2023-09-18 - Ordinance 2023-118 - APPROVING A SECOND AMENDMENT TO THE FIRST AMENDED AND RESTATED ECONOMIC INCENTIVE AGREEMENT BY AND BETWEEN THE VILLAGE OF BUFFALO GROVE AND LAB DEVELOPMENT, LLC (D.B.A. CONNEXION) ORDINANCE NO. 2023-118
AN ORDINANCE APPROVING A SECOND AMENDMENT TO THE FIRST AMENDED AND RESTATED
ECONOMIC INCENTIVE AGREEMENT BY AND BETWEEN THE VILLAGE OF BUFFALO GROVE AND LAB
DEVELOPMENT, LLC(D.B.A. CONNEXION, DISTRIBUTOR OF ELECTRICAL EQUIPMENT AND SUPPLIES
AND CONNEXION ENERGYSERVICES)
WHEREAS, the Village of Buffalo Grove is a Home Rule Unit by virtue of the Illinois
Constitution of 1970; and,
WHEREAS, Connexion currently conducts its business at the property commonly known as 1700
Leider Lane, Buffalo Grove, Illinois;and
WHEREAS,the Village and Connexion entered into an "Economic Incentive Agreement By and
Between the Village of Buffalo Grove and LAB Development, LLC," dated March 21, 2011 (the "Original
Agreement"), which Original Agreement set forth the terms of the rebate of the sales tax revenues; and
WHEREAS,subsequent to execution of the Original Agreement, the Village and Connexion agreed
to modify the structure and terms of the Original Agreement and enter into the First Amended and
Restated Economic Incentive Agreement (the "Restated Agreement") as approved by Village Ordinance
No. 2015-71, in consideration of their expansion of operations into additional space at 1700 Leider Lane
in Buffalo Grove, Illinois hereinafter referred to as the "Premises"; and
WHEREAS, the Village and Connexion entered into a First Amendment to the First Amended and
Restated Economic Incentive Agreement (the "First Amendment") extending the Restated Agreement to
June 30,2024 and increasing the maximum incentive amount to two-million six-hundred thousand dollars
($2,600,000.00), as approved by Village Ordinance No. 2016-032; and
WHEREAS, Connexion has finalized a lease extension and expansion on the Premises for a term
to run through June 30,2029 or 5-years longer than they had originally projected in the First Amendment;
and �
WHEREAS,Connexion has requested a second amendment to the Restated Agreement for 5-years
of additional revenue sharing along with removing the maximum incentive amount and amending Section
3,Connexion's Obligations,Section 4, Municipal Sales tax Payment, and Section 7 Term, as outlined in the
Second Amendment; and
WHEREAS, the Village and Connexion now desire to further amend the Restated Agreement and
First Amendment in order to align their respective responsibilities with the modified terms; and
WHEREAS, the Village has determined it is in the public interest to further amend the Restated
Agreement and First Amendment whereby extending the terms by 5-years, removing the maximum
incentive amount and further modifying the terms of Section 2, Section 3, Section 4 and Section 7 of the
Restated Agreement and First Amendment, pursuant to the terms and conditions contained in the Second
Amendment (Second Amendment") attached as Exhibit A.
NOW THEREFORE BE IT ORDAINED BY THE PRESIDENTAND BOARD OFTRUSTEES OF THE VILLAGE
OF BUFFALO GROVE,COOK AND LAKE COUNTIES,ILLINOIS:
Section 1. The foregoing Whereas clauses are hereby incorporated herein.
Section2. TheVillagePresidentandVillageClerkareherebyauthorizedtoexecutetheSecondAmendment
to the First Amended and Restated Economic Incentive Agreement between the Village of Buffalo Grove
and LAB Development, LLC. (d.b.a. Connexion, Distributor of Electrical Equipment and Supplies and
Connexion EnergyServices),a copyofwhich is attached hereto as Exhibit "A", subject to the final review
and approval of the Village Attorney.
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: 5—Johnson, Cesario,Ottenheimer,Stein,Weidenfeld
NAYES: 0- None
ABSTAIN: 1—Pike
ABSENT: 0—None
PASSED: September 18, 2023
APPROVED: September 18, 2023
PUBLISHED: September 19, 2023
ATTEST: APPROVE :
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Janet . ' bian,Village Clerk Eric N. Smith,Villa e President
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EXHIBIT A
Second Amendment to the First Amended and Restated Economic Incentive Agreement By and
Between the Village of Buffalo Grove and LAB Development, LLC.
