or local
taxes, the Department shall disburse grant funds only if the Grantee enters into an
installment payment agreement with said tax authority and remains in good standing
therewith. Grantee is required to tender a copy of any such installment payment
agreement to the Department. In no event may Grantee utilize grant funds to discharge
outstanding tax liabilities or other debts owed to any governmental unit. The execution
of this Grant Agreement by the Grantee is its certification that (i) it is current as to the
filing and payment of any federal, state and/or local taxes applicable to Grantee; and
•
(ii) it is not delinquent in its payment of moneys owed to any federal, state. or local
•
unit of government.
2.99 MANAGEMENT WAIVER. The parties agree that the Department may issue a
waiver of specific requirements of this Agreement after the term of the Agreement has
expired. These waivers are limited to requirements relating to the Grantee's compliance i.
with existing audit requirements in the Agreement, retention of interest earned by the
Grantee on grant funds, variances to budgetary line items, non-material changes to the
Scope of Work in Part III, and any other non-material changes to specific grant terms
that the Department determines are necessary to place the Grantee in administrative
compliance with the terms of this Agreement. A management waiver issued after the
term of the Agreement has expired will supersede the original requirements of this
Agreement that would normally require a modification of this Agreement to he executed.
THE UNDERSIGNED IS AUTHORIZED ON BEHALF OF GRANTEE TO, AND HEREBY DOES,
SPECIFICALLY ACKNOWLEDGE AND AGREE TO COMPLY WITH ALL SPECIAL GRANT
CONDITIONS REFERENCED HEREIN. - •
BY:
TITLE:
DATE:
E
t
•
tS4t'•
EXHIBIT 1
The Project described in Part III and funded under this Grant Agreement. is subject to
review by the external agency(ies) indicated in Section 2.2 hereof. Grantee must comply
with requirements established by said agency(ies) relative to their respective reviews.
Any requirements communicated to the Department shall be incorporated into this
Agreement as follows: (i) as an attachment to this Exhibit 1 at the time of grant
execution; or (ii) if received from the applicable agency(ies) subsequent to execution.
as an addendum to this Agreement. The Grantee is contractually obligated to comply
with such requirements.
Grantee is responsible for coordinating directly with the applicable external agency(ies)
relative to said reviews. Except as specifically provided below, the Department's
obligation to disburse funds under this Grant Agreement is contingent upon notification
by the applicable agency(ies) that all requirements applicable to the Project have been
satisfied. Upon receipt of said notification, disbursement of the grant funds shall be
authorized in accordance with the provisions of Section 2.3 hereof.
Prior to notification of compliance by the applicable external agency(ies), the Grantee
may request disbursement of funds only for the following purposes: administrative,
contractual, legal, engineering, or architectural costs incurred which are necessary to
allow for compliance by the Grantee of requirements established by the external
agency(ies). FUNDS WILL NOT BE DISBURSED FOR LAND ACQUISITION OR ANY TYPE
OF CONSTRUCTION OR OTHER ACTIVITY WHICH PHYSICALLY IMPACTS THE
PROJECT SITE PRIOR TO RECEIPT BY THE DEPARTMENT OF THE REQUIRED
NOTIFICATION FROM ALL APPLICABLE AGENCIES.
•
2e
PART Ill
SCOPE OF WORK
08-203175
City of Elgin
Section 1. Public Benefit
The Grantee is a governmental entity providing various services to residents within its
jurisdiction in Kane County. The Grantee will use Grant Funds to purchase machinery on
behalf of Siemens Energy & Automation's Mechanical Drives Division and its affiliate
Winergy currently located at 950 Tollgate Road in Elgin, Illinois. Siemens-Winergy
services and produces wind mill turbines for alternative energy suppliers, and provides
components and services for other industrial gear boxes and mechanical drives. The
majority of components used in the wind turbines are currently manufactured elsewhere.
Grant funds will enable the Grantee to support Siemens-Winergy's operations and plans
for expansion in Illinois. The company has explored, and has the option of, relocating
the current production facility and associated plans for expansion to Fort
Madison/Keokuk, Iowa and Kalamazoo, Michigan. The Grant funded purchase of
equipment will enable the company to expand its wind turbine gear box operations in
Elgin. In addition to the assembly of the wind turbine gear boxes Siemens-Winergy will
then be able to manufacture up to 50% of the components of those gear boxes on site
and thereby increase its service operations.
In tandem with this project Siemens Energy & Automation will construct a new office and
productions facility, via other funding sources and through a third-party developer, in the
Randall Point Business Park located south of Big Timber Road and west of Randall Road
in Elgin. This new facility would allow the company to respond to its clients' increasing
demand for wind mill turbines and other gear box and drive systems. As a result of this
project the company will retain 149 employees at the Tollgate Road facility; and
anticipates creating another 355 jobs over the next five years as the expansion moves
forward.
Completion of this project will benefit the public by expanding economic development
and retaining jobs within the Grantee's jurisdiction, and will continue production of wind
mill turbines and other gear box and drive systems within Illinois. t,
Section 2. Grant Tasks
2.1 The Grantee agrees to comply with the following:
(a) The Grantee shall utilize grant funds in accordance with Part I (Budget)to
complete the activities/performance described in Section 1, above. The Grantee
shall provide any additional funds, or secure commitments therefore, which are
necessary to complete the specified activities/performance during the grant term
set forth in the Notice of Grant Award.
PART III
SCOPE OF WORK
08-203175
City of Elgin
(b) The Grantee shall execute all agreements necessary to complete the
activities/performance described in Section 1, above, including, but not limited
to, purchase/sales contracts for real and/or personal property, leases,
easements, loans, financing agreements, grant agreements, operating
agreements, etc., during the grant term specified in the Notice of Grant Award.
(c) The Grantee shall obtain all authorization necessary to complete the
activities/performance described in Section 1, above, including, but not limited
to, municipal ordinances, permits, variances, other approvals, etc., during the
grant term specified in the Notice of Grant Award.
(d) The Grantee shall notify the Departmental grant manager in writing no later
than 10 days after it becomes aware of any events/circumstances that will result
in substantial delays or may substantially impair the Grantee's ability to complete
the activities/performance described in Section 1, above, during the grant term
specified in the Notice of Grant Award.
(e) The Grantee shall provide to the Department additional information relative
to its compliance with the provisions set forth in subsections (a) through (d),
above, pursuant to Part II, "Additional Information."
(f) In addition to the requirements of Part V, Section 5.4(A), the Grantee shall
maintain in its file, and make available to the Department upon request therefore,
copies of documentation, correspondence, agreements, etc., evidencing
compliance with the requirements of subsections (a) through (d), above.
2.2 Any equipment purchased with Grant funds provided hereunder shall only be used
for the purposes set forth above for the term of the grant.
2.3 The Grantee acknowledges and agrees that any funds provided under this
Agreement that are allocable personnel costs, fringe benefits, and/or contractual
services shall be limited to payment for the provision of services which are directly
related to the Scope of Work to be performed under this Agreement.
PART IV
TERMS AND CONDITIONS GOVERNING GRANT
(Governmental Entities)
_ F
4.1 APPLICABLE TIME LIMITATIONS.
(i) Completion of Performance. All activities described in Part Ill hereof, which, are
chargeable to grant funds provided by this Agreement, must be completed by the grant
period end date set forth in the Notice of Grant Award.
