HomeMy WebLinkAbout#5195 Approving an amended intergovernmental agreement t
RESOLUTION NO 5195
A RESOLUTION APPROVING AN AMENDED INTERGOVERNMENTAL
AGREEMENT BETWEEN THE CITY OF CANTON, COUNTY OF FULTON, SPOON
RIVER COLLEGE,BANNER TOWNSHIP, VILLAGE OF BANNER,BUCKHEART
TOWNSHIP, CANTON TOWNSHIP, ORION TOWNSHIP,AND CANTON UNION
SCHOOL DISTRICT#66 AMENDING AN ENTERPRISE ZONE AND DIRECTING
THE MAYOR, OR HIS DESIGNEE,AND CITY CLERK TO EXECUTE AND DELIVER
SAID AGREEMENT ON BEHALF OF THE CITY OF CANTON,ILLINOIS
WHEREAS, the City of Canton, County of Fulton, Village of Banner, Spoon River
College,Banner Township,Buckheart Township,Canton Township,Orion Township,and Canton.
Union School District #66, have collectively created the Canton-Fulton County Enterprise Zone
located in Fulton County, Illinois; and
WHEREAS, the parties desire to amend the incentives provided within the existing
Canton-Fulton County Enterprise Zone pursuant to 20 ILCS 655/5.4 of the Illinois Enterprise Zone
Act to expand certain incentives for those operating within the Canton-Fulton County Enterprise
Zone;
WHEREAS, it is necessary to enter into an Amended Intergovernmental Agreement to
include all territory designated as the Canton-Fulton County Enterprise Zone and engage in the
amendments to provide additional incentives; and
WHEREAS, the Legal and Ordinance Committee of the City of Canton has determined
that it is necessary and in the best interest to enter into an Amended Intergovernmental Agreement
with County of Fulton, Canton Park District, Spoon River College, Banner Township, Buckheart
Township, Canton Township, Orion Township, and Canton Union School #66 as set forth in
Exhibit"A"attached hereto and incorporated herein; and
WHEREAS,the City Council of the City of Canton has made-a similar determination.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
CANTON, Fulton County, Illinois as follows:
1. That the Amended Intergovernmental Agreement attached hereto Exhibit A hereto and
herein incorporated by reference, is hereby approved by the Canton City Council.
2. That the Mayor, or his designee, and the City Clerk are hereby authorized and directed
to execute the same (at least in triplicate if needed) on behalf of the City of Canton.
3. That this Resolution shall be in full force and effect immediately upon its passage by
the City Council of the City of Canton, Illinois and approval by the Mayor thereof.
PASSED by the City Council of the City of Canton,Illinois at a regular meeting this 18 day of
June, 2019 upon a roll call vote as follows:
AYES: Alderman Justin Nelson, Angela Lingenfelter, Jeff Fritz,
Angela Hale, John Lovell, Quin Mayhew
NAYS: None
ABSENT: Alderman Craig West, Ryan Mayhew
PP OVED:
ent McDowell, ay r
ATTEST:
s
Diana Pavley-Rock, City Clerk
2
2019 AMENDED INTERGOVERNMENTAL PROPERTY TAX
ABATEMENT AGREEMENT
THIS AGREEMENT made and entered into this day of l�l 2019,by and
between the City of Canton, County of Fulton, Spoon River College,Banner Township,Buckheart
Township, Canton Township, Orion Township, Village of Banner, and the Canton Union School
District#66, collectively referred to as the "Taxing Bodies."
WHEREAS,the Taxing Bodies have the power to abate property taxes pursuant to Section
18-165 and 170 of the Property Tax Code, as amended(35 ILCS 200/18-165 and 170); and,
WHEREAS,the Taxing Bodies may enter in to intergovernmental cooperation agreements
pursuant to Article VII, Section 10 of the Illinois Constitution of 1970 and the Intergovernmental
Cooperation Act(5 ILCS 220/1 et seq.); and,
WHEREAS, the Taxing Bodies entered into an Intergovernmental Property Tax
Abatement Agreement in 2014 and desire to expand the tax incentives created under said 2014
Intergovernmental Property Tax Abatement Agreement; and,
WHEREAS, the Taxing Bodies desire to attract and retain new and diverse business and
industrial enterprises within their boundaries in order to increase the equalized assessed valuation
by encouraging private sector investment; and
WHEREAS,the creation of well-paying jobs is essential to the economic and social well-
being of the people of the City of Canton and the County of Fulton; and
WHEREAS, the Taxing Bodies find that the granting of certain property tax abatements
may be necessary to attract and retain new and diverse business and industrial enterprises; and,
WHEREAS, the Taxing Bodies desire to establish a simplified cooperative procedure for
reviewing and granting, if appropriate, certain property tax abatement requests;
NOW, THEREFORE IT IS AGREED by and between the Taxing Bodies as follows:
1. Agreement to Grant Property Tax Abatements
The Taxing Bodies agree to provide property abatements to businesses in accordance with
Section 18-170 of the Property Tax Code,as amended(35 ILCS 200/18-170),provided the
City of Canton, on behalf of the Taxing Bodies, enters into an Abatement Agreement with
an Applicant in accordance with the terms and conditions set forth in this Agreement.
