east dundee packet 021411

8/7/2019 East Dundee Packet 021411

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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

all to Order

oll Call

edge of Allegiance

onsent Agenda

inois Municipalities may adopt by a single roll call vote of the Village Board and Village Presiden

oup of assorted ordinances, resolutions, motions and orders by an Omnibus Vote. The Omnibus

ote shall be taken following the unanimous consent by the President and Board as to the items to b

cluded. Any Trustee or the President may request that any item not be included in that vote.

ublic Participation

eports: Village Administrator and Staff

eports: Village Attorney

eports: Village President

eports: Village Trustees

ld Business

ew Business

A. Ordinance Approving Redevelopment Agreement By and Between The Village of East Dund

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

ttp://www.eastdundee.net/edapps/vwide/edbdagens.n...Main/D84F1DD3E4644A908625783400786585?OpenDocument (1 of 2) [2/11/2011 3:55:52 PM]


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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 Marc

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

xecutive Session

ecess to Executive Session Executive Session, closed to the public and media under the provisions

e Illinois Open Meetings Act, 5ILCS, 120/2, (2) (21), Discussion of Minutes, (C) (6), Pending

tigation, 2 (C) (1), Personnel and 2 (C) (5) Acquisition of Property.

djournment

ttp://www.eastdundee.net/edapps/vwide/edbdagens.n...Main/D84F1DD3E4644A908625783400786585?OpenDocument (2 of 2) [2/11/2011 3:55:52 PM]


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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 andRoute 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,


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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 thePresident 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 onExhibit 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


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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 Cto 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 Developers 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. Developers 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 Cattached 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

Developers business operations.

Section 7. No Liability of Village to Others for Developers 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 attorneys

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 Professionals195 Perry StreetEast Dundee, Illinois 60118Attn: Jeff Tovar President

With a copy to:Holland & Knight LLP131 South Dearborn Street30th FloorChicago, Illinois 60603Attn: David B. Allswang

To the Village:Village of East DundeeVillage Administrator120 Barrington AvenueEast Dundee, Illinois 60118

With a copy to:Kathleen Field OrrKathleen Field Orr & Associates53 West Jackson Blvd., Suite 935Chicago, 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,


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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 Villages 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 Developers 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 Developers 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 Developers 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 Developers 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 Villages 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. Developers 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

partys part to be performed if such party fails to timely perform the same and such failure is due


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17

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 partys 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 municipalcorporation

By: ____________________________________President


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18

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


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Exhibit A

Depiction of the Route 25 Business District


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21

Exhibit C

Estimated Project Budget and Estimated Redevelopment Project Costs

Total Project Budget:

Land and current building: $650,000

Improvements to building and land: $350,000

TOTAL: $1,000,000

Redevelopment Project Costs (included in Total Project Budget):

Interior and exterior buildingimprovements and renovations $195,000


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22

Exhibit D

REQUEST FOR REIMBURSEMENT

[Date]

Village of East Dundee120 Barrington AvenueEast Dundee, Illinois 60118

Re: Redevelopment Agreement dated __________________, by and between the Village of EastDundee, Illinois, and Tovar Snow Professionals (the Developer)

Dear Sir:

You are requested to reimburse the Developer described above in the amount of $219,500.00 for thepurpose(s) set forth in this Request for Reimbursement.

1. 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 Costsdetailed in Schedule 1 attached to this Request for Reimbursement.

2. 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 notbeen included in any previous Request for Reimbursement;

(iv) the moneys requested will reimburse the Developer for its funds actually advanced forRedevelopment 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 Developerpursuant to the Agreement, is not in excess of $195,000;

(vi) the Developer is not in breach under the Redevelopment Agreement and nothing hasoccurred to the knowledge of the Developer that would prevent the performance of itsobligations under the Agreement.

3. Attached to this Request for Reimbursement is Schedule 1, together with copies of documents(which may include invoices or bills of sale and Mechanics Lien Waivers) covering all itemsfor which reimbursement is being requested, on which it has been noted all RedevelopmentProject Costs heretofore reimbursed to the Developer.

Date: By:

APPROVED:

Village of East Dundee, an Illinois municipal corporation

Date:


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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 ConnectCTY System and contract.

