Village of East Dundee - Board Meeting Agenda - 02/14/2011

Village of East Dundee PRESIDENT AND BOARD OF TRUSTEES Special Meeting Monday, February 14, 2011 07:00 PM
Call to Order Roll Call Pledge of Allegiance Consent Agenda Illinois Municipalities may adopt by a single roll call vote of the Village Board and Village President a group of assorted ordinances, resolutions, motions and orders by an “Omnibus Vote”. The “Omnibus Vote” shall be taken following the unanimous consent by the President and Board as to the items to be included. Any Trustee or the President may request that any item not be included in that vote. Public Participation Reports: Village Administrator and Staff Reports: Village Attorney Reports: Village President Reports: Village Trustees Old Business New Business A. Ordinance Approving Redevelopment Agreement By and Between The Village of East Dundee, Illinois and Tovar Snow Professionals B. Dial-A-Ride Program Renewal: Summary by Sue Harney C. ConnectCTY Update D. Contract for Financial Services with Jim Nowicki E. Johnson Street/Immanuel Luthern- No Parking
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Village of East Dundee - Board Meeting Agenda - 02/14/2011

F. Amendment to PAL TIF Agreement: Emailed out on December 7, 2010 G. Final Payment to Windsor Development H. Christina Drive Water Line Loop I. Property Tax Abatement on Tax Levy: Anticipate Final EAV Totals the Second week of March J. Right-of-Way Vacations and Policy: Re-advertise Lake Shore Drive and Summit Ave Public ROW Vacation for Public Hearing on March 7th at 6:30pm K. Community Events for Next Year L. Flag Day: June 14th, 2011 M. Renewal of Economic Development Service Contract N. Request for Legislation to Allow Rising of Domestic Fowls Executive Session Recess to Executive Session Executive Session, closed to the public and media under the provisions of the Illinois Open Meetings Act, 5ILCS, 120/2, (2) (21), Discussion of Minutes, (C) (6), Pending Litigation, 2 (C) (1), Personnel and 2 (C) (5) Acquisition of Property. Adjournment

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ORDINANCE NUMBER 11 - _____
ORDINANCE APPROVING REDEVELOPMENT AGREEMENT BY AND BETWEEN THE VILLAGE OF EAST DUNDEE, ILLINOIS AND TOVAR SNOW PROFESSIONALS
WHEREAS, pursuant to the Business District Development and Redevelopment Act of the State of Illinois, 65 ILCS 5/11-74.3-1 et seq., as from time to time amended (the “BDD Act”), the President and Board of Trustees of the Village (the “Corporate Authorities”) are empowered to undertake the development or redevelopment of business districts within the municipal boundaries of the Village which are in need of revitalization; and, WHEREAS, pursuant to the BDD Act, on September 28, 2009, the Corporate Authorities, after public hearings, passed Ordinance No. 09-30 designating the Route 25 and Route 72 Business District (the “BD District”), and imposed a retailers’ occupation tax and service occupation tax in the amount of one-half of one percent (0.5%) on all commercial operations within the boundaries of the BD District to pay project costs incurred in connection with the Village's approved plan for the planning, execution and implementation of the BD District (the “BD Plan”); and, WHEREAS, pursuant to the Tax Increment Allocation Redevelopment Act of the State of Illinois, 65 ILCS 5/11-74.4-1 et seq., as from time to time amended (the “TIF Act”), the Corporate Authorities are empowered to undertake the development or redevelopment of a designated area within the municipal boundaries of the Village in which existing conditions permit such area to be classified as a “blighted area” as defined in Section 11.74.4-3(a) of the TIF Act; and, WHEREAS, the Developer is considering relocating its business to the Village by redeveloping the building located at 195 Penny Avenue in the Village (the “Subject Property”) which structure has been vacant since 2006; and, WHEREAS, the Developer has informed the City that it is able to undertake the redevelopment of the Subject Property (the “Project”) and the related necessary and extensive improvements and significant costs only with financial assistance available through the BDD Act and the TIF Act ; and, 1

WHEREAS, the Subject Property is located immediately adjacent to the BD District and the Village intends to consider the expansion of the boundaries of the BD District to include the Subject Property and an amendment of the BD Plan to include the redevelopment of the Subject Property but only in the event the Subject Property meets the requirements for eligibility under the BDD Act; and, WHEREAS, the Corporate Authorities have determined that the blighting factors now present on the Subject Property are detrimental to the public and impair development and growth in the adjacent BD District and the adjacent Redevelopment Project Area and will continue to impair growth and development but for the use of the retailers’ occupation tax and service occupation tax as imposed within the BD District pursuant to the BDD Act and the use of tax increment allocation financing to assist the Developer to pay certain costs to be incurred by the Developer to undertake the Project; and, WHEREAS, the Corporate Authorities have determined that the provision by the Village to the Developer of the assistance hereinafter described and the redevelopment by the Developer of the Subject Property pursuant to this Agreement are in the best interests of the Village and its residents and taxpayers, thereby helping to provide for economic development and job opportunities for the inhabitants of the Village, enhance the tax base of the Village and other taxing districts and add to the welfare and prosperity of the Village and its inhabitants all as provided in the Redevelopment Agreement attached hereto and made a part hereof. NOW THEREFORE BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF EAST DUNDEE, KANE AND COOK COUNTIES, ILLINOIS, AS FOLLOWS: Section One. Be it ordained by the President and Board of Trustees of the Village of East Dundee, Kane County, Illinois, that the Redevelopment Agreement by and between the Village of East Dundee and Tovar Snow Professionals, as presented to this meeting of the Village Board, is approved and the Village President and Village Clerk are hereby authorized to execute and deliver same and the Village Administrator is hereby authorized to undertake any and all actions as deemed necessary to implement the provisions thereof.

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Section Two. Severability. If any section, paragraph or provision of this ordinance shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this ordinance. Section Three. Repeal. All ordinances, resolutions, motions or parts thereof in conflict herewith shall be and the same are hereby repealed. Section Four. Publication. This ordinance shall be in full force and effect forthwith upon its adoption, approval and publication in pamphlet form as provided by law. Adopted this _______ day of _____________, 2011, pursuant to a roll call vote as follows: AYES: ______________________________________________________________________________ NAYES: ______________________________________________________________________________ ABSENT: ______________________________________________________________________________ Approved by me this _______ day of _____________, 2011. __________________________________________ JERALD BARTELS, President Published in pamphlet form this _______ day of ___________, 2011, under the authority of the President and Board of Trustees. ATTEST: _________________________________ JENNIFER REHBERG, Village Clerk Recorded in the Village Records on _________________, 2011.

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REDEVELOPMENT AGREEMENT BY AND BETWEEN THE VILLAGE OF EAST DUNDEE, ILLINOIS AND TOVAR SNOW PROFESSIONALS

THIS REDEVELOPMENT AGREEMENT (the "Agreement") is entered into this ____ day of February, 2011, by and between the Village of East Dundee, Illinois, an Illinois municipal corporation (the “Village”), and Tovar Snow Professionals of Elgin, Illinois (the “Developer”). PREAMBLES WHEREAS, pursuant to the Business District Development and Redevelopment Act of the State of Illinois, 65 ILCS 5/11-74.3-1 et seq., as from time to time amended (the “BDD Act”), the President and Board of Trustees of the Village (the “Corporate Authorities”) are empowered to undertake the development or redevelopment of business districts within the municipal boundaries of the Village which are in need of revitalization; and, WHEREAS, pursuant to the BDD Act, on September 28, 2009, the Corporate Authorities, after public hearings, passed Ordinance No. 09-30 designating the Route 25 and Route 72 Business District (the “BD District”), as depicted on Exhibit A and imposed a retailers’ occupation tax and service occupation tax in the amount of one-half of one percent (0.5%) on all commercial operations within the boundaries of the BD District to pay project costs incurred in connection with the Village's approved plan for the planning, execution and implementation of the BD District (the “BD Plan”); and, WHEREAS, pursuant to the Tax Increment Allocation Redevelopment Act of the State of Illinois, 65 ILCS 5/11-74.4-1 et seq., as from time to time amended (the “TIF Act”), the Corporate Authorities are empowered to undertake the development or redevelopment of a designated area within the municipal boundaries of the Village in which existing conditions 1

permit such area to be classified as a “blighted area” as defined in Section 11.74.4-3(a) of the TIF Act; and, WHEREAS, pursuant to its powers and in accordance with the requirements of the TIF Act, the Corporate Authorities, pursuant to Ordinance No. 6-40, adopted by the Corporate Authorities on September 18, 2006, approved a redevelopment plan and project for the Route 25 redevelopment project area (the “Redevelopment Project Area”), which sets forth a plan for the development, redevelopment and revitalization of the Redevelopment Project Area (the “Redevelopment Plan”); and, WHEREAS, the Developer is considering relocating its business to the Village by redeveloping the building located at 195 Penny Avenue in the Village, legally described on Exhibit B, attached hereto and made a part hereof (the “Subject Property”) which structure has been vacant since 2006; and, WHEREAS, the Developer, or its affiliated entity, has entered into a contract to purchase the Subject Property; and WHEREAS, the Developer has informed the City that it is able to undertake the redevelopment of the Subject Property (the “Project”) and the related necessary and extensive improvements and significant costs only with financial assistance available through the BDD Act and the TIF Act ; and, WHEREAS, Exhibit C to this Agreement includes an estimate of all costs to be incurred by the Developer in connection with the Project; and, WHEREAS, the Subject Property is located immediately adjacent to the BD District and the Village intends to consider the expansion of the boundaries of the BD District as depicted on

