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HomeMy WebLinkAboutOrdinances - ORD-19-1977 - 08/05/2019 - Property Tax Abatement Agreement with BPI FILED WHENRY COUNTY,IL AUG 14 2019 CITY OF MCHENRY Joseph J. Tirio COUNTY CLERK MCHENRY COUNTY STATE OF ILLINOIS ORDINANCE NUMBER ORD-19-1977 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 August 5,2019 Published in pamphlet form by authority of the Mayor and City Council of the City of McHenry, McHenry County,Illinois this 6` day of August,2019. ORDINANCE NO. ORD-19-1977 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 August 5, 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 SECTION 3: City of McHenry Ordinances ORD-19-135, ORD-19-139, and ORD-19-159 are hereby repealed. SECTION 4: All Ordinance or parts thereof in conflict with the terms and provisions hereof are hereby repealed to the extent of such conflict. SECTION 5: 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 6: This Ordinance shall be in full force and effect from and after its passage, approval, and publication in pamphlet form as provided by law. Passed and approved this 5th day of August, 2019. Ayes Nays Absent Abstain Alderwoman Baehne X Alderman Devine Ir Alderman Glab X Alderman Mihevc a' Alderwoman Miller X Alderman Santi X Alderman Schaefer X Wayne t , M or Monte Johnson, eputy Clerk 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. 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. Property 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 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. 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 Parties. City of McHenry Brake Parts In r ZZ By By Mayo ayn S. Jett Date H. David Overbeeke Date Attest: 7` ,4, a- � -- Its: Monte Johnson, ffeputy City Clerk President and CEO Agreement Exhibit A Legal Description of Subject Property Legal Description: 16M North IndUUW Drive PARCEL I: THAT PART OF THE EAST HALF OF THE SOUTHEAST QUARTER OF SECTION 27. TOWNSHIP 45 NORTH.RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDLAN. BEING DESCRIBED AS FOLLOWS:BEGINNINGS AT THE NORTHWEST CORNER OF SAID EAST HALF OF THE SOUTHEAST QUARTER,THENCE NORTH 89 DEGREES 33 MINUTES 31 SECONDS EAST ALONG THE NORTH LI1N'E THEREOF,240.19 FEET;THENCE SOUTH 0 DEGREES 27 MINUTES 10 SECONDS EAST,292.94 FEET: THENCE SOUTHEASTERLY. 179.09 ALONG A CURVE TO THE LEFT,HAVING A RADIUS OF 376.15 FEET,THENCE SOUTHEASTERLY.77.49 FEET ALONG A REVERSE CURVE.HAVING A RADIUS OF 247.26 FEET TO THE NORTH LINE OF A 33.0 FOOT PUBLIC ROAD.COMMONLY KNOWN AS LYDUSTRIAL DRIVE: THENCE NORTH 89 DEGREES 10 MINUTES 54 SECONDS WEST ALONG SAID NORTH LINE,318.45 FEET TO THE WEST LINE OF SAID EAST HALF OF THE SOUTHEAST QUARTER,THENCE NORTH 0 DEGREES 52%.M4UTES,43 SECONDS EAST ALONG SAID WEST LINE.521.48 FEET TO THE PLACE OF BEGINNING,IN MCHENRY COUNTY,IL.LINOIS. PARCEL 2: LOT 26 AND THAT PART OF LOT 24,DESCRIBED AS FOLLOWS:COMMENCING AT THE POINT OF IA"IERSEC.TION OF THE NORTH AND SOUTH QUARTER SECTION LINE OF SECTION 27,TOWNSHIP 45 NORTH,RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN.WITH THE CENTER OF THE HIGHWAY KNOWN AS ROUTE NO. 120;THENCE SOUTHEASTERLY ALONG THE CENTER OF SAID HIGHWAY,A DISTANCE OF 785.0 FEET TO A POINT FOR A PLACE OF