At the last board meeting the Board approved the Connect CTY Contract but reduced thecontract terms from three years to one. If the board would like a one year contract insteadof a three year contract there will be an additional charge of $1,250 to the $3,250 baseprice. Please note that if the Village enters into a 3 year contract the service fee in theamount 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 keepssystem for three years cost would be $13,500)

As part of the Villages Connect CTY Service. The CTY Service provides the followingfeatures:

a) Unlimited Messaging. Unlimited any-time messages throughout the Term, enabling theClient to communicate with residents and businesses within its jurisdiction.

b) Database. NTI will provide the Client with one (1) phone number per physical address tothe extent that such numbers are available (NTI Data). The Client may provide up totwo (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 upmore than one phone line of a multi-line business. The Client Data, the NTI Data, and thedata input by individuals via the CTY Web Portal, may hereinafter be collectivelyreferred to as the Recipient Data. NTI may add new features and functionality fromtime-to-time and the Client agrees to comply with all relevant rules and instructionpertaining 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


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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 isdesigned 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 youhave any additional questions about the program.

Message Summary: Dial-in Outreach Communication - 1 Feb 2011 1:32 P M (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 = 1,589Total Unique Deliveries = 1,524*

* What are Unique Deliveries?Unique deliveries are the actual number ofcalls that are placed. This number will be loweredby multiple contacts that share the same phone number.

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

Successful Deliveries 1,195

Answering Machine 518

Live Delivery 677

Unsuccessful Deliveries 329

Bad Phone Number 10

Busy 10

Fax/Modem 17

Hangup 2

No Answer 111

Opted-Out 1

Phone Network Busy 21

Undeliverable 157

Tota l Un ique Phone Del iver ies 1,524

*


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Tota l E-mai ls Selec ted 182


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CONSULTING SERVICES AGREEMENT

This Consulting Services Agreement (the Agreement) is entered into by and betweenVillage of East Dundee (hereinafter the Village) and Mitchell, Vaught & Taylor, Ltd.forservices 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 FinanceDirector & Treasurer, Project Manger and/or Staff Consultant maintaining efficient and effectivefinancial systems and procedures, organizing and maintaining a records management system forthe entire Village, and preparing a variety of complex reports for decision-making purposesunder 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 forthis Agreement.

NOW, THEREFORE, Village and Mitchell, Vaught & Taylor, Inc. agree as follows:

SECTION 1. SCOPE OF WORK


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SECTION 2. DURATIONThis Agreement shall commence on execution and remain in effect through completion. Projectis estimated to be completed in four to five months.

SECTION 3. PRICINGVillage will pay Consultant for consulting services summarized in Section 1 at a rate of $60.00per 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. PAYMENTPayment shall be made in accordance with the Local Government Prompt Payment Act. Apurchase order will be issued for payment purposes. Reference the purchase order number on allinvoices.

SECTION 5. HOLD HARMLESS CLAUSEThe Consultant agrees to indemnify, save harmless and defend Village of East Dundee, itsagents, servants, and employees, and each of them against and hold it and them harmless fromany and all lawsuits, claims, demands, liabilities, losses and expenses, including court costs andattorneys fees, for or on account of any injury to any person, or any death at any time resultingfrom such injury, or any damage to property, which may arise or which may be alleged to havearisen out of or in connection with the work covered by this Agreement caused directly by thenegligence or willful or wanton conduct of the Consultant. The foregoing indemnity shall applyexcept if such injury, death or damage is caused directly by the gross negligence or willful orwanton conduct of Village of East Dundee, its agents, servants, or employees or any other personindemnified hereunder.

SECTION 6. INSURANCEThe Consultant must obtain, for the term and any extension of it, insurance issued by a companyor companies qualified to do business in the State of Illinois and provide the Village withevidence of insurance. Insurance in the following types and amounts is necessary:

Comprehensive General (Public) Liability in a broad form, to include coverage for thefollowing where exposure exists: Premises/Operations, Independent Contractors,Products/Completed Operations, Personal Injury and Contractual Liability, limits of liabilitynot less than:

General Aggregate Limit $ 1,000,000

Each Occurrence Limit $ 1,000,000

Consultant agrees that with respect to the above required insurance, Village of East Dundeeshall:

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 orreplacements of said policies of insurance at least fifteen (15) days prior to the expiration ofcancellation of any such policies. Forward Notices and Certificates of Insurance to theVillage Administrator.