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Exhibit B to include the Subject Property and an amendment of the BD Plan to include the redevelopment of the Subject Property but only in the event the Subject Property meets the requirements for eligibility under the BDD Act; and, WHEREAS, the Village intends to proceed with an amendment to the Redevelopment Plan and Redevelopment Project Area adopted pursuant to the TIF Act, which would add the Subject Property to the Redevelopment Plan and Redevelopment Project Area, or to establish a new redevelopment project area pursuant to the TIF Act that includes the Subject Property in order to provide, for the Project, some of the financial assistance as permitted by the TIF Act; and, WHEREAS, the Corporate Authorities have determined that the blighting factors now present on the Subject Property are detrimental to the public and impair development and growth in the adjacent BD District and the adjacent Redevelopment Project Area and will continue to impair growth and development but for the use of the retailers’ occupation tax and service occupation tax as imposed within the BD District pursuant to the BDD Act and the use of tax increment allocation financing to assist the Developer to pay certain costs to be incurred by the Developer to undertake the Project; and, WHEREAS, the existence of the blighting factors on the Subject Property and the extraordinary costs necessary for development and redevelopment of the Subject Property have prevented private developers from developing, redeveloping and revitalizing the Subject Property which has, in turn, limited the development and construction of commercial and industrial enterprises within the adjacent BD District and the adjacent Redevelopment Project Area; and,

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WHEREAS, the Developer’s proposal calls for the Developer to redevelop the Subject Property in accordance with all applicable Village ordinances (collectively the “Legal Requirements”) and the Village has determined that the Developer has the necessary qualifications, expertise and background necessary to undertake the redevelopment of the Subject Property; and, WHEREAS, the development of the Subject Property is consistent with the approved BD Plan and Redevelopment Plan for the immediately adjacent BD District and adjacent Redevelopment Project Area and this Project shall further the goals and objectives of the BD Plan and Redevelopment Plan for the adjacent properties; and, WHEREAS, the Village is authorized under the BDD Act and TIF Act to incur costs and to make and enter into all contracts necessary or incidental to the implementation of the plans for the BD District and the Redevelopment Project Area; and, WHEREAS, the Corporate Authorities have determined that the provision by the Village to the Developer of the assistance hereinafter described and the redevelopment by the Developer of the Subject Property pursuant to this Agreement are in the best interests of the Village and its residents and taxpayers, thereby helping to provide for economic development and job opportunities for the inhabitants of the Village, enhance the tax base of the Village and other taxing districts and add to the welfare and prosperity of the Village and its inhabitants; NOW, THEREFORE, the parties, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, agree as follows:

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Section 1. Incorporation of Recitals. The Parties agree that all of the recitals contained in the Preambles to the Agreement are true and correct and are hereby incorporated into this Agreement as though they were fully set forth in this Section 1. Section 2. Developer’s Obligations. (a) Developer's obligations under this Agreement shall become effective only if (i) on

or before May 1, 2011, the Developer shall have acquired fee simple title to the Subject Property and delivered to the Village a plan for the Project, including a proposed construction schedule for the Project. The Village represents and warrants that no further Village approval, other than the issuance of building permits and occupancy permits, is required for Developer to complete, occupy, and use the Project and Subject Property. (b) The Developer covenants and agrees that upon completion of the acquisition of

the Subject Property and the completion of the Project, the Developer shall have invested in the Subject Property and the Project a minimum sum of $1,000,000. (c) On or before March 1, 2012, the Developer shall spend at least $100,000 on

improvements to the Subject Property (which, as reflected in Exhibit C, shall reflect completion of approximately 28% of the cost of all improvements that are part of the Project). Developer further agrees to complete the total Project on or before December 31, 2019. (d) The Developer covenants and agrees that not later than the date (the "Full

Operation Date") that is two years after the date the Developer acquires fee simple interest in the Subject Property Developer shall employ no less than thirty-five (35) full time employees at the Subject Property.

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Section 3. Developer Payments. (a) In consideration for the development by the Developer of the Subject Property in

accordance with the terms of this Agreement, so long as no breach by Developer described in Section 15 of this Agreement shall have occurred and be continuing, the Village shall reimburse the Developer for certain costs to be incurred by the Developer for the Project as itemized on Exhibit C (the “Redevelopment Project Costs”) subject to the limitations and authorization of the BDD Act, the TIF Act and this Agreement. The aggregate payments to the Developer shall in no event exceed $195,000. For purposes of this Agreement, “Redevelopment Project Costs” shall mean and include all costs defined as “business district project costs” in Section 11-74.3-5 of the BDD Act as from time to time amended and “redevelopment project costs” as defined in Section 11-74.4-3(q) of the TIF Act, as from time to time amended. (b) After adoption by the Village of such actions as are necessary to make the BDD

Act and the TIF Act applicable to the Subject Property, the Village shall establish a special tax allocation fund for this Project pursuant to the requirements of the BDD Act and the TIF Act (the “Tovar Special Tax Allocation Fund”) into which the Village shall deposit sums sufficient to annually reimburse the Developer for Redevelopment Project Costs in an amount not to exceed $19,500, as hereinafter provided. However, if the Village (i) has not expanded the boundaries of the BD District to include the Subject Property, (ii) has not amended the BD Plan to authorize the redevelopment of the Subject Property and the financial assistance provided for in this Agreement, (iii) has neither amended the Redevelopment Plan and Redevelopment Project Area to include the Subject Property and authorize the financial assistance provided for in this Agreement nor established a new redevelopment project area and redevelopment plan pursuant

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to the TIF Act that includes the Subject Property and authorizes the financial assistance provided for in this Agreement, or (iv) has not deposited sums in the Tovar Special Tax Allocation Fund sufficient to pay $19,500 per year to Developer, as required by this Agreement, then, notwithstanding any other provision of this Agreement, the Village shall use any funds lawfully available to reimburse Developer $19,500 per year and such funds shall not be limited to (i) retailers’ occupation tax revenue or service occupation tax revenue generated by activity at the Subject Property or (ii) incremental property tax revenue generated by the Subject Property. Section 4. Procedures for and Application of Reimbursement to the Developer. (a) The Developer shall advance all funds and all costs necessary to construct and

complete the Project. (b) To be eligible for reimbursement of any eligible Redevelopment Project Costs,

the Project shall have been constructed and completed (or be under construction) in accordance with the Legal Requirements and this Agreement. In addition, on and after the Full Operation Date, Developer shall be operating Tovar Snow Professionals at the Subject Property employing no less than 35 full-time employees. (c) To establish a right of reimbursement for specific Redevelopment Project Costs

under this Agreement, the Developer shall annually (approximately 30 days before the anniversary date of the Village's approval of this Agreement) submit to the Village or its designated officer or employee a written statement in the form attached to this Agreement as Exhibit D (a “Request for Reimbursement”) setting forth the specific Redevelopment Project Costs for which the annual reimbursement is sought. Each Request for Reimbursement shall be accompanied by such bills, contracts, invoices, lien waivers or other evidence as the Village

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President or his designee shall reasonably require to evidence the right of the Developer to the annual reimbursement in an amount not to exceed $19,500.00 under this Agreement. The Village President or his or her designee shall have twenty (20) days after receipt of any Request for Reimbursement from the Developer to recommend approval for immediate payment or disapproval of such Request and, if disapproved, to provide the Developer in writing and in detail with an explanation as to why he or she is not prepared to recommend such reimbursement. The only reasons for disapproval of any expenditure for which reimbursement is sought shall be that such expenditure is not an eligible Redevelopment Project Cost (as defined by this Agreement), that it is not identified on Exhibit C attached hereto as a "Redevelopment Project Cost," or that the cost was not incurred and the construction was not completed by the Developer in accordance with the Legal Requirements and the provisions of this Agreement, including without limitation all permits issued by the Village, and that such failure to comply with Legal Requirements or this Agreement is an uncured breach of this Agreement. The parties acknowledge that the determination of Redevelopment Project Costs and qualification for reimbursement under this Agreement are subject to the BDD Act and TIF Act, all amendments to the BDD Act and TIF Act both before and after the date of this Agreement, and judicial interpretations of such Acts rendered during the term of this Agreement. The Village has no obligation to the Developer to attempt to modify such judicial interpretations but will cooperate with the Developer in obtaining approval of Redevelopment Project Costs. Section 5. Term. Unless earlier terminated pursuant to Section 15, the term of this Agreement shall commence on the date of execution by both parties and end on the 10th anniversary of such date.