(ii) Expenditure of Grant Funds. All grant funds provided under this Agreement must
be expended or legally obligated by the grant end date set forth in the Notice of Grant
Award. Grant funds not expended by the grant end date must be returned to the
Department in accordance with directions provided by the Department.
4.2 INTEREST ON GRANT FUNDS. The Grantee may be allowed to retain interest
earned on grant funds awarded under this Agreement, provided that:
(i) All interest earned must be accounted for and reported to the Department in the
Grantee Close•Out Package described in Section 5.4(B) herein; and
(ii) Interest may only be expended for activities which are identified in Parts I and Ill
hereof.
4.3 REFUNDS TO THE DEPARTMENT. Any refunds (unliquidated grant balance,
interest earned on grant funds, or ineligible/improper grant expenditures) due the
Department shall be remitted by the Grantee upon demand and pursuant to instructions
issued by the Department.
•- i
4.4 BUDGET/SCOPE OF WORK MODIFICATIONS.
(i) Grant Budget (Part I). The Grantee must obtain prior written approval from the
Department for any expenditures which materially vary from the expenditures set forth in
Part I hereof. For purposes of this Agreement, "materially vary" means any variance
within the line items set forth in Part I which exceeds 10% of the amount established for
that line item or any line item added or substituted for a line item in Part I hereof.
(ii) Scope of Work (Part III). The Grantee must obtain prior written approval from the
Department before changing any of the activities specified in Part III which are
chargeable to this grant. Any revision to Part III which results in the performance of
activities by the Grantee which are inconsistent with the purpose set forth in' the
Appropriation authorizing the grant awarded under this Agreement are not permissible.
4.5 FISCAL RECORDING/REPORTING REQUIREMENTS. The Grantee is accountable
for all funds disbursed under this grant. The Grantee's financial management system
shall be structured to provide for accurate, current, and complete disclosure of the
expenditure of all funds provided under this Agreement. The Grantee sball.-maintain
effective control and accountability over all funds disbursed and equipment, property, or
other assets acquired with grant funds. The Grantee shall keep records sufficient tc
permit the tracing of funds to a level of expenditure adequate to insure that funds nave
been expended in accordance with the terms of this Agreement.
4.6 GRANT DELIVERABLES. The Grantee will submit the following Grant deliverables in
accordance with the Grant Agreement provisions referenced herein:
(i) Project Status and Expense Reports, if applicable (Section 2.5)
(ii) Financial Close-out Package (Section 5.4B); and
(iii) Audit (if applicable) (Section 2.1 and Section 5.4C).
4.7 PROCUREMENT OF CONSTRUCTION AND PROFESSIONAL SERVICESi
ACQUISITION OF EQUIPMENT OR LAND. The Grantee shall procure all construction
and professional services, and acquire land, equipment and materials financed in whole
or in part with grant funds provided hereunder, through written, contractual •
agreement(s), which specify the rights and obligations of both parties relevant to the
specified transaction.
4.8 DUE DILIGENCE IN EXPENDITURE OF FUNDS. Grantee shall ensure that grant
funds are expended in accordance with the following principles:
(i) Grant expenditures should be made in accordance with generally accepted sound
business practices, arms length bargaining, applicable Federal and State laws and
regulations, and the terms and conditions of this Agreement;
(ii) Grant expenditures should not exceed the amount which would be incurred by a
prudent person under the circumstances prevailing at the time the decision is made to
incur the costs; and
(iii) Grant expenditures should be consistent with generally accepted accounting
principles.
4.9 GRANT USE/ NON-SECULAR PURPOSE. No portion of the funds may be used to
promote or further non-secular purposes. Grant funds may not be used to advance the
religious mission of the institution in any way.
PART V
GENERAL PROVISIONS
5.1 GRANTEE REPRESENTATIONS AND WARRANTIES; GRANTEE GENERAL
COVENANTS 1
i
A. Grantee Representations and Warranties. In connection with the execution
and delivery of this Agreement, the Grantee makes the following
representations and warranties to the Department:
(1) that it has all requisite authority to carry on its business and to execute,
deliver and consummate the transactions contemplated by this
Aea
oa.r__a m_nt_;
(2) that its employees, agents and officials are competent to perform as
required under this Agreement;
•
(3) that it is the real party in interest to this Agreement and is not acting I
for or on behalf of an undisclosed party;
(4) that it has taken all necessary action under its governing documents to .
authorize the execution and performance of this Agreement under the
terms and conditions stated herein;
(5) that it has no public or private interest, direct or indirect, and shall not
acquire, directly or indirectly any such interest which does or may
conflict in any manner with the performance of the Grantee's services
and obligations under this agreement;
(6) that no member of any governing body or any officer, agent or
employee of the State, is employed by the Grantee or has a financial or
economic interest directly in this agreement or the compensation to be
paid hereunder except as may be permitted applicable statute,
regulation or ordinance;
(7) that there is no action, suit or proceeding at law or in equity pending,
nor to the best of Grantee's knowledge, threatened, against or affecting
the Grantee, before any court or before any governmental or
administrative agency, which will have a material adverse effect on the
performance required by this Agreement:
(8) that this agreement has been duly executed and delivered on behalf of
the Grantee and constitutes a legal, valid and binding obligation of the
Grantee, enforceable in accordance with its terms, except to the extent
that enforcement of any such terms may be limited by (a) applicable
bankruptcy, reorganization, debt arrangement, insolvency or other
similar laws generally affecting creditors' rights; or (b) judicial public
policy limitations upon the enforcement of certain remedies including
•
those which a court of equity may in its discretion decline to enforce:
and performance required under this Agreement:
(9) Grantee's execution of this Agreement shall serve as its attestation that -
Grantee has read, understands and agrees to all provisions of this
Agreement and to be bound thereby. Grantee further acknowledges
that the individual executing this agreement is authorized to do so on
the Grantee's behalf, and;
(10) Grantee certifies that it is not currently operating under or subject to
any cease and desist order, or subject to any informal or formal
regulatory action, and, to the best of Grantee's knowledge, that it is not
currently the subject of any investigation by any state or federal
regulatory, law enforcement or legal authority. Should it become the •
subject of an investigation by any state or federal regulatory, law
enforcement or legal authority, Grantee shall promptly notify the
Department of any such investigation. Grantee acknowledges that
should it later be subject to an cease and desist order, Memorandum of
Understanding, or found in violation pursuant to any regulatory action
or any court action or proceeding before any administrative agency,
that the Department is authorized to declare Grantee in default of this
Grant Agreement and suspend or terminate the Grant Agreement
pursuant to Section 5.6.
B. General Covenants. In connection with the execution and delivery of this
Agreement, the Grantee makes the following covenants to the Department,
which are in addition to any specific covenants contained in this Agreement:
(1) that it will use grant func;s only far the purposes set forth in the Budget
and Scope of Work, Parts I and III, respectively, of this Agreement;
(2) that all warranties and representations made by the Grantee in this
Agreement shall be true, accurate and complete for the term of the
Agreement;
(3) that it shall be subject to, obey and adhere to any and all federal, state
and local laws, statutes, ordinances, rules, regulations and executive
orders as are now or may be in effect during the term of this Agreement
which may be applicable to the Grantee;
(4) that it shall remain solvent and able to pay its debts as they mature. In
the event of bankruptcy filing by the Grantee, voluntary or involuntary,
the Department may decline to make any further payment, which may
otherwise be required under this Agreement;
(5) that it shall immediately notify the Department of any and all events or
actions which may materially adversely affect its ability to carry on its
. 4€
9
operations or perform any or all of its obligations under this Agreement:
and
(6) that it shall not enter into any other agreement or transaction which
would conflict with the performance of its duties hereunder.
