G71-09i
Ordinance No. G71-09
AN ORDINANCE
AMENDING TITLE 6 OF THE
ELGIN MUNICIPAL CODE, 1976, AS AMENDED.
ENTITLED "BUSINESS LICENSES AND REGULATIONS"
WHEREAS. each business located in the City of Elgin is a basic part of and affects the
physical and economic well being of the City of Elgin, necessitating special services from the
City of Elgin in the form of such services which include, but are not limited to; fire services,
police services and various inspections: and
WHEREAS; an ordinance providing for a general business license is designed to provide
for the means whereby the City of Elgin may render the necessary services and inspections to
businesses in order to promote, protect and safeguard the public safety, health and welfare of the
citizens of the City of Elgin; and
WHEREAS; an ordinance providing for a general business license within the City of
Elgin will enable the maintenance of an accurate record of businesses located and carrying on
commercial activities or commerce within the City of Elgin: and
WHEREAS, the City of Elgin is a home rule unit pursuant to Article VII Section 6 of the
• Illinois Constitution: and
WHEREAS. as a home rule unit the City of Elgin may exercise any power and perform
any function pertaining to its government and affairs including, but not limited to, the power to
regulate for the protection of the public health, safety, morals and welfare and to license: and
WHEREAS, a general business license for businesses located within the City of Elgin
pertains to the government and affairs of the City of Elgin.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF ELGIN, ILLINOIS:
Section 1. That Title 6 of the Elgin Municipal Code, as amended. entitled
"Business Licenses and Regulations" be and is hereby amended by adding a new Chapter 6.04
thereto. entitled. "General Business License" to read as follows:
CHAPTER 6.04
GENERAL BUSINESS LICENSE
6.04.010 DEFINITIONS:
The following words. terms and phrases and their derivations. when used in this chapter
shall have the means ascribed to them in this section:
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BUSINESS: Any vocation; occupation, profession, enterprise, establishment, concern, or
any other type of business activity, whether or not conducted at a profit, including any
person either through such person or through an agent, employee or partner, who holds
himself forth as being engaged in the vocation, occupation, profession, enterprise,
establishment, concern or business activity, or if such person solicits patronage therefore,
actively or passively, or if such person performs or attempts to perform any part of such
activities described, within the City of Elgin including a building or a premises or a
portion thereof, including but not limited to a Residential Occupation or a Residential
Occupation Conditional. The terns "business" shall not include any of the following:
A. A governmental unit.
B. A public utility or cable television company which is subject to regulation by the
Federal Communications Commission of the Illinois Commerce Commission or
which operates in the City of Elgin pursuant to a franchise agreement with the
City of Elgin.
FLOOR AREA: The sum total of the gross horizontal areas of all of the several floors of
a building and its accessory buildings measured in square feet from the exterior faces of
the exterior walls or from the centerline of party walls separating two (2) buildings or
establishments on each of the respective floors and shall include the basement floor and
cellar floor. Floor area shall also include floor space used for mechanical equipment,
whether open or enclosed, including such equipment as may be located on the roof,
penthouse, attic space, balconies, mezzanines, porches and verandas and floor area
devoted to and occupied by accessory uses. Total floor area applicable for the
determination of the yearly license fee in this chapter shall include the sum total of all of
the floor area in use or reserved for or retained for the use of the business establishment,
including, but not limited to, principal and accessory floor area, cellars and basements,
storage or detached accessory buildings, even though any such floor area may be
temporarily vacant or not in use. Common areas in multi-occupant buildings not used,
reserved or retained for the exclusive use of a business establishments including, but not
limited to, lobbies, elevators, and hallways, shall not be included in the total floor area
applicable for the determination of the yearly license fee in this chapter. All measured
area expressed in square feet shall be to the nearest integral square foot, if a fraction is
one-half square foot or more, the integral square foot next above shall be taken.
OWNER: Any individual, firm, association, partnership, corporation, trust or any other
legal entity having sufficient proprietary interest in any establishment to maintain and
manage its operation.
PERSON: A natural person,joint venture,joint stock company, partnership, association,
club, company, corporation, business, trust or organization: or the manager, lessee, agent,
servant, officer or employee of any of them. y
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. RESIDENTIAL OCCUPATIONS AND RESIDENTIAL OCCUPATIONS,
CONDITIONAL: Residential Occupations and Residential Occupations, Conditional;
shall be defined as provided in Section 19.90.015 of the Elgin Municipal Code, 1976, as
amended.
6.04.020: LICENSE REQUIRED:
All persons who conduct, engage in, maintain; operate, carry on or manage a business,
either through such person or through an agent, employee or partner, shall obtain by
February 1" of each year a general business license for said business. A separate license
shall be required for each separate place of business. The requirement of a general
business license and the fee therefore shall be in addition to any other licenses and fees
required by law.