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However, if, as of the 10th anniversary, the Village President or his or her designee (i) has not completed his or her review of the final Request for Reimbursement or (ii) recommended disapproval in whole or in party of a Request for Reimbursement and the parties have not resolved the issues concerning such disapproval, the Village's obligation (if any) to pay Developer pursuant to such Request for Reimbursement shall survive the term of this Agreement. Section 6. Verification of Tax Increment. The Developer shall use its best efforts to cooperate with the Village in obtaining certified copies of all real estate tax bills payable in 2011, and for each subsequent year during the term of this Agreement. The Developer shall deliver to the Village authorization as may be required for the Illinois Department of Revenue to release any sales tax reports attributable to the Developer’s business operations. Section 7. No Liability of Village to Others for Developer’s Expenses. The Village shall have no obligation to pay any cost relating to the development of the Subject Property (other than the reimbursements provided for in this Agreement) or to make any payment to any person other than the Developer, nor shall the Village be obligated to pay any contractor, subcontractor, mechanic, or materialman providing services or materials to the Developer for the development of the Subject Property. Section 8. Assignment. This Agreement may not be assigned by the Developer without the prior written consent of the Village, which consent shall not be unreasonably withheld. The parties agree that it would be unreasonable for the Village to withhold its consent to an assignment of this Agreement, if

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such proposed assignment (i) would occur after the Project is complete and (ii) would be to a person or entity (a) with the experience, capital, and personnel necessary to operate its proposed use, (b) that would use the Subject Property for one or more of the following uses: operation of a snow removal business, manufacturing, light industrial, office, or retail and (c) that would employ, at the Subject Property, at least 35 full time employees. If the Village consents to an assignment, the assignee shall assume and be subject to all Developer's rights and obligations under this Agreement. However, if Developer breaches this Agreement by failing to employ no less than twenty-five (25) full time employees at the Subject Property, as provided in Section 2(d) of this Agreement, Developer shall also be liable for such breach and Assignee and developer shall be jointly liable for repaying any sums due to the Village as a result of such breach. Section 9. Developer Indemnification. The Developer shall indemnify and hold harmless the Village, its agents, officers and employees against all injuries, deaths, losses, damages, claims, suits, liabilities, judgments, costs and expenses (including any liabilities, judgments, costs and expenses and reasonable attorney’s fees) which may arise directly or indirectly from the failure of the Developer or any contractor, subcontractor or agent or employee thereof (so long as such contractor, subcontractor or agent or employee thereof is hired by the Developer) to timely pay any contractor, subcontractor, laborer or materialman; from any default or breach of the terms of this Agreement by the Developer; or from any negligence or reckless or willful misconduct of the Developer or agent or employee thereof (so long as such agent or employee is hired by the Developer). The Developer shall, at its own cost and expense, appear, defend and pay all charges of attorneys, costs and other

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expenses arising therefrom or incurred in connection therewith.

If any judgment shall be

rendered against the Village, its agents, officers, officials or employees in any such action, the Developer shall have no obligation whatsoever, with respect to any acts of negligence or reckless or willful misconduct or other wrongful conduct on the part of the Village or any of its officers, agents, employees or contractors. Section 10. Waiver. Any party to this Agreement may elect to waive any remedy it may enjoy hereunder, provided that no such waiver shall be deemed to exist unless the party waiving such right or remedy does so in writing. No such waiver shall obligate such party to waive any other right or remedy hereunder, or shall be deemed to constitute a waiver of other rights and remedies provided said party pursuant to this Agreement. Section 11. Severability. If any section, subsection, term or provision of this Agreement or the application thereof to any party or circumstance shall, to any extent, be invalid or unenforceable, the remainder of said section, subsection, term or provision of this Agreement or the application of same to parties or circumstances other than those to which it is held invalid or unenforceable, shall not be affected thereby. Section 12. Notices. All notices, demands, requests, consents, approvals or other instruments required or permitted by this Agreement shall be in writing and shall be executed by the party or an officer, agent or attorney of the party, and shall be deemed to have been effective as of the date of actual delivery, if delivered personally, or as of the third (3rd) day from and including the date of

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posting, if mailed by registered or certified mail, return receipt requested, with postage prepaid, addressed as follows: To the Developer: Tovar Snow Professionals 195 Perry Street East Dundee, Illinois 60118 Attn: Jeff Tovar President With a copy to: Holland & Knight LLP 131 South Dearborn Street 30th Floor Chicago, Illinois 60603 Attn: David B. Allswang To the Village: Village of East Dundee Village Administrator 120 Barrington Avenue East Dundee, Illinois 60118 With a copy to: Kathleen Field Orr Kathleen Field Orr & Associates 53 West Jackson Blvd., Suite 935 Chicago, Illinois 60604 Section 13. No Joint Venture, Agency or Partnership Created. Neither anything in this Agreement nor any acts of the parties to this Agreement shall be construed by the parties or any third person to create the relationship of a partnership, agency, or joint venture between or among such parties. Section 14. No Discrimination – Construction. The Developer for itself and its successors and assigns agrees that in the construction of the improvements on the Subject Property provided for in this Agreement the Developer shall not unlawfully discriminate against any employee or applicant for employment because of race, 12

color, religion, sex or national origin. The Developer shall hire applicants and treat employees in a manner that does not unlawfully discriminate based upon race, creed, color, religion, sex or national origin, with respect to all aspects of employment, including but not be limited to, the following: employment upgrading, demotion or transfer; recruitment or recruitment advertising and solicitations or advertisements for employees; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Developer agrees to post in conspicuous places, available to employees and applicants for employment, notices, which may be provided by the Village, setting forth the provisions of this nondiscrimination clause. The Developer shall comply with all applicable laws regarding rate of pay or other forms of compensation. Section 15. Remedies – Liability. (a) If, in the Village’s judgment, the Developer is in material default of this

Agreement, the Village shall provide the Developer with a written statement indicating any failure on the Developer’s part to fulfill its obligations under this Agreement. Except as required to protect against further damages, the Village may not exercise any remedies against the Developer in connection with such failure unless Developer has not cured such default within thirty (30) days after giving such notice. If such default cannot be cured within such thirty (30) day period, such thirty (30) days period shall be extended for such time as is reasonably necessary for the curing of the same, so long as the Developer diligently proceeds with such cure; if such default is cured within such 30-day or extended period, the default shall not be deemed to constitute a breach of this Agreement. A default not cured as provided above shall constitute a breach of this Agreement. Any failure or delay by the Village in asserting any of its

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rights or remedies as to any default or alleged default or breach shall not operate as a waiver of any such default or breach of any rights or remedies it may have as a result of such default or breach. (b) If the Developer materially fails to fulfill its obligations under this Agreement

after notice is given by the Village and any cure periods described in paragraph (a) above have expired, the Village may elect to terminate its obligations under this Agreement or exercise any right or remedy it may have at law or in equity, including the right to specifically enforce the terms and conditions of this Agreement. If any voluntary or involuntary petition or similar pleading under any section or sections of any bankruptcy or insolvency act shall be filed by or against the Developer, or any voluntary or involuntary proceeding in any court or tribunal shall be instituted to declare the Developer insolvent or unable to pay the Developer’s debts, or the Developer makes as assignment for the benefit of its creditors, or a trustee or receiver is appointed for the Developer or for the major part of any of the Developer’s property, the Village may elect, to the extent such election is permitted by law and is not unenforceable under applicable federal bankruptcy laws, but is not required, with or without notice of such election and with or without entry or other action by the Village, to forthwith terminate this Agreement. (c) If, in the Developer’s judgment, the Village is in material default of this