5.2 SCOPE OF WORK
In consideration for the grant funds to be provided by the Department. the
Grantee agrees to perform the Project described in Part III (Scope of Work)
hereof, in accordance with the provisions of Part I (Budget) hereof, and to prepare
and submit to the Department the reports and other deliverables described in this
Agreement.
5.3 APPROPRIATION; NONAPPROPRIATION/INSUFFICIENT APPROPRIATION;
REDUCED FUNDING SOURCES/REVENUES
A. Appropriation. The Grantee is hereby given actual knowledge that pursuant
to the State Finance Act, 30 ILCS 105/30, payments under this grant are
contingent upon the existence of a valid appropriation therefore and that no
officer shall contract any indebtedness on behalf of the State, or assume to
bind the State in an amount in excess of the money appropriated, unless
expressly authorized by law.
B. Non-appropriation/Insufficient Appropriation. Payments pursuant to this
Agreement are subject to the availability of applicable federal and/or State
funding from the Department and their appropriation and authorized
expenditures under State law. The Department shall use its best efforts to
-ecure sufficient appropriations to fund this Agreement. However, the
Department's obligations hereunder shall cease immediately, without penalty
or further payment being required. if the Illinois General Assembly or federal fi
funding source fails to make an appropriation sufficient to pay such
obligation. The Department, at its sole discretion, shall determine whether
amounts appropriated are sufficient to continue its obligations under this
Agreement. Termination resulting from non-appropriation or insufficient
appropriation shall be in accordance with Section 5.6A(1) hereof. Any grant
is void by operation of law if the Department fails to obtain the requisite
appropriation to pay the grant in any year in which this Agreement is in
effect.
C. Reduced Funding Sources/Revenues. The Department reserves the right to
reduce the amount to be paid to Grantee under this Agreement if the
Department determines that it is in the best interest of the State of Illinois to
reduce its obligation under this Agreement as a result of the occurrence of
any of the following events during the term of the Agreement: (i) receipts
from revenues which provide the funding for this Agreement either fall
significantly short of anticipated levels, or significantly decrease,_or (ii) other
sources (external grants, contracts, awards, etc.) providing funds for this
•
3
•
Agreement are decreased or withdrawn. If such an event occurs, the
Department will notify the Grantee as soon as possible. if the Department
and Grantee are able to agree on a reduced compensation amount and a
corresponding reduced scope of services, the parties shall execute a grant
modification so stating. If the Department and Grantee are unable to agree
on the reduced compensation and reduced scope of services, the
Department shall terminate the Grant in accordance with the provisions of
Section 5.6A(2) herein.
5.4 RECORDS RETENTION AND ACCESS TO RECORDS; PROJECT CLOSE-OUT;
ACCOUNTING; AND AUDIT REQUIREMENTS
A. Records Retention. The Grantee is accountable for all funds received under
this Agreement and shall maintain, for a minimum of three (3)years
following the later of the expiration or termination of this Agreement, unless
the Department notifies the Grantee that a longer period prior to the
expiration of three years is required, adequate books, records, and •
supporting documents, including digital and electronic data. to verify the
amount, recipients and uses of all disbursements of funds passing in
conjunction with this Agreement. This Agreement and all books, records and
supporting documents related hereto shall be available for inspection and
audit by the Department, the Office of Inspector General, the Auditor General
of the State of Illinois, or any of their duly authorized representatives, and
the Grantee agrees to cooperate fully with any audit conducted by the
Auditor General or the Department. Grantee agrees to provide full access to
all relevant materials and to provide copies of same upon request. Failure to
maintain books, records and supporting documents required by this Section
5.4 shall establish a presumption in favor of the Department for the recovery
of any funds paid by the Department under this Agreement for which
adequate books, records and supporting documentation are not available to
support their purported disbursement.
If any of the services to be performed under this Agreement are
subcontracted and/or if subgrants are issued for the expenditure of funds
provided under this Agreement, the Grantee shall include in all such
subcontracts and subgrants, a provision that the Department, the Office of
Inspector General, and the Auditor General of the State of Illinois, or any of
their duly authorized representatives, will have full access to and the right to
examine any pertinent books, documents, papers and records of any such
subcontractor or subgrantee involving transactions related to this Agreement
.for a period of three (3) years from the later of the expiration or termination
of this Agreement, and any such subcontractor shall be governed by the
same requirements to which the Grantee is subject under this Agreement.
B. Grant Close-out
(1) Grant Close-out Report. In addition to any other reporting requirements
specified in this Agreement, the Grantee shall complete and submit a
x
1
final Grant Close-out Report on forms provided by the Department.
within time limits established by the Department, after the expiration or I
termination of this Agreement. The Grantee must report on the
expenditure of grant funds provided by the State, and if applicable, the
Grantee's required matching funds. The Grantee is responsible for E
taking the necessary steps to correct any deficiencies disclosed by such
e
Grant Close-out Report, including such action as the Department. based
on its review of the Grant Close-out Report. may direct.
(2) Grant Refunds. in accordance with the Illinois Grant Funds Recovery
Act, 30 ILCS 705/1, et seq., the Grantee must, within 45 days of the
earlier of the ending date specified in the Notice of Grant Award or
effective date of a termination of this Agreement, refund to the
Department, any balance of funds, which is not spent or not obligated
as of said date. 1
1
C. Audit Requirements. if required by Part II of this Grant Agreement, the •
Grantee shall be required to have an audit conducted in accordance with the
following terms:
(1) Federally Funded Grants.
I
a. Applicable Federal Requirements. If the Grantee is required to
have an audit conducted pursuant to the Single Audit Act of 1984,
as amended in 1996 ("Single Audit Act") and by the Office of
Management and Budget Circular A-133 ("OMB Circular A-133"),
then the audit shall be performed in accordance with these
provisions.
b. Grantee Shall Furnish Department with Copy of Audit. When the I
Grantee has an audit conducted pursuant to the requirements of I
the Single Audit Act and OMB Circular A•133, and an audit report 1
is:produced pursuant to such federal requirements. the Grantee
shall provide the Department with a copy of such audit report,
except in cases where the Grantee is not required by the Single
Audit Act or OMB Circular A-133 to distribute a copy of such audit
report to the Department.
c. Grantee To Send Department Copy of Audit Report or Reporting
Package within Specified Time Period. The Grantee shall send a
copy of the audit report, the data collection form and the t
appropriate reporting package, as provided for in the Single Audit
Act and OMB Circular A-133, to the Department within 30 days of
the Grantee's receipt of such audit report, but in no event later
than nine (9) months following the end of the period for which the
audit was performed. The Grantee shall send the audit report to
the Department at the following address: , _.
