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Resolution No. 12-13
RESOLUTION
AUTHORIZING EXECUTION OF AN ECONOMIC INCENTIVE AGREEMENT
WITH BYSTRONIC, INC.
(200 Airport Road)
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that
David J. Kaptain, Mayor, and Kimberly A. Dewis, City Clerk, be and are hereby authorized and
directed to execute an Economic Incentive Agreement with Bystronic, Inc. on behalf of the City of
Elgin for economic development assistance in connection with the development of 200 Airport
Road, a copy of which is attached hereto and made a part hereof by reference.
s/David J. Kaptain
David J. Kaptain, Mayor
Presented: January 11, 2012
Adopted: January 11, 2012
Vote: Yeas: 5 Nays: 1
Attest:
s/Kimberly Dewis
Kimberly Dewis, City Clerk
al -w
ECONOMIC INCENTIVE AGREEMENT
This Economic Incentive Agreement (the "Agreement") is made and entered into
as of this 11th day of January 2012, by and between the City of Elgin, an Illinois munici-
pal corporation (hereinafter referred to as the "City"), and Bystronic, Inc., a New York
corporation ("Bystronic").
WHEREAS, Bystronic is Swiss company that is an active worldwide supplier of
high-quality machines and systems for the economical processing of sheet metal and
other flat materials including application-oriented solutions and services for laser cutting,
waterjet cutting as well as bending, and:
WHEREAS, Bystronic is a leading global supplier of laser cutting, waterjet cut-
ting, press brake systems and system software for industrial applications, and;
WHEREAS, Bystronic has approximately one hundred employees and sales and
training facilities located throughout the United States, Canada and Mexico, Bystronic
supplies customer-oriented solutions specially designed to handle the challenges in to-
day's competitive manufacturing environment, and;
WHEREAS, Bystronic is establishing its United States headquarters in Elgin at
200 Airport Road, including marketing, sales, training and administrative operations
("Subject Project"), and;
WHEREAS, Bystronic's headquarters will be creating 25 new jobs with plans to
have 40 new jobs by 2015; and;
WHEREAS, Bystronic would not have been inclined to proceed with the construc-
tion of its U.S. headquarters in Elgin without certain economic development assistance
from the City; and
WHEREAS, section 8-11-20 of the Illinois Municipal Code (65 ILCS 5/8-11-20)
authorizes municipalities including the City to enter into economic incentive agreements
relating to the development or redevelopment of lands within the corporate limits of a
municipality; and
WHEREAS, the City is a home rule unit authorized to exercise any power and
perform any function relating to its government and affairs;
WHEREAS, economic incentive agreements including the economic incentive
agreement as provided for in this agreement pertain to the government and affairs of
the City; and
WHEREAS, the real property for the Subject Project has remained vacant for at
least one (1) year before construction; and
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WHEREAS, the Subject Project is expected to create job opportunities within the
City; and
WHEREAS, the Subject Project will serve to further the development of adjacent
areas; and
WHEREAS, Bystronic meets high standards of credit worthiness and financial
strength; and
WHEREAS, the Subject Project will strengthen the commercial and industrial
sector of the City; and
WHEREAS, the Subject Project will enhance the tax base of the City; and
WHEREAS, this agreement is made in the best interests of the City.
NOW, THEREFORE, for and in consideration of the mutual promises and under-
takings contained herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1. Recitals. The foregoing recitals are incorporated into this Agreement in their
entirety.
2. Subject Project.
A. Bystronic, at its cost, shall develop the Subject Project. The development of
the Subject Project shall conform in all respects with all applicable legal requirements,
including, but not limited to, city ordinances and codes, the terms of this Agreement, or
as otherwise directed by the City as is necessary to comply with ordinances, building
codes or other requirements of law. Except as otherwise provided in this Agreement, all
costs and expenses relating to the Subject Project shall be the responsibility of and
shall be paid for by the Bystronic.
B. Bystronic agrees that it shall continue the Subject Project, including maintain-
ing approximately 25 full-time jobs referenced in paragraph 3A of this Agreement, for a
period of not less than five (5) years from the date of the City's payment of the "Initial
Job Incentive Grant" described in Section 3(A)(i) of this Agreement.
3. Economic Incentives. In consideration for Bystronic's undertaking of the Sub-
ject Project, the City agrees to provide economic incentives to Bystronic to be used by
Bystronic solely and only for the Subject Project. Such economic incentives shall consist
of and be distributed to Bystronic as follows:
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A. Job Incentive Grant. The City will provide Bystronic with a job incentive grant
as described in this section in a total amount not to exceed the sum of eighty-five thou-
sand dollars $85,000.
(i). The City shall pay Bystronic a "Initial Job Incentive Grant" as follows: $2000
for each full-time job having an annual salary in excess of $40,000 (excluding benefits)
established for the Subject Project within sixty (60) days of the date of this Agreement,
and; $3000 for each full-time job having an annual salary in excess of $70,000 (exclud-
ing benefits established for the Subject Project within sixty (60) days of the date of this
Agreement. Prior to the City's payment of the Initial Job Incentive Grant, Bystronic shall
provide written verification acceptable to the City's chief financial officer demonstrating
that Bystronic has established not less than 25 full-time jobs for the Subject Project
earning direct wages of not less than $40,000 on an annual basis (excluding benefits)
and that the average salary for all such 25 full-time employees shall be in excess of
$40,000. The City's payment of the Initial Job Incentive Grant shall be paid to Bystronic
within thirty (30) days of the Bystronic providing to the City such written verification re-
garding the establishment of jobs.
(ii). Following the City's payment of the Job Incentive Grant, the City shall pay
Bystronic $1000 for each additional full-time job having an annual salary in excess of
$40,000 (excluding benefits) established for the Subject Project in excess of the 25 full-
time jobs referred to in Section 3(A)(i) of this Agreement and $3000 for each additional
full-time job having an annual salary in excess of $70,000 (excluding benefits) estab-
lished for the Subject Project in excess of the 25 full-time jobs referred to in Section
3(A)(i) of this Agreement. Prior to the City's payment of such additional job incentive
grants, Bystronic shall provide written verification acceptable to the City's chief financial
officer demonstrating Bystronic has established such full-time jobs for the Subject Pro-
ject. The payment of any such additional job incentive grants will be paid by the City to
Bystronic on each anniversary of the City's payment of the Initial Job Incentive Grant.
Bystronic shall be eligible for such additional job incentive grants for a period of four (4)
years following the expiration of the Initial Job Incentive Grant, provided, however, than
in no event shall the City's combined payment of the Initial job Incentive Grant and any
subsequent job incentive grants to Bystronic exceed the sum of eighty-five thousand
dollars ($85,000.00).
B. Waiver of Impact Fees Building Permit Fees for the Subject Project. The City
agrees to waive and not require Bystronic to pay impact fees an building permit fees
which would otherwise be due and payable to the City in connection with the establish-
ment of the Subject Project in an amount not to exceed $85,000. Any and all impact
fees or other fees which may be due and owing any other governmental entity other
than the City shall be paid by Bystronic. The City's reimbursement of any impact fees or
building permit fees paid by Bystronic for the Subject Project shall be paid to Bystronic
within thirty (30) days of the Bystronic providing to the City such written verification re-
garding the establishment of jobs in accordance with Section 3(A)(i) of this Agreement.
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4. Bystronic to Recruit and Hire Elgin Residents. Bystronic agrees to and shall
make all reasonable efforts to recruit and hire Elgin residents for employment opportuni-
ties for the Subject Project. Such efforts shall include, among other matters, recruitment
efforts directed toward Elgin residents and documenting the number of Elgin residents
applying for employment and the number of Elgin residents hired for employment posi-
tions for the Subject Project. The requirements in this section shall remain in effect for a
period of four (4) years following the City's payment of the Initial Job Incentive Grant.
5. Bowes Creek Country Club. The City shall provide Bystronic with its choice of
two (2) annual "Individual Memberships"; two (2) annual "Corporate Memberships" at
the Bowes Creek Country Club, or; a combination of one (1) "Individual Membership"
and one (1) "Corporate Membership." Such annual memberships shall also allow for
play at the Highlands of Elgin. The City shall provide each selected membership type for
a period of three (3) consecutive years, beginning with the 2012 season.
6. City's Obligations Contingent Upon Bystronic's Performance. The parties un-
derstand and agree that the economic incentive grants being provided by the City to
Bystronic as set forth in paragraphs 3 and 5 of this Agreement are expressly subject to
and contingent upon Bystronic's maintaining the Subject Project for a period of not less
than five (5) years from the date of the City's payment of the "Initial Job Incentive Grant"
described in Section 3(A)(i) of this Agreement. In the event Bystronic fails to provide for
the creation and establishment of the jobs as provided for in Section 3A of this Agree-
ment, the parties understand and agree that the City will not be providing the economic
incentive grants or economic assistance to the Bystronic for the Subject Project pursu-
ant to this Agreement or otherwise. In the event Bystronic fails to continue the Subject
Project for the five (5) year period as required in this Agreement, the parties understand
and agree that Bystronic shall reimburse the City on a pro-rata basis the economic in-
centive grants provided for in Section 3 of this Agreement. For the purposes of clarifica-
tion and example, the reimbursement on the pro rata basis shall mean a percentage
reimbursement based upon the percentage of the five year time period the Bystronic
has failed to continue the Subject Project. For the purpose of further clarification and
example, in the event Bystronic continues the Subject Project for four years instead of
five years, Bystronic shall reimburse to the City 20 percent of the economic incentive
grants and assistance paid or provided by the City to Bystronic pursuant to Section 3 of
this Agreement.
7. Miscellaneous.
A. That this Agreement shall not be deemed or construed to create an employ-
ment, joint venture, partnership, or other agency relationship between
the parties hereto.
B. 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
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on the date on which said hand delivered or the second business day following the date
on which so mailed:
TO THE CITY: TO BYSTRONIC:
City of Elgin Bystronic Incorporated
150 Dexter Court 200 Airport Road
Elgin, IL 60120-5555 Elgin, IL 60123
Attention: Richard G. Kozal Attention: Robert St. Aubin
With a copy of any such notice to:
City of Elgin Bystronic Incorporated
150 Dexter Court 200 Airport Road
Elgin, IL 60120-5555 Elgin, IL 60123
Attention: William A. Cogley, Attention: David Burchfield
Corporation Counsel
C. That the failure by a party to enforce any provision of this Agreement against
the other party shall not be deemed a waiver of the right to do so thereafter.
D. 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.
E. That this Agreement contains the entire agreement and understanding of the
parties hereto with respect to the subject matter as set forth herein, all prior agreements
and understandings having been merged herein and extinguished hereby.
F. That this Agreement is and shall be deemed and construed to be a joint and
collective work product of the City and Bystronic 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, vague-
ness or conflict, if any, in the terms or provisions contained herein.
G. That this Agreement is subject to and shall be governed by the laws of the
State of Illinois.
H. 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. The City may
record a Memorandum of Agreement placing of record the terms and provisions of this
Agreement.
I. The City and Bystronic 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
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written notice to the defaulting party stating that they are giving the defaulting party thirty
(30) days within which to cure such default. If the default shall not be cured within the
thirty (30) 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.
J. If either party fails or refuses to carry out any of the material covenants or obli-
gations hereunder, the other party shall be entitled to pursue any and all available rem-
edies as specified herein or otherwise available at law, equity or otherwise. Notwith-
standing 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 3A of this Agreement, no action shall be commenced by Bystronic
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. In the event any action is brought by the City against Bystronic or
its permitted assigns with respect to this Agreement and the City is the prevailing party
in such action, the City shall also be entitled to recover from Bystronic reasonable inter-
est and reasonable attorney's fees. Notwithstanding anything to the contrary stated
herein or otherwise, BYSTRONIC'S AGGREGATE LIABILITY UNDER THIS AGREE-
MENT AND IN CONNECTION WITH ITS RECEIPT OF THE ECONOMIC INCENTIVE
DESCRIBED HEREIN SHALL BE EXPRESSLY LIMITED TO THE AMOUNTS RE-
CEIVED BY BYSTRONIC FROM THE CITY IN CONNECTION WITH THIS AGREE-
MENT AND SUCH ECONOMIC INCENTIVE. Bystronic shall have no other liability
whatsoever, whether based on breach of contract, negligence, strict liability or any other
claim and under no circumstances shall Bystronic be liable for lost profits or revenues,
special incidental, indirect, consequential or exemplary damages incurred by the City or
any third party.