2. Definitions
Page 1 of 8
The following words,terms, and phrases shall have the meanings set forth herein and such
meanings shall be applicable to the singular and plural form thereof:
A. "Abatement Agreement"is the written agreement between the City of Canton,
on behalf of the Taxing Bodies, and the Applicant receiving the tax abatement.
The agreement defines the terms and conditions by which abatement of property
tax is authorized.
B. "Full-time equivalent job" is a job in which the new employee works for an
employer or for another entity under contract to the employer at a rate of at least
thirty-five (35)hours per week. An employer who employs labor or services at
a specific site or facility under contract with another may declare one full-time,
equivalent job for every 1,820 man-hours worked per year under that contract.
Vacations, paid holidays, and sick time are included in this computation.
Overtime is not considered a part of regular hours.
C. "Applicant" is any individual, entity, or enterprise that owns real estate within
the corporate limits of the City of Canton or the County of Fulton which is
within the boundaries of the certified enterprise zone(as certified by the Illinois
Department of Commerce and Economic Opportunity), which takes all of the
necessary steps to make said application in compliance with all terms specified
in this Agreement.
3. Criteria for Abatement
In addition to meeting the statutory criteria of Section 18-170 of the Property Tax Code,
as amended (35 ILCS 200/18-170), to be considered for abatement, a qualified
enterprise must meet and agree to the following criteria:
A. Capital Investment &Job Creation: A company may qualify for property tax
abatement by:
i. making a capital investment in new construction of between Five
Hundred Thousand Dollars ($500,000.00) and Ten Million Dollars
($10,000,000.00) and creating and retaining a minimum of twenty(20)
full-time equivalent jobs; or
ii. making a capital investment in new construction of over Ten Million
Dollars ($10,000,000.00) and creating and retaining a minimum of fifty
(5 0) full-time equivalent jobs; or
iii. making a capital investment in building expansion of between Four
Hundred Thousand Dollars ($400,000.00) and Five Million Dollars
Page 2 of 8
($5,000,000.00) and creating and retaining ten (10) full-time equivalent
jobs; or
iv. making a capital investment in building expansion of more than Five
Million Dollars($5,000,000.00)and creating and retaining fifteen(15)full-
time equivalent jobs.
B. Wage Rates: Companies must pay an average wage equivalent to 110 percent
(110%) of the average wage of Fulton County, as defined and listed for that job
classification by the Illinois Department of Employment Security. The
minimum average wage must be reviewed and adjusted on an annual basis, on
or before December 31 of each year, for the duration of the abatement.
C. Abatement Agreement: The applicant shall execute and submit to the City of
Canton,on behalf of the Taxing Bodies,an Abatement Agreement that complies
with the requirements of this Agreement in a form similar to the document
available with the City of Canton.
D. Abatement Commencement: The abatement of property tax commences in the
first full tax year following the issuance of a temporary occupancy permit for
the building for which taxes are being abated.
E. Property Location: In order to be eligible for property tax abatement, the
property must be within Fulton County and within the certified enterprise zone
area, as certified by the Illinois Department of Commerce and Economic
Opportunity.
F. Scope of Abatement: The abatement of property taxes applies to the new
construction or improvements to existing structures, not the underlying land.
G. Authority: The Taxing Bodies have final determination on classifications and
criteria for the eligibility of Applicants.