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SECTION 7. CONSULTANTThe Consultant is not an employee or agent of Village of East Dundee and the Village has noright to control or direct Consultants manner, detail, or means by which Consultantaccomplishes tasks under this Agreement.

SECTION 8. NO IMPLIED WAIVERSThe 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 anytime thereafter. Nor shall the waiver by either party of a breach of any provision of thisAgreement be taken or held to be a waiver of the provision itself.

SECTION 9. SEVERABILITYIf any part of this Agreement shall be held to be invalid for any reason, the remainder of thisAgreement shall be valid to the fullest extent permitted by law.

SECTION 10. JURISDICTION, VENUE, CHOICE OF LAWThis 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 ofIllinois.

SECTION 11. NOTICES AND COMMUNICATIONSAll notices and communications which may be given by the Consultant to East Dundee relativeto this Agreement shall be addressed to the Village Administrator.

SECTION 12. ASSIGNMENT, ALTERATIONS AND MODIFICATIONSExcept as otherwise provided herein, this Agreement shall not be assigned, altered or modifiedwithout the express written consent of both parties. This Agreement supersedes any and all otheragreements, oral or written, between the parties hereto with respect to the subject matter hereof.

SECTION 13. TERMINATIONThis Agreement may be terminated, at will, by either party effective upon thirty (30) dayswritten notice to the other party. In this event, the Consultant shall be compensated only forservices that have been satisfactorily provided and approved.

SECTION14.NON-DISCLOSURE PROVISIONConsultant hereby agrees to abide by the following terms and conditions with regard to anyinformation or records, including electronically stored data or media that the Consultant receivesfrom Village of East Dundee, the employees or agents of Village of East Dundee or Village ofEast 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 actuallyperformed. The Village of East Dundee and Consultant agree and understand that the renderingof services by Consultant pursuant to this Agreement shall in no way alter the Village of EastDundees, or its elected officials, exclusive supervision, management, and control of theirproperty and records.

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


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unauthorized use of the information or records received from the Village, the employees oragents of Village of East Dundee or East Dundees elected officials. Consultant further agreesnot to copy such records or otherwise disclose such records or information to a third party orentity without the express written consent of the Village Administrator for East Dundee or theapplicable elected official

Consultant will instruct its personnel to keep all such records and information confidential and touse the same care and discretion with regards to those records and information as they would usewith data belonging to Consultant that Consultant has designated as confidential. Consultantagrees to continue to use safeguards to prevent the unauthorized use or disclosure of theserecords or information until the Consultant either destroys such records or returns those recordsto the Village or elected official.

If the Consultant receives a third party request for the records of Village of East Dundee orelected 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 respondto 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 theConsultant notifies the Village Administrator upon receipt of such request and cooperates withefforts by the Village or applicable elected official should they attempt, at their own expense, tochallenge such a request.

Consultant agrees to immediately notify the Village Administrator or the applicable electedofficial if it becomes aware of any unauthorized use or disclosure of records or informationbelonging to the Village or its elected officials. Consultant further agrees that it will destroy orreturn any records or copies of records, including electronically stored data or media, receivedfrom the Village, the employees or agents of East Dundee or East Dundees elected officialswithin eight years from the termination of this Agreement. If said destruction is not witnessedby an agent, employee or officer of the Village, Consultant will send the Village Administratorwritten notification confirming the destruction of said records within five days from the date ofdestruction.

In the event that Consultant commits a breach of this agreement, the Village and its electedofficials shall retain the right to pursue all legal remedies at law or equity, including monetarydamages and/or injunctive relief for that breach. Consultant shall further be obligated toindemnify, save harmless and defend East Dundee, its agents, servants, employees as providedherein.

SECTION 15. INFORMATION SECURITYIn the process of performing services to Village of East Dundee the Consultant may come incontact with information deemed important and proprietary to East Dundee. The Consultantagrees that any services performed for East Dundee, whether on East Dundee premises or

not, will meet or exceed East Dundees information security policy and privacy standards.East Dundee reserves the right to audit Consultants performance in meeting these standards.


