HomeMy WebLinkAbout4. NEW BUSINESS 02/17/2009
MouotPmspect
Mount Prospect Public Works Department
INTEROFFICE MEMORANDUM
TO:
VILLAGE MANAGER MICHAEL E. JANONIS
FROM:
PROJECT ENGINEER
DATE:
FEBRUARY 11, 2009
SUBJECT: NEIGHBORHOOD TRAFFIC STUDY
RECOMMENDATION FOR INTERSECTION TRAFFIC CONTROL AND
SPEED LIMIT CHANGES FOR ZONES 1,2,5 & 6
The Engineering Division transmits their recommendation to
approve intersection traffic control and speed limit changes for Zones 1, 2, 5 & 6 as
part of the Neighborhood Traffic Study.
The Residential Intersection Traffic Control Program and Residential Speed Limit Program are the two
primary traffic initiatives that are included in the cmrent Neighborhood Traffic Study. The Residential
Intersection Traffic Control Program involves reviewing all neighborhood intersections to determine the
proper traffic control. The Residential Speed Limit Program involves reviewing all Village-owned streets
to determine the appropriate speed limit. Both programs are being implemented on a neighborhood by
neighborhood basis using today's engineering principles.
The Village has been divided into 18 neighborhoods or "traffic zones" for the purpose of implementing
the programs. With the assistance of a consultant, KLOA Inc., the Engineering Division has completed
the study of Zones 1, 2, 5 & 6. The neighborhood of Zone 1 is bounded by Seminole Lane to the north,
River Road to the east, Camp McDonald Road to the south, and the western Village limits. Zone 2 is
bounded by Camp McDonald Road to the north, River Road to the east, Euclid Avenue to the south, and
the western Village limits. Zone 5 is bounded by Euclid Avenue to the north, River Road to the east,
Kensington Road to the south, and Wolf Road to the west. And Zone 6 is bounded by Kensington Road
to the north, Wolf Road to the east, the southern boundary of the Kensington Business Park to the south,
and Rand Road to the west.
SUMMARY
Residential Intersection Traffic Control Program
A total of 123 intersections in the four zones were reviewed to determine the proper traffic control. A
summary of the recommendations are indicated in the tables on the next page.
page2of8
Neighborhood Traffic Study
February 11, 2009
Zone 1
Intersection Traffic Control Type # of Existing Intersections # of Recommended Intersections
All-Way Stop Sign Control 5 2
Two-Way/One-Way Stop Sign Control 20 37
Two of Three Legs Under Stop Control 1 1
Yield Sign Control 0 0
No Intersection Traffic Control 16 2
TOTAL 42 42
. .
Zone 2
Intersection Traffic Control Type
# of Existing Intersections
# of Recommended Intersections
All-Way Stop Sign Control
Two-Way/One-Way Stop Sign Control
4
5
Two of Three Legs Under Stop Control
8
.2
29
o
Yield Sign Control
1
22
o
No Intersection Traffic Control
3
TOTAL
37
37
Zone 5
Intersection Traffic Control Type
# of Existing Intersections
# of Recommended Intersections
All-Way Stop Sign Control
Two-Way/One-Way Stop Sign Control
3
3
16
o
Two of Three Legs Under Stop Control
Yield Sign Control
10
o
o
o
8
No Intersection Traffic Control
14
TOTAL
27
27
Zone 6
Intersection Traffic Control Type
# of Existing Intersections
# of Recommended Intersections
All-Way Stop Sign Control
4
Two-Way/One-Way Stop Sign Control
6
5
10
o
Two of Three Legs Under Stop Control
2
o
o
Yield Sign Control
page 3 or8
Neighborhood Traffic Study
February 11, 2009
I No Jnrersection Tmffic Control
TOTAL
5 I 2 I
17 17
Residential Speed Limit Program
In addition to reviewing the intersections, the street system was reviewed to determine the appropriate
speed limits in the four zones. The Engineering Division also evaluated the three schools within these
neighborhoods, Frost Elementary School, Indian Grove Elementary School and Park View Montessori
School, to detennine those streets that should be posted a school speed limit zone. Along those streets
there would be a 20 mph speed limit during school hours when children are present. At other times, the
speed limit would be 25 mph. Section 18.605 of the Village Code covers school speed limit zones.
Therefore, a separate ordinance is not required. A summary of the recommendations are indicated in the
tables below.
Zone 1
Speed Limit # of Existing Miles Existing % # of Recommended Miles Recommended %
20 mph 0.35. 5 0;0 0
25 mph . . 6,3 94 6,7 WO
30 mph 0;05 0.0 0
TOTAL 6.7 100 6.7 100
* 0.4 miles recommended a school speed limit zone
Zone 2
Speed Limit # of Existing Miles Existing % # of Recommended Miles Recommended %
20 mph 0.0 0 0.0 0
25mph 5.2 91 5.7 100
30 mph 0.5 9 0.0 0
TOTAL 5.7 100 5.7 100
* 0.15 miles recommended a school speed limit zone
Zone 5
Speed Limit # of Existing Miles Existing % # of Recommended Miles Recommended %
20 mph 0.0 0 0.0 0
..
25 mph 4.6 98 4.7 100
. .
30 mph 0.1 2 0.0 0
.
TOTAL 4.7 100 4.7 100
* 0.3 miles recommended a school speed limit zone
page4of8
Neighborhood Traffic Study
February II, 2009
Zone 6
Speed Limit
# of Existing Miles
Existing %
# of Recommended Mlles Recommended %
20 mph
25 mph
30 mph
TOTAL
0.0
0.2
o
4
96
0.0 0
46
54
100 - .
4.4
4.6
100
Public Notification
Once the studies were completed, the first piece of information sent to each of the 2300 properties within
the four neighborhoods was a brochure. The brochure provided information about the traffic study and
invited them to an Open House to learn about the proposed changes. A web page that included a 12
minute video explaining the programs was created on the Village web-site as an additional avenue to get
information to the public.
The Open House was held on January 26th at Indian Grove Elementary School. Residents could come
anytime between 6:00pm & 7:30pm. The Open House included the video about the programs and an area
where residents could see the recommended changes on display boards and talk with Staff. Residents
could also fill out a Comment Card and provide Staff with feedback. All written comments received via
the Open Houses, e-mail or regular mail are attached. Approximately 20 residents attended the Open
House.
Based on the traffic study performed by KLOA Inc. and the Engineering Division, we are recommending
changes to Chapter 18 (Traffic) of the Village Code as detailed on the following pages. With the Village
Board of Trustees' approval, the Engineering Division will then work with the contractor currently under
contract to manufacture and install the necessary signs. The current schedule is to have the new signs
installed this spring.
RECOMMENDATIONS AFFECTING THE VILLAGE CODE
Intersection TrafJic Control
Section 18.2004A: Stop Signs
Ordinances to be Repealed
Name of Street Direction of Traffic Movement At Intersection With
Aralia Drive North and Southbound Aztec Lane
Aspen Drive Southbound Maya Lane
Burning Bush Lane North and Southbound Euclid Avenue
Burning Bush Lane North and Southbound Wood Lane
Burning Bush Lane North and Southbound Yuma Lane
page 5 or8
Neighborhood Traffic Study
February 11, 2009
Camp McDonald Road Eastbound River Road
Highland Avenue East and Westbound Wilshire Drive
Indigo Drive North and Southbound Corktree Lane
Indigo Drive Eastbound Mandel Lane
Maya Lane East and Westbound Aralia Drive
Mura Lane North and Southbound Maya Lane
Seminole Lane Eastbound River Road
Wintergreen Avenue Westbound Park Drive
Wood Lane Westbound Mandel Lane
Section l8.2004B: Yield Signs
Ordinances to be Repealed
Name of Street Direction of Traffic Movement At Intersection With
Lama Lane North and Southbound Tano Lane
Section 18.2004A: Stop Signs
Ordinances to be Added
Name of Street Direction of Traffic Movement At Intersection With
Althea Lane Southbound Tano Lane
Althea Lane Northbound Wood Lane
Andoa Lane Eastbound Larch Drive
Aralia Drive Southbound Maya Lane
Aspen Drive Northbound Aztec Lane
Basswood Lane Northbound Cree Lane
Beech Road Northbound Seneca Lane
Bittersweet Lane Westbound Quince Lane
Boro Lane Southbound Tano Lane
Boro Lane Northbound Wood Lane
Buckthorn Drive Westbound Rosetree Lane
Burr Oak Drive Westbound Burning Bush Lane
Burr Oak Drive Eastbound Lama Lane
page 6 of8
Neighborhood Traffic Study
February 11, 2009
Cano Lane Eastbound Columbine Drive
Cayuga Lane Westbound Mum Lane
Celtic Glen Drive Eastbound River Road
Chinkapin Oak Drive Eastbound River Road
Cholo Lane Southbound Hopi Lane
Columbine Drive Northbound Oneida Lane
Columbine Drive North and Southbound Tano Lane
Corktree Lane Eastbound Columbine Drive
Cree Lane East and Westbound Basswood Lane
Feebanville Drive Northbound Business Center Drive
Highland Avenue Eastbound Windsor Drive
Holly Avenue East and Westbound Eastman Drive
Holly Avenue Westbound Wilshire Drive
Hopi Lane Westbound Moki Lane
Ivy Lane Westbound Moki Lane
Kiowa Lane Northbound Ivy Lane
Lama Lane North and Southbound Tano Lane
Lama Lane Northbound Wood Lane
Laurel Drive Northbound Aztec Lane
Mandel Lane Northbound Camp McDonald Road
Mohawk Lane Eastbound Larch Drive
Mum Lane Eastbound Park Drive
Park Drive Southbound Seneca Lane
Park Drive Southbound Tano Lane
Park Drive Westbound Wood Lane
Pawnee Lane Eastbound Mum Lane
Peachtree Lane Northbound Corktree Lane
Peartree Lane Northbound Corktree Lane
Pecos Lane Northbound Kiowa Lane
Pecos Lane Eastbound Moki Lane
page 7 of8
Neighborhood Traffic Study
February II, 2009
Pin Oak Drive Westbound Lama Lane
Pin Oak Drive Eastbound River Road
Rosetree Lane Southbound Oneida Lane
Sauk Lane Southbound Tano Lane
Sauk Lane Northbound Wood Lane
Sitka Lane Eastbound Althea Lane
Sitka Lane Southbound Tano Lane
Sumac Lane Northbound Kiowa Lane
Tano Lane East and Westbound Columbine Drive
Windsor Drive Northbound Garwood Drive
Wintergreen Avenue Westbound Mura Lane
Wintergreen Avenue Eastbound Park Drive
W oodview Drive Westbound Mura Lane
Yuma Lane Eastbound Park Drive
Speed Limit
Section 18.2001: Speed Restrictions
Ordinances to be Repealed
Name of Street Direction of Speed Limit Description
Traffic Movement (mob)
Maya Lane East and Westbound 25 Between west Village limits and Buckthorn Drive
Maya Lane East and Westbound 20 Between Aralia Drive and Burning Bush Lane
Maya Lane East and Westbound 20 Between Oneida Lane and Mura Lane
Section 18.200 I: Speed Restrictions
Ordinances to be Added
Name of Street Direction of Speed Limit Description
Traffic Movement (mob)
Azalea Place East and Westbound 25 Entire jurisdiction
Biermann Court North and Southbound 25 Entire jurisdiction
Bishop Court East and Westbound 25 Entire jurisdiction
Burr Oak Drive East and Westbound 25 Entire jurisdiction
page 8 or8
Neighborhood Traffic Study
February II, 2009
Business Center Drive East and Westbound 30 Entire jurisdiction
Celtic Glen Drive East and Westbound 25 Entire jurisdiction
Cbinkapin Oak Drive East and Westbound 25 Entire jurisdiction
Eastman Court North and Southbound 25 Entire jurisdiction
Eastman Drive North and Southbound 25 Entire jurisdiction
.
Feehanville Drive East and Westbound 30 Entire jurisdiction
Garwood Drive East and Westbound 25 Entire jurisdiction
Highland Avenue East and Westbound 25 Entire jurisdiction
Hill Street East and Westbound 25 Entire jurisdiction
Holly Avenue East and Westbound 25 Entire jurisdiction
Holly Court East and Westbound 25 Entire jurisdiction
Kingston Court North and Southbound 25 Entire jurisdiction
Lakeview Court North and Southbound 25 Entire jurisdiction
Maya Lane East and Westbound 25 Entire jurisdiction
Oneida Court East and Westbound 25 Entire jurisdiction
Pin Oak Drive East and Westbound 25 Entire jurisdiction
Slawin Court North and Southbound 25 Entire jurisdiction
Wheeling Road North and Southbound 30 Between Business Center Drive and Kensington Road
Windsor Drive North and Southbound 25 Entire jurisdiction
Please include this item on the February 17th Village Board Meeting Agenda. Representatives from the
Engineering Division and KLOA Inc. will be in attendance to present the recommendations and answer
questions.
Attachments
Zone 1, 2, 5 & 6 Maps
Intersection Traffic Control Recommendation Maps
Speed Limit Recommendation Maps
Comments from Residents
c: Village Clerk Lisa Angell
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Village of Mount Prospect
Neighborhood Traffic Study - Zones 1, 2, 5 & 6
Open House and E-mail Comments
In keeping with past practice, the names and addresses are not included in the comments be/ow.
However, they are on record with the Village.
Zone 1
"I think the movie should get a Golden Globe!"
Zone 2
"We drive west on Burr Oak almost everyday and STOP at the intersection by the school--looking for
cross traffic driving south on Burning Bush. To the north, at this intersection, there is a small curve
turning to the east (backward, sort of, from the direction our car is pointing at the time). It is difficult to
see if a car is driving south on Burning Bush because of that shallow curve and sometimes parked cars
along the east edge of Burning Bush interfere with visual sighting, also. Many times, we have pulled out
onto Burning Bush intending to turn left (to travel south) when we would see a car come around that
curve. Of course, we stop and let it go by. It would be nice if we had seen that car before we pulled away
from our STOP sign.
I am suggesting a STOP sign on Burning Bush north of the school BUT NOT where one is
"recommended". My husband and I think a better placement would be about 1/2 block SOUTH bringing
the STOP sign to the east edge of Tano where it intersects with Burning Bush. There is a STOP sign at
this intersection to stop the east moving traffic on Tano; another STOP sign at the same intersection that
would stop the south moving traffic on Burning Bush would be helpful (the way we see the problem).
This visual is a problem also for the children that walk to the playground from houses east, along Burr
Oak. There is a crossing guard during school hours, but in summer time and after school hours, kids will
be walking to the playground without the assistance of crossing guards.
Thank you for reading this and hopefully you will be able to correct the problem at the intersection of
Burr Oak and Burning Bush from cars traveling south (coming from the north of the school).
I am attaching a copy of your "recommended" map and have shaded in Burning Bush from Camp
McDonald to the east edge (of the 2nd leg) of Tano where it intersects Burning Bush just north of the
school.
On this map, I have also shaded in Columbine from Camp McDonald down to Tano (the east edge of the
3rd leg of Tano ). Your map shows a STOP sign on the south side of that intersection stopping the south
bound Columbine traffic (as well as a STOP sign on Tano itself); your map shows 2 stop signs on the
same "corner property". I suppose this is just an error in placement by the mapmaker. But, in case it isn't
an error, I thought it bears bringing this to your attention, too. We think the STOP sign along Columbine
to stop the south moving traffic would be better placed on the north side ofTano at that intersection."
"Propose to remove stop signs on Indigo at Corktree. I disagree, former mayor said don't change signs, I
agree with her, same in Herald. Traffic calming on local residential streets, stop signs help. 2 year old
died on Indigo Dr, in Herald, date 70's. Stop signs help, exact date? This study, whose idea, I disagree
with it."
Zone 5
"This was an excellent opportunity to gain an understanding of the new program. I think it will be very
beneficial to have a consistent speed and traffic system in all areas of Mount Prospect."
"Very good information. Thankful studies are being undertaken. Look forward to results of study."
"Why was the 4-way stop @ Burning Bush & Hopi not recommended to become a 2-way (only Hopi
stop)? The volume on Hopi does not appear to warrant a stop on Burning Bush and there are no special
conditions such as restricted view, park, school, etc."
Zone 6
"I was very impressed with the knowledge of the staff and very happy with the answers to my questions."
"I would like to respond to the Zone 6 stop signs that are being recommended in my area.
My husband and I would like to comment on 3 possibly new stop signs.
1. The considered new stop sign entering the subdivision at Rand Rd. in our opinion is not a good idea.
There is not very much room for cars to line up on the street at that point. If cars are asked to stop at that
point there is a possiblity of accidents. There is stop sign down at Highland and Wilshire which could
remain in place.
2. We disagree with the considered new stop sign at Garwood and Windsor Dr. This is not necessary and
in our opinion that would make 3 stop signs we would need to adhere to in a 3 block area. There is really
no interection at the corner of Garwood and Windsor Dr. as Garwood is a deadend.
3. The stop sign at Holly and Eastman is not necessary either. There is very little traffic at Holly and
Eastman to warrent a stop sign. The same goes for the possible stop sign at Holly and Wilshire.
We feel that enforcing the traffic stop sign as they are would help.
Good ideas are:
Adding stop sign going West on Garwood at Wilshire.
Adding stop sign going North on Wilshire at Garwood.
Keep:
Stop sign going East and going West at Highland and Wilshire Stop sign going South on Wilshire at
Highland, West on Highland at Windsor Stop sign going South on Windsor at Highland Stop sign going
West on Garwood at Wilshire Stop sign going South on Wilshire At Garwood."
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 18 ENTITLED
'TRAFFIC CODE' OF THE VILLAGE CODE OF MOUNT PROSPECT
BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF
MOUNT PROSPECT, COOK COUNTY, ILLINOIS ACTING IN THE EXERCISE OF THEIR HOME
RULE POWERS:
SECTION ONE: That Section 18.2001, "SCHEDULE I - SPEED RESTRICTIONS," of Chapter 18
of the Village Code of Mount Prospect, as amended, is hereby further amended by deleting the
following:
Direction of Speed Limit
"Name of Street Traffic Movement (MPH) Description
Maya Lane East and Westbound 25 Between west Village limits
and Buckthorn Drive
Maya Lane East and Westbound 20 Between Aralia Drive
and Burning Bush Lane
Maya Lane East and Westbound 20 Between Oneida Lane
and Mura Lane."
SECTION TWO: That Section 18.2001, "SCHEDULE I - SPEED RESTRICTIONS," of Chapter
18 of the Village Code of Mount Prospect, as amended, is hereby further amended by inserting the
following:
Direction of Speed Limit
"Name of Street Traffic Movement (MPH) Description
Azalea Place East and Westbound 25 Entire jurisdiction
Biermann Court North and Southbound 25 Entire jurisdiction
Bishop Court East and Westbound 25 Entire jurisdiction
Burr Oak Drive East and Westbound 25 Entire jurisdiction
Business Center East and Westbound 30 Entire jurisdiction
Drive
Celtic Glen Drive East and Westbound 25 Entire jurisdiction
Chinkapin Oak East and Westbound 25 Entire jurisdiction
Drive
Eastman Court North and Southbound 25 Entire jurisdiction
Eastman Drive North and Southbound 25 Entire jurisdiction
Feehanville Lane East and Westbound 30 Entire jurisdiction
Garwood Drive East and Westbound 25 Entire jurisdiction
Highland Avenue East and Westbound 25 Entire jurisdiction
Hill Street East and Westbound 25 Entire jurisdiction
A
Direction of Speed Limit
"Name of Street Traffic Movement (MPH) Description
Holly Avenue East and Westbound 25 Entire jurisdiction
Holly Court East and Westbound 25 Entire jurisdiction
Kingston Court North and Southbound 25 Entire jurisdiction
Lakeview Court North and Southbound 25 Entire jurisdiction
Maya Lane East and Westbound 25 Entire jurisdiction
Oneida Court East and Westbound 25 Entire jurisdiction
Pin Oak Drive East and Westbound 25 Entire jurisdiction
Slawin Court North and Southbound 25 Entire jurisdiction
Wheeling Road North and Southbound 30 Between Business Center Drive
and Kensington Road
Windsor Drive North and Southbound 25 Entire jurisdiction."
SECTION THREE: That Subsection A, "STOP SIGNS," of Section 18.2004, "SCHEDULE IV-
STOP AND YIELD SIGNS," of Chapter 18 of the Village Code of Mount Prospect, as amended, is
hereby further amended by deleting the following:
Direction of
"Name of Street Traffic Movement At Intersection with
Aralia Drive North and Southbound Aztec Lane
Aspen Drive Southbound Maya Lane
Burning Bush Lane North and Southbound Euclid Avenue
Burning Bush Lane North and Southbound Wood Lane
Burning Bush Lane North and Southbound Yuma Lane
Camp McDonald Road Eastbound River Road
Highland Avenue East and Westbound Wilshire Drive
Indigo Drive North and Southbound Corktree Lane
Indigo Drive Eastbound Mandel Lane
Maya Lane East and Westbound Aralia Drive
Mura Lane North and Southbound Maya Lane
Seminole Lane Eastbound River Road
Wintergreen Avenue Westbound Park Drive
Wood Lane Westbound Mandel Lane."
SECTION FOUR: That Subsection 8, "YIELD SIGNS," of Section 18.2004, of "SCHEDULE IV -
STOP AND YIELD SIGNS," of Chapter 18 of the Village Code of Mount Prospect, as amended, is
hereby further amended by deleting the following:
"Name of Street
Lama Lane
Direction of
Traffic Movement
North and Southbound
At Intersection with
Tano Lane."
SECTION FIVE: That Subsection A, "STOP SIGNS," of Section 18.2004, of "SCHEDULE IV -
STOP AND YIELD SIGNS," of Chapter 18 of the Village Code of Mount Prospect, as amended, is
hereby further amended by inserting the following:
Direction of
"Name of Street Traffic Movement At Intersection with
Althea Lane Southbound Tano Lane
Althea Lane Northbound Wood Lane
Andoa Lane Eastbound Larch Drive
Aralia Drive Southbound Maya Lane
Aspen Drive Northbound Aztec Lane
Basswood Lane Northbound Cree Lane
Beech Road Northbound Seneca Lane
Bittersweet Lane Westbound Quince Lane
Boro Lane Southbound Tano Lane
Boro Lane Northbound Wood Lane
Buckthorn Drive Westbound Rosetree Lane
Burr Oak Drive Westbound Burning Bush Lane
Burr Oak Drive Eastbound Lama Lane
Carib Lane Eastbound Columbine Drive
Cayuga Lane Westbound Mura Lane
Celtic Glen Drive Eastbound River Road
Chinkapin Oak Drive Eastbound River Road
Cholo Lane Southbound Hopi Lane
Columbine Drive Northbound Oneida Lane
Columbine Drive North and Southbound Tano Lane
Corktree Lane Eastbound Columbine Drive
Cree Lane East and Westbound Basswood Lane
Feehanville Drive Northbound Business Center Drive
Direction of
"Name of Street Traffic Movement At Intersection with
Highland Avenue Eastbound Windsor Drive
Holly Avenue East and Westbound Eastman Drive
Holly Avenue Westbound Wilshire Drive
Hopi Lane Westbound Moki Lane
Ivy Lane Westbound Moki Lane
Kiowa Lane Northbound Ivy Lane
Lama Lane North and Southbound Tano Lane
Lama Lane Northbound Wood Lane
Laurel Drive Northbound Aztec Lane
Mandel Lane Northbound Camp McDonald Road
Mohawk Lane Eastbound Larch Drive
Mura Lane Eastbound Park Drive
Park Drive Southbound Seneca Lane
Park Drive Southbound Tano Lane
Park Drive Westbound Wood Lane
Pawnee Lane Eastbound Mura Lane
Peachtree Lane Northbound Corktree Lane
Peartree Lane Northbound Corktree Lane
Pecos Lane Northbound Kiowa Lane
Pecos Lane Eastbound Moki Lane
Pin Oak Drive Westbound Lama Lane
Pin Oak Drive Eastbound River Road
Rosetree Lane Southbound Oneida Lane
Sauk Lane Southbound Tano Lane
Sauk Lane Northbound Wood Lane
Sitka Lane Eastbound Althea Lane
Sitka Lane Southbound Tano Lane
Sumac Lane Northbound Kiowa Lane
Tano Lane East and Westbound Columbine Drive
Windsor Drive Northbound Garwood Drive
Direction of
"Name of Street Traffic Movement At Intersection with
Wintergreen Avenue Westbound Mura Lane
Wintergreen Avenue Eastbound Park Drive
Woodview Drive Westbound Mura Lane
Yuma Lane Eastbound Park Drive."
SECTION SIX: That this Ordinance shall be in full force and effect from and after its passage,
approval and publication in pamphlet form in the manner provided by law.
AYES:
NAYS:
ABSENT:
PASSED and APPROVED this day of February 2009
Irvana K. Wilks
Mayor
ATTEST:
M. Lisa Angell, Village Clerk
H:\CLKO\WIN\ORDINANCE2\CH 18-Z0NEs1,2,5and6feb2009.doc
Mount Prospect
INTEROFFICE MEMORANDUM
Village of Mount Prospect
Mount Prospect, Illinois
FROM:
MICHAEL JANONIS, VILLAGE MANAGER
DOREEN JAROSZ, ADMINISTRATIVE ASSISTANT
MICHAEL DALLAS, ADMINISTRATIVE ANALYST
FEBRUARY 11, 2009
CHAPTER 13 (LIQUOR CODE) - FIRST READING
TO:
DATE:
SUBJECT:
PURPOSE
To obtain the Village Board's approval to replace Chapter 13 of the municipal code entitled "Alcoholic Liq
with a comprehensive revision that addresses many of today's business practices as it relates to the service of
liquor, as well as presents the regulations in a more organized and concise manner.
BACKGROUND
On January 13 and January 27, 2009, the Village Board reviewed the revised version of Chapter 13 (Liquor) of
the municipal code. During the meeting, Everette Hill, the Village Attorney, thoroughly explained the new
liquor license classifications, permits and certifications, and identified the new and deleted provisions. During
the committee-of-the whole meetings, the Village Board raised several concerns, some of which required
revisions to the proposed Liquor Code.
DISCUSSION
The revised version of the Liquor Code now addresses many of the demands requested by businesses, civic
and non-profit organizations, while balancing the safety and welfare of the community. Moreover, the Liquor
Code is now more organized and a little more user-friendly.
e revised version of the Liquor Code.
Doreen Jam
Administrative Assistant
ichael Dallas
Administrative Analyst
MCD/dj
c: I rvana Wilks, Mayor
Dave Strahl, Assistant Village Manager
Everette Hill. Village Attorney
H:\VILMIMDallas\Liquor License\Process Improvement\Board Meetings\Revised Liquor Code - First Reading 2-17-09.doc
...
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 13
OF THE VILLAGE CODE OF MOUNT PROSPECT
BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES
OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS
ACTING IN THE EXERCISE OF THEIR HOME RULE POWERS:
SECTION ONE: Chapter 13 entitled "Alcoholic Liquors" of the Village
Code of Mount Prospect, as amended, is hereby further amended by deleting
Chapter 13 in its entirety and adding a new Chapter 13 entitled "Alcoholic
Liquors" to be and read as follows:
ARTICLE I
DEFINITIONS
13.101 :
WORDS AND PHRASES:
Unless the context otherwise requires, the following terms shall be construed
according to the definitions set forth below.
ACTING IN THE COURSE OF BUSINESS: Any action taken by a person at a
business premises in the Village, or in furtherance of a business purpose in the
Village.
ADULT: Any person who has attained his or her 21st birthday.
ALCOHOL AWARENESS TRAINING: Training, with respect to over serving of
drinks, identifying intoxicated customers, proof of age and other safety factors,
provided by an accredited agency that is approved by the Commissioner, for the
purpose of educating persons who serve, deliver or provide alcoholic beverages.
ALCOHOLIC BEVERAGES OR LIQUOR:
A. Any spirits, wine, beer, ale or other liquid intended as a beverage and
containing more than one-half of one percent (0.5%) of alcohol by volume.
B. Any beverage containing any scientifically detectable trace of alcohol and
commonly known as "near beer", "nonalcoholic beer", or "nonalcoholic wine",
whose taste, color, odor and consistency are similar to the alcoholic beverages
k
..
known as beer and wine and, except for the reduced alcohol content, is marketed
as being similar to beer or wine.
BANQUET FACILITY: A food service facility whose primary business is the
hosting of parties, celebrations and events which are attended by specific
invitees of a specific host as opposed to "drop-in" or reservation dining by the
general public.
BAR: A barrier or counter, at and over which alcoholic beverages are opened,
poured, prepared or served. (See also "Customer Bar" and "Service Bar".)
BEER: A beverage obtained by alcoholic fermentation or infusion in a brew or
concoction of barley or other grain, malt or hops, in water. This includes beer,
light beer, ale, stout, lager beer, porter and other similar brews.
BOTTLE CLUB: A type of service of spirits in which the spirits are purchased by
the customer and then kept at a licensed premises for use or consumption by the
customer on subsequent visits.
CATERER: A person who, for compensation, provides food and service for a
banquet, dinner or other special occasion where the recipients of the food or
service are specifically invited to each particular event. (See 13.204(L) and (P)4
and 5)
CERTIFICATION: That specific grant of the privilege and authority, pursuant to
the exact requirements of this Chapter, to a person for the service of alcoholic
beverages in the manner set forth in the text of a designated classification.
CONTROL OF PREMISES: The legal or beneficial ownership, rental, lease or
licensure shall constitute control of property. Control may also exist where none
of the aforesaid legal relationships apply, but where an adult occupies or is
otherwise in charge of or charged with the supervision of a particular premises.
CORKAGE: The bringing of an alcoholic beverage, by a patron, into a place of
business for the purpose of consuming the alcoholic beverage on the premises.
CUSTOMER BAR: A bar on a licensed premises that is open for actual visiting
by, seating for or service to the customer.
DRAM SHOP INSURANCE: That insurance required of every licensee, the
purpose of which is to insure the licensee against the statutory liability imposed
by the Illinois Liquor Control Act.
ENTERTAINMENT: Any playing of pre-recorded music or voices or any live act
or performance whether or not using sound amplification.
2
FALSE IDENTIFICATION: Any document used for identification or proof of age
that has been altered or that contains false or misleading information or that
contains a name that is not the actual name of the person using it.
FIGHTING: Any threatening or touching of another person which provokes or
tends to provoke a breach of the peace. This shall include, but not be limited to,
any disputatious physical action between or among persons.
FLIGHT OF WINE: A single serving of a variety of wines in small glasses.
GENERAL PUBLIC: The whole body politic including the people of the
neighborhood, the Village, the State of Illinois, the United States of America,
and/or persons at large traveling through the Village, as distinct from the
designation of a particular person or group of persons.
HOSPITALITY SUITE OR ROOM: A suite or room at a hotel in which an
orqanization sponsorinq an event at the hotel offers alcoholic beveraqes without
charqe to reqistered quests of the sponsorinq orqanization.
HOST LIABILITY INSURANCE: A typical business insurance coverage that
protects an owner against claims that his or her business or premises caused
damage or injury or caused liability to accrue to a business invitee.
HOTEL: Every building or other structure, kept, used, maintained, advertised and
held out to the public to be a place where sleeping accommodations are offered
for pay to travelers and guests, whether transient, permanent or residential, in
which twenty five (25) or more rooms are used for sleeping accommodations and
where dining rooms are maintained in the same building or buildings.
IMPAIRMENT: Any diminution or compromise of a person's physical, mental or
perceptual abilities due to the consumption of an alcoholic beverage. Impairment
does not require that the blood alcohol content be in excess of any particular
gram of alcohol to milliliters of blood or breath ratio.
LICENSE OR LIQUOR LICENSE: That specific grant of the privilege and
authority, pursuant to the exact requirements of this chapter, to a person to
deliver alcoholic beverages in the manner set forth in the text of a designated
classification. License, as used in this Chapter 13 shall, in applicable
circumstances, include any permit or certification pursuant to Section 13.204.
LICENSED PREMISES: The building and land at the address for which the
license is issued. For purposes of determining parameters of the location where
an act is prohibited by this Chapter 13, Licensed Premises shall include all off
street parking, any public property immediately adjacent to the private address
and the entirety of the contiguous property owned by the same entity owning the
licensed premises. For purposes of determining the parameters of the location
where an act is permitted by this Chapter 13, Licensed Premises shall mean only
the interior of the building at the licensed address unless an outdoor or other
3
permit or certification specifically allows for activity on the exterior of the
premises.
LICENSE TERM: The time between the issuance or renewal of a license and its
expiration date.
LICENSEE: That person who has been issued a liquor license, permit or
certification by the Commissioner. For purposes of actions required of or
prohibited of a licensee, this shall include the holder of a Mount Prospect liquor
license and any officer, principal, employee or agent of the license holder.
LOCAL LIQUOR CONTROL COMMISSIONER: The office of the mayor or the
president of the Village, including appropriate legal counsel. This may include
such other persons as the mayor may appoint, either by written policy or practice,
to aid in the exercise of the powers and the performance of the duties of the
Local Liquor Control Commissioner. The Local Liquor Control Commissioner will
be referred to as the "Commissioner" in this Article.
LOUNGE: That portion of a licensed restaurant or club that is not part of the main
dining area, where a customer bar and other seating is located, and that is kept,
used, maintained, advertised and held out to the public as a place where
alcoholic beverages may be consumed.
MAINTENANCE OF ORDER STANDARD: That standard by which it shall be
determined whether a licensee has maintained order on the licensed premises. It
shall generally be stated as the establishment and maintenance of the optimum
precautions and actions that are practical for deterring and preventing "fighting"
as defined in this chapter.
MANAGER: That sole natural person, on the licensed premises, who is charged
with the supervision, oversight and management of the entire business and
physical premises.
OPERATION OF A MOTOR VEHICLE: The operation or control of a motor
vehicle anywhere in the Village of Mount Prospect, whether on private or public
property. To be in physical control, the person need not be actually driving the
motor vehicle and the vehicle need not be running. If there is only one person
inside of a motor vehicle, that person shall be presumed to be in physical control
regardless of the person's location within the vehicle. If there is only one person
in a front seat or front passenger area of a motor vehicle, that person shall be
presumed to be in physical control regardless of the person's location in the front
passenger area. If there is more than one person in the vehicle, but not in the
front passenger area, the owner of the vehicle or the person to whom permission
was given to operate the vehicle, shall be presumed to be in physical control of
the vehicle.
ORIGINAL PACKAGE: Any bottle, flask, jug, can, cask, barrel, keg, hogshead or
other receptacle or container that is used, corked or capped, sealed and labeled
4
by the manufacturer of alcoholic beverages to contain and to convey any
alcoholic beverages. Original package means that the container must not be or
have been opened or unsealed.
PARENT: A natural or adoptive parent or a court designated guardian.
PERMIT: That specific grant of the privilege and authority, pursuant to the exact
requirements of this chapter, to a person to serve alcoholic beverages in the
manner set forth in the text of a designated permit classification.
PRIVATE CLUB: A not-for-profit corporation supported by the dues of its
members and organized solely for the promotion of some common objective
other than the sale or consumption of alcoholic beverages.
RESTAURANT: Any public place maintained, and held out to the public as a
place primarily devoted to being a full service dining establishment at which the
service of alcoholic beverages is incidental and complementary to the service of
such meals. Limited food service, as typically provided by drive-in restaurants,
luncheonettes, diners, coffee shops, fast food operations and similar uses, does
not satisfy the requirements of this definition.
SERVICE BAR: A bar on a licensed premises that is not open for actual visiting
by or seating for the customer, but is used solely as a drink preparation area for
servers.