4. Property Tax Abatement Schedule
The duration for property tax abatement of companies that are located within such
enterprise zone and otherwise qualify for such abatement shall be five (5) years for
each of the Taxing Bodies. In the first year of the abatement, the Taxing Bodies shall
each abate fifty percent (50%) of the property taxes on the subject property. In the
second year of the abatement, the Taxing Bodies shall each abate forty percent(40%)
of the property taxes on the subject property. In the third year of the abatement, the
Taxing Bodies shall each abate thirty percent(30%)of the property taxes on the subject
Page 3 of 8
property. In the fourth and fifth years of the abatement, the Taxing Bodies shall each
abate twenty-five percent (25%) of the property taxes on the subject property each of
those years:
5. Assignment to Transfer
The abatement is specifically granted to the Applicant; however, in the event the
Applicant transfers or assigns any or all of its ownership of the subject property, the
property tax abatement shall remain with the subject property so long as the subsequent
owner continues to satisfy all of the criteria for abatement. If the subsequent owner
does not satisfy all of the criteria for abatement, the property tax abatement shall
immediately cease.
6. Recapture of Tax
During the term of the Abatement Agreement, in the event that the Applicant ceases
operation, the abatement shall immediately terminate, and each of the Taxing Bodies
shall be eligible to receive back the full value of the property taxes abated under the
conditions established in the Property Tax Code(35 ILCS 200/18-183). Refund of the
abatement shall be remitted to the Taxing Bodies within thirty(30) days from the date
the Applicant ceased operation.
7. Agreement with Applicant
The Applicant shall enter into an Abatement Agreement with the City of Canton on
behalf of the Taxing Bodies that shall set forth the terms of the Abatement and which
shall at a minimum include the terms and criteria of the abatement as provided herein.
The Abatement Agreement may include any such additional terms as may be required
by the City of Canton and Taxing Bodies. The abatement shall be conditioned upon
the execution of the Abatement Agreement by the Applicant.
Upon completion of the project and compliance verification by the City of Canton
during the first full tax year,the City of Canton shall send notice of project compliance,
as referenced in paragraph nine (9) of this agreement, to each Taxing Body. The City
of Canton, the Taxing Bodies, and the Applicant shall comply with the requirements
set forth in the Property Tax Code as set forth in 35 ILCS 200/18-170. Specifically,
notice of the abatement order shall be delivered to the Fulton County Clerk no later
than July 1 of the assessment year to be first affected by the abatement order.
Any material breach of the Abatement Agreement shall be cause for termination of the
Abatement. Upon material breach of the Abatement Agreement,the Taxing Bodies or
the Applicant, in any court of competent jurisdiction by an action or proceeding at law
Page 4 of 8
or equity, may secure the specific terms of performance as set forth by the Abatement
Agreement and may be awarded damages for failure of performance.
In the event of a material breach or failure to perform any of its obligations as defined
by the terms of the Abatement Agreement,the Non-Defaulting Party shall give written
notice of the default to the Defaulting Party. The party alleged to be in default shall
have thirty(30) days after receiving written notice of default to correct the default prior
to the Non-Defaulting Party seeking remedy as provided for herein. However, the
thirty (30) day period may be extended an additional thirty (30) days by the City of
Canton if the Defaulting Party has initiated the cure of said default and is diligently
proceeding to cure the breach.
If the said thirty (30) day period has been extended and the breach has not been cured,
the Non-Defaulting Party shall have the right to take such action as in its reasonable
discretion and judgment shall be necessary to cure such default. In such event, the
Defaulting Party hereby agrees to pay and reimburse the Party affected by such default
for all reasonable costs and expenses,including attorneys' fees and litigation expenses,
incurred by it in connection with any action taken to cure such default.
8. Indemnification
The Applicant receiving an abatement agrees to pay, at its expense, any and all claims,
damages, demands, expenses, liabilities, and losses of any nature whatsoever resulting
from this agreement, the construction, improvement and development activities of
Applicant, its agents, contractors, and subcontractors with respect to the development
or improvement of its property, and to defend and indemnify and hold the Taxing
Bodies and their respective officers, elected and appointed, agents, employees,
engineers and attorneys(the"Indemnitees")harmless of,from,and against such claims,
damages, demands, expenses, liabilities and losses, except to the extent such claims,
damages, demands, expenses, liabilities and losses arise by reason of the gross
negligence or willful or wanton act or omission of the Taxing Bodies or other
Indemnitees.