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SECTION 16. THIRD PARTY NETWORK ACCESSConsultants who require access to East Dundees network will be required to sign an EastDundee Third Party Network Access Request form before a logon to East Dundee's enterprisenetwork is provided, and will be required to comply with the policy statements contained thereinfor the duration the access is granted.

IN WITNESS HEREOF, the undersigned have caused this Agreement to be executed in theirrespective names on the dates hereinafter enumerated.

Village of East Dundee: Mitchell, Vaught & Taylor, Inc.:

Date _____________ Date ______________


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Village Board Members and Staff,

After you have had a chance to review the attached memo, I want to have the Village Boardconsider this issue in context of the support infrastructure for our new water treatment plant thatwill begin construction in about 45 days. Specifically, I have on the COTW Agenda discussionabout extension of the water line loop along Christina Drive to coincide with the new water plantcoming 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 willbenefit 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 PALDevelopment, that water line was intended to only serve the Terra Business Park. However, ifwe move forward with the Christina Drive water line loop, this $251,000 investment alreadyspent by PAL Development would have had to come from a Village-wide source of revenue toserve 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 PALDevelopment above those provisions of the current agreement, I believe this item is one area thattruly would have been bourne by the Village as a whole. As a gesture of cooperation withdevelopers 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 ParkTIF. After this year, it looks like we can expect about $400,000+ annually in currentlyunencumbered TIF increment. This would run through 2023, the last year of the Prairie LakesTIF if allowed to run through full term.

Robert J. SkurlaVillage AdministratorVillage of East Dundee, IL847-426-2822 Ext 228 Office847-815-0472 Cell


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VILLAGEFEASTDUNDEE

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

February 7,201 1To: Village BoardFrom: Robert J. Skurla

Village Adm inistratorRef: Response t o correspondence dated January 12 ,201 1 fro m Peter Bazos ref: Terra Business ParkSubdivision.Board Members,I, along wi th th e Village Engineer, Joe Heinz, and th e Econom ic Dev elopm ent Consultant, Doug Bergren,me t with Joe Palumbo and Peter Bazos to discuss amendm ents they w ould l ike to see introduced t o th ecurrent TIF Redevelopment Agreem ent wit h the Village. See the ir attached letter. The prima ry reasonsfor these requested changes are:

1 W it h th e change in th e current economy since 2008, the industrial market has all bu t "driedup" leaving litt le if any new or expanded users to either lease ou t his cu rren t spec build ing (which sitswi th an 80% vacancy) or seek new "build t o suit" bu ildings elsewhere in th e cu rrent park.

2 - New parcels have been added t o Terra Business Park proper (Parcels C and D on th eattached map) th at have been includ ed in the Village's Comprehensive Plan am endm ent fr om lastsummer. See th e attached map.

3 - A new Fourth TIF D istrict, the Christina Drive TIF District, was create d last summ er whichincluded Parcels B, C and D. Bu t th e cu rrent zoning fo r lots C and D remain R-1-Single Family rath erthan M -1 - Limited Manufacturing as consistent with the recent Comp Plan Ame ndme nt. Also, a thir dBusiness Development District - Christina Drive BDD was created simultane ously t o th e C hristina D riveTIF th at covers Parcels B,C and D.. Revenues fr om this BDD may be used in sim ilar ways as TIF revenueproceeds.

4 -Con tiguity of TIF #3 -Route 25 TIF Dis tric t (aka "Dundee Crossings TIF") and TIF #4-C hristinaDrive TIF und er state TIF law allows in crem ent from one t o be shared in th e o the r fo r TIF eligibleexpenses. This is not the case, how ever, b etween BDD Districts.

