HomeMy WebLinkAboutOrdinances - ORD-19-1935 - 03/18/2019 - Property Tax Abatement - BPICITY OF MCHENRY
MCHENRY COUNTY
STATE OF ILLINOIS
ORDINANCE NUMBER ORD-19-1935
An Ordinance Authorizing the Mayor's Execution of a
Property Tax Abatement Agreement Between
the City of McHenry and BPI
Adopted by the
Mayor and City Council
Of the
City of McHenry
McHenry County
State of Illinois
March 18, 2019
Published in pamphlet form by authority of the Mayor and City Council of the City
of McHenry, McHenry County, Illinois this 18th day of March 2019.
Department of
Economic Development
Douglas Martin, Director of Economic Development
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2170
Fax: (815) 363-2173
dmartin@ci.mchenry.il.us
www.ci.mchenry.il.us
ORDINANCE NO. 19-'/ I
AN ORDINANCE AUTHORIZING THE MAYOR'S EXECUTION OF A PROPERTY TAX ABATEMENT
AGREEMENT BETWEEN THE CITY OF MCHENRY AND BPI
WHEREAS, the City of McHenry, McHenry County, Illinois, is a home rule municipality as
contemplated under Article VII, Section 6, of the Constitution of the State of Illinois, and the
passage of this Ordinance constitutes an exercise of the City's home rule powers and functions
as granted in the Constitution of the State of Illinois.
NOW, THEREFORE, BE IT ORDAINED by the CITY COUNCIL of the CITY OF MCHENRY,
McHenry County, Illinois, as follows:
SECTION 1: The Property Tax Abatement Agreement, bearing the date of March 4,
2019 between the City of McHenry and BPI is attached to this ordinance and incorporated
herein by reference as Exhibit "A".
SECTION 2: The Mayor and City Clerk are hereby authorized to affix their signatures
as Mayor and City Clerk to said Agreement for the uses and purposes therein set forth.
SECTION 3: All Ordinance or parts thereof in conflict with the terms and provisions
hereof are hereby repealed to the extent of such conflict.
SECTION 4: This Ordinance shall be published in pamphlet form by and under the
authority of the corporate authorities of the City of McHenry, McHenry County, Illinois.
SECTION 5: This Ordinance shall be in full force and effect from and after its passage,
approval, and publication in pamphlet form as provided by law.
11-
PASSED THIS, DAY OF , [ , 2019
AYES:
NAYS:
ABSTAINED
ABSENT:
S�kg4i eoI 61u h Sa�f-1,
Department of
Economic Development
Douglas Martin, Director of Economic Development
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2170
Fax: (815) 363-2173
chnartin@ci.mchenry.il.us
www.ci.mchenry.il.us
NOT VOTING:
APPROVED THIS DAY OF , 2019
MAYO
A ST:
CITY CLERK
Department of
Economic Development
Douglas Martin, Director of Economic Development
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2170
Fax: (815) 363-2173
dmartin@ci.mchenry.il.us
www.ci.mchenry.il.us
Exhibit A
Property Tax Abatement Agreement between the City of McHenry and BPI
Department of
Economic Development
Douglas Martin, Director of Economic Development
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2170
Fax: (815) 363-2173
dmartin@ci.mchenry.il.us
www.ci.mchenry.il.us
PROPERTY TAX ABATEMENT AGREEMENT
BETWEEN THE CITY OF MCHENRY AND BPI, BRAKE PARTS INC LLC
This Property Tax Abatement Agreement ("Agreement") is made and entered into this
18th day of March, 2019 ("Effective Date"), by and between the City of McHenry, ("City"), an
Illinois Municipal Corporation and Brake Parks INC LLC ("BPI"), an Illinois corporation.
WHEREAS, the City of McHenry, McHenry County, Illinois, is a home rule municipality as
contemplated under Article VII, Section 6, of the Constitution of the State of Illinois, and the
passage of this Ordinance constitutes an exercise of the City's home rule powers and functions
as granted in the Constitution of the State of Illinois;
WHEREAS, the City has the power to abate property taxes pursuant to its home rule
powers and 35 ILCS 200/18-165;
WHEREAS, the City desires to attract and retain new and diverse business and industrial
enterprises within its boundaries in order to increase the equalized assessed valuation by
encouraging private sector investment;
WHEREAS, the creation of jobs is essential to the economic and social well-being of the
people of McHenry County and the surrounding region;
WHEREAS, the Subject Property, 1600 Industrial Drive, legally described on Exhibit A
attached hereto and incorporated herein, is identified as tax parcels 09-27-428-016, 09-27-406-
001 and 09-27-406-002 consists of 16 acres more or less and contains an approximately
267,000 square foot one -store building constructed in 1975;
WHEREAS, the total 2018 Equalized Assessed Evaluation of the Subject Property is
$1,904,792; and
WHEREAS, BPI has estimated the costs associated with relocating its Research and
Development Facility from Kentucky and improving the Subject Property, including the buildout
of the facility and the purchase of equipment to be approximately Four Million Dollars.
NOW, THEREFORE IT IS AGREED, BY AND BETWEEN THE CITY AND BPI AS FOLLOWS:
1. Incorporation of Recitals. The Parties incorporate each of the above recitals into
this Agreement as if set forth in their entirety.
Department of
Economic Development
Douglas Martin, Director of Economic Development
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2170
Fax: (815) 363-2173
dmartin@ci.mchenry.il.us
www.ci.mchenry.il.us
2. Authority. This Agreement is made and entered into pursuant to the City's home
rule powers and functions as granted in the Constitution if the State of Illinois.
