13-184 Resolution No. 13-184
RESOLUTION
AUTHORIZING EXECUTION OF AN ECONOMIC INCENTIVE AGREEMENT
WITH RON HOPKINS FORD, INC.
(1045 East Chicago Street)
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 Ron Hopkins Ford, Inc. on
behalf of the City of Elgin for economic development assistance in connection with the
development of 1045 East Chicago Street, a copy of which is attached hereto and made a part
hereof by reference.
s/ David J. Kaptain
David J. Kaptain, Mayor
Presented: November 6, 2013
Adopted: November 6, 2013
Omnibus Vote: Yeas: 9 Nays: 0
Attest:
s/Kimberly Dewis
Kimberly Dewis, City Clerk
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ECONOMIC INCENTIVE AGREEMENT
This Economic Incentive Agreement (the "Agreement") is made and entered into as
of this 6th day of November 2013, by and between the City of Elgin, an Illinois municipal
corporation (hereinafter referred to as the "City"), and Ron Hopkins Ford, Inc., a Delaware
corporation ("Ron Hopkins Ford").
WHEREAS, Ron Hopkins Ford is an Elgin-based new and used car automobile
dealership; and
WHEREAS, Ron Hopkins Ford has been operating at 1045 East Chicago Street
since 1981; and
WHEREAS, Ron Hopkins Ford employs approximately 45 employees; and
WHEREAS, Ron Hopkins Ford generated approximately $150,000 in sales tax rev-
enue for the city in 2012; and
WHEREAS, Ron Hopkins Ford is seeking to invest approximately $1 million to reno-
vate the exterior and interior of its approximately 35,000 square-foot dealership ("Subject
Project"); and
WHEREAS, to induce Ron Hopkins Ford into proceeding with the Subject Project,
the City will waive the building permit and zoning fees associated with the renovation; and
WHEREAS, Ron Hopkins Ford would not have been inclined to proceed with the
Subject Project 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 the
City; and
WHEREAS, Ron Hopkins Ford meets high standards of credit worthiness and fi-
nancial strength; and
WHEREAS, the Subject Project will strengthen the East Chicago Street commercial
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. RON HOPKINS FORD, at its cost, shall develop the Subject Pro-
ject. The development of the Subject Project shall conform in all respects with all applica-
ble 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 or-
dinances, 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 respon-
sibility of and shall be paid for by RON HOPKINS FORD.
3. Economic Incentives. In consideration for RON HOPKINS FORD's undertaking of
the Subject Project, the City agrees to provide economic incentives to RON HOPKINS
FORD to be used by RON HOPKINS FORD solely and only for the Subject Project. Such
economic incentives shall consist of and be distributed to RON HOPKINS FORD as fol-
lows:
"Fast-Track" Permitting Process and Waiver of Building Permit and Zoning Fees for
the Subject Project. The City agrees to conduct a "fast-track" permitting process for
the Subject Project. The City also agrees to waive and not require RON HOPKINS
FORD to pay any building permit or zoning fees which would otherwise be due and
payable to the City in connection with the establishment of the Subject Project in a
total amount not to exceed fifteen thousand dollars ($15,000.00). The provisions of
this section are intended and shall be construed to apply only to the building permit
and zoning fees. Any and all impact fees or other fees which may be due and owing
to the City and/or any other governmental entity other than the City shall be paid by
RON HOPKINS FORD. The City's reimbursement of any building permit or zoning
fees paid by RON HOPKINS FORD for the Subject Project shall be paid to RON
HOPKINS FORD within thirty (30) days of RON HOPKINS FORD obtaining a certifi-
cate of reoccupancy from the City for the Subject Project.
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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 parry 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 RON HOPKINS FORD:
City of Elgin Mr. Ronald Hopkins
150 Dexter Court President
Elgin, IL 60120-5555 Ron Hopkins Ford, Inc.
1045 East Chicago Street
Attention: Richard G. Kozal Elgin, IL 60120
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.
F. That this Agreement is and shall be deemed and construed to be a joint and col-
lective work product of the City and RON HOPKINS FORD 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.
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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 RON HOPKINS FORD 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 obliga-
tions hereunder, the other parry 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 RON HOPKINS FORD
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 RON HOPKINS
FORD 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 RON HOPKINS FORD
reasonable interest and reasonable attorney's fees. Notwithstanding anything to the con-
trary stated herein or otherwise, RON HOPKINS FORD'S AGGREGATE LIABILITY UNDER
THIS AGREEMENT AND IN CONNECTION WITH ITS RECEIPT OF THE ECONOMIC IN-
CENTIVE DESCRIBED HEREIN SHALL BE EXPRESSLY LIMITED TO THE AMOUNTS RE-
CEIVED BY RON HOPKINS FORD FROM THE CITY IN CONNECTION WITH THIS
AGREEMENT AND SUCH ECONOMIC INCENTIVE. RON HOPKINS FORD shall have no
other liability whatsoever, whether based on breach of contract, negligence, strict liability
or any other claim and under no circumstances shall RON HOPKINS FORD 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
RON HOPKINS FORD hereunder shall be determined in accordance with the laws of the
State of Illinois without reference to its conflict of laws rules.
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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 RON HOPKINS FORD and the City that in connection with the perfor-
mance of this Agreement, that RON HOPKINS FORD shall comply with all applicable fed-'
eral, state, city and other requirements of law including, but not limited to, any applicable
requirements regarding prevailing wages, minimum wage, workplace safety and legal sta-
tus of employees. Without limiting the foregoing, RON HOPKINS FORD hereby certifies,
represents and warrants to the City that all of RON HOPKINS FORD'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, RON HOPKINS FORD 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 RON HOPKINS FORD to
determine RON HOPKINS FORD's compliance with the provisions of this section. In the
event the City proceeds with such an audit, RON HOPKINS FORD shall make available to
the City RON HOPKINS FORD's relevant records at no cost to the City. RON HOPKINS
FORD shall also pay any and all costs associated with any such audit. If so desired by
RON HOPKINS FORD, the audit shall, to the extent permitted by law, be subject to rea-
sonable 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 ex-
piration of this Agreement.
O. RON HOPKINS FORD, 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 provi-
sions of this Agreement and hereby agrees and covenants on behalf of itself and its suc-
cessors, assigns and grantees of the Subject Property, not to sue the City or maintain any
legal action or other defenses against the City with respect to any challenges of the terms
and provisions of this Agreement. The provisions of this section shall survive any termina-
tion, completion and/or expiration of this Agreement.
IN WITNESS WHEREOF, the City and RON HOPKINS FORD have executed this
Agreement on the date and year first written above.
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CITY OF ELGIN, RON HOPKINS FORD, INC.
By: By:
ADavid J. taro, ayor ,( /�
Its:Al—I 91-
Attest:
K)mbddy:DevAs. C Clerk
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