Agreement, the Developer shall provide the Village with a written statement indicating in adequate detail any failure on the Village’s part to fulfill its obligations under this Agreement. The Developer may not exercise any remedies against the Village in connection with such failure unless the Village has not cured such default within thirty (30) days after giving such notice. If such default cannot be cured within such thirty (30) day period, such thirty (30) day period shall

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be extended for such time as is reasonably necessary for the curing of the same, so long as the Village diligently proceeds with such cure; if such default is cured within such 30-day or extended period, the default shall not be deemed to constitute a breach of this Agreement. Any failure or delay by the Developer in asserting any of its rights or remedies as to any default or any alleged default or breach shall not operate as a waiver of any such default or breach of any rights or remedies it may have as a result of such default or breach. (d) In addition to any other rights or remedies, a party may institute legal action

against the other party to cure, correct or remedy any default, or to obtain any other remedy consistent with the purpose of this Agreement, either at law or in equity, including, but not limited to the equitable remedy of an action for specific performance; provided, however, no recourse under or upon any obligation contained herein or for any claim based thereon shall be had against the Village, its officers, agents, attorneys, representatives or employees in any amount or in excess of any specific sum agreed to be paid by the Village hereunder, and no liability, right or claim at law or in equity shall be attached to or incurred by the Village, its officers, agents, attorneys, representatives or employees in any amount in excess of any specific sums agreed by the Village to be paid hereunder and any such claim is hereby expressly waived and released as a condition of and as consideration for the execution of this Agreement by the Village. Notwithstanding the foregoing, in the event either party shall institute legal action against the other party because of a breach of any agreement or obligation contained in this Agreement, the prevailing party shall be entitled to recover all costs and expenses, including reasonable attorneys’ fees, incurred in connection with such action.

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(e)

The rights and remedies of the parties are cumulative and the exercise by a party

of one or more of such rights or remedies shall not preclude the exercise by it, at the same time or different times, of any other rights or remedies for the same default or for any other default by the other party. This Agreement shall be interpreted and enforced in accordance with the laws of the State of Illinois. Any legal proceedings shall be commenced in the Circuit Court of Kane County. Section 16. Developer’s Covenants. The Developer hereby covenants and agrees to repay to the Village any and all sums paid by the Village to the Developer pursuant to this Agreement in the event the Developer ceases to operate its business at the Subject Property or employ less than twenty-five (25) full-time persons at the Subject Property at any time after the Full Operation Date. Section 17. Amendment. This Agreement, and any exhibits attached to this Agreement, may be amended only in a writing signed by all parties with the adoption of any ordinance or resolution of the Village approving said amendment, as provided by law, and by execution of said amendment by the parties or their successors in interest. Except as otherwise expressly provided herein, this Agreement supersedes all prior agreements, negotiations and discussions relative to the subject matter hereof. Section 18. Time; Force Majeure. Time is of the essence of this Agreement; provided, however, a party shall not be deemed in material breach of this Agreement with respect to any obligations of this Agreement on such party’s part to be performed if such party fails to timely perform the same and such failure is due

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in whole or in part to any strike, lock-out, labor trouble (whether legal or illegal), civil disorder, inability to procure materials, wet soil conditions, failure or interruptions of power, restrictive governmental laws and regulations, wrongful failure of governmental agencies to issue necessary approvals or permits, condemnations, riots, insurrections, war, fuel shortages, accidents casualties, floods, earthquakes, fires, acts of God, epidemics, quarantine restrictions, freight embargoes, acts caused directly or indirectly by the other party (or the other party’s agents, employees or invitees) or similar causes beyond the reasonable control of such party (“Force Majeure”). If one of the foregoing events shall occur or either party shall claim that such an event shall have occurred, the party to whom such claim is made shall investigate same and consult with the party making such claim regarding the same and the party to whom such claim is made shall grant any extension for the performance of the unsatisfied obligation equal to the period of the delay, which period shall commence to run from the time of the commencement of the Force Majeure; provided that the failure of performance was reasonably caused by such Force Majeure. Section 19. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized officers on the above date at East Dundee, Illinois. Village of East Dundee, an Illinois municipal corporation

By:

____________________________________ President 17

Attest: ________________________________ Village Clerk

Tovar Snow Professionals

_________________________________________ Its President, Jeff Tovar

eastdundee/tovar snow.agm

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Exhibit B Legal Description of Subject Property

Exhibit A Depiction of the Route 25 Business District

Exhibit C Estimated Project Budget and Estimated Redevelopment Project Costs Total Project Budget: Land and current building: Improvements to building and land: TOTAL: $650,000 $350,000 $1,000,000

Redevelopment Project Costs (included in Total Project Budget): Interior and exterior building improvements and renovations

$195,000

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Exhibit D
REQUEST FOR REIMBURSEMENT [Date] Village of East Dundee
120 Barrington Avenue East Dundee, Illinois 60118

Re: Dear Sir:

Redevelopment Agreement dated __________________, by and between the Village of East Dundee, Illinois, and Tovar Snow Professionals (the “Developer”)

You are requested to reimburse the Developer described above in the amount of $219,500.00 for the purpose(s) set forth in this Request for Reimbursement. 1. 2. The amount of $19,500.00 requested to be disbursed pursuant to this Request for Reimbursement will be used to reimburse the Developers for those Redevelopment Project Costs detailed in Schedule 1 attached to this Request for Reimbursement. The undersigned certifies that: (i) the amounts included in 1 above were made or incurred in accordance with the construction contracts, and building permits heretofore in effect; (ii) the amounts paid or to be paid, as set forth in this Request for Reimbursement, represent a part of the funds due and payable for Redevelopment Project Costs; (iii) the expenditures for which reimbursement is being sought are proper Redevelopment Project Costs identified in Exhibit C to the Redevelopment Agreement and have not been included in any previous Request for Reimbursement; (iv) the moneys requested will reimburse the Developer for its funds actually advanced for Redevelopment Project Costs; (v) the amount of Redevelopment Project Costs to be reimbursed in accordance with this Request for Reimbursement, together with all amounts reimbursed to the Developer pursuant to the Agreement, is not in excess of $195,000; (vi) the Developer is not in breach under the Redevelopment Agreement and nothing has occurred to the knowledge of the Developer that would prevent the performance of its obligations under the Agreement. Attached to this Request for Reimbursement is Schedule 1, together with copies of documents (which may include invoices or bills of sale and Mechanic’s Lien Waivers) covering all items for which reimbursement is being requested, on which it has been noted all Redevelopment Project Costs heretofore reimbursed to the Developer. By: APPROVED: Village of East Dundee, an Illinois municipal corporation Date:

3.

Date:

22

23

MEMO To: The Village Board From: Heather Maieritsch, Deputy Village Administrator

Below I have addressed the questions the Board had at the last meeting regarding the Connect CTY System and contract. • At the last board meeting the Board approved the Connect CTY Contract but reduced the contract terms from three years to one. If the board would like a one year contract instead of a three year contract there will be an additional charge of $1,250 to the $3,250 base price. Please note that if the Village enters into a 3 year contract the service fee in the amount of $1,250 per year is waived. Three Year Contract $3,250 per year total after 3 years = $9,750 One Year Contract $3,250 fee + $1,250 administrative fee total for 1 year = $4,500 (If Village keeps system for three years cost would be $13,500) • As part of the Village’s Connect CTY Service. The CTY Service provides the following features: a) Unlimited Messaging. Unlimited any-time messages throughout the Term, enabling the Client to communicate with residents and businesses within its jurisdiction. b) Database. NTI will provide the Client with one (1) phone number per physical address to the extent that such numbers are available (“NTI Data”). The Client may provide up to two (2) phone numbers and two (2) email addresses per Recipient (the “Client Data”), provided, that, for business Recipients, the secondary phone numbers must not tie up more than one phone line of a multi-line business. The Client Data, the NTI Data, and the data input by individuals via the CTY Web Portal, may hereinafter be collectively referred to as the “Recipient Data”. NTI may add new features and functionality from time-to-time and the Client agrees to comply with all relevant rules and instruction pertaining to the use of such new features and functionality.

District 300 School District uses a system they call the Rapid Communication System (RCS) this system is through the company Alert Now which is a service of Blackboard Connect which is the same company that we currently use. Blackboard connect has a

variety of services and branched tailored to schools, local governments, each of which under a different name based on the specialty.