K. Time is of the essence of this Agreement.
L. This Agreement shall be construed, and the rights and obligations of the City
and Bystronic hereunder shall be determined in accordance with the laws of the State of
Illinois without reference to its conflict of laws rules.
M. No past, present or future elected or appointed official, officer, employee, at-
torney, agent or independent contractor of the City shall be charged personally or held
contractually liable under any term or provision of this Agreement including, but not lim-
ited to, because of their negotiation, approval, execution or attempted execution of this
Agreement.
N. Notwithstanding any other provisions of this Agreement, it is expressly agreed
and understood by Bystronic and the City that in connection with the performance of this
Agreement, that Bystronic shall comply with all applicable federal, state, city and other
requirements of law including, but not limited to, any applicable requirements regarding
prevailing wages, minimum wage, workplace safety and legal status of employees.
Without limiting the foregoing, Bystronic hereby certifies, represents and warrants to the
City that all of Bystronic's employees and/or agents who will be employed for the Sub-
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ject Project shall be legal residents of the United States. Without limiting the foregoing,
and notwithstanding anything to the contrary in this Agreement, Bystronic and its con-
tractors and subcontractors shall comply with the Prevailing Wage Act in all respects
relating to the Subject Project. The City shall have the right to audit any records in the
possession or control of Bystronic to determine Bystronic's compliance with the provi-
sions of this section. In the event the City proceeds with such an audit, the Bystronic
shall make available to the City Bystronic's relevant records at no cost to the City. By-
stronic shall also pay any and all costs associated with any such audit. If so desired by
Bystronic, the audit shall, to the extent permitted by law, be subject to reasonable confi-
dentiality restrictions set forth in a confidentiality agreement agreed to by the parties.
The provisions of this section shall survive any termination, completion and/or expiration
of this Agreement.
O. Bystronic, on behalf of itself and its respective successors, assigns and grant-
ees 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 any of the terms and provi-
sions 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 main-
tain any legal action or other defenses against the City with respect to any challenges of
the terms and provisions of this Agreement. The provisions of this section shall survive
any termination, completion and/or expiration of this Agreement.
IN WITNESS WHEREOF, the City and Bystronic have executed this Agreement
on the date and year first written above.
CITY OF ELGIN, BYSTRONIC, INC.
an Illinois municipal corporation
By: m ,, ✓ - _ By J
David J. Kapt- n, .yor
Its: ��-S \S)Q mss; .
Attest:
g-Aa44-4-1I6L1-.2)
Kimberly Dewi , City Clerk
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CEPORTTOMAYOR &MEMBERSOFCITYCOUNCIL E L( I N
THE CITY IN THE SUBURBS
AGENDA ITEM: J
MEETING DATE: December 21, 2011
ITEM:
Economic Incentive Agreement with Bystronic, Inc.
($85,000)
OBJECTIVE:
Enter into an economic incentive agreement with a several billion dollar corporation that will
bring new, full-time jobs to the city.
RECOMMENDATION:
Approve the economic incentive agreement with Bystronic, Inc. in a not to exceed amount of
$85,000.
BACKGROUND
Bystronic, Inc. (Bystronic) is the North American subsidiary of Bystronic Laser AG. Bystronic La-
ser AG is a subsidiary company of Conzetta Group, AG, a Swiss industrial holding company that
with broadly diversified businesses including machine and apparatus engineering, automation
systems, foam materials, sport items and real estate. The Conzetta Group employs approx-
imately 3400 employees worldwide.
Bystronic Laser AG is an active worldwide supplier of high-quality machines and systems for the
economical processing of sheet metal and other flat materials. including application-oriented
solutions and services for laser cutting, waterjet cutting as well as bending. Bystronic is a pio-
neer in the development and manufacture of laser cutting systems, and is one of today's lead-
ing suppliers of complete solutions for sheet metal processing, with a product offering that in-
cludes lasers, press brakes, waterjets, software, and automation.
Bystronic was founded in 1986, in the Swiss town of Niederonz, with an original workforce of
around 30 people. Over the years the company underwent successive expansions to reach its
current status, with a total staff of 1400 employees, worldwide. Bystronic celebrated its 25th
anniversary in September of this year.
Today, Bystronic operates three main manufacturing facilities and over 25 sales and service
companies around the world. Bystronic's North American operation has over one hundred em-
ployees and sales and training facilities located throughout the United States, Canada and Mex-
ico.
A)
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Bystronic is relocating its United States headquarters (depicted above) from New York to Elgin.
Its new facility at 200 Airport Road will include marketing, sales, training and administrative op-
erations. Bystronic's new Elgin headquarters will be creating 25 new jobs with plans to have 40
new jobs by 2015.
OPERATIONAL ANALYSIS
The use of economic development incentives has become so widespread that corporations, real
estate developers and manufacturers routinely approach city governments asking for them. Of-
ten, these entities assert that they might move their planned investment to a competing loca-
tion with lower operating costs or more attractive incentive packages. The city has been utiliz-
ing job incentive grants with good success to provide Elgin with a competitive advantage over
its competing municipalities. lob incentive grants can often provide the deciding factor for con-
vincing a business to locate in Elgin when all other factors at a competing location are equal.
The city typically targets its incentives to large corporations with many employees or to corpo-
rations with smaller numbers of employees with higher average wages. In exchange for the in-
centive package, the business typically agrees to maintain a certain level of jobs at a certain
wage level at its facilities in Elgin or create a specified number of new jobs.
The proposed economic incentive agreement (attached for reference) provides Bystronic with
cash incentives to create not less than 25 jobs with annual salaries of at least $40,000 (exclud-
ing benefits). The agreement requires Bystronic to maintain 25 jobs in Elgin for a period of five
years and provides additional cash incentives for Bystroninc to increase the size of its workforce
during the five-year term of the agreement. Bystronic will receive an initial payment of $2,000
for each job created with an annual salary exceeding $40,000 (excluding benefits) and $3,0000
for each of the initial 25 jobs created with an annual salary exceeding $70,000 (excluding bene-
fits). In subsequent years, new jobs created with an annual salary exceeding $40,000 before
benefits will receive $1000 and those jobs with salaries exceeding $70,000 before benefits will
receive $3000. Cash incentives under the proposed agreement are capped at $85,000. Bystron-
ic agrees to recruit and hire Elgin residents for employment opportunities under the proposed
agreement.
4)
The proposed agreement also includes a waiver of any required impact and building permit fees
which would otherwise be due and payable to the city. Bystronic incurred $81,842.50 in such
fees for the construction of its headquarters at 200 Airport Road. Bystronic will be reimbursed
by the city for the cost of these fees under the proposed economic incentive agreement.
Two annual memberships to the Bowes Creek Country Club are also being proposed in the eco-
nomic incentive agreement. The agreement contemplates Bystronic receiving this benefit for a
period of three consecutive years.
INTERESTED PERSONS CONTACTED
The Elgin Area Chamber of Commerce has been consulted regarding the proposed economic
incentive agreement with Bystronic, Inc.
FINANCIAL ANALYSIS
The Elgin Area Chamber of Commerce contracted with the Incentis Group, LLC (Incentis) to per-
form an economic and fiscal impact analysis of the city's proposed economic incentive agree-
ment with Bystronic. (A presentation on that analysis was delivered to the city council when it
convened on December 7, 2011 and a copy of that analysis is attached.) Incentis determined
that the annual economic impact of the Bystronic project is approximately $17 million for the
Elgin economy. This figure includes the indirect impact other industries such as the food, medi-
cal and banking industries will derive from the presence of these new employees. The Incentis
analysis also projected that the city will derive $650,000 in new property, sales and other taxes
from Bystronic's new headquarters through 2015. The Incentis analysis demonstrates that the
city's return on its $85,000 investment in job grants and approximately $82,000 in impact and
building fee waivers will more than be recovered with the projected $650,000 in tax revenue
over the next four years and the approximately $17 million in annual economic activity that will
be generated from the presence of Bystronic's headquarters.
BUDGET IMPACT
FUND(S) ACCOUNT(S) PROJECT#(S) AMOUNT AMOUNT
BUDGETED AVAILABLE
Riverboat Lease 276-0000-791.80-27 177119 $329,000 $279,036
LEGAL IMPACT
None.
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ALTERNATIVES
411)
agreement B
The city council may choose not to enter into a n economic incentive g reement with Bystronic,
,
Inc.
NEXT STEPS
Execute the economic incentive agreement with Bystronic, Inc.
Originators: Richard G. Kozal, Assistant City Manager
Final Review: Colleen Lavery, Chief Financial Officer
William A. Cogley, Corporation Counsel/Chief Development Officer
Sean R. Stegall, City Manager
ATTACHMENTS
A: Economic Incentive Agreement with Bystronic, Inc.
B: Incentis Fiscal Impact Analysis November 2011
J 1r►
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Incentvs
Incentives and credits for growing y business
Bystronic USA Economic and Fiscal
Impact Analysis
November 2011
Commissioned By: The Elgin Development Group
Incentis Group, LLC
1304 West Washington Blvd
Chicago, IL 60607
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Executive Summary
Incentis Group LLC was commissioned by the Elgin Development Group to assess the economic and fiscal
impacts on the City of Elgin of the relocation of the Bystronic USA North American Headquarters to 200
Airport Road, Elgin.
Bystronic, a leading,worldwide supplier of high quality laser cutting systems,waterjet cutting systems,press
brake systems, software and material handling solutions for the processing of metal and other sheet materials
has agreed to relocate their headquarters, a marketing, sales,training and administrative operation,to Elgin.
Bystronic will invest significant capital to construct offices, an equipment showroom,training areas and
warehouse. The relocation of the Bystronic Headquarters is expected to create twenty-five new jobs at the
project onset with a total of forty new jobs created in Elgin by 2015.
The Economic and Fiscal Impacts Analysis was conducted to estimate the annual economic and fiscal impacts
of the Bystronic project on the Elgin economy. The economic impacts included in this study are direct, indirect
and induced jobs impacts, direct, indirect and induced earnings impacts, and overall economic activity that are
generated by the Bystronic project. The fiscal impacts include an analysis of the incentives provided by Elgin
to Bystronic relative to the future direct and indirect taxes that are generated as a result of the project.
Methodology
In conducting the Economic and Fiscal Impact Analysis, Incentis Group incorporated methodologies that are
highly accepted as reasonable in estimating economic and fiscal impacts associated with a given project or
event. It should be noted,however,that our estimates may differ from actual outcomes resulting from the
Bystronic USA project due to a number of events and factors including changes in tax rates,future volatility
within the City economy and its industries and sectors,inflation variances,reliability of tax and data sources,
and other unforeseen factors.
In estimating the economic impacts of the Bystronic project, including jobs, earnings, and economic activity,
Incentis Group utilized input-output multipliers developed by Minnesota IMPLAN Group(IMPLAN).
IMPLAN is the developer of the IMPLAN economic impact modeling system. 1MPLAN's tools are in use by
over 1,000 public and private institutions. The IMPLAN economic multipliers are specific to the City of Elgin
and to the industries/sectors associated with the Bystronic project. The IMPLAN multipliers assist us in
estimating the jobs, earnings, and economic activity resulting from the Bystronic project. When goods and
services are produced in an industry a"multiplier effect" is created by the demand generated for other goods
and services. This demand then dissipates through other industries and sectors within a given economy until it
is immaterial.
In estimating the fiscal impacts of the Bystronic project upon the City of Elgin,including direct and indirect tax
generation, Incentis Group has applied the appropriate tax rates to the property assessments and project
parameters provided by the City of Elgin. Additionally,where appropriate,we have utilized the IMPLAN
economic impact modeling system to estimate indirect taxes generated in the city economy as a result of the
Bystronic project occurring in Elgin.
