HomeMy WebLinkAboutResolution #4093RESOLUTION NO 4093
A RESOLUTION APPROVING AN INTERGOVERNMENTAL AGREEMENT
BETWEEN THE CITY OF CANTON AND THE ENTERPRISE ZONE TAXING
BODIES AND DIRECTING THE MAYOR, OR HIS DESIGNEE, AND CITY CLERK
TO EXECUTE AND DELIVER THE 2014 INTERGOVERNMETAL PROPERTY TAX
AGABATEMENT AGREEMENT ON BEHALF OF THE CITY OF CANTON, ILLINOIS
WHEREAS, the City of Canton, County of Fulton, Canton Park District, Spoon River College,
Banner Township, Buckheart Township, Canton Township, Orion Township, Village of Banner and
Canton Union School District #66, have heretofore determined to abate taxes to support the newly
applied for Canton - Fulton County Enterprise Zone; and
WHEREAS, in furtherance of supporting and maintaining the economic benefits of the new
Canton - Fulton County Enterprise Zone, it is necessary to maintain an Intergovernmental Agreement to
include all territory designated as the Canton - Fulton County Enterprise Zone abate taxes in such
territories; 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 intergovernmental agreement with
County of Fulton, Canton Park District, Spoon River College, Banner Township, Buckheart
Township, Canton Township, Orion Township, Village of Banner and Canton Union School District #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 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.
NLR Documents /Resolutions
11/26/14
PASSED by the City Council of the City of Canton, Illinois at a regular meeting this 2nd day of
December, 2014 upon a roll call vote as follows:
AYES: Aldermen Ellis, Justin Nelson, Lovell, West, Pickel, Jim Nelson
NAYS: None
ABSENT: Alderwoman Hale
ABSTAIN: Alderman Tad Putrich
NLR Documents /Resolutions
11/26/14
....OUT U-03
2014 INTERGOVERNMENTAL PROPERTY TAX
ABATEMENT AGREEMENT
THIS AGREEMENT made and entered into this day of , 2014, by
and between the City of Canton, County of Fulton, Canton Park District, 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 of the Property Tax Code, as amended (35 ILCS 200/18 -165); 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 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 -165 of the Property Tax Code, as amended (35 ILCS 200/18 -165),
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
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:
Page 1 of 8
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 -165 of the Property Tax
Code, as amended (35 ILCS 200/18 -165), 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 $2 million
and $10 million and creating and retaining a minimum of twenty (20)
full -time equivalent jobs; or
ii. making a capital investment in new construction of over $10 million
and creating and retaining a minimum of fifty (50) full -time equivalent
jobs; or
iii. making a capital investment in building expansion of between $1
million and $5 million and creating and retaining ten (10) full -time
equivalent jobs; or
iv. making a capital investment in building expansion of more than $5
million and creating and retaining fifteen (15) full -time equivalent jobs.
Page 2 of 8
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, and 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 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.
Page 3 of 8
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 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.
Page 4 of 8
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 "Indemmitees ") 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
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.
Page 5 of 8
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 of the
Property Tax Code, as amended (35 ILCS 200/18 -165).
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 nine (9) 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,
BY:.�
ITS:
ATTEST:
ITS:
CANTON PARK DISTRICT,
BY:
ITS:
ATTEST:
ITS:
BANNER TOWNSHIP,
BY:
ITS:
ATTEST:
ITS:
COUNTY OF FULTON,
BY:
ITS:
ATTEST:
ITS:
SPOON RIVER COLLEGE,
BY:
ITS:
ATTEST:
ITS:
BUCKHEART TOWNSHIP,
BY:
ITS:
ATTEST:
ITS:
SIGNATURES CONTINUED ON NEXT PAGE-- - - - - --
Page 7 of 8
CANTON TOWNSHIP, ORION TOWNSHIP,
BY: BY:
ITS: ITS:
ATTEST:
ITS:
ATTEST:
ITS:
CANTON UNION SCHOOL DISTRCIT #66,
ITS:
ATTEST:
ITS:
VILLAGE OF BANNER, ILLINOIS
BY:
ITS:
Page 8 of 8
14. Execution of Agreement
This agreement shall be executed in the form of nine (9) 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,
BY:
ITS:
ATTEST:
ITS:
CANTON PARK DISTRICT,
BY:
ITS:
ATTEST:
ITS:
BANNER TOWNSHIP,
BY:
ITS:
ATTEST:
ITS:
COUNTY OF FULTON,
BY:
ITS:
ATTEST:
ITS:
SPOON RIVER COLLEGE,
BY:
ITS:
ATTEST:
ITS:
BUCKHEART TOWNSHIP,
BY:
ITS:
ATTEST:
ITS:
-- - - - - -- SIGNATURES CONTINUED ON NEXT PAGE-- - - - - --
Page 7 of 8
14. Execution of Agreement
This agreement shall be executed in the form of nine (9) 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,
BY:
ITS:
ATTEST:
ITS:
CANTON PARK DISTRICT,
BY:
ITS:
ATTEST:
ITS:
BANNER TOWNSHIP,
BY:
ITS:
ATTEST:
ITS:
COUNTY OF FULTON,
BY:
ITS:
ATTEST:
ITS:
SPOON RIVER COLLEGE,
BY:
ITS:
ATTEST:
ITS:
BUCK14EART TOWNSHIP,
B<� i� -��C-- J'
ITS: S'ctYO e ,e 0 • S U o—
ATTEST:C��
ITS:
-- - - - - -- SIGNATURES CONTINUED ON NEXT PAGE-- - - - - --
Page 8 of 9
CANTON TOWNSHIP,
ITS:
ATTEST:
ITS:
ORION TOWNSHIP,
ITS:
ATTEST:
ITS:
CANTON UNION SCHOOL DISTRCIT #66,
•
ITS:
ATTEST:
ITS:
VILL , E LLINOIS
A- Q
BY:
Page 8 of 8
CANTON TOWNSHIP, ORION TOWNSHIP,
BY: BY:
ITS: ITS:
ATTEST: ATTEST:
ITS: ITS: '7wrvsN,e T�Nsr' =.Cad
CANTON UNIONS SCHOOL DISTRCIT #66,
BY:
ITS:
ATTEST:
ITS:
Page 8 of 8
\1s
CANTON TOWNSHIP,
M)
9
BY: /`✓ I ?
ITS: c c....2
bi
ATTEST: C L. J J:l C. r�n,t
ITS: ('¢'�� t t.
ORION TOWNSHIP,
BY:
ITS:
ATTEST:
ITS:
CANTON UNIONS SCHOOL DISTRCIT 466,
BY:
ITS:
ATTEST:
ITS:
Page 9 of 9
14. Execution ofAgreement
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,
BY:
ITS:
ATTEST:
ITS:
CANTON PARK DISTRICT,
COUNTY OF FULTON,
ITS:
ATTEST: -&w
ITS:
SPOON RIVER COLLEGE,
BY:
BY:
ITS:
ITS:
ATTEST:
ATTEST:
ITS:
ITS:
BANNER TOWNSHIP,
BUCKHEART TOWNSHIP,
BY:
BY:
ITS:
ITS:
ATTEST:
ATTEST:
ITS:
ITS:
-- - - - - -- SIGNATURES CONTINUED ON NEXT PAGE-- - - - - --
Page 7 of 8