14-8 Resolution No. 14-8
RESOLUTION
AUTHORIZING EXECUTION OF AN AGREEMENT
WITH DAVID HUANG REGARDING THE ALFT LANE EXTENSION
AND MASON ROAD IMPROVEMENTS
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 Agreement on behalf of the City of Elgin with David Huang regarding
the Alft Lane extension and Mason Road improvements, a copy of which is attached hereto and
made a part hereof by reference.
s/David J. Kaptain
David J. Kaptain, Mayor
Presented: January 22, 2014
Adopted: January 22, 2014
Vote: Yeas: 9 Nays: 0
Attest:
s/Kimberly Dewis
Kimberly Dewis, City Clerk
AGREEMENT
N s^
This Agreement is made and entered into this `Z day of January, 2014, by and between
the CITY OF ELGIN, an Illinois municipal corporation, (hereinafter referred to as the "City") and
DAVID HUANG, whose principle place of business is 2505 Bath Rd, Elgin, IL. 60124
(hereinafter referred to as "Developer").
WITNESSETH
WHEREAS, Developer is the contract purchaser of the property in an unincorporated area
contiguous to the Elgin corporate limits consisting of approximately Fifty Nine (59+/-) acres
adjoining Mason Road on the north and Alft Lane on the south, and legally described on
Exhibit A attached hereto (such property is hereinafter referred to as the"Subject Property"); and
WHEREAS, Developer intends to annex the Subject Property into the City of Elgin and to
develop the Subject Property by (1) providing for the full reconstruction of Mason Road from its
current terminus westerly to the westerly line of the so-called Plote parcel, for the extension of
Alft Lane from its current terminus northerly to the intersection of the extended Mason Road, and
for the construction of sanitary sewer, water main and storm sewer improvements through and
along such roadways, all pursuant to engineering plans and specifications approved by the City
(collectively the "Roadway Improvements"), and (2) subdividing the Subject Property for the
proposed future construction thereon of a Class A development of industrial and office space
appropriate within the PORI Zoning Classification; and
WHEREAS, the development of the Subject Property is currently estimated to represent a
$5,000,000 investment in land, and a$1,400,000 investment in the Roadway Improvements in the
City of Elgin; and
WHEREAS, in consideration of the Developer's purchase of the Subject Property and the
annexation and development of the Subject Property in the City, including Developer's agreement
to provide for the Roadway Improvements as described herein, Developer has requested that the
City agree to waive a roadway recapture against the Subject Property previously imposed by the
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City and allow the Developer to recapture from benefited properties a portion of its costs for the
proposed Roadway Improvements; and
WHEREAS, it is unlikely the development of the Subject Property will occur at this time
with the imposition of the prior roadway recapture fee against the Subject Property and without
allowing the Developer to recapture from benefited properties a portion of its costs for the
proposed Roadway Improvements; and
WHEREAS, the resulting annexation and development of the Subject Property in the City
will result in an increase in the land available for immediate development, increase the City's tax
base and provide new and additional employment opportunities in the City of Elgin; and
WHEREAS, the Developer has requested the City enter in to this agreement to provide the
Developer certain assurances with respect to recapture fees in advance of the Developer's closing
on the purchase of the Subject Property and in anticipation of a subsequent annexation agreement
and the annexation of the Subject Property into the City of Elgin; and
WHEREAS, the City of Elgin is a home rule unit authorized to exercise or perform any
function relating to its government and affairs; and
WHEREAS, the undertakings of the City as provided herein and resulting in significant
increases in the City of Elgin's tax base and employment opportunities within the City of Elgin
are matters within the government and affairs of the City of Elgin.
NOW, THEREFORE, for and in consideration of the mutual promises and undertakings
contained herein, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows:
1. That the foregoing recitals are incorporated into this agreement in their entirety.
2. That Developer shall provide at its cost and expense for the construction of the
Roadway Improvements through and adjacent to the Subject Property according to the site plan
dated September 6, 2013, prepared by Haeger Engineering, attached hereto as Exhibit B. The
plans and specifications for such Roadway Improvements, including, but not limited to, the
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utilities, street lights, sidewalks and other appurtenances relating thereto to be included with such
Roadway Improvements, shall be pursuant to engineering plans and specifications approved by
the City. Developer shall commence with the construction of such Roadway Improvements on or
before June 1, 2014, and shall complete all such Roadway Improvements on or before December
31, 2014, subject to extensions for force majeure. Developer shall request the approval of the
Village of Gilberts for the reconstruction of Mason Road for that portion of the to be
reconstructed Mason Road which is located within the corporate limits of the Village of Gilberts.
The final engineering plans and specifications as approved by the City will reflect such approvals
by the Village of Gilberts as to that portion of Mason Road to be reconstructed by the Developer.
3. That in consideration of Developer's acquisition of the Subject Property, the
annexation of the Subject Property into the City of Elgin and Developer providing for the
development of the Subject Property, including completing the Roadway Improvements, the City
agrees to and shall waive the recapture payment due to the City from the Subject Property arising
from City of Elgin Ordinance No. G113-06 recorded January 29, 2007 as Document No.
2007KO12459 allocating the costs of certain roadway improvements to benefitted properties. For
purposes of clarification, the Subject Property is identified in such Ordinance No. G113-06 as
parcel 11 and pursuant to such ordinance has a principal recapture amount of $174,000 plus
interest as provided for in such ordinance.
