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Planning, Building & Zoning Committee

Regular Meeting

Hoffman Estates, IL · December 9, 2024

AgendaPacketMinutes

Minutes

Village of Hoffman Estates PLANNING, BUILDING & ZONING COMMITTEE MEETING MINUTES December 9, 2024 1. ROLL CALL Members in Attendance: Gary Stanton, Chair Karen Arnet, Vice-Chair Patrick Kinnane, Trustee Karen Mills, Trustee Anna Newell, Trustee Mayor William D. McLeod Members Absent: Gary Pilafas, Trustee Management Team Members in Attendance: Eric Palm, Village Manager Dan O’Malley, Deputy Village Manager Arthur Janura, Corporation Counsel Jon Pape, Assistant Village Manager Patrick Seger, Director of HRM Alan Wenderski, Director of Engineering Kevin Kramer, Director of Econ. Dev. Sonia Zala, Senior Trans. Engineer Kasia Cawley, Police Chief Alan Wax, Fire Chief Monica Saavedra, Director of HHS Joe Nebel, Director of Public Works Darek Raszka, Director of IS Patty Richter, Village Clerk Ben Gibbs, GM, NOW Arena Ken Koop, Risk Manager Jennifer Horn, Dir. Planning and Trans. Ric Signorella, Multimedia Production Mgr. The Planning, Building & Zoning Committee meeting was called to order at 7:32 p.m. 2. APPROVAL OF MINUTES Motion by Trustee Arnet, seconded by Trustee Kinnane, to approve the Planning, Building & Zoning Committee meeting minutes of November 11, 2024. Voice vote taken. All ayes. Motion carried. 3. PUBLIC COMMENT Planning, Building & Zoning Committee -2- December 9, 2024 4. OLD BUSINESS A. Approval of an Ordinance amending Section 8-8-7, Hotels, of Chapter 8, Licenses, of the Hoffman Estates Municipal Code (to be continued to January PB&Z meeting). An item summary sheet from Kevin Kramer and Linda Scheck was presented to Committee. Motion by Trustee Arnet, seconded by Trustee Kinnane, to defer this item to the January Planning, Building & Zoning Committee meeting. Voice vote taken. All ayes. Motion carried. 5. NEW BUSINESS A. Approval of an Employee Leasing Agreement with MGT Impact Solutions, LLC, for Civil Engineer staff services at a rate of $95.16 per hour. An item summary sheet from Al Wenderski and Peter Gugliotta was presented to Committee. Al Wenderski addressed the Committee and reported that the Village has retained the services of an experienced Civil Engineer since 2021 through MGT Impact Solutions. Staff expects to continue the need from January through May 2025 with an average of 15 hours per week. Motion by Trustee Arnet, seconded by Mayor McLeod, to approve an Employee Leasing Agreement with MGT Impact Solutions, LLC for Civil Engineer staff services at a rate of $95.16 per hour. Voice vote taken. All ayes. Motion carried. B. Approval of Lakewood Center TIF Reimbursement Request #4 in an amount of $26,221,583.98. An item summary sheet from Kevin Kramer was presented to Committee. Trustee Stanton requested the total amount paid to date from this TIF fund. Motion by Trustee Arnet, seconded by Trustee Kinnane, to approve the Lakewood Center TIF Reimbursement Request #4 in an amount of $26,221,583.98. Voice vote taken. All ayes. Motion carried. 6. REPORTS (INFORMATION ONLY) A. Department of Development Services monthly report for Planning Division. The Department of Development Services monthly report for Planning Division was received and filed. Planning, Building & Zoning Committee -3- December 9, 2024 B. Department of Development Services monthly report for Code Enforcement Division. The Department of Development Services monthly report for Code Enforcement Division was received and filed. C. Department of Development Services monthly report for Economic Development and Tourism. The Department of Development Services monthly report for Economic Development and Tourism was received and filed. 7. PRESIDENT’S REPORT 8. ITEMS IN REVIEW 9. OTHER 9. ADJOURNMENT Motion by Trustee Arnet, seconded by Trustee Kinnane, to adjourn the meeting at 7:41 pm. Voice vote taken. All ayes. Motion carried. Minutes submitted by: Debbie Schoop, Executive Assistant Date

Agenda

AGENDA Planning, Building & Zoning Committee Regular Meeting Village Hall 1900 Hassell Road, Hoffman Estates, IL 60169 December 9, 2024 Council Chambers Immediately following Transportation & Road Improvement Committee 1. CALL TO ORDER/ROLL CALL 2. APPROVAL OF MINUTES A. Planning, Building & Zoning Committee 11-11-2024 3. PUBLIC COMMENT 4. OLD BUSINESS A. Approval of an Ordinance amending Section 8-8-7, Hotels, of Chapter 8, Licenses, of the Hoffman Estates Municipal Code (to be continued to January PB&Z meeting) 5. NEW BUSINESS A. Approval of an Employee Leasing Agreement with MGT Impact Solutions, LLC, for Civil Engineer staff services at a rate of $95.16 per hour B. Approval of Lakewood Center TIF Reimbursement Request #4 in the amount of $26,221,583.98 6. REPORTS A. Planning Division Monthly Report B. Code Enforcement Division Monthly Report C. Economic Development and Tourism Monthly Report 7. PRESIDENT'S REPORT 8. ITEMS IN REVIEW 9. OTHER 10. ADJOURNMENT Further details and information can be found in the agenda packet attached hereto and incorporated herein and can also be viewed online at www.hoffmanestates.org and/or in person in the Village Clerk's office. The Village of Hoffman Estates complies with the Americans with Disabilities Act (ADA). For accessibility assistance, call the Page 1 December 9, 2024 Village of Hoffman Estates Planning, Building & Zoning Committee ADA Coordinator at 847/882-9100. Page 2

Packet

AGENDA Planning, Building & Zoning Committee Regular Meeting Village Hall 1900 Hassell Road, Hoffman Estates, IL 60169 December 9, 2024 Council Chambers Immediately following Transportation & Road Improvement Committee 1. CALL TO ORDER/ROLL CALL 2. APPROVAL OF MINUTES A. Planning, Building & Zoning Committee 11-11-2024 3. PUBLIC COMMENT 4. OLD BUSINESS A. Approval of an Ordinance amending Section 8-8-7, Hotels, of Chapter 8, Licenses, of the Hoffman Estates Municipal Code (to be continued to January PB&Z meeting) 5. NEW BUSINESS A. Approval of an Employee Leasing Agreement with MGT Impact Solutions, LLC, for Civil Engineer staff services at a rate of $95.16 per hour B. Approval of Lakewood Center TIF Reimbursement Request #4 in the amount of $26,221,583.98 6. REPORTS A. Planning Division Monthly Report B. Code Enforcement Division Monthly Report C. Economic Development and Tourism Monthly Report 7. PRESIDENT'S REPORT 8. ITEMS IN REVIEW 9. OTHER 10. ADJOURNMENT Further details and information can be found in the agenda packet attached hereto and incorporated herein and can also be viewed online at www.hoffmanestates.org and/or in person in the Village Clerk's office. The Village of Hoffman Estates complies with the Americans with Disabilities Act (ADA). For accessibility assistance, call the Page 1 Page 1 of 47 December 9, 2024 Village of Hoffman Estates Planning, Building & Zoning Committee ADA Coordinator at 847/882-9100. Page 2 Page 2 of 47 Village of Hoffman Estates DRAFT PLANNING, BUILDING & ZONING COMMITTEE MEETING MINUTES November 11, 2024 1. ROLL CALL Members in Attendance: Gary Stanton, Chair Karen Arnet, Vice-Chair Patrick Kinnane, Trustee Karen Mills, Trustee Anna Newell, Trustee Gary Pilafas, Trustee Mayor William D. McLeod Management Team Members in Attendance: Eric Palm, Village Manager Dan O’Malley, Deputy Village Manager Arthur Janura, Corporation Counsel Jon Pape, Assistant Village Manager Patrick Seger, Director of HRM Alan Wenderski, Director of Engineering Sanyo Kapur, Dir. of Bldg. & Code Enf. Bryan Ackerlund, Asst. Director of PW Jennifer Horn, Dir. Planning and Trans. Craig Kuehne, NOW Arena Ric Signorella, Multimedia Production Mgr. The Planning, Building & Zoning Committee meeting was called to order at 7:00 p.m. 2. APPROVAL OF MINUTES Motion by Trustee Kinnane, seconded by Trustee Mills, to approve the Planning, Building & Zoning Committee meeting minutes of October 14, 2024. Voice vote taken. All ayes. Motion carried. 3. PUBLIC COMMENT 4. NEW BUSINESS A. Approval of one-year extension of preliminary and final site plan approval for Belle Tire located at 1165 W. Higgins Road. An item summary sheet from James Donahue was presented to Committee. A representative with Belle Tire ownership, Barnes Development Company, addressed the Committee and stated that the previous property owner had outstanding issues to resolve with MWRD which impact the Belle Tire timeline. The issues have been resolved but given the challenges with winter construction, the owners are seeking a one-year extension to secure the building and site permits for the project. Construction is anticipated to begin in the spring. Page 3 of 47 Planning, Building & Zoning Committee -2- November 11, 2024 Trustee Stanton asked that the sign be taken down. Trustee Mills indicated that this request should be for one time only. Motion by Trustee Pilafas, seconded by Trustee Mills to approve one-year extension of preliminary and final site plan approval for Belle Tire located at 1165 W. Higgins Road. Motion by Trustee Pilafas, seconded by Trustee Mills, to amend motion to include that this request is for a one-time extension only. Voice vote taken. All ayes. Motion carried. Motion by Trustee Pilafas, seconded by Trustee Mills to approve one-year extension of preliminary and final site plan approval for Belle Tire located at 1165 W. Higgins Road and that this is for a one-time extension only. Voice vote taken. All ayes. Motion carried. B. Authorization to award a contract to Thompson Elevator Inspection Service, Inc., Mount Prospect, IL, for elevator inspection and plan review services for a three-year term ending December 1, 2027. Sanyo Kapur addressed the Committee and reported that a 3-year extension of the current contract was approved in 2021. RFPs were issued in September