T12-96 . 7
(0°- Ordinance No. T12-96
AN ORDINANCE
ESTABLISHING AN INCENTIVE PROGRAM FOR
COOK COUNTY 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 improvements 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
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 :
Section 1 . Incentive Program. That there is hereby
established an economic incentive program to be known as the
Cook County Automobile Dealership Incentive Program.
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 improvement to property currently owned, including
furniture and fixtures, in an amount in excess of two hundred
percent (200%) of the average amount of local retail sales tax
paid to the City of Elgin in the last preceding three years
shall be eligible to receive a rebate of fifty percent (50%)
of the increase in sales tax in excess of the preceding three
year average distributed to the City of Elgin from the sale of
automobiles . This incentive shall be available for a period
of five 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 dealer.
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 which includes a description of the
capital improvements to be made between the City of Elgin and
the dealership under this 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 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 who 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 dealer.
Section 5 . In order to participate in the Cook County
Automobile Dealers Rebate Program, an applicant shall submit
copies of all relevant documents including but not limited to
verification from the Illinois Department of Revenue ( "DOR" )
of the revenues and sales taxes paid for the past three years
and shall execute a written agreement which shall include the
items necessary to comply with the provisions of this
ordinance including but not limited to the following:
1 . The Automobile Dealer' s agreement that, at any time
upon the reasonable request of the City, it will
demonstrate evidence of the cost of improvements
equivalent to the City' s payments hereunder.
2 . The Automobile Dealer' s agreement that it will not,
during the life of the agreement, protest, contest,
eft or in any other way seek to lower the amount of
property tax rate with respect to the property.
Nothing herein contained shall prevent Automobile
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Dealer from protesting the assessed valuation of the
property.
3 . The Automobile Dealer' s agreement to promptly
commence and diligent pursue renovation activities .
Once construction has begun, Automobile Dealer
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 Automobile Dealer' 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, Automobile Dealer
agrees to remit to the City monies received from the
City pursuant to this agreement. In order to secure
the requirement to make repayment, the Automobile
Dealer shall post or cause to be posted in favor of
the City, a performance bond, letter of credit, or
such other instrument acceptable to the City (the
"Credit Facility" ) in an amount equal to any amounts
paid out.
5 . Within seventy-five (75) days after each annual
fir• period, Automobile Dealer 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, Automobile
Dealer 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 pursuant to this
agreement for calendar years 1996 through the life
of this agreement. Additionally, 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 employees
and consultants as the City (except for any
consultant that has a financial interest in any
motor vehicle dealership within the Chicago
emk Metropolitan Area, which consultant shall not be
retained) , in its sole discretion deems appropriate
in order to monitor compliance and audit this
agreement. Automobile Dealer also agrees, upon the
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request 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 Automobile Dealer
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
Automobile Dealer, subject to the terms and
conditions 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 Automobile dealer against
the City, its officers, 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
Automobile Dealer, its officers, agents and
employees, in excess of their obligations to the
City hereunder, 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 Automobile Dealer, its officers, agents and
employees, in excess of their obligations hereunder.
7 . The City and Automobile Dealer agree to do all
things necessary or appropriate to carry out the
terms and provisions of this agreement and to aid
and assist each other in carrying out the terms
hereof .
8 . This agreement shall be governed by the laws of the
County of Kane, the State of Illinois, and the sole
and exclusive venue for any disputes arising out of
this agreement shall be any state or federal court
located within the State of Illinois . A waiver of
any part of this agreement shall be limited to that
specific event and shall not be a waiver of the
entire 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 delivering 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.
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Section 6 . This ordinance shall be in full force and
effect from and after its passage.
Kevin Kelly, Mayo
Presented: August 28, 1996
Passed: August 28, 1996
Vote: Yeas 7 Nays 0
Recorded: August 29, 1996
Published:
Attest:
Dolonna Mecum, City Clerk
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