SERVICE OF ALCOHOLIC BEVERAGES (OR "SERVICE"): The sale, delivery,
giving, service, providing or exchange of an alcoholic beverage from one person
to another. Service of alcoholic beverages is meant to include the provision of
any alcoholic beverage by whatever means by one person to another. This
definition includes being an employee who actually serves alcoholic beverages or
who is a cashier at a licensed premises. Service of alcoholic beverages by any
Class P licensee shall generally be referred to as "delivery of alcoholic
beverages."
SERVICE OF ALCOHOLIC BEVERAGES FOR VALUE: The service of alcoholic
beverages for any consideration of any nature. This shall include, without
limitation, the inclusion of alcoholic beverages in a single price of admission
and/or in the price of a ticket and/or the price of a meal, even if for charitable
purposes.
SERVICE OF ALCOHOLIC BEVERAGES (REGULATED): This is the type of
service of alcoholic beverages that is regulated by this Chapter. Regulated
service generally includes the following: service at any location within the
Village: (1) for value; or (2) to the public from a business venue; or (3) in the
course of business; or (4) or at a civic event; or (5) through a paid bartender at
any location other than a private home. Also referred to as "Regulated Service."
5
SPIRITS: Any beverage which contains alcohol obtained by distillation, mixed
with water or other solution and includes brandy, rum, whiskey, gin or other
spirituous beverages and such beverages when rectified, blended or otherwise
mixed with alcohol or other substances.
UNDERAGE PERSON: Any person who has not attained his or her 21st birthday.
VICARIOUS LIABILITY: That liability which is implied as a matter of law even
though the person may not have directly caused an injury or property damage.
WINE: Any alcoholic beverage obtained by the fermentation of the natural
contents of fruits or vegetables containing sugar, including such beverages when
fortified by the addition of alcohol or "spirits", as above defined. (Ord. 4664, 8-16-
1994; amd. Ord. 5491,6-7-2005)
ARTICLE II
LICENSING FOR REGULATED SERVICE OF
ALCOHOLIC BEVERAGES
13.201 :
LICENSE REQUIRED FOR REGULATED SERVICE:
A. It shall be unlawful to engage in regulated service of any alcoholic
beverage without first having obtained a Village liquor license. Every person
engaged in regulated service of alcoholic beverages in the Village shall obtain
the appropriate liquor license authorizing the service of the specific type and
character of alcoholic beverages and the specific type of business or activity at
which it may be provided. The fee to be paid for such licenses shall be as set
forth in Appendix A, Division II of this Code.
B. Except for a temporary Village permit or a management entity certification,
there shall be no service of alcoholic beverage by the licensee until the licensee
has obtained a liquor license required by the state for the service of alcoholic
beverages.
C. All licenses, permits, certifications and/or placards issued pursuant to this
chapter shall be displayed in a prominent place that is visible to patrons. (Ord.
4664,8-16-1994; amd. Ord. 4801, 7-2-1996)
13.202:
APPLICATION FOR A LOCAL LIQUOR LICENSE:
A. Application for a local liquor license shall be made to the Commissioner.
The application shall be upon forms provided by the Commissioner. Only
completed forms may be considered. Each application shall be accompanied by
the nonrefundable application fee and the applicable license fee as set forth in
Appendix A, Division II of this Code.
6
B. Upon issuance of any license, the licensee shall provide written notice to
the Commissioner of any change in any information set forth in the application
within thirty (30) days of the change.
C. Before any license may be issued to an applicant each stockholder
owning an aggregate of more than (1) five percent (5%) of the stock of a closely
held corporation; or (2) 25% of the stock of a publicly traded corporation; and
each manager, member and officer shall be fingerprinted by the Mount Prospect
Police Department. An investigation will be performed to enable the
Commissioner to ascertain whether the issuance of a license will comply with all
applicable regulations of the Village. If the applicant is a publicly traded
corporation, the Commissioner may accept the fingerprints from another
jurisdiction for persons not residing or working within fifty (50) miles of the
Village. Under all circumstances, however, the local manager must be
fingerprinted by the Mount Prospect Police Department. A reasonable fee may
be charged by the Police Department for each person required to be
fingerprinted. (Ord. 4664, 8-16-1994; amd. Ord. 5189, 5-15-2001)
D. No license may be issued until all information and documentation required
in the application has been provided. All of the reports from the various
departments and agencies with respect to background checks must be
completed and all fees must be paid. The foregoing notwithstanding, the
Commissioner may, at the Commissioner's sole discretion, issue the license prior
to the completion of a background check under the following circumstances:
1. The Police Department believes the background check will be
completed within ninety (90) days.
2. No information is currently available which would indicate that the
applicant would be ineligible for a license.
3. The applicant has demonstrated to the satisfaction of the
Commissioner that the immediate issuance is necessary to assure the viability of
the business.
4. The Commissioner retains the absolute right to revoke the license,
without a hearing, if subsequently discovered information would, in the sole
discretion of the Commissioner, have made the licensee originally ineligible for
the license.
5. The licensee executes a release and hold harmless statement that
is satisfactory to the Village Attorney and absolutely absolves the Village, its
officers or employees of any liability if the Commissioner subsequently revokes
the license based on completion of the background check. (Ord. 4664, 8-16-
1994)
E. By accepting a Village liquor license, the licensee consents to the service
of process and the acceptance of any other document by or on any employee or
7
agent of the licensee or the posting of the process or document on any entrance
to the licensed premises.
13.203:
RESTRICTIONS ON ISSUANCE OF LICENSES:
A. No liquor license may be issued to any of the following: (1) A partnership;
(2) A sole proprietorship; (3) A corporation that is not either incorporated in
Illinois or qualified and registered under the Illinois Business Corporation Act to
transact business in Illinois; provided that this limitation shall not apply to a
Temporary Promotion Permit.
B. No liquor license may be issued to any entity:
1. Whose business is conducted by a manager or agent who is not an
actual employee of the licensee, unless such manager or agent possesses a
management entity certification.
2. Which does not legally or beneficially own the premises for which a
license is sought, or does not have a lease for the full period for which the license
is to be issued.
3. Which is a limited liability corporation whose members are
corporations and not natural persons.
4. Which does not hold a valid Mount Prospect class II business
license for the premises as required by this Code.
5. To which a federal gaming device stamp or a federal wagering
stamp has been issued for the current tax period.
6. Not eligible for a state retail liquor dealer's license.
7. Does not designate a manager for the premises.
8. If a manager, officer, director, member or five percent (5%) or
greater shareholder:
a. At the time of application for renewal of a liquor license
would not have been eligible for a license upon a first application.
b. Has been issued a federal gaming device stamp or federal
wagering stamp for the current tax period.
c. Is an employee or elected official of the Village.
9. Which, upon review of the application taken as a whole, by the
Commissioner, is deemed by prior actions as indicated from the application or
8
background check to be a substantial risk of not abiding by the regulations of the
Village.
C. No liquor license may be issued in any of the following circumstances
unless the Local Liquor Control Commissioner issues a written determination that
it is in the best interests of the Village that the license be issued despite the
circumstances and that such circumstances will not be a detriment to the health,
safety and welfare of the Village.
a. Has been found guilty of (i) any felony at any time; (ii) any
offense, within the past two (2) years involving the sale, use or possession
of alcoholic beverages or controlled substances; (iii) any other crime, at
any time, if, upon due investigation, the Commissioner determines that
such individual has not been sufficiently rehabilitated to warrant the public
trust; (iv) any violation, at any time, of any federal or state law concerning
the manufacture of alcoholic beverages; (v) any gambling offense as
prescribed by Subsections (a)(3) through (a)(10) of Section 5/28-1 of, or
as prescribed by Section 5/28-3 of, the Criminal Code of 1961, approved
July 28, 1961, as amended, or as prescribed by statute replacing any of
these statutory provisions.
b. Has previously had a liquor license revoked in this or any
other jurisdiction.
13.204:
CLASSIFICA liONS:
A. Licenses.
Liquor licenses in the Village shall be divided into the following Classifications:
1. Package Licenses (P):
Class P-1
Class P-2
Class P-3
Class P-4
Class P-5
General Package License
Super Market Package License
Wine and Beer Only Package License
Wine Only Package License
Home Delivery License
2. Food Service Licenses (F):
Class F-1
Class F-2
Class F-3
Class F-4
Class F-5
Class F-6
Restaurant Without Lounge License
Restaurant, Wine and Beer Only License
Restaurant With Lounge License
Private Club License
Banquet Facility License
Golf Course License
3. Specialty Licenses (S):
9
Class S-1
Class S-2
Class S-3
Class S-4
Class S-5
Hotel License
Bowling Alley License
Tavern License
Gourmet Beverage Shop License
License With Special Conditions
B. Permits.
1. Temporary
Civic Permit
Library Permit
Village Permit
Non-Mount Prospect Caterer's Permit
Mount Prospect Caterer's Permit
Daily Sampling Permit
Outdoor Entertainment Permit
Promotion Permit
2. Annual
Mount Prospect Caterers Permit
C. Certifications.
Outdoor Certification
Management Entity Certification
13.204.1
DESCRIPTIONS AND RESTRICTIONS:
The restrictions on a particular license, permit or certification classification shall
be binding on the licensee and no premises or activity may be operated in
violation of the classification restrictions and regulations. (Ord. 4664,8-16-1994;
amd. Ord. 4801, 7-2-1996; Ord. 4995, 2-16-1999; Ord. 5189, 5-15-2001; Ord.
5258,6-18-2002; Ord. 5482, 3-15-2005; Ord. 5491,6-7-2005; Ord. 5556,4-18-
2006; Ord. 5574, 7-5-2006) No license, permit or certification may be issued
unless the applicant's business is specific to one of the following classifications:
A. Class P License (Package)
1. Restrictions Applicable to All Class P Licenses:
a. Consumption and/or allowing consumption on the premises
where sold is prohibited. (See paragraph D(6) of this section for special
daily sampling events.)
10
b. The licensee is prohibited from selling or offering for sale
single containers of refrigerated or chilled alcoholic beverages where the
single container has a capacity of less than seven hundred fifty milliliters
(750 ml). (Ord. 4664,8-16-1994)
c. A Class P licensee may sell gasoline for motor
vehicles only if the sale of gasoline takes place at a
building or structure that is physically separated from the
licensed premises.
d. Except for a duly permitted daily sampling, it shall be
unlawful for the holder of any Class P license to deliver alcoholic
beverages in any container other than its original sealed and unopened
package. (Ord. 4664, 8-16-1994; amd. Ord. 5189, 5-15-2001; Ord. 5610,
1-16-2007).
2. Specific Class P Licenses
a. General Package License. Class P-1 for delivery of all
alcoholic beverages in an original sealed package. Regulations specific to
Class P-1 license:
i. Under no circumstances shall there be more than five
Class P-1 general package licenses outstanding at any time.
ii. The license may not be issued for a premises whose
primary business is the sale of groceries or other products.
b. Supermarket Package License: Class P-2, for delivery of
alcoholic beverages in an original package only, at a premises where the
primary business is the sale of grocery and related products. Regulations
specific to a Class P-2 license:
A Class P-2 licensed premises shall contain not less than
ten thousand (10,000) square feet of floor area.
c. Wine And Beer Only Package: Class P-3, for the delivery
only of wine and beer in its original package. Regulations specific to the
Class P-3 license:
No Class P-3 license shall be issued for a premises
whose primary business is the sale of groceries or other products
not related to the sale of alcohol unless the premises occupies at least ten
thousand (10,000) square feet of floor area.
d. Wine Only Package License: Class P-4, for delivery only of
wine in its original package. Regulations specific to a Class P-4 license:
11
No Class P-4 license shall be issued for a premises
whose primary business is the sale of groceries or other products
unless the premises occupies at least ten thousand (10,000)
square feet of floor area.
e. Home Delivery License; Class P-5, for the storage or
loading within the Village of alcoholic beverages that are to be delivered to
residences. Regulations specific to Class P-5 License.
i. Only beer and wine may be delivered within the
Village pursuant to a Class P-5 license.
ii. Delivery within the Village must be made directly into
the hands of an actual individual and may not be "dropped off" at an
address.
B. Class F Licenses (Food Service).
1. Restrictions Applicable to All Class F Licenses:
a. The premises shall be primarily devoted to the preparation,
cooking and serving of meals.
b. The premises must have a kitchen, dining room, staff and
equipment as deemed adequate by the Village Health Authority.
c. Full food service including dinner and/or luncheon menus
shall be offered at all times while alcoholic beverages are served.
d. See paragraph D(2)b(i) of this section for off-site catering
privileges.
e. See paragraph E-1 of this section for outdoor service of
alcoholic beverages at establishments that are within 300 feet of a
residential zoning district and Section 14.311 (B) of the Zoning Ordinance
for regulation of outdoor dining areas in other parts of the Village.
f. See D(2)a(i) of this Section and Section 13.408 for the
holding of events for civic organizations.
g. Spirits may not be sold, delivered or served by the bottle.
2. Specific Class F Licenses:
a. Restaurant without Lounge License: Class F-1, for service
of alcoholic beverages at a restaurant. Regulations specific to a Class F-1
license:
12
i. Consumption or allowing of consumption of alcoholic
beverages at any place other than dining tables is specifically
prohibited.
ii. Service of alcoholic beverages shall be limited to
those patrons dining in the restaurant.
b. Restaurant, Wine And Beer Only License: Class F-2, for the
providing of beer and wine only at a restaurant. Regulations specific to a
Class F-2 license:
i. Consumption or allowing of consumption of alcoholic
beverages at any place other than dining tables is specifically
prohibited.
ii. Service of alcoholic beverages shall be limited to
those patrons dining in the restaurant.
c. Restaurant With Lounge License: Class F-3, for providing of
alcoholic beverages by restaurants maintaining a separate lounge area.
Regulations specific to the Class F-3 license:
i. Alcoholic beverages delivered in the restaurant
portion of the premises shall be limited to those patrons dining in
the restaurant.
ii. Alcoholic beverages may be served in the lounge
portion of the premises with or without the service of food.
iii. The total lounge area shall be no more than fifty
percent (50%) of the floor area of the premises.
d. Private Club License, Class F-4 for providing of alcoholic
beverages at a Private Club. Regulations specific to a Class F-4 license:
i. Service of alcoholic beverages may be only to (a)
members; and (b) to guests of a specific member if that member is
also on the premises.
ii. The organization must own or lease a premises of
sufficient size and character for the reasonable and comfortable
use and accommodation of its members and their guests.
iii. The licensee's affairs and management must be
conducted by a board of directors, executive committee or similar
body chosen by the members at an annual meeting.
13
iv. No member or any officer, agent or employee of the
club may be paid or directly receive as compensation, any profits
from the distribution or sale of alcoholic beverages at the club,
beyond the amount of such salary as may be fixed and voted at
any annual meeting by the members or by its board of directors or
other governing body out of the general revenue of the private club.
e. Banquet Facility License, Class F-5 for the service of
alcoholic beverages at private events at the banquet facility. Regulations
specific to a Class F-5 license:
Consumption of alcoholic beverages at or over a bar shall be
permitted, but all consumption shall be limited to those patrons who are
guests invited specifically to the private event.
f. Golf Course License, Class F-6, for the service of alcoholic
beverages at golf courses. This license shall include service in a club
house restaurant, a club house lounge, service from licensee owned carts
on the golf course, service at any other snack or food facility on the course
and at events on the golf course grounds. Regulations specific to a Class
F-6 license:
i. If the golf course also offers regular meal service in a
restaurant type of facility, then the regulations applicable to the
appropriate Class F license shall apply to that restaurant facility.
ii. If the golf course does not operate a restaurant
facility, but operates a lounge, the regulations applicable to an S-3
license shall apply to the lounge.
C. Specialty Licenses:
See D(2)a(i) of this Section and Section 13.408 for the holding of events
for civic organizations.
1. Hotel License: Class S-1, for the service of alcoholic beverages to
guests of the hotel. Regulations specific to the Class S-1 license:
a. Alcoholic beverages may be served, consumed or
allowed to be consumed only in guest rooms, hospitality suites and other
areas of the hotel that are designed, designated and used as lounges or
food service areas.
b. If the hotel Premises is used for private events, then the
regulations applicable to Class F-5 (Banquet Facility) shall apply.
14
c. If the hotel also offers regular meal service in a restaurant or
restaurant type of facility, then the regulations applicable to the
appropriate Class F license shall apply to that restaurant facility.
d. If the restaurant is operated by a person other than the
licensee, the Commissioner shall have the sole authority to determine
whether a management entity certification or a Class F license is required.
e. Absolute liability and responsibility shall attach to the S-1
licensee if any alcohol is consumed by a minor at any location within or on
the hotel premises, including any in-room bar or refrigeration units.
f. Except for the stocking and use of in room bar or
refrigeration units, spirits may not be sold, delivered or served by the
bottle.
2. Bowling Alley License: Class S-2, for service of alcoholic beverages
at a bowling alley. Regulations specific to a Class S-2 license:
a. The premises must operate as a bowling alley with full
bowling facilities.
b. Alcoholic beverage service must be incidental to bowling.
c. The lounge area may comprise no more than twenty five
percent (25%) of the floor area.
d. Food service must be available to patrons at all times when
alcoholic beverages are served.
e. Spirits may not be sold, delivered or served by the bottle.
3.
Licenses.
Tavern License: Class 8-3. Restrictions specific to Class S
a. Food service such as snacks, hors d'oeuvres and/or similar
food items shall be available at all times in quantities sufficient to serve all
patrons of the premises.
b. See paragraph D(2)b(i) of this section for off-site catering
privileges.
c. Spirits may not be sold, delivered or served by the bottle.
4. Gourmet Beverage Shop License, Class S-4. The regulations
governing Class P (Package License) shall apply, except as follows:
15
a. A Gourmet Beverage Shop License shall be available only in
a B-5 zoning district.
b. No spirits, as defined by this Chapter 13, may be served.
c. Glasses or flights of wine may be served on the licensed
premises under the following conditions:
i. Hors d'oeuvres must be available for consumption
with the wine.
ii. No more than 10 ounces of wine may be served to
any individual during any day.
iii. Each glass or flight of wine may contain no more than
5 ounces.
d. A Class S-4 license may conduct off-premises wine tasting
upon securing a Daily Sampling Permit and in accord with the regulations
for such permit. On-premises samplings do not require a Daily Sampling
Permit, but must be conducted in accord with the regulations of this
13.204.1 (D)(2)(b)(ii).
e. A Class S-4 license may serve wine and beer at a civic
event not on the S-4 licensed premises the organization sponsoring the
civic event has obtained a Temporary Civic Permit.
f. A Class S-4 license may serve wine (but not beer) at a
Mount Prospect licensed business which does not otherwise possess a
Mount Prospect liquor license under the following conditions:
i. Such service may take place at a promotional event
inside the business premises only.
ii. The business must have obtained a temporary
Promotion Permit.
iii. Such service at any single business may be made at
not more than two such events in any license term;
iv. The S-4 license may not conduct such service for a
total of more than twenty times in any license term. The licensee
shall notify the Commissioner, in writing, not less than fourteen
days in advance of any such service event.
5. License With Special Conditions: Class S-5: The corporate
authorities may, from time to time, create conditional licenses which are based
on the license classifications set forth above, but which contain additional
16
conditions and restrictions. These licenses with special conditions, while created
by the corporate authorities, shall remain subject to issuance by the
Commissioner.
D. Permits; Temporary. Temporary Permits are divided into the
classifications set forth below.
1. Regulations applicable to all Temporary Permits:
a. The Commissioner may attach such conditions as are
appropriate for a temporary permit.
b. For temporary permits, the Local Liquor Control
Commissioner, in his or her sole discretion, may accept host liability
coverage as a substitute for Dram Shop Insurance.
c. Unless otherwise stated, there shall be a daily permit fee as
set forth in Appendix A, Division II of this Code.
d. All other regulations of this Chapter shall apply to the permit.
2. Specific Temporary Permits:
a.
license:
Permits not requiring an existing Mount Prospect liquor
i. Civic Permit: A permit for the service of alcoholic
beverages by any nonprofit organization or club having a bona fide
address within the Village such as a church, fraternal order or
lodge, veterans' organization, civic organization or other similar
organization. Regulations specific to the Civic Permit:
(a) The service of alcoholic beverages may be
done only at a special event sponsored or given by the
organization for the sole benefit of the organization.
(b) Each day of the event shall require a permit.
(c) No more than twelve (12) such permit days
shall be available to anyone such organization during a
license term.
(d) The licensee must obtain a State of Illinois
Special Event Permit.
(e) See Section 13.408 for additional regulations.
17
ii. Library Permit: A permit for the Mount Prospect
Library Board of Trustees for service of alcoholic beverages.
Regulations specific to a Library Permit:
Service and consumption may take place only on the
premises of the Mount Prospect Public Library, 10 South Emerson
Street.
iii. Village Permit: A permit for the service of beer and
wine at Village sponsored or Village hosted events. Regulations
specific to a Village Permit:
The event must be on Village property.
iv. Non-Mount Prospect Caterer's Permit: A permit for
the service of alcoholic beverages, at an otherwise unlicensed
premises, by a caterer not possessing a Mount Prospect liquor
license. Regulations specific to a Non-Mount Prospect Caterer's
Permit:
(a) The caterer must possess a valid liquor
license from another Illinois jurisdiction.
(b) The caterer may serve alcoholic beverages
only at events to which specific persons (not the general
public) have been previously invited or at a Village
sponsored event.
(c) The permit shall be subject to such other
conditions as may be established by the Commissioner.
b. Permits Requiring an Existing Mount Prospect License.
i. Mount Prospect Caterer's Permit: A permit for the
service of alcoholic beverages, at an otherwise unlicensed
premises, by a Mount Prospect Class F licensee. Regulations
specific to a Mount Prospect Caterer's Permit:
(a) The caterer may serve alcoholic beverages
only at events to which specific persons (not the general
public) have been previously invited or at a Village
sponsored event.
(b) A Mount Prospect Caterer's Permit may be
purchased on an annual or daily basis.
(c) The permit shall be subject to such other
conditions as may be established by the Commissioner.
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ii.. Daily Sampling Permit. A permit allowing the holder
of any Class P or Class S-4 license, to serve wine or beer, without
charge, in small and limited amounts, for sampling purposes only
and in conjunction with sales promotional efforts occurring on the
licensed premises. (See 13.204(c)4(d) for exceptions). Regulations
specific to a Daily Sampling Permit:
(a) The sampling shall be attended and supervised
by a full time adult employee and may occur only in a
designated area on the licensed premises;
(b) The actual amount of beer or wine sampled by
an individual may not exceed one ounce;
(c) The sample shall be served in a single use
container which shall be disposed of following the sampling;
(d) There shall be no signs or other materials that
are advertising the availability of "sampling" visible outside
the licensed premises; and
(e) Quantities may not exceed a total of ten (10)
ounces per customer per day.
iii. Temporary Outdoor Entertainment Permit. A permit
allowing outdoor live music for a Class F licensee. Regulations
specific to a Temporary Outdoor Entertainment Permit:
(a) Each licensee shall be limited to one event per
year, not to exceed seventy-two (72) hours in duration.
(b) The application for such event must be filed not
less than thirty (30) days prior to the event.
(c) No such live music may be played between the
hours of eleven o'clock (11 :00) P.M. and eleven o'clock
(11 :00) A.M.
(d) The Commissioner may attach such other
conditions to the permit as may be advisable to protect the
peace and quiet of the surrounding area.
(e) The Commissioner, the Village Manager or a
designate of either, shall have the absolute right for cause,
and without the necessity of a hearing, to order the
immediate cessation of such live music. (Ord. 4664,8-16-
1994 )
19
iv. Promotion Permit. A permit allowing a retail
establishment to serve beer or wine at a promotional event.
Regulations specific to a Temporary Promotion Permit:
(a) The promotion may be held at only one
location within the Village.
(b)
permit.
Each day of the promotion shall require a
(c) Permits shall not be issued for more than three
(3) consecutive days.
(d) All alcoholic beverage service and
consumption must take place within the area specified in the
Permit.
(e) There may be no charge of any kind for the
alcoholic beverage.
(f) No more than two such promotions at a
particular premises shall be eligible for such a permit in any
one year time period.
E. Certifications.
1. Specific Certifications:
a. Outdoor Certification for allowing outdoor service of alcoholic
beverages (for other Outdoor Dining regulations, see Section 14.311(8) of
the Mount Prospect Village Code). Regulations specific to Outdoor
Certificates:
i. For establishments within 300 feet of a residential
zoning district.
(a) Any licensee that commenced the conduct of
the business of serving alcoholic beverages in an outdoor
area within three hundred feet (300') of a residential zoning
district prior to January 1, 1989, may be granted an Outdoor
Certification and continue to operate the outside service area
in that same location. However, that service area may not
be enlarged in any manner.
(b) The Commissioner may grant an Outdoor
Certification for the service of alcoholic beverages in an
outdoor service area that is within three hundred (300') feet
20
of a residential zoning district but does not meet the criteria
of subsection (a) above, subject to the following:
(i) The outdoor service area is on property
owned or leased by the licensee and is on or
immediately adjacent to the building on the licensed
premises;
(ii) Prior to issuance of such Outdoor
Certification, the applicant shall show proof that
written notice has been sent by regular mail to all
residential property addresses within three hundred
feet (300') of the licensed premises. The notice shall
inform such addressee of the licensee's intent to
secure a special permit for the outdoor service of
alcoholic beverages. The form of notice shall be
supplied by the Village Manager and shall invite
comment on the proposed use from the affected
property owners or occupiers;
(iii) The Commissioner has made a
determination that the outdoor service area will not
have a detrimental effect on the neighborhood in
which the premises is located;
(iv) The Commissioner may place such
conditions on the outdoor service area as she or he
may deem appropriate;
(v) Such an Outdoor Certification may be
revoked at any time if the Commissioner reasonably
believes that the operation of the outdoor area has
become detrimental to the neighborhood in which it is
located. Upon such revocation, the licensee may not
reapply for an Outdoor Certification for a period of
twelve (12) months following the date of revocation;
(vi) An Outdoor Certification shall be
available only to the holder of a Class F-1, Class F-2
or Class F-3 liquor license;
(vii) An Outdoor Certification may be granted
only upon receipt by the Commissioner and approval
by the Village attorney of a statement signed by the
licensee, acknowledging and accepting the terms of
the Certification; and
21
(viii) An Outdoor Certification is not
transferable and if there is any change in five (5%)
percent or more of ownership of the business, a new
special permit must be obtained by the licensee. (Ord.
4664,8-16-1994; amd. Ord. 4887, 9-16-1997; Ord.
5066, 12-21-1999; Ord. 5562, 5-16-2006)
ii. For establishments that are more than 300 feet from a
residential zoning district: The regulations of Section 14.311 (8) of
this Code shall apply.
b. Management Entity Certification allowing for the certification
of an entity to be retained to manage a licensed premises. It is recognized
that a licensee may, from time to time, desire to hire or retain, as an
independent contractor, a management entity to manage, generally
operate and be responsible for the licensed premises. Regulations
specific to a Management Entity Certification:
i. No licensee shall permit a management entity to
perform such a function unless the management entity has been
certified to do so by the Commissioner. In order to be certified by
the Commissioner, a management entity must execute a liquor
license application. A management entity must qualify for a
Management Entity Certification in the same manner and meet the
same standards as a licensee.
ii. The application shall be accompanied by a
nonrefundable application fee as set forth in Appendix A, Division II
of this Code, and no management entity may be qualified unless a
certification fee as set forth in Appendix A, Division II of this Code,
has been paid.
iii. A management entity shall be subject to the
jurisdiction of the Commissioner in the same manner as a licensee.
If there is a violation on the premises, the management entity
and the licensee shall be jointly and severally responsible for all
consequences of such a violation. (Ord. 4664,8-16-1994; amd.
Ord. 5189, 5-15-2001)
iv. An underlying Village liquor license must previously
have been obtained for the premises.
13.205:
NUMBER OF LICENSES:
A. The corporate authorities shall determine, by ordinance, the number of
licenses that are available in each classification. (This limitation shall not apply to
Temporary Permits and Certifications, which documents shall be solely within the
discretion of the Commissioner). Neither the Commissioner nor any other person
22
or entity may issue liquor licenses in a number that is in excess of the number
authorized by the corporate authorities. A schedule of the currently authorized
number of licenses available in each classification shall be maintained by the
Village Manager for the Commissioner.
B. The corporate authorities may decrease the number of licenses available
in any or all classifications within the Village. If the number of licenses in any or
all classifications is decreased, the licenses shall be eliminated on the basis of
seniority, so that the premises holding a license the least amount of time shall be
eliminated first. However, the Commissioner may, with an accompanying written
statement, eliminate licenses on the basis of quality of operation of the premises,
considering such matters as charges before the Commissioner, the state liquor
commission or other law enforcement issues and/or on the basis of articulable
benefit or lack of benefit to the Village. (Ord. 4664,8-16-1994)
C. Upon any license becoming forfeited, void or revoked for any reason, the
number of available licenses in that classification shall automatically and
immediately be reduced by one.
13.206:
LICENSE TERM:
Each new license shall commence on the date specified on the license. Each
renewal license shall commence on May 1. Every license shall terminate on the
April 30 following the date of issuance. (This limitation shall not be applicable to
permits and certifications).
13.207:
RENEWAL OF LICENSE:
Any licensee may apply to renew a license. This renewal privilege shall not be
construed as a vested right, but shall be completely subject to the
Commissioner's right of review of the licensee's background and history of
operation in the State of Illinois.
13.208:
NATURE OF LICENSE; TRANSFER PROHIBITED:
A. A license shall be a privilege that may be claimed only by the person set
forth on the license. The license shall not constitute property, nor shall it be
subject to attachment, garnishment or execution. The license shall not be
alienable, voluntarily or involuntarily, or subject to lien or other encumbrance. The
license is not transferable either for consideration or not for consideration.
Although regulations B through F below shall be generally applicable, the
Commissioner shall have the sole discretion to determine whether the transfer of
a business has occurred such that the transferee must secure a new license.
B. As to a closely held corporation, an illegal transfer will be deemed to have
been attempted and the license shall become null and void if any person owning
twenty percent (20%) or more of the stock transfers the stock to another person
who previously held less than fifty percent (50%) of the stock. Upon the death of
23
any person owning twenty percent (20%) or more of the shares in a closely held
corporation, the Commissioner shall be notified.
C. As to a public corporation, an illegal transfer will be deemed to have been
attempted and the license shall become null and void if there has been a buyout,
a takeover or any other transaction involving the sale or transfer of more than fifty
percent (50%) of the stock or assets of the corporation.
D. If a licensee is ordered into receivership or files for bankruptcy, the
receiver or trustee may continue the operation of the business under the existing
license pursuant to a written order of the appropriate court until the expiration of
the license or until the passage of six (6) months from the date of appointment of
a receiver or trustee whichever comes first. (Ord. 4664, 8-16-1994)
E. Upon the alienation, sale, transfer, assignment or donation of the business
for which the license is issued to any other than the licensee, the liquor license
shall automatically become void.
F. Any licensed establishment that has discontinued the sale or service of
alcoholic beverages or that has not been open for business at least four (4) days
per week for a period of thirty (30) days or more shall automatically forfeit its
license. This forfeiture shall not apply in instances where the licensee has
previously notified the Village Manager, in writing, of an intent to close the
premises for a portion of a license term for remodeling or other similar purpose.
(Ord. 4664, 8-16-1994; amd. Ord. 5482, 3-15-2005)
ARTICLE III
LOCAL LIQUOR CONTROL COMMISSIONER
13.301 :
COMPENSATION, POWERS AND DUTIES OF COMMISSIONER:
A. The Commissioner shall receive, as compensation, the annual sum set
forth in Appendix A, Division I of this Code.
B. Any change in the compensation or fringe benefits provided for the
Commissioner shall be made by ordinance.
C. The Commissioner shall have all of the powers, functions and duties
delegated to that office by this Chapter 13 and other ordinances of the Village.
This shall include, but in no way shall be limited to, the power to require any
licensee, at any time, to produce any and all records, that directly or indirectly
relate to the operation of the licensee's premises.
D. In addition to any other powers set forth in this chapter, the Commissioner
may immediately suspend, pending the exercise of the right to a hearing, the
privilege of service of alcoholic beverages of any licensee who does not display a
currently valid state or local liquor license or who in the judgment of the
24
Commissioner is operating the business in such a manner as to endanger the
health or safety of patrons of the premises or of the community. (Ord. 4664, 8-16-
1994; amd. Ord. 5189, 5-15-2001)
E. The Commissioner may fine and/or suspend and/or revoke the liquor
license of any licensee that the Commissioner determines has violated any
Village regulation or other law of any kind or nature if the violation is related to
the operation of the licensed premises. The procedure for declaring and
enforcing such fine, suspension or revocation shall be as follows:
1. The Village Manager, the chief of police or the Village Attorney may
file a written charge of a violation, supported by affidavit, with the Commissioner.
2. Upon review of the charge and upon such further investigation as
the Commissioner may deem appropriate, the Commissioner shall issue an order
either sustaining or not sustaining the charge.
3. If the Commissioner sustains the charge or any portion of it, the
Commissioner may, by written order, suspend or revoke the liquor license and/or
may fine the licensee. The fine may be in addition to a revocation or suspension.
If the Commissioner decides to suspend the license, the term of the suspension
shall be within the discretion of the Commissioner. If the Commissioner elects to
fine the licensee, the amount of the fine shall be as set forth in Appendix A,
Division III of this Code.
4. The order shall be served on the licensee. The order shall inform
the licensee that the licensee has a right to a hearing for the purpose of
presenting evidence to dispute the order. Such a hearing will be held only upon
the filing of a written request with the Village Manager within ten (10) days of the
date of the order. The matter shall be set for a hearing to take place not less
than seven (7) nor more than twenty-one (21) days after the receipt of the
request for hearing. No continuance shall be granted except in the case of
emergency. The requirement of filing for a hearing within ten (10) days is
absolute and no person or entity shall have jurisdiction to accept a filing or other
request for such a hearing once the ten (10) days have elapsed.
5. The affidavit attached to the charges shall constitute prima facie
evidence of the violation or violations. It will be the burden of the licensee to go
forward with any evidence to be presented.
6. If, after the conclusion of the hearing, the Commissioner finds the
licensee to be guilty of any charges, the licensee will be responsible for all costs
incurred for the hearing, including, but not limited to, court reporter fees, witness
fees and attorney fees. This shall be in addition to any other penalties assessed
against the licensee.
25
7. All proceedings before the Commissioner shall be recorded and
placed in a certified official record of such proceedings taken and prepared by
the certified court reporter.
8. The appeals procedure as set forth by the President and Board of
Trustees of the Village under Resolution 3-72 of the Village are as set forth in this
Section, including:
a. In the event of any appeal from an order or action of the
Commissioner, the appeal to the State Liquor Commission shall be limited
to a review of the official record of the proceedings before the
Commissioner. The only evidence which shall be considered in the review
by the State Commission shall be the evidence found in the certified
official record of the proceedings of the Commissioner.
b. At such time as the Commissioner receives notice of an
appeal, the Commissioner shall file with the State Liquor Commission the
certified official record of the proceedings. The State Commission shall
review the propriety of the order or action of the Commissioner on the
certified official record as provided by law. (Ord. 4664, 8-16-1994; amd.
Ord. 5189, 5-15-2001).
F. Upon a finding of endangerment to the health, safety and welfare of
citizens or property, the Commissioner may fine, suspend or revoke any license
pursuant to this Section 13.301, even if such endangerment is caused by
persons other than the licensee or the licensee's agents or employees.