3. Propertv Tax Abatement. The City hereby agrees to abate the real estate taxes
levied against the Subject property each year the City's property taxes exceeding the 2018
amount ("Base Property Tax Amount"), attached hereto and incorporated herein as Exhibit B.
The 2018 Base Property Tax amount refers to the existing property tax bills prior to new capital
investment and reoccupation of a primarily vacant building on the Subject Property.
The City agrees to abate their portion of the real estate taxes levied against the Subject
Property for a ten (10) year term commencing with the 2019 tax bill payable in 2020 through
the 2028 tax bill payable in 2029 ("Property Tax Abatement Term").
4. Clawback Provision. BPI agrees to repay all Property Tax Abatements
referenced in Section 3 of this Agreement to the City if BPI ceases its business operation in the
City, at the Subject Property, during any time during this Agreement. Ceasing business
operation shall be defined as the permanent closure of the building on the Subject Property for
a period of six (6) or more consecutive months prior to the end of the Property Tax Abatement
Term.
However, the Property Tax Abatement shall not be required to be repaid if BPI expands their
business operation at a location other than the Subject Property but within the City. If BPI
ceases its business operation in accordance with the aforementioned provisions in this Section
BPI agrees to repay all property taxes which have been previously abated by Ordinance by the
City. The repayment shall be cumulative an inclusive of all Abatement Ordinances during the
Property Tax Abatement Term. Other than property taxes pursuant to this Agreement, the City
shall have no obligation to incur any expense, share any revenue or abate any property tax
associated with BPI, their business or the Subject Property.
5. Mutual Assistance. The City and BPI agree to do all things necessary or
appropriate to carry out the terms and provisions of this Agreement and to aid and assist each
other in carrying out the terms hereof.
6. Term. This Agreement shall be in full force and effect for a Term commencing on
the Effective Date of this Agreement and ending on the earlier to occur of: (a) the Permanent
Closure of BPI except that, in that event, BPI must still repay the City pursuant to Section 4; (b)
the end of the Property Tax Abatement Term; (c) BPI has not obtained a Certificate of
Occupancy to conduct its business operations at the Subject Property by December 31, 2019;
(d) BPI relocates its business outside of the City except that, in that event, BPI must still repay
Department of
Economic Development
Douglas Martin, Director of Economic Development
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2170
Fax: (815) 363-2173
dmartin@ci.mchenry.il.us
www.ci.mchenry.il.us
the City pursuant to Section 4. This Agreement shall remain in full force and effect for
enforcement, indemnity and accounting purposes following the expiration of the Term.
7. Assignment. BPI may assign this Agreement and its right to receive the Property
Tax Abatement to a third party upon notice to the City.
8. Miscellaneous. This Agreement shall be binding upon and inure to the benefit of
the Parties, on BPI's successors and assigns (unless BPI and such successors and assigns agree
otherwise in writing), and on successor corporate authorities of the City. Any notices required
or contemplated by this Agreement shall be sent by certified mail or via a nationally -recognized
private carrier (such as Fed Ex or UPS), as follows:
If to BPI: H. David Overbeeke
President and CEO
4400 Prime Parkway
McHenry, IL 60050
If to the City: City of McHenry
333 S. Green Street
McHenry, IL 60050
Attention: City Administrator
With a copy to: David W. McArdle
Zukowski, Rogers, Flood & McArdle
50 Virginia Street
Crystal Lake, Illinois 60014
9. Default. In the event of a claimed default under this Agreement, the non -
defaulting party shall provide notice of default to the defaulting party. No legal action may be
commenced with respect to a claimed default until thirty (30) days after said notice has passed,
during which time the claimed defaulting party may cure the claimed default. This Agreement
shall be governed by Illinois law without regard to its rules regarding conflicts of law.
10. Enforcement. Any action to enforce this Agreement shall only be filed in the
Twenty -Second Judicial Circuit, McHenry County, Illinois. The party who prevails in any such
action shall be entitled to recover its reasonable attorney's fees from the other party.
Department of
Economic Development
Douglas Martin, Director of Economic Development
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2170
Fax: (815) 363-2173
dmartin@ci.mchenry.il.us
www.ci.mchenry.il.us
11. Only Agreement. This Agreement sets forth all the promises, inducements,
agreements, conditions and understandings between BPI and the City relative to the Property
Tax Abatement and there are no other promises, agreements, conditions or understandings,
oral or written, express or implied, between them relative thereto. This Agreement may only
be amended by way of a written instrument that is signed by both Pates.
City of McHenry
By
Mayor W n S. ett Date
Attest: l�' ,E'1�i1 �I�%A(',t/1-t.
Debra Meadows Deputy City Clerk
Brake PartsXc. LLC
BY ' V f4IM/Al t]
H. David Overbeeke Date 7
Its:
President and CEO
Department of
Economic Development
Douglas Martin, Director of Economic Development
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2170
Fax: (815) 363-2173
dmartin@ci.mchenry.il.us
www.ci.mchenry.il.us
Exhibit A
Legal Description of Subject Property
Department of
Economic Development
Douglas Martin, Director of Economic Development
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2170
Fax: (815) 363-2173
dmartin@ci.mchenry.il.us
www.ci.mchenry.il.us
Exhibit B
Base Property Tax Amount
$13,218.37