(d.b.a. Connexion, Distributor of Electrical Equipment and Supplies and Connexion Energy Services)
SECOND AMENDMENT TO THE F1RST AMENDED AND RESTATED ECONOMIC INCEIVTIVE AGREEMENT
BY AND BETWEElV
THE VfLLQGf OF BUFFALO GROVE
ANQ
LAB DEVELORMENT,lE.C.
{d.b.a.Connexion,Distrihutor of Electricai Equipment and Supplies and
Connexion Energy Servicesj
This Second Amendment to the First Amended ancE Restated Economic Incentive Agreement is
made and entered into as of the�day of September, 2023, by and between the Village of Buffalo
Grove,an Illinois fiome rule municipai corporation("Vitlage"f and LAB Development,LLC,a Illinois limited
Iiabiiity company, d.b.a. Connexion, Distributor of Electrical Equipment and Supplies and Connexion
Energy Services("Connexion").
WHEREAS,the Village and Connexion entered into an "Economic Incentive Agreement By and
Between the Vif{age of Suffalo Grove and LAB Deuelopment, LLC," dated March 21,2011 {the "Original
Agreement"},which Origirtal Agreement set forth the terms of the rebate of the sales tax revenues;and
WHEREAS,subsequent to execution of the Original Agreement,the Village and Connexion agreed
to modify the structure and terms of the Originai Agreement and enter into the First Amended and
Restated Ecanomic tncentive Agreement {the "itestated AgreemenY'} as approved by Viltage Ordinance
Na.2015-71,in consideration of their expansion of operatians into adcEi#ionai space at 1700 leider Lane
in Buffalo Grove,Iflinois hereinafter referred to as the"Premises";and
WFEEREAS,the Village and Connexion entered into a First Amendment to the First Amended and
Restated Economic lncentive Agreement(the"First Amendrrzen#"}extending the Restated Agreement to
June 30,2024 and increasing the maximum incentive a►nount to two-million six-hundred thousand dollars
�$2,600,00O.00y,as approved by Viliage Ordinance No. 2016-03Z;and
WHEREAS,Connexion is negotiating a lease extension and expansion on the Premises for a term
to run through June 30,20Z9 or 5-years longer than they had originalty projected in the First Amendment;
ancf
WNEREAS,Connexion has requested a second amendment to the Restated Agreement for 5-years
of additiona{revenue sharing atong with removing the maximum incentive amount and amending Section
3,Connexion's Obligations,Section 4,Municipal Sales tax Payment,and Section 7 Term,as outlined in this
Second Amendment;and
WHEREAS,t{�e Village and Connexian now desire to further amend the Restated Agreement and
First Amendment in order to align tt►eir respective responsibilities with the madifiecf terms;and
WHEREAS, the Village has determined it is in the public interest to further amend the Restated
Agreement and First Amendment whereby extending the terms by 5-years, removing the maximum
incentive amount and further mocfifying the terms of Section 2,Section 3,Section 4 and Section 7 of the
Restated Agreement and First Amendment,pursuant to the terms and conditions contained in this Second
Amendment�Second Amendment").
NOW THEREFORE,in consideration of the promises and mutual covenants contained herein,and
pursuant to the Village's home rule powers under Section 6,Artic[e VIl of the 1970 Constitution of the
State of Illinois,the Village and Devetoper hereby agree to further amend the Restated Agreement and
First Amendment by modifying,replacing and adding the appropriate sections as set forth below:
SECTI�N 1.INCORPORATION OF RECiTALS
7he above recitals and the defined terms contained therein are an integral part of the Restated
Agreement,the First Amendment and this Second Agreement and are incorporateci by reference into this
Second Amendment.This Second Amendment shail be interpreted in light of such recitals.
SECTION 2. AMENDMENTS TO THE RES3ATED AGREEMENT
The Village and Connexion hereby agree to amend the Restated Agreement and First Amendment by
modifying,replacing anct adding the appropriate sections as set forth t�elow:
I. Sectian 2, Rules of Construction and Definitions, Subsection B. 16, Sales Tax Year, of the First
Agreernent is hereby amended to read as follows:
16. Sales Tax Year. The period of time commencing on the Commencement
Date of January 1,2016 and ending an the cfate that is one year after the Commencement
Date and each of the thirteen and one-half(13.5j succeeding one-year periods thereafter
ending June 30,2029.