of this year to obtain options for a new, 3-year fixed-term contract. There are currently 276 elevators in the Village that are inspected annually and the Village has a responsibility to ensure that its businesses are receiving quality elevator inspections at reasonable rates. Motion by Trustee Pilafas, seconded by Mayor McLeod, to award a contract to Thompson Elevator Inspection Service, Inc., Mount Prospect, IL, for elevator inspection and plan review services for a three-year term ending December 1, 2027. Voice vote taken. All ayes. Motion carried. C. Approval of an Ordinance amending Section 8-8-7, Hotels, of Chapter 8, Licenses, of the Hoffman Estates Municipal Code. Eric Palm advised that Corporation Counsel has requested this item be deferred until next month in order to have more time to review. Motion by Trustee Pilafas, seconded by Trustee Kinnane, to defer this item until December 9, 2024. Voice vote taken. All ayes. Motion carried. D. Authorization to: a. Award a contract to Construction Inc. of Lombard, IL for the Village Green Concessions & Restrooms project in an amount not to exceed $3,899,000; and b. Grant the Village Manager authority to approve change orders, as needed, in an amount not to exceed $30,000. Item summary sheet from Bryan Ackerlund and Dan O’Malley was presented to Committee. Page 4 of 47 Planning, Building & Zoning Committee -3- November 11, 2024 Bryan Ackerlund addressed the Committee and reported that seven (7) bids for the project were opened in October. The project architect, Tria, conducted a full background check of all bidders. Construction will commence in September 2025 after the conclusion of the Platzkonzert and is anticipated to last 7-8 months with a substantial completion date of May 1, 2026. Motion by Trustee Pilafas, seconded by Trustee Kinnane to award a contract to Construction Inc. of Lombard, IL for the Village Green Concessions & Restrooms project in an amount not to exceed $3,899,000 and grant the Village Manager authority to approve change orders, as needed, in an amount not to exceed $30,000. Voice vote taken. All ayes. Motion carried. 5. REPORTS (INFORMATION ONLY) A. Department of Development Services monthly report for Planning Division. The Department of Development Services monthly report for Planning Division was received and filed. B. Department of Development Services monthly report for Code Enforcement Division. The Department of Development Services monthly report for Code Enforcement Division was received and filed. C. Department of Development Services monthly report for Economic Development and Tourism. The Department of Development Services monthly report for Economic Development and Tourism was received and filed. 6. PRESIDENT’S REPORT Mayor McLeod advised that he attended a NWMC Conference meeting, the Finance Budget Committee meeting, a cram the cruiser event at the Police Department as well as Veterans Day ceremonies at St. Hubert’s, the Police Department, and Eden Vista. 7. ITEMS IN REVIEW 8. OTHER 9. ADJOURNMENT Motion by Trustee Arnet, seconded by Trustee Kinnane, to adjourn the meeting at 7:18 pm. Voice vote taken. All ayes. Motion carried. Minutes submitted by: Debbie Schoop, Executive Assistant Date Page 5 of 47 AGENDA ITEM REPORT Planning, Building & Zoning Committee December 9, 2024 ITEM 4A REQUEST: Approval of an Ordinance amending Section 8-8-7, Hotels, of Chapter 8, Licenses, of the Hoffman Estates Municipal Code (to be continued to January PB&Z meeting) FROM: Kevin Kramer, Director of Economic Development Linda Scheck, Director of Tourism & Business Retention ITEM TYPE: Ordinance - Committee REQUEST SUMMARY Each year, Economic Development, Tourism, Police Department, and General Government staff meet with owners and general managers of the nine hotels in Hoffman Estates. During the recent meeting, the hotel community shared that they have been challenged with the residential usage of their properties by guests who stay thirty days or more. Any guest who lives in a room thirty or more days consecutively becomes a resident of that location. This trend began during 2020 and has continued since. To prevent future occurrences of residential occupancy, the proposed amendment to Section 8-8-7 of the Municipal Code would prohibit any person staying at a hotel, motel, or extended-stay hotel longer than twenty-nine days. One hotel employee would be allowed to reside on site to serve guests twenty-four hours a day. All hotels must comply with this requirement within forty-five days of passing this ordinance. The hotel community who attended the last check-in meeting is supportive of this change and feels it will assist them in preventing future residential occupancy. Corporation counsel has not completed its review of this item, so Staff is seeking to move this to the January committee meeting. FINANCIAL IMPACT N/A RECOMMENDATION Recommend continuation to the January Planning, Building & Zoning Committee meeting. ATTACHMENTS 1. Ordinance amending Sec. 8-8-7-Hotels 29 day limit Page 1 of 1 Page 6 of 47 ORDINANCE NO. ______________ - 2024 VILLAGE OF HOFFMAN ESTATES AN ORDINANCE AMENDING SECTION 8-8-7, HOTELS, OF CHAPTER 8, LICENSES, OF THE HOFFMAN ESTATES MUNICIPAL CODE WHEREAS, the Village of Hoffman Estates, as a home rule unit of local government as provided by Article VII, Section 6 of the Illinois Constitution of 1970, has the authority to exercise any power and perform any function pertaining to its government and affairs, except as limited by Article VII, Section 6 of the Illinois Constitution of 1970; and WHEREAS, the Village of Hoffman Estates desires to enact certain regulations regarding hotels; and WHEREAS, the Village of Hoffman Estates finds it is the best interests of the Village to amend the Village’s Municipal Code to provide for same. NOW, THEREFORE, BE IT ORDAINED by the President and Board of Trustees of the Village of Hoffman Estates, Cook County, Illinois, as follows: Section 1: That Section 8-8-7, HOTELS, of Chapter 8, LICENSES, of the Hoffman Estates Municipal Code, is hereby amended to read as follows: Section 8-8-7. HOTELS A. DEFINITIONS - Unless the context otherwise requires, the following terms as used in this Section shall be construed according to the definitions given below: “Hotel” - the term “hotel” when used in this Code shall mean every building, structure or any part thereof used, kept or maintained as or advertised or held out to the public to be an inn, hotel, family hotel, apartment hotel, lodging house, motel, dormitory or other place where sleeping accommodations are furnished or maintained for hire or rent for 20 or more transient persons, whether with or without meals. “Extended Stay Hotel” - the term “extended stay hotel” when used in this Code shall mean a hotel which offers services and facilities designed to appeal to longer-term guests, such as laundry and kitchen facilities, and may quote rates on a weekly or monthly basis. “Guest” - the term “guest” when used in this Code shall mean a person who exercises occupancy or is entitled to occupancy in a hotel by reason of concession, permit, right of access, license or other agreement. “Identification Document” - the term “identification document” when used in this Code shall mean a document that contains the name, date of birth, description and picture of a person issued by a local, state or governmental entity. “Record” - the term “record” when used in this Code shall mean a written documentation of information about a guest. A record may be maintained electronically, in a book or on cards. “Visitor” - the term “visitor” when used in this Code shall mean a person, who is not a guest, who is on the premises of a hotel, motel or extended-stay hotel at the invitation of a guest, but without the express permission of the owner, operator, keeper or proprietor of the hotel, motel or extended-stay hotel. Page 7 of 47 -2- "Group" - the term "group" when used in this Code shall mean a number of individuals assembled together for purposes of a wedding, family event, religious event, or organized competition by which the individuals are participants. B. LICENSE REQUIRED No person shall conduct, keep, manage or operate, or cause to be conducted, managed or operated, a hotel without obtaining a license therefor. Each applicant shall comply with all applicable regulations of the Department of Code Enforcement, Police Department, and Fire Department. C. TRAINING OF EMPLOYEES The owner or proprietor of a hotel, motel, or extended-stay hotel shall take all reasonable steps, including, but not limited to, providing training regarding this section to ensure that the person who checks a person into the hotel complies with provisions of this section. A person who has not been trained shall not be assigned to check persons into the hotel. D. ENTRY DOORS For any hotel, motel, extended-stay hotel permitted for construction after the date of adoption of the ordinance codified in this chapter, any public-facing entry points to the premises must require a magnetic or electronic keycard/locking device for access. Within one hundred eighty (180) days after the effective date of the ordinance codified herein, all public facing entry point doors for any hotel, motel, or extended stay hotel shall have operating automatic closures, key entry and shall remain locked at all times. These requirements are not applicable to entry points that enter directly into the lobby, as long as the lobby is manned by a bona fide employee twenty-four (24) hours a day. E. HOURLY RENTALS No owner, operator, keeper or proprietor of a hotel, motel, or extended-stay hotel shall provide lodging at an hourly rate. F. RENTAL OF ROOMS TO PERSONS UNDER TWENTY-ONE It shall be unlawful for any hotel, motel or extended-stay