The school district spends just over $40,000 a year for the service and cost structure is designed the same as ours. You pay a fee based on how many households you wish to service.

Below is a message summary of the last call. Please feel free to contact me directly if you have any additional questions about the program.

Message Summary: Dial-in Outreach Communication - 1 Feb 2011 1:32 PM (CT) Message Delivery Statistics Below is a summary of your message results. Click Details for a list of individuals and where they were contacted.

Total Contacts Selected = 1,589 Total Unique Deliveries = 1,524* * What are Unique Deliveries? Unique deliveries are the actual number of calls that are placed. This number will be lowered by multiple contacts that share the same phone number.

Successful Deliveries = 1,195 (78.4%) Unsuccessful Deliveries = 329 (21.6%)

Successful Deliveries Answering Machine Live Delivery Unsuccessful Deliveries Bad Phone Number Busy Fax/Modem Hangup No Answer Opted-Out Phone Network Busy Undeliverable

1,195 518 677 329 10 10 17 2 111 1 21 157 1,524*

Total Unique Phone Deliveries

Total E-mails Selected

182

 

CONSULTING SERVICES AGREEMENT This Consulting Services Agreement (the “Agreement”) is entered into by and between Village of East Dundee (hereinafter the “Village”) and Mitchell, Vaught & Taylor, Ltd.for services rendered by Project Manager, James R. Nowicki or Staff Consultant, Emily H. Agosto, Mitchell, Vaught & Taylor, Inc. employees (hereinafter “Consultant”, “Project Manager” or, “Staff Consultant”). RECITALS WHEREAS, Village of East Dundee is seeking a Consultant to perform duties of the Finance Director & Treasurer, Project Manger and/or Staff Consultant maintaining efficient and effective financial systems and procedures, organizing and maintaining a records management system for the entire Village, and preparing a variety of complex reports for decision-making purposes under the supervision of the Village Administrator; and WHEREAS, the Project Manager and Staff Consultant have the professional expertise, education, and credentials to provide these services and has agreed to assume responsibility for this Agreement. NOW, THEREFORE, Village and Mitchell, Vaught & Taylor, Inc. agree as follows: SECTION 1. SCOPE OF WORK

SECTION 2. DURATION This Agreement shall commence on execution and remain in effect through completion. Project is estimated to be completed in four to five months. SECTION 3. PRICING Village will pay Consultant for consulting services summarized in Section 1 at a rate of $60.00 per hour for the Project Manager, James R. Nowicki and $50.00 an hour for the Staff Consultant, Emily Agosto. Materials shall be reimbursed to Consultant for actual costs at time of payment. SECTION 4. PAYMENT Payment shall be made in accordance with the Local Government Prompt Payment Act. A purchase order will be issued for payment purposes. Reference the purchase order number on all invoices.

SECTION 5. HOLD HARMLESS CLAUSE The Consultant agrees to indemnify, save harmless and defend Village of East Dundee, its agents, servants, and employees, and each of them against and hold it and them harmless from any and all lawsuits, claims, demands, liabilities, losses and expenses, including court costs and attorney’s fees, for or on account of any injury to any person, or any death at any time resulting from such injury, or any damage to property, which may arise or which may be alleged to have arisen out of or in connection with the work covered by this Agreement caused directly by the negligence or willful or wanton conduct of the Consultant. The foregoing indemnity shall apply except if such injury, death or damage is caused directly by the gross negligence or willful or wanton conduct of Village of East Dundee, its agents, servants, or employees or any other person indemnified hereunder. SECTION 6. INSURANCE The Consultant must obtain, for the term and any extension of it, insurance issued by a company or companies qualified to do business in the State of Illinois and provide the Village with evidence of insurance. Insurance in the following types and amounts is necessary:

Comprehensive General (Public) Liability in a broad form, to include coverage for the following where exposure exists: Premises/Operations, Independent Contractors, Products/Completed Operations, Personal Injury and Contractual Liability, limits of liability not less than: General Aggregate Limit Each Occurrence Limit $ 1,000,000 $ 1,000,000

Consultant agrees that with respect to the above required insurance, Village of East Dundee shall: • Be provided with thirty (30) days notice, in writing, of cancellation or material change; • Be provided with Certificates of Insurance evidencing the above required insurance, prior to commencement of this Contract and thereafter with certificates evidencing renewals or replacements of said policies of insurance at least fifteen (15) days prior to the expiration of cancellation of any such policies. Forward Notices and Certificates of Insurance to the Village Administrator.

SECTION 7. CONSULTANT The Consultant is not an employee or agent of Village of East Dundee and the Village has no right to control or direct Consultant’s manner, detail, or means by which Consultant accomplishes tasks under this Agreement.

SECTION 8. NO IMPLIED WAIVERS The failure of either party at any time to require performance by the other party of any provision of this Agreement shall not affect in any way the full right to require such performance at any time thereafter. Nor shall the waiver by either party of a breach of any provision of this Agreement be taken or held to be a waiver of the provision itself. SECTION 9. SEVERABILITY If any part of this Agreement shall be held to be invalid for any reason, the remainder of this Agreement shall be valid to the fullest extent permitted by law. SECTION 10. JURISDICTION, VENUE, CHOICE OF LAW This Agreement shall be governed by and construed according to the laws of the State of Illinois. Jurisdiction and venue shall be exclusively found in the Cook County Circuit Court, State of Illinois. SECTION 11. NOTICES AND COMMUNICATIONS All notices and communications which may be given by the Consultant to East Dundee relative to this Agreement shall be addressed to the Village Administrator. SECTION 12. ASSIGNMENT, ALTERATIONS AND MODIFICATIONS Except as otherwise provided herein, this Agreement shall not be assigned, altered or modified without the express written consent of both parties. This Agreement supersedes any and all other agreements, oral or written, between the parties hereto with respect to the subject matter hereof. SECTION 13. TERMINATION This Agreement may be terminated, at will, by either party effective upon thirty (30) days written notice to the other party. In this event, the Consultant shall be compensated only for services that have been satisfactorily provided and approved. SECTION 14. NON-DISCLOSURE PROVISION Consultant hereby agrees to abide by the following terms and conditions with regard to any information or records, including electronically stored data or media that the Consultant receives from Village of East Dundee, the employees or agents of Village of East Dundee or Village of East Dundee elected officials as a result of this Agreement. This non-disclosure provision, in its entirety, shall survive the termination of this Agreement. This provision shall apply to the performance of services as agreed and as are actually performed. The Village of East Dundee and Consultant agree and understand that the rendering of services by Consultant pursuant to this Agreement shall in no way alter the Village of East Dundee’s, or its elected officials’, exclusive supervision, management, and control of their property and records.

Consultant agrees not to sell, assign, license, market, transfer or otherwise engage in any

unauthorized use of the information or records received from the Village, the employees or agents of Village of East Dundee or East Dundee’s elected officials. Consultant further agrees not to copy such records or otherwise disclose such records or information to a third party or entity without the express written consent of the Village Administrator for East Dundee or the applicable elected official Consultant will instruct its personnel to keep all such records and information confidential and to use the same care and discretion with regards to those records and information as they would use with data belonging to Consultant that Consultant has designated as confidential. Consultant agrees to continue to use safeguards to prevent the unauthorized use or disclosure of these records or information until the Consultant either destroys such records or returns those records to the Village or elected official. If the Consultant receives a third party request for the records of Village of East Dundee or elected official, including any request pursuant to the Illinois Freedom of Information Act, Consultant agrees to refer that party to the Village Administrator so that the Village may respond to said request. The disclosure of information or records, when mandated by state or federal law, court order or lawful subpoena, shall not constitute a breach of this agreement so long as the Consultant notifies the Village Administrator upon receipt of such request and cooperates with efforts by the Village or applicable elected official should they attempt, at their own expense, to challenge such a request. Consultant agrees to immediately notify the Village Administrator or the applicable elected official if it becomes aware of any unauthorized use or disclosure of records or information belonging to the Village or its elected officials. Consultant further agrees that it will destroy or return any records or copies of records, including electronically stored data or media, received from the Village, the employees or agents of East Dundee or East Dundee’s elected officials within eight years from the termination of this Agreement. If said destruction is not witnessed by an agent, employee or officer of the Village, Consultant will send the Village Administrator written notification confirming the destruction of said records within five days from the date of destruction. In the event that Consultant commits a breach of this agreement, the Village and its elected officials shall retain the right to pursue all legal remedies at law or equity, including monetary damages and/or injunctive relief for that breach. Consultant shall further be obligated to indemnify, save harmless and defend East Dundee, its agents, servants, employees as provided herein. SECTION 15. INFORMATION SECURITY In the process of performing services to Village of East Dundee the Consultant may come in contact with information deemed important and proprietary to East Dundee. The Consultant agrees that any services performed for East Dundee, whether on East Dundee premises or not, will meet or exceed East Dundee’s information security policy and privacy standards. East Dundee reserves the right to audit Consultant’s performance in meeting these standards.