4. That in further consideration of Developer's acquisition of the Subject Property,
the annexation of the Subject Property into the City of Elgin and Developer providing for the
development of the Subject Property, including completing the Roadway Improvements, the City
shall also grant the Developer its usual and customary recapture rights with regard to the
engineering and construction expenses of improvements to Alft Lane and Mason Rd. providing
access to and from nearby properties and adjacent public roadways. The City has determined that
such roadway improvements shall benefit three (3) parcels of land totaling approximately 113
acres in addition to the Subject property as depicted on the attached Exhibit C. The extent of the
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benefit to Parcels 2 and 3, if any, shall be determined and calculated by the City after the
determination of the extent of the reconstruction of Mason Road as to that portion of Mason Road
within the corporate limits of the Village of Gilberts. Any obligations under the City under such
recapture ordinance shall be non-recourse to the City, and shall provide that the City shall not be
responsible in the event there is no development of property contemplated to be benefited by such
improvements or the recapture fees or otherwise uncollected by the Developer for any reason.
5. That in the event Developer fails to complete the Roadway Improvements, on or
before December 31, 2014, as provided in the preceding Paragraph 2 hereof, the parties
understand and agree that the City shall not be obligated to waive the recapture payment due for
the Subject Property pursuant to Ordinance No. G113-06 or adopt any recapture ordinance for the
benefit of the Developer pursuant to this agreement or otherwise.
6. That this agreement shall not be deemed or construed to create an employment,
joint venture,partnership, or other agency relationship between the parties hereto.
7. That all notices or other communications hereunder shall be made in writing and
shall be deemed given if personally delivered, sent by overnight courier or mailed by registered or
certified mail, return receipt requested, to the parties at the following addresses, or at such other
addresses for a party as shall be specified by a like notice and shall be deemed received on the
date which said notice is hand delivered or the second business day following the date on which
so mailed:
TO THE CITY:
City of Elgin
150 Dexter Court
Elgin, IL 60120-5555
Attention: City Manager
TO THE DEVELOPER:
David Huang
2505 Bath Rd.
Elgin,IL 60124
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8. That the failure by a party to enforce any provision of this agreement against the
other party shall not be deemed a waiver of the right to do so thereafter.
9. That this agreement may be modified or amended only in writing signed by both
parties hereto, or their permitted successors or assigns, as the case may be.
10. That this agreement contains the entire agreement and understanding of the parties
hereto with respect to the subject matter as set forth herein, all prior agreements and
understandings having been merged herein and extinguished hereby.
11. That this agreement is and shall be deemed and construed to be a joint and
collective work product of the City and Developer and, as such, this agreement shall not be
construed against the other party, as the otherwise purported drafter of same, by any court of
competent jurisdiction and in order to resolve any inconsistency, ambiguity, vagueness or
conflict,if any, in the terms or provisions contained herein.
12. That the City and Developer agree that, in the event of a default by the other party,
the other party shall, prior to taking any such action 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) day
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.
13. That notwithstanding any other provision of this agreement it is expressly agreed
and understood by the Developer and the City that the development of the Subject Property by the
Developer shall be in accordance and compliance with all applicable federal, state, city and other
requirements of law. Developer shall also at its expense procure all permits and licenses, pay all
charges and fees, and give all other notices necessary and incident to the due and lawful
prosecution of the work necessary to provide for the development of the Subject Property as
described in this agreement.
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14. That this agreement is subject to and shall be governed by the laws of the State of
Illinois. Venue for the resolution of any disputes or the enforcement of any rights pursuant to this
agreement shall be in the Circuit Court of Kane County, Illinois. No action shall be commenced
by the Developer against the City for monetary damages. In the event any legal action is brought
by the City for the enforcement of any of the obligations of Developer in this agreement and the
City is the prevailing party in such action, the City shall also be entitled to recover from
Developer reasonable interest and reasonable attorney's fees.
15. That this agreement shall be binding on the parties hereto and their respective
successors and permitted assigns. This agreement and the obligations herein may not be assigned
without the express written consent of each of the parties hereto which consent may be withheld
at the sole discretion of either of the parties hereto.
16. That upon Developer's completion of the construction of the Roadway
Improvements as described in preceding Paragraph 2 hereof, Developer shall provide the City
reasonable data and records of Developer which documents Developer's compliance with the
requirements of the preceding Paragraph 2 and all of the costs thereof.
17. That this agreement is further subject to and contingent upon the parties hereto
entering into an annexation agreement upon terms agreeable to the parties providing for the
annexation of the Subject Property into the City of Elgin and the annexation of the Subject
Property into the City of Elgin on or before June 1, 2014. In the event the parties do not enter into
an annexation agreement for the Subject Property and the Subject Property is not annexed into the
City of Elgin on or before June 1, 2014,then upon written notice from one party to the other, this
agreement may be terminated and thereupon this agreement will be null and void without further
obligations of the parties hereto.
18. That time is of the essence of this agreement.
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IN WITNESS WHEREOF, the parties have entered into and executed this agreement on
the date and year first written above.
CITY OF ELGIN, a municipal David Huang
corporation
BY Ma ' By
Y
Attest: 61re.,
City Clerk
FALegal Dcpt\Agreement\Agreement-David Huang-clean 1-17-14.docx
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EXHIBITS
Exhibit A: Legal Description of Subject Property.
Exhibit B: Site Plan depicting Roadway Improvements prepared by Haeger Engineering
Exhibit C: Exhibit depicting three parcels benefited by Roadway Improvements.
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AGREEMENT
EXHIBIT A
The Northeast % of the Northwest % and the Northwest % of the Northwest
(except the North 10.50 chains of said Northwest % of the Northwest %), of
Section 31, Township 42 North, Range 8 East of the Third Principal Meridian, in
the Township of Dundee, Kane County, Illinois.
PIN: 03-31-100-002
a=
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PARCEL AREA PERCENTAGE Q
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