Such endangerment may include, but not be limited to, excessive noise by
patrons while visiting the licensed premises, consumption of alcoholic beverages
in areas immediately adjacent to the licensed premises, littering or destruction of
neighboring property by patrons, traffic violations by patrons of the licensed
premises, use of any illegal or controlled substance on or adjacent to the
licensed premises, the necessity of police or other Village services at the
licensed premises or the necessity of police services caused by patrons after
being served alcoholic beverages at the licensed premises.
No action may be taken against a licensee by the Commissioner in
circumstances described by this subsection F unless it is shown that the
Commissioner or the Village, by any of its various departments, has given the
licensee written notice of the endangerment activities on at least two occasions,
and, in the opinion of the Commissioner, after a reasonable time period, such
endangerment has not been sufficiently cured or remedied.
The power of the Commissioner to act in those situations is a recognition
of the principle that the holding of a liquor license is a special privilege and not a
right and that such a privilege, irrespective of the good intentions of the licensee,
remains absolutely subordinate to the welfare of the community.
26
ARTICLE IV
REGULATION OF LICENSES
13.401 :
INSURANCE:
A. Every licensee shall be required to obtain and maintain the insurance
coverage as set forth in Appendix A, Division I.
B. If the person who owns the building or premises where alcoholic
beverages are served and/or consumed is not the licensee, then that person
shall be required to carry host liability insurance coverage or its equivalent for
such premises as set forth in Appendix A, Division I. (Ord. 4664,8-16-1994)
13.402:
LOCATION OF SERVICE OF ALCOHOLIC BEVERAGES:
A. Location Specified on License. No liquor shall be served, offered for sale,
kept for sale, displayed or advertised for sale or delivered to any person except
at the exact location described in the liquor license. The location may be
changed only upon written permission issued by the Commissioner. A change of
location shall be within the sole discretion of the Commissioner.(Ord. 4664,8-16-
1994 )
B. Specific Location Prohibition. No liquor license may be issued for any
premises that is within one hundred feet (100') of any place of worship, school or
hospital.
C. Off Site Catering Privileges. No off site catering shall be permitted except
pursuant to an Off-site Catering Permit as set forth in Section 13.204.
D. Outdoor Service. Notwithstanding any other provisions of the Mount
Prospect Village Code, it shall be unlawful for any licensee to serve or permit the
consumption of alcoholic beverages in any outdoor area unless an Outdoor
Certification has been granted by the Commissioner pursuant to Section 13.204.
13.403
CLOSING HOURS:
A. It shall be unlawful for any licensee to engage in the service of any
alcoholic beverages during the following hours:
Monday - Friday -1 :00 A.M. to 8:00 A.M.
Saturday - 2:00 A.M. to 8:00 A.M.
Sunday - 2:00 A.M. to 9:00 A.M.
On January 1 of each year the hours of prohibited service shall be from
four o'clock (4:00) A.M. to twelve o'clock (12:00) noon.
B. All unfinished drinks shall be cleared from the premises within ten (10)
minutes after the closing time set forth in A above. It shall be a violation of this
27
Section if after the passage of such ten minutes there are alcoholic beverages in
any container other than an unopened or corked or otherwise properly reclosed
original container that has been returned to the appropriate place of display or
storage
C. Subject to (8) above, a premises with any Class F license may be kept
open during hours when service is prohibited, but no alcoholic beverages may be
delivered, consumed or remain on tables or a bar during such hours Nothing
contained in this Section shall be deemed to authorize any licensed premises to
remain open for business or to admit the public to the premises at or during any
hour when that premises is required to be closed by virtue of any other Village
regulation or restriction. (Ord. 4664,8-16-1994; amd. Ord. 5482, 3-15-2005)
13.404:
ENTERTAINMENT:
No entertainment shall be permitted on any licensed premises if that
entertainment is audible at any point beyond the boundaries of the licensed
premises. "Licensed premises", in this instance, shall not apply to a Civic Permit
as a Temporary Outdoor Entertainment Permit so long as the permittee complies
with all other conditions of the permit and all other regulations of the Village.
13.405:
PROHIBITED CONDUCT:
No licensee may engage in, advertise or promote in any way, whether within or
outside of the licensed premises, any of the practices prohibited under this
section.
The following conduct is prohibited:
A. The sale, delivery, service or giving of any alcoholic beverages to any of
the following:
1. A person under twenty-one (21) years of age.
2. An intoxicated person;
3. A person previously involved in a fight in the establishment. (Ord.
4664,8-16-1994)
B. Entertainment of a sexual nature.
1. The performance of acts, or simulated acts, of sexual intercourse,
masturbation, sodomy, bestiality, oral copulation, flagellation or any sexual acts
which are prohibited by law.
2. The actual or simulated touching, caressing or fondling of the
breasts, buttocks, anus or genitals.
28
3. The actual or simulated display of the breasts, pubic hair, anus,
vulva or genitals.
4. The permitting by a licensee of any person to remain in or upon the
licensed premises who exposes to public view any portion of his or her genitals
or anus.
5. The displaying of films or pictures depicting acts, which if performed
live, are prohibited by this section. (Ord. 4664,8-16-1994)
C. Other Prohibited Acts.
1. Every liquor licensee is prohibited from engaging in the following
acts:
a. Service of more than two (2) alcoholic beverage drinks
during any thirty (30) minute period to one person even if the drinks are
purportedly purchased for more than one individual. Service of a glass or
carafes of alcoholic beverages may be served so long as the server has
ascertained that such container is to at least serve two persons
eligible to consume alcoholic beverages.
b. Service to any person of an unlimited number of alcoholic
beverage drinks during any set period of time for a fixed price. The
Commissioner may permit, in writing, a food service licensee to serve
alcoholic beverages, at a fixed ticket price, for private functions where the
general public is not invited.
c. Service of alcoholic beverage drinks to any person or group
of persons during any period of the business day at prices less than those
charged to the general public during the rest of that business day, except
at private functions upon written permission of the Commissioner. For
purposes of this paragraph (c), "business day" shall mean that single
business period from the time of opening to the closing of the
establishment even if that time period encompasses parts of two calendar
days.
d. Increasing the volume of spirits content in a drink on a given
day without increasing proportionately the price otherwise charged for
such a drink during the calendar week.
e. Encouraging or permitting any game or contest which
involves drinking or the awarding of drinks as prizes.
2. The prohibitions contained in this section shall not prevent a liquor
licensee from:
a. Offering free food or approved entertainment.
29
b. Including a single drink as part of a meal package.
c. Free wine tasting as allowed by a Daily Sampling Permit.
d. Offering room service to registered guests in hotels licensed
for such services. (Ord. 4664, 8-16-1994)
e. Offering of wine, by the open bottle (exception applies to
Class F and S-4 licenses only).
D. Bars and Lounges.
It shall be unlawful for any holder of a liquor license to allow any person
under the age of twenty one (21) years to:
1. Be seated at a bar; or
2. Remain in or be seated in the lounge. This Subsection C(2)
shall not apply to seating at tables in the lounge when the establishment's
full food menu is available in that lounge and the minor is accompanied
by a parent.
E. Corkage, as defined in Article I, is prohibited except that with respect to
hotels, registered guests may consume alcohol purchased elsewhere in the
guest rooms.
F. Bottle clubs, as defined in Article I, are prohibited.
G. Except for Class P and Class S-4 licenses and subject to Section 13.410,
all service of alcoholic beverages shall be for consumption on the premises at
which the delivery took place.
13.406:
FIGHTING PROHIBITED; LICENSEES CONDUCT:
A. Fighting at a licensed premises is prohibited. For the purpose of this
Section, "fighting" shall mean any threatening or touching of another person
which provokes or tends to provoke a breach of the peace. If self-defense is
offered as a defense to a charge of fighting, that defense must be established by
the presentation of clear and convincing evidence. Any person violating this
Section shall be fined in an amount as set forth in Appendix A, Division III of this
Code.
8. A summary of Subsection A of this Section shall be prominently displayed
in all premises holding a liquor license. The notice shall further state that any
licensee, employee or agent of a licensee observing a fight shall immediately
notify the Village Police Department. Such a sign shall be available from the
Village Manager's office.
30
C. Each licensee shall maintain a peaceful and orderly business premises.
This shall be accomplished by establishing and maintaining the optimum
precautions and actions that are practical to deter and prevent fighting. This is
referred to as the "maintenance of order standard". The duty to prevent fighting
shall be applicable both to precautionary and training matters and to the steps
taken once a fight breaks out or is in imminent danger of breaking out. In
determining whether a violation of this section has occurred, the Commissioner
may consider the following matters, among others:
1. Prior incidents of reported or unreported fighting.
2. Whether any fight participant was intoxicated and the extent to
which the intoxication occurred on the premises.
3. Whether any participant was served by the licensee after the
participant's intoxication should have been evident to the licensee.
4. Whether any participant was intoxicated and whether the licensee
had an opportunity to effect that person's removal from the premises.
5. The degree of expediency the licensee observed in calling the
police when it should have been evident that a fight was imminent.
6. The actions of the licensee in reacting to the fight.
7. The extent and type of training given to the licensee's employees in
such matters as recognizing intoxication, over serving and prevention of
altercations.
8. Whether minors were involved in the fighting.
9. The sufficiency or number of persons on duty and employed by the
licensee at the time of the fight.
Considering all of the circumstances, the Commissioner shall make a
determination of whether the licensee violated the "maintenance of order
standard". If it is determined that a violation occurred, the Commissioner may
impose any penalty set forth in Section 13.601 of this Article up to and including
license revocation.
D. The following procedure shall be observed by a licensee with respect to
the outbreak or threatened outbreak of a fight:
1. The licensee shall notify the Village police department immediately
when the licensee knows or in the exercise of ordinary judgment should know
that a fight is occurring or imminent.
31
2. In addition, within forty eight (48) hours of the occurrence, the
licensee shall file with the local liquor control Commissioner a report on a form
provided by the Village containing the following information:
a. The number of persons involved in the fight;
b. The approximate amount of alcohol consumed at the
premises by each person involved in the fight;
fight;
c. What action, if any, was taken by the licensee to prevent the
d. What action, if any, was taken by the licensee subsequent to
the start of the fight;
e. The licensee's opinion as to why the fight occurred.
E. Failure by the licensee to give immediate notification to the Police
Department of a fight on a licensed premises or failure to file a report as required
in Subsection D of this Section with the Commissioner shall subject the licensee
to a mandatory fine as set forth in Appendix A, Division III of this Code, and a
possible suspension or revocation of the liquor license. For purposes of this
section the word "immediate" shall mean at the very moment that one party
threatens another, actually commences fighting with another or a breach of the
peace is imminent.
F. The provisions of this section shall not generally apply in circumstances
where alcohol is used in an individual guest room within a hotel or where alcohol
is mixed and poured at the hotel bar but is delivered to a separate banquet or
meeting room. This section shall apply to any other service of alcohol at a hotel,
including, but not limited to, serving in the restaurant or lounge or in those cases
where a bar is set up in an area away from the main bar for the convenience of
banquet or meeting room guests. (Ord. 4664,8-16- 1994; amd. Ord. 4801,7-2-
1996; Ord. 5189, 5-15-2001)
13.407:
CONDUCT OF EMPLOYEES AND AGENTS; SUPERVISOR ON
PREMISES:
A. Any act or failure to act of an employee or agent of either the licensee or a
management company with respect to the licensed business shall be deemed to
be the act of the licensee. Any duty set forth in this Chapter as a duty of the
licensee shall also be the duty of any agent or employee of the licensee.
B. No employee or other server of alcohol may consume or be permitted to
consume any alcoholic beverages on the licensed premises while on duty or
while performing any duties of employment.
32
C. No person, including any employee, manager, owner or agent of the
licensee may consume alcoholic beverages on the licensed premises before or
after the permitted hours of operation. (Ord. 4664, 8-16-1994)
D. A person must be at least nineteen (19) years of age to deliver alcoholic
beverages. Additionally, no person under twenty one (21) years of age may work
as a bartender or deliver alcohol from behind a bar.
E. A manager, as defined by this chapter, shall be on the premises at all
times that the licensed premises is open for business.
F. Any person that delivers, serves or pours alcoholic beverages and all
managers and supervisors of a licensed premises must provide proof of having
completed a certified alcohol awareness training course within thirty (30) days of
being hired. This regulation shall not apply to civic, library, Village or promotion
permits.
13.408:
CIVIC ORGANIZATIONS:
The following shall apply to civic organizations and the regulations of this
Chapter 13:
A. A civic organization may hold a fundraising event at any Class F or Class
S premises without obtaining a civic permit under the following conditions:
1. The Commissioner is notified, in writing, at least seven (7) days in
advance of the event.
2. All food and alcoholic beverage service is conducted by the Class F
or Class S licensee with the licensee's employees and at licensee's
menu prices, as in the normal course of business for that license.
B. If the Class F or Class S licensee intends to provide food or alcoholic
beverage service other than from its regular menu and at menu prices or if the
cost of the service of alcoholic beverages is part of a donation or ticket price,
then the civic organization must obtain a civic permit pursuant to Section
13.203D(2)a(i).
C. As to either A or B above, the civic organization, but not the liquor
licensee, may advertise for the event in any manner permitted by law, and in
either case, proceeds of the event may be shared with the civic organization.
13.409:
COMPLIANCE WITH BUILDING, SANITARY, SAFETY AND
OTHER REGULATIONS OF THE VILLAGE:
All licensed premises shall be maintained in full compliance with all other
regulations of the Village, including, but not limited to, those relating to the
33
storage or sale of food, sanitary conditions and safety conditions. (Ord. 4664, 8-
16-1994 )
13.410:
SEALING AND REMOVAL OF OPEN WINE BOTTLES FROM A
CLASS F LICENSEE:
Notwithstanding any other provision of this Chapter 13, any Class F or Class S-4
licensee may permit a patron to remove one unsealed and partially consumed
bottle of wine for off-premise consumption so long as there is compliance with
the following conditions: (1) the patron has purchased a meal and consumed a
portion of the bottle of wine with the meal on the licensed premises; and (2) the
partially consumed bottle of wine that is to be removed from the premises
pursuant to this Section is securely sealed by the licensee prior to removal from
the premises; and (3) the bottle is placed in a transparent one-time use tamper-
proof bag; and (4) the licensee has provided a dated and time stamped receipt
for the specific bottle of wine to the patron. It shall be the absolute duty of the
licensee to assure that the type of "tamper proof' bag that is used is such that
any removal or attempted removal of the bottle from the bag will be obvious to
any law enforcement officer.
The wine that is resealed in accordance with the provisions of this Section and
not tampered with shall not be deemed an unsealed container for the purposes of
Section 11-502 of the Illinois Vehicle Code.
ARTICLE V
REGULATIONS WITH RESPECT TO UNDERAGE PERSONS
13.501 :
CONSUMPTION, PURCHASE, ACCEPTANCE OR POSSESSION
PROHIBITED:
It shall be unlawful for any underage person to consume, purchase, accept a gift
of or have alcoholic beverages in his or her possession or in his or her blood
stream. The prohibitions set forth in this subsection shall not apply in the
circumstances described in Subsections 13.508(C)(1) and C(2).
13.502:
ALCOHOLIC BEVERAGES IN OR ON A MOTOR VEHICLE
PROHIBITED.
It shall be unlawful for any underage person to operate a motor vehicle when any
alcoholic beverage, whether sealed or unsealed, is in or on any portion or
compartment of the motor vehicle. This is an absolute liability offense. It shall
not be a defense to this Section that the operator did not know that the alcoholic
beverage was in or on the vehicle. It shall not be a defense that the alcoholic
beverage belonged to or was in the possession of another person. It shall be the
obligation of the operator to assure, by any means necessary, that no alcoholic
beverage is in or on the motor vehicle.
34
13.503:
OPERATION OF A MOTOR VEHICLE WITH ALCOHOL IN THE
SYSTEM PROHIBITED:
It shall be unlawful for any underage person to operate a motor vehicle on a
street or highway of the Village while in a state of impairment due to the
consumption of an alcoholic beverage or with any alcohol whatsoever in his or
her system. For purposes of this Section only, "operation of a motor vehicle" shall
have the definition ascribed to it in the Illinois Vehicle Code rather than the
definition set forth in Section 13.101. (Ord. 4664,8-16-1994)
13.504:
PROCEDURES WHEN AN UNDERAGE PERSON VIOLATES
THIS CHAPTER:
When any underage person (i) operates any motor vehicle in which or on which
is found any alcoholic beverage, or (ii) when the underage person is in a state of
impairment due to consumption of alcohol; or (iii) has alcohol in his or her system
the following shall apply:
A. The motor vehicle shall be subject to immediate impoundment by the
Police Department.
B. The following factors shall not be considerations in determining whether or
not to impound the motor vehicle:
1. Whether the alcoholic beverage is in an opened or an unopened
container.
2. Whether the operator is the owner of the alcoholic beverage in the
vehicle.
3. Whether the operator had knowledge of the existence of the
alcoholic beverage within the motor vehicle.
C. Upon impoundment, the motor vehicle may be released only to
another person showing proof of ownership or lease rights to the motor vehicle. If
the underage operator is the owner or lessee of the vehicle, then the vehicle may
be released only to a parent or spouse of the underage owner. If the underage
person has no parent or spouse living in the immediate area, the vehicle may be
released to the underage operator only after the passage of twenty-four (24)
hours.
D. The motor vehicle may not be released to any person who was a
passenger in the motor vehicle at the time the alcoholic beverage or impairment
was found unless at least twenty four (24) hours have passed from the time of
the finding.
35
E. The vehicle shall not be released until the person seeking the release has
paid an administrative fee as set forth in Appendix A, Division II of this Code, to
the Police Department, plus any towing or storage costs.
F. The above obligations and penalties shall be in addition to the penalties
that may be assessed in a court of law for any charges incident to the stop.
G. Any law enforcement officer, the Police Department and the Village and
any of its officers or agents shall be absolutely immune from any liability or
exposure to liability of any kind or nature for the enforcement or implementation
of this Section. (Ord. 4664,8-16-1994; amd. Ord. 4754,9-5-1995; Ord. 5189, 5-
15-2001 )
13.505:
RESERVED.
13.506:
USE OF FALSE IDENTIFICATION:
No person shall transfer, alter or deface any identification card; use any
identification card of another; carry or use a false or forged identification card;
obtain an identification card by means of false information; or otherwise
misrepresent age for the purpose of purchasing or obtaining alcoholic beverages.
(Ord. 5189, 5-15-2001)
13.507:
FALSE IDENTIFICATION NOT A DEFENSE:
It shall not be a defense to any action brought criminally, civilly or administratively
against any liquor licensee or any other person charged with the service of any
alcoholic beverage to an underage person that the underage person used false
identification or false proof of age. The person or persons hearing and deciding
the charges may consider such a claim when determining the penalty to be
assessed or the apportionment of damages. (Ord. 4664, 8-16-1994)
13.508:
FACILITATING THE USE OF ALCOHOLIC BEVERAGES BY
UNDERAGE PERSONS:
A. Serving Of Alcoholic Beverage To An Underage Person: It shall be
unlawful for any person, regardless of relationship, age or circumstances, to
deliver any alcoholic beverage to any underage person, except as set forth in
Subsection C of this Section.
B. Use Of Premises For Consumption Of An Alcoholic Beverage: It shall be
unlawful for any person to knowingly permit or to knowingly or negligently fail to
immediately prevent or stop, on premises under his or her control, the
consumption of an alcoholic beverage by an underage person. This section shall
apply to residential, public and commercial premises and to the private and
regulated service of an alcoholic beverage. For purposes of this section, if a
person over twenty-one years of age is in a residence where underage drinking
is occurring, negligence in either permitting or failing to prevent the consumption
36
shall be presumed and the burden of proving that such person was not negligent
shall fall on such person.
C. Exceptions: Subsections A and B of this Section shall not apply in the
following circumstances:
1. The performance of a bona fide religious service.
2. The service of an alcoholic beverage within the home to an
underage person, by and under the direct supervision of that underage person's
parent. However, the following rules shall be applied to this Subsection C(2):
a. In any prosecution of an underage person for the
commission of any state or local offense, the prosecutor, upon reasonable
grounds, may request a ruling and the court shall rule as to whether the
consumption of an alcoholic beverage, as permitted by the parent, was a
contributing factor to the commission of the offense. If it is so determined
in the affirmative, then the penalty set forth in Section 13.601 shall apply.
For purposes of this Subsection, the consumption of alcohol may be
determined to be a contributing factor if it had the effect of substantially
causing an impairment to the person as "impairment" is defined in this
Article. It need not be shown that, but for the consumption of alcohol, the
offense would not have been committed.
b. The parent shall remain vicariously liable as set forth in
Subsection D of this Section.
D. Vicarious Liability Of A Parent Or Other Person Facilitating The Use Of
Alcoholic Beverages: The following persons shall be liable to any individual who
has been injured by an alcohol impaired underage person when the impairment
is a contributing cause of the injury:
1. Any person who delivered or permitted the service of an alcoholic
beverage to the underage person. For purposes of this Subsection (1), the
person making or permitting the initial serving to an underage person remains
liable to anyone injured by the same or different underage person regardless of
how many times the alcoholic beverage changed hands.
2. Any person in control of a premises who knowingly or negligently
fails to maintain supervision to such an extent that an alcoholic beverage is
consumed on the premises by an underage person as set forth in B above.
3. Any person who knowingly or negligently allows the operation of a
motor vehicle under his or her control by an underage person, when the person
knew or in the exercise of ordinary judgment should have known that the
underage person was either impaired or had consumed any amount of alcohol
within two (2) hours prior to when the driving occurred.
37
The vicarious liability established by this Section shall not be subject to the
limitations on damages as set forth in 235 Illinois Compiled Statutes 5/6-21.
ARTICLE VI
PENAL TIES
13.601 :
PENAL TIES:
A. General Penalty. Unless another penalty is set forth below, every person
found guilty of a violation of any of the provisions of this Chapter shall be subject
to a fine as set forth in Appendix A, Division III of this Code, for the first offense
and for each subsequent offense. Any fines set forth in this chapter shall be
assessed regardless of whether the violator is convicted or placed on supervision
by the court. If the court is of the opinion that the ends of justice would be better
served by requiring community service of the violator or a combination of a fine
and community service, the fine may be mitigated as set forth in Appendix A,
Division III of this Code. If the offense is related to alcohol or substance abuse
and the offender is under twenty one (21) years of age, the court may, in lieu of
any mandatory fines, assign the offender to a chemical abuse counseling
program that is licensed by the Illinois department of alcohol and substance
abuse which includes a certified evaluation program and not less than four (4)
hours of counseling. Fines assessed by the court against any offender may be in
addition to any penalty assessed against a licensee in any administrative
proceeding.
B. Specific Penalties: Certain specific penalties shall be set forth in Appendix
A, Division III under the sections or subsections that correspond with the text.
C. Separate Offense; Alternatives: A separate offense shall be deemed to
have been committed on each day during or on which a violation occurs or
continues. (Ord. 4754, 9-5-1995; amd. Ord. 5189, 5-15-2001; Ord. 5518, 11-1-
2005)
SECTION TWO Appendix A, Divisions I, II and III of the Mount Prospect
Village Code shall be amended by deleting Chapter 13 in its entirety in each
Division and inserting in lieu thereof the following new chapters as follows:
DIVISION I
CHAPTER 13 - ALCOHOLIC LIQUORS
Section 13.301 : COMPENSATION, POWERS AND DUTIES OF
COMMISSIONER
38
A. Compensation for Local Liquor Control Commissioner: $3,000.00
annually
Section 13.401: INSURANCE
A. Insurance Coverage:
B. Host Liability Insurance Coverage: $1,000,000 per event/aggregate:
DIVISION II
CHAPTER 13 - ALCOHOLIC LIQUORS
Section 13.204: CLASSIFICATIONS
A. Fees for the Classifications:
1. Package Licenses (P):
Class P-1
Class P-2
Class P-3
Class P-4
Class P-5
$2000.00
$2,000.00
$1,750.00
$1,500.00
$2,000.00
2. Food Service Licenses (F):
Class F-1
Class F-2
Class F-3
Class F-4
Class F-5
Class F-6
$2,000.00
$1,500.00
$2,500.00
$750.00
$2,000.00
$2,500.00
3. Specialty Licenses (8):
Class S-1
Class S-2
Class S-3
Class S-4
Class S-5
$2,500.00
$2,500.00
$2,000.00
$1,500.00
$2,500.00
39
Temporary Permits:
I. Civic Permit: $0
ii. Library Permit: $0
iii Village Permit: $0
iv. Non-Mount Prospect Caterers Permit $??
Permits requiring an Existing Mount Prospect license:
I. Mount Prospect Caterers Permit (Daily) ??
ii. Mount Prospect Caterers Permit (Annual)
iii. Daily Sampling Permit: $25.00 per day
iii. Temporary Outdoor Entertainment Permit: $??
IV. Promotion Permit: ??
Certifications:
a. Temporary Outdoor Certification: $?
b. Management Entity Certification: $750.00
Section 13.504: PROCEDURES WHEN AN UNDERAGE PERSON
VIOLATES THIS CHAPTER.
E. Administrative fee: $150.00 for redeeming vehicle
DIVISION III
CHAPTER 13 - ALCOHOLIC LIQUORS
Section 13.301 : COMPENSATION, POWERS AND DUTIES OF
COMMISSIONER
E (3) Fine: Not less than $500.00 nor more than $2,500.00.
Section 13.406: FIGHTING PROHIBITED; LICENSEE'S CONDUCT
A. Fine for fighting: Not less than $500.00.
E. Fine for failure to give immediate notification to the Police Department or
failure to file a report with the Liquor Control Commissioner: $500.00.
Section 13.601 : PENALTIES
A. General Penalty Fine: $$250.00 for the first offense and $500.00 for each
subsequent offense or community service at a rate of one hour of
community service for every $10.00 of mandatory fine.
40
SECTION THREE: That this ordinance shall be in full force and effect
from and after its passage, approval and publication in pamphlet form in the
manner provided by law.
AYES:
NAYS:
ABSENT:
PASSED and APPROVED this
day of
,200 .
Irvana K. Wilks
Village President
ATTEST:
M. Lisa Angell
Village Clerk
41
..;
MmlOt Prospect
INTEROFFICE MEMORANDUM
Village of Mount Prospect
Mount Prospect, Illinois
FROM:
MICHAEL E. JANONIS, VILLAGE MANAGER
DIRECTOR OF FINANCE
~.M~
\'l d1
TO:
DATE: FEBRUARY 12, 2009
SUBJECT: FINANCING FOR FIRE STATION #14, EMERGENCY OPERATION
AND PUBLIC WORKS EXPANSION
PURPOSE:
To present for the Village Board's consideration an ordinance authorizing the issuance of
$10,000,000 of general obligation bonds. Also presented for Board consideration is a resolution
expressing intent regarding the reimbursement of certain project related expenditures from
proceeds of an obligation to be issued in 2010.
BACKGROUND:
The 2009-2013 Capital Improvement Plan identified construction projects that were to be funded
substantially through the issuance of general obligation bonds. These projects are a
replacement Fire Station #14, Emergency Operations Center and Pubic Works facility
expansion. The combined cost of these three projects is currently budgeted at $14.5 million.
As part of the funding plan, bond proceeds totaling $12.5 million and surplus reserves of $2.0
million will be used to cover the cost of constructing Fire Station #14 and companion projects.
Bond will be issued in two separate series (Series 2009 and Series 2010). The Series 2009
bonds will be issued with a principal amountof$10.0 million while it is anticipated that the Series
2010 bonds will be issued with a principal amount of $2.5 million.
The Series 2009 bond sale is set for February 17, 2009. Bonds will be issued through a
competitive bid process. The reimbursement resolution is being presented in anticipation of the
Series 2010 bond issue. Also to be done through a competitive bid process. No date has been
set for this second bond sale.
DISCUSSION:
The accompanying bond ordinance and resolution are presented for the Board's consideration.
The sections of the bond ordinance (Exhibit I) dealing with interest rates, principal and interest
repayment schedules and the tax levy schedule have been left blank for now since bids on the
proposed financing will not be determined until 10:00 a.m. on Tuesday, February 17, 2009. At
the Board meeting that evening staff will present a summary of the bid results and will distribute
a completed bond ordinance.
The reimbursement resolution (Exhibit II) expresses the Village's intent to utilize bond proceeds
from a future bond sale (Series 2010) to reimburse expenditures related to the construction of
the three identified projects. As mentioned previously, the maximum principal amount of the
Series 2010 obligation will be $2.5 million.
C-b
..
Financing for Fire Station #14 and Companion Projects
February 12, 2009
Page 2
Also attached is a copy of the projected debt service schedule (Exhibit III) that was distributed to
the Board at the Strategic Goal Setting Workshop on February 10. At this time we do not expect
interest rates to materially change from these estimates.
RECOMMENDATION:
It is recommended the Village Board waive the rules requiring two readings and adopt an
ordinance authorizing the sale of $10.0 million of general obligation bonds, Series 2009. It is
also recommended that the Village Board approve the reimbursement resolution in anticipation
of the Series 2010 bond issue.
~t?'~
DAVID O. ERB
DIRECTOR OF FINANCE
DOE
Attachments
1:\Debt Service\GO Bonds - Series 2009 Fire Staion #14\OrdiQan~e Cover Memo - 2-12-09.doc
Exhibit I
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ORDINANCE NUMBER
AN ORDINANCE providing for the issuance of $10,000,000 General
Obligation Bonds, Series 2009, of the Village of Mount Prospect,
Cook County, Illinois, and providing for the levy and collection of
a direct annual tax for the payment of the principal of and interest
on said bonds.
Adopted by the President and Board
of Trustees on the 17th day of
February, 2009.
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TABLE OF CONTENTS
SECTION
HEADING
PAGE
PREAMBLES ................... ............ ..... .... .... .......... ....... ... .... ......... ..... ..... ..... ...... ........ ... .......... ...... .........1
SECTION 1.
DEFINITIONS................................................................................................ .2
SECTION 2.
INCORPORATION OF PREAMBLES....... ....... ............. ..... .......... ...... ........ ...........3
SECTION 3.
DETERMINATION TO ISSUE BONDS .............. ........ .................. ............... .........3
SECTION 4.
BOND DETAILS. . ................ ......... ........... ............. ....... ...... ............ .................4
SECTION 5.
EXECUTION; AUTHENTICATION .... ................ ........ .................. ......... ...... .......5
SECTION 6.
OPTIONAL REDEMPTION ...............................................................................6
SECTION 7.
REDEMPTION PROCEDURE. ...........................................................................6
SECTION 8.
REGISTRATION AND EXCHANGE OR TRANSFER OF BONDS;
PERSONS TREATED AS OWNERS. ......... ................. ..................... ....... ...... .......9
SECTION 9.
GLOBAL BOOK-ENTRY SySTEM.... .............. ........ ...... ........... .................. .....1 0
SECTION 10.
FORM OF BOND.......................................................................................... .13
SECTION 11.
TAX LEVy................................................................................................. ..19
SECTION 12.
FILING WITH COUNTY CLERK.......... ........ ......... ................... ......... ........... ...21
SECTION 13.
SALE OF BONDS......................................................................................... .21
SECTION 14.
CREATION OF FUNDS AND APPROPRIATIONS...............................................22
SECTION 15.
NON-ARBITRAGE AND TAX-ExEMPTION ........ ........... ....... ............... ...........23
SECTION 16.
RIGHTS AND DUTIES OF BOND REGISTRAR AND PAYING
AGENT....................................................................................................... .41
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SECTION 17.
SECTION 18.
SECTION 19.
SECTION 20.
SECTION 21.
SECTION 22.
DEFEASANCE............................................................................................. .42
CONTINUING DISCLOSURE UNDERTAKING... ......... .............. .................... ....42
MUNICIPAL BOND INSURANCE.................................................................... 4 3
SEVERABILITY ............................................................................................4 3
REPEALER...................................................................................................4 3
EFFECTIVE DATE .... ......... ...... ......... .... ........... ..... ................ ... .......... .... ... ....44
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,
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ORDINANCE NUMBER
AN ORDINANCE providing for the issuance of $10,000,000 General
Obligation Bonds, Series 2009, of the Village of Mount Prospect,
Cook County, Illinois, and providing for the levy and collection of
a direct annual tax for the payment of the principal of and interest
on said bonds.
WHEREAS by virtue of its population, and pursuant to the provisions of Section 6 of
Article VII of the Constitution of the State of Illinois, the Village of Mount Prospect, Cook
County, Illinois (the "Village "), is a home rule unit and may exercise any power or perform any
function pertaining to its government and affairs including, but not limited to, the power to tax
and to incur debt; and
WHEREAS pursuant to the provisions of said Section 6, the Village has the power to incur
debt payable from ad valorem property tax receipts or from any other lawful source and maturing
within 40 years from the time it is incurred without prior referendum approval; and
WHEREAS the President and Board of Trustees of the Village (the "Board") has
considered the needs of the Village and has heretofore determined and does hereby determine
that it is advisable, necessary and in the best interests of the Village to construct and equip a
replacement fire station, expand the public works facility and relocate the emergency operations
center (the "Project "); and
WHEREAS the estimated cost to the Village of the Project, including costs of issuance for
the hereinafter defined Bonds, is the sum of $10,000,000 plus any estimated available amount of
interest earnings on said sum prior to its expenditure; and
WHEREAS there are insufficient funds on hand and available to pay the costs of the
Project, and it is necessary for that purpose that a sum to pay such costs be borrowed at this time,
and in evidence of such indebtedness, general obligation bonds of the Village be issued in the
principal amount of $10,000,000, and that such indebtedness be incurred in accordance with the
"
Act as hereinafter defined, and without submitting the question of incurring such indebtedness to
the electors of the Village for their approval; and
WHEREAS the Board does hereby determine that it is advisable and in the best interests of
the Village to borrow $10,000,000 at this time pursuant to the Act for the purpose of paying the
costs of the Project and, in evidence of such borrowing, issue its full faith and credit bonds in the
principal amount of $10,000,000:
Now THEREFORE Be It Ordained by the President and Board of Trustees of the Village of
Mount Prospect, Cook County, Illinois, in the exercise of its home rule powers, as follows:
Section 1. Definitions. In addition to such other words and terms used and defined in
this Ordinance, the following words and terms used in this Ordinance shall have the following
meanings, unless, in either case, the context or use clearly indicates another or different meaning
is intended:
"Act" means, collectively, the Illinois Municipal Code, as supplemented and amended,
the home rule powers of the Village under Section 6 of Article VII of the Illinois Constitution of
1970; and, in the event of conflict between the provisions of said code and home rule powers, the
home rule powers shall be deemed to supersede the provisions of said code.
"Board" means the President and Board of Trustees of the Village.
"Bond" or "Bonds" means one or more, as applicable, of the $10,000,000 General
Obligation Bonds, Series 2009, authorized to be issued by this Ordinance.
"Bond Fund" means the Bond Fund established and defined In Section 14 of this
Ordinance.
"Bond Register" means the books of the Village kept by the Bond Registrar to evidence
the registration and transfer of the Bonds.
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r
"Bond Registrar" means The Bank of New York Mellon Trust Company, National
Association, having trust offices in Chicago, Illinois, or such other institution having fiduciary
capacity and having corporate trust offices in Chicago, Illinois, or successor or assigns.
"Code" means the Internal Revenue Code of 1986, as amended.
"County Clerk" means the County Clerk of The County of Cook, Illinois.
"Ordinance" means this Ordinance, numbered as set forth on the title page hereof, and
passed by the Board on the 17th day of February, 2009.