SECTION 16. THIRD PARTY NETWORK ACCESS Consultants who require access to East Dundee’s network will be required to sign an East Dundee Third Party Network Access Request form before a logon to East Dundee's enterprise network is provided, and will be required to comply with the policy statements contained therein for the duration the access is granted. IN WITNESS HEREOF, the undersigned have caused this Agreement to be executed in their respective names on the dates hereinafter enumerated.

Village of East Dundee:

Mitchell, Vaught & Taylor, Inc.:

Date _____________

Date ______________

 

Village Board Members and Staff, After you have had a chance to review the attached memo, I want to have the Village Board consider this issue in context of the support infrastructure for our new water treatment plant that will begin construction in about 45 days. Specifically, I have on the COTW Agenda discussion about extension of the water line loop along Christina Drive to coincide with the new water plant coming on line. Further, I suggest paying for that loop out of future Prairie Lakes TIF revenues, or other TIF District revenues. Joe Palumbo has already built about a third of this line that will benefit the entire Village. Perhaps we can accelerate his reimbursement for that part of his infrastructure "investment" from future Prairie Lakes TIF revenues. It is only $251,000 out of $1,566,000 he has spent to date. In context of the current Redevelopment Plan with PAL Development, that water line was intended to only serve the Terra Business Park. However, if we move forward with the Christina Drive water line loop, this $251,000 investment already spent by PAL Development would have had to come from a Village-wide source of revenue to serve all of the Village residents. The engineering estimate to complete the loop is $550,000. Consequently, if the Village Board is inclined to consider financially assisting PAL Development above those provisions of the current agreement, I believe this item is one area that truly would have been bourne by the Village as a whole. As a gesture of cooperation with developers in town, I think this would be an appropriate compromise to consider. I have Doug Bergren working on projections of TIF Revenues from the Prairie Business Park TIF. After this year, it looks like we can expect about $400,000+ annually in currently unencumbered TIF increment. This would run through 2023, the last year of the Prairie Lakes TIF if allowed to run through full term.

Robert J. Skurla Village Administrator Village of East Dundee, IL 847-426-2822 Ext 228 Office 847-815-0472 Cell
 

VILLAGE OF

EAST DUNDEE
120 Barrington Avenue, East Dundee, Illinois 60118 847-426-2822 fax: 847-426-2956

February 7,2011 To: Village Board

From: Robert J. Skurla Village Administrator Ref: Response t o correspondence dated January 12,2011 from Peter Bazos ref: Terra Business Park Subdivision. Board Members, I, along with the Village Engineer, Joe Heinz, and the Economic Development Consultant, Doug Bergren, met with Joe Palumbo and Peter Bazos to discuss amendments they would like to see introduced t o the current TIF Redevelopment Agreement with the Village. See their attached letter. The primary reasons for these requested changes are:
1-With the change in the current economy since 2008, the industrial market has all but "dried up" leaving little if any new or expanded users to either lease out his current spec building (which sits

with an 80% vacancy) or seek new "build t o suit" buildings elsewhere in the current park. 2 - New parcels have been added to Terra Business Park proper (Parcels C and D on the attached map) that have been included in the Village's Comprehensive Plan amendment from last summer. See the attached map. 3 - A new Fourth TIF District, the Christina Drive TIF District, was created last summer which included Parcels B, C and D. But the current zoning for lots C and D remain R-1-Single Family rather than M-1- Limited Manufacturing as consistent with the recent Comp Plan Amendment. Also, a third Business Development District - Christina Drive BDD was created simultaneously t o the Christina Drive TIF that covers Parcels BC and D.. Revenues from this BDD may be used in similar ways as TIF revenue , proceeds. 4 -Contiguity of TIF #3 -Route 25 TIF District (aka "Dundee Crossings TIF") and TIF #4-Christina Drive TIF under state TIF law allows increment from one t o be shared in the other for TIF eligible expenses. This is not the case, however, between BDD Districts. Consequently, the developer, PAL Development would like the Village t o re-open negotiations on the terms of the TIF Redevelopment Agreement entered into between the Village and PAL in April, 2008. While there are several issues that the Developer wishes t o amend, I believe the following list is a synopsis of changes:

1-Change zoning of Parcels C an D t o M-1 consistent with the recently amended Comp Plan. 2 -Amend the current subdivision plat t o reflect the new roadway location and elevations, and

add Parcel C and D to the Subdivision. 3 -Amend the identified "Phases" of the current Redevelopment Agreement to shorter, incremental segments that can be developed in smaller segments yet able t o sit on their own for Village acceptance. Current agreement calls for all of an entire larger "Phase" be completed before Village would allow recapture of any TIF Revenues. 4 - Allow all of Parcels A, B, C and D t o be considered eligible "Project Area" for TIF generation and recapture by the ~ d v e l o ~ e r . 5 -Guarantee, to the best of the Village's ability the retention of the "grandfathering" that the current lots in Terra Business Park enjoy relative to Kane County Impact Fees. 6 -Allow the Developer t o access excess TIF Revenues that might be available from adjacent TIF Districts to accelerate TIF Recapture for the estimated $3 million of infrastructure improvements already expended by him under the current agreement. 7 - Finally, the Developer is seeking t o have his portion of TIF increment generated by his project to be increased from the current 50% up t o 90%. While the total list of requested changes might be longer than those listed above, I believe these take in the heart of his requests. My initial inclination is to consider the first five items listed above and bring a group of recommendations back t o the Village Board surrounding their consideration. I am not inclined t o seriously consider or recommend the requests in items 6 and 7 without more extensive discussion with the Village Board. I will want t o have more feedback from our Village Engineer and Village Planning Consultant on all these issues before making those specific recommendations for your collective consideration. We will be meeting tomorrow on these items. (See attached correspondence from Peter Bazos and map)

1250 Larkin Avenue Ste. 100 Elgin, IL 60123 Phone: 847-742-8800 Fax: 847-742-9777 E-mail: pbazos@sbfklaw.com

To: Email: From: Date: Re:
-

Mr. Robert Skurla, Village Administrator Village of East Dundee rskurla@eastdundee.net Peter C. Bazos, Esq. January 12,2011 Terra Business Park Subdivision (Palumbo)

Dear Bob: First, I want to thank you for arranging a meeting in your office on January 5,201 1 at which you, Joe Hines and Heather Maieritsch met with Joe Palumbo and I to discuss the Terra Business Park Subdivision. More specifically, at that meeting we discussed certain changes and amendments that were needed or otherwise, in our opinion, advisable in order to assure the success of the development for the mutual benefit of the Developer and of the Village. (There can be no doubt that the successful development and build-out of the Terra Business Park would benefit both parties.) As you requested, following is a bullet-point summary of the actions and amendments which the Developer is proposing to the Village. To assist'in your review of those matters, please refer to the following two documents that are enclosed: (a)
(b)

A drawing entitled "Terra Business Park" on which I have labeled Parcels A, ByC and D; and

A copy of the Final Plat of Subdivision of Terra Business Park Subdivision (which was provided to me at our meeting by Joe Hines, and which needs to be corrected due to mutually agreed upon changes in phasing and road location).
I. ZONING

January 17,2011

I

1.1

By way of background, Parcels A and B are already zoned under the Village's planned development ordinance created with respect to Terra Business Park (the "Terra Business Park Planned Development Ordinance"). The Terra Business Park Planned Development Ordinance should be amended so as to include Parcels C and D on the attached map. (Note that the Village did, in the summer of 2010, already amend its comprehensive plan so as to include Parcels C and D as proposed industrial zoning, so there should be no need to amend the comprehensive plan any further.) 11. AMENDED PLAT OF SUBDIVISION FOR TERRA BUSINESS PARK

1.2

2.1 2.2

By way of background, the current plat of subdivision for Terra Business Park Subdivision only includes Parcels A and B. Parcel C needs to be added. Additionally, the road configuration of portions of Christina Drive and Rock Road, built, - differ fiom those configurations as shown on the Final Plat. These changes were made with the approval of the Village. However, as part of the subdivision plat amendment, or as part of a vacation / re-dedication of right-of-way (which, I understand, has been discussed by Mr. Palumbo's engineer and Village Engineer Joe Heinz) the location of the roads should be corrected. Care needs to be taken so as to not lose the "grandfathering" that the existing lots in the Terra Business Park currently enjoy with respect to the KDOT Transportation Impact ~ e e s .