hotel to rent a room to any individual under the age of twenty-one (21). Exception: A hotel, motel, or extended-stay hotel may rent a room to a person under the age of twenty-one (21) if said individual is part of a group, convention, corporate meeting, pageant or other major contracted booking at the hotel, motel, or extended-stay hotel. G. RESPONSIBILITIES OF ALL HOTELS Every owner, operator, keeper or proprietor of any hotel, motel, or extended-stay hotel shall, without delay, report violations of law to the Hoffman Estates Police Department that were either witnessed or made known to them by an employee, guest, visitor or other person on the premises. Every owner, operator, keeper or proprietor of any hotel, motel, or extended-stay hotel shall, at all times, maintain a manager on duty or on-call capable of assisting, communicating, and cooperating with the police or other law enforcement officials in maintaining the public health, welfare, and safety. Page 8 of 47 -3- All information required to be procured and kept pursuant to this article shall be kept strictly confidential in accordance with state and federal law and shall not be provided to any person except to a federal or state law enforcement officer or to any officer empowered to enforce this article. All information required to be procured and kept pursuant to this article shall be provided to any federal or state law enforcement officers, or local sworn enforcement officer empowered to enforce this article upon demand. Nothing in this requirement shall be construed as giving any such officer any greater right or license to enter a room or invade privacy than the officer shall otherwise possess as a matter of law, probable cause, constitutional law, statutory right, or warrant. Every owner, operator, keeper or proprietor of any hotel, motel, or extended-stay hotel shall keep a record of all rental agreements between the hotel, motel, or extended-stay hotel and all guests and their visitors, and make these records available to the village within a reasonable time upon request. For the purposes of this section, the term “record” shall mean the hotel, motel or extended-stay hotel’s electronic guest registration system which stores guest identifying information. In the event an electronic guest registration system does not exist, a record shall be maintained with the guest and any visitor’s information in a paper record or reservation book. The following information, at a minimum, must be recorded at the time of registration and maintained for a period of no less than one (1) year after the rental agreement’s termination: The full name, phone number, and home address of each overnight guest. If the guest is a tourism company or other business, only the guest shall be required to provide this information, but the total number of people staying under the tourism company or other business shall be provided; The make, type and license number of the guest’s vehicle if the vehicle will be parked on the premises that are under the control of the operator or management; The day, month, year and time of arrival of each guest; The number or other identifying symbol of location of the room rented or assigned each guest; The date that each guest is scheduled to depart; The method of payment for the room; The full name of the person checking in the guest. Every owner, operator, keeper or proprietor of any hotel, motel, or extended-stay hotel shall require each guest to provide proper identification prior to renting a room when registering in person. A record of the provided identification documents shall be kept on file for the duration of the occupancy and for one hundred eighty (180) days thereafter. Page 9 of 47 -4- No person shall procure or provide lodging in any hotel, motel, or extended-stay hotel, or any services therefrom, through misrepresentation or production of false identification, or identification which misrepresents the identity of the person procuring or sharing in such lodging or service. H. OCCUPANCY REQUIREMENTS No operator, owner, keeper or proprietor of any hotel, motel, or extended-stay hotel shall rent or provide a room for any number of persons greater than the sleeping accommodations provided within the particular rental unit or temporary sleeping accommodations provided by the hotel, motel, or extended-stay hotel. No operator, owner, keeper or proprietor, guest, or visitor of any hotel, motel, or extended- stay hotel shall be allowed to congregate within any room or single rental unit a number of persons which is greater than two (2) times the number of persons for whom sleeping accommodations are provided within the single room or rental unit except when temporarily designated as a hospitality suite. I. MAXIMUM STAY LENGTH 1. No hotel, motel, extended-stay hotel located within the Village shall allow any person, other than one designated management employee of the hotel, motel, or extended-stay hotel, to occupy such facility for more than twenty-nine (29) consecutive days. No guest residing for more than twenty-nine (29) consecutive days shall begin a new rental agreement with the hotel, motel, or extended-stay hotel without at least a two-day vacancy between stays. 2. No hotel, motel, or extended-stay hotel located within the Village shall allow any person to occupy such hotel, motel, or extended-stay hotel as his or her permanent residence, and/or to utilize the hotel, motel, or extended-stay hotel address as his or her mailing address. 3. All hotels, motels and extended-stay hotels are required to comply with all applicable provisions of this Code. Any existing hotel, motel, or extended-stay hotel is required to comply with this all applicable provisions of this Code within forty-five (45) days of the effective date of this chapter. J. COMMON AREA AND PARKING ILLUMINATION REQUIREMENTS The open parking area and all areas surrounding any hotel, motel, or extended stay-motel, shall comply with all requirements related to illumination levels set forth in the subdivision and land development section of this Code, within one (1) year of the effective date of this chapter. Within one hundred eighty (180) days of the effective date of this chapter, any hotel, motel, or extended-stay hotel must provide and maintain security in its parking area. This shall include but not be limited to, a live security guard or other security measures such as a complete video surveillance. A video surveillance system (VSS) means a continuous digital surveillance system including cameras, cabling, monitors, and digital view recorders (DVR). Any existing hotel, motel, or extended-stay hotel is required to install VSS within one hundred eighty (180) days of the effective date of this chapter. Any VSS Page 10 of 47 -5- shall be maintained in proper working order at all times and be in continuous operation twenty-four (24) hours a day, seven (7) days a week. The digital images must be retained for no less than twenty-one (21) days. All VSS shall have no less than one (1) camera dedicated to each register or check-out stand, entrance/exit, interior hallways, lobby and parking areas. K. LOITERING AND JUVENILE CURFEW No persons shall loiter in or upon any hotel, motel, or extended-stay hotel parking lot or in or around any building to include breezeways or stairwells without the permission of the owner, operator, keeper or proprietor. Chapter 7 (Offenses and Punishment) Article 2 (Offenses involving children and juveniles) Section 7-2-5 (Curfew) of this Code related to curfew for minors, shall be enforced in the common areas of the hotel, motel, or extended-stay hotel. L. UNLAWFUL OPERATION DECLARED NUISANCE Any hotel, motel, or extended-stay hotel operated, conducted or maintained contrary to the provisions of this article may be declared to be unlawful and a public nuisance. The Village of Hoffman Estates may, in addition, or in lieu of all other remedies, commence actions or proceedings for abatement, removal or enjoinment thereof, in the manner provided by state law and this Code. M. PENALTIES If a person is convicted of a violation of this article, the court or other adjudicative body shall impose a fine of not less than two hundred fifty dollars ($250.00) and not more than one thousand dollars ($1,000.00) for each violation. Page 11 of 47 -6- Section 2: The Village Clerk is hereby authorized to publish this ordinance in pamphlet form. Section 3: This Ordinance shall be in full force and effect immediately from and after its passage and approval. PASSED THIS ________ day of _________________, 2024 VOTE AYE NAY ABSENT ABSTAIN Trustee Karen V. Mills _____ _____ _____ _____ Trustee Anna Newell _____ _____ _____ _____ Trustee Gary J. Pilafas _____ _____ _____ _____ Trustee Gary G. Stanton _____ _____ _____ _____ Trustee Karen Arnet _____ _____ _____ _____ Trustee Patrick Kinnane _____ _____ _____ _____ President William D. McLeod _____ _____ _____ _____ APPROVED THIS ______ DAY OF _______________, 2024 Village President ATTEST: Village Clerk Published in pamphlet form this _______ day of ____________________, 2024. Page 12 of 47 AGENDA ITEM REPORT Planning, Building & Zoning Committee December 9, 2024 ITEM 5A REQUEST: Approval of an Employee Leasing Agreement with MGT Impact Solutions, LLC, for Civil Engineer staff services at a rate of $95.16 per hour FROM: Alan Wenderski, Director of Engineering Peter Gugliotta, Director of Development Services ITEM TYPE: Agreement - Committee REQUEST SUMMARY Since 2021, the Village has retained the services of an experienced Civil Engineer through an annual contract with MGT Impact Solutions, LLC (MGT) - formerly known as GOVTEMPS. Due to continued need, the contract has been extended each year, with the next expiration being January 3, 