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HomeMy WebLinkAboutResolution # 3860 - economic development services with spoon river partnership for economic developmentRESOLUTION NO. 3860 A RESOLUTION APPROVING AN ECONOMIC DEVELOPMENT SERVICES AGREEMENT BETWEEN THE CITY OF CANTON AND THE SPOON RIVER PARTNERSHIP FOR ECONOMIC DEVELOPMENT AND AUTHORIZING AND DIRECTING THE MAYOR AND CITY CLERK OF THE CITY OF CANTON TO EXECUTE SAID AGREEMENT ON BEHALF OF THE CITY OF CANTON. WHEREAS, the City of Canton, Illinois has entered into negotiations with the Spoon River Partnership for Economic Development concerning an Economic Development Services Agreement between the City of Canton and the Spoon River Partnership for Economic Development; and WHEREAS, the Finance Committee of the City of Canton, Illinois has reviewed the terms of the proposed Economic Development Services Agreement, a copy of which Agreement is attached hereto and made a part hereof as Exhibit A; and WHEREAS, the Finance Committee of the City of Canton, Illinois has determined that it is necessary, desirable and in the best interest of the City of Canton, Illinois to approve said Agreement; and WHEREAS, the City Council of the City of Canton has made a similar determination. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND THE CITY COUNCIL OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS, AS FOLLOWS: 1. That the Economic Development Services Agreement between the City of Canton, Illinois and the Spoon River Partnership for Economic Development, a copy of which Agreement is attached hereto and made a part hereof as Exhibit A, is hereby approved in the form attached as Exhibit A, said Agreement to be subject to and effective pursuant to the terms and conditions set forth therein. 2. That the Mayor and City Clerk of the City of Canton, Illinois are hereby authorized and directed to execute and deliver said Agreement on behalf of the City of Canton, Illinois. 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, Fulton County, Illinois at a regular meeting this 20th day of May , 2008 upon a roll call vote as follows: AYES: Aldermen Schenck, Berardi, Sarff, West, Nidiffer, Strandberg, Level-s. NAYS: None. ABSENT: One, due to Alderman Meade becaning the mayor. Approved: i~ Mayor Attest: ~~~ Nancy Whit ,City Clerk ECONOMIC DEVELOPMENT SERVICES AGREEMENT This Agreement for Economic Development Services (Agreement) is made and entered into on this ~ D ~` day of May, 2008, by and between the City of Canton, an Illinois municipal corporation, (hereinafter referred to as City) and the Spoon River Partnership for Economic Development, an Illinois not-for-profit corporation, (hereinafter referred to as SRPED). RECITALS WHEREAS, the City desires to promote economic development within the City of Canton, Illinois area; and WHEREAS, the City has determined that it is in its best interests to use the services of SRPED to assist in promoting economic development; and WHEREAS, SRPED's purpose is to combat community deterioration that included but is not limited to high employment and a decline of local economic conditions; and WHEREAS, the SRPED will help to promote the development, establishment or expansion or industries. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS, CONDITIONS, AND PROMISES SET FORTH IN THE AGREEMENT, THE PARTIES HERETO AGREE TO THE FOLLOWING: 1. Section One - Scoue of Services SRPED will provide the following services during the term of this Agreement: A. Conduct activities intended to result in a diversified and expanded tax base. B. Promote the image of the Canton area among development prospects. C. Serve as a clearinghouse and central point of coordination for economic development information and activity. D. Promote use of hotel/motel tax funds. E. Assess the available economic development incentives and provide recommendations to the City to enhance the City's competitive position. F. Provide a realistic evaluation of the City's strengths, weaknesses, opportunities, and threats for purposes of attracting business and industry and improving the City's competitive position. G. Stimulate and coordinate greater involvement and financial commitment of the public and private sectors in economic development efforts. H. Provide assistance and technical expertise to the City on economic development issues as needed. I. Provide assistance in packaging economic development incentives for prospective or expanding industry or business. J. Coordinate visits with development representatives for prospective locations in the City. K. Promote current business sectors and businesses in the Canton area. L. Review and investigate economic development opportunities that will benefit the local economy, make recommendations as to the prioritization of such opportunities, recommend an action plan for achieving the SRPED's economic development priorities and implement and monitor said action plan. M. Meet with current and potential businesses to discuss inducements and barriers to expansion and conducting business in the Canton area and to make recommendations to improve those inducements and reduce the barriers. N. Review and recommend policies, regulations, procedures, etc., regarding business issues that may be adopted by the appropriate agency to implement. O. Coordinate the SRPED's efforts with other development groups in the area. P. Review and make recommendations regarding options for downtown improvements and enhancements. Q. Pursue grants that may be available to assist in economic development. R. Develop and implement appropriate marketing and public relations programs. S. Maintain up-to-date community and economic data, promotional materials, and a site and building inventory. T. Provide support for the City's Revolving Loan Fund, Tax Increment Finance Districts and Enterprise Zone programs; and U. Assist the City in redevelopment of the former International Harvester site. V. Any additional services the City may designate through a work order. Section Two: Budget Regarding Services 2 The City has budgeted $85,000 (eighty-five thousand dollars) for this Agreement in their FY08- 09 budget, as reflected in Ordinance No. .The total budget includes both restricted and general funds as follows: FUND AMOUNT International Harvester TIF $30,000.00 Industrial Park TIF $5,000.00 