II. Section 3, Connexion's Obligations, Subsections A, Lease Extension, B, Lease Expansion and C,
Failure to Extend and Expand, af the Restated Agreement and First Amendment are hereby
amended to read as follaws:
A. lease Extension. Cannexion shall extend their current lease for their
existing space on the Premises for a term of nat less than thirteen and one-half(13.5)
years{lune 30,2029)from the Commencement Date ofJanuary 1,2016.
B. Lease Expansion.Connexion shall enter inta a lease for up to a total area
of one-hundred twenty-four thousand {124,OQ0)square feet on the Premises for a term
ending not less than June 30,2029.
C. Failure to Extend and Exqand.In the event Connexion is unable to e�end
their current lease or not lease the additional space an the Premises by January 1,2424,
the Village shall have no ob[igation whatsoever to perform any of the MunicipaE Sales Tax
Payments set forth in Section 4 of this Secand Amendment, provided, however, upon a
written request by Connexion,this provision may be extended by the Village Manager to
March 1,2024
III. Section 4, Municipal Sales Tax Payment, Subsection A. 9 of the Restated Agreement and First
Amendment is hereby amended to read as follows:
9. For the ninth through thirteenth Sales Tax Year(.Sanuary 1,2024
through December 31, 2028), fifty percent (50%) of that year's Incremental
Municipal Sales Tax abave the base Municipal Sales Tax to the Village of
$162,207.00.
IV. Section 4, Municipai Sales Tax Payment, Subsection A. of the Restated Agreement and First
Amendment is hereby amended to add the following:
10. For the fourteenth Sales Tax Year{.ianuary 1,2029,through June
30,2029),fifty percent{50%}of that year's portian af the Incremental Municipal
Sales 7ax�received from January 1,2029 through June 30,2029},above the base
Municipal Sales Tax to the Viftage of$81,103.50.
11. ln the event the Village receives Municipal Sales Tax greater than
six-hundred thousand dotlars{$600,000.00) in a Sales Tax Year during the ninth
through fourteenth Sales Tax Year {3anuary 1, 2024 through June 30, 2029},
�onnexion shall receive sixty-five percent �659�0} of that yea�'s portion of the
Incremental Municipa[ Sales Tax above six-hundred #housand doltars
{��oo,oao.00}.
V. Section 4, Municipai Sales Tax Payment, Subsectian A. of the Resta#ed Agreement and First
Amendment is hereby amended to read as follows:
C. The Village shall continue the Municipal Sales Tax Payments for thirteen
and one-half(13.5j years{�une 30,2024}through the terrrt of this Amended Agreement.
VI. Section 7, Term, o#the Restated Agreement and First Amendment is hereby amended in its
entirety to read as follows:
This Second Amendment shall be in full force and efFect from and after the date
of its execution untii June 3d,2029.
SEC710N 3.RESTATED AGREEMENi'
!n all other respects, ather than modified herein, the terms of the Restated Agreement and First
Amendment shat[remain the same and in full farce and effect.
IN WITNE55 WHEREOF, the parties have caused this Agreement to be executed by their duly
autharized represen#atives as of the date first above written.
[Signatures on the Next PageJ
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ACKN�WlEDGEMENT
STATE OF ILLI1VOfS )
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COUNTY OF LAKE )
, ,s;� �=� This instrument was acknowledged before me on o?���tfb�Gr,2023 by Eric Smith,the
;.�°Village President af the VI!lAGE OF BUF�ALO GROVE,an Illinois home rule municipa!corparation,and by
;,,�lanet Sirabian,the Village Clerk of said municipal corporation.
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SEAL: — v
My Commissian expires:
D��' �� �Z`f JESSI R WN
NOTARY PUBLIC,STATE OF ILLINOIS
My Cammission�xpires Oct.16,2024
ACKNOWLEDGEMENT
STATE OF ILLlNOIS )
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C�UNTY OF LAKE }
This instrument was acknowledged before me on JC' l Za23 by
t� S�(iy�nd y.P �J�CIt�4LSof LAB DEVELOPMEN'�, LLC., a lllinois limited liability
company.
OFFlGlAL SEAL Signatur Notary
TyERfSA J VANCE�A�EY
NOURY PU�lC�8?ATE GF ILL1N01S
SEAL: ltyt�rt�ailtlDnEx�t�17RT ,
My Commission expires: ����� �-
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