2025. Having a part-time experienced MGT employee on board the past few years has been critical to meeting a heavy infrastructure workload, as well as assisting with mentoring and training. As of the fall of 2024, the Engineering Division has filled all position vacancies and is now working to reduce dependence on this consultant assistance for daily functions. With the infrastructure workload increasing again in 2025 and several key projects currently underway, the phase-out of this consultant will need to occur over the next several months. However, the Village is able to reduce the average weekly consultant hours from approximately 24 to roughly 15 in early 2025. The same engineer who has been working with the Village since 2021 continues to be available into 2025. A new contract, including an updated Exhibit A, is attached to extend the agreement with MGT for a Civil Engineer. The contract is structured so the temporary staff assistance is done on a contract basis and not as an employee of the Village. The Village will pay MGT on a monthly basis at the hourly rate of $95.16 (previously $87.50), which will cover the employee’s pay plus all MGT's costs. This person will work on average 15 hours per week on a schedule as determined by the Director of the Engineering Division. The term runs from January 6, 2025, through May 30, 2025, with a provision that the agreement will automatically extend on a bi-weekly basis until January 2, 2026, unless either party chooses to terminate. FINANCIAL IMPACT Funding for the cost of this temporary employee contract is included in the formal Village 2025 Budget. Page 1 of 2 Page 13 of 47 RECOMMENDATION Approval of an Employee Leasing Agreement with MGT Impact Solutions, LLC, for Civil Engineer staff services at a rate of $95.16 per hour. ATTACHMENTS 1. Employee Leasing Agreement - January 2025 Page 2 of 2 Page 14 of 47 EMPLOYEE LEASING AGREEMENT THIS EMPLOYEE LEASING AGREEMENT (this "Agreement") is made by MGT Impact Solutions, LLC ("MGT”), and the Village of Hoffman Estates (the "Client"). MGT and the Client can be individually identified as a ("Party") and collectively as the ("Parties"). MGT and the Client agree as follows: SECTION 1 SCOPE OF AGREEMENT Section 1.01. Assigned Employee. The Client will lease certain employees of MGT, and MGT will lease to the Client, the personnel identified in attached Exhibit A, (the "Assigned Employee"). Exhibit A identifies the temporary position and/or assignment (the "Assignment") each Assigned Employee will fill at the Client, and it further identifies the base compensation for each Assigned Employee, as of the effective date of this Agreement. Exhibit A may be modified from time to time by an amended Exhibit A signed by both MGT and the Client. MGT has the sole authority to assign and/or remove the Assigned Employee, provided however, that the Client may request, in writing, that MGT remove or reassign the Assigned Employee which removal or reassignment shall not be unreasonably withheld by MGT. The Parties understand and acknowledge that the Assigned Employee is subject to the Client's day-to-day supervision. Section 1.02. Independent Contractor. MGT is and remains an independent contractor, and not an employee, agent, partner of, or joint venturer with, the Client. MGT has no authority to bind the Client to any commitment, contract, agreement or other obligation without the Client’s express written consent. SECTION 2 SERVICES AND OBLIGATIONS OF MGT AND CLIENT Section 2.01. Payment of Wages. MGT will, to the extent applicable and /or required by law, timely pay the wages and related payroll taxes of the Assigned Employee from MGT’s own account in accordance with federal and Illinois law and MGT’s standard payroll practices. MGT will withhold from such wages all applicable taxes and other deductions elected by the Assigned Employee. The Client acknowledges that MGT may engage a financial entity to maintain its financing and record-keeping services, which may include the payment of wages and related payroll taxes in accordance with this Section 2.01. The Client agrees to cooperate with MGT and any such financial entity to ensure timely payment of wages, related payroll taxes, and any applicable fees pursuant to Section 2.01. As to Assigned Employees, MGT will comply with the Immigration Reform and Control Act of 1986, Title VII of the Civil Rights Act of 1964, as amended, (Title VII), the Americans With Disabilities Act of 1990 (ADA), the Age Discrimination in Employment Act (ADEA), the Equal Pay Act of 1963, the Civil Rights Acts of 1866 and 1871 (42 U.S.C. § 1981), the Family and Medical Leave Act of 1993, the Fair Labor Standards Act of 1938, the National Labor Relations Act, the Employee Retirement Income Security Act (“ERISA”) of 1974, and any other federal, state or local statute, state constitution, ordinance, order, regulation, policy or decision regulating wages and the payment of wages, prohibiting employment discrimination or otherwise establishing or relating to rights of Assigned Employee. Section 2.02. Workers’ Compensation. To the extent required by applicable law, MGT will maintain in effect workers’ compensation coverage covering its Assigned Employee’s work in an Assignment. Any applicable coverage under this Agreement terminates on the Termination Date of this Agreement. It is understood and agreed that the Client shall be under no obligation to reimburse or indemnify MGT for the workers compensation claims of the Assigned Employee(s) and MGT agrees to 1 Leasing Agreement / Rev. 8-2024 Page 15 of 47 not seek any such reimbursement and/or indemnification; provided, however, that, this provision shall not apply and the Client shall be obligated to reimburse and hold MGT harmless for all loss and expense incurred as a result of such workers compensation claims in the event the Client engaged in intentional, reckless or grossly negligent misconduct relating thereto. Section 2.03. Employee Benefits. MGT will provide to Assigned Employee those employee benefits identified in the attached Exhibit B. MGT may amend or terminate any of its employee benefit plans according to their terms. All employee benefits, including severance benefits for Assigned Employee will be included in Fees payable to MGT under Section 3.01 of this Agreement. Section 2.04. Maintenance and Retention of Payroll and Benefit Records. MGT will maintain records of all wages and benefits paid and personnel actions taken by MGT in connection with any of the Assigned Employees. MGT will retain control of such records and make them available for inspection as required by applicable federal, state or local laws. Section 2.05. Other Obligations of MGT. MGT will comply with any federal, state and local law applicable to its Assigned Employee(s). Section 2.06. Direction and Control. The Parties agree and acknowledge that, with relation to the work to be performed by the Assigned Employee for Client hereunder, the Client has the right of direction and control over the Assigned Employee, including matters of discipline, excluding removal or reassignment, as provided for by Section 1.01. The Assigned Employee(s) will be supervised, directly and indirectly, and exclusively with regard thereto by the Client's supervisory and managerial employees and shall be deemed and considered a “public employee” under the Illinois Governmental Employees Tort Immunity Act, 745 ILCS 10/1-101, et seq., and specifically as an agent, volunteer, servant or employee” under Section 1-102 thereof with respect to the work performed for the Client hereunder. Section 2.07. Obligations of the Client. Pursuant to this Agreement the Client covenants, agrees and acknowledges: (a) The Client will provide the Assigned Employee with a suitable workplace, that complies with US Occupational Safety and Health Administration (“OSHA”) statutes and regulations, and all other health and safety laws, regulations, ordinances, directives, and rules applicable to the Assigned Employee and the Assigned Employee’s workplace. The Client agrees to comply, at its expense, with all health and safety directives from MGT’s internal and external loss control specialists, MGT’s workers’ compensation carrier, or any government agency having jurisdiction over the place of work. The Client will provide and ensure use of all functional personal protective equipment as required by any federal, state or local law, regulation, ordinance, directive, or rule or as deemed necessary by MGT’s workers’ compensation carrier. MGT and/or its insurance carriers have the right to inspect the Client’s premises to ensure that the Assigned Employee is not exposed to an unsafe workplace. MGT’s rights under this paragraph do not diminish or alter the Client’s obligations to the Assigned Employee under applicable law, or its obligations to MGT under this Agreement. (b) With respect to the Assigned Employee, the Client will comply with all applicable labor and employment-related laws and regulations, and any other federal, state or local statute, state constitution, ordinance, order, regulation, policy or decision, prohibiting employment discrimination, or otherwise establishing or relating to the terms and conditions of Assigned Employee’s Assignment. 