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Summary of Findings
The Economic and Fiscal Impact Analysis resulted in the following fmdings associated with the Bystronic
project. Details regarding these findings are presented in this Analysis. The Analysis estimates the annualized
impacts of the Bystronic project on the City of Elgin.
Summary of Economic Impacts
Construction Period Impact
The annual economic impact of the Bystronic project construction period upon the City of is estimated
to include annualized economic activity of$5,021,794, the equivalent of 38 full-time jobs on an annualized
basis and$2,133,051 of annualized employee earnings.
Direct Effect Multiplier Indirect/Induced Total Effect
Effect
Employment 25 1.5200 13 38
Annual Employee Compensation $ 1,530,777 1.3934 $ 602,274 $ 2,133,051
Annual Economic Output $ 3,363,125 1.4932 $ 1,658,669 $ 5,021,794
(1040perational Facility Impact
The annual economic impact of the Bystronic project,post-completetion, upon the City of Elgin is estimated
to include annualized economic activity of$17,394,174, the equivalent of 89 full-time jobs on an annualized
basis and$6,365,450 of annualized employee earnings.
Direct Effect Multiplier Indirect/Induced Total Effect
Effect
Employment 40 2.2156 49 89
Annual Employee Compensation $ 3,640,000 1.7488 $ 2,725,450 $ 6,365,450
Annual Economic Output $ 11,096,562 1.5675 $ 6,297,612 $ 17,394,174
(1.6k
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Economic Activity
Economic activity at the city level is an estimate of the annual generation of output by the Bystronic
Headquarters and the flow through of these dollars within the city economy. We estimate that this total annual
economic activity generated by the Bystronic project to be$17,394,174. This amount includes the direct,
indirect, and induced effects of the Bystronic project upon the City of Elgin economy.
Top 10 Industries Affected by Annual Indirect/Induced Economic Output
Indirect/Induced
Description Direct Effect Multiplier Effect Total Effect
Wholesale trade businesses - - $ 1,217,812 $ 1,217,812
Nondepository credit intermediation and related activities - - $ 503,082 $ 503,082
Imputed rental activity for owner-occupied dwellings - - $ 389,775 $ 389,775
Monetary authorities and depository credit intermediation activities - - $ 286,543 $ 286,543
Private hospitals - - $ 248,919 $ 248,919
Food services and drinking places - - $ 203,714 $ 203,714
Offices of physicians,dentists,and other health practitioners - - $ 193,478 $ 193,478
Management of companies and enterprises - - $ 179,715 $ 179,715
Insurance carriers - - $ 172,636 $ 172,636
All other industries - - $ 2,901,938 $ 13,998,500
Jobs Impact
The Jobs Impact within the City of Elgin is an estimate of the direct full-time equivalent jobs generated by the
Bystronic project plus the effects of these jobs upon secondary job generation in Elgin. The Bystronic project is
expected to create 40 full-time equivalent direct jobs within the City of Elgin resulting in the generation of 49
indirect and induced jobs within the City for a total of 89 full-time equivalent jobs.
Top 10 Industries Affected by Indirect/Induced Employment
Indirect/Induced
Description Direct Effect Multiplier Effect Total Effect
ter E ri ,.t"me. }. '.' _,: `"' s. t x ; kr s 0A .� :..7:4-.t:, rsx.v x _ k �.-
J. .�_QE. ,;,� »' ,.�k�r, 'e ,. "`° �;.�.�. ��. �' �?e."�' `' -_•�€-.. �',
Wholesale trade businesses - - 7 7
Employment services - - 5 5
Food services and drinking places - - 3 3
Private hospitals - - 2 2
Automotive repair and maintenance,except car washes - - 2 2
Real estate establishments - - 2 2
Management of companies and enterprises - - 2 2
Offices of physicians,dentists,and other health practitioners - - 2 2
Nondepository credit intermediation and related activities - - 2 2
All other industries - 24 64
, 4411)
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Earnings Impact
rThe Earnings Impact within the City of Elgin is an estimate of the direct annualized compensation generated by
the Bystronic jobs and the effects of these jobs upon secondary earnings generation. The annual earnings for the
direct employees referenced above are approximately$3,640,000,not including sales commissions and
bonuses. We estimate that this compensation will result in$2,725,500 of additional indirect and induced
household earnings in Elgin, for a total of$6,365,450 in annualized earnings.
Top 10 Industries Affected by Annual Indirect/Induced Employee Compensation
Description Direct Effect Multiplier Indirect/Induced Total Effect
Effect
Iii****� rn tisa on fgf 3 W 54
Wholesale trade businesses - - $ 501,347 $ 501,347
Private hospitals - - $ 112,852 $ 112,852
Offices of physicians,dentists,and other health practitioners - - $ 110,209 $ 110,209
Employment services - - $ 108,366 $ 108,366
Nondepository credit intermediation and related activities - - $ 81,783 $ 81,783
Food services and drinking places - - $ 74,406 $ 74,406
Monetary authorities and depository credit intermediation activities - - $ 72,176 $ 72,176
Automotive repair and maintenance,except car washes - - $ 65,461 $ 65,461
Management of companies and enterprises - - $ 63,206 $ 63,206
All other industries - - $ 1,535,644 $ 5,175,644
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Summary of Fiscal Impacts
The fiscal impact of the Bystronic project upon the City of Elgin over the next 15 years is estimated to
include total additional direct tax collections of$647,337 which will directly benefit the city of Elgin. The A)
City of Elgin will provide a total of$100,160 in incentives of which $46,000 is provided as cash in the form of
jobs benefit grants and$54,160 in estimated forgone revenue from Impact Fee Waivers and Other incentives
(see appendix A). The net present value("NPV) of these new direct revenues at a rate of 6%over a period
of 15 years is estimated to be$406,608 compared to an NPV of$85,876 offered to Bystronic in the form of
incentives. Additionally,direct taxes collected by other local jurisdictions are estimated to total$1,197,925
(see appendix B).
Property Tax Benefit
The increase in property tax collections was estimated by calculating the property tax on 100%of the
construction value of the building and the estimated land value excluding the current value of the land
purchased by Bystronic for the project. No real estate price inflation is assumed in the analysis.
• . - Tax Benefit
Rate 2010 Actual Tax; 2013 Estimated Tax Total Increase in Property Tax Benefits
Bystronic Estimated Constuchon Cost $ 3,363,125
%of Construction Value; 100%
Bystronic Estimated Value Land $ 1,350,360
Bysotmnic Land Assessed Value; S 205,743 $ 1,555,450
Total Propety Tax Benefit $ 16,996 $ 128,496 $ 111,499
Dundee Township 017% $ 347 $ 2,625
Elgin City 1.92% $ 3,953 $ 29,886 $ 25,933
Elgin Comm
C o`,:lleteg e 50-9 044% $ 90
7 $ 685 5 $
5949
am 3 r; a € ;TV:
Dundee Twp Library 015%' 300
2,265 $ 1965
;17
Kane County 0.37%'$ 767 $ 5,801 ,$ 5,034
Sales Tax Benefit -
The 2.50%direct sales tax benefit for the City of Elgin is estimated to be$3,750 in the first year and$625
annually thereafter.
Telecommunications Tax Benefit
The City of Elgin collects a 6%tax on Telecommunication which will result in additional direct tax revenue of
$12,000 annually.
Hotel Tax Benefit
The City of Elgin collects a 4%Hotel Tax.Assuming an average nightly hotel rate of$65.50 and occupied hotel
nights resulting from the Bystronic project of 1,400 in the first year and 1,000 annually thereafter, we have
estimated the direct annual tax benefit to the City of Elgin to be$3,668 in the first year and$2,620 annually ..04)
thereafter.
•
Indirect Business Tax Benefit
Indirect business taxes are the tax revenues collected by the City of Elgin as a result of the increase in indirect
jobs, earnings and economic activity. The estimated increase in indirect business taxes is presented for the first
four years below.The total indirect business taxes over 15 years are estimated to equal$2,822,188.
Indirect Business Tax 2012 2013 2014 2015
Sales Tax $ 55,157 $ 66,188 $ 77,220 $ 88,251
Property Tax $ 64,713 $ 77,656 $ 90,599 $103,542
Other Taxes $ 5,861 $ 7,033 $ 8,205 $ 9,377
Estimated Total Indirect Business Taxes '$133,119 �$159,742 �$186,367 '$212,990
Overall Assumptions
1.Assumes no real estate price inflation
2.Assumes no job creation beyond 2015
3.25%of Executive Employees are assumed to live within Elgin(approximate average Elgin resident-employee representation)
4.Assessed value of property based on 100%of Construction Costs
5.Increase in proprerty taxes includes the increase in the land
6.Telecommunication tax assumes annual telecommunication spending of$200,000
7. Sales tax calculations assume a local annual spend of$25,000
8.Hotel tax calculations assume 1,400 hotel nights in year one and 1,000 nights thereafter at a rate of$65.50
9.Assumes average annual wage for all employees of$70,000
10.Total economic output is estimated using the jobs input as opposed to the sales input(which may generate a greater economic impact)
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Appendix A.
City of Elgin-Economic&Fiscal impact Analysis
Bystronic Project-City of Elgin Benefit
Estimated Benefit to the City of Elgin
Estimated Direct Tax and Fee Collections After incentives 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Total
Increase in Property Tax Benefit(Direct City Portion) $ - $ - $ 25,933 $ 25,933 $ 25,933 $25,933 $ 25,933 $ 25,933 $ 25,933 $ 25,933 $25,933 $25,933 $ 25,933 $ 25,933 $25,933 $25,933 $ 363,066
Increase in Sales Tax Benefit $ 3,750 $ 625 $ 625 $ 625 $ 625 $ 625 $ 625 $ 625 $ 625 $ 625 $ 625 $ 625 $ 625 5 625 $ 625 $ 625 5 13,125
Increase in Telecommunications Tax Benefit $ - $ 12,000 $ 12,000 $ 12,000 $ 12,000 $ 12,000 $ 12,000 $ 12,000 $ 12,000 $ 12,000 $ 12,000 $ 12,000 $ 12,000 $ 12,000 $ 12,000 $ 12,000 5 184000
Increase in Hotel Tax Benefit $ - $ 3,668 $ 2,620 $ 2,620 $ 2,620 $ 2,620 $ 2,620 $ 2,620 $ 2,620 $ 2,620 $ 2,620 $ 2,620 $ 2,620 $ 2,620 $ 2,620 $ 2,620 $ 40,348
Permit and Plan Check Fees $ 50,798 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 5 50,798
Total Estimated Direct Tax Collections by the City $ 54,548 $ 16,293 $41,178 $ 41,178 $ 41,178 $41,178 $41,178 $41,178 $41,178 $ 41,178 $41,178 $ 41,178 $41,178 $41,178 $41,178 $41,178 $ 647,337
Incentives to Company(Cash)
lobs Benefit $ - $ • $(31,000) $ (5,000) $ (5,000) S (5,000) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ (46,000)
Total Incentives to Company(Cash) $ - $ - $(31,000) $ (5,000) $ (5,000) $ (5,000) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ (46,000)
v +' � ` "w " dr r a':t!d I'.r d "@ Ni `"��4 `^.�''' ..w'yw'
Net Revenue/iloss)to tfia ti , #. .... . $4 '.i5, 5, f i E„ � i7., i� ,i :i 6,i7.. d i7B; i 4titit t:at ji8'13:ai,71Z 5' ,3t,i3?137i S 41,1t .i: ,• 5'43 tB t At,7s 3,,. sata3i;
Incentives to Company(Foregone Revenue)
Impact Fee Waiver $ (30,160) $ - $ - $ • $ - $ • $ - $ - $ - $ - $ - $ - $ • $ - $ - $ - $ (34160)
Corporate Golf Membership(x2) $ - $ (8,000) $ (8,000) $ (8,000) 5 - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ (24,000)
Total Incentives to Company(Foregone Revenue) $ (30,160) $ (8,000).$ (8, ) $ (8,000) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ • $ (54,160)
9 u.
NetReveni,e(1oss.t�#hetl,. ,� -f�ar�gane.'ge#I, 4 -zuw:.� k..�.�..�:�.,w��„ .,: ..-��: � a '• `� r �x�� :�3�.