Illinois Department of Commerce and Economic Opportunity
Division of Audits
620 East Adams Street
Springfield, IL 62701
(2) State Funded Grants
a. State Audit Requirements
(i) The audit shall be conducted by a certified public accountant
that is licensed by the State of Illinois to conduct an audit in
accordance with Generally Accepted Auditing Standards.
(ii) Grant funds shall be included in the Grantee's annual audit,
unless the Department authorizes the Grantee to have a
grant-specific audit conducted.
•
(iii) Upon completion of an audit, an audit report shall be issued
and the Grantee shall provide the Department with a copy of
such audit report.
(iv) The Grantee shall provide the Department with a copy of an
audit report within 30 days of the Grantee's receipt of such
audit report, but in no event later than nine (9) months
following the end of the period for which the audit was
performed. The Grantee shall send the audit report to the
Department at the following address:
Illinois Dept. of Commerce & Economic Oppertunity
Division of Audits
620 East Adams Street
Springfield, IL 62701
•
5.5 DEFAULT AND REMEDIES. The occurrence of any of the following events, during •
the grant term, shall constitute a default:
(a) Grantee shall fail to observe or perform any covenant or agreement contained
in this Agreement, including the Exhibits hereto;
(b) Any representation, warranty, certificate or statement made by the Grantee in
this Agreement, including the Exhibits hereto, or in any certificate, report,
financial statement or other document delivered pursuant to this Agreement shall
prove to have been incorrect when made in any material respect;
(c) Grantee shall commence a voluntary case or other proceeding sef kiiig
liquidation, reorganization or other relief with respect to itself or its debts under
any bankruptcy, insolvency or other similar law now or hereafter in effect_or
seeking the appointment of a trustee, receiver, liquidator, custodian or other
}
fi
similar official of it or any substantial part of its property, or shall consent to any
such relief or to the appointment of or taking possession by any such official in ar
involuntary case or other proceeding commenced against it. or shall make a
general assignment for the benefit of creditors, or shall fail generally to pay its
debts as they become due, or shall take any corporate action to authorize any of
the foregoing;
(d) An involuntary case or other proceeding shall be commenced against the
Grantee seeking liquidation, reorganization or other relief with respect to it or its
debts under any bankruptcy, insolvency or other similar law now or hereafter in
effect or seeking the appointment of a trustee, receiver, liquidator, custodian or
other similar official of it or any substantial part of its property, and such
involuntary case or other proceedings shall remain undismissed and unstayed for
a period of 60 days; or an order for relief shall be entered against the Grantee
under the federal bankruptcy laws as now or hereby after in effect:
(e) The Grantee permanently ceases the conduct of active trade or business at
the location specified in Part Ill, Scope of Work for any reason, including, but not
limited to, fire or other casualty;
(f) Company fails to provide the Company Contribution, if applicable, as identified
in Part III. Scope of Work: - •
(g) Grantee defaults on a loan from a third party. Grantee shall provide the
Department with immediate notice upon making a determination that it will
default on a loan.
Grantee shall have 60 days from the date Department notifies it of the occurrence of a
default to cure the default to Department':; satisfaction. Grantee's failure to cure, or to
initiate a cure which is satisfactory to the Department, shall be a sufficient basis for the •
Department to terminate this Agreement and to direct Grantee to refund all funds
disbursed to it by the Department within 30 days of receipt of the notice of termination.
Grantee shall be responsible for the payment of interest at a rate equal to 12% per
annum for any amount of the grant funds which it has not refunded to the Department
beginning 30 days from the date the termination notice is sent by the Department and
continuing to the date that all grant funds are refunded by Grantee or recovered through
other legal processes available to the Department.
5.6 TERMINATION; SUSPENSION
A. This Agreement may be terminated as follows:
(1) Non-appropriation, Insufficient Appropriation. In the event of non-
appropriation or insufficient appropriation as described in Section 5.38
above, Grantee shall be paid for non-cancelable, allowable expenditures
incurred in the performance of authorized services under this _-
Agreement prior to the effective date of termination which shall be the
•
f4
if
date stated in the written termination notice provided to Grantee. The
Department shall provide such notice to Grantee as soon as possible
after it becomes aware of such non-appropriation or insufficient
appropriation. Any refunds due the Department shall be submitted in
accordance with the provisions of Section 5.4B(2) hereof.
(2) Reduced Funding Sources/Revenues. In the event the parties are
unable to agree on a reduced amount of compensation and scope of
services necessitated due to a reduction in revenues or other funding
sources for this Agreement as described in Section 5.3C above, Grantee
shall be paid for noncancelable, allowable expenditures incurred in the
performance of authorized services under this Agreement prior to the
effective date of termination which shall be the date stated in the
written termination notice provided to Grantee. Any refunds due the
Department shall be submitted in accordance with the provisions of
Section 5.4B(2) hereof.
(3) For Cause. if the Department determines that the Grantee has failed to
comply with any of the covenants, terms, conditions or provisions of
this Agreement, or any other application, proposal or grant award
• executed by the Department and the Grantee, including any applicable
rules or regulations, or has made a false representation or warranty in
• connection with the receipt of the grant, the Department may terminate
this Agreement in whole or in part at any time before the expiration
date of this Agreement. The Department shall notify the Grantee in
writing of the reasons for the termination and the effective date of the
termination. Grantee shall not incur any costs after the effective date of
the termination. Payments made to the Grantee or recovery by the
Department shall be in accord with the legal rights and liabilities of the
parties.
In the event of termination for cause, Grantee shall also be subject to
any other applicable provisions specified elsewhere in this Agreement.
Termination for cause may render the Grantee ineligible for
consideration for future grants from the Department for a period not to
exceed two (2) years.
(4) For Convenience. The Grantee acknowledges that this grant was made
by the Department based on its determination that the activities to be
funded under this Agreement are in furtherance of either the
Department's statutory requirements or its program objectives. The
Grantee further acknowledges that the Department may unilaterally
terminate this Agreement based on its good faith determination that the
continued expenditure of funds under this Agreement is no longer in
furtherance of said statutory requirements or program objectives.
Termination for convenience shall be effective upon delivery of notice to
Grantee pursuant to Section 5.11F hereof. The Grantee shall not incur
E•
new obligations after the effective date of the termination, and shall
cancel as many outstanding obligations as possible. The Department
shall allow full credit to the Grantee for properly incurred expenditures
made in connection with the Grant in accordance with the provisions of -
Part I (Budget) and Part III (Scope of Work). Grant refunds shall be
submitted in accordance with the provisions of Section 5.4B(2) hereof.
B. Suspension. If the Grantee fails to comply with the specific conditions
and/or general terms and conditions of this Agreement, the Department
may, upon written notice to the Grantee, suspend this Agreement. withhold
further payments and prohibit the Grantee from incurring additional
obligations of grant funds, pending corrective action by the Grantee or a
decision to terminate this Agreement. Department may determine to allow
such necessary and proper costs, which the Grantee could not reasonably I f
avoid during the period of suspension provided that the Department agrees
that such costs were necessary and reasonable and incurred in accordance
with the provisions of this Agreement.