BEGNNING;THENCE SOUTHEASTERLY BEING ON A CONTINUATION OF THE CENTER OF SAID HIGHWAY,A DISTANCE OF 342.97 FEET;THENCE 14ORTH BEING ON A LINE FORMING AN ANGLE OF 104 DEGREES AND 40 MINUTES TO THE LEFT.WITH A PROLONGATION OF THE LAST DESCRIBED LINE.FOR A DISTANCE OF 1304.8 FEET;THENCE NORTHWESTERLY.BEING ON ALINE FORMING AN ANGLE OF 72 DSGRERS AND 45 MINUTES TO THE LEFT WITH A PROLONGATION OF THE LAST DESCRWED LINE,A DISTANCE OF 347.42 FEET: THENCE SOUTH ON A LINE FORMING AN ANGLE OF 107 DEGREES AND 15 MINUTES TO THE LEFT,WITH A PROLONGATION OF THE LAST DESCRIBED LINE.FOR A DISTANCE OF L321.95 FEET TO THE PLACE OF BEGINNING. (EXCEPT THAT PART THEREOF DESCRIBED AS FOLLOWS; BEGINMNG AT A POINT ON THE WEST LINE OF TI IE EAST 10.00 ACRES OF SAID LOT 24.SAID POINT ALSO BEING IN THE CENTER LINE OF STATE ROUTE 120;THENCE SOUTMASTERLY ALONG TBE CENTER LINE OF SAID STATE ROUTE 120.FOR A DISTANCE OF 435.56 FEET TO A POINT OF CURVE IN SAID CENTER LINE: THENCE SOkMIEASTERLY ALONG SAID CENTER LINE-BEING ON A CURVE. CONVEX NORTHEASTERLY, FOR A DISTANCE OF I29.710 FEET.(CHORD MEASUREMENT)TO A POINT OF INTERSECTION OF SAID CENTER LINE AND TI III EAST LINE OF SAID LOT 26;THENCE NORTH ON THE EAST LINE OF SAID LOT 26,FOR A DISTANCE OF 597.68 FEET TO A POINT:THENCE WEST AT RIGHT ANGLES TO THE LAST DESCRIBED LINE,AT THE LAST DESCRIBED POINT,FOR A DISTANCE OF 546.00 FEE L TO A POINT ON THE WEST UNE OF THE EAST 10.00 ACRES OF SAID LOT 24.THENCE SOUTH 451.68 FEET TO THE PLACE OF BEGINNING)(ALSO EXCEPT THE NORTH 941.62 FEET OF LOT 26.AS MEASURED ALONG THE EAST AND WEST LINES THEREOF).ALL IN THE COUNTY CLERK'S PLAT OF A PART OF SAID SECTION 27,TOWNSHIP 45 NORTH.RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN.ACCORDING TO THE PLAT THEREOF RECORDED MAY 6. 1902.IN BOOK 2 OF PLATS,PAGE 41.IN MCHENRY COUNTY, al2401S. STATE OF ILLINOIS ) COUNTY OF MCHENRY ) CERTIFICATION I, Monte Johnson, do hereby certify that I am the duly appointed, acting and qualified Deputy Clerk of the City of McHenry, McHenry County, Illinois, and that as such Deputy City Clerk, I am the keeper of the records and minutes and proceedings of the Mayor and Aldermen of said City of McHenry. I do hereby further certify that at a regular meeting of the Mayor and Aldermen of the City of McHenry, held on the 51h day of August, 2019, the foregoing Ordinance entitled An Ordinance Authorizing the Mayor's Execution of a Property Tax Abatement Agreement Between the City of McHenry and BPI was duly passed by the City Council of the City of McHenry. The pamphlet form of Ordinance Number MC-19-1977, including the Ordinance and a cover sheet thereof, was prepared, and a copy of such Ordinance was posted in the City Hall, commencing on the 6th day of August, 2019, and will continue for at least 10 days thereafter. Copies of such Ordinance are also available for public inspection upon request in the office of the City Clerk. I do further certify that the original, of which the attached is a true and correct copy, is entrusted to me as the Clerk of said City for safekeeping, and that I am the lawful custodian and keeper of the same. GIVEN under my hand and seal this 61h day of August, 2019. 7-Y6� a. zpvn� Monte Johnson, Deputy City Clerk City of McHenry, McHenry County, Illinois (SEAL)