16-75 Resolution No. 16-75
RESOLUTION
AUTHORIZING EXECUTION OF A PARTICIPATION
AGREEMENT IN THE CITY OF ELGIN COOK COUNTY AUTOMOBILE
DEALERSHIP INCENTIVE PROGRAM
WITH JERRY BIGGERS CHEVROLET, INC.
(1385 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 a Participation Agreement in the City of Elgin Cook County Automobile
Dealership Incentive Program on behalf of the City of Elgin with Jerry Biggers Chevrolet, Inc. to
permit participation in the Capital Investment Grant portion of the program, a copy of which is
attached hereto and made a part hereof by reference.
s/David J. Kaptain
David J. Kaptain, Mayor
Presented: May 4, 2016
Adopted: May 4, 2016
Omnibus Vote: Yeas: 9 Nays: 0
Attest:
s/Kimberly Dewis
Kimberly Dewis, City Clerk
PARTICIPATION AGREEMENT
CITY OF ELGIN COOK COUNTY AUTOMOBILE DEALERSHIP INCENTIVE PROGRAM
This agreement is made and entered into this 4th day of May, 2016, by and
between the CITY OF ELGIN,an Illinois municipal corporation (hereinafter referred to as
the "City") and Jerry Biggers Chevrolet, Inc. an Illinois corporation, (hereinafter referred
to as "Biggers Chevy").
WITNESSETH
WHEREAS,the City Council of the City of Elgin has enacted Ordinance No.T1-04,
entitled the "City of Elgin Cook County Automobile Dealership Incentive Program,"
which provides for the establishment of various incentive programs for automobile
dealerships located within that area of the City of Elgin lying within Cook County; and
WHEREAS, Biggers Chevy has made application to the City to participate in the
"Capital Investment Grant Program" component of the City of Elgin Cook County
Automobile Dealership Incentive Program; and
WHEREAS, the City Council has determined that it is in the best interest of the
City to approve Biggers Chevy's application to participate in the Capital Investment
Grant program component of the City of Elgin Cook County Automobile Dealership
Incentive Program.
NOW, THEREFORE, for and in consideration of the mutual promises and
undertakings as set forth herein, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:
1. That the application of Biggers Chevy to participate in the Capital Investment
Grant Program component of the City of Elgin Cook County Automobile Dealership
Incentive Program is hereby approved by the City Council of the City of Elgin.
2. That the terms of Ordinance No. T1-04, a copy of which is attached hereto as
Exhibit A, are hereby incorporated into this agreement in their entirety. Biggers Chevy
agrees to comply with all conditions and terms as specified in the automobile dealership
incentive program and as set forth in the attached Ordinance No. T1-04. In the event of
any conflict between the provisions of this agreement and those of Ordinance No. T1-
04,the provisions of this agreement shall control.
3. Biggers Chevy, when eligible, may apply for a fifteen percent (15%) capital
investment grant for capital improvements to the automobile dealership for which the
City of Elgin has not previously issued a certificate of occupancy or for which the City
has not issued any other similar final approval for the construction of the capital
improvements for work performed at the dealership between May 7, 2015 and May 6,
2017. At the end of the first full month of the year following commencement of
construction, one half of the estimated investment grant shall be paid.The remainder of
the grant shall be paid at the earlier of the completion of construction or thirteen months
after commencement of construction. Any grant amounts received shall be repaid if
capital improvements for which a grant is received are not completed within the two-
year period specified in this paragraph.
4. The City hereby agrees to waive building permit fees for the capital
improvements to the automobile dealership contemplated by this Agreement. Permit
fees required by local government agencies, such as the stormwater management
permit and review fees,are excluded from this waiver, as are any City water impact fees.
5. Biggers Chevy shall not be eligible for a capital investment grant more than
once in a period of five years. Any grant amounts received shall be repaid if capital
improvements for which a grant is received are not completed within two years.
6. The City and Biggers Chevy agree that the City shall not be reimburse Biggers
Chevy more than two hundred thousand dollars ($200,000.00) during Biggers Chevy's
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participation in the capital investment grant component of the City of Elgin Cook County
Automobile Dealership Incentive Program created under Ordinance No.T1-04.
7. This agreement shall be binding on the parties hereto and their respective
permitted successors and assigns.
8. This agreement shall not be modified, amended or supplemented without the
written agreement of the parties hereto.
9. This agreement shall be subject to and governed by the laws of the State of
Illinois.Venue for the resolution of any disputes or the enforcement of any rights arising
out of or in connection with this agreement shall be in the Circuit Court of Kane County,
Illinois.