Consequently, th e developer, PAL Developm ent wo uld like the Village to re-op en negotiationson the terms of th e TIF Redevelopment Agreement entered into between t he Village and PAL in April,2008. While the re are several issues that the Developer wishes to am end, I believe th e follo win g list is asynopsis o f changes:


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1 Change zoning of Parcels C an D t o M -1 consistent w ith the recently amended C omp Plan.2 -Am end the current subdivision plat t o reflect the n ew roadway location and elevations, and

add Parcel C and D to the Subdivision.3 -Am end the identified "Phases" of the current Redevelopment Agreement to shorter,

incremental segments that can be developed in smaller segments yet able to sit on th eir ow n for Villageacceptance. Current agreem ent calls fo r all of an entire larger "Phase" be comp leted before Villagewou ld allow re capture of any TIF Revenues.

4 - Allow all o f Parcels A, B, C and D t o be considered eligible "Project Area" fo r TIF genera tionand recapture by the ~ d v e l o ~ e r .

5 -Guarantee, to the best of the Village's abil ity the rete ntion of the "grandfathering" tha t thecurre nt lots in Terra Business Park enjoy relative to Kane Coun ty Im pac t Fees.

6 -A llo w th e Developer to access excess TIF Revenues th at mig ht be available from adjacent TIFDistricts to accelerate TIF Recapture for th e e stimated $3 mill ion of infrastructure improvem ents alreadyexpended by him under the current agreement.

7 - Finally, the Developer i s seeking to have his portion of TIF increm ent generated by hisproject to be increased from the current 50% up t o 90%.

While the tota l l i s t o f reques ted changes might be longer than thos e listed above, I believe thesetake in the heart of his requests. M y initial inclination i s to consider the first five item s listed above andbring a group of recom mendations back t o the Vil lage Board surrounding their consideration. I am no tinclined t o seriously consider or recommend the requests in item s 6 an d 7 witho ut more extensivediscussion wi th the Village B oard.

I will w ant t o have m ore feedback fro m our Village Engineer and Village Planning Consu ltant onall these issues befo re making thos e specific recomm endations for you r collective consideration. Wewill be meeting tom orr ow o n these items.

(See attached correspondence fr om Peter Bazos and m ap)


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1250 Larkin AvenueSte. 100Elgin, IL 60123Phone: 847-742-8800Fax: 847-742-9777E-mail: [email protected]

To: Mr. Robert Skurla, Village AdministratorVillage of East DundeeEmail: [email protected]: Peter C. Bazos, Esq.Date: January 12 ,2011Re: Terra Business Park Subdivision (Palumbo)-- -ear Bob:

First, I want to thank you for arranging a meeting in your office on January 5,201 1 atwhich you, Joe Hines and Heather Maieritsch met with Joe Palumbo and I to discuss the TerraBusiness Park Subdivision. More specifically, at that meeting we discussed certain changesand amendments that were needed or otherwise, in our opinion, advisable in order to assurethe 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 BusinessPark would benefit both parties.)

As you requested, following is a bullet-point summary of the ac tions and amendmentswhich 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) A drawing entitled "Terra Business Park" on which I have labeled Parcels A,By and D; and(b) 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 tobe corrected due to mutually agreed upon changes in phasing and roadlocation).

I. ZONING


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January 17,2011

1.1 By way of background, Parcels A and B are already zoned under the Village'splanned development ordinance created with respect to Terra Business Park (the"Terra Business Park Planned Development Ordinance").1.2 The Terra Business Park Planned Development Ordinance should be amended so as toinclude Parcels C and D on the attached map. (Note that the Village did, in thesummer of 201 0, already amend i ts comprehensive plan so as to include Parcels C andD as proposed industrial zoning, so there should be no need to amend thecomprehensive plan any further.)

11. AMENDED PLAT O F SUBDIVISION FOR TERRA BU SINESS PARK2.1 By way of background, the current plat of subdivision for Terra Business ParkSubdivision only includes Parcels A and B. Parcel C needs to be added.2.2 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 wereade with the approval of the Village. However, as part of the subdivision platamendment, or as part of a vacation / re-dedication of right-of-way (which, Iunderstand, has been discussed by Mr. Palumbo's engineer and Village Engineer JoeHeinz) the location of the roads should be corrected.2.3 Care needs to be taken so as to not lose the "grandfathering" that the existing lots inthe Terra Business Park currently enjoy with respect to the KDOT TransportationImpact ~e e s .