5.7 INDEMNIFICATION.
A. Non-Governmental Entities. The Grantee agrees to assume all risk of loss
and to indemnify and hold the State, its officers, agents and employees,
harmless from and against any and all liabilities, demands, claims, suits,
losses, damages, causes of action, fines or judgments including costs,
attorneys' and witnesses' fees, and expenses incident thereto, relating to
bodily injuries to persons (including death) and for loss of, damage to, or
destruction of real and/or tangible personal property (including property of
the State) resulting from the negligence or misconduct of Grantee, its
employees, agents, or subcontractors or subgrantees in the performance ,.;#
this Agreement. Grantee shall do nothing to prejudice the State's right to
recover against third parties for any loss, destruction or damage to State
property and shall, at the State's request and expense, furnish to the State
reasonable assistance and cooperation including assistance in the
prosecution of suit and the execution of instruments of.assignment in favor
of the State in obtaining recovery.
The Grantee shall, at its expense, defend the State against all claims
asserted by any person that anything provided by Grantee infringes a patent,
copyright, trade secret or other intellectual property right and shall. without
limitation, pay the costs, damages and attorneys' fees awarded against the
State in any such action, or pay any settlement of such action or claim. Each
party agrees to notify the other promptly of any matters to which this
provision may apply and to cooperate with each other in connection with
such defense or settlement.
B. Governmental Entities. In the event that the Grantee is a Governmental
Entity, it will indemnify and hold harmless the Department as set,out.herein
fS/
tF
•
to the extent authorized by Federal and/or State constitutions(s) and/or
laws.
5.8 MODIFICATION BY OPERATION OF LAW; BUDGET MODIFICATIONS;
DISCRETIONARY MODIFICATIONS
A. Modifications by Operation of Law. This Agreement is subject to such
modifications as the Department determines may be required by changes in
Federal or State law or regulations applicable to this Agreement. Any such
required modification shall be incorporated into and become part of this
Agreement as if fully set forth herein. The Department shall timely notify the
Grantee of any pending implementation of or proposed amendment to such
regulations of which it has notice.
' 4
B. Budget Modifications. Budget modifications shall be made in accordance
with any applicable provisions as specified elsewhere in this Agreement.
•
C. Discretionary Modifications. If either the Department or the Grantee wishes
to modify the terms of this Agreement other than as set forth in Sections A
and B above, written notice of the proposed modification must be given to
the other party. Modifications will only take effect when agreed to in writing I
by both the Department and the Grantee. However, if the Department
notifies the Grantee in writing of a proposed modification, and the Grantee
fails to respond to that notification, in writing, within thirty (30) days, the
proposed modification will be deemed to have been approved by the
Grantee. In making an objection to the proposed modification, the Grantee
shall specify the reasons for the objection and the Department shall consider
those objections when evaluating whether to follow through with the
proposed modification. The Department's not:ce to the Grantee shall contain
the Grantee name, Grant number, modification number, purpose of the
revision and signature of the Department's Director.
D. Unilateral Modifications. The parties agree that the Department may
unilaterally modify this Agreement without prior approval of the Grantee
when the modification is initiated by the Department for the sole purpose of
increasing the Grantee's funding allocation as additional funds become
available for the grant during the program year covered by the term of this
Agreement. The parties further agree that the thirty (30) day period for
objection described in Section 5.8C above does not apply to the unilateral
modification authority described in Section 5.8D.
• ti
5.9 CONFLICT OF INTEREST; INTEREST OF PUBLIC OFFICIALS/ EMPLOYEES;
BONUS/COMMISSION PROHIBITED; HIRING OF STATE EMPLOYEES
PROHIBITED; DUE DILIGENCE IN EXPENDITURE OF FUNDS
A. Conflict of Interest. The Grantee shall establish safeguards to prohibit
officers, directors, agents, employees and family members from using
positions of employment for a purpose that is, or gives the appearance of,
being motivated by a desire for a private gain for themselves or others.
particularly those with whom they have family business or other ties.
Safeguards, evidenced by rules or bylaws, shall be established to pronibit
persons from engaging in actions, which create or which appear to create a
conflict of interest as described herein.
B. Interest of Public Officials/Employees.
(1) Governmental Entity. If the Grantee is a governmental entity. the
Grantee certifies that no officer or employee of the Grantee and no
member of its governing body and no other public official of the locality
in which the program objectives will be carried out who exercises any
functions or responsibilities in the review or approval of the undertaking
or carrying out of such objectives shall participate in any decision
relating to any contract negotiated under a program grant which affects
his/her personal interest or the interest of any corporation, partnership
or association in which he/she is directly or indirectly interested, or has -
any financial interest, direct or indirect, in such contract or in the work
to be performed under such contract.
(2) Nongovernmental Entity. If the Grantee is a nongovernmental entity,
such a financial interest is permissible provided full disclosure of said
interest is made to the Department in advance of any decisions relative
to the award of a contract giving rise to such interest and further
provided that the officer, employee, or member of the governing body
so affected shall remove himself or herself from the room during any
discussion, deliberation and voting in connection with the awarding of
such a contract and provided further that the Department determines,
writing, that the best interest of the State outweighs the cc.nflict of
interest issue.
Violations of this Section 5.9 may result in suspension or termination of
this Agreement, and recovery of grant funds provided hereunder.
Violators may also be criminally liable under other applicable State
and/or Federal laws and subject to actions up to and including felony
prosecution.
C. Bonus or Commission Prohibited. The Grantee shall not pay any bonus or
commission for the purpose of obtaining the grant awarded under this
Agreement.
D. Hiring State Employees Prohibited. No State officer or employee may be
hired to perform services under this Agreement, or be paid with funds
derived directly or indirectly through this grant without the written approval
of the Department.
E. Due Diligence in Expenditure of Funds. Grantee shall ensure that grant
funds are expended in accordance with the following principles: (i) grant
•
expenditures should be made in accordance with generally accepted sound.
business practices, arms-length bargaining. applicable federal and state laws
and regulations, and the terms and conditions of this Agreement: (ii) grant
expenditures should not exceed the amount which would be incurred by a
prudent person under the circumstances prevailing at the time the decision
is made to incur the costs; and (iii) grant expenditures should be consistent
with generally accepted accounting principles (GAAP).
5.10 APPLICABLE STATUTES
A. Grantee Responsibility. All applicable Federal, State and local laws. rules
and regulations governing the performance required by Grantee shall apply
to this Agreement and will be deemed to be included in this Agreement the
same as though written herein in full. Grantee is responsible for ensuring
compliance with all applicable laws, rules and regulations, including, but not
limited to those specifically referenced herein. Except where expressly
required by applicable laws and regulations, the Department shall not be •
responsible for monitoring Grantee's compliance.
B. Land Trust/Beneficial Interest Disclosure Act ( 765 ILCS 405/2.1). No
grant award funds shall be paid to any trustee of a land trust, or any .
beneficiary or beneficiaries of a land trust, for any purpose relating to the
land, which is the subject of such trust, any interest in such land,
improvements to such land or use of such land unless an affidavit is first i!
filed with the Department identifying each beneficiary of the land trust by 0
name and address and defining such interest therein.
C. Historic Preservation Act (20 ILCS 3420/1 et seq.). The Grantee will not
expend funds under this Agreement which result in the destruction,
alteration, renovation, transfer or sale, or utilization of a historic property,
structure or structures, or in the introduction of visual, audible or l
atmospheric elements to a historic property, structure or structures, which i
will result in the change in the character or use of any historic property,
except as approved by the Illinois Historic Preservation Agency.