Estimated Indirect Business Tax Collections $ - $ - $133,119 $159,742 $186,367 $212,990 $212,990 $212,990 $212,990 $212,990 $212,990 $212,990 $212,990 $212,990 $212,990 $212,990 $ 2,822,118
NPV Discount Rate 6.00%
NPV of Tax Revenues,before incentives $406,608
NPV of Total incentives ($85,876)
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Appendix B.
City of Elgin-Economic&Fiscal Impact Analysis
Bystronic Project-Indirect and Other Taxing Jurisdiction Benefit
Estimated Indirect Taxes and Other Taxing Jurisdiction Benefits
Estimated Property Tax Collections(All Other Taxing Jursidictions)
Dundee Township $ - $ - $ 2,278 $ 2,278 $ 2,278 $ 2,278 $ 2,278 $ 2,278 $ 2,278 $ 2,278 $ 2,278 $ 2,278 $ 2,278 $ 2,278 $ 2,278 $ 2,278 $ 31,890
Dundee Twp Road District $ - $ = $ 1,045 $ 1,045 $ 1,045 $ 1,045 $ 1,045 $ 1,045 $ 1,045 $ 1,045 $ 1,045 $ 1,045 $ 1,045 $ 1,045 $ 1,045 $ 1,045 $ 14,629
School District 300 $ - $ - $60,217 $60,217 $60,217 $60,217 $ 60,217 $ 60,217 $60,217 $ 60,217 $60,217 $60,217 $60,217 $60,217 $60,217 $60,217 $ 843,042
Elgin Comm.College 509 $ - $ - $ 5,949 $ 5,949 $ 5,949 $ 5,949 $ 5,949 $ 5,949 $ 5,949 $ 5,949 $ 5,949 $ 5,949 $ 5,949 $ 5,949 $ 5,949 $ 5,949 $ 83,280
Dundee Twp Prk District $ - $ - $ 5,738 $ 5,738 $ 5,738 $ 5,738 $ 5,738 $ 5,738 $ 5,733 $ 5,738 $ 5,738 $ 5,738 $ 5,738 $ 5,738 $ 5,738 $ 5,738 $ 80,335
Dundee Twp library $ - $ - $ 1,965 $ 1,965 $ 1,965 $ 1,965 $ 1,965 $ 1,965 $ 1,965 $ 1,965 $ 1,965 $ 1,965 $ 1,965 $ 1,965 $ 1,965 $ 1,965 $ 27,514
Fox River Water Redam District $ - $ - $ 369 5 369 $ 369 $ 369 $ 369 $ 369 $ 369 $ 369 $ 369 $ 369 $ 369 $ 369 $ 369 $ 369 $ 5,167
Kane County $ - $ - $ 5,034 $ 5,034 $ 5,034 $ 5,034 $ 5,034 $ 5,034 $ 5,034 $ 5,034 $ 5,034 $ 5,034 $ 5,034 $ 5,034 $ 5,034 $ 5,034 $ 70,477
Kane County Forest Preserve $ - $ - $ 2,971 $ 2,971 $ 2,971 $ 2,971 $ 2,971 $ 2,971 $ 2,971 $ 2,971 $ 2,971 $ 2,971 $ 2,971 $ 2,971 $ 2,971 $ 2,971 $ 41,591
Total Estimated Tax Collections by Other Taxing Jurisdiction Benefits '$ - $ - $85,566 $85,566 $ 85,566 $ 85,566 $85,566 $85,566 $ 85,566 $ 85,566 $ 85,566 $85,566 $85,566 $85,566 $85,566 $ 85,566 $ 1,197,925
ECONOMIC INCENTIVE AGREEMENT
This Economic Incentive Agreement (the "Agreement") is made and entered into
as of this 11th day of January 2012, by and between the City of Elgin, an Illinois munici-
pal corporation (hereinafter referred to as the "City"), and Bystronic, Inc., a New York
corporation ("Bystronic").
WHEREAS, Bystronic is Swiss company that is an active worldwide supplier of
high-quality machines and systems for the economical processing of sheet metal and
other flat materials including application-oriented solutions and services for laser cutting,
waterjet cutting as well as bending, and:
WHEREAS, Bystronic is a leading global supplier of laser cutting, waterjet cut-
ting, press brake systems and system software for industrial applications, and;
WHEREAS, Bystronic has over one hundred employees and sales and training
facilities located throughout the United States, Canada and Mexico, Bystronic supplies
customer-oriented solutions specially designed to handle the challenges in today's
competitive manufacturing environment, and;
WHEREAS, Bystronic is establishing its United States headquarters in Elgin at
200 Airport Road, including marketing, sales, training and administrative operations
("Subject Project"), and;
WHEREAS, Bystronic's headquarters will be creating 25 new jobs with plans to
have 40 new jobs by 2015; and;
WHEREAS, Bystronic would not have been inclined to proceed with the construc-
tion of its U.S. headquarters in Elgin without certain economic development assistance
from the City; and
WHEREAS, section 8-11-20 of the Illinois Municipal Code (65 ILCS 5/8-11-20)
authorizes municipalities including the City to enter into economic incentive agreements
relating to the development or redevelopment of lands within the corporate limits of a
municipality;and
WHEREAS, the City is a home rule unit authorized to exercise any power and
perform any function relating to its government and affairs;
WHEREAS, economic incentive agreements including the economic incentive
agreement as provided for in this agreement pertain to the government and affairs of
the City; and
WHEREAS, the real property for the Subject Project has remained vacant for at
least one (1) year before construction; and
•
WHEREAS, the Subject Project is expected to create job opportunities within the
City; and
WHEREAS, the Subject Project will serve to further the development of adjacent
areas; and
WHEREAS, Bystronic meets high standards of credit worthiness and financial
strength; and
WHEREAS, the Subject Project will strengthen the commercial and industrial
sector of the City; and
WHEREAS, the Subject Project will enhance the tax base of the City; and
WHEREAS, this agreement is made in the best interests of the City.
NOW, THEREFORE, for and in consideration of the mutual promises and under-
takings contained herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1. Recitals. The foregoing recitals are incorporated into this Agreement in their
entirety.
2. Subject Project.
A. Bystronic, at its cost, shall develop the Subject Project. The development of
the Subject Project shall conform in all respects with all applicable legal requirements,
including, but not limited to, city ordinances and codes, the terms of this Agreement, or
as otherwise directed by the City as is necessary to comply with ordinances, building
codes or other requirements of law. Except as otherwise provided in this Agreement, all
costs and expenses relating to the Subject Project shall be the responsibility of and
shall be paid for by the Bystronic.
B. Bystronic agrees that it shall continue the Subject Project, including maintain-
ing not less than 25 full-time jobs referenced in paragraph 3A of this Agreement, for a
period of not less than five (5) years from the date of the City's payment of the "Initial
Job Incentive Grant" described in Section 3(A)(i) of this Agreement.
3. Economic incentives. In consideration for Bystronic's undertaking of the Sub-
ject Project, the City agrees to provide economic incentives to the Bystronic to be used
by the Bystronic solely and only for the Subject Project. Such economic incentives shall
consist of and be distributed to the Bystronic as follows:
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e I
A. Job Incentive Grant. The City will provide Bystronic with a job incentive grant
as described in this section in a total amount not to exceed the sum of eighty-five thou-
sand dollars $85,000.
(i). The City shall pay Bystronic a "Initial Job Incentive Grant" as follows: $2000
for each full-time job having an annual salary in excess of$40,000 (excluding benefits)
established for the Subject Project within sixty (60) days of the date of this Agreement,
and; $3000 for each full-time job having an annual salary in excess of$70,000 (exclud-
ing benefits established for the Subject Project within sixty (60) days of the date of this
Agreement. Prior to the City's payment of the Initial Job Incentive Grant, Bystronic shall
provide written verification acceptable to the City's chief financial officer demonstrating
that Bystronic has established not less than 25 full-time jobs for the Subject Project
earning direct wages of not less than $40,000 on an annual basis (excluding benefits)
and that the average salary for all such 25 full-time employees shall be in excess of
$40,000. The City's payment of the Initial Job Incentive Grant shall be paid to Bystronic
within thirty (30) days of the Bystronic providing to the City such written verification re-
garding the establishment of jobs.
(ii). Following the City's payment of the Job Incentive Grant, the City shall pay
Bystronic $1000 for each additional full-time job having an annual salary in excess of
$40,000 (excluding benefits) established for the Subject Project in excess of the 25 full-
time jobs referred to in Section 3(A)(i) of this Agreement and $3000 for each additional
full-time job having an annual salary in excess of $70,000 (excluding benefits) estab-
lished for the Subject Project in excess of the 25 full-time jobs referred to in Section
3(A)(i) of this Agreement. Prior to the City's payment of such additional job incentive
grants, Bystronic shall provide written verification acceptable to the City's chief financial
officer demonstrating Bystronic has established such full-time jobs for the Subject
Project. The payment of any such additional job incentive grants will be paid by the City
to Bystronic on each anniversary of the City's payment of the Initial Job Incentive Grant.
Bystronic shall be eligible for such additional job incentive grants for a period of four (4)
years following the expiration of the Initial Job Incentive Grant, provided, however, than
in no event shall the City's combined payment of the Initial job Incentive Grant and any
subsequent job incentive grants to Bystronic exceed the sum of eighty-five thousand
dollars ($85,000,000).
B. Waiver of Impact Fees Building Permit Fees for the Subject Project. The City
agrees to waive and not require Bystronic to pay impact fees an building permit fees
which would otherwise be due and payable to the City in connection with the establish-
ment of the Subject Project in an amount not to exceed $85,000. Any and all impact
fees or other fees which may be due and owing any other governmental entity other
than the City shall be paid by Bystronic. The City's reimbursement of any impact fees or
building permit fees paid by Bystronic for the Subject Project shall be paid to Bystronic
within thirty (30) days of the Bystronic providing to the City such written verification re-
garding the establishment of jobs in accordance with Section 3(A)(i) of this Agreement.
A,
rink 4. Bystronic to Recruit and Hire Elgin Residents. Bystronic agrees to and shall
make all reasonable efforts to recruit and hire Elgin residents for employment opportuni-
ties for the Subject Project. Such efforts shall include, among other matters, recruitment
efforts directed toward Elgin residents and documenting the number of Elgin residents
applying for employment and the number of Elgin residents hired for employment posi-
tions for the Subject Project. The requirements in this section shall remain in effect for a
period of four(4) years following the City's payment of the Initial Job Incentive Grant.
5. Bowes Creek Country Club. The City shall provide Bystronic with its choice of
two (2) annual "Individual Memberships"; two (2) annual "Corporate Memberships" at
the Bowes Creek Country Club, or; a combination of one (1) "Individual Membership"
and one (1) "Corporate Membership." Such annual memberships shall also allow for
play at the Highlands of Elgin. The City shall provide each selected membership type for
a period of three (3) consecutive years, beginning with the 2012 season.
6. City's Obligations Contingent Upon Bystronic's Performance. The parties un-
derstand and agree that the economic incentive grants being provided by the City to
Bystronic as set forth in paragraphs 3 and 5 of this Agreement are expressly subject to
and contingent upon Bystronic's maintaining the Subject Project for a period of not less
than five (5) years from the date of the City's payment of the "Initial Job Incentive Grant"
described in Section 3(A)(i) of this Agreement. In the event Bystronic fails to provide for
the creation and establishment of the jobs as provided for in Section 3A of this Agree-
ment, the parties understand and agree that the City will not be providing the economic
incentive grants or economic assistance to the Bystronic for the Subject Project pur-
suant to this Agreement or otherwise. In the event Bystronic fails to continue the Subject
Project for the five (5) year period as required in this Agreement, and/or in the event
Bystronic fails to maintain the full-time jobs at the Subject Project for the five (5)-year
period as required in this Agreement, the parties understand and agree that Bystronic
shall reimburse the City on a pro-rata basis the economic incentive grants provided for
in Section 3 of this Agreement. For the purposes of clarification and example, the reim-
bursement on the pro rata basis shall mean a percentage reimbursement based upon
the percentage of the five year time period the Bystronic has failed to continue the Sub-
ject Project. For the purpose of further clarification and example, in the event Bystronic
continues the Subject Project for four years instead of five years, Bystronic shall reim-
burse to the City 20 percent of the economic incentive grants and assistance paid or
provided by the City to the Bystronic pursuant to Section 3 of this Agreement.