"Paying Agent" means The Bank of New York Mellon Trust Company, National
Association, having trust offices in Chicago, Illinois, or such other institution having fiduciary
capacity and having corporate trust offices in Chicago, Illinois, or successor or assigns.
"Pledged Taxes" means the taxes levied on the taxable property within the Village to pay
principal of and interest on the Bonds as provided in Section 11 hereof.
"Project" or "Project" means the Village capital expenditures as described and defined
as such in the preambles to this Ordinance.
"Tax-exempt" means, with respect to the Bonds, the status of interest paid and received
thereon as excludable from the gross income of the owners thereof under the Code for federal
income tax purposes except to the extent that such interest is taken into account in computing an
adjustment used in determining the alternative minimum tax for certain corporations.
"Village" means the Village of Mount Prospect, Cook County, Illinois.
Section 2. Incorporation of Preambles. The Board hereby finds that all of the recitals
contained in the preambles to this Ordinance are true, correct and complete and does incorporate
them into this Ordinance by this reference.
Section 3. Determination to Issue Bonds. It is necessary and in the best interests of the
Village to complete the Project, to pay all related costs and expenses incidental thereto, and to
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borrow money and issue the Bonds for such purposes. It is hereby found and determined that
such borrowing of money is necessary for the welfare of the government and affairs of the
Village, is for a proper public purpose or purposes and is in the public interest, and is authorized
pursuant to the Act; and these findings and determinations shall be deemed conclusive.
Section 4. Bond Details. For the purpose of providing for such costs, there shall be
issued and sold the Bonds in the principal amount of $10,000,000. The Bonds shall be
designated "General Obligation Bonds, Series 2009"; be dated March 11, 2009 (the "Dated
Date "); and shall also bear the date of authentication thereof. The Bonds shall be in fully
registered form, shall be in denominations of $5,000 or integral multiples thereof (but no single
Bond shall represent principal maturing on more than one date), shall be numbered consecutively
in such fashion as shall be determined by the Bond Registrar, and shall become due and payable
serially (subject to right of prior redemption as hereinafter set forth) on December 1 of the years
and in the amounts and bearing interest at the rates per annum as follows:
YEAR AMOUNT RATE
2009 $ %
2023 %
2024 %
2025 %
2026 %
2027 %
2028 %
Each Bond shall bear interest from the later of its Dated Date as herein provided or from the
most recent interest payment date to which interest has been paid or duly provided for, until the
principal amount of such Bond is paid or duly provided for, such interest (computed upon the
basis of a 360-day year of twelve 30-day months) being payable on June 1 and December 1 of
each year, commencing on December 1, 2009. Interest on each Bond shall be paid by check or
draft of the Paying Agent, payable upon presentation thereof in lawful money of the United
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States of America, to the person in whose name such Bond is registered at the close of business
on the applicable Record Date (the "Record Date "), and mailed to the registered owner of the
Bond as shown in the Bond Register or at such other address furnished in writing by such
Registered Owner. The Record Date shall be the 15th day of the month next preceding any
regular or other interest payment date occurring on the 1 st day of any month and 15 days
preceding any interest payment date occasioned by the redemption of Bonds on other than the
first day of a month. The principal of the Bonds shall be payable in lawful money of the United
States of America upon presentation thereof at the principal corporate trust office of the Paying
Agent.
Section 5. Execution,. Authentication. The Bonds shall be executed on behalf of the
Village by the manual or facsimile signature of its President and attested by the manual or
facsimile signature of its Village Clerk, as they may determine, and shall have impressed or
imprinted thereon the corporate seal or facsimile thereof of the Village. In case any such officer
whose signature shall appear on any Bond shall cease to be such officer before the delivery of
such Bond, such signature shall nevertheless be valid and sufficient for all purposes, the same as
if such officer had remained in office until delivery. All Bonds shall have thereon a certificate of
authentication, substantially in the form hereinafter set forth, duly executed by the Bond
Registrar as authenticating agent of the Village and showing the date of authentication. No Bond
shall be valid or obligatory for any purpose or be entitled to any security or benefit under this
Ordinance unless and until such certificate of authentication shall have been duly executed by the
Bond Registrar by manual signature, and such certificate of authentication upon any such Bond
shall be conclusive evidence that such Bond has been authenticated and delivered under this
Ordinance. The certificate of authentication on any Bond shall be deemed to have been executed
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by it if signed by an authorized officer of the Bond Registrar, but it shall not be necessary that
the same officer sign the certificate of authentication on all of the Bonds issued hereunder.
Section 6. Optional Redemption. The Bonds maturing on or after December 1, 2023,
are subject to redemption prior to maturity at the option of the Village as a whole, or in part in
any order of maturity determined by the Village (less than all of the Bonds of a single maturity to
be selected by the Bond Registrar), on December 1, 2017, or on any date thereafter, at the
redemption. price of par plus accrued interest to the date of redemption.
Section 7. Redemption Procedure. The Village shall, at least 45 days prior to the
redemption date (unless a shorter time period shall be satisfactory to the Bond Registrar), notify
the Bond Registrar of such redemption date and of the maturities and principal amounts of Bonds
to be redeemed. For purposes of any redemption of less than all of the Bonds of a single
maturity, the particular Bonds or portions of Bonds to be redeemed shall be selected by lot not
more than 60 days prior to the redemption date by the Bond Registrar for the Bonds of such
maturity by such method of lottery as the Bond Registrar shall deem fair and appropriate;
provided, however, that such lottery shall provide for the selection for redemption of Bonds or
portions thereof so that any $5,000 Bond or $5,000 portion of a Bond shall be as likely to be
called for redemption as any other such $5,000 Bond or $5,000 portion.
The Bond Registrar shall promptly notify the Village in writing of the Bonds or portions
of Bonds selected for redemption and, in the case of any Bond selected for partial redemption,
the principal amount thereof to be redeemed.
Unless waived by the registered owner of Bonds to be redeemed, official notice of any
such redemption shall be given by the Bond Registrar on behalf of the Village by mailing the
redemption notice by first-class mail not less than 30 days and not more than 60 days prior to the
date fixed for redemption to each registered owner of the Bond or Bonds to be redeemed at the
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address shown on the Bond Register or at such other address as is furnished in writing by such
registered owner to the Bond Registrar.
All official notices of redemption shall include the full name of the Bonds and at least the
information as follows:
(a) the redemption date;
(b) the redemption price;
(c) if less than all of the outstanding Bonds of a particular maturity are to be
redeemed, the identification (and, in the case of partial redemption of Bonds within such
maturity, the respective principal amounts) of the Bonds to be redeemed;
(d) a statement that on the redemption date the redemption price will become
due and payable upon each such Bond or portion thereof called for redemption and that
interest thereon shall cease to accrue from and after said date;
(e) the place where such Bonds are to be surrendered for payment of the
redemption price, which place of payment shall be the principal corporate trust office of
the Paying Agent; and
(f) such other information then required by custom, practice or industry
standard.
Unless moneys sufficient to pay the redemption price of the Bonds to be redeemed shall
have been received by the Bond Registrar prior to the giving of such notice of redemption, such
notice may, at the option of the Village, state that said redemption shall be conditional upon the
receipt of such moneys by the Bond Registrar on or prior to the date fixed for redemption. If
such moneys are not received, such notice shall be of no force and effect, the Village shall not
redeem such Bonds, and the Bond Registrar shall give notice, in the same manner in which the
notice of redemption shall have been given, that such moneys were not so received and that such
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Bonds will not be redeemed. Otherwise, prior to any redemption date, the Village shall deposit
with the Paying Agent an amount of money sufficient to pay the redemption price of all the
Bonds or portions of Bonds which are to be redeemed on that date.
Subject to the provisions for a conditional redemption described above, notice of
redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed
shall, on the redemption date, become due and payable at the redemption price therein specified,
and from and after such date (unless the Village shall default in the payment of the redemption
price), such Bonds or portions of Bonds shall cease to bear interest. Neither the failure to mail
such redemption notice, nor any defect in any notice so mailed, to any particular registered
owner of a Bond, shall affect the sufficiency of such notice with respect to other registered
owners. Notice having been properly given, failure of a registered owner of a Bond to receive
such notice shall not be deemed to invalidate, limit or delay the effect of the notice or redemption
action described in the notice. Such notice may be waived in writing by a registered owner of a
Bond entitled to receive such notice, either before or after the event, and such waiver shall be the
equivalent of such notice. Waivers of notice by registered owners shall be filed with the Bond
Registrar, but such filing shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.
Upon surrender of such Bonds for redemption in accordance with said notice, such Bonds
shall be paid by the Paying Agent at the redemption price. The procedure for the payment of
interest due as part of the redemption price shall be as herein provided for payment of interest
otherwise due. Upon surrender for any partial redemption of any Bond, there shall be prepared
for the registered owner a new Bond or Bonds of like tenor, of authorized denominations, of the
same maturity, and bearing the same rate of interest in the amount of the unpaid principal.
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If any Bond or portion of a Bond called for redemption shall not be so paid upon
surrender thereof for redemption, the principal shall, until paid or duly provided for, bear interest
from the redemption date at the rate borne by the Bond or portion of Bond so called for
redemption. All Bonds which have been redeemed shall be cancelled and destroyed by the Bond
Registrar and shall not be reissued.
As part of their respective duties hereunder, the Bond Registrar and Paying Agent shall
prepare and forward to the Village a statement as to notice given with respect to each, redemption
together with copies of the notices as mailed and published.
Section 8. Registration and Exchange or Transfer of Bonds; Persons Treated as
Owners. The Village shall cause books for the registration and for the transfer of the Bonds as
provided in this Ordinance to be kept at the principal corporate trust office of the Bond Registrar,
which is hereby constituted and appointed the registrar of the Village for the Bonds. The Village
is authorized to prepare, and the Bond Registrar or such other agent as the Village may designate
shall keep custody of, multiple Bond blanks executed by the Village for use in the transfer and
exchange of Bonds.
Any Bond may be transferred or exchanged, but only in the manner, subject to the
limitations, and upon payment of the charges as set forth in this Ordinance. Upon surrender for
transfer or exchange of any Bond at the principal corporate trust office of the Bond Registrar,
duly endorsed by or accompanied by a written instrument or instruments of transfer or exchange
in form satisfactory to the Bond Registrar and duly executed by the registered owner or an
attorney for such owner duly authorized in writing, the Village shall execute and the Bond
Registrar shall authenticate, date and deliver in the name of the transferee or transferees or, in the
case of an exchange, the registered owner, a new fully registered Bond or Bonds of like tenor, of
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the same maturity, bearing the same interest rate, of authorized denominations, for a like
aggregate principal amount.
The Bond Registrar shall not be required to transfer or exchange any Bond during the
period from the close of business on the Record Date for an interest payment to the opening of
business on such interest payment date or during the period of 15 days preceding the giving of
notice of redemption of Bonds or to transfer or exchange any Bond all or a portion of which has
been called for redemption.
The execution by the Village of any fully registered Bond shall constitute full and due
authorization of such Bond, and the Bond Registrar shall thereby be authorized to authenticate,
date and deliver such Bond; provided, however, that the principal amount of Bonds of each
maturity authenticated by the Bond Registrar shall not at anyone time exceed the authorized
principal amount of Bonds for such maturity less the amount of such Bonds which have been
paid.
The person in whose name any Bond shall be registered shall be deemed and regarded as
the absolute owner thereof for all purposes, and payment of the principal of or interest on any
Bond shall be made only to or upon the order of the registered owner thereof or his legal
representative. All such payments shall be valid and effectual to satisfy and discharge the
liability upon such Bond to the extent of the sum or sums so paid.
No service charge shall be made for any transfer or exchange of Bonds, but the Village or
the Bond Registrar may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any transfer or exchange of Bonds.
Section 9. Global Book-Entry System. If requested by the hereinafter defined
Purchaser, the Bonds shall be initially issued in the form of a separate single fully registered
Bond for each of the maturities of the Bonds determined as described in Section 4 hereof. Upon
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initial issuance, the ownership of each such Bond shall be registered in the Bond Register in the
name of Cede & Co., or any successor thereto ("Cede "), as nominee of The Depository Trust
Company, New York, New York, and its successors and assigns ("DTC"). All of the
outstanding Bonds shall be registered in the Bond Register in the name of Cede, as nominee of
DTC, except as hereinafter provided. The President, Village Clerk and Village Treasurer and the
Bond Registrar are each authorized to execute and deliver, on behalf of the Village, such letters
to or agreements with DTe as shall be necessary to effectuate such book-entry system (any such
letter or agreement being referred to herein as the "Representation Letter "), which
Representation Letter may provide for the payment of principal of or interest on the Bonds by
wire transfer.
With respect to Bonds registered in the Bond Register in the name of Cede, as nominee
of DTC, the Village and the Bond Registrar shall have no responsibility or obligation to any
broker-dealer, bank or other financial institution for which DTC holds Bonds from time to time
as securities depository (each such broker-dealer, bank or other financial institution being
referred to herein as a "DTC Participant'J or to any person on behalf of whom such a DTC
Participant holds an interest in the Bonds. Without limiting the immediately preceding sentence,
the Village and the Bond Registrar shall have no responsibility or obligation with respect to
(i) the accuracy of the records of DTC, Cede or any DTC Participant with respect to any
ownership interest in the Bonds, (ii) the delivery to any DTC Participant or any other person,
other than a registered owner of a Bond as shown in the Bond Register, of any notice with
respect to the Bonds, including any notice of redemption, or (iii) the payment to any DTC
Participant or any other person, other than a registered owner of a Bond as shown in the Bond
Register, of any amount with respect to the principal of or interest on the Bonds. The Village
and the Bond Registrar may treat and consider the person in whose name each Bond is registered
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in the Bond Register as the holder and absolute owner of such Bond for the purpose of payment
of principal and interest with respect to such Bond, for the purpose of giving notices of
redemption and other matters with respect to such Bond, for the purpose of registering transfers
with respect to such Bond, and for all other purposes whatsoever. The Bond Registrar shall pay
all principal of and interest on the Bonds only to or upon the order of the respective registered
owners of the Bonds, as shown in the Bond Register, or their respective attorneys duly
authorized in writing, and all such payments shall be valid and effective to fully satisfy and
discharge the Village's obligations with respect to payment of the principal of and interest on the
Bonds to the extent of the sum or sums so paid. No person other than a registered owner of a
Bond as shown in the Bond Register, shall receive a Bond evidencing the obligation of the
Village to make payments of principal and interest with respect to any Bond. Upon delivery by
DTC to the Bond Registrar of written notice to the effect that DTC has determined to substitute a
new nominee in place of Cede, and subject to the provisions in Section 4 hereof with respect to
the payment of interest to the registered owners of Bonds at the close of business on the 15th day
of the month next preceding the applicable interest payment date, the name "Cede" in this
Ordinance shall refer to such new nominee of DTC.
In the event that (i) the Village determines that DTC is incapable of discharging its
responsibilities described herein and in the Representation Letter, (ii) the agreement among the
Village, the Bond Registrar and DTC evidenced by the Representation Letter shall be terminated
for any reason or (iii) the Village determines that it is in the best interests of the beneficial
owners of the Bonds that they be able to obtain certificated Bonds, the Village shall notify DTC
and DTC Participants of the availability through DTC of certificated Bonds and the Bonds shall
no longer be restricted to being registered in the Bond Register in the name of Cede, as nominee
of DTC. At that time, the Village may determine that the Bonds shall be registered in the name
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of and deposited with such other depository operating a universal book-entry system, as may be
acceptable to the Village, or such depository's agent or designee, and if the Village does not
select such alternate universal book-entry system, then the Bonds may be registered in whatever
name or names registered owners of Bonds transferring or exchanging Bonds shall designate, in
accordance with the provisions of Section 8 hereof.
Notwithstanding any other provisions of this Ordinance to the contrary, so long as any
Bond is registered in the name of Cede, as nominee of DTC, all payments with respect to
principal of and interest on such Bond and all notices with respect to such Bond shall be made
and given, respectively, in the name provided in the Representation Letter.
Section 10. Form of Bond. The Bonds shall be in substantially the form hereinafter set
forth; provided, however, that if the text of the Bonds is to be printed in its entirety on the front
side of the Bonds, then the second paragraph on the front side and the legend "See Reverse Side
for Additional Provisions" shall be omitted and the text of paragraphs set forth for the reverse
side shall be inserted immediately after the first paragraph.
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[FORM OF BOND - FRONT SIDE]
REGISTERED
No.
REGISTERED
$
UNITED STATES OF AMERICA
STATE OF ILLINOIS
COUNTY OF COOK
VILLAGE OF MOUNT PROSPECT
GENERAL OBLIGATION BOND, SERIES 2009
See Reverse Side for
Additional Provisions.
Interest
Rate: %
Maturity
Date: December 1, 20_
Dated
Date: March 11, 2009
CUSIP:
Registered Owner: CEDE & CO.
Principal Amount: DOLLARS
KNOW ALL PERSONS BY THESE PRESENTS that the Village of Mount Prospect, Cook
County, Illinois, a municipality, home rule unit, and political subdivision of the State of Illinois
(the "Village"), hereby acknowledges itself to owe and for value received promises to pay to the
Registered Owner identified above, or registered assigns as hereinafter provided, on the Maturity
Date identified above (subject to the right of prior redemption as hereinafter stated), the Principal
Amount identified above and to pay interest (computed on the basis of a 360-day year of twelve
30-day months) on such Principal Amount from the later of the Dated Date of this Bond
identified above or from the most recent interest payment date to which interest has been paid or
duly provided for, at the Interest Rate per annum identified above, such interest to be payable on
June 1 and December 1 of each year, commencing December 1, 2009, until said Principal
Amount is paid or duly provided for. The principal of or redemption price on this Bond is
payable in lawful money of the United States of America upon presentation hereof at the
principal corporate trust office of The Bank of New York Mellon Trust Company, National
Association, Chicago, Illinois, as paying agent (the "Paying Agent"). Payment of interest shall
be made to the Registered Owner hereof as shown on the registration books of the Village
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maintained by The Bank of New York Mellon Trust Company, National Association, Chicago,
Illinois, as bond registrar (the "Bond Registrar"), at the close of business on the applicable
Record Date (the "Record Date "). The Record Date shall be the 15th day of the month next
preceding of any regular or other interest payment date occurring on the 1 st day of any month
and 15 days preceding any interest payment date occasioned by the redemption of Bonds on
other than the 1 st day of a month. Interest shall be paid by check or draft of the Paying Agent,
payable upon presentation in lawful money of the United States of America, mailed to the
address of such Registered Owner as it appears on such registration books or at such other
address furnished in writing by such Registered Owner to the Bond Registrar, or as otherwise
agreed by the Village and Cede & Co., as nominee, or successor, for so long as this Bond is held
by The Depository Trust Company, New York, New York, the depository, or nominee, in book-
entry only form as provided for same.
Reference is hereby made to the further provisions of this Bond set forth on the reverse
hereof, and such further provisions shall for all purposes have the same effect as if set forth at
this place.
It is hereby certified and recited that all conditions, acts and things required by the
Constitution and Laws of the State of Illinois to exist or to be done precedent to and in the
issuance of this Bond, including the authorizing Act, have existed and have been properly done,
happened and been performed in regular and due form and time as required by law; that the
indebtedness of the Village, represented by the Bonds, and including all other indebtedness of
the Village, howsoever evidenced or incurred, does not exceed any constitutional or statutory or
other lawful limitation; and that provision has been made for the collection of a direct annual tax,
in addition to all other taxes, on all of the taxable property in the Village sufficient to pay the
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interest hereon as the same falls due and also to pay and discharge the principal hereof at
maturity.
THE VILLAGE HAS DESIGNATED THIS BOND AS A "QUALIFIED TAX-ExEMPT OBLIGATION"
PURSUANT TO SECTION 265(b )(3) OF THE INTERNAL REVENUE CODE OF 1986.
This Bond shall not be valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been signed by the Bond Registrar.
IN WITNESS WHEREOF the Village of Mount Prospect, Cook County, Illinois, by its
President and Board of Trustees, has caused this Bond to be executed by the manual or duly
authorized facsimile signature of its President and attested by the manual or duly authorized
facsimile signature of its Village Clerk and its corporate seal or a facsimile thereof to be
impressed or reproduced hereon, all as appearing hereon and as of the Dated Date identified
above.
President, Village of Mount Prospect,
Cook County, Illinois
ATTEST:
Village Clerk, Village of Mount Prospect,
Cook County, Illinois
[SEAL]
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Date of Authentication:
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CERTIFICATE OF AUTHENTICATION
This Bond is one of the Bonds described in the within-mentioned Ordinance and is one of
the General Obligation Bonds, Series 2009, having a Dated Date of March 11, 2009, of the
Village of Mount Prospect, Cook County, Illinois.
THE BANK OF NEW YORK MELLON TRUST
COMPANY, NATIONAL ASSOCIATION,
as Bond Registrar
By
Authorized Officer
Bond Registrar and Paying Agent:
The Bank of New York Mellon Trust
Company, National Association,
Chicago, Illinois
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[FORM OF BOND - REVERSE SIDE]
This bond is one of a series of bonds (the "Bonds") in the aggregate principal amount of
$10,000,000 issued by the Village for the purpose of paying the costs of the Project and paying
expenses incidental thereto, all as described and defined in the ordinance authorizing the Bonds
(the "Ordinance"), pursuant to and in all respects in compliance with the applicable provisions
of the Illinois Municipal Code, as supplemented and amended, and as further supplemented and,
where necessary, superseded, by the powers of the Village as a home rule unit under the
provisions of Section 6 of Article VII of the Illinois Constitution of 1970 (such code and powers
collectively, being the "Act"), and with the Ordinance, which has been duly passed by the
President and Board of Trustees of the Village and approved by the President.
This Bond may be transferred or exchanged, but only in the manner, subject to the
limitations, and upon payment of the charges as set forth in the Ordinance. Upon surrender for
transfer or exchange of this Bond at the principal corporate trust office of the Bond Registrar,
duly endorsed by or accompanied by a written instrument or instruments of transfer or exchange
in form satisfactory to the Bond Registrar and duly executed by the Registered Owner or an
attorney for such owner duly authorized in writing, the Village shall execute and the Bond
Registrar shall authenticate, date and deliver in the name of the transferee or transferees or, in the
case of an exchange, the Registered Owner, a new fully registered Bond or Bonds of like tenor,
of the same maturity, bearing the same interest rate, of authorized denominations, for a like
aggregate principal amount.
The Bond Registrar shall not be required to transfer or exchange any Bond during the
period from the close of business on the Record Date for an interest payment to the opening of
business on such interest payment date or during the period of 15 days preceding the giving of
notice of redemption of Bonds or to transfer or exchange any Bond all or a portion of which has
been called for redemption.
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Certain of the Bonds are subject to optional redemption as set forth in the Ordinance.
Notice of any such redemption shall be given by the Bond Registrar on behalf of the Village as
set forth in the Ordinance.
The Village, the Bond Registrar and the Paying Agent may deem and treat the Registered
Owner hereof as the absolute owner hereof for the purpose of receiving payment of or on
account of principal hereof and interest due hereon and for all other purposes, and the Village,
the Bond Registrar and the Paying Agent shall not be affected by any notice to the contrary.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto
I Here insert Social Security Number,
Employer Identification Number or
other Identifying Number
(Name and Address of Assignee)
the within Bond and does hereby irrevocably constitute and appoint
as attorney to transfer the said Bond on the books kept for registration thereof with full power of
substitution in the premises.
Dated:
Signature guaranteed:
NOTICE: The signature to this transfer and assignment must correspond with the name of the
Registered Owner as it appears upon the face of the within Bond in every particular,
without alteration or enlargement or any change whatever.
Section 11. Tax Levy. For the purpose of providing funds required to pay the interest on
the Bonds promptly when and as the same falls due, and to pay and discharge the principal
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thereof at maturity, there is hereby levied upon all of the taxable property within the Village, in
the years for which any of the Bonds are outstanding, a direct annual tax sufficient for that
purpose; and there is hereby levied on all of the taxable property in the Village, in addition to all
other taxes, the following direct annual taxes (the Pledged Taxes as hereinabove defined):
FOR THE YEAR
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
A TAX SUFFICIENT TO PRODUCE THE DOLLAR SUM OF:
$
for interest and principal up to and including
December 1, 2009
for interest
for interest
for interest
for interest
for interest
for interest
for interest
for interest
for interest
for interest
for interest
for interest
for interest
for interest and principal
for interest and principal
for interest and principal
for interest and principal
for interest and principal
for interest and principal
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
The Pledged Taxes and other moneys on deposit in the Bond Fund shall be applied to pay the
principal of and interest on the Bonds.
Interest or principal coming due at any time when there are insufficient funds on hand
from the Pledged Taxes to pay the same shall be paid promptly when due from current funds on
hand in advance of the collection of the Pledged Taxes herein levied; and when the Pledged
Taxes shall have been collected, reimbursement shall be made to said funds in the amount so
advanced. The Village covenants and agrees with the purchasers and registered owners of the
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Bonds that so long as any of the Bonds remain outstanding, the Village will take no action or fail
to take any action which in any way would adversely affect the ability of the Village to levy and
collect the foregoing tax levy. The Village and its officers will comply with all present and
future applicable laws in order to assure that the Pledged Taxes may be levied, extended and
collected as provided herein and deposited into the Bond Fund.
Whenever other funds from any lawful source are made available for the purpose of
paying any principal of or interest on the Bonds so as to enable the abatement of the taxes levied
herein for the payment of same, the Board shall, by proper proceedings, direct the deposit of
such funds into the Bond Fund and further shall direct the abatement of the taxes by the amount
so deposited. A certified copy or other notification of any such proceedings abating taxes may
then be filed with the County Clerk in a timely manner to effect such abatement.
Section 12. Filing with County Clerk. Promptly, as soon as this Ordinance becomes
effective, a copy hereof, certified by the Village Clerk of the Village shall be filed with the
County Clerk; and the County Clerk shall in and for each of the years 2008 to 2027, inclusive,
ascertain the rate percent required to produce the aggregate tax hereinbefore provided to be
levied in each of said years; and the County Clerk shall extend the same for collection on the tax
books in connection with other taxes levied in said years in and by the Village for general
corporate purposes of the Village; and in said years such annual tax shall be levied and collected
by and for and on behalf of the Village in like manner as taxes for general corporate purposes for
said years are levied and collected, and in addition to and in excess of all other taxes.
Section 13. Sale of Bonds. The Bonds hereby authorized shall be executed as in this
Ordinance provided as soon after the passage hereof as may be, and thereupon be deposited with
the Treasurer of the Village, and be by said Treasurer delivered to
, the purchaser thereof (the "Purchaser"), upon receipt of the
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purchase price therefor, the same being $
; the contract for the sale of the Bonds
heretofore entered into (the "Purchase Contract") is in all respects ratified, approved and
confirmed, it being hereby found and determined that the Bonds have been sold at such price and
bear interest at such rates that neither the true interest cost (yield) nor the net interest rate
received upon such sale exceed the maximum rate otherwise authorized by Illinois law and that
the Purchase Contract is in the best interests of the Village and that no person holding any office
of the Village, either by election or appointment, is in any manner financially interested directly
in his own name or indirectly in the name of any other person, association, trust or corporation,
in the Purchase Contract.
The use by the Purchaser of any Preliminary Official Statement and any final Official
Statement relating to the Bonds (the "Official Statement") is hereby ratified, approved and
authorized; the execution and delivery of the Official Statement is hereby authorized; and the
officers of the Board are hereby authorized to take any action as may be required on the part of
the Village to consummate the transactions contemplated by the Purchase Contract, this
Ordinance, said Preliminary Official Statement, the Official Statement and the Bonds.
Section 14. Creation of Funds and Appropriations. The proceeds derived from the sale
of the Bonds shall be used as follows:
A. Accrued interest and premium, if any, on the Bonds shall be and is hereby
appropriated for the purpose of paying the first interest due on the Bonds, and to such end
is hereby ordered to be deposited into the "General Obligation Bonds, Series 2009, Bond
Fund" (the "Bond Fund"), hereby created, which shall be the fund for the payment of
principal of and interest on the Bonds. Taxes received for the payment of the Bonds shall
be deposited into the Bond Fund and used solely and only for the purpose of paying the
Bonds. Interest received from investments on deposit in the Bond Fund shall be retained
therein as a credit against future deposits or transferred to such other fund as the Board
may from time to time determine.
The Pledged Taxes shall either be deposited into the Bond Fund and used solely
and only for paying the principal of and interest on the Bonds or be used to reimburse a
fund or account from which advances to the Bond Fund may have been made to pay
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principal of or interest on the Bonds prior to receipt of Pledged Taxes. Interest income or
investment profit earned in the Bond Fund shall be retained in the Bond Fund for
payment of the principal of or interest on the Bonds on the interest payment date next
after such interest or profit is received or, to the extent lawful and as determined by the
Board, transferred to such other fund as may be determined. The Village hereby pledges,
as equal "and ratable security for the Bonds, all present and future proceeds of the Pledged
Taxes for the sole benefit of the registered owners of the Bonds, subject to the reserved
right of the Board to transfer certain interest income or investment profit earned in the
Bond Fund to other funds of the Village, as described in the preceding sentence.
B. The balance of the proceeds of the Bonds shall be set aside in a separate
fund, hereby created, and designated as the "Project Fund" (the "Project Fund").
Money in the Project Fund shall be used to pay all costs of the Project and all costs and
expenses incidental or allocable or related thereto, including all costs of issuance of the
Bonds. The Board reserves the right, as it becomes necessary from time to time, to revise
the list of expenditures hereinabove set forth, to change priorities, to revise cost
allocations between expenditures and to substitute projects, in order to meet current needs
of the Village; subject, however, to the tax covenants set forth herein.
Section 15. Non-Arbitrage and Tax-Exemption. One purpose of this Section is to set
forth various facts regarding the Bonds and to establish the expectations of the Board and the
Village as to future events regarding the Bonds and the use of Bond proceeds. The certifications,
covenants and representations contained herein and at the time of the Closing are made on behalf
of the Village for the benefit of the owners from time to time of the Bonds. In addition to
providing the certifications, covenants and representations contained herein, the Village hereby
covenants that it will not take any action, omit to take any action or permit the taking or omission
of any action within its control (including, without limitation, making or permitting any use of
the proceeds of the Bonds) if taking, permitting or omitting to take such action would cause any
of the Bonds to be an arbitrage bond or a private activity bond within the meaning of the
hereinafter defined Code or would otherwise cause the interest on the Bonds to be included in the
gross income of the recipients thereof for federal income tax purposes. The Village
acknowledges that, in the event of an examination by the Internal Revenue Service of the
exemption from federal income taxation for interest paid on the Bonds, under present rules, the
Village may be treated as a "taxpayer" in such examination and agrees that it will respond in a
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commercially reasonable manner to any inquiries from the Internal Revenue Service in
connection with such an examination. The Board and the Village certify, covenant and represent
as follows:
1.1. Definitions. In addition to such other words and terms used and defined in
this Ordinance, the following words and terms used in this Section shall have the
following meanings unless, in either case, the context or use clearly indicates another or
different meaning is intended:
"Affiliated Person" means any Person that (a) at any time during the six months
prior to the execution and delivery of the Bonds, (i) has more than five percent of the
voting power of the governing body of the Village in the aggregate vested in its directors,
officers, owners, and employees or, (ii) has more than five percent of the voting power of
its governing body in the aggregate vested in directors, officers, board members or
employees of the Village or (b) during the one-year period beginning six months prior to
the execution and delivery of the Bonds, (i) the composition of the governing body of
which is modified or established to reflect (directly or indirectly) representation of the
interests of the Village (or for which an agreement, understanding, or arrangement
relating to such a modification or establishment during that one-year period) or (ii) the
composition of the governing body of the Village is modified or established to reflect
(directly or indirectly) representation of the interests of such Person (or for which an
agreement, understanding, or arrangement relating to such a modification or
establishment during that one-year period).
"Bond Counsel" means Chapman and Cutler LLP or any other nationally
recognized firm of attorneys experienced in the field of municipal bonds whose opinions
are generally accepted by purchasers of municipal bonds.
"Capital Expenditures" means costs of a type that would be properly chargeable
to a capital account under the Code (or would be so chargeable with a proper election)
under federal income tax principles if the Village were treated as a corporation subject to
federal income taxation, taking into account the definition of Placed-in-Service set forth
herein.
"Closing" means the first date on which the Village is receiving the purchase
price for the Bonds.
"Code" means the Internal Revenue Code of 1986, as amended.
"Commingled Fund" means any fund or account containing both Gross Proceeds
and an amount in excess of $25,000 that are not Gross Proceeds if the amounts in the
fund or account are invested and accounted for, collectively, without regard to the source
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of funds deposited in the fund or account. An open-ended regulated investment company
under Section 851 of the Code is not a Commingled Fund.
"Control" means the possession, directly or indirectly through others, of either of
the following discretionary and non-ministerial rights or powers over another entity:
(a) to approve and to remove without cause a controlling portion of the
governing body of a Controlled Entity; or
(b) to require the use of funds or assets of a Controlled Entity for any
purpose.
"Controlled Entity" means any entity or one of a group of entities that is subject
to Control by a Controlling Entity or group of Controlling Entities.
"Controlled Group" means a group of entities directly or indirectly subject to
Control by the same entity or group of entities, including the entity that has Control of the
other entities.
"Controlling Entity" means any entity or one of a group of entities directly or
indirectly having Control of any entities or group of entities.
"Costs of Issuance" means the costs of issuing the Bonds, including underwriters'
discount and legal fees.
"De minimis Amount of Original Issue Discount or Premium" means with respect
to an obligation (a) any original issue discount or premium that does not exceed two
percent of the stated redemption price at maturity of the Bonds plus (b) any original issue
premium that is attributable exclusively to reasonable underwriter's compensation.
"External Commingled Fund" means a Commingled Fund in which the Village
and all members of the same Controlled Group as the Village own, in the aggregate, not
more than ten percent of the beneficial interests. .
"GIC" means (a) any investment that has specifically negotiated withdrawal or
reinvestment provisions and a specifically negotiated interest rate and (b) any agreement
to supply investments on two or more future dates (e.g., a forward supply contract).
"Gross Proceeds" means amounts in the Bond Fund and the Project Fund.
"Net Sale Proceeds" means amounts actually or constructively received from the
sale of the Bonds reduced by any such amounts that are deposited in a reasonably
required reserve or replacement fund for the Bonds.
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"Person" means any entity with standing to be sued or to sue, including any
natural person, corporation, body politic, governmental unit, agency, authority,
partnership, trust, estate, association, company, or group of any of the above.
"Placed-in-Service" means the date on which, based on all facts and
circumstances (a) a facility has reached a degree of completion that would permit its
operation at substantially its design level and (b) the facility is, in fact, in operation at
such level.
"Private Business Use" means any use of the Project by any Person other than a
state or local government unit, including as a result of (i) ownership, (ii) actual or
beneficial use pursuant to a lease or a management, service, incentive payment, research
or output contract or (iii) any other similar arrangement, agreement or understanding,
whether written or oral, except for use of the Project on the same basis as the general
public. Private Business Use includes any formal or informal arrangement with any
person other than a state or local governmental unit that conveys special legal
entitlements to any portion of the Project that is available for use by the general public or
that conveys to any person other than a state or local governmental unit any special
economic benefit with respect to any portion of the Project that is not available for use by
the general public.
"Qualified Administrative Costs of Investments" means (a) reasonable, direct
administrative costs (other than carrying costs) such as separately stated brokerage or
selling commissions but not legal and accounting fees, recordkeeping, custody and
similar costs; or (b) all reasonable administrative costs, direct or indirect, incurred by a
publicly offered regulated investment company or an External Commingled Fund.