D. State of Illinois Discrimination Laws (775 ILCS 5/1-101 et seq.). In
carrying out the performance required under this Agreement, the Grantee
shall comply with all applicable provisions of the Illinois Human Rights Act,
and rules and regulations promulgated by the Illinois Department of Human
Rights, prohibiting unlawful discrimination in employment. Grantee's failure
to comply with all applicable provisions of the Illinois Human Rights Act, or
applicable rules and regulations promulgated thereunder, may result in a
determination that Grantee is ineligible for future contracts or subcontracts
with the State of Illinois or any of its political subdivisions or municipal
corporations, and this Agreement may be canceled or voided in whole or in
part, and such other sanctions or penalties may be imposed or remedies
invoked as provided by statute or regulation. 3
•
E. Drugfree Workplace Act (30 1LCS 580/1 et seq.). Grantee will make the
certification required in this Agreement and will comply with all of the
provisions of the Drugfree Workplace Act that are applicable to the Grantee.
False certification or violation of the requirements of the Drugfree Workplace -
Act may result in sanctions including. but not limited to. suspension of grant
payments, termination of this Agreement and debarment of contracting or
grant opportunities with the State for at least one (1) year but not more than
five (5) years.
F. Freedom of Information Act (5 iLCS 140/1 et seq.). Applications,
programmatic reports and other information obtained by the Department
under this Agreement shall be administered pursuant to the Freedom of
Information Act.
G. Prevailing Wage Act (820 ILCS 130/0.01 et seq.). All projects for,the
construction of fixed works which are financed in whole or in part with funds
provided by this Agreement shall be subject to the Prevailing Wage Act (820
ILCS 130/0.01) unless the provisions of that Act exempt its application. In
the construction of the project, the Grantee shall comply with the
requirements of the Prevailing Wage Act, including, but not limited to,
inserting into all contracts for such construction a stipulation to the effect
that not less than the prevailing rate of wages as applicable to the project
shall be paid to all laborers, workers and mechanics performing work under
the contract and requiring all bonds of contractors to include a provision as
will guarantee the faithful performance of such prevailing wage clause as
provided by contract.
H. Victims Economic Security and Safety Act (P.A. 093-0591). If the Grantee
has 50 or more employees, it may not discharge or discriminate against an
employee who is a victim of domestic violence, or who has a family or
household member who is a victim of domestic violence, for taking up to a
total of twelve (12) work weeks of leave from work during any twelve month
period to address the domestic violence, pursuant to the Victims Economic
Security and Safety Act. The Grantee is not required to provide paid leave
under the Victims Economic Security and Safety Act, but may not suspend
group health plan benefits during the leave period. Any failure on behalf of
the Grantee to comply with all applicable provisions of the Victims Economic
Security and Safety Act, or applicable rules and regulations promulgated
thereunder, may result in a determination that the Grantee is ineligible for
future contracts or subcontracts with the State of Illinois or any of its
political subdivisions or municipal corporations, and this Agreement may be
cancelled or voided in whole or in part. and such other sanctions or penalties
may be imposed or remedies invoked, as provided by Statute or regulation.
i. Equal Pay Act of 2003 (P.A. 093-0006). If the Grantee has four or more
employees, it is prohibited by the Equal Pay Act of 2003 from paying
unequal wages to men and women for doing the same or substagtiaLlyy
similar work. Further, the Grantee is prohibited by the Equal Pay Act of
z
2003 from remedying violations of the Act by reducing the wages of other
employees or discriminating against any employee exercising his/her rights
under this Act. Any failure on behalf of the Grantee to comply with all
applicable provisions of the Equal Pay Act of 2003, or applicable rules and
regulations promulgated thereunder, may result in a determination that the
Grantee is ineligible for future contracts or subcontracts with the State of
Illinois or any of its political subdivisions or municipal corporations. and this
Agreement may be cancelled or voided in whole or in part. and such other
sanctions or penalties may be imposed or remedies invoked. as provided by
Statute or regulation.
J. Steel Products Procurement Act (30 ILCS 565 et al). The grantee, if j
applicable, hereby certifies that any steel products used or supplied in
accordance with this grant for a public works project shall be manufactured
or produced in the United States per the requirements of the Steel Products
Procurement Act (30 ILCS 565 et al).
•
5.11 MISCELLANEOUS PROVISIONS
A. Independence of Grantee Personnel. All technical, clerical, and other
personnel necessary for the performance required by this Agreement shall be _ I
employed by or contracted with Grantee, and shall in all respects be subject
to the rules and regulations of Grantee governing its employees. Neither
Grantee nor its personnel shall be considered to be the agents or employees
of the Department.
B. Grantor Authority. The Department and its payroll employees, when acting
pursuant to this Agreement, are acting as State officials in their official
capacity and not perscnally or as the agents of others.
C. Governing Law. This Grant is awarded in the State of Illinois for execution
within the State of Illinois. This Agreement shall be governed by and
construed according to Illinois law.
D. Worker's Compensation Insurance, Social Security, Retirement and Health
Insurance Benefits, and Taxes. The Grantee shall provide Worker's
Compensation insurance where the same is required and shall accept full
responsibility for the payment of unemployment insurance, premiums for
Workers' Compensation, Social Security and retirement and health insurance
benefits, as well as all income tax deduction and any other taxes or payroll
deductions required by law for its employees who are performing services
specified by this Agreement.
E. Delivery of Grantee Payments. Payment to the Grantee under this
Agreement shall be made payable in the name of the Grantee and sent to the
person and place specified in the Notice of Grant Award. The Grantee may
change the person to whom payments are sent, or the place to which.
payments are sent by written notice to the Department signed by the
.
ti _
Grantee, that complies with the requirements of Section 5.11F below. No
such change or payment notice shall be binding upon the Department untie
ten (10) business days after actual receipt.
F. Notice. Any notice, demand, or communication required or permitted to be
given hereunder shall be given in writing at the addresses set forth in the
Notice of Grant Award by any of the following means: (a) personal service.
(b) electronic communication, whether by telex, telegram or telecopy. (c)
overnight courier, or (d) registered or certified first class mail, postage
prepaid, return receipt requested. Any notice, demand or communication
given pursuant to either clause (a) or (b) hereof shall be deemed received
upon such personal service or upon dispatch by electronic means,
respectively. Any notice, demand or communication given pursuant to
clause (c) shall be deemed received on the day immediately following deposit
with the overnight courier. Any notice, demand or communication sent
pursuant to clause (d) shall be deemed received five (5) business days after
mailing. The parties, by notice given hereunder, may designate any further
or different addresses to which subsequent notices, demands or
communications shall be given.
The Grantee acknowledges and agrees that its address set forth in the Notice
of Grant Award is its current address and shall be considered its last known
address for purposes of receiving any and all notice(s) required under this
Grant Agreement. The Grantee further acknowledges and agrees that the
Department is justified in relying upon the address information furnished to
it by the Grantee in absence of notice to the contrary. The Grantee also
acknowledges and agrees that it has the burden of notifying the Department
of its current/last known address. In the event that the Grantee changes its
current address, it shall contact its Program Manager and notify him/her of
said change of address and a formal modification will be executed.
G. Waivers. A waiver of any condition of this Agreement must be requested in
writing. No waiver of any condition of this Agreement may be effective
unless in writing from and signed by the Director of the Department.