The Applicant receiving abatement further agrees to defend and hold harmless the
Taxing Bodies from any claims arising out of the terms of this Agreement, including
any challenges or claims with regard to the abatement of property tax by the Taxing
Bodies. The obligation to indemnify created hereunder extends to indemnifying the
Taxing Bodies from any claims for monetary relief seeking a refund of any monies
abated under that terms of this agreement. The obligation to indemnify also extends to
any claims, causes of action, suits, demands, or proceedings, whether in law or in
equity, to have any of the terms of this agreement authorizing the abatement of tax
Page 5 of 8
revenues declared unconstitutional, invalid, or otherwise void. Further, the obligation
to indemnify extends to paying any damages assessed against the Taxing Bodies as a
result of any actions taken under this agreement.
9. Reporting Procedures
On an annual basis, on or before March 31 of each year, for the duration of the
abatement, the Applicant shall supply the Enterprise Zone Administrator or his/her
designee with written verification of the Applicant's compliance with the terms of the
Abatement Agreement including, but not limited to, job creation, wages being paid,
and any such other information as may be required by the City of Canton based on the
prior calendar year's data.
10. Termination
This agreement shall remain in effect from the date that the Enterprise Zone is approved
by the Illinois Department of Commerce and Economic Opportunity or approved by all
of the Taxing Bodies, whichever is later, until December 31, 2031, and will
automatically renew for an additional ten (10) years if the extension of the Enterprise
Zone is granted by'the Illinois Department of Commerce and Economic Opportunity.
11. No Third-Party Beneficiary to Agreement
This agreement is made for the purpose of providing a uniform method of reviewing
applications for property tax abatements between the Taxing Bodies and is not intended
to create any rights, title, or interest for any third-party.
12. Compliance with Law
Any proposed abatement shall comply with the provisions of Section 18-165 and 170
of the Property Tax Code, as amended (35 ILCS 200/18-165 and 170).
13. Review Process
Upon receipt of the application form for the abatement of taxes which satisfies the
criteria set forth herein, the Enterprise Zone Administrator or his/her designee shall,
notify the chief executive of each of the other Taxing Bodies of the requested
abatement. Each Taxing Body shall have ten (10) days from the receipt of their
notification to object to the abatement request. Failure by the respective chief executive
to file a written objection with the Enterprise Zone administrator or his/her designee
within the ten (10) day time limit shall be construed as a recommendation supporting
the abatement request. The City of Canton, on behalf of the Taxing Bodies, shall
execute the Abatement Agreement defined herein, unless a majority of the Taxing
Bodies file a letter of objection with the Enterprise Zone Administrator within ten(10)
days of the date of notification of the request for tax abatement.
Page 6 of 8
14. Execution of Agreement
This agreement shall be executed in the form of ten(10)duplicate originals by the chief
executive of each Taxing Body and shall be attested to by the respective Clerk or
Secretary of each Taxing Body.
CITY OF CANTON, COUNTY OF FULTON,
�t, U� ✓ L.
BY: Uv BY:
ITS: A Al ITS:
14
ATTEST: ATTEST:
ITS: ITS:
SPOON RIVER COLLEGE,
BY:
ITS:
BANNER TOWNSHIP, BUCKHEART TOWNSHIP,
BY: BY:
ITS: ITS:
ATTEST: ATTEST:
ITS: ITS:
--------SIGNATURES CONTINUED ON NEXT PAGE--------
Page 7 of 8
CANTON TOWNSHIP, ORION TOWNSHIP,
BY: BY:
ITS: ITS:
i
ATTEST: ATTEST:
ITS: ITS:
CANTON UNION SCHOOL DISTRCIT#66,
BY:
ITS:
ATTEST:
ITS:
VILLAGE OF BANNER, ILLINOIS
BY:
ITS:
ATTEST:
ITS:
Page 8 of 8
CANTON TOWNSHIP, ORION TOWNSHIP,
BY: BY:
ITS: ITS:
ATTEST: ATTEST:
ITS: ITS:
CANTON UNION SCHOOL DISTRCIT#66,
BY:
ITS: Board President
1f
ATTEST: / v fYL
ITS: �'�Board Secretary
VILLAGE OF BANNER, ILLINOIS
BY:
ITS:
ATTEST:
ITS:
Page 8 of 8
14. Execution of Agreement
This agreement shall be executed in the form of ten(10)duplicate originals by the chief
executive of each Taxing Body and shall be attested to by the respective Clerk or
Secretary of each Taxing Body.