2.3

'

3.1

The original TIF District that encompasses a portion of the Terra Business Park Subdivision was created by the Village in 2006 and is known as the "Dundee This Crossings TI)?". Dundee Crossings TIF only encompasses Parcel A of the Terra Business Park Subdivision. The budget for this Dundee Crossings TIF District is attached hereto as Exhibit 1.

The Terra Business Park Subdivisionwas platted in December of 2007, thus avoiding the

application of the new KDOT increased impact fees that was put into effect as of 1/1/2008. KDOTYs ordinance applies the lower, pre-2008 fee schedule to any lots created prior to 1/1/2008. But if a lot is subsequently changed and a new PIN I assigned in 201 1 or 2012 due to re-platting, the administrator at KDOT indicates that the "grandfathering" will be lost as to the re-platted lot. This needs to be further investigated / negotiated with ISDOT. I believe it will be necessary for the Developer and its engineer, accompanied by the Village and Village Engineer, to meet with KDOT on this important issue.

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January 17,2011

3.2

In the summer of 2010 the Village created another district known as the "Christina Drive TIF District". The budget for this Christina Drive TIF District is attached hereto as Exhibit 2. This new Christina Drive TIF District encompasses Parcels B, C and D. The Developer requests that a Redevelopment Agreement be entered into between the Developer and the Village(siini1ar to the original Redevelopment Agreement in place between the parties with respect to the Dundee Crossings TIF, but as amended as V requested in Section I below) covering the Developer's Parcels B and C that are part of the Christina Drive TIF. Provide for total combined Base TIF Assistance (combined with the Base TIF Assistance in the original RDA) that totals $9,000,000. The new Christina Drive TIF District is contiguous to the Prairie Lakes TIF District (North of Route 68). If (i) there is note indebtedness due to the Developer as to the Christina Drive TIF District and (ii) there is insufficient TIF increment as yet generated fiom the Christina Drive TIF District to pay such indebtedness and (iii) the Village agrees to pay any portion of such Christina Drive TIF District using Prairie Lakes TIF District increment, then each dollar of Prairie Lakes TIF District increment so applied by the Village will expedite the retirement of note indebtedness owed by the Village to the Developer with respect to the Christina Drive TIF District. Similarly, the new Christina Drive TIF District is contiguous to or otherwise connected with (i) the Dundee Crossings TIF District (to the South and (ii) the Downtown TIF (to the West). If (i) there is Village Note indebtedness due to the Developer as to Parcels B or C in the Christina Drive TIF District and (ii) there is insufficient TIF increment as yet generated fiom the Christina Drive TIF District to pay such indebtedness and (iii) the Village agrees to pay any portion of such Christina Drive TIF District Note Indebtedness to the Developer using either (A) Dundee Crossing excess TIF Increment (other than increment arising fiom the development of Terra Business Park) or (B) Downtown TIF District excess TIF Increment, then each dollar so applied by the Village will expedite the retirement of Note indebtedness owed by the Village to the Developer with respect to the Christina Drive TIF District.

3.3 3.4

3.5

3.6

IV. AMENDMENT TO ORIGINAL DEVELOPMENT AGREEMENT BETWEEN VILLAGE AM) DEVELOPER @ W E E CROSSINGS TIF)
4.1 By way of background, there exists between the Village and the Developer a certain day Development Agreement dated the - of April, 2008 concerning Parcel A only within the Terra Business Park Subdivision (the "Original RDA"). This RDA was created with respect to the Dundee Crossings TIF. Shortly after the execution of the Original RDA, the US economy in general, and the cornmerciaVindustrial market in particular, went into a historic decline, and remains in

4.2

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January 17,2011

this troubled condition. These market conditions have seriously adversely impacted the build-out of Terra Business Park Subdivision. 4.3 To date, the costs already incurred by the Developer installing roads, utilities and other such intkastructure is now approximately $3 million, and not all of the subdivision h&astructurehas yet been installed. Furthermore, a future traffic signal at the intersection of Christina Drive and Route 25 (which will be beneficial to the Terra Business Park, to other properties to the north, and to the Village in general) may have to be installed in the future. The Original RDA only allows the Developer a maximum of $4,200,000.00 of assistance ("'Base TIF Assistance") allocated among the "phases" of the project as specified in Section 6(b) of the Original RDA. The Remaining funds are not adequate to fairly reimburse the Developer for the work remaining to be done. The Developer requests that the Original RDA be amended in the following sections in the follow respects: REQUESTED AMENDMENT SECTION Here and elsewhere, the concept of "phasing" should be eliminated. On 2 three prior occasions, the Village Staff and the Developer have agreed on mutually agreed upon changes to the original phasing plan. The Developer has already installed certain roads and i&astructure and has already erected a building. The balance of the subdivision will be improved as demand dictates. Here and elsewhere, the deadline of December 3 l,20 12 for the 3(a) resubdivision of large Lot 5 should be eliminated (consistent with the concept of eliminating phasing). In this market, the Developer cannot properly project the demand for this large Lot 5, and it would be a mistake to insist that it be M e r subdivided in a purely speculative manner, not knowing what type of use might seek to be located there. Increase the Base TIF Assistance fiom $4.2 million to a combined Base 6(b) TIF Assistance (combined with the Base TIF Assistance under the new RDA discussed in Article I11 above) of $9,000,000. Since the execution of the Original RDA, the "assistance gap" has grown, given the plunge in real estate prices. Without additional assistance, the Developer will not have - funds adequate to complete the subdivision improvements. Eliminate the allocation of the Base TIF Assistance among "phases" 6(b) (consistent with the above request for eliminating the concept of "phasing"). 6(d)(i) and Pay to the Developer 90% of available TIF increment, for all eligible TIF costs incurred by the Developer up to the revised (increased) Base TIF (ii) Assistance level. The remaining 10% of the TIF increment would be retained by the Village in the for other purposes allowed by the TIF Act. The Dundee Crossings TIF District is contiguous to or otherwise New

4.4

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January 17,2011

New

connected with (A) the Christina Drive TIF District and (B) the Prairie Lakes TIF District, each to the North.. If (i) there is note indebtedness due by the Village to the Developer as to the Dundee Crossings TIF District and (ii) there is insufficient TIF increment as yet generated fiom the Dundee Crossings TIF District to pay such indebtedness and (iii) the Village agrees to pay any portion of such Dundee Crossings TIF District Note Indebtedness using (1) Christina Drive excess TIF increment (other such increment generated fiom any portion of the Terra Business Park, Parcels B or C)) or (2) fiom the Prairie Lakes TIF District, then each dollar of such increment so applied by the Village will expedite the retirement of note indebtedness owed by the Village to the Developer with respect to the Dundee Crossings TIF District. Similarly, the Dundee Crossings TIF District is contiguous to the Downtown TIF (to the West). If (i) there is Village Note indebtedness due to the Developer as to Dundee Crossings TIF District and (ii) there is insufficient TIF increment as yet generated from the Dundee Crossings TIF District to pay such indebtedness and (iii) the Village agrees to pay any portion of such Dundee Crossings TIF District Note Indebtedness to the Developer using Downtown TIF District excess TIF Increment, then each dollar so applied by the Village will expedite the retirement of Note indebtedness owed by the Village to the Developer with respect to the Dundee Crossings TIF District.