7. Miscellaneous.
A. That this Agreement shall not be deemed or construed to create an employ-
ment,joint venture, partnership, or other agency relationship between
the parties hereto.
B. 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
t '
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 BYSTRONIC:
City of Elgin
150 Dexter Court
Elgin, IL 60120-5555
Attention: Richard G. Kozal
With a copy of any such notice to:
City of Elgin
150 Dexter Court
Elgin, IL 60120-5555
Attention: William A. Cogley,
Corporation Counsel
C. That the failure by a party to enforce any provision of this Agreement against
the other party shall not be deemed a waiver of the right to do so thereafter.
D. 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.
E. That this Agreement contains the entire agreement and understanding of the
parties hereto with respect to the subject matter as set forth herein, all prior agreements
and understandings having been merged herein and extinguished hereby.
F. That this Agreement is and shall be deemed and construed to be a joint and
collective work product of the City and Bystronic 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, vague-
ness or conflict, if any, in the terms or provisions contained herein.
G. That this Agreement is subject to and shall be governed by the laws of the
State of Illinois.
H. 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. The City may
record a Memorandum of Agreement placing of record the terms and provisions of this
Agreement.
I. The City and Bystronic 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 thirty
(30) days within which to cure such default. If the default shall not be cured within the
thirty (30) 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.
J. If either party fails or refuses to carry out any of the material covenants or obli-
gations hereunder, the other party shall be entitled to pursue any and all available re-
medies as specified herein or otherwise available at law, equity or otherwise. Notwith-
standing 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 3A of this Agreement, no action shall be commenced by the By-
stronic 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. In the event any action is brought by the City against Bystronic
or its permitted assigns with respect to this Agreement and the City is the prevailing par-
ty in such action, the City shall also be entitled to recover from Bystronic reasonable
interest and reasonable attorney's fees. Notwithstanding anything to the contrary stated
herein or otherwise, BYSTRONIC'S AGGREGATE LIABILITY UNDER THIS AGREE-
MENT AND IN CONNECTION WITH ITS RECEIPT OF THE ECONOMIC INCENTIVE
DESCRIBED HEREIN SHALL BE EXPRESSLY LIMITED TO THE AMOUNTS RE-
CEIVED BY BYSTRONIC FROM THE CITY IN CONNECTION WITH THIS AGREE-
MENT AND SUCH ECONOMIC INCENTIVE. Bystronic shall have no other liability
whatsoever, whether based on breach of contract, negligence, strict liability or any other
claim and under no circumstances shall Bystronic be liable for lost profits or revenues,
special incidental, indirect, consequential or exemplary damages incurred by the City or
any third party.
K. Time is of the essence of this Agreement.
L. This Agreement shall be construed, and the rights and obligations of the City
and Bystronic hereunder shall be determined in accordance with the laws of the State of
Illinois without reference to its conflict of laws rules.
M. No past, present or future elected or appointed official, officer, employee, at-
torney, agent or independent contractor of the City shall be charged personally or held
contractually liable under any term or provision of this Agreement including, but not li-
mited to, because of their negotiation, approval, execution or attempted execution of
this Agreement.
N. Notwithstanding any other provisions of this Agreement, it is expressly agreed
and understood by Bystronic and the City that in connection with the performance of this
Agreement, that Bystronic shall comply with all applicable federal, state, city and other
requirements of law including, but not limited to, any applicable requirements regarding
prevailing wages, minimum wage, workplace safety and legal status of employees.
Without limiting the foregoing, Bystronic hereby certifies, represents and warrants to the 4111)
City that all of Bystronic's employees and/or agents who will be employed for the Sub-
ject Project shall be legal residents of the United States. Without limiting the foregoing,
and notwithstanding anything to the contrary in this Agreement, Bystronic and its con-
tractors and subcontractors shall comply with the Prevailing Wage Act in all respects
relating to the Subject Project. The City shall have the right to audit any records in the
possession or control of the Bystronic to determine the Bystronic's compliance with the
provisions of this section. In the event the City proceeds with such an audit, the Bystron-
ic shall make available to the City the Bystronic's relevant records at no cost to the City.
Bystronic shall also pay any and all costs associated with any such audit. If so desired
by Bystronic, the audit shall, to the extent permitted by law, be subject to reasonable
confidentiality restrictions set forth in a confidentiality agreement agreed to by the par-
ties. The provisions of this section shall survive any termination, completion and/or expi-
ration of this Agreement.
O. Bystronic, on behalf of itself and its respective successors, assigns and gran-
tees 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 any of the terms and provi-
sions 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 main-
tain any legal action or other defenses against the City with respect to any challenges of
the terms and provisions of this Agreement. The provisions of this section shall survive
any termination, completion and/or expiration of this Agreement. la)
IN WITNESS WHEREOF, the City and Bystronic have executed this Agreement
on the date and year first written above.
CITY OF ELGIN, BYSTRONIC, INC.
an Illinois municipal corporation
By: By:
David J. Kaptain, Mayor
Its:
Attest:
.44)
ELGIN
THE CITY IN THE SUBURBS`
DATE: February 8, 2012
TO: Rick Kozal, Assistant City Manager and Chief Operating Officer
FROM: Kimberly Dewis, City Clerk
SUBJECT: Resolution No. 12-13, Adopted at the January 11, 2012, Council Meeting
Enclosed you will find the agreement listed below. Please distribute this agreement to the other
party and keep a copy for your records if you wish. If you have any questions please feel free to
contact our office 847-931-5660 and we will do our best to assist you. Thank you.
• Economic Incentive Agreement with Bystronic, Inc. (200 Airport Road)
'•
Resolution No. 12-6
RESOLUTION
AUTHORIZING EXECUTION OF AN ECONOMIC INCENTIVE AGREEMENT
WITH PANCOR CONSTRUCTION & DEVELOPMENT, LLC
(1385 Madeline Lane)
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that
David J. Kaptain, Mayor, and Kimberly A. Dewis, City Clerk, be and are hereby authorized and
directed to execute an Economic Incentive Agreement with Pancor Construction& Development,
LLC on behalf of the City of Elgin for economic development assistance in connection with the
development of 1385 Madeline Lane, a copy of which is attached hereto and made a part hereof by
reference.
s/ David J. Kaptain
David J. Kaptain, Mayor
Presented: January 11, 2012
Adopted: January 11, 2012
Omnibus Vote: Yeas: 6 Nays: 0
Attest:
s/Kimberly Dewis
Kimberly Dewis, City Clerk
ECONOMIC INCENTIVE AGREEMENT
This Economic Incentive Agreement (the "Agreement") is made and entered into as
of this 11th day of January 2012, by and between the City of Elgin, an Illinois municipal
corporation (hereinafter referred to as the "City"), and Pancor Construction & Development,
LLC, an Illinois corporation ("Pancor").
WHEREAS, Pancor is a fully integrated real estate developer, investor, contractor
and management company actively engaged in developing and acquiring office and indus-
trial properties in the Chicago metropolitan area, and:
WHEREAS, during the last 25 years, Pancor has successfully completed the devel-
opment of millions of square feet of office and industrial buildings at Illinois locations such
as Elgin, Addison, Bensenville, Bolingbrook, Carol Stream, Glendale Heights, Naperville,
Oakbrook Terrace, Schaumburg, St. Charles, Tinley Park and Vernon Hills, and;
WHEREAS, Elgin has a limited supply of industrial and commercial building space
and is not able to effectively compete for companies seeking to relocate or for existing
businesses to expand into more efficient facilities, and;
WHEREAS, to induce Pancor into constructing a new commercial and industrial
building with a thirty-foot clear ceiling height totaling 167,000 square feet at 1385 Madeline
Lane ("Subject Project") to keep the City competitive in the commercial and industrial
property metropolitan Chicago real estate market, the City will waive a portion of the cost
for the impact and other development fees associated with the construction of a new in-
dustrial and commercial building, and;
WHEREAS, Pancor would not have been inclined to proceed with the construction
of a speculative commercial and industrial building development in Elgin without certain
economic development assistance from the City; and
WHEREAS, section 8-11-20 of the Illinois Municipal Code (65 ILCS 5/8-11-20) au-
thorizes municipalities including the City to enter into economic incentive agreements relat-
ing to the development or redevelopment of lands within the corporate limits of a munici-
pality; and
WHEREAS, the City is a home rule unit authorized to exercise any power and per-
form any function relating to its government and affairs;
WHEREAS, economic incentive agreements including the economic incentive
agreement as provided for in this agreement pertain to the government and affairs of th-
City; and
WHEREAS, the real property for the Subject Property has remained vacant for at
least one (1) year; and
WHEREAS, the Subject Project is expected to create job opportunities within the
City; and
WHEREAS, the Subject Project will serve to further the development of adjacent ar-
eas; and
WHEREAS, Pancor meets high standards of credit worthiness and financial
strength; and
WHEREAS, the Subject Project will strengthen the commercial and industrial sector
of the City; and
WHEREAS, the Subject Project will enhance the tax base of the City; and
WHEREAS, this agreement is made in the best interests of the City.
NOW, THEREFORE, for and in consideration of the mutual promises and undertak-
ings contained herein, and other good and valuable consideration, the receipt and suffi-
ciency of which are hereby acknowledged, the parties hereto agree as follows:
1. Recitals. The foregoing recitals are incorporated into this Agreement in their
entirety.
2. Subject Project. Pancor, at its cost, shall develop the Subject Project. The devel-
opment of the Subject Project shall conform in all respects with all applicable legal re-
quirements, including, but not limited to, city ordinances and codes, the terms of this
Agreement, or as otherwise directed by the City as is necessary to comply with ordinanc-
es, building codes or other requirements of law. Except as otherwise provided in this
Agreement, all costs and expenses relating to the Subject Project shall be the responsibil-
ity of and shall be paid for by Pancor.
3. Economic Incentives. In consideration for Pancor's undertaking of the Subject
Project, the City agrees to provide economic incentives to Pancor to be used by Pancor
solely and only for the Subject Project. Such economic incentives shall consist of and be
distributed to Pancor as follows:
Partial Waiver of Impact Fees Building Permit Fees for the Subject Project. The City
agrees to waive and not require Pancor to pay forty percent (40%) of the impact
fees and building permit fees which would otherwise be due and payable to the City
in connection with the establishment of the Subject Project provided that said waiv-
er amount does not exceed $115,000. Said waiver shall not apply to any fees re-_
2
i
quires for tenant buildouts or interior upfits for the Subject Project. Any and all im-
pact fees or other fees which may be due and owing any other governmental entity
other than the City shall be paid by Pancor. The City's reimbursement of any impact
fees or building permit fees paid by Pancor for the Subject Project shall be paid to
Pancor within thirty (30) days of Pancor obtaining a certificate of occupancy from
the City for the Subject Project.
4. Miscellaneous.
A. That this Agreement shall not be deemed or construed to create an employment,
joint venture, partnership, or other agency relationship between
the parties hereto.
B. 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, re-
turn receipt requested, to the parties at the following addresses, or at such other ad-
dressed 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 PANCOR:
City of Elgin
150 Dexter Court
Elgin, IL 60120-5555
Attention: Richard G. Kozal,
Assistant City Manager
With a copy of any such notice to:
City of Elgin
150 Dexter Court
Elgin, IL 60120-5555
Attention: William A. Cogley,
Corporation Counsel
C. That the failure by a party to enforce any provision of this Agreement against the
other party shall not be deemed a waiver of the right to do so thereafter.
D. 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.
E. That this Agreement contains the entire agreement and understanding of the par-
ties hereto with respect to the subject matter as set forth herein, all prior agreements and
understandings having been merged herein and extinguished hereby.
Oji
3
•
F. That this Agreement is and shall be deemed and construed to be a joint and col-
lective work product of the City and Pancor 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.
