Loading...
2020-08-17 - Ordinance 2020-060 - THIRD AMENDMENT TO THE AREEMENT BY AND BETWEEN THE VILLAGE OF BUFFALO GROVE AND EDWARD HINES LUMBER CO. AT 1000 CORPORATE GROVE DRIVE (3) 8.11.20 ORDINANCE NO. 2020 - 060 THIRD AMENDMENT TO THE AGREEMENT BY AND BETWEEN THE VILLAGE OF BUFFALO GROVE AND EDWARD HINES LUMBER CO. AT 1000 CORPORATE GROVE DRIVE WHEREAS, the Village of Buffalo Grove, hereinafter referred to as "Village" is a Home Rule Unit by virtue of the Illinois Constitution of 1970; and, WHEREAS, Edward Hines Lumber Co., an Illinois corporation, hereinafter referred to as "Hines", currently conducts its business at the property commonly known as 1000 Corporate Grove Drive, Buffalo Grove, Illinois; and WHEREAS, the Village and Hines entered into an Agreement dated November 20, 2000 concerning Municipal Sales Tax (hereinafter referred to as the "Agreement"), which Agreement set forth the terms of the rebate of the Municipal Sales Tax revenues; and WHEREAS, the Village and Hines entered into an Amendment to Agreement dated March 3, 2003 (the "First Amendment"); and WHEREAS, the Village and Hines entered into an Amendment to Agreement dated July 28, 2009 (the "Second Amendment"), which is set to expire on November 1, 2020; and WHEREAS,both Hines and the Village are desirous to extend the Agreement for an additional 20 years, in accordance to the terms and conditions outlined in the Third Amendment attached as Exhibit"A". NOW THEREFORE BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF BUFFALO GROVE, COOK AND LAKE COUNTIES,ILLINOIS: Section 1. The foregoing Whereas clauses are hereby incorporated herein. Section 2. The Village President and Village Clerk are hereby authorized to execute the Third Amendment to the Agreement between the Village of Buffalo Grove and Edward Hines Lumber, Co., a copy of which is attached hereto as Exhibit"A". Section 3. This Ordinance shall be in full force and effect from and after its passage, approval and publication.This Ordinance may be published in pamphlet form.This Ordinance shall not be codified. AYES: 6—Stein Ottenheimer,Weidenfeld Johnson Smith Pike NAYES: 0-None ABSENT: 0-None PASSED August 17,2020 APPROVED August 17,2020 APPROVED: Beverly Sussmanowflage President ATTEST: Janet,�irauian, Village Clerk EXHIBIT A Third Amendment to the Agreement By and Between the Village of Buffalo Grove and Edward Hines Lumber Co. at 1000 Corporate Grove Drive August 11, 2020 Exhibit "A" AMENDMENT NO. 3 TO AGREEMENT This Amendment No. 3 to Agreement is made and entered into the 1-7f day of August, 2020 by and between the Village of Buffalo Grove, an Illinois Municipal Corporation, hereinafter referred to as the "Village" and Edward Hines Lumber Co., an Illinois corporation, hereinafter referred to as "Hines", and Whereas, the Village and Hines have entered into an Agreement dated November 20,2000 concerning Municipal Sales Tax (hereinafter referred to as the "Agreement"), Whereas, the Village and Hines entered into an Amendment to Agreement dated March 3, 2003 (the"First Amendment"), Whereas, the Village and Hines entered into an Amendment to Agreement dated July 28, 2009(the"Second Amendment"), Now, Therefore, in consideration of the mutual covenants and promises set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties, the Village and Hines agree that Section 3 of the Agreement (as amended by the First Amendment and the Second Amendment), Section 6 of the Agreement, and Section 8 of the Agreement (as amended by the First Amendment and the Second Amendment) are amended and restated to read as follows, 3. Sales Tax Payment: The Village agrees, warrants and guarantees to pay Hines Municipal Sales Tax generated by Hines to be calculated as follows: Beginning in November 2020 and throughout the Term, as defined herein, the Village and Hines shall distribute on a monthly basis the Municipal Sales Tax resulting from taxable Credit Sales at the Property and received by the Village in the following amounts: 60% of the total Municipal Sales Tax to Hines and 40% of the total Municipal Sales Tax to the Village. 6. Creation and Approval of Single Order-Acceptance Point: E. The parties recognize that the State of Illinois has expanded its requirement of the "single-order acceptance point" in the sourcing of retailers' occupation tax as described in 86 111. Admin. Reg. 270.115 effective June 25, 2014. 86 Ill. Admin. Reg. 270.115(c)(2) provides in relevant part that "[a] retailer engaging in three or more primary selling activities in one location in the State after a particular sale shall remit the retailers' occupation tax imposed by the taxing bodies with authority to impose retailers' occupation tax on those engaged in the business of selling in that location." 86 Ill. Admin. Reg. 270.115(c)(2). F. Hines represents that its sales attributable to the Village meet the requirements of 86 Ill. Admin. Reg. 270.115 as such sales have at least three primary sales tax sourcing factors located in the Village. Such factors include: (1) the location of Hines' headquarters; (2)the location where payment is tendered and received or from which invoices are issued with respect to each sale; and (3) the location where Hines takes action that binds it to the sale by order acceptance of purchase orders. G. Hines represents that sales attributable to the Village do not have any other Illinois locations that have more than two primary factors described in 86 Ill. Admin. Reg. 270.115. H. Hines represents that during the term of the Agreement,it will have at least three factors under 86 Ill. Admin. Reg. 270.115 in the Village on sales attributable to the Village. Hines represents that it will immediately inform the Village if there is any change to its business operations which impact the primary factors attributable to sales reported to be in the Village to allow the Village to determine the validity of the Agreement pursuant to 86 Ill. Admin. Reg. 270.115. However, this subsection does not relieve Hines from its obligation to determine that it alone is responsible for maintaining the proper sourcing of sales reported to the State of Illinois as occurring in the Village. 8. Term of Agreement: A.This Agreement shall be in full force and effect for a term of twenty(20)years("Term"), starting on November 1, 2020, provided the Village's obligation to make any payments pursuant to this Agreement, shall survive until fully discharged. B. During the Term,Hines shall not make any changes to its operations in the Village with regards to its Credit Sales which would change the location of such sales to a location outside of the Village. If Hines makes such a change to its operations, the Village may terminate this Agreement upon prior written notice to Hines. C. If the State of Illinois changes its sourcing methodology for retailers' occupation tax and Credit Sales made by Hines are no longer allocated to the Village, the Village may terminate this Agreement upon prior written notice to Hines. [SIGNATURES APPEAR ON THE NEXT PAGE] In Witness, hereof, the parties have executed this Amendment to Agreement as of the date first above written. Village of Buffalo Grove Village Preside Attest: Villag erk Edward Hines Lumber Co. V'ce President- O Attest: r Title:�� �;�� �5}