"Qualified Tax Exempt Obligations" means (a) any obligation described in
Section 103(a) of the Code, the interest on which is excludable from gross income of the
owner thereof for federal income tax purposes and is not an item of tax preference for
purposes of the alternative minimum tax imposed by Section 55 of the Code; (b) an
interest in a regulated investment company to the extent that at least ninety-five percent
of the income to the holder of the interest is interest which is excludable from gross
income under Section 103 of the Code of any owner thereof for federal income tax
purposes and is not an item of tax preference for purposes of the alternative minimum tax
imposed by Section 55 of the Code; and (c) certificates of indebtedness issued by the
United States Treasury pursuant to the Demand Deposit State and Local Government
Series program described in 31 C.F.R. pt. 344.
"Rebate Fund" means the fund, if any, identified and defined in paragraph 4.2
herein.
"Rebate Provisions" means the rebate requirements contained in Section 148( f)
of the Code and in the Regulations.
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"Regulations" means United States Treasury Regulations dealing with the
tax-exempt bond provisions of the Code.
"Reimbursed Expenditures" means expenditures of the Village paid prior to
Closing to which Sale Proceeds or investment earnings thereon are or will be allocated.
"Sale Proceeds" means amounts actually or constructively received from the sale
of the Bonds, including (a) amounts used to pay underwriters' discount or compensation
and accrued interest, other than accrued interest for a period not greater than one year
before Closing but only if it is to be paid within one year after Closing and (b) amounts
derived from the sale of any right that is part of the terms of a Bond or is otherwise
associated with a Bond (e.g., a redemption right).
"Yield" means that discount rate which when used in computing the present value
of all payments of principal and interest paid and to be paid on an obligation (using
semiannual compounding on the basis of a 360-day year) produces an amount equal to
the obligation's purchase price (or in the case of the Bonds, the issue price as established
in paragraph 5.1 hereof), including accrued interest.
"Yield Reduction Payment" means a rebate payment or any other amount paid to
the United States in the same manner as rebate amounts are required to be paid or at such
other time or in such manner as the Internal Revenue Service may prescribe that will be
treated as a reduction in Yield of an investment under the Regulations.
2.1. Purpose of the Bonds. The Bonds are being issued to finance the Project in
a prudent manner consistent with the revenue needs of the Village. A breakdown of the
sources and uses of funds is set forth in the preceding Section of this Ordinance. Except
for any accrued interest on the Bonds used to pay first interest due on the Bonds, no
proceeds of the Bonds will be used more than 30 days after the date of issue of the Bonds
for the purpose of paying any principal or interest on any issue of bonds, notes,
certificates or warrants or on any installment contract or other obligation of the Village or
for the purpose of replacing any funds of the Village used for such purpose.
2.2. The Project-Binding Commitment and Timing. The Village has incurred or
will, within six months of the Closing, incur a substantial binding obligation (not subject
to contingencies within the control of the Village or any member of the same Controlled
Group as the Village) to a third party to expend at least five percent of the Net Sale
Proceeds on the Project. It is expected that the work of acquiring and constructing the
Project and the expenditure of amounts deposited into the Project Fund will continue to
proceed with due diligence through March 11, 2012, at which time it is anticipated that
all Sale Proceeds and investment earnings thereon will have been spent.
2.3. Reimbursement. None of the Sale Proceeds or investment earnings thereon
will be used for Reimbursed Expenditures.
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. 2.4. Working Capital. All Sale Proceeds and investment earnings thereon will
be used, directly or indirectly, to finance Capital Expenditures other than the following:
(a) an amount not to exceed five percent of the Sale Proceeds for
working capital expenditures directly related to Capital Expenditures financed by
the Bonds;
(b) payments of interest on the Bonds for a period commencing at
Closing and ending on the later of the date three years after Closing or one year
after the date on which the Project is Placed-in-Service;
(c) Costs of Issuance and Qualified Administrative Costs of Investments;
(d) payments of rebate or Yield Reduction Payments made to the United
States under the Regulations;
( e) principal of or interest on the Bonds paid from unexpected excess
Sale Proceeds and investment earnings thereon; and
(f) investment earnings that are commingled with substantial other
revenues and are expected to be allocated to expenditures within six months.
2.5. Consequences of Contrary Expenditure. The Village acknowledges that if
Sale Proceeds and investment earnings thereon are spent for non-Capital Expenditures
other than as permitted by paragraph 2.4 hereof, a like amount of then available funds of
the Village will be treated as unspent Sale Proceeds.
2.6. Investment of Bond Proceeds. Not more than 50% of the Sale Proceeds and
investment earnings thereon are or will be invested in investments (other than Qualified
Tax Exempt Obligations) having a Yield that is substantially guaranteed for four years or
more. No portion of the Bonds is being issued solely for the purpose of investing a
portion of Sale Proceeds or investment earnings thereon at a Yield higher than the Yield
on the Bonds.
It is expected that the Sale Proceeds deposited into the Project Fund, including
investment earnings on the Project Fund, will be spent to pay costs of the Project and
interest on the Bonds not later than the date set forth in paragraph 2.2 hereof, the
investment earnings on the Bond Fund will be spent to pay interest on the Bonds, or to
the extent permitted by law, investment earnings on amounts in the Project Fund and the
Bond Fund will be commingled with substantial revenues from the governmental
operations of the Village, and the earnings are reasonably expected to be spent for
governmental purposes within six months of the date earned. Interest earnings on the
Project Fund and the Bond Fund have not been earmarked or restricted by the Board for a
designated purpose.
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2.7. No Grants. None of the Sale Proceeds or investment earnings thereon will
be used to make grants to any person.
2.8. Hedges. Neither the Village nor any member of the same Controlled Group
as the Village has entered into or expects to enter into any hedge (e.g., an interest rate
swap, interest rate cap, futures contract, forward contract or an option) with respect to the
Bonds. The Village acknowledges that any such hedge could affect, among other things,
the calculation of Bond Yield under the Regulations. The Internal Revenue Service could
recalculate Bond Yield if the failure to account for the hedge fails to clearly reflect the
economic substance of the transaction.
The Village also acknowledges that if it acquires a hedging contract with an
investment element (including e.g. an off-market swap agreement, or any cap agreement
for which all or a portion of the premium is paid at, or before the effective date of the cap
agreement), then a portion of such hedging contract may be treated as an investment of
Gross Proceeds of the Bonds, and be subject to the fair market purchase price rules,
rebate and yield restriction. The Village agrees not to use proceeds of the Bonds to pay
for any such hedging contract in whole or in part. The Village also agrees that it will not
give any assurances to any Bond holder or any credit or liquidity enhancer with respect to
the Bonds that any such hedging contract will be entered into or maintained. The Village
recognizes that if a portion of a hedging contract is determined to be an investment of
gross proceeds, such portion may not be fairly priced even if the hedging contract as a
whole is fairly priced.
2.9. Internal Revenue Service Audits. The Village represents that the Internal
Revenue Service has not contacted the Village regarding any obligations issued by or on
behalf of the Village. To the best of the knowledge of the Village, no such obligations of
the Village are currently under examination by the Internal Revenue Service.
3.1. Use of Proceeds. (a) The use of the Sale Proceeds and investment earnings
thereon and the funds held under this Ordinance at the time of Closing are described in
the preceding Section of this Ordinance. No Sale Proceeds will be used to pre-pay for
goods or services to be received over a period of years prior to the date such goods or
services are to be received. No Sale Proceeds or any investment earnings thereon will be
used to pay for or otherwise acquire goods or services from an Affiliated Person.
(b) Only the funds and accounts described in said Section will be funded at
Closing. There are no other funds or accounts created under this Ordinance, other than
the Rebate Fund if it is created as provided in paragraph 4.2 hereof.
(c) Principal of and interest on the Bonds will be paid from the Bond Fund.
(d) Any Costs of Issuance incurred in connection with the issuance of the Bonds
to be paid by the Village will be paid at the time of Closing.
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(e) The costs of the Project will be paid from the Project Fund and no other
moneys (except for investment earnings on amounts in the Project Fund) are expected to
be deposited therein.
3.2. Purpose of Bond Fund. The Bond Fund will be used primarily to achieve a
proper matching of revenues and earnings with principal and interest paYments on the
Bonds in each bond year. It is expected that the Bond Fund will be depleted at least once
a year, except for a reasonable carry over amount not to exceed the greater of (a) the
earnings on the investment of moneys in the Bond Fund for the immediately preceding
bond year or (b) 1/12th of the principal and interest payments on the Bonds for the
immediately preceding bond year.
3.3. No Other Gross Proceeds. (a) Except for the Bond Fund and the Project
Fund, and except for investment earnings that have been commingled as described in
paragraph 2.6 and any credit enhancement or liquidity device related to the Bonds, after
the issuance of the Bonds, neither the Village nor any member of the same Controlled
Group as the Village has or will have any property, including cash, securities or will have
any property, including cash, securities or any other property held as a passive vehicle for
the production of income or for investment purposes, that constitutes:
(i) Sale Proceeds;
(ii) amounts in any fund or account with respect to the Bonds (other than
the Rebate Fund);
(iii) amounts that have a sufficiently direct nexus to the Bonds or to the
governmental purpose of the Bonds to conclude that the amounts would have
been used for that governmental purpose if the Bonds were not used or to be used
for that governmental purpose (the mere availability or preliminary earmarking of
such amounts for a governmental purpose, however, does not itself establish such
a sufficient nexus);
(iv) amounts in a debt service fund, redemption fund, reserve fund,
replacement fund or any similar fund tei the extent reasonably expected to be used
directly or indirectly to pay principal of or interest on the Bonds or any amounts
for which there is provided, directly or indirectly, a reasonable assurance that the
amount will be available to pay principal of or interest on the Bonds or any
obligations under any credit enhancement or liquidity device with respect to the
Bonds, even if the Village encounters financial difficulties;
(v) any amounts held pursuant to any agreement (such as an agreement to
maintain certain levels of types of assets) made for the benefit of the Bondholders
or any credit enhancement provider, including any liquidity device or negative
pledge (e.g., any amount pledged to pay principal of or interest on an issue held
under an agreement to maintain the amount at a particular level for the direct or
indirect benefit of holders of the Bonds or a guarantor of the Bonds); or
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(vi) amounts actually or constructively received from the investment and
reinvestment of the amounts described in (i) or (ii) above.
(b) No compensating balance, liquidity account, negative pledge of property
held for investment purposes required to be maintained at least at a particular level or
similar arrangement exists with respect to, in any way, the Bonds or any credit
enhancement or liquidity device related to the Bonds.
(c) The term of the Bonds is not longer than is reasonably necessary for the
governmental purposes of the Bonds. The average reasonably expected economic life of
the Project is at least 20 years. The weighted average maturity of the Bonds does not
exceed 20 years and does not exceed 120 percent of the average reasonably expected
economic life of the Project. The maturity schedule of the Bonds (the "Principal
Payment Schedule") is based on an analysis of revenues expected to be available to pay
debt service on the Bonds. The Principal Payment Schedule is not more rapid (i.e.,
having a lower average maturity) because a more rapid schedule would place an undue
burden on tax rates and cause such rates to be increased beyond prudent levels, and
would be inconsistent with the governmental purpose of the Bonds as set forth in
paragraph 2.1 hereof.
4.1. Compliance with Rebate Provisions. The Village covenants to take such
actions and make, or cause to be made, all calculations, transfers and payments that may
be necessary to comply with the Rebate Provisions applicable to the Bonds. The Village
will make, or cause to be made, rebate payments with respect to the Bonds in accordance
with law.
4.2. Rebate Fund. The Village is hereby authorized to create and establish a
special fund to be known as the Rebate Fund (the "Rebate Fund"), which, if created,
shall be continuously held, invested, expended and accounted for in accordance with this
Ordinance. Moneys in the Rebate Fund shall not be considered moneys held for the
benefit of the owners of the Bonds. Except as provided in the Regulations, moneys in the
Rebate Fund (including earnings and deposits therein) shall be held in trust for payment
to the United States as required by the Rebate Provisions and by the Regulations and as
contemplated under the provisions of this Ordinance.
4.3. Records. The Village agrees to keep and retain or cause to be kept and
retained until three years after the Bonds are paid in full adequate records with respect to
the investment of all Gross Proceeds and amounts in the Rebate Fund. Such records shall
include: (a) purchase price; (b) purchase date; (c) type of investment; (d) accrued interest
paid; (e) interest rate; (f) principal amount; (g) maturity date; (h) interest payment date;
(i) date of liquidation; and (j) receipt upon liquidation.
If any investment becomes Gross Proceeds on a date other than the date such
investment is purchased, the records required to be kept shall include the fair market
value of such investment on the date it becomes Gross Proceeds. If any investment is
retained after the date the last Bond is retired, the records required to be kept shall
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include the fair market value of such investment on the date the last Bond is retired.
Amounts or investments will be segregated whenever necessary to maintain these
records.
4.4. Fair Market Value,' Certificates of Deposit and Investment Agreements. The
Village will continuously invest all amounts on deposit in the Rebate Fund, together with
the amounts, if any, to be transferred to the Rebate Fund, in any investment permitted
under this Ordinance. In making investments of Gross Proceeds or of amounts in the
Rebate Fund the Village shall take into account prudent investment standards and the
date on which such moneys may be needed. Except as provided in the next sentence, all
amounts that constitute Gross Proceeds and all amounts in the Rebate Fund shall be
invested at all times to the greatest extent practicable, and no amounts may be held as
cash or be invested in zero yield investments other than obligations of the United States
purchased directly from the United States. In the event moneys cannot be invested, other
than as provided in this sentence due to the denomination, price or availability of
investments, the amounts shall be invested in an interest bearing deposit of a bank with a
yield not less than that paid to the general public or held uninvested to the minimum
extent necessary.
Gross Proceeds and any amounts in the Rebate Fund that are invested in
certificates of deposit or in GICs shall be invested only in accordance with the following
prOVISIons:
(a) Investments in certificates of deposit of banks or savings and loan
associations that have a fixed interest rate, fixed payment schedules and
substantial penalties for early withdrawal shall be made only if either (i) the Yield
on the certificate of deposit (A) is not less than the Yield on reasonably
comparable direct obligations of the United States and (B) is not less than the
highest Yield that is published or posted by the provider to be currently available
from the provider on reasonably comparable certificates of deposit offered to the
public or (ii) the investment is an investment in a GIC and qualifies under
paragraph (b) below.
(b) Investments in GICs shall be made only if
(i) the bid specifications are in writing, include all material terms
of the bid and are timely forwarded to potential providers (a term is
material if it may directly or indirectly affect the yield on the GIC);
(ii) the terms of the bid specifications are commercially reasonable
(a term is commercially reasonable if there is a legitimate business
purpose for the term other than to reduce the yield on the GIC);
(iii) all bidders for the GIC have equal opportunity to bid so that,
for example, no bidder is given the opportunity to review others bids (a
last look) before bidding;
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(iv) any agent used to conduct the bidding for the OIC does not bid
to provide the OIC;
(v) at least three of the providers solicited for bids for the OIC are
reasonably competitive providers of investments of the type purchased
(i.e., providers that have established industry reputations as competitive
providers of the type of investments being purchased);
(vi) at least three of the entities that submit a bid do not have a
financial interest in the Bonds;
(vii) at least one of the entities that provided a bid is a reasonably
competitive provider that does not have a financial interest in the Bonds;
(viii) the bid specifications include a statement notifying potential
providers that submission of a bid is a representation that the potential
provider did not consult with any other provider about its bid, that the bid
was determined without regard to any other formal or informal agreement
that the potential provider has with the Village or any other person
(whether or not in connection with the Bonds) and that the bid is not being
submitted solely as a courtesy to the Village or any other person for
purposes of satisfying the federal income tax requirements relating to the
bidding for the OIC;
(ix) the determination of the terms of the OIC takes into account
the reasonably expected deposit and drawdown schedule for the amounts
to be invested;
(x) the highest-yielding OIC for which a qualifying bid is made
(determined net of broker's fees) is in fact purchased; and
(xi) the obligor on the OIC certifies the administrative costs that it
is paying or expects to pay to third parties in connection with the OIC.
(c) If a OIC is purchased, the Village will retain the following records
with its bond documents until three years after the Bonds are redeemed in their
entirety:
(i) a copy of the OIC;
(ii) the receipt or other record of the amount actually paid for the
OIC, including a record of any administrative costs paid, and the
certification under subparagraph (b )(xi) of this paragraph;
(iii) for each bid that is submitted, the name of the person and entity
submitting the bid, the time and date of the bid, and the bid results; and
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(iv) the bid solicitation form and, if the terms of the GIC deviated
from the bid solicitation form or a submitted bid is modified, a brief
statement explaining the deviation and stating the purpose for the
deviation.
Moneys to be rebated to the United States shall be invested to mature on or prior
to the anticipated rebate payment date. All investments made with Gross Proceeds or
amounts in the Rebate Fund shall be bought and sold at fair market value. The fair
market value of an investment is the price at which a willing buyer would purchase the
investment from a willing seller in a bona fide, arm's length transaction. Except for
investments specifically described in this Section and United States Treasury obligations
that are purchased directly from the United States Treasury, only investments that are
traded on an established securities market, within the meaning of regulations promulgated
under Section 1273 of the Code, will be purchased with Gross Proceeds. In general, an
"established securities market" includes: (i) property that is listed on a national securities
exchange, an interdealer quotation system or certain foreign exchanges; (ii) property that
is traded on a Commodities Futures Trading Commission designated board of trade or an
interbank market; (iii) property that appears on a quotation medium; and (iv) property for
which price quotations are readily available from dealers and brokers. A debt instrument
is not treated as traded on an established market solely because it is convertible into
property which is so traded.
An investment of Gross Proceeds in an External Commingled Fund shall be made
only to the extent that such investment is made without an intent to reduce the amount to
be rebated to the United States Government or to create a smaller profit or a larger loss
than would have resulted if the transaction had been at arm's length and had the rebate or
Yield restriction requirements not been relevant to the Village. An investment of Gross
Proceeds shall be made in a Commingled Fund other than an External Commingled Fund
only if the investments made by such Commingled Fund satisfy the provisions of this
paragraph.
A single investment, or multiple investments awarded to a provider based on a
single bid may not be used for funds subject to different rules relating to rebate or yield
restriction.
The foregoing provisions of this paragraph satisfy various safe harbors set forth in
the Regulations relating to the valuation of certain types of investments. The safe harbor
provisions of this paragraph are contained herein for the protection of the Village, who
has covenanted not to take any action to adversely affect the tax-exempt status of the
interest on the Bonds. The Village will contact Bond Counsel if it does not wish to
comply with the provisions of this paragraph and forego the protection provided by the
safe harbors provided herein.
4.5. Arbitrage Elections. The President, Village Clerk and Treasurer of the
Village are hereby authorized to execute one or more elections regarding certain matters
with respect to arbitrage.
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5.1. Issue Price. For purposes of determining the Yield on the Bonds, the
purchase price of the Bonds is equal to the first offering price (including accrued interest)
at which the Purchaser sold at least ten percent of the principal amount of each maturity
of the Bonds to the public (excluding bond houses, brokers or similar persons or
organizations acting in the capacity of underwriters, placement agents or wholesalers).
All of the Bonds have been the subject of a bona fide initial offering to the public
(excluding bond' houses, brokers, or similar persons or organizations acting in the
capacity. of underwriters, placement agents or wholesalers) at prices equal to those set
forth in the Official Statement. Based upon prevailing market conditions, such prices are
not less than the fair market value of each Bond as of the sale date for the Bonds.
5.2. Yield Limits. Except as provided in paragraph (a) or (b), all Gross Proceeds
shall be invested at market prices and at a Yield (after taking into account any Yield
Reduction Payments) not in excess of the Yield on the Bonds plus, if only amounts in the
Project Fund are subject to this yield limitation, 1/8th of one percent.
The following may be invested without Yield restriction:
(a)(i) amounts on deposit in the Bond Fund (except for capitalized interest)
that have not been on deposit under the Ordinance for more than 13 months, so
long as the Bond Fund continues to qualify as a bona fide debt service fund as
described in paragraph 3.2 hereof;
(ii) amounts on deposit in the Project Fund that are reasonably expected
to pay for the costs of the Project, costs of issuance of the Bonds, or interest on
the Bonds during the three year period beginning on the date of issue of the Bonds
prior to three years after Closing;
(iii) amounts in the Bond Fund to be used to pay capitalized interest on
the Bonds prior to the earlier of three years after Closing or the payment of all
capitalized interest;
(b )(i) An amount not to exceed the lesser of $100,000 or five percent of the
Sale Proceeds;
(ii) amounts invested in Qualified Tax Exempt Obligations (to the extent
permitted by law and this Ordinance);
(iii) amounts in the Rebate Fund;
(iv) all amounts other than Sale Proceeds for the first 30 days after they
become Gross Proceeds; and
(v) all amounts derived from the investment of Sale Proceeds or
investment earnings thereon for a period of one year from the date received.
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5.3. Continuing Nature of Yield Limits. Except as provided in paragraph 7.10
hereof, once moneys are subject to the Yield limits of paragraph 5.2 hereof, such moneys
remain Yield restricted until they cease to be Gross Proceeds.
5.4. Federal Guarantees. Except for investments meeting the requirements of
paragraph 5.2(a) hereof, investments of Gross Proceeds shall not be made in
(a) investments constituting obligations of or guaranteed, directly or indirectly, by the
United States (except obligations of the United States Treasury, or investments in
obligations issued pursuant to Section 21B(d)(3) of the Federal Home Loan Bank, as
amended (e.g., Refcorp Strips)); or (b) federally insured deposits or accounts (as defined
in Section 149(b)( 4 )(B) of the Code). Except as otherwise permitted in the immediately
prior sentence and in the Regulations, no portion of the payment of principal or interest
on the Bonds or any credit enhancement or liquidity device relating to the foregoing is or
will be guaranteed, directly or indirectly (in whole or in part), by the United States (or
any agency or instrumentality thereof), including a lease, incentive payment, research or
output contract or any similar arrangement, agreement or understanding with the United
States or any agency or instrumentality thereof. No portion of the Gross Proceeds has
been or will be used to make loans the payment of principal or interest with respect to
which is or will be guaranteed (in whole or in part) by the United States (or any agency or
instrumentality thereof). Neither this paragraph nor paragraph 5.5 hereof applies to any
guarantee by the Federal Housing Administration, the Federal National Mortgage
Association, the Federal Home Loan Mortgage Corporation, the Government National
Mortgage Association, the Student Loan Marketing Association or the Bonneville Power
Administration pursuant to the Northwest Power Act (16 U.S.C. 839d) as in effect on the
date of enactment of the Tax Reform Act of 1984.
5.5. Investments After the Expiration of Temporary Periods, Etc. After the
expiration of the temporary period set forth in paragraph 5.2(a)(ii) hereof, amounts in the
Project Fund may not be invested in (i) federally insured deposits or accounts (as defined
in Section 149(b)(4)(B) of the Code) or (ii) investments constituting obligations of or
guaranteed, directly or indirectly, by the United States (except obligations of the United
States Treasury or investments in obligations issued pursuant to Section 21B(d)(3) of the
Federal Home Loan Bank Act, as amended (e.g., Refcorp Strips). Any other amounts
that are subject to the yield limitation in paragraph 5.2 hereof because paragraph 5.2(a)
hereof is not applicable and amounts not subject to yield restriction only because they are
described in paragraph 5.2(b) hereof, are also subject to the limitation set forth in the
preceding sentence.
6.1. Payment and Use Tests. (a) No more than five percent of the Sale Proceeds
plus investment earnings thereon will be used, directly or indirectly, in whole or in part,
in any Private Business Use. The Village acknowledges that, for purposes of the
preceding sentence, Gross Proceeds used to pay costs of issuance and other common
costs (such as capitalized interest and fees paid for a qualified guarantee or qualified
hedge) or invested in a reserve or replacement fund must be ratably allocated among all
the purposes for which Gross Proceeds are being used.
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(b) The payment of more than five percent of the principal of or the interest on
the Bonds will not be, directly or indirectly (i) secured by any interest in (A) property
used or to be used in any Private Business Use or (B) payments in respect of such
property or (ii) on a present value basis, derived from payments (whether or not to the
Village or a member of the same Controlled Group as the Village) in respect of property,
or borrowed money, used or to be used in any Private Business Use.
(c) No more than the lesser of five percent of the sum of the Sale Proceeds and
investment earnings thereon or $5,000,000 will be used, directly or indirectly, to make or
finance loans to any persons. The Village acknowledges that, for purposes of the
preceding sentence, Gross Proceeds used to pay costs of issuance and other common
costs (such as capitalized interest and fees paid for a qualified guarantee or qualified
hedge) or invested in a reserve or replacement fund must be ratably allocated among all
the purposes for which Gross Proceeds are being used.
(d) No user of the Project other than a state or local governmental unit will use
more than five percent of the Project, in the aggregate, on any basis other than the same
basis as the general public.
6.2. I.R.S. Form 8038-G. The information contained in the Information Return
for Tax-Exempt Governmental Obligations, Form 8038-G, is true and complete. The
Village will file Form 8038-G (and all other required information reporting forms) in a
timely manner.
6.3. Bank Qualification. (a) The Village hereby designates each of the Bonds as
a "qualified tax-exempt obligation" for the purposes and within the meaning of
Section 265(b)(3) of the Code. In support of such designation, the Village hereby
certifies that (i) none of the Bonds will be at anytime a "private activity bond" (as defined
in Section 141 of the Code) other than a "qualified 501(c)(3) bond" (as defined in
Section 145 of the Code), (ii) as of the date hereof in calendar year 2009, the Village has
not issued any tax-exempt obligations of any kind other than the Bonds nor have any tax-
exempt obligations of any kind been issued on behalf of the Village and (Hi) not more
than $10,000,000 of obligations of any kind (including the Bonds) issued by or on behalf
of the Village during calendar year 2009 will be designated for purposes of
Section 265(b)(3) of the Code.
(b) The Village is not subject to Control by any entity, and there are no entities
subject to Control by the Village.
(c) On the date hereof, the Village does not reasonably anticipate that for
calendar year 2009 it will issue any Section 265 Tax-Exempt Obligations (other than the
Bonds), or that any Section 265 Tax-Exempt Obligations will be issued on behalf of it.
"Section 265 Tax-Exempt Obligations" are obligations the interest on which is
excludable from gross income of the owners thereof under Section 1 03 of the Code,
except for private activity bonds other than qualified 50 I (c )(3) bonds, both as defined in
Section 141 of the Code. The Village will not issue or permit the issuance on behalf of it
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or by any entity subject to Control by the Village (which may hereafter come into
existence) of Section 265 Tax-Exempt Obligations (including the Bonds) that exceed the
aggregate amount of $10,000,000 during calendar year 2009 unless it first obtains an
opinion of Bond Counsel to the effect that such issuance will not adversely affect the
treatment of the Bonds as "qualified tax~exempt obligations" for the purposes and within
the meaning of Section 265(b )(3) of the Code.
7.1. Termination; Interest of Village in Rebate Fund. The terms and provisions
set forth in this Section shall terminate at the later of (a) 75 days after the Bonds have
been fully paid and retired or (b) the date on which all amounts remaining on deposit in
the Rebate Fund, if any, shall have been paid to or upon the order of the United States
and any other payments required to satisfy the Rebate Provisions of the Code have been
made to the United States. Notwithstanding the foregoing, the provisions of
paragraphs 4.3, 4.4(c) and 7.9 hereof shall not terminate until the third anniversary of the
date the Bonds are fully paid and retired.
7.2. Separate Issue. Since a date that is 15 days prior to the date of sale of the
Bonds by the Village to the Purchaser, neither the Village nor any member of the same
Controlled Group as the Village has sold or delivered any tax-exempt obligations other
than the Bonds that are reasonably expected to be paid out of substantially the same
source of funds as the Bonds. Neither the Village nor any member of the same
Controlled Group as the Village will sell or deliver within 15 days after the date of sale of
the Bonds any tax-exempt obligations other than the Bonds that are reasonably expected
to be paid out of substantially the same source of funds as the Bonds.
7.3. No Sale of the Project. (a) Other than as provided in the next sentence,
neither the Project nor any portion thereof has been, is expected to be, or will be sold or
otherwise disposed of, in whole or in part, prior to the earlier of (i) the last date of the
reasonably expected economic life to the Village of the property (determined on the date
of issuance of the Bonds) or (ii) the last maturity date of the Bonds. The Village may
dispose of personal property in the ordinary course of an established government program
prior to the earlier of (i) the last date of the reasonably expected economic life to the
Village of the property (determined on the date of issuance of the Bonds) or (ii) the last
maturity of the Bonds, provided: (A) the weighted average maturity of the Bonds
financing the personal property is not greater than 120 percent of the reasonably expected
actual use of that property for governmental purposes; (B) the Village reasonably expects
on the issue date that the fair market value of that property on the date of disposition will
be not greater than 25 percent of its cost; (C) the property is no longer suitable for its
governmental purposes on the date of disposition; and (D) the Village deposits amounts
received from the disposition in a commingled fund with substantial tax or other
governmental revenues and the Village reasonably expects to spend the amounts on
governmental programs within six months from the date of the commingling.
(b) The Village acknowledges that if Bond-financed property is sold or
otherwise disposed of in a manner contrary to (a) above, such sale or disposition may
constitute a "deliberate action" within the meaning of the Regulations that may require
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remedial actions to prevent the Bonds from becoming private activity bonds. The Village
shall promptly contact Bond Counsel if a sale or other disposition of bond-financed
property is considered by the Village.
7.4. Purchase of Bonds by Village. The Village will not purchase any of the
Bonds except to cancel such Bonds.
7.5. First Call Date Limitation. The period between the date of Closing and the
first call date of the Bonds is not more than 10-1/2 years.
7.6. Registered Form. The Village recognizes that Section 149(a) of the Code
requires the Bonds to be issued and to remain in fully registered form in order that
interest thereon be exempt from federal income taxation under laws in force at the time
the Bonds are delivered. In this connection, the Village agrees that it will not take any
action to permit the Bonds to be issued in, or converted into, bearer or coupon form.
7. 7. First Amendment. The Village acknowledges and agrees that it will not use,
or allow the Project to be used, in a manner which is prohibited by the Establishment of
Religion Clause of the First Amendment to the Constitution of the United States of
America or by any comparable provisions of the Constitution of the State of Illinois.
7.8. Future Events. The Village acknowledges that any changes in facts or
expectations from those set forth herein may result in different Yield restrictions or rebate
requirements from those set forth herein. The Village shall promptly contact Bond
Counsel if such changes do occur.
7.9. Records Retention. The Village agrees to keep and retain or cause to be
kept and retained sufficient records to support the continued exclusion of the interest paid
on the Bonds from federal income taxation, to demonstrate compliance with the
covenants in this Ordinance and to show that all tax returns related to the Bonds
submitted or required to be submitted to the Internal Revenue Service are correct and
timely filed. Such records shall include, but are not limited to, basic records relating to
the Bond transaction (including this Ordinance and the Bond Counsel opinion);
documentation evidencing the expenditure of Bond proceeds; documentation evidencing
the use of Bond-financed property by public and private entities (i.e., copies of leases,
management contracts and research agreements); documentation evidencing all sources
of payment or security for the Bonds; and documentation pertaining to any investment of
Bond proceeds (including the information required under paragraphs 4.3 and 4.4 hereof
and in particular information related to the purchase and sale of securities, SLGs
subscriptions, yield calculations for each class of investments, actual investment income
received from the investment of proceeds, guaranteed investment contracts and
documentation of any bidding procedure related thereto and any fees paid for the
acquisition or management of investments and any rebate calculations). Such records
shall be kept for as long as the Bonds are outstanding, plus three (3) years after the later
of the final payment date of the Bonds or the final payment date of any obligations or
series of obligations issued to refund directly or indirectly all or any portion of the Bonds.
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7.10. Permitted Changes; Opinion of Bond Counsel. The Yield restrictions
contained in paragraph 5.2 hereof or any other restriction or covenant contained herein
need not be observed or may be changed if such nonobservance or change will not result
in the loss of any exemption for the purpose of federal income taxation to which interest
on the Bonds is otherwise entitled and the Village receives an opinion of Bond Counsel
to such effect. Unless the Village otherwise directs, such opinion shall be in such form
and contain such disclosures and disclaimers as may be required so that such opinion will
not be treated as a covered opinion or a state or local bond opinion for purposes of
Treasury Department regulations governing practice before the Internal Revenue Service
(Circular 230) 31 C.F.R. pt. 10.
7.11. Successors and Assigns. The terms, provisions, covenants and conditions of
this Section shall bind and inure to the benefit of the respective successors and assigns of
the Board and the Village.
7.12. Expectations. The Board has reviewed the facts, estimates and
circumstances in existence on the date of issuance of the Bonds. Such facts, estimates
and circumstances, together with the expectations of the Village as to future events, are
set forth in summary form in this Section. Such facts and estimates are true and are not
incomplete in any material respect. On the basis of the facts and estimates contained
herein, the Village has adopted the expectations contained herein. On the basis of such
facts, estimates, circumstances and expectations, it is not expected that Sale Proceeds,
investment earnings thereon or any other moneys or property will be used in a manner
that will cause the Bonds to be arbitrage bonds within the meaning of the Rebate
Provisions and the Regulations. Such expectations are reasonable and there are no other
facts, estimates and circumstances that would materially change such expectations.
The Village also agrees and covenants with the purchasers and holders of the Bonds from
time to time outstanding that, to the extent possible under Illinois law, it will comply with
whatever federal tax law is adopted in the future which applies to the Bonds and affects the tax-
exempt status of the Bonds.
The Board hereby authorizes the officials of the Village responsible for issuing the
Bonds, the. same being the President, Village Clerk and Treasurer of the Village, to make such
further covenants and certifications as may be necessary to assure that the use thereof will not
cause the Bonds to be arbitrage bonds and to assure that the interest on the, Bonds will be exempt
from federal income taxation. In connection therewith, the Village and the Board further agree:
(a) through their officers, to make such further specific covenants, representations as shall be
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truthful, and assurances as may be necessary or advisable; (b) to consult with counsel approving
the Bonds and to comply with such advice as may be given; (c) to pay to the United States, as
necessary, such sums of money representing required rebates of excess arbitrage profits relating
to the Bonds; (d) to file such forms, statements, and supporting documents as may be required
and in a timely manner; and (e) if deemed necessary or advisable by their officers, to employ and
pay fiscal agents, financial advisors, attorneys, and other persons to assist the Village in such
compliance.
Section 16. Rights and Duties of Bond Registrar and Paying Agent. If requested by the
Bond Registrar or the Paying Agent, or both, any officer of the Village is authorized to execute
standard forms of agreements between the Village and the Bond Registrar or Paying Agent with
respect to the obligations and duties of the Bond Registrar or Paying Agent hereunder. In
addition to the terms of such agreements and subject to modification thereby, the Bond Registrar
and Paying Agent by acceptance of duties hereunder agree:
(a) to act as bond registrar, paying agent, authenticating agent, and transfer
agent as provided herein;
(b) as to the Bond Registrar, to maintain a list of Bondholders as set forth herein
and to furnish such list to the Village upon request, but otherwise to keep such list
confidential to the extent permitted by law;
(c) to give notice of redemption of Bonds as provided herein;
(d) as to the Bond Registrar, to cancel and/or destroy Bonds which have been
paid at maturity or submitted for exchange or transfer;
(e) as to the Bond Registrar, to furnish the Village at least annually a certificate
with respect to Bonds cancelled and/or destroyed; and
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(f) to furnish the Village at least annually an audit confirmation of Bonds paid,
Bonds outstanding and payments made with respect to interest on the Bonds.