G. That this Agreement is subject to and shall be governed by the laws of the State
of Illinois.
H. 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. The City may record a
Memorandum of Agreement placing of record the terms and provisions of this Agreement.
I. The City and Pancor 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 thirty (30) days
within which to cure such default. If the default shall not be cured within the thirty (30) days
period aforesaid, then the party giving such notice shall be permitted to avail itself of rem-
edies to which it may be entitled under this Agreement.
J. If either party fails or refuses to carry out any of the material covenants or obliga-
tions 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 para-
graph 3 of this Agreement, no action shall be commenced by Pancor 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. In
the event any action is brought by the City against Pancor or its permitted assigns with
respect to this Agreement and the City is the prevailing party in such action, the City shall
also be entitled to recover from Pancor reasonable interest and reasonable attorney's fees.
Notwithstanding anything to the contrary stated herein or otherwise, PANCOR'S AGGRE-
GATE LIABILITY UNDER THIS AGREEMENT AND IN CONNECTION WITH ITS RECEIPT
OF THE ECONOMIC INCENTIVE DESCRIBED HEREIN SHALL BE EXPRESSLY LIMITED
TO THE AMOUNTS RECEIVED BY PANCOR FROM THE CITY IN CONNECTION WITH
THIS AGREEMENT AND SUCH ECONOMIC INCENTIVE. Pancor shall have no other liabil-
ity whatsoever, whether based on breach of contract, negligence, strict liability or any oth-
er claim and under no circumstances shall Pancor be liable for lost profits or revenues,
special incidental, indirect, consequential or exemplary damages incurred by the City or
any third party.
Rr I
4
K. Time is of the essence of this Agreement.
L. This Agreement shall be construed, and the rights and obligations of the City and
Pancor hereunder shall be determined in accordance with the laws of the State of Illinois
without reference to its conflict of laws rules.
M. No past, present or future elected or appointed official, officer, employee, attor-
ney, agent or independent contractor of the City shall be charged personally or held con-
tractually liable under any term or provision of this Agreement including, but not limited to,
because of their negotiation, approval, execution or attempted execution of this Agree-
ment.
N. Notwithstanding any other provisions of this Agreement, it is expressly agreed
and understood by Pancor and the City that in connection with the performance of this
Agreement, that Pancor shall comply with all applicable federal, state, city and other re-
quirements of law including, but not limited to, any applicable requirements regarding pre-
vailing wages, minimum wage, workplace safety and legal status of employees. Without
limiting the foregoing, Pancor hereby certifies, represents and warrants to the City that all
of Pancor's employees and/or agents who will be employed for the Subject Project shall
be legal residents of the United States. Without limiting the foregoing, and notwithstanding
anything to the contrary in this Agreement, Pancor and its contractors and subcontractors
shall comply with the Prevailing Wage Act in all respects relating to the Subject Project.
The City shall have the right to audit any records in the possession or control of Pancor to
determine Pancor's compliance with the provisions of this section. In the event the City
proceeds with such an audit, Pancor shall make available to the City Pancor's relevant
records at no cost to the City. Pancor shall also pay any and all costs associated with any
such audit. If so desired by Pancor, the audit shall, to the extent permitted by law, be sub-
ject to reasonable confidentiality restrictions set forth in a confidentiality agreement agreed
to by the parties. The provisions of this section shall survive any termination, completion
and/or expiration of this Agreement.
O. Pancor, on behalf of itself and its respective successors, assigns and grantees
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 any of the terms and provisions of this
Agreement and hereby agrees and covenants on behalf of itself and its successors, as-
signs 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 of the terms and provi-
sions of this Agreement. The provisions of this section shall survive any termination, com-
pletion and/or expiration of this Agreement.
IN WITNESS WHEREOF, the City and Pancor have executed this Agreement on the
date and year first written above.
5
E
CITY OF ELGIN, PANCOR, CONSTRUCTION & DEVELOPMENT,
an Illinois municipal corporation LLC
By: /cii�/zi��/��;/"�� By: ►.
David J. Kap ain, ayor
Its: C.--
Attest:
'attitiqpi4-6:6
Kimberly D wis, City Clerk
6
111
E€P-ORT TO MAYOR & MEMBERS OF CITY COUNCIL E LG I 1\i
THE CITY IN THE SUBURBS
AGENDA ITEM: K
MEETING DATE: December 21, 2011
ITEM:
Economic Incentive Agreement with Pancor Construction & Development, LLC
(No Outflow of Funds)
OBJECTIVE:
Enter into an economic incentive agreement to induce the spec development of a 167,000
square-foot commercial and industrial building with a 30-foot clear ceiling height.
RECOMMENDATION:
Approve the economic incentive agreement with Pancor Construction & Development, LLC.
BACKGROUND
Pancor Construction & Development, LLC ("Pancor") is a fully i t eg r
ated real estate developer,
investor, contractor and management company actively engaged in developing and acquiring
office and industrial properties in the Chicago metropolitan area. During the last 25 years, Pan-
cor has successfully completed the development of millions of square feet of office and indus-
trial buildings at Illinois locations such as Elgin, Addison, Bensenville, Bolingbrook, Carol Stream,
Glendale Heights, Naperville, Oakbrook Terrace, Schaumburg, St. Charles, Tinley Park and Ver-
non Hills.
Pancor has developed over $150 million of office and industrial facilities in Elgin during the past
twenty years.
Pancor is constructing a new commercial and industrial building with 167,000 square feet and a
thirty-foot clear ceiling height at 1385 Madeline Lane in the Randall Point Business Center (off
Big Timber Road west of Randall Road). The construction costs are estimated to be$9.6 million.
This spec building will keep the city competitive in the commercial and industrial property met-
ropolitan Chicago real estate market and is being built consistent with the recommendations
provided by Lee &Associates (detailed below).
•
OPERATIONAL ANALYSIS
41111)
An industrial market analysis for the North Kane submarket that was presented to the Elgin
Y P g
Area Chamber of Commerce by Lee & Associates, a commercial real estate firm, determined
that Elgin has a limited supply of industrial and commercial building space. As such, Lee &Asso-
ciates determined that Elgin is not able to effectively compete for companies seeking to relo-
cate or for existing businesses to expand into more efficient facilities. Lee & Associates advised
that the city provide incentive catalysts to spur the construction of new "spec" development.
Lee & Associates recommended as an incentive the city consider waiving forty percent of the
impact and building permit fees to induce commercial and industrial development for a building
comprising not less than 150,000 square feet with a 30-foot clear ceiling height that will be con-
structed with Elgin union locals.
The proposed economic incentive agreement (attached for reference) provides a Pancor with a
forty percent (40%) waiver or discount on the required impact and building permit fees due and
payable to the city for the construction of its spec building. The impact and building permit fees
for Pancor's development are estimated to be $195,000. With the forty percent discount, Pan-
cor will be paying the city approximately$117,000 in impact and building permit fees.
INTERESTED PERSONS CONTACTED
The Elgin Area Chamber of Commerce has been consulted regarding the proposed economic
incentive agreement with Pancor Construction &Development, LLC.
FINANCIAL ANALYSIS
The Elgin Area Chamber of Commerce contracted with the Incentis Group, LLC (Incentis) to per-
form an economic and fiscal impact analysis of the city's proposed economic incentive agree-
ment with Pancor. (A presentation on that analysis was delivered to the city council when it
convened on December 7, 2011 and a copy of that analysis is attached.) Incentis determined
that Pancor's development will ultimately generate 71 new jobs. It also found that the annual
economic impact of Pancor's project is approximately $14 million for the Elgin economy. This
figure includes the indirect impact other industries such as the food, medical and banking in-
dustries will derive from the presence of these new employees. The Incentis analysis also pro-
jected that the city will derive approximately $600,000 in new property, sales and other taxes
from Pancor's development through 2015. The Incentis analysis demonstrates that the city's
return on its $78,000 in impact and building fee waivers will more than be recovered with the
projected $600,000 in tax revenue over the next four years and the approximately $14 million
in annual economic activity that will be generated from the presence of Pancor's spec devel-
opment.
J fir►
2
BUDGET IMPACT
FUND(S) ACCOUNT(S) PROJECT#(S) AMOUNT AMOUNT
BUDGETED AVAILABLE
NA NA NA NA NA
LEGAL IMPACT
None.
ALTERNATIVES
The city council may choose not to enter into an economic incentive agreement with Pancor
Construction & Development, LLC.
NEXT STEPS
Execute the economic incentive agreement with Pancor Construction & Development, LLC.
Originators: Richard G. Kozal, Assistant City Manager
Final Review: Colleen Lavery, Chief Financial Officer
William A. Cogley, Corporation Counsel/Chief Development Officer
Sean R. Stegall, City Manager
ATTACHMENTS
A: Economic Incentive Agreement with Pancor Construction & Development, LLC
B: Incentis Fiscal Impact Analysis November 2011
3
, •
ECONOMIC INCENTIVE AGREEMENT
This Economic Incentive Agreement (the "Agreement") is made and entered into
as of this 11th day of January 2012, by and between the City of Elgin, an Illinois munici-
pal corporation (hereinafter referred to as the "City"), and Pancor Construction & Devel-
opment, LLC, an Illinois corporation ("Pancor").
WHEREAS, Pancor is a fully integrated real estate developer, investor, contrac-
tor and management company actively engaged in developing and acquiring office and
industrial properties in the Chicago metropolitan area, and:
WHEREAS, during the last 25 years, Pancor has successfully completed the de-
velopment of millions of square feet of office and industrial buildings at Illinois locations
such as Elgin, Addison, Bensenville, Bolingbrook, Carol Stream, Glendale Heights, Na-
perville, Oakbrook Terrace, Schaumburg, St. Charles, Tinley Park and Vernon Hills,
and;
WHEREAS, Elgin has a limited supply of industrial and commercial building
space and is not able to effectively compete for companies seeking to relocate or for
existing businesses to expand into more efficient facilities, and;
WHEREAS, to induce Pancor into constructing a new commercial and industrial
building with a thirty-foot clear ceiling height totaling 167,000 square feet at 1385 Made-
line Lane ("Subject Project") to keep the City competitive in the commercial and indus-
trial property metropolitan Chicago real estate market, the City will waive a portion of the
cost for the impact and other development fees associated with the construction of a
new industrial and commercial building, and;
WHEREAS, Pancor would not have been inclined to proceed with the construc-
tion of a speculative commercial and industrial building development in Elgin without
certain economic development assistance from the City; and
WHEREAS, section 8-11-20 of the Illinois Municipal Code (65 ILCS 5/8-11-20)
authorizes municipalities including the City to enter into economic incentive agreements
relating to the development or redevelopment of lands within the corporate limits of a
municipality; and
WHEREAS, the City is a home rule unit authorized to exercise any power and
perform any function relating to its government and affairs;
WHEREAS, economic incentive agreements including the economic incentive
agreement as provided for in this agreement pertain to the government and affairs of
the City; and
WHEREAS, the real property for the Subject Property has remained vacant for at
(Pk'
least one (1) year; and
WHEREAS, the Subject Project is expected to create job opportunities within the
City; and
WHEREAS, the Subject Project will serve to further the development of adjacent
areas; and
WHEREAS, Pancor meets high standards of credit worthiness and financial
strength; and
WHEREAS, the Subject Project will strengthen the commercial and industrial
sector of the City; and
WHEREAS, the Subject Project will enhance the tax base of the City; and
WHEREAS, this agreement is made in the best interests of the City.
NOW, THEREFORE, for and in consideration of the mutual promises and under-
takings contained herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1. Recitals. The foregoing recitals are incorporated into this Agreement in their
entirety.
2. Subject Project. Pancor, at its cost, shall develop the Subject Project. The de-
velopment of the Subject Project shall conform in all respects with all applicable legal
requirements, including, but not limited to, city ordinances and codes, the terms of this
Agreement, or as otherwise directed by the City as is necessary to comply with ordin-
ances, building codes or other requirements of law. Except as otherwise provided in this
Agreement, all costs and expenses relating to the Subject Project shall be the responsi-
bility of and shall be paid for by the Pancor.