Bob, I would like to observe fiom my perspective (as an attorney who specializes in representing developers) that, in undertaking to develop the Terra Business Park Subdivision, Mr. Palurnbo has taken on a great amount of financial risk. Nevertheless, he has performed his obligations to date, having installed Christina Drive and erected a 50,000 square foot building (building cost exceeded $3,000,000) and otherwise installed infl-astructurealong the easterly side of his project. He then went forward and constructed a speculative industrial , building as required by the Original RDA. He hopes to continue to develop this Subdivision and see vertical development take place since, under the "pay as you go" reimbursement provisions of the Original RDA, he will not receive any increment unless the Village receives increment itself. We all know that TIF increment derives, for the most part, fiom the construction of new structures on the property. We hope the Village will accept the above requests in the spirit for which they are intended-an effort to re-energize and facilitate the successful completion of this project. To that end I will wait to hear fiom you. Joe Palumbo and I would be happy to meet with you again andforto appear before the Village Board for discussion if you feel that is appropriate. Thank you and best regards. Peter C. Bazos

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January 17,2011

Cc:

Joe Palurnbo

Page 6

  February 11, 2011  To:  Village Board 

From:  Robert J. Skurla  Ref:  Christina Drive water line loop 

The construction of the Village’s new water treatment plant in the Prairie Lakes Business Park will  commence at the end of March. It is expected to take one entire year to complete and will be ready to  test to go on‐line in April of 2012.  Once the plant goes on‐line, the old water plant and our two current  operating wells will go inactive and the entire Village will be served by our new water plant and the two  new wells that were drilled on the same site.  Unfortunately, all of the newly treated water will travel to  the rest of the Village from one pipe running from Prairie Lakes along Route 68 all the way to Route 25  before it starts to branch off.  If left to operate under that scenario, the Village runs the risk of having a  water main break along Route 68 that would shut down water service to the entire Village.  The logical  solution is construction of a water main loop from the proposed plant south along Christina Drive, as  extended, to meet the water line along Route 72 serving the Rock Road Business Park area.  The engineer’s cost estimates to extend this line are $550,000 which includes design engineering.  PAL  Development has already installed about 2600 feet of twelve inch water line at a cost of about  $251,300, that would meet our proposed loop line.  I am recommending that the Village Board make the  design and construction of this line a priority in the upcoming budget.                         

 

Community Events

St. Patrick's Day Parade Saturday, March 12th 11am Shredding Event May Saturday, 14th 9-12pm Memorial Day Parade Sunday, May 29th 2:00pm Lunch in Parks Wednesday's June 1st, July 6th, August 3rd from 11:30-1pm Movie in the Parks (Friday's) June 17th Lions Park start time 7:00pm Band The Connexion Movie "Monsters Versus Aliens" July 29th Depot 7:00pm Band Cover Story Movie "The Karate Kid" August 5th Lions Park 7:00pm Band 28 Days Movie "Yogi Bear" Music at the Depot June 16th and July 14th 6-8:30pm Dickens in Dundee Saturday & Sunday December 1st and 2nd
   

Main Street Development Consulting
202 N. Main Mt. Carroll, IL 61053 815.541.4379
Email: doug_bergren@yahoo.com

February 11, 2011 Robert Skurla, Village Administrator Village of East Dundee, IL 120 Barrington Avenue East Dundee, IL 60118 Dear Bob, Attached to this letter is a copy of the current contract with the Village of East Dundee for Economic Development services. I am respectfully requesting that the Village renew my contract for the upcoming twelve month period under the same terms, conditions, and compensation rate. The Village has been steered toward the creation of Business Development Districts which allowed the Village to completely drop the Economic Development Budget from the General Fund and switch it to the BDD Fund. Those freed up amounts were then able to be shifted to other General Fund budgets such as Police, Public Works, and Administration. There are currently many on-going efforts to enhance the Village’s fiscal condition, a few of which includes: • the Independent Living Senior Apartments and hopefully, like facilities adjacent • PACE routes that will include the above • annexation of GAT Guns and the other businesses south of McGraw Forest Preserve • the reoccupation of the Saturn dealership of which there is still interest • to entice WalMart to stay in East Dundee and for them to expand their operations • the tentative creation of another TIF District and expansion of Dundee Crossings BDD • the creation of a Waste Transfer Station • the possible redevelopment of the Dairy Queen block • the proposed medical facility on Hwy. 72 • the continued development of Santa’s Village Expo and the policing thereof Please keep in mind that there are no “add on” costs to the Village in fringe benefits, withholding taxes or employer’s contribution for retirement funding, etc. I consider it a privilege and honor to work for the Village of East Dundee, and would like to continue to serve the Village as your Economic Development Consultant. Sincerely,

Doug Bergren

Main Street Development Consulting
202 N. Main Mt. Carroll, IL 61053 815.541.4379
Email: doug_bergren@yahoo.com

CONSULTING AGREEMENT THIS AGREEMENT entered into between the Village of East Dundee, Illinois, herein referred to as “Village.” and Doug Bergren of Main Street Development Consulting, herein referred to “MSDC.” RECITALS A. Village desires to engage MSDC to implement the Village’s economic development goals, including, but not limited to: o Job growth and retention o Expansion and diversification of tax base o Improvement of the quality of life B. MSDC shall provide oversight and supervision of the services to be provided under this Agreement. C. MSDC shall report to the Village Administrator of East Dundee and shall provide a monthly activity report to the Village. A representative from MSDC shall be present at all Village Council meetings as requested by the Village Administrator. D. MSDC shall provide, on average for any four week period, not less than twenty (20) hours of service per week to the Village of East Dundee. AGREEMENT NOW, THEREFORE, based upon the terms and conditions herein set forth, the parties agree as follows: 1. The Recitals as hereinabove set forth are a part of this Agreement and enforceable as such. 2. The scope of the work to be provided by MSDC shall be as follows: o In cooperation with the Village, develop a diversified approach to identifying, contacting and recruiting potential retailers and developers to East Dundee. This would include continuous creation and refinement of lists of potential/preferred users and developers,

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contacting same through telephone, on-site visits, mail, email, or other means; preparation of reports as to reasons potential retailers/developers may not want to locate to East Dundee; and preparation of recommendations as to initiatives that would address the reasons and concerns as indicated by said potential/preferred retailers/developers. o Work with other units of local government in pursuing regional economic development goals and objectives o Respond to business location and expansion inquiries and act as liaison between potential business developers and various public and private entities involved in the business development process. o Provide information on utilities, taxes, zoning, transportation, community services, financing tools, and any other information relevant to parties interested in economic development. o Provide updated information for the maintenance of an economic development website and data base. o Establish and maintain a collaborative working relationship with State, regional, and local economic development organizations. o Make representations to boards, committees and civic groups. o Ensure potential development activities are appropriately entered into and tracked within the Village’s internal systems and processes. Ensure development topics are placed on the appropriate agendas, that explanatory materials are developed and provided for meetings and an appropriate and effective presentation of such materials is made. o Submit monthly activity sheets and prepare annual reports regarding economic development activities and accomplishments. o Village shall provide: o All base data and graphics developed to date in electronic and “hard’ form. o Access to other professional staff and contractors working for the Village. o Letters/emails of introduction to all current businesses, property owners and potential developers of the Village.

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o Address and phone/email connection with the Village’s offices. o Listing of all past and current business leads and developers. o Weekly meetings with the Village Administrator and related Village staff/contractors. o Quarterly written correspondence to MSDC on evaluation of work product and changes/alterations of scope of services. 3. Village shall pay MSDC the sum of $4000 per month for work performed by MSDC during the term of this Agreement. The total fees charged to the Village during the term of this Agreement shall not exceed the sum of $48,000 in a twelve (12) month period unless agreed to in writing by both parties. Payments shall be made bimonthly upon receipt of activity sheets for the period being billed. 4. Village shall provide MSDC office space for meetings in the Village of East Dundee. Village shall also provide access to fax, copying services, and the internet at said office. 5. Village shall reimburse MSDC for extraordinary expenditures during the term of this Agreement including travel and lodging for work performed outside of the Village if these expenses have been pre-approved by the Village in writing. 6. This Agreement shall commence March 1st, 2011, and terminate Feb. 28, 2012. Village may terminate this Agreement upon giving MSDC ten days written notice by Certified Mail, Return Receipt Requested. In the event of such termination, Village shall pay MSDC for all services performed prior to date of termination, plus reasonable termination costs to organize MSDC’s files and any reasonable expenses incurred by MSDC to coordinate efforts with another party. 7. All services performed by MSDC under the terms of this Agreement shall be as an independent contractor, MSDC or any of its representatives are not to be considered employees of the Village for any purpose. 8. This Agreement shall constitute the entire agreement between the parties with respect to the subject matter hereof. No modification of this Agreement shall be binding except in writing and signed by a duly-authorized representative of both parties to this Agreement. 9. This Agreement shall not be assigned by either parties without the prior written consent of the other party, which consent may be withheld in the parties’ sole discretion.

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10. This Agreement shall be governed by the laws of the State of Illinois. IN WITNESS WHEREOF, the parties have executed this agreement.

Date:_________________

Village of East Dundee_____________________

Date:_________________

MSDC_________________________________

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