14-74 Resolution No. 14-74
RESOLUTION
AUTHORIZING EXECUTION OF A DEVELOPMENT AGREEMENT WITH
MULTIFILM PACKAGING CORPORATION FOR THE DEVELOPMENT OF
1040 N. McLEAN BOULEVARD AND 1700 N. McLEAN BOULEVARD
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 a Development Agreement on behalf of the City of Elgin with Multifilm
Packaging Corporation for the development of 1040 N. McLean Boulevard and 1700 N. McLean
Boulevard, a copy of which is attached hereto and made a part hereof by reference.
s/David J. Kaptain
David J. Kaptain, Mayor
Presented: June 11, 2014
Adopted: June 11, 2014
Omnibus Vote: Yeas: 9 Nays: 0
Attest:
s/Kimberly Dewis
Kimberly Dewis, City Clerk
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DEVELOPMENT AGREEMENT
This Development Agreement (the "Agreement") is made and entered into as of this
11 th day of June 2014, by and between the City of Elgin, an Illinois municipal corporation
(hereinafter referred to as the "City"), and Multifilm Packaging Corporation, an Illinois cor-
poration ("Multifilm").
WHEREAS, Multifilm is a is a fully-integrated manufacturer of flexible packaging
used for candy wrappers and other confections, snack foods, coffee and the like; and
WHEREAS, Multifilm serves the North American market from its Elgin-based head-
quarters at 1040 N. McLean Boulevard and has been management-owned and operated
since 2008; and
WHEREAS, Multifilm's environmental stewardship is a hallmark of its business; and
WHEREAS, Multifilm's in-house staff designed the manufacturing facility's geother-
mal process cooling and HVAC system, ranking Multifilm among the least energy-
consuming converters; and
WHEREAS, Multifilm's products are FDA-approved and completely free of BPA and
lead, and Multifilm additionally offers materials that are PVC-free; and
WHEREAS, facility adheres to a zero waste-to-landfill protocol; and
WHEREAS, Multifilm's environmental initiatives have been lauded by Elgin's Sus-
tainability Commission; and
WHEREAS, Multifilm is seeking to expand its existing Elgin operations at 1040 N.
McLean Boulevard and additionally, to purchase a 41,5000 square-foot facility at 1700 Big
Timber Road and construct an approximately 30,000 square-foot addition to that facility
that will ultimately create approximately thirty new manufacturing jobs ("Subject Project");
and
WHEREAS, to induce Multifilm into proceeding with the Subject Project, the City will
provide, to the extent permitted by law, reasonably necessary zoning relief for the Subject
Project consistent with the regulations established in the city's zoning ordinance in Title 19
of the Elgin Municipal Code; and
WHEREAS, Multifilm would not have been inclined to proceed with the Subject Pro-
ject in Elgin without certain economic development assistance from the City; and
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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, development agreements pertain to the government and affairs of the
City; and
WHEREAS, the real property at 1700 Big Timber Road has remained vacant for at
least one 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, Multifilm 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. The foregoing recitals are incorporated into this Agreement in their
entirety.
2. Multifilm, at its cost, shall develop the Subject Project. The development of the
Subject Project shall conform in all respects with all applicable legal requirements, includ-
ing, but not limited to, city ordinances and codes, the terms of this Agreement, or as oth-
erwise directed by the City as is necessary to comply with ordinances, building codes or
other requirements of law. All costs and expenses relating to the Subject Project shall be
the responsibility of and shall be paid for by Multifilm.
3. In consideration for Multifilm's undertaking of the Subject Project, the City agrees
to provide development incentives to Multifilm to be used by Multifilm solely and only for
the Subject Project. Such development incentives shall consist of and be distributed to
Multifilm as follows:
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Zoning Relief for 1700 Big Timber Road and 1040 N. McLean Boulevard
The city will agree to rezone the PAB zoning classification for the parcel at 1700 Big
Timber Road so that Multifilm's manufacturing operation is classified as a permitted
use within that zoning district. The city will also agree to grant any reasonably nec-
essary variances from the zoning ordinance's off-street parking, setback and other
site design requirements that may be necessitated by the construction of the
30,000 square-foot addition to the building on the parcel and any variances or other
zoning relief necessary for the expansion of the existing facility at 1040 N. McLean
Boulevard, consistent with the regulations established in the city's zoning ordinance
in Title 19 of the Elgin Municipal Code and Illinois law.
"Fast-Track"Permitting Process
The city will conduct a "fast-track" permitting process for Multifilm in connection
with (1) the proposed $6 million expansion of Multifilm's existing facility at 1040 N.
McLean Boulevard, and (2) the establishment of a new $8-10 million manufacturing
facility at 1700 Big Timber Road, including the construction of a 30,000 square-foot
addition to that building.
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 MULTIFILM:
Richard G. Kozal 011e Mannertorp
Assistant City Manager Chief Executive Officer
City of Elgin Multifilm Packaging Corporation
150 Dexter Court 1040 N. McLean Boulevard
Elgin, IL 60120-5555 Elgin, IL 60123-1206
With a copy of any such notice to:
William A. Cogley
Corporation Counsel and Chief Development Officer
City of Elgin
150 Dexter Court
3 �- e7
Elgin, IL 60120-5555
C. 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.
D. 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.
E. That this Agreement is and shall be deemed and construed to be a joint and col-
lective work product of the City and Multifilm 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.
F. That this Agreement is subject to and shall be governed by the laws of the State
of Illinois.
G. 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 any-
thing to the contrary in this Agreement, no action shall be commenced by Multifilm against
the City for monetary damages. Venue for the resolution of any disputes or the enforce-
ment of any rights pursuant to this Agreement shall be in the Circuit Court of Kane County,
Illinois. Multifilm shall have no other liability whatsoever, whether based on breach of con-
tract, negligence, strict liability or any other claim and under no circumstances shall Multi-
film be liable for lost profits or revenues, special incidental, indirect, consequential or ex-
emplary damages incurred by the City or any third party.
H. Time is of the essence of this Agreement.
I. This Agreement shall be construed, and the rights and obligations of the City and
Multifilm hereunder shall be determined in accordance with the laws of the State of Illinois
without reference to its conflict of laws rules.
J. 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.
K. Multifilm, 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
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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 Multifilm have executed this Agreement on
the date and year first written above.
CITY OF ELGIN, MU CKAGING CORPORATION
By' BY:
David J. Ka ain, Kayor 011e Mannertorp
Its: Chief Executive Officer
Attest:
464 te-
Kimberly Dewis, ity Clerk
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ELGIN
THE CITY IN THE SUBURBS`
DATE: June 18, 2014
TO: Rick Kozal, Assistant City Manager and Chief Operating Officer
FROM: Jennifer Quinton, Deputy City Clerk
SUBJECT: Resolution No. 14-74 Adopted at the June 11, 2014, 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.
• Development Agreement with Multifilm Packaging Corporation for the
Development of 1040 N. McLean Boulevard and 1700 N. McLean Boulevard