2 Leasing Agreement / Rev. 8-2024 Page 16 of 47 (c) The Client retains the right to exert sufficient direction and control over the Assigned Employee as is necessary to conduct the Client's business and operations, without which, the Client would be unable to conduct its business, operation or to comply with any applicable licensure, regulatory or statutory requirements. (d) The Client cannot remove or reassign the Assigned Employee unless mutually agreed to in writing by MGT and the Client in accordance with Section 1.01 of this Agreement. Client will timely confer with MGT regarding any concern or complaint regarding Assigned Employee’s performance or conduct under this Agreement. (e) The Client will not pay wages, salaries or other forms of direct or indirect compensation, including employee benefits, to Assigned Employee. Client represents that its actions under this Agreement do not violate its obligations it may have under any collective bargaining Agreement. (f) The Client must report to MGT any injury to any Assigned Employee of which it has knowledge within twenty-four (24) hours of acquiring such knowledge. If any Assigned Employee is injured in the course of performing services for the Client, the Client must follow the procedures and practices regarding injury claims and reporting. (g) The Client must report all on the job illnesses, accidents and injuries of the Assigned Employee to MGT within twenty-four (24) hours following notification of said injury by Assigned Employee or Assigned Employee’s representative. SECTION 3 FEES PAYABLE TO MGT Section 3.01. Fees. The Client will pay MGT fees for the services provided under this Agreement as follows: (a) The base compensation as fully identified on Exhibit A, as amended; plus (b) Any employee benefits MGT paid to the Assigned Employee as identified on Exhibit B (if applicable), including, but not limited to, salary; wages; commissions; bonuses; sick pay; workers’ compensation, health and other insurance premiums; payroll, unemployment, FICA and other taxes; vacation pay; overtime pay; severance pay; monthly automobile allowances, and any other compensation or benefits payable under any applicable MGT pension and welfare benefit plan or federal, state or local laws covering the Assigned Employee. Section 3.02. Payment Method. Every two (2) weeks during the term of this Agreement, MGT will invoice in writing the Client for the fees owed under this Agreement. Within thirty (30) days following receipt of such invoice, the Client must pay all invoiced amounts by check, wire transfer or electronic funds transfer to MGT to an account or lockbox as designated on the invoice. Late payments will be subject to all applicable interest payments or service charges provided by state or local law. In addition to charging interest or service charges provided by applicable law, MGT may, upon written notice to Client, suspend performance of services under this Agreement while any amount due is past due and remains unpaid. 3 Leasing Agreement / Rev. 8-2024 Page 17 of 47 SECTION 4 INSURANCE Section 4.01. General and Professional Liability Insurance. (a) The Client must maintain in full force and effect at all times during the term of this Agreement a Comprehensive (or Commercial) General Liability policy and Professional Liability insurance policy or policies (the "Policies") insuring the Client, its officials, and employees, with minimum coverage in the amount of $1,000,000 per occurrence, $3,000,000 aggregate. In the alternative, as applicable, the Client may maintain in full force and effect at all times during the term of this Agreement a self-insured retention (“SIR”) which provides the same minimum coverage limits as set forth above. In the event such SIR exists and applies to this Agreement, the Client agrees to fully discuss the SIR’s parameters with MGT and its relationship to the Policies. At a minimum, the Policies must insure the Client its officials and employees against bodily injury and property damage liability caused by on-premises business operations, completed operations and/or products or professional service and non- owned automobile coverage. The non-owned automobile coverage shall not include the Assigned Employee’s personal vehicle. (b) MGT shall use its best efforts to obtain general liability and professional liability insurance naming the Client as an additional insured for Losses (as defined in Section 7 of this Agreement) to the Client arising out of the wrongful conduct of the Assigned Employee(s). To the extent that such coverage is available, responds to or defends against any such Losses, the Client shall have no further rights against MGT with relation thereto. Section 4.02. Certificate of Insurance. Upon request, the Client will promptly issue to MGT one or more Certificates of Insurance, verifying the Client’s compliance with the provisions of Section 4.01. It is understood and agreed that the commencement of work by an Assigned Employee hereunder prior to the issuance of any required Certificate of Insurance shall not constitute nor be deemed a waiver of the obligation of the Client under this provision nor the enforceability hereof. Section 4.03. Automobile Liability Insurance. The Client shall maintain in effect automobile liability insurance which shall insure the Client and the Assigned Employee if the Assigned Employee operates a Client vehicle for any reason in connection with his her Assignment hereunder. Such coverage shall insure against liability for bodily injury, death and property damage. SECTION 5 DURATION AND TERMINATION OF AGREEMENT Section 5.01. Term and Effective Date. The Effective Date of this Agreement is the date that this Agreement is last signed by MGT on the signature page (the “Effective Date”). The period during which the Assigned Employee works at the Client is defined as the (“Term”). The Term commences on the Effective Date and will continue for the period identified on the attached Exhibit A, or until it is terminated in accordance with the remaining provisions of this Section 5. For the purposes of this Agreement, the date on which this Agreement expires and/or is terminated is the ("Termination Date"). Section 5.02. Termination of Agreement for Failure to Pay Fees. If the Client fails to timely pay the fees required under this Agreement, MGT may give the Client notice of its intent to terminate this Agreement for such failure and if such failure is remedied within ten (10) days, the notice will be of no further effect. If such failure is not remedied within the ten (10) day period, MGT has the right to terminate the Agreement upon expiration of such remedy period. 4 Leasing Agreement / Rev. 8-2024 Page 18 of 47 Section 5.03. Termination of Agreement for Material Breach. If either Party materially breaches this Agreement, the non-breaching Party must give the breaching Party written notice of its intent to terminate this Agreement for such breach and if such breach is remedied within ten (10) days, the notice will be of no further effect. If such breach is not remedied within the ten (10) day period, the non-breaching Party has the right to immediately terminate the Agreement upon expiration of such remedy period. Section 5.04. Termination of Agreement to execute Temp-to-Hire Option. At the end of the Term, the Client may, upon payment of the Temp-to-hire fee, hire the Assigned Employee as a permanent or temporary employee of the Client. Clients acknowledges the substantial investment of time and resources by MGT under this Agreement to place its leased employee with Client. If after the end of the Term, Client is interested in hiring the Assigned Employee as either a permanent or temporary employee, MGT will determine a reasonable Temp to Hire fee based on the totality of the circumstances. SECTION 6 NON-SOLICITATION Section 6.01. Non-Solicitation. The Client acknowledges MGT’s legitimate interest in protecting its business for a reasonable time following the termination of this Agreement. Accordingly, the Client agrees that during the Term of this Agreement and for a period of two (2) years thereafter, the Client will not solicit, request, entice or induce Assigned Employee to terminate their employment with MGT, and the Client will not hire Assigned Employee as a permanent or temporary employee. If a Temp- to-Hire option provided for in Section 5.04 is properly exercised by the Client, then this Section 6.01 will not apply. Section 6.02. Injunctive Relief. The Client recognizes that the rights and privileges granted by this Agreement are of a special, unique, and extraordinary character, the loss of which cannot reasonably or adequately be compensated for in damages in any action at law. Accordingly, the Client understands and agrees that MGT is entitled to equitable relief, including a temporary restraining order and preliminary and permanent injunctive relief, to prevent or enjoin a breach of Section 6.01 of this Agreement. The Client also understands and agrees that any such equitable relief is in addition to, and not in substitution for, any other relief to which MGT can recover. Section 6.03. Survival. The provisions of Section 6 survive the expiration or termination of this Agreement. SECTION 7 DISCLOSURE AND INDEMNIFICATION PROVISIONS Section 7.01. Indemnification by MGT. MGT agrees to indemnify, defend and hold the Client and its related entities or their agents, representatives or employees (the "Client Parties") harmless from and against all claims, liabilities, damages, costs and expenses ("Losses") arising out of any of the following: (a) MGT’s breach of its obligations under this Agreement; (b) actions or conduct of MGT and its related business entities, their agents, representatives, and employees (the "MGT Parties"), taken or not taken with respect to the Assigned Employees that relate to events or incidents occurring prior or subsequent to the term of this Agreement; or (c) acts or omissions of MGT or any of the MGT Parties including the Assigned Employee, that are the direct and proximate cause of any such Loss. Section 7.02. Indemnification by the Client. The Client agrees to indemnify, defend and hold the MGT Parties harmless from and against all Losses arising out of any of the following: (a) Client’s 5 