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

The Terra Business Park Subdivision was platted in December of 2007, thus avoiding theapplication of the new KDOT increased impact fees that was put into effect as of 1/1/2008.KD OT Ys rdinance applies the lower, pre-2008 fee schedule to any lots created prior to1/1/2008. But if a lot is subsequently changed and a new PIN I assigned in 201 1 or 2012 dueto re-platting, the administrator at KDOT indicates that the "grandfathering" wil l be lost as tothe re-platted lot. This needs to be further investigated / negotiated with ISDOT. I believe itwill be necessary for the Developer and its engineer, accompanied by the V illage and VillageEngineer, to meet with KDOT on this important issue.

a Page 2


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January 17,2011

3.2 In the summer of 2010 the Village created another district known as the "ChristinaDrive TIF District". The budget for this Christina Drive TIF District is attachedhereto as Exhibit 2.3.3 This new Christina Drive TIF District encompasses Parcels B, C and D.3.4 The Developer requests that a Redevelopment Agreement be entered into between theDeveloper and the Village(siini1ar to the original Redevelopment Agreement in p lacebetween the parties with respect to the Dundee Crossings TIF, but as amended asrequested in SectionIV below) covering the Developer's Parcels B and C that are partof the Christina Drive TIF. Provide for total combined Base TIF Assistance(combined with the Base TIF Assistance in the original RDA) that totals $9,000,000.3.5 The new Christina Drive TIF D istrict is contiguous to the Prairie Lakes TIF District(North of Route 68). If (i) there is note indeb tedness due to the Developer as to the

Christina Drive TIF D istrict and (ii) there is insufficient TIF increment as yetgenerated fiom the Christina Drive TIF District to pay such indebtedness and (iii) theVillage agrees to pay any portion of such Christina Drive TIF District using PrairieLakes T IF District increment, then each dollar of Prairie Lakes TIF District incrementso applied by the Village will expedite the retirement of note indebtedness owed bythe Village to the Developer with respect to the Christina Drive TIF District.3.6 Similarly, the new Christina Drive TIF District is contiguous to o r otherw iseconnected with (i) the Dundee Crossings TIF District (to the South and (ii) theDowntown TIF (to the West). If (i) there is Village Note indebtedness due to theDeveloper as to Parcels B or C in the Christina Drive TIF District and (ii) there isinsufficient TIF increment as yet generated fiom the Christina Drive TIF District topay such indebtedness and (iii) the Village agrees to pay any portion of such ChristinaDrive TIF District Note Indebtedness to the Developer using either (A) DundeeCrossing excess TIF Increment (other than increment arising fiom the development ofTerra Business Park) or (B)Downtown TIF District excess TIF Increment, then eachdollar so applied by the Village will expedite the retirement of Note indebtednessowed by the V illage to the Developer with respect to the Christina Drive TIF D istrict.

IV.AMENDMENT TO ORIGINAL DEVELOPMENT AGREEMEN TBETWEEN VILLAGE AM) EVELOPER @ W E E CROSSINGS TIF)4.1 By way of background, there exists between the Village and the Developer a certainDevelopment Agreement dated the- ay of April, 2008 concerning Parcel A onlywithin the Terra Business Park Subdivision (the "OriginalRDA"). This RDA wascreated with respect to the Dundee Crossings TIF.4.2 Shortly after the execution of the Original RDA, the US economy in general, and thecornmerciaVindustrial market in particular, went into a historic decline, and remains in

a Page 3


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January 17,2011

this troubled condition. These market conditions have seriously adversely impactedthe 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 subdivisionh&astructurehas yet been installed. Furthermore, a future traffic signal at theintersection of Christina Drive and Route 25 (which will be beneficial to the TerraBusiness Park, to other properties to the north, and to the V illage in general) may haveto be installed in the future. The Original RDA only allows the Developer amaximum of $4,200,000.00 of assistance ("'Base TIF Assistance") allocated amongthe "phases" of the project as specified in Section 6(b) of the Original RDA. TheRemaining funds are not adequate to fairly reimburse the Developer for the workremaining to be done.4.4 The Developer requests that the Original RDA be amended in the following sectionsin the follow respects:

a Page 4

SECTION2

3 (a)

6(b)-(b)

6(d)(i) and(ii)