10. This agreement shall not be construed so as to create a joint venture,
partnership, employment, or other agency relationship between the parties hereto.
11. The terms of this agreement shall be severable. In the event any of the terms
or provisions of this agreement are deemed to be void or otherwise unenforceable, for
any reason,the remainder of this agreement shall remain in full force and effect.
12. This agreement constitutes the only agreement between the parties hereto.
No other agreements, either oral or written,exist between the parties hereto.
13. This agreement may be executed in counterparts, each of which shall be an
original and all of which shall constitute one and the same agreement. For the purposes
of executing this agreement,any signed copy of this agreement transmitted by e-mail or
facsimile shall be treated in all manners and respects as an original document. The
signature of any party on a copy of this agreement transmitted bye-mail or facsimile shall
be considered for these purposes as an original signature and shall have the same legal
effect as an original signature. Any such e-mailed or faxed copy of this agreement shall
be considered to have the same binding legal effect as an original document. At the
request of either party, any e-mail or facsimile copy of this agreement shall be re-
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executed by the parties in an original form.No partyto this
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of e-mail or facsimile as a defense to this agreement and sly ��� `
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IN WITNESS WHEREOF, the parties have enterer it �� ' ` ,
agreement on the date and year first written above.
CITY OF ELGIN JERRY RIGGERS .� �.*
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EXHIBIT A
.
rOrdinance No. T1-04
AN ORDINANCE
AMENDING THE ORDINANCE
ESTABLISHING AN INCENTIVE PROGRAM FOR
COOK COUNTY RETAIL AUTOMOBILE DEALERSHIPS
WHEREAS,the City of Elgin is located in Cook and Kane Counties; and
WHEREAS, the real estate assessment classification system for Cook County results in a
competitive disadvantage for automobile dealers operating in the Cook County section of the
City of Elgin with respect to automobile dealers operating in Kane County; and
WHEREAS, it is necessary to protect the city's tax base and promote employment within
the City of Elgin to provide economic incentives to automobile dealers operating in that part of
the City of Elgin situated in Cook County to continue such operations and invest in capital im-
provements at such locations; and
WHEREAS,the City of Elgin is a home rule unit within the meaning of Article VII of the
Constitution of Illinois of 1970; and
r WHEREAS,the City Council of the City of Elgin previously adopted Ordinance No. T1—
99 to provide economic incentives to automobile dealers operating in that part of the City of El-
gin situated in Cook County; and
WHEREAS, the City Council of the City of Elgin has determined it is necessary and de-
sirable to amend Ordinance No.T1-99 as provided herein; and
WHEREAS, the program established herein is in furtherance of the promotion of the
economic well being of the City of Elgin, a public purpose.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF ELGIN, ILLINOIS THAT ORDINANCE NO. T1-99 BE AMENDED IN ITS ENTIRETY
TO READ AS FOLLOWS:
Section 1. Incentive Program. That there is hereby established an economic incentive
program to be known as the Cook County Retail Automobile Dealership Incentive Program. For
the purposes of this ordinance, the term "retail automobile dealership" shall mean any person,
partnership, corporation or other entity that has been issued a sales tax identification number by
the Illinois Department of Revenue in conjunction with the operation of a retail automobile deal-
ership within the City of Elgin, Cook County, Illinois.
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Section 2. Sales Tax Rebate Program. Any retail automobile dealership operating in that
portion of the City of Elgin located in the County of Cook that makes a minimum capital im-
provement to property currently owned, including furniture and fixtures, in an amount in excess
of two hundred percent (200%) of the average annual amount of local retail sales tax it has paid
to the City of Elgin in the three years immediately proceeding the proposed date of the agree-
ment to participate in the Sales Tax Rebate Program, as verified by the Illinois Department of
Revenue, shall be eligible to receive a rebate of fifty percent(50%) of the increase in sales tax in
excess of the preceding three year month average retail sales tax distributed to the City of Elgin
from the sale of automobiles at the participating retail automobile dealership, as verified by the
City of Elgin in accordance with section five of this ordinance. This incentive shall be available
for a period of seven years from the date of the approval of the corporate authorities of the City
of Elgin of a participation agreement between the City of Elgin and an eligible retail automobile
dealership.