Leasing Agreement / Rev. 8-2024 Page 19 of 47 breach of its obligations under this Agreement; (b) activities or conditions associated with the Assignment, including without limitation, the Assigned Employee workers’ compensation claims, but only as specifically provided in Section 2.02 of this Agreement; or (c) acts or omissions of Client that are the direct and proximate cause of any such Loss. Notwithstanding the foregoing, the Client shall have no obligation to the MGT parties under this Section with respect to Losses arising out of events or incidents occurring before or after the term of this Agreement. Section 7.03. Indemnification Procedures. The Party seeking indemnity (the "Indemnified Party") from the other Party (the "Indemnifying Party") pursuant to this Section 7, must give the Indemnifying Party prompt notice of any such claim, allow the Indemnifying Party to control the defense or settlement of such claim and cooperate with the Indemnifying Party in all matters related thereto. However, prior to the Indemnifying Party assuming such defense and upon the request of the Indemnified Party, the Indemnifying Party must demonstrate to the reasonable satisfaction of the Indemnified Party that the Indemnifying Party (a) is able to fully pay the reasonably anticipated indemnity amounts under this Section 7 and (b) will take steps satisfactory to the Indemnified Party to ensure its continued ability to pay such amounts. In the event the Indemnifying Party does not control the defense, the Indemnified Party may defend against any such claim at the Indemnifying Party’s cost and expense, and the Indemnifying Party must fully cooperate with the Indemnified Party, at no charge to the Indemnified Party, in defending such potential Loss, including, without limitation, using reasonable commercial efforts to keep the relevant Assigned Employee available. In the event the Indemnifying Party controls the defense, the Indemnified Party is entitled, at its own expense, to participate in, but not control, such defense. The failure to promptly notify the Indemnifying Party of any claim pursuant to this Section will not relieve such Indemnifying Party of any indemnification obligation that it may have to the Indemnified Party, except that the Indemnifying Party shall have no obligation to reimburse the Indemnified Party for fees and costs incurred and any settlements made by the Indemnified Party without the prior written consent of the Indemnified Party prior to such notice or to the extent that the Indemnifying Party demonstrates that the defense of such action was materially prejudiced by the Indemnified Party’s failure to timely give such notice. Section 7.04. Survival of Indemnification Provisions. The provisions of Section 7 survive the expiration or termination of this Agreement. SECTION 8 MISCELLANEOUS PROVISIONS Section 8.01. Amendments. This Agreement may be amended at any time and from time to time, but any amendment must be in writing and signed by all the Parties to this Agreement, except for changes to the fees provided for in Section 3. Section 8.02. Binding Effect. This Agreement inures to the benefit of and binds the Parties and their respective heirs, successors, representatives and assigns. Neither Party may assign its rights or delegate its duties under this Agreement without the express written consent of the other Party, which consent will not be unreasonably withheld. Section 8.03. Counterpart Execution. This Agreement may be executed and delivered in any number of counterparts, each of which will be an original, but all of which together constitutes one and the same instrument. This Agreement may be executed and delivered via facsimile or electronic mail. Section 8.04. Entire Agreement. This Agreement constitutes the entire agreement between the Parties regarding MGT’s placement of the Assigned Employee with the Client, and contains all of the terms, conditions, covenants, stipulations, understandings and provisions agreed upon by the Parties. 6 Leasing Agreement / Rev. 8-2024 Page 20 of 47 This Agreement supersedes and takes precedence over all proposals, memorandum agreements, tentative agreements, and oral agreements between the Parties, made prior to and including the Effective Date of this Agreement not specifically identified and incorporated in writing into this Agreement. No agent or representative of either Party has the authority to make, and the Parties will not be bound by or liable for, any statement, representation, promise, or agreement not specifically set forth in this Agreement. Section 8.05. Further Assurances. The Parties will execute and deliver any and all additional papers, documents, and other assurances and do any and all acts and things reasonably necessary in connection with the performances of their obligations under this Agreement. Section 8.06. Gender. Whenever the context herein so requires, the masculine, feminine or neuter gender and the singular and plural number include the other. Section 8.07. Section Headings. Section and other headings contained in this Agreement are for reference purposes only and do not affect in any way the meaning or interpretation of this Agreement. Section 8.08. Severability. If any part or condition of this Agreement is held to be void, invalid or inoperative, such shall not affect any other provision hereof, which will continue to be effective as though such void, invalid or inoperative part, clause or condition had not been made. Section 8.09. Waiver of Provisions. The failure by one Party to require performance by the other Party shall not be deemed to be a waiver of any such breach, nor of any subsequent breach by the other Party of any provision of this Agreement, and shall not affect the validity of this Agreement, nor prejudice either Party’s rights in connection with any subsequent action. Any provision of this Agreement may be waived if, but only if, such waiver is in writing signed by the Party against whom the waiver is to be effective. Section 8.10. Confidentiality. Each Party will protect the confidentiality of the other’s records and information and must not disclose confidential information without the prior written consent of the other Party. Each Party must reasonably cooperate with the other Party regarding any Freedom of Information Act (FOIA) request calling for production of documents related to this Agreement. Section 8.11. Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of Illinois applicable to contracts made and to be performed entirely within such state, except the law of conflicts. Section 8.12. Force Majeure. MGT will not be responsible for failure or delay in assigning its Assigned Employee to Client if the failure or delay is caused by labor disputes and strikes, fire, riot, terrorism, acts of nature or of God, or any other causes beyond the control of MGT. Section 8.13. Assignment. Neither party may assign any rights nor delegate any duties or obligations under this Agreement without the express written consent of the other party. Notwithstanding the foregoing, MGT, or its permitted successive assignees or transferees, may assign or transfer this Agreement or delegate any rights or obligations hereunder without consent: (i) to any entity controlled by, or under common control with, MGT, or its permitted successive assignees or transferees; or (ii) in connection with a merger, reorganization, transfer, sale of assets or change of control or ownership of MGT, or its permitted successive assignees or transferees. 7 Leasing Agreement / Rev. 8-2024 Page 21 of 47 SECTION 9 DISPUTE RESOLUTION Section 9.01. Good Faith Attempt to Settle. The Parties will attempt to settle any dispute arising out of or relating to this Agreement, or the breach thereof, through good faith negotiation between the Parties. Section 9.02. Governing Law/Jurisdiction. If a dispute cannot be settled through good faith negotiation within thirty (30) days after the initial receipt by the allegedly offending party of written notice of the dispute, then the controversy or claim may be adjudicated by a federal or state court sitting in Cook County. Venue and jurisdiction for any action under this Agreement is Cook County. This Agreement and any amendments hereto will be governed by and construed in accordance with the laws of the State of Illinois. Section 9.03. Attorneys' Fees. The Parties agree that, in the event of litigation under this Agreement, each Party is liable for only those attorneys’ fees and costs incurred by that Party. SECTION 10 NOTICES SECTION 10.01. Notices. All Notices given under this Agreement must be written and may be given by personal delivery, first class U.S. Mail, registered or certified mail return receipt requested, overnight delivery service, or electronic mail. Notices will be deemed received at the earlier of actual receipt or three (3) days from mailing date. Notices must be sent to the Parties at their respective addresses shown below. A Party may change its address for notice by giving written notice to the other Party. If to MGT: MGT Impact Solutions, LLC 790 Frontage Road Suite 213 Northfield, Illinois 60093 Attn: Michael J. Earl 224-261-8366 - mearl@mgt.us If to Client: Village of Hoffman Estates 1900 Hassell Road Hoffman Estates, IL 60169 Attn: Patrick J. Seger 847-781-2691 - Patrick.seger@hoffmanestates.org IN WITNESS WHEREOF, the Parties executed this Agreement on the Effective Date, which is the date this Agreement is last signed by MGT. MGT IMPACT SOLUTIONS, LLC By Name: A. Trey Traviesa Title: CEO – MGT Impact Solutions, LLC 8 Leasing Agreement / Rev. 8-2024 Page 22 of 47 EFFECTVE DATE: January 6, 2025 CLIENT By Name: Title: 9 Leasing Agreement / Rev. 8-2024 Page 23 of 47 EXHIBIT A Assigned Employee and Base Compensation ASSIGNED EMPLOYEE: Paul Redman POSITION/ASSIGNMENT: Engineering Technician POSITION TERM: January 6, 2025 – May 30, 2025. Upon mutual agreement of both parties, the agreement may be extended up to January 2, 2026. Either party may terminate the agreement by providing two weeks advance written notice. BASE COMPENSATION: $95.16/hour. Assigned employee will work a variable schedule but it is anticipated that employee will work on average about 15 hours/week. Employee will be compensated only for hours worked and will not be compensated for Village holidays or any other time off for personal reasons. Hours should be reported via email to payroll@govtempsusa.com by the close of business on the Monday after the prior work week. The parties hereby represent and warrant that the individuals whose signatures appear below are authorized by resolution or by their position with that party to enter into and execute this Exhibit A and any amendment thereto on that party’s behalf. MGT IMPACT SOLUTIONS, LLC CLIENT: By: By: Date: 12/3/2024 Date: This Exhibit A amends and supplements but does not replace all Exhibits A dated prior to the Effective Date of this Agreement. 