H. Assignment. The benefits of this Agreement and the rights, duties and
responsibilities of the Grantee under this Agreement may not be assigned (in
whole or in part) except with the express written approval of the Department
acting through its Director. Any assignment by the Grantee in violation of
this provision renders this Agreement voidable by the Department.
I. Severability Clause. If any provision under this Agreement or its application
to any person or circumstances is held invalid by any court of competent
jurisdiction, this invalidity does not affect any other provision or its
application of this Agreement, which can be given effect without the invalid
provision or application.
J. Integration Clause. This Agreement, with attachments, as written, is the ful'
and complete agreement between the parties and there are no oral
agreements or understandings between the parties other than what has been
reduced to writing herein.
K. Comptroller Filing Notice. The Grantee expressly understands that
whenever applicable, a copy of this Agreement and any modification,
cancellation or renewal is required to be filed by the Department with the
State Comptroller.
L. Subcontract and Grants. The Grantee's services, duties and responsibilities
specified herein shall not be subcontracted or subgranted by the Grantee
without prior written approval of the Department, unless such subcontracts
or subgrants are provided for elsewhere in this Agreement. Any subcontracts
or subgrants shall be subject to, and conform with, all applicable State and
Federal laws, and shall specifically provide that subcontractors or
subgrantees are subject to all of the terms and conditions of this Agreement.
For the Department to approve the use of any subcontract or subgrant, the
Grantee must employ an impartial and reasonable selection process.
M. Attorney Fees and Costs. If the Department is the prevailing party in any
proceeding to enforce the terms of this Agreement, the Department has the
right to recover reasonable attorney fees, costs and expenses associated with
recovering the funds.
•
4
PART VI
STATE OF ILLINOIS REQUIRED
CERTIFICATIONS
• i
The Grantee makes the following certifications as a condition of this Agreement.
These certifications are required by State statute and are in addition to any
certifications required by any Federal funding source as set forth in this Agreement.
Grantee's execution of this Agreement shall serve as its attestation that the
certifications made herein are true and correct.
6.1 COMPLIANCE WITH APPLICABLE LAW. The Grantee certifies that it shall comply
with all applicable provisions of Federal, State and local law in the performance of
its obligations pursuant to this Agreement.
6.2 CONFLICT OF INTEREST. The Grantee certifies that it has no public or private
interest, direct or indirect, and shall not acquire directly or indirectly any such
interest which does or may conflict in any manner with the performance of • ••
Grantee's services and obligations under this Agreement. •
6.3 BID-RIGGING/BID-ROTATING. The Grantee certifies that it has not been barred
from contracting with a unit of State or local government as a result of a violation
of Section 33E-3 or 33E-4 of the Criminal Code of 1961 (720 ILCS 5/33 E•3 and .
5/33 E-4).
6.4 DEFAULT ON EDUCATIONAL LOAN. The Grantee certifies that this Agreement is
not in violation of the Educational Loan Default Act (5 ILLS 385/3) prohibiting
certain contracts to individuals who are in default on an educational loan.
6.5 AMERICANS WITH DISABILITIES ACT. The Americans with Disabilities Act (ADA)
(42 U.S.C. 12101 et. seq.) and the regulations thereunder (28 CFR 35.130)
prohibit discrimination against persons with disabilities by the State, whether
directly or through contractual arrangements, in the provision of any aid, benefit
or service. As a condition of receiving this grant, the Grantee certifies that
services, programs and activities provided under this Agreement are, and will
continue to be, in compliance with the ADA.
6.6 DRUGFREE WORKPLACE ACT. The Grantee certifies that:
A) It is a Corporation, Partnership, or other entity (other than an
individual) with 24 or fewer employees at the time of execution of this
Agreement.
8) That the purpose of this grant is to fund solid waste reduction.
C) It is a Corporation, Partnership, or other entity (other than an
individual) with 25 or more employees at the time of execution of this
Agreement, or
D) That it is an individual.
If Option "A" or "B" is checked this Agreement is not subject to the requirements of
the Act.
If Option "C" or "D" is checked and the amount of this grant is five thousand dollars -
($5,000.00) or more, the Grantee is notified that the Drugfree Workplace Act (30
ILCS 580/1 et seq.) is applicable to this Agreement, and the Grantee must comply
with the terms of said Act, as set forth below:
Grantee will provide a drugfree workplace by:
(a) Publishing a statement:
(i) Notifying employees that the unlawful manufacture, distribution.
dispensing, possession or use of a controlled substance. including
cannabis, is prohibited in the Grantee's workplace.
(ii) Specifying the actions that will be taken against employees for
violations of such prohibition.
(iii) Notifying the employee that, as a condition of employment on such
grant, the employee will:
(A) abide by the terms of the statement: and
(B) notify the employer of any criminal drug statute conviction for
a violation occurring in the workplace no later than five (5)
days after such conviction.
!b) Establishing a drug free awareness program t:., inform employees about:
(i) the dangers of drug abuse in the workplace:
(ii) the Grantee's policy of maintaining a drug free workplace;
(iii) any available drug counseling, rehabilitation and employee
assistance programs; and
(iv) the penalties that may be imposed upon an employee for drug
violations.
(c) Providing a copy of the statement required by subparagraph (a) to each
employee engaged in the performance of the grant and to post the
statement in a prominent place in the workplace.
(d) Notifying the granting agency within ten (10) days after receiving notice,
under part (B) of paragraph (iii) of subsection (a) above, from an
employee or otherwise receiving actual notice of such conviction.
(e) Imposing a sanction on, or requiring the satisfactory participation in. a
drug abuse assistance or rehabilitation program by any employee who
is so convicted. as required by Section 5 of the Drugfree Workplace Act.
30 ILCS 580/5.
(f) Assisting employees in selecting a course of action in the event drug
counseling, treatment and rehabilitation are required and indicating
that a trained referral team is in place.
(g) Making a good faith effort to continue to maintain a drugfree workplace
through implementation of the Drugfree Workplace Act. 30 ILCS 580/5.
If Grantee is an individual, it certifies that it will not engage in the unlawful
manufacture, distribution, dispensation, possession, or use of a controlled
substance in the performance of this Agreement.
6.7 ANTI-BRIBERY. The Grantee certifies that neither it nor its employees have been
convicted of bribing or attempting to bribe an officer or employee of the State of
Illinois, nor has Grantee or any of its employees made an admission of guilt of
such conduct which is a matter of record as defined in the Illinois Procurement
Code (30 ILCS 500/50-5).
6.8 DISCRIMINATION/ILLINOIS HUMAN RIGHTS ACT. The Grantee certifies (i) that
it will not commit unlawful discrimination in employment in Illinois as that term is
defined in Article 2 of said Act; (ii) that it will comply with the provisions of Article
5 of the Act regarding equal employment opportunities and affirmative action;
and, (iii) that it will comply with policies and procedures established by the
Department of Human Rights under Article 7 of the Act regarding equal
employment opportunities 'nd affirmative action.
The Grantee further certifies that, if applicable, it will comply with "An Act to
prohibit discrimination and intimidation on account of race, creed, color, sex,
religion, physical or mental handicap unrelated to ability or national origin in
employment under contracts for public buildings or public works." (775 ILCS •
10/0.01 et seq.)