New

REQUESTED AMENDMENTHere and elsewhere, the concept of "phasing" should be eliminated. Onthree prior occasions, the Village Staff and the Developer have agreed onmutually agreed upon changes to the original phasing plan. TheDeveloper has already installed certain roads and i&astructure and hasalready erected a building. The balance of the subdivision will beimproved as demand dictates.Here and elsewhere, the deadline of December 3 l , 2 0 12 for theresubdivision of large Lot 5 should be eliminated (consistent with theconcept of eliminating phasing). In this market, the Developer cannotproperly project the dem and for this large Lot 5, and it would be a mistaketo insist that it be M e r ubdivided in a purely speculative manner, notknowing what type of use might seek to be located there.Increase the Base TIF Assistance fiom $4.2 million to a com bined BaseTIF Assistance (combined with the Base TIF Assistance under the newRDA discussed in Article I11 above) of $9,000,000. Since the executionof the Original RDA, the "assistance gap" has grown, given the plunge inreal estate prices. Without additional assistance, the Developer will nothave funds adequate to complete the subdivision improvements.Eliminate the allocation of the Base TIF Assistance among "phases"(consistent with the above request for eliminating the concept of"phasing").Pay to the Developer 90% of available TIF increm ent, for all eligible TIFcosts incurred by the D eveloper up to the revised (increased) Base TIFAssistance level. The remaining 10% of the TIF increment would beretained by the Village in the for other purposes allowed by the TIF Act.The Dundee Crossings TIF D istrict is contiguous to or otherwise


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January 17,2011

Bob, I would like to observe fio m my perspective (as an attorney who specializes inrepresenting developers) that, inundertaking to develop the Terra Business Park Subdivision,Mr. Palurnbo has taken on a great amount of financial risk. Nevertheless, he has performedhis obligations to date, having installed Christina Drive and erected a 50,000 square footbuilding (building cost exceeded $3,000,000) and otherwise installed infl-astructurealong theeasterly 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 Subdivisionand see vertical development take place since, under the "pay as you go" reimbursementprovisions of the Original RDA, he w ill not receive any increment unless the Village receivesincrement itself. We all know that TIF increment derives, for the most part, fiom theconstruction of new structures on the property.

New

We hope the Village will accept the above requests in the spirit for which they areintended-an effort to re-energize and facilitate the successful completion of this project. Tothat end I will wait to hear fiom you. Joe Palumbo and I would be happy to m eet with youagain andfor to appear before the Village Board for discussion if you feel that is appropriate.Thank you and best regards.

connected with (A) the Christina Drive TIF District and (B) the PrairieLakes TIF District, each to the North.. If (i) there is note indebtednessdue by the Village to the Developer as to the Dundee Crossings TIFDistrict and (ii) there is insufficient TIF increment as yet generated fiomthe Dundee Crossings TIF District to pay such indebtedness and (iii) theVillage agrees to pay any portion of such Dundee Crossings TIF DistrictNote Indebtedness using (1) Christina Drive excess TIF increment (othersuch increment generated fiom any portion of the Terra Business Park,Parcels B or C)) or (2) fiom the Prairie Lakes TIF District, then eachdollar of such increment so applied by the Village will expedite theretirement of note indebtedness owed by the Village to the Developerwith respect to the Dundee Crossings TIF District.Similarly, the Dundee Crossings TIF District is contiguous to theDowntown TIF (to the West). If (i) there is Village Note indebtednessdue to the Developer as to Dundee Crossings TIF District and (ii) there isinsufficient TIF increment as yet generated from the Dundee CrossingsTIFDistrict to pay such indebtedness and (iii) the Village agrees to payany portion of such Dundee Crossings TIF District Note Indebtedness tothe Developer using Downtown TIF District excess TIF Increment, theneach dollar so applied by the Village will expedite the retirement of Noteindebtedness owed by the Village to the Developer with respect to th eDundee Crossings TIF District.