The Village Clerk of the Village is hereby directed to file a certified copy of this
Ordinance with the Bond Registrar and the Paying Agent.
Section 17. Defeasance. Any Bond or Bonds which (a) are paid and cancelled,
(b) which have matured and for which sufficient sums been deposited with the Paying Agent to
pay all principal and interest due thereon, or (c) for which sufficient Defeasance Obligations
have been deposited with the Paying Agent or similar institution having trust powers to pay,
taking into account investment earnings on such obligations, all principal of and interest on such
Bond or Bonds when due at maturity or as called for redemption, pursuant to an irrevocable
escrow or trust agreement, shall cease to have any lien on or right to receive or be paid from the
Pledged Taxes hereunder and shall no longer have the benefits of any covenant for the registered
owners of outstanding Bonds as set forth herein as such relates to lien and security of the
outstanding Bonds. All covenants relative to the Tax-exempt status of the Bonds; and payment,
registration, transfer, and exchange; are expressly continued for all Bonds whether outstanding
Bonds or not.
For purposes of this Section, "Defeasance Obligations" means (a) direct and general full
faith and credit obligations of the United States Treasury ("Directs "), (b) certificates of
participation or trust receipts comprised wholly of Directs or (c) other obligations
unconditionally guaranteed as to timely payment by the United States Treasury.
Section 18. Continuing Disclosure Undertaking. The President of the Village is hereby
authorized, empowered and directed to execute and deliver a Continuing Disclosure Undertaking
under Section (b)(5) of Rule 15c2-12 adopted by the Securities and Exchange Commission
pursuant to the Securities Exchange Act of 1934, as amended (the "Continuing Disclosure
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Undertaking "). When the Continuing Disclosure Undertaking is executed and delivered on
behalf of the Village as herein provided, the Continuing Disclosure Undertaking will be binding
on the Village and the officers, employees and agents of the Village, and the officers, employees
and agents of the Village are hereby authorized, empowered and directed to do all such acts and
things and to execute all such documents as may be necessary to carry out and comply with the
provisions of the Continuing Disclosure Undertaking as executed. Notwithstanding any other
provision of this Ordinance, the sole remedies for failure to comply with the Continuing
Disclosure Undertaking shall be the ability of the beneficial owner of any Bond to seek
mandamus or specific performance by court order, to cause the Village to comply with its
obligations under the Continuing Disclosure Undertaking.
Section 19. Municipal Bond Insurance. In the event the payment of principal and
interest on the Bonds is insured pursuant to a municipal bond insurance policy (the "Municipal
Bond Insurance Policy") issued by a bond insurer (the "Bond Insurer"), and as long as such
Municipal Bond Insurance Policy shall be in full force and effect, the Village and the Bond
Registrar agree to comply with such usual and reasonable provisions regarding presentment and
payment of the Bonds, subrogation of the rights of the Bondholders to the Bond Insurer when
holding Bonds, amendment hereof, or other terms, as approved by the President of the Village on
advice of counsel, his or her approval to constitute full and complete acceptance by the Village
of such terms and provisions under authority of this Section.
Section 20. Severability. If any section, paragraph, clause or prOVISIon of this
Ordinance shall be held invalid, the invalidity of such section, paragraph, clause or provision
shall not affect any of the other provisions of this Ordinance.
Section 21. Repealer. All ordinances, resolutions or orders, or parts thereof, in conflict
with the provisions of this Ordinance are to the extent of such conflict hereby repealed.
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Section 22. Effective Date. This Ordinance shall be in full force and effect immediately
upon its passage and approval.
AVES:
NAVS:
ABSENT:
ADOPTED:
February 17,2009
ApPROVED: February 17,2009
President, Village of Mount Prospect
Cook County, Illinois
Recorded In Village Records: February 17,2009.
ATTEST:
Village Clerk, Village of Mount Prospect,
Cook County, Illinois
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Exhibit II
RESOLUTION expressing official intent regarding certain capital
expenditures to be reimbursed from proceeds of an obligation to be
issued by the Village of Mount Prospect, Cook County, Illinois.
*
*
*
WHEREAS, the President and Board of Trustees (the "Corporate Authorities ") of the
Village of Mount Prospect, Cook County, Illinois (the "Village "), has developed a list of capital
projects described in Exhibit A hereto (the "Projects "); and
WHEREAS, all or a portion of the expenditures relating to the Projects (the
"Expenditures ") (i) have been paid within the 60 days prior to the passage of this Resolution or
(ii) will be paid on or after the passage of this Resolution; and
WHEREAS, the Village reasonably expects to reimburse itself for the Expenditures with
the proceeds of an obligation:
Now, THEREFORE, Be It and It Is Hereby Resolved by the President and Board of
Trustees of the Village of Mount Prospect, Cook County, Illinois, in the exercise of its home rule
powers, as follows:
Section 1. Incorporation of Preambles. The Corporate Authorities hereby find that all
of the recitals contained in the preambles to this Resolution are full, true and correct and does
incorporate them into this Resolution by this reference.
Section 2. Intent to Reimburse. The Village reasonably expects to reimburse the
Expenditures with proceeds of an obligation.
Section 3. Maximum Amount. The maximum principal amount of the obligation
expected to be issued for the Projects is $2,500,000.00.
Section 4. Ratification. All actions of the officers, agents and employees of the
Village that are in conformity with the purposes and intent of this Resolution, whether taken
before or after the adoption hereof, are hereby ratified, confirmed and approved.
Section 5. Severability. If any section, paragraph, clause or provIsIon of this
Resolution shall be held invalid, the invalidity of such section, paragraph, clause or provision
shall not affect any of the other provisions of this Resolution.
Section 6. Repealer. All ordinances, resolutions or orders, or parts thereof, in conflict
with the provisions of this Resolution are to the extent of such conflict hereby repealed.
Section 7. Effective Date. This Resolution shall be in full force and effect immediately
upon its passage and approval.
AYES:
NAYS:
ABSENT:
ADOPTED:
February 17, 2009
ApPROVED: February 17, 2009
President, Village of Mount Prospect,
Cook County, Illinois
Recorded In Village Records: February 17,2009.
ATTEST:
Village Clerk, Village of Mount Prospect,
Cook County, Illinois
-2-
EXHIBIT A
DESCRIPTION OF CAPITAL PROJECTS
Construct and equip a replacement fire station, expand the public works facility and
relocate the emergency operations center.
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INTEROFFICE MEMORANDUM
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Mount Prospect
Village of Mount Prospect
Fire Department
TO:
MICHAEL E. JANONIS, VILLAGE MANAGER
FROM:
FIRE CHIEF
DATE:
FEBRUARY 10, 2009
SUBJECT: CITIZEN CORPS COUNCIL ORDINANCE MODIFICATION
In October 2008 the Village Board adopted a new ordinance establishing a local Citiz n
Cops Council. Having a Citizen Corps Council is required to receive grant funding. The
original ordinance specified a seven person Council made up from specific disciplines. In
order to stay compliant we must add another discipline to the Council, thus requiring an
ordinance modification.
Article XVIII, Chapter 5, "Citizen Corps Commission" specified a seven person Board
appointed by the Mayor. Each person on the Board/Council shall represent specific
disciplines. The specific disciplines are as follows:
1. One (1) council member shall be an elected official
2. One (1) council member shall serve from the fire department
3. One (1) council member shall serve from the police department
4. One (1) council member shall from emergency management
5. One (1) council member shall be from the volunteer, community service or faith
based organization
6. One (1) council member shall from the medical discipline
7. One (1) council member shall from the business and industry community
The change that is now necessary is to add an eighth person to the Council representing
the "Private Non-Profit" discipline.
Attached is an updated ordinance with the proposed change.
Michael J. Figolah
MF
Attachment
ORDINANCE NO.
AN ORDINANCE AMENDING
CHAPTER 5 (BOARDS AND COMMISSIONS) OF THE
VILLAGE CODE OF MOUNT PROSPECT
BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF
MOUNT PROSPECT, COOK COUNTY, ILLINOIS ACTING IN THE EXERCISE OF THEIR
HOME RULE POWERS:
SECTION 1: Chapter 5, Article XVIII, entitled "CITIZEN CORPS COMMISSION," of the Village
Code of Mount Prospect, shall be amended by deleting Sections 18.1 02.A and 18.1 02.B of Article
XVIII in their entirety and inserting new Sections 18.102.A and 18.102.B which shall be and read
as follows:
Section 18.102. MEMBERSHIP
A. The Citizen Corps Commission shall consist of eight (8) board members, All
members shall reside or work in the Village.
B. The membership of this Commission, including the Chairman, shall be appointed
by the Village President with the advice and consent of the Board of Trustees
and shall be constituted as follows:
1. One (1) board member shall serve from the first responder community:
emergency management, police, fire, EMS;
2. One (1) board member shall be an elected official,
3. One (1) board member shall be from the volunteer, community service or
faith and community based organizations;
4. One (1) board member shall serve from an educational institution;
5. One (1) board member shall serve from a medical facility: hospital, long-term
care, health department physician;
6. One (1) board member shall serve from the business and industry
community.
7. One (1) board member shall serve from an established neighborhood
association.
8. One (1) board member shall serve from an established not for profit
organization.
SECTION 2: This Ordinance shall be in full force and effect from and after
its passage, approval and publication in pamphlet form in the manner provided
by law.
AYES:
NAYS:
ABSENT:
PASSED and APPROVED this _ day of February, 2009.
Irvana K. Wilks
Mayor
ATTEST:
M. Lisa Angell
Village Clerk
H :\CLKO\WI N\ORDI NANCE2\amendchapter5citizencorpscommissionFEB2009. DOC
iManage 1406972
E
Mount Prospect
Village of Mount Prospect
Mount Prospect, Illinois
~
INTEROFFICE MEMORANDUM
TO: MICHAEL E. JANONIS, VILLAGE MANAGER
FROM: MICHAEL DALLAS, ADMINISTRATIVE ANALYST
CLARE O'SHEA, SENIOR PLANNER
DATE: FEBRUARY 11, 2009
SUBJECT: NEIGHBORHOOD RESOURCE CENTER INTERGOVERNMENTALAG
PURPOSE
To obtain the Village Board's approval to enter into an Intergovernmental Agreement with the Mount
Prospect Public Library regarding the operation of the Neighborhood Resource Center (NRC).
BACKGROUND
The Village of Mount Prospect and the Mount Prospect Public Library have established the
Neighborhood Resource Center initiative to provide centralized information and coordinated delivery
of referral services and community programming for all residents of the Village of Mount Prospect.
In order to cooperate and share services and equipment at the NRC, the Village and Library must
enter into an Intergovernmental Agreement.
DISCUSSION
The Intergovernmental Agreement (see Attachment 1) sets forth the obligations each party must
abide to as it relates to the following:
1. Lease and Rent
2. Funding and Cost Sharing
3. Budgeting and Reporting
4. Technical Support
5. Ownership
6. Center Operation and Area Control
7. Insurance, Indemnification, and Liability
The following four exhibits are made a part of the agreement to explain in greater detail the
obligations above, as well as provide the parties some flexibility to redefine those roles and
responsibilities as the initiative matures:
· Exhibit A - Community Partner Use Policv: This document addresses the Community
Partner Advisory Committee, scheduling, insurance and liability, and requirements for
using the NRC facilities. While the Library is considered more than a Community
Partner, for simplicity purposes the regulations in the policy apply to all users of the
NRC.
· Exhibit B - Floor Plan
· Exhibit C - Cost Sharina Aareement: For conSistency and transparency, the costs have
been broken down based on the item and usage. The Village and Library have agreed
to invoice each other quarterly for incurred expenses.
· Exhibit D - Technical SUDDort ResDonsibilities: This document identifies and describes
technology management responsibilities, including support and maintenance,
H:\VILM\MDallas\Neighborhood Resource Center\Legal and Negotiations\Board Meeting 2-3-09\NRC IGA Recommendation _ 2-3-09.doc
Neighborhood Resource Center Intergovemmental Agreement
February 11. 2009
Page 2
monitoring, upgrades and reporting, budgeting, and physical security.
RECOMMENDATION
Staff recommends the Village Board adopt the Resolution authorizing execution of the
Intergovernmental Agreement between the Village and the Mount Prospect Public Library.
~D}J~
Clare O'Shea
Senior Planner
Michael Dallas
Administrative Analyst
c: Marilyn Genther, Mount Prospect Public Library Executive Director
Nancy Morgan, Human Services Director
Everett Hill, Village Attorney
~
EXHIBIT A
VILLAGE OF MOUNT PROSPECT
NEIGHBORHOOD RESOURCE CENTER
Community Partner Use Policy
I. THE NEIGHBORHOOD RESOURCE CENTER.
The Village of Mount Prospect (hereinafter the "Village") has established a Neighborhood Resource
Center (the "Center"). The purpose of the Center is to provide centralized information, referral and
programming for all residents of the Village of Mount Prospect primarily through the services of the
Village and the Mount Prospect Public Library (hereinafter the "Library"), supplemented by
complimentary services provided by not-for-profit, community partners. The Center is located at
1709-1711 West Algonquin Road, Mount Prospect, Illinois (hereinafter the "Premises"), within the
Crystal Court Shopping Center, and such Premises are leased by the Village.
II. THE POLICY STATEMENT.
It is the policy of the Village to provide office and community room use to certain government and not-
for-profit organizations (hereinafter the "Community Partners") for uses that clearly and unequivocally
compliment the services provided by the Village and the Library at the Center, as well as support the
Center's purpose. Use of the Center for any activities that are inconsistent with such services or
purpose will be denied or terminated.
III. COMMUNITY PARTNER APPLICATION PROCESS.
The steps for becoming a Community Partner are as follows:
A. The applicant shall complete a Neighborhood Resource Center Community Partner Application
(hereinafter "Application") and a Neighborhood Resource Center Community Partner Agreement
(hereinafter "Agreement") and submit them to the Village Manager or designee (hereinafter
"Village Manager") for approval.
B. Monthly Fee. The applicant shall submit the first month's fee as described in Paragraph V (B)
below along with the Application and Agreement. If the application is not approved, the fee will
be returned to the applicant.
C. Community Partner Qualifications. The following criteria will be evaluated as a part of the
application review process:
1. The applicant must be a government or not-for-profit organization;
2. The applicant's corporate purpose, as well as their proposed use of the Facilities, must be
clearly and unequivocally consistent with the services provided by the Village and Library at
the Center, as well as the Center's purposes;
3. The applicant's proposed use must not substantially or unnecessarily disrupt the normal,
everyday operations of the Village and Library or its use by their patrons;
4. The applicant's primary purpose may not be political campaigning or lobbying;
5. If the applicant was a Community Partner in the past, its prior use of the Premises must not
have resulted in damage to any of the Village's or Library's property;
6. If the applicant's primary facility is located within Mount Prospect, it must have a valid Village
of Mount Prospect Business License or Business Inspection Certificate;
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NEIGHBORHOOD RESOURCE CENTER - COMMUNITY PARTNER USE POLICY
January 9, 2009
Page 2
7. An applicant for the use of the Facilities must agree to the terms set forth in this
Neighborhood Resource Center Community Partner Use Policy (hereinafter the "Policy") and
the Neighborhood Resource Center Community Partner Agreement.
D. Committee Recommendation. A Community Partnership Advisory Committee will review the
application and make a recommendation to the Village Manager regarding the consistency of the
applicant's proposed services with the purposes of the Center and the services offered by other
Community Partners.
E. All applications are subject to approval by the Village Manager.
IV. COMMUNITY PARTNERSHIP TERM, RENEWAL, AND TERMINATION.
A. Term. The term of the Agreement (community partnership) shall be one (1) year and shall
commence on the date of application approval.
B. Renewal. To continue the Agreement (community partnership), a renewal application must be
completed and approved. A review of the renewal application shall be conducted by the
Community Partnership Advisory Committee, subject to the approval of the Village Manager.
C. Termination. Failure to comply with the Policy and/or the terms of the Agreement is grounds for
immediate termination of the Agreement, denial of the use of the Premises, and may result in the
denial of any future application submitted by the Community Partner.
V. COMMUNITY PARTNERSHIP ADVISORY COMMITTEE
A. Purpose. The Community Partnership Advisory Committee will meet on a regular basis to
discuss the Center's scheduling and operations, examine customer feedback, provide process
improvements, identify and report program outputs and performance measures, review
Community Partner applications and make recommendations, and perform such other duties and
functions as may be requested of it by the Village Manager.
B. Composition.
1. The Community Partnership Advisory Committee will be comprised of representatives from
each Community Partner, the Village's Human Services Director or designee(s), the Village's
Neighborhood Resource Center Social Worker, the Village's Neighborhood Resource Center
Community Service Officer, and the Library's Executive Director or designee.
2. The Village's Human Services Director shall chair the committee.
VI. FACILITIES.
A. Available Facilities. Subject to scheduling by the Village's representative, the Center's available
facilities include one (1) office, a community room, a reception area, washroom facilities, and a
kitchenette (collectively hereinafter the "Facilities").
B. Monthly Fee. On the first day of the month, the Community Partner shall pay a monthly fee of
$ for participation in the Center and use of the Facilities. This fee shall be subject to
review and change annually by the Village. The monthly fee shall be payable to the Village of
Mount Prospect and shall be remitted as follows:
Village of Mount Prospect Neighborhood Resource Center
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NEIGHBORHOOD RESOURCE CENTER - COMMUNITY PARTNER USE POLICY
January 9, 2009
Page 3
c/o Finance Department
50 South Emerson Street
Mount Prospect, Illinois, 60056
C. Facilities Use Restrictions. When using the Facilities, the Community Partner is subject to the
following restrictions:
1. The Community Partner shall be responsible for clean-up of the Facilities, or any portion
thereof, following its use and shall pay for any damage to property resulting from the
Community Partner or its invitees' use of the Premises.
2. The Community Partner shall not serve food or beverages without written permission from
the Village employee designated by the Village (hereinafter "Village Representative").
3. Village or Library property shall not be removed from the Premises without the written
permission of the Village Representative or Library employee designated by the Library
(hereinafter "Library Representative"), respectively.
4. The Community Partner shall not allow any member or invitee to write upon or attach
anything of any kind to Library or Village property, including walls, doors, windows, etc.,
excluding approved use of a blackboard, without written permission of the Village
Representative.
5. The Community Partner shall ensure that no alcoholic beverages or illegal controlled
substances or other drugs are brought into the Premises or into or upon related Premises.
Violation of this provision may result in automatic revocation of Community Partner's rights
under the Agreement, and forfeiture of all fees, without revoking or limiting any other rights of
the Village.
6. The Community Partner shall comply with applicable State law and Village ordinances
regulating tobacco products.
7. The Community Partner shall comply with all applicable federal, state, county and municipal
laws and ordinances, including Article 2 of the Illinois Human Rights Act (775 ILCS 5/2-101,
et sea.), and the Rules and Regulations of the Illinois Department of Human Rights, including
establishment and maintenance of a sexual harassment policy as required by Section 2-105
of that Article and Act.
8. The Community Partner shall not permit hazardous material including, but not limited to,
paints, solvents and explosives, in or around the Premises.
9. The Community Partner shall return the Premises in the same condition and appearance as
they were received.
10. The Village reserves the right to monitor all meetings held in the community room.
11. The Community Partner shall comply with any and all rules and regulations, and
amendments to this Policy, adopted by the Village Manager, upon reasonable notice to the
Community Partner.
D. Scheduling.
1. The available days and times for use of the Facilities by Community Partners shall be
determined by the Village.
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NEIGHBORHOOD RESOURCE CENTER - COMMUNITY PARTNER USE POLICY
January 9, 2009
Page 4
2. Use of the Facilities shall be scheduled by the Village Representative, who shall make
reasonable efforts to accommodate all Community Partner requests to the extent possible,
but with no guarantee of accommodation.
E. Village staff will only be responsible for providing reception assistance and room scheduling.
Unless agreed to otherwise, Community Partners are responsible for any meeting set-up.
VII. SPONSORSHIP AND MATERIALS
A. The Community Partner shall not imply sponsorship of the Village or the Library in any way,
except that the Community Partner may refer to itself as a participating service provider with the
Village and Library at the Center, or as otherwise approved in writing by the Village and Library
Representative, as applicable.
B. The Village Manager reserves the right to review all handout literature, fliers, press releases, etc.,
which the Community Partner or any invitee of the Community Partner intends to distribute
before, during or after a meeting. All submitted materials must be completely translated into
English. The Village also reserves the right to require that such materials include the following
statement:
The Village of Mount Prospect and the Mount Prospect Public Library
neither sponsor nor endorse this material, event nor the presenting
individual or organization.
VIII. FAITH-BASED AND POLITICAL ORGANIZATIONS
A. Faith-based organizations. Community Partners may not engage in inherently religious activities,
such as worship, religious instruction, religious counseling, or proselytization, as part of any
program or service offered on the Center's Premises. If an organization conducts such activities,
the activities must be offered off of the Center's Premises, separate from the programs or
services offered at the Center, and participation must be voluntary for the beneficiaries of those
programs or services. The organization may retain its name and logo, but must remove symbols,
icons, or scriptures from any materials presented or distributed at the Center.
B. Political organizations. Organizations primarily established to conduct political campaigning or
lobbying may not be a Community Partner. Moreover, Community Partners may not engage in
inherently political activities on the Center's Premises, such as campaigning, distributing political
signs, buttons, or other materials related to campaigning.
IX. FEES FOR SERVICE
With the approval of the Village Manger, a Community Partner may charge nominal fees or fees
based on a sliding scale for any services provided at the Center. Prior to imposing fees, the Partner
shall submit a fee schedule to the Village Manager for approval.
X. PERFORMANCE MEASURES
In order to report the Center's progress annually, as well as to apply for grants, the Village will require
all Community Partners to provide the Village with general program output and performance
measures on a semi-annual basis. Examples of such data may include the number and types of
workshops conducted and cases opened/closed. The Village and the Community Partnership
Advisory Committee will work together to identify the type of data that is necessary and to insure that
iManage:227763_1
'rrJ
NEIGHBORHOOD RESOURCE CENTER - COMMUNITY PARTNER USE POLICY
January 9, 2009
Page 5
the release of such data does not violate a client's confidentiality or expectation of privacy, or state or
federal laws.
XI. INSURANCE AND LIABILITY PROVISIONS
A. Risk of Loss. To the extent permitted by law, the Community Partner shall agree that neither the
Village, the Library, nor any of their respective appointed and elected officials, agents, officers,
directors, employees, or volunteers shall be liable for any accident, injury or death,. loss or
damage resulting to any person or property, sustained by the Community Partner, the Community
Partner's employees and/or invitees, or anyone claiming by or through the Community Partner,
without limitation, arising out of, connected with, or in any way associated with Community
Partner's participation in the Center and use of, or activities in the Facilities, Premises and/or
parking lot.
B. Insurance. The Community Partner shall maintain insurance during the entire term of the
Agreement insuring, as additional named insureds, the Village, the Library, and their respective
appointed and elected officials, agents, officers, directors, employees, and volunteers in the
following minimum amounts:
1. Broad form Comprehensive General Liability - $1,000,000 limit for bodily injury, personal
injury or death to each person; $1,000,000 limit for property damage per occurrence; and
$1,000,000 for all other types of liability. The aggregate shall be a minimum of $2,000,000.
2. Workers Compensation: limits required by Illinois' State statute, by an insurance company
licensed to write workers compensation coverage in the State of Illinois.
3. Employer Liability: limits of not less than $1,000,000.
Said insurance shall cover the Community Partner's use of the Facilities and Premises, including
the parking lot. The insurer shall be subject to the reasonable approval of the Village. The
insurance requirements may be satisfied through seff-insurance of the insurance coverage and
limit requirements set forth above.
C. Certificate of Insurance. The Community Partner shall, prior to the commencement of the
Agreement term, furnish to the Village, certificates evidencing the insurance coverage required in
paragraph IX, which certificates shall state that such insurance coverage may not be changed or
canceled without at least thirty (30) days prior written notice to the Village.
D. Hold Harmless. The Community Partner, to the greatest extent permitted under Illinois law, shall
indemnify, hold harmless and defend the Village, the Library, and their respective appointed and
elected officials, agents, officers, directors, employees, and volunteers from and against any and
all claims, suits, damages, causes of action, judgments, losses, costs, expenses and attorneys'
fees arising out of personal injury, including death, property loss, damage or theft sustained by
any person while on the Premises, including the parking lot, during or as a result of the
Community Partner's participation in the Center or use of, or activities in the Facilities and/or
Premises, including the parking lot.
XII. CANCELLATION
The Agreement may be canceled by the Village at any time for cause without reimbursement of any
fees. Termination without cause shall be addressed in the Agreement.
iManage:227763_1
~ NEIGHBORHOOD RESOURCE CENTER - COMMUNITY PARTNER USE POLICY
January 9, 2009
Page 6
XIII. DISCLAIMER
The Village and the Library do not necessarily endorse the philosophies or practices of the Center's
Community Partners. The Village and the Library are not responsible for the content of the
Community Partner's programs.
***
The undersigned acknowledges that he/she has received a copy of this Neighborhood Resource Center
Community Partner Use Policy, has read it, and understands it. Additionally, the undersigned
acknowledges that he/she is authorized by the organization's governing board to act on its behalf.
signed
date
(print name)
on behalf of
name of organization (Community Partner)
iManage:227763_1
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EXHIBIT D
."
NEIGHBORHOOD RESOURCE CENTER
Technical Support Responsibilities Agreement
I. PURPOSE
To support the operational needs of the Village of Mount Prospect (hereinafter "Village") and the Mount
Prospect Public Library (hereinafter "Library"), as well as its community partners, the Neighborhood
Resource Center (hereinafter "Center") will provide computers, phones, access to the Internet, and other
technical support capabilities. Some of the equipment, such as network devices, will be shared by both
Parties and will require considerable cooperation to ensure seamless network connectivity and successful
operations. To address the level of support and type of cooperation needed, this document sets forth the
management responsibilities of both Parties. Management responsibilities include technical support
("help desk"), equipment maintenance (preventative. repair, and replacement), software upgrades,
system monitoring and reporting, and budgeting.
II. PRIMARY RESPONSIBILITY
Since much of technical support equipment is shared at the Center and is connected to each of the
Parties' networks, it is possible that a support issue may require considerable coordination among the
Parties. To avoid any conflicts and ensure this coordination is managed orderly and efficiently, the
following bullets set forth who primarily manages the Center's equipment:
A. Network Connection, Equipment and Wiring
1. Switch(es)
a. IfVolP phone system -Village
b. If POTS - Library
2. VPN and Firewall - Each Party supports and maintains their own
3. Wireless Access Point - Library
4. Uninterrupted Power Supplies - Library
5. Server Rack - Library
6. Data/Phone Wiring (to the wall jack) - Village
B. Internet connection and associated AT&T equipment (e.g. router) - Library
C. Personal Computers and Laptops - Each Party supports and maintains their own
D. Phones (VoIP or POTS) - Village
E. Cable Television - Village
F. Security System
1. Door Access (proxy card) System
a. Support and Maintenance - Library
b. Database Management - Both Parties will jointly manage the system's database
2. Facility Alarm - Village
3. Video Surveillance - Village
G. Other Devices
1. Copy Machine - Library
2. Plasma/LCD TV and PC in Community Room - Library
Each Party must obtain approval from the other Party if any new equipment is going to be installed on the
Center's data network or if any of the existing devices or systems above will be changed in any way. If
any new equipment is installed at the Center, the list above should be modified accordingly.
III. TECHNICAL SUPPORT AND MAINTENANCE
A. Technical Support
Both Parties currently provide technical or "help desk" support via a phone number and a web-
based form. These same services will be extended to the Center's staff members. In general,
staff should contact their own respective organization's "help desk" to resolve a technical issue. If
H:\VILM\MDallas\Neighborhood Resource Center\Legal and Negotiations\Exhibit 0 . Technical Support Responsibilities\Exhibit 0 -
Technical Support Responsibilities - Final-2-11-09.doc
NRC Technical Support Responsibilities Agreement
January 16, 2009
Page 2
the issue affects one of the shared systems or equipment identified in Section II, the Party
primarily responsible for managing the equipment must be notified in order to address the issue.
Both Parties agree to work in good faith to respond and resolve technical support issues in a
timely manner.
B. Maintenance
The Party primarily responsible for managing a system or piece of equipment will maintain that
equipment, including administering any required service contracts. All maintenance issues
associated with a shared system or piece of equipment will require coordination among the
Parties. If a technical issue arises that requires a shared piece of equipment identified in Section
II to be replaced, repaired, or eliminated, approval must be provided by both Parties.
IV. NETWORK MONITORING, UPGRADES AND REPORTING
The network will be divided into separate virtual local area networks (VLANS). The Village and Library
will be able to monitor their own separate network remotely, upgrade software, and make any necessary
configuration changes. Any issues should be reported to the other Party to avoid any system-wide
issues.
V. BUDGETING
Assuming the Center's continued success, there will be a time when equipment will need to be replaced.
The Party primarily responsible for managing the equipment will pay for the new equipment and any
required service contract, and seek reimbursement from the other Party. The apportioning of costs
should be identified in Exhibit C.
VI. PHYSICAL SECURITY
Each Party will be responsible for the physical security of their own equipment. The server rack will be
locked at all times and a key will be provided to both Parties for access to the shared equipment.
***
The Parties acknowledge and accept the management responsibilities associated with the Neighborhood
Resource Center's technical support capabilities.
VILLAGE OF MOUNT PROSPECT
MOUNT PROSPECT PUBLIC LIBRARY
IT Director
Computer Services Director
Date
Date
Village Manager
Executive Director
Date
Date
Neighborhood Resource Center
Cost Sharing Agreement
EXHIBIT C
. ..
'" ACTUAL '" ACTUAL .
: . .
Build Out - Construction $48.975.00 67% 33%
Lumber. drywoll. cabinetry. fixtures. electrical. plumbing. HVAC. fixtures.
Construction $30.000.00 67% 33% 1I00ring. paint
Signs $10.000.00 50% 50% Quote includes interior and exterior signs
Sign Tenant Panel- Freestanding 50% 50% Landlord indicated NRC could have panel on freestanding sign
Sprinkler System $8,975.00 50% 50% Based on Alliance Fire Protection Quote
Furniture $9.900.00 Each party pays for their own furniture
Community Room.. $2.000.00 67% 33%
NRC Offices $6.400.00 100%
Furniture - Reception Area (chairs. bookshelves. etc.)"" $1.500.00 50% 50%
Library Collections/Processing $72.500.00 0% tOO%
Library Equipment/Furniture $27,000.00 100%
Professional Services $8,000.00 100% 0% Start up and Support
Tech Equipment and Systems $63,965.00 50% 50%
Library information on lease; individual printers are the responsibility of
Copy Machine/Scanner/Printer"" $5,000.00 50% 50% organization
Data Network.. $10.500.00 50% 50% Switch. router, firewall. VPN. UPS, server rack. wireless access point, wiring
Lobo,." $5.008.00 50% 50% 16 hours at $188 (phones, + estimate ($2000) from IT for fiber
LCD Television $1.100.00 50% 50% 37' lIatscreen LCD: Tim's quote from COW (includes mounting bracket)
Library Tech Equipment $16.400.00 100%
PCs - Village $6.000.00 100% Each party pays for their own PCs
PC - Community Room"" $2.000.00 50% 50%
Phone system (excluding data network devices)"" $10.537.00 50% 50% Phones, panel. switch. router. wiring
Quote from Active Alarm: Includes security system, card access entry
Security System" $6.470.00 50% 50% system and CCTV system
Server Rack.. $950.00 50% 50% Floor rack on casters with a 1I00r size of 48" deep and ::IJ' wide
Utilities - Inifial Charges $1.921.00 67% 33%
Cable Television" $O.OC Franchise Agreement
Electric. $O.OC Franchise Agreement
Gas. Will there be an initial charge?
Fiber - AT&T" $ 1.92 I.OC 67% 33%
Fiber - Conduit from property line to building" AT&T will bring fiber to property - we are responsible for conduit to bldg
Water & Sewer. 67% 33%
TOTAL $232,261.00
ANNUAL OPERATING EXPENSES
Cleaning (Janitorial) Service $7.080.00 67% 33% PWs Contract
Insurance Village and Library will name NRC on insurance coverage
Lease $40,056.00 $40,056.00 67% $26.704.00 33% $13.352.00
Admin $696.00 $696.00 67% $464.00 33% $232.00
Base Rent $24,000.00 $24,000.00 67% $16.000.00 33% $8.000.00
Common Area Maintenance (CAM) $4.560.00 $4.560.00 67% $3.040.00 33% $1.520.00
Insurance $576.00 $576.00 67% $384.00 33% $192.00
Reserve $312.00 $312.00 67% $208.00 33% $104.00
Taxes $9.912.00 $9.912.00 67% $6,608.00 33% $3.304.00
Library Collections/Processing $6.000.00 0% 100%
Library Marketing/Promotions $2.5OO.OC 0% 100%
Markeling and Outreach (brochure, web~te. public education) $IO,ooo.OC 100% Outreach and Advertising (prinflng. website. efc.)
Other Employee Costs $3.800.00 100%
Library Training, Travel & Meetings $800.00 0% 100%
Village Training, Travel and Meetings $3,000.00 100% Per 2009 Village Budget
Personnel (Salaries + Benefits) $296.706.00
Library (Coordinator and support staff) $75.000.00 0 100%
Village (MSW, Intake Coordinator/Receptionist (2). CSO) $221.706.00 100% 0%
Postage (Village only) $400.00 100% 0% VaMP CSO coordinate mail
Professional Fees $2,500.00
Audit - Village $400.00 100% 0% Number from Finance
Other Professional Services $2.100.00 100% 0% Legal and consultant fees
Repairs and Maintenance $3.OOO.OC 67% 33% As needed - Village 2009 budget
Supplies $9.180.00
Bathroom Supplies"" $500.00 67% 33%
Copy Pope""" $1,580.00 50% 50% White $31.5O/ctn. Color $4O/ctn
Kitchen Supplies""" $500.00 67% 33%
Library office and library supplies $1 .000.00 100%
Village office supplies (pens. pencils. paperclips. staplers.
etc) including food and beverage $5,600.00 100% Each party responsible for their own office supplies
Tech Equipment and Systems $4,050.00
Data Network Maintenance"" $110.00 50% 50% Switch, router. firewall, VPN. UPS. server rack, wireless access point
Copy Machine Maintenance"" 50% 50% Contract Lease Negotiations
Library $2.400.00 100%
PC Repair and Replacement Each party pays for their own PC maintenance
PC - Community Room Repair and Replacement"" 50% 50%
Phone system (exciuding data network devices'"" $1.000.00 50% 50% Smart Net Annual Maintenance
Security System" $540.00 50% 50% Monthly Service Fee from Active Alarm quote
Utilities $14.995.OC 67% 33%
Cable Television" $O.OC Franchise Agreement
Electric" $O.OC Franchise Agreement
Fiber- AT&T" $9.702.OC 67% 33%
Gas" $2.700.00 67% 33% Estimate from Public Power webslte
Internet Access - ICN" $1.753.00 100%
Water & Sewe" $B4O.OC 67% 33%
TOTAL $400,267.00 $40,056.00 S26.704.00 S13.352.00
" Common Support Services
"'Common Items
...Common Supplies
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE VILLAGE OF MOUNT PROSPECT
TO ENTER INTO A NEIGHBORHOOD RESOURCE CENTER
INTERGOVERNMENTAL AGREEMENT WITH THE
MOUNT PROSPECT PUBLIC LIBRARY
WHEREAS, the Village of Mount Prospect is a home rule municipality and pursuant to the Illinois
Constitution, Article VII, Section has certain powers which it is exercising; and
WHEREAS, Section 10 of Article VII of the Constitution of the State of Illinois and the
Intergovernmental Cooperation Act at ILCS 220/1 et.seq. allow and encourage intergovernmental
cooperation; and
WHEREAS, the President and Board of Trustees of the Village of Mount Prospect has deemed
that the best interests of the Village may be served by entering into intergovernmental
agreements; and
WHEREAS, the Village of Mount Prospect and the Mount Prospect Public Library agree that it
would be in the best interests of the citizens to allow the Village of Mount Prospect to enter into
an Intergovernmental Agreement for the operation of a Neighborhood Resource Center (NRC)
located at 1709-1711 West Algonquin Road, Mount Prospect, Illinois.
NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS:
SECTION ONE: That the President and Board of Trustees of the Village of Mount Prospect are
hereby authorized to execute the Intergovernmental Agreement which is attached to this
Resolution as Exhibit "A."
SECTION TWO: That this Resolution shall be in full force and effective from and after its
passage and approval in the manner provided by law.
AYES:
NAYS:
ABSENT:
PASSED and APPROVED this day of February, 2009.
Irvana K. Wilks
Mayor
ATTEST:
M. Lisa Angell
Village Clerk
H :\CLKO\WI N\RES\I ntergovt Agrmtmou ntprospectpubliclibra rynrcfeb2009 .doc
f:
INTERGOVERNMENTAL AGREEMENT BETWEEN
THE VillAGE OF MOUNT PROSPECT AND MOUNT PROSPECT LIBRARY
FOR A NEIGHBORHOOD RESOURCE CENTER
This Intergovernmental Agreement ("Agreement") is made and entered into this
day of , 2009, by the Village of Mount Prospect (the "Village"), an Illinois Home
Rule Corporation, and the Mount Prospect Public Library (the "Library"), an Illinois Village
Public Library (collectively, the "Parties" and each a "Party").
WHEREAS, Article VII, Section 10 of the Illinois Constitution of 1970 and the
Intergovernmental Cooperative Act, 5 ILCS 220/1 et seq., authorize public agencies to contract
or otherwise associate among themselves to obtain or share services, and to exercise, combine
or transfer any power or function, in any manner not prohibited by law; and
WHEREAS, the Village and Library are "public agencies" as defined in the
Intergovernmental Cooperative Act, 51LCS 220/1 et seq.; and
WHEREAS, the Boards of Trustees of the Village and Library find it in the public interest
to establish a Neighborhood Resource Center in the south end of the Village of Mount Prospect
to provide centralized information, referral and programming for all residents of the Village of
Mount Prospect primarily through the services of the Village and Library, supplemented by
complimentary services provided by not-for-profit, community partners; and
WHEREAS, the Village has agreed to lease the premises at 1709-1711 West Algonquin
Road, Mount Prospect, Illinois, and certain common areas, including walkways and a parking
area (the "Premises"), located within the Crystal Court Shopping Center at 1703-1759 West
Algonquin Road Mount Prospect, Illinois (the "Shopping Center"), to house the Neighborhood
Resource Center; and
WHEREAS, the Library has agreed to reimburse the Village for certain of the lease-
related costs for said Premises to permit the Library to sublease a portion of the premises for a
Library substation on the Premises and to use certain of the Village Area, as defined hereunder;
and
WHEREAS, the Village and Library have also agreed to share the cost of certain other
services related to the Neighborhood Resource Center.
NOW, THEREFORE, in consideration of the premises set forth above, which are incorporated
into this Agreement, the promises and consideration set forth herein, and other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties
agree as follows:
A. Neighborhood Resource Center Description. The Neighborhood Resource Center (the
"Center"), established to provide centralized information, referral services, community
programming, and library services for all residents of the Village of Mount Prospect, shall
be operated by the Village on the Premises in the manner described in the
Neighborhood Resource Center Community Partner Use Policy (the "Use Policy'?, a
copy of which is attached hereto and incorporated herein as Exhibit A. The Center shall
consist of approximately 700 square feet subleased to the Library (the "Library
1
Substation"), as well as three (3) offices, a reception area for patrons and a receptionist,
a community room, and common area for washroom facilities, kitchenette, and storage
and a parking area (collectively the "Village Area"), the Library and the Village Areas
being as described in the f1oorplan, attached hereto and incorporated herein as Exhibit
B.
B. Lease of Premises.
1. Lease. The Village shall execute a lease of the Premises under the terms and
conditions set forth in the Lease, a copy of which Library acknowledges having
received and reviewed.
2. Rent. Upon execution of the Lease, the Village as Lessee will pay the Lessor
according to the terms of the Lease, and abide by those terms. The Library shall pay
the Village an amount equal to one-third (1/3) of the rent amount due under the
Lease, as set forth in Exhibit C which is hereinafter described, and such annual
increases as required under the Lease. The rent amount shall include the base rent,
real estate taxes, common area maintenance fees, and administrative costs, reserve
funds and insurance. The Village shall invoice the Library quarterly for payment of
such amount and the Library shall pay the Village within thirty (30) days of the
invoice date .
3. Library responsibilities and obligations as tenant.
a. Use of the Premises. The sole purpose for which the Library Substation may be
used, in the absence of prior written approval by the Village, is to house a branch
of the Village of Mount Prospect's Library, to be operated in accordance with
applicable policies and procedures of the Library.
b. The Library Not To Misuse. The Library will not permit any unlawful or immoral
practice to be committed or carried on in the Premises by itself or its invitees.
The Library shall not allow the Library Substation to be used for any purpose
other than that described in subsection 3(a) herein. The Library will not keep or
use or permit its invitees to keep or use on the Premises any hazardous
materials (as defined by existing federal, state and local environmental laws,
ordinances, rules and regulations), flammable fluids or explosives, without the
prior written permission of the Village. The Library will not load floors beyond the
floor load rating prescribed by applicable local building code and ordinances.
The Library shall not take any actions, which may prevent the Village from
complying with the terms of the Lease.
c. Condition of the Premises. The Library has examined and knows the condition of
the Library Substation and has received the same in good order and repair.
d. Repairs, Maintenance and Alterations. At the Library's sole cost and expense
the Library shall keep the Library Substation, and the appurtenances thereto, in a
clean, sightly and healthy condition, and in good repair, all according to the
statutes and ordinances in such cases made and provided, and the directions of
public officers thereunto duly authorized, all at its own expense, and shall yield
the same back to the Village upon the termination of the Lease, whether such
termination shall occur by expiration of the Term, or in any other manner
2
whatsoever, in the same condition of cleanliness, repair and sightliness as at the
date of the execution hereof, loss by fire and reasonable wear and tear excepted.
If the Lease is terminated for any reason, the Parties agree to remove their
furniture, equipment, and materials within the period of time required under the
Lease and to the extent required under the Lease.
e. Access to the Library Substation. The Library shall allow the Village or any
person authorized by the Village free access to the Library Substation for the
purpose of examining or exhibiting the same, or to make any repairs or
alterations thereof which the Village may reasonably see fit to make. Any such
entry or access shall only be accomplished with prior notice to the Library and in
such a manner and at such time so as not to disrupt or interfere with the conduct
of the Library's business.
f. Compliance with Applicable Laws, Permits and Licenses. During the Term, the
Library, at its expense, shall comply promptly with all laws, rules, and regulations
made by any government authority having jurisdiction over Library's use of the
Library Substation pertaining to the physical condition of any improvements in the
Library Substation and the Library's specific business operations in the Premises.
g. Compliance with Rules. The Library shall comply with all rules and regulations
adopted by the Lessor pursuant to the Lease, all reasonable rules and
regulations adopted by the Village after consultation with the Library so long as
those rules do not interfere with Library's use and enjoyment of the Premises,
and the following sections of the Use Policy: Section V, Community Partnership
Advisory Committee, Section VI Facilities - subsections C, 0 and E, and Section
X, Performance Measures. The Library shall also comply with such rules and
regulations, as mutually agreed to by the Parties that are necessary for the
proper and orderly care of the Premises. The Library shall also permit the Village
to take such action, as the Village deems reasonably necessary, to comply with
the terms of the Lease.
h. Responsibility. The Library shall have sole responsibility for the area designated
for the Library Substation. On the Premises, the Village shall make available for
use by the Library a parking area, and maintain and make available for use by
the Library a reception area, washroom facilities and a kitchenette. At the
Village's sole cost and expense, except as otherwise expressly provided in this
Agreement, the Village shall keep the reception area, washroom facilities and
kitchenette clean, sightly and healthy condition, and in good repair, all according
to the statutes and ordinances in such cases made and provided, and the
directions of publiC officers thereunto duly authorized. In the Village Area, the
Library shall have shared use of the washroom facilities, parking area, reception
area, facilities and kitchenette, and may utilize the community room in
accordance with the scheduling prOVisions set forth in Section VI (D) of the Use
Policy. Neither Party shall take any action or make any omission that would
cause the other Party to breach this Agreement or fail to comply with applicable
laws, regulations, rules or ordinances.
i. Modification. Upon completion of the buildout referred to in subsection C (1), the
Library will not make any material modifications to the Library Substation without
the prior written consent of the Village. The Village reserves the right in its
3
reasonable discretion to deny the Library's ability to make any such material
modifications.
C. Other Center Funding Obligations.
1. Initial Funding Obligations.
a. Build-out. Prior to the build-out, the Center's architectural design plans and
construction materials (walls, windows, doors, counters, cabinets, flooring,
lighting, paint, and other finish materials) shall be agreed upon by both Parties.
This agreement shall constitute a build-out construction baseline. The Village
shall pay for two-thirds (2/3) and the Library shall pay for one-third (1/3) of the
costs associated with the Center's build-out construction baseline. During the
build-out and thereafter, any additional costs for changes to the baseline shall be
borne by the requesting Party unless agreed to otherwise. In the event that the
Village receives a credit from the Landlord toward the buildout costs in the
amount of Fifteen Thousand Dollars ($15,000.00), the Library shall receive a
credit toward its share of the rent in the proportions set forth above and in the
manner provided by Landlord to the Village In the event that the Lease is not
renewed for the optional fourth and fifth years, the Village is required under the
Lease to reimburse the Landlord in the amount of Seven Thousand Five Hundred
Dollars ($7,500.00), in which case the Library shall in turn be required to
reimburse the Village in the proportion set forth above, which amount shall be
Two Thousand Five Hundred Dollars ($2,500.00). In the event that the actual
amount of such a credit received by the Village is different than that set forth
above, the Library will receive its proportionate share of the credit and be
required to reimburse the Village its proportionate share in the event that
reimbursement is required.
b. Common Support Services. The Parties agree to share the cost of the Center's
utilities and support services, including installation thereof, that are set forth in
Exhibit C ("Common Support Services"), which is incorporated herein by
reference, in the proportions set forth in Exhibit C. Examples of such Common
Support Services may include the cost of the water and sewer, gas and electric,
garbage, security system, cable television services, telephone services and
Internet services. Unless otherwise agreed, the Party responsible for payment for
a particular Common Support Service shall invoice the other quarterly for
reimbursement of its share, which shall be paid within thirty (30) days of the
invoice date.
c. Furniture, Common Items and Materials.
(1) The Parties shall be responsible for purchasing and installing their own
furniture and shelving in their respective areas.
(2) The Parties agree to share the cost of the purchase and installation of certain
of the Center's common equipment and other common items, which are set
forth in Exhibit C ("Common Items"), in the proportions set forth in Exhibit C.
Examples of such Common Items may include network equipment, telephone
devices and photo copier.
4
(3) The Library will be responsible for purchasing print and non-print materials
that it determines are necessary for the proper operation of the Library
Substation.
2. Annual Funding Obligations.
a. Common Support Services. The Parties agree to share the annual costs of the
Common Support Services, in the proportions set forth in Exhibit C. Unless
otherwise agreed, the Party responsible for payment for a particular Common
Support Service shall invoice the other quarterly for reimbursement of its share,
which shall be paid within thirty (30) days of the invoice date.
b. Furniture and Common Items.
(1) The Parties shall be responsible for maintenance, repair and replacement of
their own furniture, which includes shelving, as described in subsection C
(1)(c)(1).
(2) The maintenance of the Common Items shall be as set forth in the Technical
Support Responsibilities, which is incorporated herein as Exhibit D.
c. Common Supplies.
(1) Copy paper, lavatory (toilet paper, soap, hand towels, etc.) and janitorial
supplies ("Common Supplies") will be purchased by the Village. The Library
shall pay the Village an amount equal to one-third (1/3) of the cost of such
Common Supplies. The Village shall invoice the Library quarterly for
payment of such amount and the Library shall pay the Village within thirty
(30) days of the invoice date.
(2) Other than copy paper, the Parties shall purchase their own office supplies,
such as pens, pencils, highlighters, staplers, etc.
d. Center Building Maintenance. The Village shall be responsible for the
maintenance of the building systems on the Premises, such as heating and
cooling, electrical, and plumbing systems, to the extent required under the Lease.
For repair or replacement costs related to said building systems, the Village shall
pay two-thirds (2/3) of the cost and the Library shall pay one-third (1/3). For
minor repair or replacement costs related to items, such as a damaged carpet
tile, a broken light fixture, or a hole in a wall, the Parties will be solely responsible
for their respective areas.
3. Cost Sharing. Unless otherwise set forth in this Agreement, in Exhibit C or agreed to
otherwise, any Common Items, Common Support Services or Common Supplies that
are shared by the Parties shall be paid two-thirds (2/3) by the Village and one-third
(1/3) by the Library. The responsible Party shall invoice the other quarterly for
payment of such amount, subject to reimbursement by the other Party within thirty
(30) days of the invoice date. Exhibit C may be amended from time to time upon
agreement of the Parties to add or remove Common Items, Common Support
Services or Common Supplies and to modify the costs and the proportions of costs
allocated to each Party.
5
4. The Parties shall share the cost of additional services or items not set forth in this
Agreement or in Exhibit C, provided the Parties have mutually agreed to the
purchase and cost of any such services or items prior to purchasing or entering into
any agreement to purchase such services or items. Said costs shall be shared in the
amounts set forth in Section C(3).
5. Notwithstanding anything in this Agreement to the contrary, the Parties may enter
into separate agreements that set forth additional or different terms and conditions
regarding Common Support Services, Common Items, Common Supplies or any
other services or items used in connection with the Center.
D. Budgeting and Reporting
1. Budgeting. Notwithstanding anything in Section C to the contrary, the Village and
the Library will meet annually in order to (i) discuss the financial condition of the
Center; (ii) develop a budget for the next fiscal cycle; and (iii) approve the proposed
costs and the proportion of such costs allocated to each Party for Common Support
Services, Common Items and Common Supplies, as well as any other shared costs
associated with the Center for the next fiscal year. Input may be gathered from the
Community Partners to help develop the budget. The Center's proposed expenses
shared by the Parties in accordance with this Agreement and exhibits thereto, shall
be integrated into each of the Parties' organizational budgets. The Center's cost
impact on each of the Parties' organizational budgets will be presented to their own
political bodies for approval. Exhibit C shall be modified, to the extent mutually
agreed by both Parties, to reflect changes resulting from the actions set forth in this
subsection D(1).
2. Auditing and Reporting.
a. Auditing. In conjunction with the Parties' annual audit processes, each Party
shall examine its own costs associated with the Center and share any comments
or concerns submitted by their auditor(s).
b. Reporting. With the assistance of the Village, the Library, and the Center's
Community Partners, the Village will release an annual report to the community
describing the Center's accomplishments and summarizing its financial condition.
E. Technical Support. The Center will host a multitude of technical capabilities, including
computers, phones, and a security system, some of which will be managed by the
Village and some of which will be managed by the Library. Exhibit D sets forth the
Parties' technical support responsibilities.
F. Ownership. The Parties shall retain sole ownership in any furniture, equipment,
materials, or supplies purchased solely for their use, including desks, tables, chairs, and
shelving. Any ownership interest in furniture, equipment, materials, or supplies
purchased jointly by both parties for common usage at the Center shall be divided
according to the original cost apportionment of each item.
G. Center Operation. The Library acknowledges that the Village intends to permit not-for-
profit agencies, which provide services complimentary to those of the Village and the
Library (the "Community Partners"), to share space in the Center, meet with residents,
"
and provide information, programming, and a variety of support services. Except for the
Library's participation on the Community Partnership Advisory Committee under the Use
Policy, the Village shall be solely responsible for the operation and management of the
Community Partner program and the Center and its programming and activities, with the
exception of the Library Substation and its programming and activities. The Library shall
be solely responsible for the operation and management of the Library Substation,
including but not limited to the Library programming and activities taking place at the
Library Substation.
H. Area Control. The Village and the Library shall have control over their respective areas
with the authority to limit patron use, designate staffing by its employees and office
hours, and determine the amount and type of equipment and materials to be kept
thereon. The Village, however, shall not restrict the Library's reasonable use of the
washroom facilities, reception area or kitchenette, except temporarily for maintenance or
safety purposes.
I. Cooperation. The Parties agree to work in good faith to mutually resolve any problems
occurring or arising out of the performance of this Agreement. The Parties agree to do
all things reasonably necessary or appropriate to carry out the terms, provisions and
objectives of this Agreement, including, without limitation, establishing room and service
schedules, and the taking of such other actions as may be necessary to ensure
compliance and fulfillment with the terms and provisions of this Agreement.
J. Insurance. The Village and the Library agree to maintain, at their own cost and
expense, general liability insurance including contractual liability insurance insuring the
other as a "named insured". Said insurance shall be in the following forms and amounts:
1. General Comprehensive Liability: $1,000,000 combined single limit per occurrence
for bodily injury, personal injury, death and property damage. The general aggregate
shall be twice the required occurrence limit.
2. Public Liability: $1,000,000 combined single limit per occurrence. Minimum general
aggregate shall be no less than $1,000,000.
3. Automobile Liability: $1,000,000 combined single limit per accident for bodily injury
and property damage.
4. Workers' Compensation: Workers' Compensation limits as required by State statute.
5. Employer's Liability: not less than $1,000,000.
6. Personal Property: The Village shall maintain insurance covering improvements and
personal property that at any time is situated in the Village Area and the Library shall
maintain insurance covering improvements and personal property at any time
situated in the Library Substation. Said insurance shall cover loss or damage by fire,
lightning, wind storm, hail storm, aircraft vehicles, smoke, explosion, riot or civil
commotion as provided by the Standard Fire and Extended Coverage Policy and all
other risks of direct physical loss as insured against under Special Form "all risk"
coverage.
7. Excess Liability: $2,000,000 per occurrence and in the aggregate.
7
.,I
8. The insurance requirements herein may be satisfied through self-insurance of the
insurance coverage and limit requirements set forth above.
K. Indemnification and Hold Harmless Provision.
1. Indemnification by the Village. The Village shall defend, protect, indemnify, and hold
the Library and its appointed and elected officials, agents, officers, directors, and
employees, and any of them (the "Library Affiliates") harmless against and from any
and all injuries, costs, expenses, liabilities, losses, damages, injunctions, suits,
actions, fines, penalties, and demands of any kind or nature (including reasonable
attorneys' fees) arising in connection with any and all third party claims arising
directly or indirectly out of (a) injuries and/or damages occurring within the Village
Area; (b) injuries and/or damages occurring within the Library Substation but only to
the extent such injuries and/or damages are related to the Village's and/or the
Village's invitees' use or activities thereof; (c) any intentional acts or negligence of
the Village, its appointed and elected officials, agents, officers, directors, employees,
and any of them (the "Village Affiliates"); and/or (d) any breach or default in the
performance of any obligation on the Village's part to be performed under this
Agreement. This indemnity shall not include the intentional or negligent acts or
omissions of the Library Affiliates. This indemnify shall survive termination of this
Agreement as to claims arising out of events that occur prior to termination of the
Agreement.
2. Indemnification by the Library. The Library shall defend, protect, indemnify, and hold
the Village Affiliates harmless against and from any and all injuries, costs, expenses,
liabilities, losses, damages, injunctions, suits, actions, fines, penalties, and demands
of any kind or nature (including reasonable attorneys' fees) arising in connection with
any and all third party claims arising directly or indirectly out of (a) injuries and/or
damages occurring within the Library Substation; (b) injuries and/or damages
occurring within the Village Area but only to the extent such injuries or damages are
related to the Library's and/or the Library's invitees' use or activities thereof; (c) any
intentional acts or negligence of the Library Affiliates; or (d) any breach or default in
the performance of any obligation on the Library's part to be performed under this
Agreement. This indemnity shall not include the intentional or negligent acts or
omissions of the Village Affiliates. This indemnify shall survive termination of this
Agreement as to claims arising out of events that occur prior to termination of the
Agreement.
L. Non-liability. Notwithstanding anything to the contrary in Section K, to the extent
permitted by Illinois law, unless caused by the negligence or willful misconduct of a
Party, neither Party shall be liable to the other Party for: (i) any damage or injury
occasioned by the failure of either Party to keep any part of the Premises in repair; (ii)
any damage or injury done or occasioned by snow, wind, excessive heat or cold, broken
glass, sprinkling, heating, ventilating or air conditioning systems, devices or equipment,
flooding, or by or from any defect of plumbing, electric wiring or of insulation thereof, gas
pipes, water pipes or steam pipes, or from broken stairs, porches, railings or walks, or
from the backing up of any sewer pipe or down-spout, or from the bursting, leaking or
running of any tank, tub, washstand, water closet or waste pipe, drain, or any other pipe
or tank in, upon or about the Premises of which they are a part nor from the escape of
steam or hot water from any radiator; (iii) any damage or injury occasioned by water,
snow or ice being upon or coming through the roof, skylight, trap-door, stairs, walks or
8
any other place upon or near the Premises, or otherwise; or (iv) any such damage or
injury done or occasioned by the falling of any fixture, plaster or stucco; all claims for any
such damage or injury being hereby expressly waived by each Party, except as provided
herein. In the event of the negligence or willful misconduct of only one (1) party (the
"Responsible Party"), the other Party shall not be liable to the Responsible Party for the
damages aforesaid.
M. Notice. All notices required to be provided under this Agreement shall be in writing and
served either (1) personally during regular business hours; or (2) by registered or
certified mail, return receipt requested, property addressed with postage prepaid and
deposited in the United States mail. Notices served personally shall be effective upon
receipt and notices served by mail shall be effective upon receipt as verified by the
United States Postal Service. All notices shall be addressed as follows:
1. The Villaae:
Michael Janonis
Village Manager
Village of Mount Prospect
50 South Emerson Street
Mount Prospect, I L 60056
(847) 392-6000
With a copy to:
Everette M. Hill, Jr.
Village Attorney
20 N. Wacker Drive, Suite 1660
Chicago, IL 60606
(312) 984-6420
2. The Mount Prosoect Librarv
Marilyn Genther
Executive Director
Mount Prospect Public Library
10 South Emerson Street
Mount Prospect, IL 60056
(847) 253-5675
With a copy to:
Lawrence Summers
Vedder Price
222 N. La Salle
Chicago IL 60601-1003
(312) 609-7750
N. All covenants, promises, representations and agreements herein contained shall be
binding upon, apply and inure to the benefit of the Village and the Library and their
respective heirs, legal representatives, successors and assigns.
O. Waivers. The rights and remedies hereby created are cumulative and the use of one
remedy shall not be taken to exclude or waive the right to the use of another. No waiver
by the Village or the Library of any provision hereof shall be deemed a waiver of any
other provision hereof or of any subsequent breach by the Library or the Village of the
same or any other provision. A party's consent to or approval of any act shall not be
deemed to render unnecessary obtaining such party's consent to or approval of any
subsequent act. No waiver shall be effective unless it is in writing, executed on behalf of
the Village or the Library by the person to whom notices are to be addressed.
P. Brokers. The Village and the Library each represent to the other that they have not dealt,
. directly or indirectly, in connection with the leasing of the Premises, with any other
broker or person entitled to claim a commission or leasing fees. In no event may this
Agreement be construed to create any express or implied obligation on the part of the
Library to perform this Agreement on behalf of any broker (or any person claiming a
commission or leasing fee) as primary obligee or as a third party beneficiary. The
Village and the Library each shall indemnify and hold each other harmless from any loss,
liability, damage, or expense (including without limitation reasonable attorneys' fees)
9
arising from any claim for a commission or leasing fee arising out this transaction made
by any unidentified broker or other person with whom such party has dealt.
a. Entire Agreement. The provisions set forth herein constitute the entire agreement of the
Parties regarding the matters addressed in the Agreement, and supersede any prior
agreements or representations, as it is the intent of the Parties to provide for complete
integration within the terms of this Agreement. No provision may be changed or
modified unless such change or modification is in writing and duly approved by the
Parties.
R. Invalidity of Agreement. If any provision of this Agreement is found to be illegal, invalid or
void, the remaining provisions shall not be impaired and the Agreement shall, to the
extent reasonably practicable, be interpreted to give effect to the Parties' intent.
S. Choice of Law. This Agreement shall be governed by the laws of the State of Illinois.
The Circuit Court of Cook County, Illinois, shall have jurisdiction over any disputes
arising under this Agreement, and each of the Parties hereby consents to such Court's
exercise of jurisdiction.
T. Assignment. Neither Party shall have the right to assign any rights or obligations under
this Agreement without the prior written approval of the other Party.
U. Benefit of Contracting Parties. This Agreement is entered into solely for the benefit of the
contracting Parties, and nothing in this Agreement is intended, either expressly or
impliedly, to provide any right or benefit of any kind whatsoever to any person or entity,
who is not a party to this Agreement, or to acknowledge, establish or impose any legal
duty to any third party. Nothing in this Agreement shall be construed as an express
and/or implied waiver of any common law and/or statutory immunities and/or privileges
of the Library and/or the Village, and/or any of their respective officials, officers and/or
employees.
V. Counterparts. This Agreement may be executed in counterparts, any of which shall be
deemed an original.
W. Authority to Execute. Execution of this Agreement by the Village is authorized by an
ordinance passed by the President and Board of Trustees of the Village on
,200_. Execution of this Agreement by the Library is authorized by
a resolution passed by the Board of the Mount Prospect Library on I
200_. The Parties represent and warrant to each other that they have the authority to
enter into this Agreement and perform their obligations hereunder.
X. Titles. The headings and titles of this Agreement are for convenience only and shall not
influence the construction or interpretation of this Agreement.
Y. Third Parties. Nothing contained in this Agreement, nor any act of the Village or the
Library shall be deemed or construed by any of the Parties hereto or by third persons, to
create any relationship of third party beneficiary, principal, agent, limited or general
partnership, joint venture or any association or relationship involving the Village and the
Library, except as set forth in this Agreement.
10
Z. Exhibits. True and correct copies of the attached Exhibits are made a part of this
Agreement and are identified as follows:
· Exhibit A: Community Partner Use Policy
· Exhibit B: Approved Floorplan
· Exhibit C: Cost Sharing Agreement
· Exhibit D: Technical Support Responsibilities Agreement
AA. Effective Date; Extension of Lease; Authority to Extend Lease or Otherwise Agree. This
Agreement shall be effective upon the date last executed by the Parties. The Lease shall
not be extended beyond its third year without the written agreement of the Parties. The
Village Manager and the Library's Executive Director shall have authority to approve
extensions of the Lease, and to agree as provided in Sections B(3)(g), C(1)(a), C(1)(b),
C(2)(a), C(3), C(4), 0, H, and T. The Agreement shall terminate upon termination of the
Lease, except that the Parties shall remain liable for any claims that might arise under
the Lease, including adjustments for payment of CAM, taxes, insurance required under
the Lease in the same proportions set forth therein. In addition, Section K,
"Indemnification and Hold Harmless Provision", and Section L, "Non-Liability", shall
survive termination.
BB. Termination of Lease due to Breach of Party: In the event that an act or omission of
either Party (but not both Parties) results in the Landlord's termination of the Lease due
to a breach of the Lease, the breaching Party shall be responsible to pay any resulting
obligations under the Lease, including rent due for the remainder of the term of the
Lease, if any.
CC. Termination of Agreement due to Default of Party. In the event of any material breach of
this Agreement by either Party, the breaching Party (the "Breaching Party") shall upon
written notice from the other Party (the "Non-Breaching Party") proceed promptly to cure
or remedy such breach within sixty (60) days after receipt of such notice; provided,
however, that in the event such breach is incapable of being cured within sixty (60) day
period and the breaching Party commences to cure within said sixty (60) day period and
proceeds to cure with due diligence, such Party shall not be deemed to be in default
under this Agreement. In case such action is not taken or not diligently pursued or the
breach shall not be cured or remedied within the above time, the Non-Breaching Party
may terminate this Agreement or institute such proceedings as may be necessary or
desirable in its opinion to cure and remedy such breach including but not limited to
proceedings to compel specific performance by the Breaching Party of its obligations.
The rights of the Parties to this Agreement, whether provided by law or this Agreement,
shall be cumulative and the exercise by either Party of anyone or more of such
remedies shall not preclude the exercise by it of anyone or more of such remedies in
relation to the same breach by the other Party. No waiver made by either Party with
respect to any specific breach by the other Party under this Agreement shall be
construed as a waiver of rights with respect to any other breach by that Party under this
Agreement or with respect to the particular default except to the extent specifically
waived in writing. Notwithstanding anything contained herein to the contrary, all
monetary damages resulting from a breach of this Agreement shall be limited to the non-
defaulting Party's actual out of pocket costs and expenses resulting from such breach
along with all costs and expenses, including reasonable attorneys' fees, incurred by the
Non-Breaching Party in enforcing this Agreement. In the event of any litigation between
the Parties hereto resulting from a breach of this Agreement, the prevailing Party in such
11
litigation, as determined by final judgment, shall be entitled to an award of its attorneys'
fees and costs incurred in such litigation.
***
IN WITNESS WHEREOF, the parties have entered into this Agreement as of the
day of , 2009.
VILLAGE OF MOUNT PROSPECT
MOUNT PROSPECT PUBLIC LIBRARY
By:
By:
Mayor
President
Attest:
Attest:
Village Clerk
12
Mount Prospect
Village of Mount Prospect
Mount Prospect, IDinois
~
INTEROFFICE MEMORANDUM
TO:
FROM:
MICHAEL JANONIS, VILLAGE MANAGER
CLARE O'SHEA, SENIOR PLANNER
MICHAEL DALLAS, ADMINISTRATIVE ANALYST
FEBRUARY 11, 2009
NEIGHBORHOOD RESOURCE CENTER LEASE
DATE:
SUBJECT:
PURPOSE
To obtain the Village Board's approval to lease 1709-1711 West Algonquin Road, Mount Prospect, Illinois,
units located within the Crystal Court Shopping Center, to serve as the Village's Neighborhood Reso
Center (NRC) for up to 5 years (3 year minimum plus 2 optional years).
BACKGROUND
As a part of the Feasibility Study conducted by Millennia Consulting, Crystal Court Shopping Center was
identified as a favorable location to establish the Neighborhood Resource Center. Conveniently located to
residents of south Mount Prospect, the space will adequately provide room for a library substation, reception
area, three offices (one of which is a shared office), community room, restrooms, kitchen area, and storage.
In early 2008, the Village obtained a favorable proposal from Bobby Bruno, President of Bruno Reality
Corporation, to lease the two units. Over the last few months, Village staff and George Wagner (attorney)
negotiated the terms of the commercial lease.
DISCUSSION
A summary of the terms of the Lease Jsee Attachment 1) include:
1. Landlord: Parkway Bank and Trust (Trust No. 12122)
2. Lease term: Three (3) years plus two (2) optional years
3. Floor area: 2400 square feet
4. First year rent: $40,056 (includes base rent, common area maintenance payment, administrative
payment, reserve fund, real estate taxes, and insurance) - Mount Prospect Public Library will pay
one-third (1/3)
5. Base rent increase:
a. Year 1 and 2: Fixed
b. Year 3, 4, and 5: CPI (12 month avg) or 5% of fixed base rent, whichever is less
6. Build-out credit: $15,000 ($7,500 must be returned if Village does not exercise Year 4 or 5 option)
RECOMMENDATION
Staff recommends the Village Board adopt the Resolution authorizing execution of the Lease.
&W~
Clare O'Shea
Senior Planner
a alias
Administrative Analyst
c: Nancy Morgan, Human Services Director
Everett Hill, Village Attorney
H:\VILMlMDallas\Neighborhood Resource Center\Legal and Negotiations\Board Meeting 2-3-09\NRC Lease Recommendation - 2-3-09.doc
LEASE FOR
CRYSTAL COURT SHOPPING CENTER
MOUNT PROSPECT, llLINOIS
ARTICLE 1. BASIC LEASE PROVISIONS AND ENUMERATION OF EXHIBITS
Section 1.1 Basic Lease Provisions
DATE:
LANDLORD: Parkway Bank and Trust, not personally, but as
Trustee under a Trust agreement dated
November 2, 1998 and known as Trust No. 12122.
ADDRESS OF LANDLORD: Crystal Court Shopping Center
4701 N. Cumberland Ave.
Suite 27
Norridge, IL 60706
TENANT(S): Village of Mount Prospect
ADDRESS OF TENANT(S): 50 South Emerson, Mount Prospect, IL 60056
TENANT'S TRADE NAME: Neighborhood Resource Center
GUARANTOR(S): Village of Mount Prospect
LEASED PREMISES: 1709-1711 West Algonquin Rd., Mount Prospect, IL 60056
FLOOR AREA: 2400 square feet, being the approximate rentable area of the
Leased Premises
PERMITTED USES: Offices and library sub-station
INITIAL LEASE TERM: Three (3) years
EXTENSION OPTION: Option to renew annually for two (2) additional years
COMMENCEMENT DATE: March 1,2009
FIXED MINIMUM BASE RENT $24,000 annually ($IO.OO/square foot of floor area)
(sullject to annual increase starting third year)
INITIAL COMMON AREA PAYMENT: $4,560 annually ($1.90 per square foot of floor area)
INITIAL ADMINISTRATIVE PAYMENT: $696 annually ($0.29 per square foot of floor area)
INITIAL RESERVE FUND: $312 annually ($0.13 per square foot of floor area)
INITIAL REAL ESTATE TAX PAYMENT: $9,912 annually ($4.13 per square foot of floor space)
2
INITIAL INSURANCE PAYMENT:
$576 annually ($0.24 per square foot of floor area)
SECURITY DEPOSIT:
NONE
FIRST YEAR FIXED MINIMUM RENT PLUS CAM, ADMIN, RESERVE, RIE TAXES, INSURANCE:
$40,056 ($3,338 /month)
Section 1.2 Significance of Basic Lease Provisions
Each reference in this lease to any of the basic lease provisions contained in Section 1.1 of this
Article shall be deemed and construed to incorporate all of the terms provided under each basic lease
provision.
Section 1.3 Enumeration of Exhibits
The exhibits enumerated in this Section and attached to this Lease are incorporated in this Lease by
this reference: Exhibit A: Site Plan of Crystal Court Shopping Center; Exhibit B: Description of Work; and
Exhibit C: Sign Criteria.
Section 1.4 Intentionally Omitted
ARTICLE II: LEASED PREMISES AND TERM
Section 2.1
Landlord is the owner of the tract of land located in Mt. Prospect, lllinois commonly known as
Crystal Court Shopping Center ("Landlord's Tract") which is depicted on Exhibit A. Landlord's Tract and
any improvements and appurtenances constructed thereon are sometimes hereinafter referred to as the
"Shopping Center". The description of the premises on Exhibit A does not constitute a representation,
covenant or warranty by Landlord and Landlord reserves the right from time to time during the lease term to
change the number and location of buildings, building dimensions, the number of floors in any of the
buildings, store dimensions, the size, location and types of Common Areas and Facilities, and the identity
and type of other stores and tenancies, and to construct kiosks, enclosed malls or courts, provided only that
reasonable use and access to the Leased Premises shall not be materially impaired.