CITY OF CANTON, COUNTY OF FULTON,
BY: BY:
ITS: ITS:
ATTEST: ATTEST:
ITS: ITS:
SPOON RIVER COLLEGE,
BY:
ATTEST: A
ITS: e i
BANNER TOWNSHIP, BUCKHEART TOWNSHIP,
BY: BY:
ITS: ITS:
ATTEST: ATTEST:
ITS: ITS:
Page 7.of 8
CANTON TOWNSHIP;. ORION TOWNSHIP,
BY
ITS: I/ ITS- .
,ATTEST �r`- ATTEST:..
- .ITS: , ITS:'
!CANTON UNION:SCHOOL DISTRCIT#66,
BY:
'ITS:
ATTEST:
TTS:
VILLAGE OF BANNER, ILLINOIS:
BY:_
.
-ITS:'
ATTEST:
ITS:.
Page S.-of 8
CANTON TOWNSHIP, ORION TOWNSHIP,
ITS: ITS:S /Y -I --
ATTEST: ATTEST:
ITS: ITS: ( .Icy 4 i5
CANTON UNION SCHOOL DISTRCIT#66,
BY:
ITS:
ATTEST:
ITS:
VILLAGE OF BANNER, ILLINOIS
BY:
ITS:
ATTEST:
ITS:
Page 8 of 8
CANTON TOWNSHIP, ORION TOWNSHIP,
BY: BY:
ITS: ITS:
ATTEST: ATTEST:
ITS: ITS:
CANTON UNION SCHOOL DISTRCIT#66,
BY:
ITS:
ATTEST:
ITS:
VILLAGE OF IL4NNER, OIs
BY: • •
ITS: vi `
ATTEST:
ITS:
Page 8 of 8
designee within the ten (10) day time limit shall be construed as a recommendation
supporting the abatement request. The City of Canton, on behalf of the Taxing
Bodies, shall execute the Abatement Agreement defined herein, unless a majority of
the Taxing Bodies file a letter of objection with the Enterprise Zone Administrator
within ten (10) days of the date of notification of the request for tax abatement.
14. Execution of Agreement
This agreement shall be executed in the form of ten (10) duplicate originals by the
chief executive of each Taxing Body and shall be attested to by the respective Clerk
or Secretary of each Taxing Body.
CITY OF CANTON, COUNTY OF FULTON,
BY: BY:
ITS: ITS:
ATTEST: ATTEST:
ITS: ITS:
SPOON RIVER COLLEGE,
BY:
ITS:
ATTEST:
ITS:
BANNER TOWNSHIP, BUCKHEART TOWNSHIP,
BY: BY. .
ITS: ITS: °
ATTEST: ATTEST:
ITS: ITS: e- 'es� _
Page 7 of 8
designee within the ten (10) day time limit shall be construed as a recommendation
supporting the abatement request. The City of Canton, on behalf of the Taxing
Bodies, shall execute the Abatement Agreement defined herein, unless a majority of
the Taxing Bodies file a letter of objection with the Enterprise Zone Administrator
within ten (10) days of the date of notification of the request for tax abatement.
14. Execution of Agreement
This agreement shall be executed in the form of ten (10) duplicate originals by the
chief executive of each Taxing Body and shall be attested to by the respective Clerk
or Secretary of each Taxing Body.
CITY OF CANTON, COUNTY OF FULTON,
BY: BY:
ITS: ITS:
ATTEST: ATTEST:
ITS: ITS:
SPOON RIVER COLLEGE,
BY:
ITS:
BANNER TOWNSHIP, BUCKHEART TOWNSHIP,
BY y �—�'�/ BY:
sK ITS: ITS:
ATTEST ; ATTEST:
ITS: ITS:
--------SIGNATURES CONTINUED ON NEXT PAGE—-----
Page 7 of 7
14. Execution of Agreement
This agreement shall be executed in the form of ten(10)duplicate originals by the chief
executive of each Taxing Body and shall be attested to by the respective Clerk or
Secretary of each Taxing Body.
CITY OF CANTON, COUNTY OF FULTON,
L/
BY: LUv BY:
ITS: M d'1� ITS: V `
ATTEST: ATTEST:
ITS: ITS:
SPOON RIVER COLLEGE,
BY:
ITS:
BANNER TOWNSHIP, BUCKHEART TOWNSHIP,
BY: BY:
ITS: ITS:
ATTEST: ATTEST:
ITS: ITS:
--------SIGNATURES CONTINUED ON NEXT PAGE-------- ,
Page 7 of 8