6.9 SEXUAL HARASSMENT. The Grantee certifies that it has written sexual
harassment policies that shall include, at a minimum, the following information:
(i) the illegality of sexual harassment; (ii) the definition of sexual harassment
under State law; (iii) a description of sexual harassment, utilizing examples; (iv)
the Grantee's internal complaint process including penalties; (v) the legal
recourse, investigative and complaint process available through the Department of
Human Rights and the Human Rights Commission; (vi) directions on how to
contact the Department and Commission; and (vii) protection against retaliation
as provided by Section 6-101 of the Illinois Human Rights Act (775 ILCS 5/2.105
(B)(5). A copy of the policies shall be provided to the Department upon request.
,.
•
•
6.10 INTERNATIONAL ANTI-BOYCOTT CERTIFICATION. The Grantee hereby certifies
that neither the Grantee nor any substantially owned affiliate company of the
Grantee is participating or will participate in an international boycott. as defined
by the provisions of the U.S: Export Administration Act of 1979. or as defined by
the regulations of the U.S. Department of Commerce, promulgated pursuant to
that Act (30 ILLS 582/1 et seq.).
6.11 FEDERAL. STATE AND LOCAL LAWS; TAX LIABILITIES; STATE AGENCY
DELINOUENCIES. The Grantee is required to comply with all federal, state and
local laws, including but not limited to the filing of any and all applicable tax
returns. In the event that a Grantee is delinquent in filing and/or paying any
federal, state and/or local taxes, the Department shall disburse grant funds only if
the Grantee enters irAo an installment payment agreement with said tax authority
and remains in good standing therewith.:Grantee is required to tender a copy.of
any such installment payment agreement to the Department. In no event may
Grantee utilize grant funds to discharge outstanding tax liabilities or other debts
owed to any governmental unit. The execution of this Grant Agreement by the
Grantee is its certification that (i) it is current as to the filing and payment of
any federal, state and/or local taxes applicable to Grantee; and (ii) it is not
delinquent in its payment of moneys owed to any federal, state, or local unit of
government.
6.12 PROHIBITION OF GOODS DERIVED FROM CHILD LABOR. The Grantee certifies,
in accordance with Public Act 94-0264, that no foreign-made equipment,
materials, or supplies furnished to the State in connection with this Agreement
have been produced in whole or in part by the labor of any child under the age of
12.
1
114 0
Date June 19, 2008 44,
NORTHWEST
TO: Mayor and Members of the City Council
FROM: Olufemi Folarin, City Manager
nott:ii(,ro!rrri i!F
Raymond H. Moller, Director of Economic Development
SUBJECT: Geographic Expansion of Elgin Enterprise Zone
PURPOSE
The purpose of this memorandum is to provide the Mayor and members of the City Council with
information to consider an expansion to the geographic area covered by the Elgin Enterprise
Zone.
RECOMMENDATION
It is recommended that the City Council approve an ordinance related to the expansion of the
Elgin Enterprise Zone.
BACKGROUND
Enterprise Zone is an area designated by the State of Illinois, upon application by the local
government, to receive various financial incentives for projects which promote economic
development and neighborhood revitalization. The City of Elgin applied for and received
certification for an Enterprise Zone in 1985 for a 10 year period. In 2004, the City received
approval for extending the term of the Enterprise Zone for an additional 10 years through 2015.
Currently the Elgin Enterprise Zone offers two incentives: waiver of both State and Local sales
tax on the sale of building materials for projects located within the established enterprise zone.
Materials may be used for new construction, remodeling or rehabilitation of structures (interior
or exterior) and must be purchased within the State of Illinois.
In addition, the City offers property tax abatement for the City's share of the property tax, which
is applied to the increase in the assessed valuation attributed to the new construction or
improvements. The property tax abatement provision is not being extended to the geographic
area being considered for enterprise zone expansion.
Since 1982, the City has adopted the following legislation relating to the Enterprise Zone:
1. December 22, 1982 — An ordinance designating an area within the City of Elgin
as an enterprise zone- G70-82.
/,
Geographic Expansion of Elgin Enterprise Zone
June 19, 2008
Page 2
2. December 17, 1984—An ordinance designating an enterprise zone—G63-84.
3. July 26, 1989 — An ordinance amending Ordinance No. G70-82. An addition of
territory to the original enterprise zone.
4. June 12, 1996—An ordinance authorizing the abatement of taxes within the Elgin
Enterprise Zone.
5. September 13, 1995 — An ordinance extending the term of the Elgin Enterprise
Zone through December 31, 2005.
6. June 27, 2001 — An ordinance adding territory to the Elgin Enterprise Zone
(Spalding and West Bartlett Road area—Ameren Development).
7. April 10, 2002 — an ordinance authorizing the abatement of taxes on property
within the enterprise zone (Ameren Development).
8. October 27, 2004 — An ordinance adding territory to the City of Elgin Enterprise
Zone (Route 20 TIF Area).
9. October 27, 2004—An ordinance extending the term of the Elgin Enterprise Zone
(12-31-2015).
10. October 27, 2004 — An ordinance amending Building Materials Sales Tax
Exemption of the Elgin Enterprise Zone.
11. October 27, 2004 — An ordinance Amending Ordinance S5-02 Authorizing the
Abatement of Taxes on Property within the Elgin Enterprise Zone.
The proposed ordinance adds territory to the Elgin Enterprise Zone. Staff has agreed to include
the new Siemens facility project area within an enterprise zone as part of a series of incentives
offered to Siemens to encourage the company to locate its new wind energy production facility
in the City of Elgin. Phase I of the Siemens project will see the construction of a 170,000 square
foot manufacturing facility. The facility is projected to expand to 330,000 square feet of
manufacturing space. A total of 355 new jobs are expected to be created.
Prior to the adoption of the above referenced ordinance, the City is required to hold a public
hearing regarding the enterprise zone's geographic extension. The public hearing will take place
on June 25 at the regularly scheduled City Council meeting.
In addition to expanding the enterprise zone to include the new development site for the Siemens
project, the City has applied for and received a grant in the amount of$150,000 from the Illinois
Department of Commerce and Economic Opportunity that will be used for the purchase of
equipment at the 950 Tollgate Road facility that is also operated by Siemens. Also, City staff
has agreed to recommend the award an incentive of$95,000 for 95 new jobs at the Randall Point
Property that will earn $40,000 or more per year in wages excluding benefit costs. Staff has also
proposed an incentive totaling $80,000 that may be applied to the cost of City fees or equipment
purchases.
V
Geographic Expansion of Elgin Enterprise Zone
June 19, 2008
Page 3
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
None
FINANCIAL IMPACT
The major impact of the application of the enterprise zone incentive is the loss of sales tax on
building materials related to the construction project for those building materials purchased
within the State of Illinois. For this project, the estimated maximum sales tax abatement would
equal $635,500.
Sales Tax Impact—State of Illinois - $492,000
Sales Tax Impact—City of Elgin - $143,500
LEGAL IMPACT
None
ALTERNATIVES
1. The City Council may choose to approve the proposed ordinance expanding the Elgin
Enterprise Zone.
2. The City Council may choose not to approve the proposed ordinance expanding the Elgin
Enterprise Zone.
Respectfully submitted for Council consideration.
RM