Hotel/Motel Tax $5,000.00 General Fund $45,000.00 Total $85,000.00 The International Harvester TIF is a restricted fund and funds may only be spent out of activities as designated per statutory requirements. The Industrial Park TIF is a restricted fund and funds may only be spent out of activities as designated per statutory requirements. The Hotel/Motel Tax fund is a restricted fund and funds may only be spent out of activities as designated per statutory requirements. The General Fund may be spent on any and all activities as appropriately determined by the corporate bodies of the City of Canton. The City has determined their budget based on economic development needs and priorities of the City. Therefore, it is the City's intent that the budgeted amounts shall correspond to the time spent on projects that would be properly billed and payable out of the designated funds. The City's total budget, with the previously described project time percentages (hereinafter, PTP's) is as follows: FUND AMOUNT PTP's International Harvester TIF $30,000.00 35% Industrial Park TIF $5,000.00 5% Hotel/Motel Tax $5,000.00 5% General Fund $45,000.00 55% Total $85,000.00 Should changes in the City's economic development environment or exigent circumstances warrant, a work order can be completed to amend the PTP's, per the procedure outlined in Section 5 of this Agreement. Section Three• Cost and Payment Procedures All work will be completed on a time and materials basis, to be billed with complete itemization, to a maximum of $21,250.00 per quarter, with the first quarter ending July 31, 2008. The City will make apre-payment of the $45,000.00 budgeted out of the General Fund upon approval and execution of this Agreement. SRPED shall send the City an invoice for professional fees and reimbursable expenses at the end of each quarter, with sufficient detail to determine all PTP's and noting the initial pre-payment of $45,000.00. The hourly rates for all SRPED employees are attached hereto and incorporated herein as Addendum A. Section Four: Duration This Agreement shall commence on May 1, 2008 and will be in effect through Apri130, 2009. Section Five: Termination Prior to Apri130, 2009, this Agreement may be terminated by either party, by providing a ninety (90) day written notice by certified mail, which shall contain the party's intention to terminate and shall also include the effective date of such termination. All notices required by this section shall be forwarded to the following addresses: City: SRPED: Mayor Spoon River Partnership for Economic Development City Hall Executive Director 2 N. Main St. 45 East Side Square, Ste. 303 Canton, IL 61520 Canton, IL 61520 If terminated, the City agrees to pay SRPED the hourly rates for all services rendered, but not to exceed the maximums outlined in Section Three up through the date of termination. Section Six: Revisions to the Agreement This Agreement may only be revised upon mutual consent. Revision may be initiated by any party by providing at least ten (10) days written notice by certified mail, which shall contain a proposed revision, meeting date and time to discuss whether all parties approve the revision. Section Seven: Professional Management and Staffing SRPED agrees to maintain a professional economic development staff, capable of carrying out the mission of the organization and implementing the covenants of the Agreement. Section Eight: Board Representation SRPED agrees that the City shall have four representatives serving as voting members on the SRPED Board of Directors. Section Nine: Accountability and Reporting A. The SRPED agrees to create an economic development plan that can be incorporated into any comprehensive or strategic plan established by the City. 4 B. The SRPED shall report monthly, or more frequently as requested by the City, to the City on its progress toward economic goals and priorities. C. The SRPED agrees to adhere to its budget and maintain all financial records in accordance with generally accepted accounting principles (GAAP). The City shall have the right upon written request to inspect the financial documents of the SRPED. Section Ten: Indemnification SRPED agrees to protect, indemnify, hold and save harmless the City against any and all claims, demands, costs or judgments which may arise out of this agreement. Section Eleven: Severability If any provision of this Agreement is held unenforceable, then such provision will be modified to reflect the parties' intention. All remaining provisions of this Agreement shall remain in full force and effect. Section Twelve: Entire Agreement This Agreement contains the entire Agreement of the parties with respect to the subject matter of this Agreement, and supersedes all prior negotiations, agreements, and understandings, either written or oral, with respect thereto. Section Thirteen: Amendments It is the intention and agreement of the parties that all provisions are included herein. However, if by mistake or otherwise, some provision is not contained herein, or is not reflected here in proper form, then upon application of either party per the procedure outlined in Section Five, the contract may be amended. When mutually agreeable, the contract may be modified as necessary because of changing requirements or for other reasons as determined by the City Council. However, any modification or amendment will only be by written agreement as duly executed by the parties and their authorized representatives as per the procedure outlined in Section Five. Section Fourteen: Assignability Neither party can assign this contract without the other party's prior written permission. Section Fifteen: Enforcement This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of Illinois. 5 Section Sixteen: Compliance with Law SRPED agrees to comply with all applicable laws, rules, and regulations promulgated by the City, or any federal, state, county, and/or government unit or regulatory body now in existence or which may become effective during the term of this Agreement. Dated this ~ d ~C~,day of ` , 2008 City of Canton, Illinois B Y• _ Mayor ,- Attest: Cit Jerk Spoon River Partnership for Economic Development By: S d airman Attest: SRPED Bo -Secretary 6 ATTACHMENT FEE SCHEDULE Hourly Rates Executive Director $80 Deputy Director $60 Office Manager/Project Assistant $40