3. Economic Incentives. In consideration for Pancor's undertaking of the Subject
Project, the City agrees to provide economic incentives to the Pancor to be used by the
Pancor solely and only for the Subject Project. Such economic incentives shall consist
of and be distributed to the Pancor as follows:
Partial Waiver of Impact Fees Building Permit Fees for the Subject Project. The
City agrees to waive and not require Pancor to pay forty percent (40%) of the im-
pact fees and building permit fees which would otherwise be due and payable to
the City in connection with the establishment of the Subject Project provided that
said waiver amount does not exceed $115,000. Said waiver shall not apply to
any fees requires for tenant buildouts or interior upfits for the Subject Project. Any
and all impact fees or other fees which may be due and owing any other govern-
r
r ,
mental entity other than the City shall be paid by Pancor. The City's reimburse-
ment of any impact fees or building permit fees paid by Pancor for the Subject
Project shall be paid to Pancor within thirty (30) days of the Pancor obtaining a
certificate of occupancy from the City for the Subject Project.
4. Miscellaneous.
A. That this Agreement shall not be deemed or construed to create an employ-
ment, joint venture, partnership, or other agency relationship between
the parties hereto.
B. 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 PANCOR:
City of Elgin
150 Dexter Court
Elgin, IL 60120-5555
Attention: Richard G. Kozal,
Assistant City Manager
411)
With a copy of any such notice to:
City of Elgin
150 Dexter Court
Elgin, IL 60120-5555
Attention: William A. Cogley,
Corporation Counsel
C. That the failure by a party to enforce any provision of this Agreement against
the other party shall not be deemed a waiver of the right to do so thereafter.
D. 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.
E. That this Agreement contains the entire agreement and understanding of the
parties hereto with respect to the subject matter as set forth herein, all prior agreements
and understandings having been merged herein and extinguished hereby.
F. That this Agreement is and shall be deemed and construed to be a joint and
collective work product of the City and Pancor 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, vague-
ness or conflict, if any, in the terms or provisions contained herein.
G. That this Agreement is subject to and shall be governed by the laws of the
State of Illinois.
H. 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. The City may
record a Memorandum of Agreement placing of record the terms and provisions of this
Agreement.
I. The City and Pancor 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 writ-
ten notice to the defaulting party stating that they are giving the defaulting party thirty
(30) days within which to cure such default. If the default shall not be cured within the
thirty (30) 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.
J. If either party fails or refuses to carry out any of the material covenants or obli-
gations hereunder, the other party shall be entitled to pursue any and all available re-
medies as specified herein or otherwise available at law, equity or otherwise. Notwith-
standing 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 3 of this Agreement, no action shall be commenced by the Pancor
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. In the event any action is brought by the City against Pancor or its
permitted assigns with respect to this Agreement and the City is the prevailing party in
such action, the City shall also be entitled to recover from Pancor reasonable interest
and reasonable attorney's fees. Notwithstanding anything to the contrary stated herein
or otherwise, PANCOR'S AGGREGATE LIABILITY UNDER THIS AGREEMENT AND
IN CONNECTION WITH ITS RECEIPT OF THE ECONOMIC INCENTIVE DESCRIBED
HEREIN SHALL BE EXPRESSLY LIMITED TO THE AMOUNTS RECEIVED BY PAN-
COR FROM THE CITY IN CONNECTION WITH THIS AGREEMENT AND SUCH
ECONOMIC INCENTIVE. Pancor shall have no other liability whatsoever, whether
based on breach of contract, negligence, strict liability or any other claim and under no
circumstances shall Pancor be liable for lost profits or revenues, special incidental, indi-
rect, consequential or exemplary damages incurred by the City or any third party.
K. Time is of the essence of this Agreement.
L. This Agreement shall be construed, and the rights and obligations of the City
and Pancor hereunder shall be determined in accordance with the laws of the State of
Illinois without reference to its conflict of laws rules.
C
M. No past, present or future elected or appointed official, officer, employee, at-
torney, agent or independent contractor of the City shall be charged personally or held
contractually liable under any term or provision of this Agreement including, but not li-
mited to, because of their negotiation, approval, execution or attempted execution of
this Agreement.
N. Notwithstanding any other provisions of this Agreement, it is expressly agreed
and understood by Pancor and the City that in connection with the performance of this
Agreement, that Pancor shall comply with all applicable federal, state, city and other
requirements of law including, but not limited to, any applicable requirements regarding
prevailing wages, minimum wage, workplace safety and legal status of employees.
Without limiting the foregoing, Pancor hereby certifies, represents and warrants to the
City that all of Pancor's employees and/or agents who will be employed for the Subject
Project shall be legal residents of the United States. Without limiting the foregoing, and
notwithstanding anything to the contrary in this Agreement, Pancor and its contractors
and subcontractors shall comply with the Prevailing Wage Act in all respects relating to
the Subject Project. The City shall have the right to audit any records in the possession
or control of the Pancor to determine the Pancor's compliance with the provisions of this
section. In the event the City proceeds with such an audit, the Pancor shall make avail-
able to the City the Pancor's relevant records at no cost to the City. Pancor shall also
pay any and all costs associated with any such audit. If so desired by Pancor, the audit
shall, to the extent permitted by law, be subject to reasonable confidentiality restrictions
set forth in a confidentiality agreement agreed to by the parties. The provisions of this
section shall survive any termination, completion and/or expiration of this Agreement.
O. Pancor, on behalf of itself and its respective successors, assigns and grantees
hereby acknowledges the propriety, necessity and legality of all of the terms and provi-
sions 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 any of the terms and provi-
sions 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 main-
tain any legal action or other defenses against the City with respect to any challenges of
the terms and provisions of this Agreement. The provisions of this section shall survive
any termination, completion and/or expiration of this Agreement.
IN WITNESS WHEREOF, the City and Pancor have executed this Agreement on
the date and year first written above.
CITY OF ELGIN, PANCOR, CONSTRUCTION & DEVELOP-
MENT,
an Illinois municipal corporation LLC
A)
t By` By:.
David J. Kaptain, Mayor
Its:
Attest:
Kimberly Dewis, City Clerk
r
I .
group
Incents.
Incentives and credits for grmilgY busirt
Elgin Spec Industrial Inducement
Program Economic and Fiscal Impact
Analysis
December 2011
Commissioned By: The Elgin Development Group
incentis Group, LLC
1304 West Washington Blvd
Chicago, IL 60607
1
Executive Summary
,icentis Group LLC was commissioned by the Elgin Development Group to assess the economic and fiscal
impacts on the City of Elgin of the construction period impacts for a project utilizing the Elgin Speculative
Industrial Inducement Program.
Elgin has a very limited supply of quality industrial/commercial building space. Without some new, modern
industrial space being brought to the market,Elgin will not be able to compete for companies looking to
relocate here or for existing businesses to expand into more efficient facilities. These were among the key
findings of a study prepared by Lee and Associates entitled,"Industrial Market Analysis—North Kane
Submarket."The study was presented to the Chamber Board in April, 2011, by John Cassidy and Ken Franzese,
principals of Lee Associates.
To avoid the possibility of companies' by-passing Elgin because of the lack of available quality space,the EDG
formed a task force to look into creating a program to spur new"spec" development.
The task force devised a"spec" building catalyst program consisting of the following guidelines:
1. Program Scope: Program limited to two eligible projects.
2. Project Size: Approximately 150,000 s.f. with 30 foot clear ceiling heights, exterior docks.
3. Employment: The developer will use best efforts to employ Elgin union locals during the
construction of the project.
4. Timeliness: Developer must start project construction within 60 days of plan approval during
designated construction season (April—October)or pay the City's waived fees. (see#5)The building
must be completed in 12 months from start, subject to weather conditions.
5. Inducements:
(A) City of Elgin will waive 40%of the recapture,public safety and capital fees. For the two
"spec"buildings, it is estimated the fees would total $390,000, making the City's inducement
(fees waived) $156,000 for the two structures.
(B)The estimated property tax and fee revenues to the City from the spec buildings are outlined
in the attached exhibit. Taken over a five year period,the net benefit to the city, if both buildings
were constructed, is figured to be at$596,400.
(C) The City will "fast track"plan review of the spec building as well as the build-out involving
high priority future tenants.
The Economic and Fiscal Impacts Analysis was conducted to estimate the economic and fiscal impacts of the
construction period, for a 160,000 s.f. building estimated to cost$9,600,000, on the Elgin economy. The
economic impacts included in this study are direct, indirect and induced jobs impacts, direct, indirect and
induced earnings impacts, and overall economic activity that are generated by the construction period of the
project. The fiscal impacts include an analysis of the incentives provided by Elgin through the Speculative
Industrial Inducement Program relative to the future direct and indirect taxes that are generated as a result of the
construction period of this project.
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Methodology
In conducting the Economic and Fiscal Impact Analysis, Incentis Group incorporated methodologies that are
A)
highly accepted as reasonable in estimating economic and fiscal impacts associated with a given project or
event. It should be noted,however,that our estimates may differ from actual outcomes resulting from the
project due to a number of events and factors including changes in tax rates, future volatility within the City
economy and its industries and sectors, inflation variances,reliability of tax and data sources,and other
unforeseen factors.
In estimating the economic impacts of the industrial building construction period, including jobs,earnings,and
economic activity, Incentis Group utilized input-output multipliers developed by Minnesota IMPLAN Group
(IMPLAN). IMPLAN is the developer of the IMPLAN economic impact modeling system. IMPLAN's tools
are in use by over 1,000 public and private institutions. The IMPLAN economic multipliers are specific to the
City of Elgin and to the industries/sectors associated with the construction of an industrial building. The
IMPLAN multipliers assist us in estimating the jobs, earnings, and economic activity resulting from the
industrial building construction period. When goods and services are produced in an industry a"multiplier
effect" is created by the demand generated for other goods and services. This demand then dissipates through
other industries and sectors within a given economy until it is immaterial.
In estimating the fiscal impacts of the industrial building construction period upon the City of Elgin, including
direct and indirect tax generation, Incentis Group has applied the appropriate tax rates to the property
assessments and project parameters provided by the City of Elgin. Additionally,where appropriate,we have
utilized the IMPLAN economic impact modeling system to estimate indirect taxes generated in the city
economy as a result of the building construction occurring in Elgin.
Summary of Findings
Su ily s g
The Economic and Fiscal Impact Analysis resulted in the following findings associated with the industrial
building construction period. Details regarding these findings are presented in this Analysis. The Analysis
estimated the annualized impacts of the industrial building construction period on the City of Elgin.
Summary of Economic Impacts
Construction Period Impact
The annual economic impact of the industrial building construction period upon the City of Elgin is
estimated to include annualized economic activity of$14,334,651, the equivalent of 107 full-time jobs on an
annualized basis and$6,088,790 of annualized employee earnings.
Indirect/Induced
Direct Effect Multiplier Effect Total Effect
Employment 71 1.5070 36 107
Construction Period Employee Compensation $ 4,369,600 1.3934 $ 1,719,190 $ 6,088,790
Construction Period Economic Output $ 9,600,000 1.4932 $ 4,734,651 $ 14,334,651
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Economic Activity
economic activity at the city level is an estimate of the generation of output by the industrial building during the
construction period and the flow through of these dollars within the city economy. We estimate that this total
economic activity generated by the industrial building construction period to be $14,334,651. This amount
includes the direct, indirect, and induced effects of the industrial building construction upon the City of Elgin
economy.
Top 10 Industries Affected by Construction Period Indirect/Induced Economic Output
Description Direct Effect Multiplier Indirect/Induced Total Effect
Effect
�'��"1Y F ;-
Wholesale trade businesses - - $ 491,732 $ 491,732
Imputed rental activity for owner-occupied dwellings - - $ 458,657 $ 458,657
Architectural,engineering,and related services - - $ 397,143 $ 397,143
Private hospitals - - $ 287,041 $ 287,041
Offices of physicians,dentists,and other health practitioners - - $ 223,410 $ 223,410
Monetary authorities and depository credit intermediation activities - - $ 174,383 $ 174,383
Nondepository credit intermediation and related activities - - $ 151,364 $ 151,364
Food services and drinking places - - $ 148,478 $ 148,478
Real estate establishments - - $ 134,960 $ 134,960
All Other Industries - - $ 2,267,483 $ 11,867,483
Jobs Impact
The Jobs Impact within the City of Elgin is an estimate of the direct full-time equivalent jobs generated by the
industrial building construction during the construction period plus the effects of these jobs upon secondary job
generation in Elgin. The industrial building construction period is expected to create 71 full-time equivalent
direct jobs within the City of Elgin resulting in the generation of 36 indirect and induced jobs within the City for
a total of 107 full-time equivalent jobs.