10 Leasing Agreement / Rev. 8-2024 Page 24 of 47 EXHIBIT B Summary of Benefits Does Not Apply Exhibit B-11 Page 25 of 47 AGENDA ITEM REPORT Planning, Building & Zoning Committee December 9, 2024 ITEM 5B REQUEST: Approval of Lakewood Center TIF Reimbursement Request #4 in the amount of $26,221,583.98 FROM: Kevin Kramer, Director of Economic Development ITEM TYPE: Action Item - Committee REQUEST SUMMARY The Village Board previously approved: • A Development Agreement between the Village and the purchaser of the former AT&T campus site on April 25, 2018. • The commission of a Tax Increment Financing District Eligibility Study and Redevelopment Plan and Project for the Lakewood Center Redevelopment Project Area. That report was completed and filed with the Village Clerk on October 25, 2018. • A Resolution for the purposes of inducing development of property within the Lakewood Center Redevelopment Project Area and the creation of a Tax Increment Financing (TIF) District (Resolution 1671-2018). • On January 21, 2019, Ordinances officially adopting a TIF District for the Lakewood Center Redevelopment Project Area (Ordinances 4702-2019, 4703- 2019, 4704-2019). • On January 28, 2019, a Redevelopment Agreement and TIF Notes for the Lakewood Center TIF allocating a portion of TIF revenues to a specific redevelopment project (Ordinance 4707-2019). • The issuance of TIF Notes A & B with Reimbursement Request #1 on December 21, 2020 in the amount of $7,612,445.50 to be reimbursed. The developer previously submitted Reimbursement Request #1 in the amount of $ $25,374,818.04, Reimbursement Request #2 in the amount of $ $45,872,929.44, and Reimbursement Request #3 in the amount of $31,454,153.10. The developer has completed the east side renovations, built out nearly 300,000 sf of office, retail, restaurant and fitness space including new tenant spaces for Club Colors, VIPAR, JumpFly, and more. These and other TIF eligible costs have been submitted to the Village for costs incurred over the past year, though not submitted in the previous request, according to the agreements entered into by both parties, for reimbursement from the TIF, as funds become available. The developer has submitted Reimbursement Request #4 in the amount of $26,221,583.98. Staff has verified all TIF Eligible costs, which total $22,291,309.71, according to the TIF Act and the Redevelopment Agreement. Page 1 of 2 Page 26 of 47 The Ordinance approving the Development Agreement and the TIF Notes stipulate that the Corporate Authorities approve Reimbursement Requests, and directs the Finance Director to update the TIF Notes to the new amount (which cannot exceed the $53,767,000 or 30% of the total project costs, whichever is lesser). Two TIF Notes were authorized as part of this TIF creation on January 21, 2019 and issued on January 1, 2021. TIF Note A is interest bearing and has a Maximum Aggregate Principal of $43,013,600, which could not be prepaid by the TIF. TIF Note B is interest bearing and has a Maximum Aggregate Principal of $10,753,400, which could be prepaid by the TIF. The payments to each Note, according to the Note Ordinance, shall be 80% to Note A and 20% to Note B. Therefore, Reimbursement Request #4 would allocate an additional $6,293,180.16 to Note A and $1,573,295.04 to Note B, totaling the $7,866,475.19 which is 30% of the Total Project Costs. See the attached spreadsheet breaking down the total costs from the TIF eligible costs and the amount to be approved for reimbursement. The Finance Director is authorized to issue and increase the TIF Note upon Village Board approval of the Reimbursement Request. The developer continues to market the site, remodel upper floors for tenants, design new event spaces, plan for residential, plan for a hotel, and lease spaces. Additional TIF eligible costs will be submitted in the future. FINANCIAL IMPACT TIF financing is based on the principal that new development or redevelopment will increase the tax base. That increase in tax base, over time, generates additional property taxes. Those property taxes are directed to the TIF increment fund over the 23-year life of the TIF. Thus, the development itself generates a pool of money which can be used to pay for TIF eligible costs and provide an incentive for the developer or others to redevelop the site. RECOMMENDATION Approval of the Lakewood Center TIF Reimbursement Request #4 in the amount of $26,221,583.98. ATTACHMENTS 1. Lakewood TIF Reimbursement Summary Nov'24 2. TIF Request for Reimbursement #4 RZ signed Page 2 of 2 Page 27 of 47 LAKEWOOD TIF TOTALS AND TIF NOTE CALCULATIONS 11/26/2024 Reimb. Request #1 Reimb. Request #2 Reimb. Request #3 Reimb. Request # Total to date Total Project Costs Submitted $25,374,818.04 $45,872,929.44 $31,454,153.10 $26,221,583.98 $128,923,484.56 TIF Eligible Project Costs Submitted $25,374,818.04 $27,812,586.13 $18,118,730.07 $22,291,309.71 $93,597,443.95 Amount Approved for Reimbursement $7,612,445.41 $13,761,878.83 $9,436,245.93 $7,866,475.19 $38,677,045.37 (Maximum amount of $53,767,000.00) (30% of Total Project Costs above) Outstanding Principal Amount to Note A $6,089,956.33 $11,009,503.07 $7,548,996.74 $6,293,180.16 $30,941,636.29 (Maximum amount of $43,013,600.00) (80% of Total Aggregate) Outstanding Principal Amount to Note B $1,522,489.08 $2,752,375.77 $1,887,249.19 $1,573,295.04 $7,735,409.07 (Maximum amount of $10,753,400.00) (20% of Total Aggregate) Page 28 of 47 Page 29 of 47 Page 30 of 47 Page 31 of 47 Page 32 of 47 Page 33 of 47 VILLAGE OF HOFFMAN ESTATES DEPARTMENT OF DEVELOPMENT SERVICES PLANNING DIVISION MONTHLY REPORT SUBMITTED TO: PLANNING, BUILDING & ZONING COMMITTEE BY: Jennifer Horn, Director of Planning and Transportation December 2024 GENERAL UPDATES • Planning staff attended the APA-IL Plan Commission Trainer training session on November 15. LONG RANGE PLANNING PROJECT STATUS  Teska Associates (as lead) and Ancel Glink awarded contract to complete the Zoning Code Update project.  Epstein (as lead), HNTB, and All Together awarded contract  The PB&Z Committee moved to support the consultant’s findings for comprehensive multimodal plan: Hoffman in Motion. and recommendations on August 7, 2023.  Website is live www.hoffmaninmotion.com.  The project website is live at www.VOHEzoning.org. Public Engagement  Drafting is ongoing based on direction provided by the PB&Z.  Falling into Motion event at PW Open House held on  Community engagement remains ongoing and additional public 11/2/24. comment emails continue to be received.  Steering Committee meeting #2 being scheduled.  Survey #2 is complete. Results to follow.  Visit www.hoffmaninmotion.com/photos to see pictures from past and future public engagement events.  An engagement summary is available at www.hoffmaninmotion.com Work Product  Project remains on track for summer 2025 completion.  Existing Conditions Report was presented to Committee in September. Draft plan underway. Page 34 of 47 Planning, Building and Zoning Committee -2- December 9, 2024 ACTIVE PLANNING PROJECTS PZC or PBZ VB Project Address Status Meeting Meeting Clearbrook Special Use and Site Plan 1260 W HIGGINS RD APPROVED 11/20/24 12/2/24 Ivy Massage N Spa Special Use 1033 W GOLF RD PUBLIC MEETING 12/4/24 12/16/24 1120 Ash Rd Garage Size Variation 1120 ASH RD PUBLIC MEETING 12/18/24 1/6/24 Apple – Golf Rezoning and Concept 1180 & 1190 APPLE ST PUBLIC MEETING 12/18/24 1/20/24 Review Beverly Property Mass Grading – Staff Level 2601 BEVERLY RD UNDER REVIEW Approval Compass Data Center 3333 BEVERLY RD UNDER REVIEW Scooter’s Coffee 2 E HIGGINS RD UNDER REVIEW Harvest Community Church Parking Lot 2060 STONINGTON AVE UNDER REVIEW Expansion Microsoft CHI07 Data Center 3125 N BARRINGTON RD UNDER REVIEW 1721 MOON LAKE BLVD # Yoga & Massage Special Use UNDER REVIEW 410 Detached Garage Size Variation 1120 ASH RD UNDER REVIEW Bell Works Apartments Concept Review 2000 CENTER DR UNDER REVIEW Village Hall Parking Lot 1900 HASSELL RD UNDER REVIEW 3688 WHISPERING TRAILS Single Family Home Setback Variation UNDER REVIEW DR MONTHLY PLANNING PROJECT ACTIVITY Projects Submitted by Type November 2024 YTD Pre-Development 3 Agreement 1 Annexation Courtesy Review Easement 3 Master Sign Plan 3 Plat of Subdivision 2 Other Plat 2 RPD Amendment 1 Site Plan Review 16 Special Use 1 7 Text Amendment Rezoning 1 Variation 1 8 Total 2 47 FOIA Processed 6 27 Zoning Verification Letters 4 7 Building Permits Reviewed by Planning 59 783 Page 35 of 47 Planning, Building and Zoning Committee -3- December 9, 2024 PLANNING PERFORMANCE MEASURES Site Plan Review Process November 2024 YTD Number