6.04.030: LICENSE APPLICATION:
An application for a license required by this chapter shall be made in writing under oath
to the city on a form prescribed by the city's finance director. All references to the
finance director in this chapter shall be deemed to include the finance director or his
authorized designee. Each application shall include, but not be limited to, the following
information:
A. The name, residential address and phone number of the applicant, who shall be
the principal owner in the case of a non-corporate entity or the president in the
case of a corporate entity.
B. The name of the company/business and the address(es) of the permanent place(s)
of business within the city covered by the application, or, if there is no permanent
places in the city, the address of the permanent place or location most closely
involved -vvith the business or activity covered by the application.
C. A description of the business or activity for which the license is requested.
D. The number of employees of the business at the time of application.
E. The telephone number(s) of the company/business.
F. The floor area of the business premises in square feet measured and determined as
provided in this chapter.
G. The maximum legal occupancy of the business premises.
H. The Federal Employer Identification Number, if applicable, of the business
covered by the application.
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. 6.04.040: APPLICATION REVIEW AND LICENSE ISSUANCE:
A. The finance director shall promptly review an application upon the receipt of a
completed license application and upon payment of the license fee by the
applicant. The finance director shall notify the applicant within ten (10) days
from the receipt of the application and the license fee of any deficiencies in the
application. The finance director shall grant or deny the license application
.within twenty (20) days from the date the completed application and license fee
was filed with the finance director.
B. The finance director shall approve a license application if it complies with the
requirements of this chapter and other applicable requirements of law and; upon
payment of the prescribed license fee; the finance director shall deliver the
required license to the applicant.
C. The license shall show the name and address of the business being licensed and
the length of time that the license shall be in effect.
D. A record of all licenses issued shall be maintained by the finance department.
E. Upon the finance director's review of the application; the finance director may
refuse to issue a license to the applicant under this chapter for any of the
following reasons:
• 1. The application has not been properly completed and/or the licensing fee as
required in this chapter has not been paid.
2. An investigation reveals that the applicant has falsified information on the
application.
3. There exists an outstanding code violation on the business premises; unless the
applicant provides satisfactory assurance that the condition will be corrected
within a reasonable time; and the conduct of the business or activity pending the
correction of such condition will not endanger the public health, safety or welfare.
4. Failure to comply with other provisions of this chapter or other applicable
requirements of law.
6.04.00: TERM OF LICENSE: RENEWAL:
All licenses provided for in this chapter shall expire on December 31 following the date
of issuance. Failure to comply with any provisions of this chapter shall constitute
grounds for non-renewal.
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• 6.04.060: LICENSE FEES, EXCEPTIONS:
A. The following fees shall be the annual fees for a general business license:
FLOOR AREA OF BUSINESS PREMISES
IN SQUARE FEET A\Ti�1UAL FEE
0-999 $35
1000-2499 $95
2500-4999 $145
5000-9999 $195
10.000-19.999 $245
20.000-29.999 $295
30,000-39,999 $445
40.000+ $595
• Residential Occupations and Residential Occupations; Conditional: Except as
provided in Section 6.04.060132, annual fee is $35.00
B. Exceptions:
1. A general business license fee shall not be charged to an entity which is both
(1) exempt from income taxation under Section 501 of the Internal Revenue Code
and (2) which has a business premises with floor area of less than 500,000 square
feet.
2. A person who obtains a general business license and pays a fee therefore who
also obtains a second general business license for such business as a Residential
Occupation shall not be required to pay a second general business license fee for
the general business license for the Residential Occupation.
6.04.070: REGULATIONS:
A. No license shall be assigned, sold or transferred, nor shall any license authorize
any person other than the applicant to conduct business under such license.
B. The applicant or licensee shall have a duty to notify the city's finance director of
any changes in the information contained in an application which is pending or
• which was the basis for the issuance of a license.
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C. All licenses shall be prominently displayed on the business premises at all times.
D. No person shall add to, alter, deface, forge or counterfeit any license which has
been issued by the city.
E. All licensees shall comply with all applicable city, state and federal laws.
6.04.080: SUSPENSION OR REVOCATION:
In addition to any other penalty which may be authorized by this chapter or other city
ordinances, the finance director may suspend or revoke any license issued pursuant to this
chapter for:
A. Failure to comply with any provision of this chapter and any applicable
ordinances:
B. Failure to comply with any applicable state and federal laws;
6.04.090: SUMMARY SUSPENSION:
Where the finance director presents to the city manager sufficient evidence demonstrating
probable cause to believe that the licensee has violated the provisions of this code or the
laws of the United States or the State, and that said violation will immediately threaten
the public health, safety or welfare, the city manager may, upon the issuance of a .written
order stating the reason for such conclusion, and without prior notice or hearing, order the
licensed premises closed and the license summarily suspended pending a public hearing
and determination on suspension or revocation. Such hearing shall be commenced not
more than seven (7) days following entry of such an order, unless the licensee shall agree
to a longer period of time. The procedures for such a hearing or any appeal with respect
thereto shall be as otherwise provided in this chapter. Upon entry of an order of
summary suspension, the licensee shall be served with a copy of the order and notice of
violation and a hearing in the manner provided by this chapter.