Peter C. Bazos

a Page5


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January 17,2011

Cc: Joe Palurnbo

Page 6


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February11,

2011

To: VillageBoard

From: RobertJ.Skurla

Ref: ChristinaDrivewaterlineloop

TheconstructionoftheVillagesnewwatertreatmentplantinthePrairieLakesBusinessParkwill

commenceattheendofMarch.Itisexpectedtotakeoneentireyeartocompleteandwillbereadyto

testtogoonlineinAprilof2012. Oncetheplantgoesonline,theoldwaterplantandourtwocurrent

operatingwellswillgoinactiveandtheentireVillagewillbeservedbyournewwaterplantandthetwo

newwells

that

were

drilled

on

the

same

site.

Unfortunately,

all

of

the

newly

treated

water

will

travel

to

therestoftheVillagefromonepiperunningfromPrairieLakesalongRoute68allthewaytoRoute25

beforeitstartstobranchoff. Iflefttooperateunderthatscenario,theVillagerunstheriskofhavinga

watermainbreakalongRoute68thatwouldshutdownwaterservicetotheentireVillage. Thelogical

solutionisconstructionofawatermainloopfromtheproposedplantsouthalongChristinaDrive,as

extended,tomeetthewaterlinealongRoute72servingtheRockRoadBusinessParkarea.

Theengineerscostestimatestoextendthislineare$550,000whichincludesdesignengineering. PAL

Developmenthasalreadyinstalledabout2600feetoftwelveinchwaterlineatacostofabout

$251,300,thatwouldmeetourproposedloopline. IamrecommendingthattheVillageBoardmakethe

designandconstructionofthislineapriorityintheupcomingbudget.


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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


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Main Street Development Consulting202 N. Main

Mt. Carroll, IL 61053

815.541.4379Email: [email protected]

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 Villages 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 Santas 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

employers contribution for retirement funding, etc. I consider it a privilege and honor to work for the Villageof East Dundee, and would like to continue to serve the Village as your Economic Development Consultant.

Sincerely,

Doug Bergren


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1

Main Street Development Consulting202 N. Main

Mt. Carroll, IL 61053

815.541.4379Email: [email protected]

CONSULTING AGREEMENT

THIS AGREEMENT entered into between the Village of East Dundee, Illinois, hereinreferred 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 Villages economic developmentgoals, including, but not limited to:

o Job growth and retentiono Expansion and diversification of tax baseo Improvement of the quality of life

B. MSDC shall provide oversight and supervision of the services to be provided underthis 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 atall 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 partiesagree as follows:

1. The Recitals as hereinabove set forth are a part of this Agreement andenforceable 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 anddevelopers to East Dundee. This would include continuous creationand refinement of lists of potential/preferred users and developers,


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2

contacting same through telephone, on-site visits, mail, email, orother means; preparation of reports as to reasons potentialretailers/developers may not want to locate to East Dundee; andpreparation of recommendations as to initiatives that would addressthe reasons and concerns as indicated by said potential/preferred

retailers/developers.

o Work with other units of local government in pursuing regionaleconomic development goals and objectives

o Respond to business location and expansion inquiries and act asliaison between potential business developers and various public andprivate 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 economicdevelopment website and data base.

o Establish and maintain a collaborative working relationship withState, 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 Villages internal systems and processes.Ensure development topics are placed on the appropriate agendas,that explanatory materials are developed and provided for meetingsand an appropriate and effective presentation of such materials ismade.

o Submit monthly activity sheets and prepare annual reports regardingeconomic 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 theVillage.

o Letters/emails of introduction to all current businesses, propertyowners and potential developers of the Village.


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3

o Address and phone/email connection with the Villages offices.o Listing of all past and current business leads and developers.o

Weekly meetings with the Village Administrator and related Villagestaff/contractors.

o Quarterly written correspondence to MSDC on evaluation of workproduct and changes/alterations of scope of services.

3. Village shall pay MSDC the sum of $4000 per month for work performed byMSDC during the term of this Agreement. The total fees charged to theVillage during the term of this Agreement shall not exceed the sum of $48,000in 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 EastDundee. Village shall also provide access to fax, copying services, and theinternet at said office.

5. Village shall reimburse MSDC for extraordinary expenditures during theterm of this Agreement including travel and lodging for work performed outsideof the Village if these expenses have been pre-approved by the Village inwriting.

6. This Agreement shall commence March 1st, 2011, and terminate Feb. 28,

east dundee packet 021411

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