Section 3.Capital Investment Grant Program. Any retail automobile dealership operating
in the Cook County portion of the City of Elgin is eligible to receive an investment grant equal to
fifteen percent (15%) of a capital investment in an amount of Fifty Thousand Dollars ($50,000)
or more but not to exceed Two Hundred Thousand($200,000). Capital improvements qualifying
for such grant shall be completed within two years after approval by the corporate authorities of
the City of Elgin of an agreement that includes a description of the capital improvements to be
made between the City of Elgin and the dealership under this program. Capital improvements
for which the City of Elgin has previously issued a certificate of occupancy or for which the City
of Elgin has issued any other similar final approval for the construction of the capital improve-
ments are not eligible for participation in the capital investment grant program. At the end of the
first full month of the year following commencement of construction, one half of the estimated
investment grant shall be paid. The remainder of the grant shall be paid at the earlier of the
completion of construction or thirteen months after commencement of construction. No retail
automobile dealership shall be eligible for a grant more than once in a period of five years. Any
grant amounts received shall be repaid if capital improvements for which a grant is received are
not completed within two years.
Section 4. Business Retention Rebate. Any retail automobile dealership operating in
Cook County that agrees in writing to continue such retail operation in the Cook County portion
of the City of Elgin for a period of not less than five years is eligible to receive a retail sales tax
rebate in the amount of thirty-five percent(35%)of the increase in retail sales tax received by the
City of Elgin from the sale of automobiles. Any such rebate shall be repaid with interest if a
dealership fails to remain for the five-year period. The rebate shall be based on the increase in
sales tax over the average retail sales tax distributed to the City of Elgin during the past three
years by the participating retail automobile dealership.
Section 5. In order to participate in the Cook County Retail Automobile Dealership Sales
Tax Rebate Program, an applicant shall submit copies of Illinois Department of Revenue("1DR")
form "IDR ST-1" and IDR form "IDR ST-556" that have been issued to the retail automobile
dealership for each of the thirty-six (36) consecutive months immediately proceeding the execu-
etion of the Retail Automobile Dealership Sales Tax Rebate Program with the City of Elgin. The
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applicant shall also execute a written agreement that shall include the items necessary to comply
with the provisions of this ordinance, including but not limited to the following:
1. The retail automobile dealership's agreement that, at any time upon the reasonable re-
quest of the City, it will demonstrate evidence of the cost of improvements equivalent to
the City's payments hereunder.
2. The retail automobile dealership's agreement that it will not, during the life of the
agreement,protest, contest, or in any other way seek to lower the amount of property tax
rate with respect to the property. Nothing herein contained shall prevent the retail auto-
mobile dealership from protesting the assessed valuation of the property.
3. The retail automobile dealership's agreement to promptly commence and diligent pur-
sue renovation activities. Once construction has begun, the retail automobile dealership
agrees to construct the improvements,both on-site and off-site, in substantial accordance
with plans and specifications submitted at the time of application.
4. The retail automobile dealership's agreement that in the event that Automobile
Dealer's motor vehicle dealership ceases to operate at the property at any time during the
duration of the agreement, the retail automobile dealership agrees to remit to the City
monies received from the City pursuant to this agreement. In order to secure the require-
ment to make repayment, the retail automobile dealership shall post or cause to be posted
in favor of the City a performance bond or letter of credit. Alternatively,the City may ac-
cept a personal guarantee designating specific individuals who will make repayment in
accordance with the agreement, provided the City's fiscal services manager, in his or her
sole discretion, determines the guarantor of any such personal guarantee presents docu-
mentation establishing a history of sound credit and solid financial strength indicative of
the guarantor's financial ability to satisfy any repayment under the agreement.
5. Within seventy-five(75)days after each annual period,the retail automobile dealership
shall provide the City with a statement signed by one of its officers as to the dollar
amount of sales tax revenue paid to the State of Illinois for the benefit of the City during
the prior annual period. Additionally, the retail automobile dealership shall maintain and
have available for inspection by the City copies of any and all sales tax returns, sales tax
reports, amendments, proof of payment or any other sales tax information filed with the
State of Illinois or other appropriate governmental entity, which documents are being
held available for the City for purposes of identifying sales tax revenue collected pursu-
ant to this agreement for each calendar years during the life of the agreement. Addition-
ally, the City shall use its best efforts to obtain such sales tax information directly from
the Illinois Department of Revenue or the State of Illinois. To the extent permitted by
law, the City shall endeavor to maintain the confidentiality of the information contained
in such reports,but shall be permitted to disclose such information and documents to em-
ployees and consultants as the City(except for any consultant that has a financial interest
in any motor vehicle dealership within the Chicago Metropolitan Area, which consultant
r shall not be retained), in its sole discretion deems appropriate in order to monitor compli-
ance and audit this agreement. The retail automobile dealership also agrees, upon the re-
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quest of the City, to furnish such consents or waivers as may be required by the Illinois
Department of Revenue to allow the Illinois Department of Revenue to furnish to the City
sales tax information concerning the retail automobile dealership.