Top 10 Industries Affected by Construction Period Indirect/Induced Employment
Description Direct Effect Multiplier Indirect/Induced Total Effect
Effect
Architectural,engineering,and related services - - 3 3
Wholesale trade businesses - - 3 3
Food services and drinking places - - 3 3
Private hospitals - - 2 2
Offices of physicians,dentists,and other health practitioners - - 2 2
Employment services - - 1 1
Real estate establishments - - 1 1
Retail Nonstores-Direct and electronic sales - - 1 1
Nursing and residential care facilities - - 1 1
All Other Industries - - 20 91
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Earnings Impact
The Earnings Impact within the City of Elgin is an estimate of the direct compensation generated by the 411)
construction period jobs during the construction period and the effects of these jobs upon secondary earnings
generation. The construction period earnings for the direct employees referenced above are approximately
$4,369,600. We estimate that this compensation will result in $1,719,190 of additional indirect and induced
household earnings in Elgin during the construction period, for a total of$6,088,790 in construction period
earnings.
Top 10 Industries Affected by Construction Period Indirect/Induced Employee Compensation
Description Indirect/Induced
p Direct Effect Multiplier Total Effect
Effect
ie €( a6p,:iW. V e a..' ter'O a t.-_ - ,a ° r -> ri ::P1Z a ): h ' o;
Architectural,engineering,and related services - - $ 222,373 $ 222,373
Wholesale trade businesses - - $ 202,435 $ 202,435
Private hospitals - - $ 130,136 $ 130,136
Offices of physicians,dentists,and other health practitioners - - $ 127,258 $ 127,258
Food services and drinking places - - $ 54,232 $ 54,232
Transport by truck - - $ 47,945 $ 47,945
Monetary authorities and depository credit intermediation activities - - $ 43,925 $ 43,925
Retail Stores-Motor vehicle and parts - - $ 37,282 $ 37,282
Nursing and residential care facilities - - $ 34,206 $ 34-206
All Other Industries - - $ 819,398 $ 5,188,998
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Summary of Fiscal Impacts
rite fiscal impact of the industrial building construction project upon the City of Elgin over the next 15 years
is estimated to include additional annual direct tax collections of$60,870 which will directly benefit the city
of Elgin. This entails property taxes that will be generated from the building itself and does not include any
additional taxes that may be generated by business activity if the building is productively utilized. The City of
Elgin will provide a total of$78,000 of incentives from impact and permit fee waivers of which none is
provided as cash (see appendix A). The net present value ("NPV") of these new direct revenues using a
discount rate of 6% over a period of 15 years is estimated to be$714,597 compared to an NPV of$73,585
offered to the builder in the form of incentives. Additionally, annual property taxes collected by other local
jurisdictions from this building are estimated to total$182,050(see appendix B).
Property Tax Benefit
The increase in property tax collections was estimated by calculating the property tax on 100%of the
construction value of the building. No real estate price inflation is assumed in the analysis.
2012 Acutal Tax 2014 Estimated Tax Total Increase in Property Tax Benefits
Estimated Constuction Cost NA $ 9,600,000
rf
%of Construction Value NA 100%
Estimated Value Land $ - $ -
Land Assessed Value $ - $ 3,168,000.00
Total Propety Tax Benefit $ - $ 242,919.90 $ 242,919.90
Dundee Township 0.17%! $ - $ 5,346.60 $ 5,346.60
Elgin City 1.92% $ 60,870.05 60,870.05
Elgin Comm College 509 0.44% $ $ 13962 42 $ 13,962 42
Dundee Twp Library 0.15% $ - $ 4,612.92 $ 4,612.92
Indirect Business Tax Benefit
Indirect business taxes are the tax revenues collected by the City of Elgin as a result of the increase in indirect
jobs,earnings and economic activity during the construction period. The estimated increase in indirect
business taxes is presented for the construction period below. Additional annual indirect business taxes would
be generated if the building is productively utilized for business activity.
Indirect Business Tax 2012
Sales Tax $ 30,186
Property Tax $ 35,416
Other Taxes $ 3,207
Fees $ 3,119
Estimated Total Indirect Business Taxes '$ 72,852
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Appendix A.
•
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Total
Estimated Direct Tax and Fee Collections After Incentives
Increase in Property Tax Benefit(Direct City Portion) $ • $ 30,435 $ 60,870 S 60,870 $ 60870 $ 60,870 $ 60,870 $ 60,870 $ 60,870 $ 60,870 $ 60,870 $ 60,870 $ 60,870 $ W,870 $ 60,870 $ 60,870 $ 882,616
Increase in Sales Tax Benefit $ • S • $ • $ - $ - $ - $ • $ • $ - $ - S - $ • S • $ - S - $ • $ -
Increase in TelecommuniwtionsTax Benefit $ - $ • $ • $ - $ - $ - $ • $ - $ • $ - $ - $ - $ - $ - $ - $ • $ •
Increase in Hotel Tax Benefit $ • $ - $ $ - $ - $ • $ - S • $ - $ - $ - $ • 5 - $ - $ - $ - 5 -
Impact Fees $ 79,000 $ - $ - S - $ - $ - $ - $ - $ - S - $ - $ - $ - $ - $ - $ • $ 79,000
Permit and Plan Check Fees $ 116,000 $ • $ • $ - $ • $ - $ - $ • $ - $ - $ - $ • $ • $ - $ • $ • $ 116,000
Total Estimated Direct Tax Collections $ 195,000 $ 30,435 $ 60,870 $ 60,870 $ 60,870 $ 60,870 $ 60,870 $ 60,870 $ 60,870 $ 60,870 $ 60,870 $ 60,870 $ 60,870 $ 60,870 $ 60,870 $ 60,870 $ 1,077,616
Incentives to Company(Cash)
Jobs Benefit $ - S - $ - $ - $ - $ - $ - $ • $ - $ - $ • $ • $ • $ - $ • $ - $ -
Total Incentives to Company(Cash) $ - $ • $ $ - $ • $ - $ $ • $ - $ - S - S - $ • S • S • $ • S
IetRevenue
Loss)tRt[ C !„ .g ;1.,: 1 S i i a
g j p 8 6,8E 1 . B fk : rc { $ YA, .I 4.,: "
Incentives to Company(Foregone Revenue)
Impact Fee Waiver $ (31,600) $ • $ - $ • $ - $ - $ • $ - $ - $ - $ - $ • $ - $ - $ • $ - $ (31,600)
Permit Fee waiver $ 146,4001 $ - $ • $ - $ - $ - $ - $ • S • $ - $ - $ • $ • $ - $ • $ - $ (46,400)
Other Incentives $ - $ - $ - $ - $ - $ • $ - $ • $ - $ - S - $ • $ - $ - $ - $ - S -
Total Incentives to Company(Foregone Revenue) $ (78,000) $ - $ - $ • $ - $ - $ - $ • $ • $ - $ - $ 3p°- $ • $ - $ - $ - $ (78,000)
y1`y ,Ye,S.; ?pz •'.:..6 { P fi .,.��.,
NetReventtej(loss taifiBCt erifaae oneRnue �`�OGb�,. � 475'.:. 698�l. 3 .f:r i_ � �: P r.l.�$�_, _+-.�_,w�D*- $. •'-. 870, -��`_ _a, t.;• :': ' _.&A1170<�
Estimated Indirect Business Taxes $ 72,852 $ - $ • $ - $ • $ - $ - $ - $ $ $ • $ - $ - $ • $ - $ - $ 72,852
$ -
3a� ;i l.. +Y 3a' oiAff.±f ksioii °'. $'„ rW G: .{ i i?F '� �f ,..1..i: 1 .6 1 , V 60 � �1 ,. .0 I.wA v+v.,;..1 1 'P aL4 ,i l .6 t,�` ;.,
Ni:tRenefltlesstottie *it ,�litect�uslnesztalt,,.�� ;;_ .$�.>••�,�a, .„w ,- �°
NPV Discount Rate 6.00%
NPV of Direct Revenues $714,597
NPV of Direct Incentives ($73,585)
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Appendix B.
Estimated Property Tax Collections(AJIOther Taxing Jurisdictions) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Total
Dundee Township $ - $ 5,346.60 $ 5,346.60 $ 5,346.60 $ 5,346.60 $ 5,346.60 $ 5,346.60 $ 5,34660 $ 5,346.60 $ 5,346.60 $ 5,346.60 $ 5,346.60 $ 5,346.60 $ 5,346.60 $ 5,346.60 $ 5,346.60 $ 80,199.03
Dundee Twp Road District $ - $ 2,452.63 $ 2,452,63 $ 2,452.63 $ 2,452,63 $ 2,452.63 $ 2,452,63 $ 2,452.63 $ 2,452.63 $ 2,452.63 $ 2,452.63 $ 2,452.63 $ 2,452.63 $ 2,452.63 $ 2,452.63 $ 2,452.63 $ 36,189.51
School District 300 $ • $141,340.45 $141,340.45 $141,340.45 $141,340.45 $141,340.45 $141,340.45 $141,340,45 $141,340.45 $141,340.45 $141,340.45 $141,340.45 $141,340.45 $141,340.45 $141,340.45 $141,340.45 $2,120,106.70
Elgin Comm.College 509 $ - $ 13,962.42 $ 13,962.42 $ 13,962.42 $ 13,962.42 $ 13,962.42 $13,962.42 $ 13,962.42 $ 13,962.42 $ 13,962.42 $ 13,962.42 $ 13,962.42 $13,962.42 $ 13,962.42 $ 13,962.42 $ 13,962.42 $ 209,436.32
Dundee Twp Prk District $ - $13,468.63 $13,468.63 $ 13,468.63 $13,468.63 $13,468.63 $ 13,468.63 $13,468.63 $13,468.63 $ 13,468.63 $ 13,468.63 $ 13,468.63 $13,468.63 $13,468.63 $ 13,468.63 $13,468.63 $ 202,029.38
Dundee Twp library $ - $ 4,612.92 $ 4,612.92 $ 4,612.92 $ 4,612.92 $ 4,612.92 $ 4,612.92 $ 4,612.92 $ 4,612.92 $ 4,612.92 $ 4,612.92 $ 4,612.92 $ 4,612.92 $ 4,612.92 $ 4,612.92 $ 4,612.92 $ 69,193.81
Fox River Water Reclam District $ - $ 86619 $ 866.19 $ 866.19 $ 866.19 $ 866.19 $ 866,19 $ 866.19 $ 866.19 $ 866.19 $ 866.19 $ 866.19 $ 86619 $ 866.19 $ 866.19 $ l...19 $ 12,992.92
Total Estimated Tax Collections by Other Taxing Jurisdictions $ - $182,049.85 $182,049.85 $182,049.85 $182,049.85 $182,049.85 $182,049.85 $182,049.85 $182,049.85 $182,049.85 $182,049.85 $182,049.85 $182,049.85 $182,049.85 $182,049.85 $182,049.85 $2,730,747.73
8
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THE CITY IN THE SUBURBS-
DATE: February 8, 2012
TO: Rick Kozal, Assistant City Manager and Chief Operating Officer
FROM: Kimberly Dewis, City Clerk
SUBJECT: Resolution No. 12-06, Adopted at the January 11, 2012, Council Meeting
Enclosed you will find the agreement listed below. Please distribute this agreement to the other
party and keep a copy for your records if you wish. If you have any questions please feel free to
contact our office 847-931-5660 and we will do our best to assist you. Thank you.
• Economic Incentive Agreement with Pancor Construction & Development, LLC
(1385 Madeline Lane)