of administrative/staff review site 0 7 plan cases completed 0% 70% Number of PZC site plan cases processed 1 3 Annual goal is to complete at least 65% of site plan cases through administrative review process Site Plan Review Timing November 2024 YTD Number of cases processed within 105 days 1 100% 10 100% Annual goal is to complete 100% of cases within 105 days Page 36 of 47 VILLAGE OF HOFFMAN ESTATES DEPARTMENT OF DEVELOPMENT SERVICES CODE ENFORCEMENT DIVISION MONTHLY REPORT SUBMITTED TO: PLANNING, BUILDING & ZONING COMMITTEE BY: Sanyokta Kapur, Director of Building & Code Enforcement December 2024 GENERAL ACTIVITIES • On November 6, 2024, Tricia Morandi attended a Legacy Project webinar on Adventures in Public Service. • On November 7, 2024, Sanyo Kapur, David Dodge, Anthony Knuth, John Staschke & Tricia Morandi attended the NWBOCA fall school training on Permitting & Inspecting Commercial Solar Electric Systems and NFPA 855 & Battery Energy Storage Systems in Schaumburg. • On November 14, 2024, David Dodge, Anthony Knuth, David Banaszynski, John Staschke, Marc Shulga, Mike McAvoy & Tricia Morandi attended the NWBOCA fall school training on Commercial Kitchen Hoods Plan Review and What Every Building Inspector Should Know About Fire Sprinkler & Fire Alarm Systems in Schaumburg. • On November 20, 2024, Tricia Morandi attended the ABCI meeting on Business Meeting & Discussion in Buffalo Grove. • On November 21, 2024, Sanyo Kapur, David Dodge, Kala Kuttenberg, Kathleen Kuffer, Liz Dianovsky, Jeff Miller, Marc Shulga & Tricia Morandi attended the NWBOCA fall school training on Understanding the International Building Code 2021 Chapter 10 Means of Egress in Schaumburg. • On November 23, 2024, David Banaszynski inspected the food trucks at the Starbuds event. • Seasons of Hoffman Estates has received approval to occupy all eight residential buildings which are very close to full capacity. Minor landscaping work and final surveys are pending. • Microsoft is making significant construction progress on the Colos 2 to Colos 5 buildouts in Building 1, CHI05 with rough framing underway. The permit issuance for CHI06, Building 2 of the campus, will be completed once cost estimates are finalized. • Demolition of existing structures is ongoing at the Sears campus. Day care building will also be demolished. Site Development permit for existing site demolition and mass grading of the Compass data centers has been issued. • Lova Dispensary off of N. Barrington Rd is making good progress for the interior buildout and site upgrades. • Dar-Ul -Ilm Foundation interior buildout for religious center at Lakewood Blvd is underway. • Nothing Bundt Cake is making significant progress with the interior buildout off Higgins Rd, in the Poplar Creek Crossing Subdivision. • Playroom Café at Barrington Square Subdivision has started interior buildout construction. • Fire Station 21 off Flagstaff Lane has started construction site preparation work and building pad preparation work. • ComEd is almost complete with construction on the Pembroke Ave. substation expansion. • The new Advocate outpatient facility on Hoffman Blvd. within Prairie Stone is close to receiving approval for Occupancy. • Airdrie Estates subdivision has several lots under construction for new single-family homes. • Code Enforcement staff have been involved in several ongoing property maintenance cases as well as annual monitoring of commercial snow removal and pothole maintenance. Bell Works Construction Update: • Staff is working with Bell Works on several tenant build-outs and parking garage repairs throughout the east side. Site Development permit issuance for Bell Works Townhomes is pending. Page 37 of 47 Village of Hoffman Estates -2- Code Enforcement Division Monthly Report – December 2024 2024 Code Enforcement Freedom of Information Act Requests Processed Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 31 34 51 46 54 52 52 51 55 41 41 508 2024 Code Enforcement GovQA Questions & Complaints Processed Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 10 4 16 20 35 21 23 13 21 16 12 191 Construction Inspections Year 2024 2023 Jan 346 628 Feb 415 555 Construction Inspections Mar 607 468 1000 Apr 715 544 800 May 718 657 Inspections Jun 717 676 600 Jul 827 625 400 Aug 720 743 200 Sep 716 671 Oct 865 770 0 Nov 689 629 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Dec 478 2024 2023 Total 7335 7444 Construction inspections include review and closure of older permits that have not yet had a final inspection. RENTAL HOUSING LICENSE AND INSPECTION PROGRAM • There are currently 1,825 rental properties registered. This includes 1,164 single family and townhome units (64%) and 661 condominium units (36%). This number fluctuates based on new registrants and owners who choose to no longer rent their properties. • Renewal notifications were mailed on November 14, 2024, to all rental properties. The deadline to submit payment and update registration information is February 1, 2025. • As of December 2nd, 615 properties have renewed. 2024 Rental Inspections Inspection Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Annual 124 76 68 113 107 127 160 100 154 159 192 1380 Reinspections 108 87 64 68 78 79 79 118 94 111 94 980 Total 232 163 132 181 185 206 239 218 248 270 286 0 2360 Page 38 of 47 Village of Hoffman Estates -3- Code Enforcement Division Monthly Report – December 2024 2024 Permits Issued 2024 2023 Permit Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Total Commercial New 0 1 0 1 2 0 0 3 0 0 0 7 9 Single Family New 0 0 0 0 1 0 0 0 2 1 1 5 5 Land Development 0 0 0 0 0 0 0 0 1 3 2 6 1 Fire 13 8 15 9 3 9 17 18 10 14 9 125 158 All Other Permits 108 127 205 367 299 296 312 308 304 364 234 2924 2907 2024 Total 121 136 220 377 305 305 329 329 317 382 246 0 3067 2024 Permits Applied Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2024 134 205 340 535 479 470 395 447 409 427 233 4074 2023 105 179 227 322 433 505 496 544 419 345 223 161 3959 Permits Applied 600 Permits Applied 400 200 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2024 2023 Permit Revenue Year 2024 2023 Jan $54,595 $475,262 Permit Revenue Comparison Feb $55,383 $92,415 $2,500,000 Mar $61,118 $48,876 $2,000,000 Apr $63,268 $331,820 Revenue $1,500,000 May $2,080,130 $62,483 Jun $100,777 $85,224 $1,000,000 Jul $67,251 $67,487 $500,000 Aug $70,712 $66,181 $0 Sep $86,798 $222,586 Oct $88,794 $350,822 Nov $57,749 $56,694 Dec $34,685 2024 2023 Total $2,786,575 $1,894,535 2024 Budget: $3,767,000. Total Revenue includes building permits, fire permits and Temporary & Full Certificates of Occupancy. Page 39 of 47 Village of Hoffman Estates -4- Code Enforcement Division Monthly Report – December 2024 2024 Property Maintenance Summary Report 2024 2023 Violation Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Total Accessory Structure 1 3 3 14 6 6 3 5 3 5 3 52 44 Exterior Property Maintenance 4 2 19 36 15 10 7 6 2 2 0 103 93 Work Without Permits 1 4 5 4 7 9 11 6 9 5 10 71 58 Garbage/Toters/Yard Waste 25 70 25 52 60 28 40 59 96 71 47 573 468 Improper/Outside Storage 5 8 3 10 9 13 12 15 8 12 9 104 165 Interior Property Maintenance 1 0 0 0 2 1 0 0 2 2 0 8 11 Miscellaneous 16 14 27 10 15 15 14 10 12 10 8 151 123 Animal Issue 1 0 0 3 1 2 11 13 10 1 0 42 35 Right-of-Way 4 0 0 10 2 5 3 6 2 0 0 32 15 Signs & Banners 1 3 2 0 2 1 1 3 0 2 4 19 15 Tall Grass/Weeds 0 0 0 21 190 80 78 74 34 17 0 494 276 Vehicle 2 5 3 4 2 4 4 4 8 12 7 55 70 2024 Total 61 109 87 164 311 174 184 201 186 139 88 0 1704 2023 Total 60 69 49 102 257 208 142 131 107 118 69 61 1373 2024 YTD Vehicle Accessory Structure Exterior 3% Property 3% Maintenance Tall 6% Grass/Weeds 29% Work Without Permits 4% Signs & Banners Garbage/Toters 1% /Yard Waste Right-of-Way 34% 2% Improper/Outside Animal Issue Storage 2% Miscellaneous Interior 6% 9% Property Maintenance 1% 2024 Citations Issued Violation Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Business License 24 20 14 2 90 33 8 24 49 25 16 305 Code 42 59 177 46 89 83 67 65 48 69 65 810 Rental 0 74 103 0 113 49 6 66 59 65 83 618 Total 66 153 294 48 292 165 81 155 156 159 164 0 1733 2024 Adjudication Court Dockets - Citations Presented Court Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Code/Bus. Lic. 37 54 56 65 82 102 106 82 86 90 76 836 Rental 75 84 36 87 73 72 88 60 50 91 83 799 Total 112 138 92 152 155 174 194 142 136 181 159 0 1635 Page 40 of 47 Village of Hoffman Estates -5- Code Enforcement Division Monthly Report – December 2024 2024 Environmental Health Inspection Report Activity Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD High Risk Food 37 34 0 0 32 39 1 4 12 41 7 207 Med Risk Food 0 0 34 35 0 1 4 1 0 0 38 113 Low Risk Food 0 0 1 2 1 0 42 57 0 1 2 106 Reinspections 2 0 4 2 2 4 3 3 1 3 3 27 Public Pools 0 0 0 0 1 0 0 0 0 0 0 1 Plan Review 3 0 1 6 3 4 2 3 3 1 2 28 Day Care 0 0 2 5 0 0 0 1 0 0 3 11 Complaint 2 1 3 6 5 4 7 6 5 0 4 43 Total 44 35 45 56 44 52 59 75 21 46 59 0 536 2024 YTD Day Care Complaint Plan Review 2% 8% 5% Public Pools High Risk Food 0% 39% Reinspections 5% Low Risk Food 20% Med Risk Food 21% Food establishments are divided into the risk categories of high, moderate or low, and planned inspections are performed three, two, or one time each year respectively. A high-risk establishment presents a high relative risk of causing foodborne illness based on the large number of food handling operations typically implicated in foodborne outbreaks and/or the type of population served by the facility. There are approximately 285 facilities that require a total of approximately 525 planned inspections throughout the year (this number fluctuates based on businesses opening/closing). Page 41 of 47 Page 42 of 47 Page 43 of 47 Page 44 of 47 Page 45 of 47 Page 46 of 47 Page 47 of 47