6. No recourse under or upon any obligation, covenant or agreement of this agreement or
for any claim based thereon or otherwise in respect thereof shall be had against the City,
its officers, agents and employees, in any amount or in excess of any specific sum agreed
by the City to be paid to the retail automobile dealership, subject to the terms and condi-
tions herein, and no liability, right or claim at law or in equity shall attach to or shall be
incurred by the City, its officers, agents and employees in excess of such amounts,and all
and any such rights or claims of the retail automobile dealership against the City, its offi-
cers, agents and employees are hereby expressly waived and released as a condition of
and as consideration for the execution of this agreement by the City. No recourse under
or upon any obligations, covenant or agreement of this agreement or for any claim based
thereon or otherwise in respect thereof shall be had against the retail automobile dealer-
ship, its officers, agents and employees, in excess of their obligations to the City here-
under, subject to the terms and conditions herein, and no liability, right or claim at law of
or in equity shall attached to or shall be incurred by the retail automobile dealership, its
officers, agents and employees, in excess of their obligations hereunder.
7. Such agreement may also include a limitation on the total amount of the rebate the re-
tail automobile dealership may receive from any of the incentives contemplated in this
ordinance and may also provide for a minimum period of time for which the retail auto-
mobile dealership must continue operating in the portion of the City of Elgin located in
Cook County,Illinois.
8. The City and the retail automobile dealership agree to do all things necessary or appro-
priate to carry out the terms and provisions of this agreement and to aid and assist each
other in carrying out the terms hereof.
9. This agreement shall be governed by the laws of the State of Illinois and the sole and
exclusive venue for any disputes arising out of this agreement shall be within the Circuit
Court for the Sixteenth Judicial Circuit, Kane County, Illinois. A waiver of any part of
this agreement shall be limited to that specific event and shall not be a waiver of the en-
tire agreement. Any notices required in this agreement shall be effective when in writing
and three (3) days after mailing by certified mail, return receipt requested, or by deliver-
ing the same in person or to an officer of such party or by prepaid telegram or private
overnight courier,when appropriate, addressed to the party to be notified.
Section 6. The provisions of this ordinance are intended to provide guidelines for consid-
ering applications from retail automobile dealerships that are seeking to participate in the Cook
County Retail Automobile Dealership Incentive Program. The City Council of the City of Elgin,
in its sole and exclusive discretion, shall determine whether to provide any of the incentives con-
templated in this ordinance after duly considering the costs incurred by the City of Elgin for pro-
viding the incentives and after considering the relative gain derived by the public from those in-
centives.
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Section 7. This ordinance shall be in full force and effect from and after its passage and
publication in the manner prescribed by law, provided, however, that the amendatory provisions
of this ordinance may be applied retroactively to any retail automobile dealership having an ex-
isting agreement with the City of Elgin for participation in the Cook County Retail Automobile
Dealership Incentive Program.
Ed Schock,Mayor
Presented: March 10,2004
Passed: March 10,2004
Omnibus Vote: Yeas: 6 Nays: 0
Recorded: March 11,2004
Published: March 11,2004
Attest:
1Q-944-+•--Q )rk-erzz-rs---
Dolonna Mecum, City lerk
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i
ELGIN
MEMORANDUM
THE CITY IN THE SUBURBS-
To: Mayor and City Council Members
From: Richard G. Kozal,Assistant City Manager
Date: 29 April 2016
Re: Consent Agenda Item No. 5—Cook County Retail Automobile Dealership Program
Capital Investment Grant for Jerry Biggers Chevrolet, Inc.
The city council on 6 May 2015 unanimously approved Jerry Biggers Chevrolet, Inc.'s (Biggers
Chevy) participation in the Cook County Retail Automobile Dealership Program's Capital Invest-
ment Grant component (Ordinance No. T1-04). The city also agreed to waive the building permit
fees for those capital improvements. Biggers Chevy originally planned to complete its capital im-
provements within one year but has since decided to invest an additional quarter million dollars in
capital improvements to the property.The total capital improvements will amount to approximate-
ly$1.33 million.
The Cook County Retail Automobile Dealership Program's Capital Investment Grant component
contemplates a two-year period for an automobile dealership to complete the improvements. An
automobile dealership participating in the program may submit for reimbursement of one-half of
the grant after the first year following the commencement of the improvements. The attached
agreement commits Biggers Chevy to a two-year capital improvement plan with a grant in a not-to-
exceed amount of $200,000. After 7 June 2016, Biggers Chevy can seek grant reimbursement for
one-half of the work it has performed consistent with the dealership program ordinance.
c. Sean R. Stegall
Debra Nawrocki
William A.Cogley