6.04.100: NOTICE OF HEARING:
Except as provided in Section 6.04.090 hereof. prior to suspension or revocation of a
license under this chapter, the licensee shall be notified in writing of the nature of the
violation(s) and an opportunity for a hearing will be provided if a written request for a
hearing is filed with the finance director by the holder of the license within ten (10) days.
If a written request is filed .within ten (10) days, a hearing date shall be set within ten (10)
days of receipt of the request. If no written request for a hearing is filed within ten (10)
days, the suspension or revocation shall be sustained.
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• 6.04.110: HEARINGS:
As provided in this chapter; a hearing shall be conducted by the finance director or his
designee affording the licensee an opportunity to appear and defend the charges. The
finance director shall make a final decision in writing, including the reasons for such
decision; and shall serve such decision on the licensee within ten (10) days after the
conclusion of the hearing.
6.04.120: APPEALS:
A. Any person aggrieved by the action or decision of the city's finance director to
deny, suspend or revoke a license applied for or issued under the provisions of
this chapter shall have the right to appeal such action or decision to the city
manager within ten (10) days after the notice of action or decision has been
mailed to the licensee's address as shown on the license application form, or to
the licensee's last known address.
B. An appeal shall be taken by filing with the city's finance director a written
statement sending forth the grounds for appeal.
C. The city's finance director shall transmit the written statement to the city manager
within ten days of its receipt and the city manager shall set a time and place for a
• hearing on the appeal. The city manager may designate an authorized
representative to conduct such hearing.
D. A hearing shall be set not later than twenty (20) days from the date of receipt of
the appellant's written statement.
E. Notice of the time and place of the hearing shall be given to the appellant in the
same manner as provided for the mailing of notice of action decision.
F. The city manager or the city manager's designee shall serve a decision on the
licensee within ten (10) days after the conclusion of the hearing on such appeal.
6.04.130: PENALTY FOR VIOLATION:
A. Any person violating any of the provisions or failure to comply with any of the
mandatory requirements of this chapter shall be guilty of an offense. Any person
convicted of an offense under this chapter, in addition to other legal and equitable
remedies available to the city, shall be punished by a fine in an amount as
provided in chapter 1.20 of the Elgin Municipal Code. 1976, as amended.
B. Any person shall be guilty of a separate offense for each and every day during any
portion of which any violation of any provision of this chapter is committed,
• continued or permitted by any such person, he shall be punished accordingly.
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• C. The levy and/or payment of any payment or fine provided in this chapter shall not
be deemed a waiver of the power of the city to suspend, revoke or to refuse to
renew a license or to refuse to renew a license or to seek injunctive relief to enjoin
violations of this chapter or other applicable provisions of law.
6.04.150: SEVERABILITY:
If any provision, cause. sentence; paragraph, section or part of this chapter or application
thereof to any person or circumstance, shall or any reason to be adjudged by a court of
competent jurisdiction to be unconstitutional or invalid, said judgment shall not effect,
impair or invalidate the remainder of this chapter and the application of such provision to
other persons or circumstances, but shall be confined in its operation to the provision,
clause, sentence, paragraph, section or part thereof directly involved in the controversy in
which such judgment shall have been rendered and to the person or circumstances
involved. It is hereby declared to be the legislative intent of the city council that this
chapter would have been adopted had such constitutional or invalid provisions, clause,
sentence, paragraph, section or part thereof not been included."
Section 2. In order to allow for an orderly implementation of a general business
license requirement, for the calendar year 2010 only persons who are required to obtain a general
business license shall obtain such license by July 1, 2010, notwithstanding the February 1 date in
section 6.04.020. The proration provisions of section 6.03.060 shall not apply.
• Section 3. In recognition of the inconvenience to the downtown area caused by
previous and ongoing street construction activities; the annual fee for a general business license
in section 6.04.060 shall be .waived for the calendar _years 2010, 2011 and 2012 for businesses
located in the following described area:
The area bounded by the south line of Kimball Street on the north, the west side
of Dundee Avenue and the west side of Villa Street on the east, the north side of
Prairie Street on the south and the east bank of the Fox River on the west.
Section 4. That all ordinances or parts of ordinances in conflict with the provisions of this
ordinance be and are hereby repealed.
Section 5. That this ordinance shall be in full force and effect effective on and after
January 1, 2010, upon its passage and publication in the manner provided by law.
Ed Schock, Mayor
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Presented: December 16. 2009
• Passed: December 16; 2009 -4
Omnibus Vote: Yeas: 7 Nays: 0
Recorded: December 17; 2009 �Ma
Published: December 18, 2009
Attest:
Diane Robertson, City Cle-k
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