Section 2.2 Leased Premises
Landlord hereby leases and demises to Tenant, and Tenant hereby leases from Landlord, subject to
and with the benefit of the provisions of this Lease, the Leased Premises.
Section 2.3 Intentionally Left Blank
Section 2.4 Condition of Leased Premises
Tenant acknowledges that Tenant has examined the Leased premises prior to signing this Lease and
is satisfied with condition thereof, except to the extent of the alterations, improvements, additions, repairs,
decorations and cleaning, if any, described in Exhibit B attached hereto and made part hereof. Landlord
certifies that premise meet all local, county, state, and federal requirements. By taking possession hereafter,
Tenant accepts the Leased premises as being free from defects and in good, clean and sanitary order,
condition and repair and agrees to keep the Leased premises in such condition. No agreements or
representations of the Landlord to alter, improve, repair, decorate or clean the Leased Premises or the
remainder of the Leased Premises, and no promise respecting the condition of the Leased Premises or the
shopping center has been made by or on behalf of Landlord.
3
Section 2.5 Term of Lease
The Lease term shall be for the period specified in Section 1.1 supra (the "Initial Lease Term"),
unless otherwise terminated or extended as provided herein. The phrase "Lease Term" shall include the
Initial Lease Term and any Renewal Terms or additional extensions as described below.
Section 2.6 Extension/Renewal Option
The Lease Term shall automatically renew for two (2) additional one (1) year terms (the "Renewal
Term" or "Renewal Terms'') on the same terms and conditions as set forth herein unless Tenant notifies
Landlord, in writing, of Ten ant's intention not to renew this Lease, at least ninety (90) days prior to the
expiration of the Initial Term or any applicable Renewal Term. Provided tenant is not in default of this
Lease, Landlord agrees to renegotiate and/or amend this Lease for an extension beyond the Renewal Terms.
Not withstanding, Tenant must give Landlord 180 days notice of its desire for such an extension. Rent to be
negotiated at that time.
ARTICLE ill CONSTRUCTION BY LANDLORD
Section 3.1
Tenant accepts Leased Premises in "as is" condition. Landlord represents that all HV AC, plumbing
and electrical systems are in good working order. Landlord certifies that the Premises meet all local, county,
state, and federal requirements.
ARTICLE IV METHOD OF RENT PAYMENT AND DETERMINATION OF RENT
Section 4.1 Fixed Minimum Rent
Tenant agrees to pay to Landlord, or to such other persons as Landlord may direct, without demand,
at the address of Landlord or such place as Landlord may by notice in writing to Tenant from time to time
direct, the following sums in United States Dollars at the following rates and times:
(a) Fixed Minimum Rent in the amount specified in Section 1.1, payable in advance in equal, successive
monthly installments commencing on the first day of the Lease Term for the first month of the Lease Term
and thereafter on the first day of each calendar month of the Lease Term. If the Lease Term commences on
a day other than the first day of the month, the monthly rent payment for the first month shall be prorated on
the basis of one-thirtieth (l/30th), of said monthly payment for each day of said month that is included in the
Lease Term; and
(b) Fixed Minimum Rent shall be increased, effective on the second annual anniversary of the
Commencement Date, Le., the beginning of the third Lease Year, and subsequent such anniversaries, by an
amount equal to the lesser of the average change during the prior 12 months in the Consumer Price Index for
All Urban Consumers (CPI-U) for U.S. City average as published by the Bureau of Labor Statistics, U.S.
Department of Labor, in the U.S. Department of Labor's Consumer Price Index for U.S. City Averages, or
five percent (5%) of the most recent Fixed Minimum Rent. In the event that the CPI-U is a negative
number, the Fixed Minimum Rent shall continue without change.
(c) Until notified to the contrary by Landlord, Tenant shall pay all amounts payable under this Lease to
Crystal Court Shopping Center.
(d) Credit for Tenant's Buildout Costs. Upon execution of the Lease, Landlord shall credit Tenant's account
in the amount of Fifteen Thousand Dollars ($15,000.00) to offset a portion of the Tenant's costs to buiIdout
the Leased Premises, i.e., the ADA bathroom improvements, HV AC replacement and fire suppression
sprinkler system (the "Improvements"). Said credit shall be deducted from rent due. Tenant agrees that,
upon the termination of the Lease, Landlord shall retain title and possession of such Improvements. If for
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any reason, other than Landlord's breach of the Lease, Tenant does not renew this Lease for the 1st and 2nd
Renewal Terms (years 4 and 5), then Tenant will reimburse Landlord for half of the $15,000 buildout credit
in the total amount of Seven Thousand and Five Hundred Dollars ($7,500.00).
(e) Credit for Tenant's HV AC replacement. Tenant will install a new HV AC system, including ductwork
and controls, to heat, ventilate and cool the Leased Premises as one (1) standalone office facility. In the
event that the Tenant installs two (2) separate rooftop heating/cooling units ("HV AC Units"), instead of one
(1) as Tenant proposes, Landlord agrees to pay to the Tenant the difference between the cost of one (1)
HV AC Unit and two (2) HV AC Units, including all additional labor costs, upon the Tenant's presentation to
Landlord of a proposal for the costs to purchase and install such Units along with a paid invoice for the
installation of two (2) HV AC Units. Payment to Tenant shall be credited to Tenant's account and deducted
from rent due. Landlord shall not be entitled to reimbursement for said credit in the event that the Lease is
not renewed for the 1 st and 2nd Renewal Terms.
Section 4.2 Commencement Date: Definition of Lease Year
The Commencement Date is the date set forth in Section 1.1. The term "Lease Year" means a period
of twelve (12) consecutive calendar months, except that the first Lease Year shall commence on the first day
of the next month immediately following the Commencement Date, unless the Commencement Date is the
first of the calendar month, in which case the first Lease Year shall commence on the Commencement Date,
and shall end on the date prior to the following anniversary of the Commencement Date. Each succeeding
Lease Year shall commence upon the following anniversary of the Commencement Date.
Section 4.3 Delinquency Charge for Late Rent Payment
To each and every payment of Rent which is not received by Landlord within five (5) days after the
same is due, there shall be added a delinquency charge equal to ten percent (10%) of account balance,
payable immediately without the necessity of notice or demand by Landlord as Additional Rent hereunder.
Any delinquency charge imposed by Landlord is in addition to the Landlord's right to treat Tenant in default
in accordance with the provisions of Article XI, and shall be cumulative of all of Landlord's remedies. Any
delinquency charge due hereunder shall constitute a default in the payment of Rent by Tenant in accordance
with Section 11.1.
Section 4.4 DefInition of Rent
The term "Rent" means all amount due Landlord from Tenant under or pursuant to this Lease
including without limitation, Fixed Minimum Rent, amounts due on account of Real Estate Taxes, Common
Area Maintenance, insurance premiums and amounts arising from any obligation of Tenant to reimburse or
indemnify or pay liquidated damages to Landlord under any provision of this Lease.
ARTICLE V COMMON AREAS AND FACILITIES
Section 5.1 Common Areas and Facilities
Landlord shall make available from time to time such areas and facilities of common benefit to the
tenants and occupants of the Landlord's Tract as Landlord shall deem appropriate. Landlord shall, subject to
the other provisions of this Lease, operate, manage, equip, heat, ventilate, cool, light, insure, secure, repair
and maintain the common areas and facilities for their intended purposes in such manner as Landlord shall,
in its sole discretion, determine, and may from time to time change the size, location, use and nature of any
common area and facility, sell or lease any portion thereof, or assign the exclusive use thereof to one or
more tenants, and may make installations therein and move and remove such installations, including the
installation of kiosks, enclosed malls or courts, all except to the extent that such changes interfere with the
tenant's use of the Leased Premises.
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Section 5.2 Use of Common Area
Tenant and its permitted concessionaires, officers, employees, agents, customers and invitees, shall
have the non-exclusive right, in common with Landlord and all others to whom Landlord has or may
hereafter grant rights, to use the common areas as designated from time to time by Landlord, subject to such
reasonable regulations as Landlord may, from time to time, impose including the designation of specific
areas in which cars owned by Tenant, its permitted concessionaires, officers, employees and agents, must be
parked.
Tenant agrees to abide by such regulations and to use its best efforts to cause its permitted
concessionaires, officers, employees, agents, customers and invitees to conform thereto. Landlord may, at
any time, close temporarily any common area to make repairs or changes to prevent the equation of public
rights in such area or to discourage non customer parking, and may do such other acts in and to the common
areas as, in its judgment, may be desirable to improve the convenience thereof. Tenant shall not, at any
time, interfere with the rights of Landlord and other tenants, and their permitted concessionaires, officers,
employees, agents, customers and invitees, to use any part of the parking areas and other common areas.
Landlord reserves the right to grant to other tenants and third persons such exclusive and non-exclusive
rights in the common areas as, from time to time, the Landlord deems appropriate. In no event shall
Landlord restrict Tenant's use of the Leased Premises by its actions under this Section 5.2.
Tenant and its officers, employees, and agents shall have the non-exclusive right to install or have
installed upon the Leased Premises and the common areas, including the parking lot and rear alley, fiber
optic or similar cable, for communications purposes. Said cable may be installed in or above ground in the
common areas. All costs associated with said installation shall be the sole responsibility of Ten ant.
Section 5.3 Common Area Maintenance Payment
Each Lease Year during the Lease Term, and during any period that Tenant shalltransact business in
the Leased Premises prior to the Commencement Date, Tenant shall pay to Landlord on account of Tenant's
obligation under Section 5.5, the Common Area Maintenance Payment, which shall be payable in equal
monthly installments on the first day of every calendar month during the Lease Term and a pro-rata sum for
the partial month, if any, preceding the first Lease Year, payable on the Commencement Date. The Initial
Common Area Maintenance Payment is estimated at $1.90/square feet for the first Lease Year. Following
each calendar year, the Common Area Maintenance Payment for each calendar year or partial calendar year,
shall be determined as follows: Landlord's actual costs (incurred), as defined in Section 5.5 hereof, for the
preceding calendar year, shall be multiplied by a factor of 1.00, and product thereof shall be the Common
Area Maintenance Payment for the forthcoming calendar year, which shall be payable retroactively to the
first day of such calendar year. In addition, as soon as practicable after January I in each calendar year
(other than the first calendar year) during the Lease Term, and in the year next following the year in which
this Lease terminates, Landlord shall deliver to Tenant a statement setting forth any additional costs due for
the Common Area Maintenance Payment for the immediately preceding calendar year. Any amount paid by
Tenant which exceeds the true amount due shall be credited on the next succeeding payment due pursuant to
this Section, or, upon the expiration or termination of the Lease, reimbursed to Tenant within ten (10) days
thereof. If Tenant has paid less than the amount due, Tenant shall pay the difference within thirty (30) days
of receipt of notice from Landlord. This covenant shall survive the expiration or earlier termination of the
Lease. If the Lease Term shall begin or end other than on the first or last day of a calendar year, such
charges shall be billed and adjusted on the basis of such faction of a calendar year
Section 5.4 Intentionally Omitted
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Section 5.5 Costs of Common Areas and Facilities
Tenant's payment of the Common Area Maintenance Payment, as additional rent, shall be based
upon "Tenant's Pro-Rata Share" (as such term's defined in Section 12.1 of this Lease) of certain actual costs
and expenses incurred by Landlord during the preceding calendar year ("Common Area Maintenance" or
"CAM") on account of Landlord's equipping, policing (if and to the extent provided by Landlord),
protecting, , heating, cooling, lighting, ventilating, repairing, and maintaining the common areas and
facilities in the Shopping Center, including roofs and fire safety devices adjacent to the Landlord's Tract,
during that preceding calendar year. Such costs and expenses shall include, but not be limited to maintaining
any enclosed common areas as shall be required in Landlord's judgment to preserve the utility thereof in the
same condition and status as such areas were at the time of completion of the original construction and
installation thereof, security, and fire protection on Landlord's Tract and the public ways and other structural
and non-structural items, cleaning, repairing and maintaining interior and exterior walls, soffits, fascia,
canopies and other structural and non-structural items in the Shopping Center, removal of rubbish and other
refuse; pedestrian traffic direction and control; line painting; exterior illumination of buildings and common
areas and illumination and maintenance of signs, whether or not the lights or signs are located on Landlord's
Tract; dirt, debris, snow and ice clearance; planting, maintaining, replanting and replacing flowers and other
landscaping; water and sewage charges; fees for required licenses and permits; supplies and hand tools;
operation of loudspeakers and any other equipment supplying music to the common areas; all charges for
utility services for the common areas, including maintenance of lighting fixtures (including the cost of light
bulbs and electric current); reasonable depreciation of, or rents paid for the leasing of, equipment used in the
operation of the common areas. Costs of equipment properly chargeable to Landlord's capital account and
depreciation of the original costs of constructing the common areas and facilities shall be excluded. Also
excluded are a) ground rents, principal payments or any interest expense on any loans secured by mortgages
placed on the Shopping Center or underlying land (or a leasehold interest therein); b) leasing and brokerage
expenses and commissions and other costs or concessions related to Leased Premises in the Shopping
Center; c) the cost of any work or services performed in any instance for any tenant (including Tenant) at the
cost of that tenant; d) franchise or income taxes imposed on Landlord; e) capital improvements; f) salaries of
Landlord's or its manager's executive personnel; g) all other expenses for which Landlord is entitled to
receive reimbursement; h) the cost of legal, accounting and other professional services incurred by landlord
for reasons not in connection with the day-to-day operation of the Shopping Center; i) the cost of offices of
Landlord that are not part of the offices of the Shopping Center; j) costs of relocating tenants; k) costs
associated with the cure or correction of latent defects; I) costs associated with the correction or abatement
of environmental hazards on the land, in the building or in the Leased Premises; m) wages for
concessionaires employed by Landlord; and n) fees for management of the Shopping Center in excess of
market rates for building management.
Section 5.6 Reserve Fund and Administrative Charge.
Tenant shall also pay each month along with its Common Area Maintenance Payment installments,
an amount necessary to maintain an appropriate reserve fund and an Administrative Charge equal to one-
twelfth (1112) offifteen percent (15%) ofthe CAM as the Administrative Charge and a reserve fund equal to
one-twelfth (112) of seven percent (7%) of the CAM as the Reserve Fund. The Administrative Charge and
reserve fund fee shall be adjusted as CAM changes pursuant to Section 5.3. Any amount due from Tenant in
excess of that paid monthly shall be payable within thirty (30) days following the rendition of Landlord's
statement therefore. Any amount paid by Tenant which exceeds the true amount due shall be credited on the
next succeeding payment due pursuant to this Section, or, upon the expiration or termination of the Lease,
reimbursed to Tenant within ten (10) days thereof. This obligation shall survive the expiration or earlier
termination of the Lease Term. Administrative charges shall be used for the administration of the Shopping
Center. The Reserve Fund shall be used for improvements to the Shopping Center that are not performed
annually, such as asphalt seal coating and repair, parking lot striping, and painting. Neither the
Administrative Charge, nor the Reserve Fund shall apply to any costs or fees subject to payment as CAM.
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CAM, Administrative Charges and the Reserve Fund shall not apply to replacement or reconstruction of
roofs, or to driveway/parking area replacement or reconstruction.
ARTICLE VI UTILITY SERVICE
Section 6.1 Utilities
Tenant agrees that, throughout the Lease Term, it will pay for and provide its own heat, air
conditioning, gas, electricity and all other utilities, other than water and sewage,
Landlord shall provide the water and sewage services to the Leased Premises through a joint meter
for all tenants on the Landlord's Tract. Tenant shall be solely responsible for and promptly pay as additional
rent all charges for water and sewage services used or consumed in the Leased Premises.
Tenant agrees to purchase and pay for the same in accordance with a separate Subscriber's Service
Agreement to be negotiated and entered into between Tenant and Landlord. The rates to be charged by
Landlord shall not exceed the rates that would be charged to the Tenant were the same services furnished
directly to the Leased Premises by governmental units or utility companies. In no event shall Landlord be
liable for an interruption or failure in the supply of any such utilities to the Leased Premises.
Section 6.2 Agency or Independent Contractor
Any utility services, which Landlord is required or elects to furnish, pursuant to this Article, may be
furnished by any agent employed by Landlord or by an Independent Contractor.
ARTICLE VIT. LANDLORD'S ADDITIONAL COVENANTS.
Section 7.1 Repairs by Landlord
Landlord covenants to keep the common areas of the Shopping Center, including all walkways and
parking areas, the foundations of the Leased Premises and the structural soundness of the concrete floors,
roof and exterior walls of the Leased Premises (as same as defined in Article vm, subsection 8.1f), as well
as the soffits. fascia. canopies and other structural and non-structural items in the Shopping Center. in good
order, repair and condition, unless any necessary work is required because of damage caused by any act,
omission or negligence of Ten ant, any permitted concessionaire of Ten ant or the respective employees,
agents, invitees, licensees or contractors of Ten ant. Landlord shall not be required to commence any such
repair until a reasonable time after written notice from Tenant that the same is necessary. The provisions of
this Section7.1 shall not apply in the case of damage or destruction by fire or other casualty or a taking under
power of eminent domain, in which events the obligations of Landlord shall be controlled by Article X.
Except as provided in this Section 7.1 and Section 7.2, Landlord shall not be obligated to make repairs,
replacements or improvements of any kind upon the Leased Premises, or any contents, equipment, facilities
or fixtures contained therein, which shall be the responsibility of Tenant as provided in Article VI and
Subsections 8.1 F and G, except to the extent that damage is the result of Landlord's failure to maintain in
good order. repair and condition as provided herein
Section 7.2 Ouiet Enjoyment
Landlord covenants that Tenant, on paying the Rent and performing Tenant's obligations in this
Lease, shall peacefully and quietly have, hold and enjoy the Leased Premises throughout the Lease Term or
until it is terminated as in this Lease provided.
Section 7.3 Landlord's Insurance
Landlord shall insure the Premises and the Building on an "all risks" of physical loss or damage
basis, in an amount equivalent amount to the full replacement cost of the Building and Premises, and shall
maintain comprehensive general liability insurance as is customarily maintained by landlords of similar
buildings in the Mt. Prospect, lllinois area.
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Section 7.4 Landlord's Indemnification.
Landlord agrees to hold hannless and indemnify Tenant, its beneficiaries and agents, from any and all
injwy, loss, claims or damage to any person or property while on the Leased Premises or any other part of
the Shopping Center, occasioned by an act or omission of Landlord, or anyone claiming by or through
Landlord, to the extent not occasioned by an act or omission of Ten ants or its agent.
ARTICLE vm TENANT'S ADDITIONAL COVENANTS
Section 8.1 Covenants
Tenant covenants at its expense at all times during the Lease Term and such further time as Tenant
occupies the Leased Premises or any part thereof:
A. To perform promptly all of the obligations of Tenant set forth in this Lease, and to pay when due the Rent
without notice and without any set-offs unless such set-offs are specifically provided herein.
B. (IF APPLICABLE) To use the Leased Premises only for the Permitted Uses; to operate its business in the
Leased Premises under Tenant's Trade Name or such other Trade Name as Tenant shall reasonably assume;
to conduct its business at all times in a high grade and reputable manner and to help establish and maintain a
high reputation for the Shopping Center, and refrain from conducting any "going out of business" or
bankruptcy or similar distress sales.
C. Intentionally left blank.
D. Intentionally left blank.
E. To store in the Leased Premises only such merchandise as may be related to its Permitted Uses; to store
all trash and refuse in adequate containers within the Leased Premises which Tenant shall maintain in a neat
and clean condition and so as not to be visible to members of the public and so as not to create any health or
fire hazard, and to attend to the daily disposal thereof in the manner designated by Landlord; to keep all
drains inside the Leased Premises clean; to receive and deliver goods and merchandise only in the manner
and at such times and in such areas as may be designated by Landlord, and to conform to all rules and
regulations which Landlord may make in the management and use of the Leased Premises, requiring such
conformance by Tenant's employees.
F. (i) To take good care of the Leased Premises and the pipes, plumbing, glass, store-fronts, electric wiring,
air conditioning and heating equipment, boilers, motors, engines, tanks, machinery, fixtures, appliances and
appurtenances belonging thereto and installed for use in connection with the Leased Premises and to refrain
from overloading the floors; to make as and when needed by contractors or mechanics approved by
Landlord, all repairs in or about the Leased Premises and in and to all such equipment, fixtures, appliances
and appurtenances necessary to keep the same in good order and condition. The interior of the Leased
Premises shall be painted or otherwise decorated (including, but not limited to, floor and wall coverings) by
Tenant as and when reasonably necessary as determined by Landlord, but at least every five (5) Lease Years.
All repairs made by Tenant shall be equal in quality and class to the original work. When used in this Article
and Article vm, the term "repairs" shall include all replacements, renewals, alterations, additions and
betterments. As used in this Article and Article vm, the expression "exterior walls" shall not be deemed to
include store front or store fronts, plate glass, window cases, or window frames, doors or door frames.
Landlord shall be under no obligation to make any repairs, alterations, renewals, replacements or
improvements to and upon the Leased Premises or the mechanical equipment exclusively serving the Leased
Premises at any time except as in this Lease expressly otherwise provided.
9
(ii). To keep in effect, at its sole cost and expense, a maintenance agreement with a contractor for periodic
(at least semiannual) servicing and repair of the heating, ventilating and air conditioning system ("HV AC")
serving the Leased Premises, which shall include, without limitation, the lubrication of all parts, the
inspection of all cooling towers, the inspection and correction of all fluid levels, the replacement of all belts,
bearings and filters, and other services deemed prudent by Landlord for preventative maintenance, subject to
any manufacturers' warranty for installation or maintenance. Tenant shall provide Landlord with semiannual
reports not later than October 15 and April 15 of each Lease Year, summarizing the condition of the HV AC,
the maintenance performed on the HV AC during the period since the last report and the recommendations
for the maintenance to be performed for the succeeding six month period. Tenant's failure to deliver such
semiannual reports or to have the recommended maintenance or repairs performed within seven (7) days
following written notice of such failure from Landlord shall constitute a default by Tenant thereby entitling
Landlord to the remedies pursuant to Sections 11.1 and 11.3 hereof. Landlord shall supply all mechanical
warranties to tenant.
G (i). To promptly comply with all present and future laws, ordinances, orders, rules, regulations and
requirements (collectively hereinafter referred to as "Orders") of all federal, state, municipal and local
governments, departments, commissions, boards and officers, and all Orders of Landlord's and Tenant's
insurance carriers, whether foreseen or unforeseen, ordinary as well as extraordinary, which may be
applicable to the Lease Premises and to all or any parts thereof and/or any and all facilities used in
connection therewith and the sidewalks, streets, areaways, passageways, curbs and vaults, if any, adjoining
the Leased Premises, or the use or manners of use of the Leased Premises, or the owners, tenants or
occupants thereof, whether or not any such Order shall reasonably interfere with the use and enjoyment of
the Leased Premises. Tenant shall not be required to make structural repairs or alterations unless it has by
its use of the Leased Premises or method of operations therein violated any such Orders or unless such
repairs or alterations are necessitated by Tenant's special needs.
(H) To make all repairs, alterations, additions or replacements to the Leased Premises required by any Order
because of any special needs of Ten ant, or by reason of Ten ant's use or occupancy of the Leased Premises or
otherwise, including, without limitation, the updating of all mechanical and sprinkler and fire alarm systems
so that they will be in compliance with applicable codes; to keep the Leased Premises equipped with all
safety appliances so required because of such use; to procure any licenses and permits required for any
such use, and to comply with all Orders now in effect or hereinafter enacted during the Lease Term.
(Hi) To promptly give notice to Landlord of any notice of Tenant's violation of any Order received by
Tenant. Without diminishing the obligation of Ten ant, if Tenant shall, at any time after five (5) days notice
by Landlord, fail or neglect to comply, or commence to comply as expeditiously as is reasonably feasible,
with any Order referred to in Section G(i) and, if a stay is necessary, shall have failed to obtain a stay or
continuance thereof, Landlord shall be at liberty to comply therewith, and all expenses consequent thereof
shall be borne and paid by Tenant, and upon Tenant's failure so to pay, Landlord may pay the same, and any
payments so made by Landlord, together with interest thereon at ten percent (10%) per annum from the date
of payment, shall immediately become due and payable by Tenant as additional rent.
H. To exterminate all insects or vermin, if the same infest the Leased Premises.
I. To pay promptly when due the entire cost of any work in the Leased Premises undertaken by Tenant so
that the Leased Premises shall at all times be free of liens for labor and materials, to procure and provide
copies to Landlord of all necessary permits before undertaking such work; to do all of such work in a good
and workmanlike manner, employing materials of good quality; to procure Builder's Risk insurance
whenever appropriate in amounts and with companies agreed upon by Tenant and Landlord, to perform such
work only with contractors, plans and specifications previously approved in writing by Landlord and to
comply with the requirements of Exhibits B and C ; and to save Landlord and Landlord's beneficiaries and
10
agents harmless and indemnified from all injury, loss, claims or damage to any person or property
occasioned by or growing out of such work, except to the extent occasioned by or growing out of any act or
omission of Landlord or Landlord's agents.
1. To save Landlord, Landlord's beneficiaries and agents and their respective successors and assigns
harmless and indemnified from all injury, loss, claims or damage to any person or property while on the
Leased Premises or any other part of the Shopping Center occasioned by an act or omission of Ten ant, or of
anyone claiming by or through Tenant, to the extent not occasioned by an act or omission of Landlord or its
agent, and to maintain, public liability insurance, insuring Landlord, Landlord's mortgagees, beneficiaries
and agents, as their interests may appear, against all claims, demands, or actions for injury to or death of any
one person in an amount of not less than $1,000,000 and for injury to or death of more than one person in
anyone accident in an amount of not less than $1,000,000 and for damage to property in an amount of not
less than $500,000 made by or on behalf of any person or corporation, arising from, related to or connected
with the conduct and operation of Ten ant's business in the Leased Premises, including anywhere upon
Landlord's Tract and, in addition, and in like amounts, covering tenant's contractuaIliability under the
aforesaid hold harmless clause; to maintain plate glass insurance covering all exterior plate glass in the
Leased Premises and fire insurance with such reasonable extended coverage endorsements as Landlord may,
from time to time require, adequate to cover the replacement cost of all of Tenant's stock in trade, fixtures,
furniture, furnishings, floor coverings and equipment in the Leased Premises. All of said insurance provide
that it will not be subject to cancellation, termination or change except after at least thirty (30) days prior
written notice to Landlord. Landlord agrees that the Tenant's self-insurance coverage is satisfactory form
and amount of insurance. The policies or duly executed certificates for the same (which certificates shall
evidence the insurer's waiver of subrogation) together with satisfactory evidence of the payment of
premiums thereon, shall be deposited with Landlord no later than the day Tenant begins Tenant's Work, and
upon renewals of such policies, not less than thirty (30) days prior to the expiration of the term of such
coverage.
In the event Tenant's occupancy or operation causes any increase of premium for the fire and extended
coverage and boiler and/or casualty rates on the Leased Premises or Shopping Center or any part thereof
above the rate for the least hazardous type of occupancy legally permitted in the Leased Premises, Tenant
shall pay the additional premium on the fire, boiler and/or casualty insurance policies by reason thereof.
Tenant shall also pay, in such event, any additional premium on the insurance policy that may be carried by
Landlord for its protection against loss through fire. In determining whether increased premiums are the
result of Tenant's use of the leased Premises, a schedule, issued by the organization making the insurance
rate on the Leased Premises showing various components of such rate, shall be conclusive evidence of the
several items and charges which make up the fire insurance rate on the Leased Premises. Bills for such
additional premiums shall be rendered by Landlord to Tenant at such times as Landlord may elect, and shall
be due from Tenant within ten (10) days following the billing thereof, and the amount thereof shall be
deemed to be, and be paid as, Additional Rent.
K. To waive all claims for damage to person or property sustained by Tenant resulting from any accident or
occurrence in or upon the Leased Premises or the building of which they shall be a part, including, but not
limited to, claims for damage resulting from: (1) any equipment or appurtenances becoming out of repair;
(2) Landlord's failure to keep said building or the Leased Premises in repair, whether or not Landlord has
assumed the obligation therefore; (3) injury done or occasioned by wind, water, or other natural element; (4)
any defect in or failure of plumbing, heating, or air conditioning equipment, electric wiring or installation
thereof, gas water and steam pipes, stairs, mezzanines, railings, or walks; (5) broken glass; (6) the backing
up of any sewer pipe or down spout; (7) the bursting, leaking or running of any tank, tub, washstand, water
closet, wash pipe, drain or any other pipe or tank in, upon or about such building or Leased Premises; (8) the
escape of steam or hot water (it being agreed that all of the foregoing are under the control of the Tenant);
(9) water, snow or ice being upon or coming through the roof, skylight, trapdoor, stairs, walks or any other
11
place upon or near such building or the Leased Premises or otherwise; (10) the falling of any fixtures, plaster
or stucco, all except to the extent resulting from the acts or omissions of Landlord or its agents.
L. To permit Landlord, Landlord's beneficiaries and agents to enter the Leased Premises at reasonable times
for the purpose of inspecting same, making repairs, additions or alterations thereto or to the building in
which the same are located and showing the Leased Premises to prospective purchasers, lenders and tenants.
M. To surrender, at the termiDation of this Lease, the Leased Premises in a broom-clean condition, free of
debris and in the same condition (subject to the removals hereinafter required) as the Leased Premises were
on the date Tenant opened the Leased Premises for business to the public, reasonable wear and tear
excepted with all holes in walls patched, taped and sanded, ready for paint and ready for paint, and to
surrender all keys for the Leased Premises to Landlord at the place then fixed for the payment of rent, and to
inform Landlord of all combinations on locks, safes and vaults, if any, in the Leased Premises; to remove,
during the last thirty (30) days of the Lease Term, all of Tenant's trade fixtures, and to the extent required by
Landlord by written notice, any other installations, alterations, improvements (excluding the Improvements
referred to in Section 4. 1 (d)), wall coverings or floor coverings, and any adhesives relating thereto installed
by Tenant before surrendering the Leased Premises as aforesaid and to repair any damage to the Leased
Premises or the Shopping Center caused thereby. Any alterations, changes, additions and improvements
(specifically including, by way of example, light fixtures and heating and air conditioning equipment) shall
immediately upon the termination of this Lease, at Landlord's option, become Landlord's property, be
considered part of the Leased Premises, and shall not be removed at or prior to the end of the Lease Term
without Landlord's written consent unless Landlord requests Tenant to remove same. If Tenant fails to
remove any shelving, decorations, equipment, trade fixtures or personal property from the Leased Premises
upon the end of the Lease Term, at Landlord's option they shall become Landlord's property and Tenant
shall pay for the repair of any damage done to the Leased Premises or Shopping Center and the costs
incurred resulting from the removal of the same.
N. To remove, at the termination of this Lease, Tenant's sign from the fascia above the storefront of the
Leased Premises, and to reimburse Landlord for the cost incurred by Landlord to repair, restore, repaint
and/or re-stain the fascia necessitated by the removal of such sign. The under canopy soft sign (other than
Tenant's removable name panels) shall remain and upon termination of the Lease shall become the property
of Landlord.
O. To execute and deliver whatever instruments may be required to evidence that this Lease and the rights
and interests of Tenant under this Lease are and shall be subject and subordinate to any mortgages or trust
deeds which Landlord may place upon the Landlord's Tract and the Leased Premises, and to any advances
made thereunder, and to the interest thereon, and all extensions thereof. In the event Tenant fails to execute
and deliver such instruments within ten (10) days after demand in writing. Tenant does hereby make,
constitute and irrevocably appoint Landlord as its attorney in fact and in its name, place and stead so to do
without prejudice to Landlord's remedies under this Lease which are cumulative. Any mortgagee or trustee
may elect also to give the rights and interest of Tenant under this Lease priority over the lien of its mortgage
or trust deed. Further, if any financing institution requires any non-substantive modifications of the terms
and provisions of this Lease (as determined by the Tenant) as a condition to such financing as Landlord may
desire, then Tenant shall execute and deliver such modification as may be required for such purposes, and in
the event Tenant fails to do so within ten (10) days after demand in writing, Tenant does hereby make,
constitute and irrevocably appoint Landlord as its attorney in fact and in its name, place and stead so to do
without prejudice to Landlord's remedies under this Lease which are cumulative. Such modification or
modifications shall not affect any of the provisions of this Lease relating to the amount of Minimum Rent
reserved, reducing the purposes for which the Leased Premises may be used, the size and/or location of the
Leased Premises, the duration or Commencement Date of the Lease Term, or reducing the improvements to
be made by Landlord to the Leased Premises prior to delivery of possession, if any.
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P. Intentionally omitted.
Q. To pay the Landlord as additional rent during the Lease Term, Tenant's Pro-Rata Share, as described in
Section 12.1, of the Real Estate Taxes (to the extent not paid pursuant to Article V, supra) actually paid by
Landlord during the calendar year of the respective Lease Term, (first calendar year (2009) being estimated
at $4.13 per square foot of the Lease Premises) and any renewal or extension thereof, including any period
during which Tenant shall transact business in the Leased Premises but not prior to the Commencement
Date. The term "Real Estate Taxes" shall include all real estate taxes, assessments, water and sewer rents
(except water meter charges and sewer rent based thereon) and other governmental impositions and charges
of every kind and nature whatsoever, extraordinary as well as ordinary, foreseen and unforeseen, levied or
assessed on or with respect to, or that become payable because of or in connection with the ownership,
leasing, management control, or operation of the Shopping Center, all costs incurred by Landlord in
contesting or negotiating the same with governmental authorities, plus an administration fee equal to five
(5%) percent of the amount of such costs incurred by Landlord.
Real Estate Taxes shall not include any inheritance, estate, succession, transfer, gift, franchise, corporation,
income or profit tax or capital levy that is or may be imposed upon Landlord; provided, however, that, if at
any time during the Lease Term the methods of taxation prevailing at the commencement of the Lease Term
shall be altered so that, in lieu of or as a substitute for the whole or any part of the taxes now levied, assessed
or imposed on real estate as such, there shall be levied, assessed or imposed (a) a tax on the rents received
from such real estate or (b) a license fee measured by the rents receivable by Landlord from the shopping
center or any portion thereof, or (c) a tax or license fee imposed upon Landlord which is otherwise
measured by or based in whole or in part upon the shopping center or any portion thereof, then the same
shall be included in the computation of Real Estate Taxes thereunder,.
Tenant agrees to pay its Pro-Rata Share of Real Estate Taxes to the Landlord in monthly payments of one-
twelfth (1112) of the "Initial Real Estate Tax Payment" (as such term is herein defined) on the first day of
each calendar month commencing upon the Commencement Date as its estimated payment of Real Estate
Taxes for the fIrst calendar year (2009) or portion thereof included in the Lease Term, said payments
totaling $4.13 per square foot of the Leased Premises (the "Initial Real Estate Tax Payment").
For each calendar year thereafter, Tenant shall pay Landlord monthly one-twelfth (1112) of the amount of
the Tenant's Pro-Rata Share of Landlord's actual real estate tax liability for the preceding calendar year, but
in no event less than the Initial Real Estate Tax Payment. In addition, as soon as practicable after January 1
in each year during the Lease Term, and in the year next following the year in which this Lease terminates,
Landlord shall deliver to Tenant a statement setting forth any additional rent due for Real Estate Taxes for
the immediately preceding calendar year. Any amount paid by Tenant which exceeds the true amount due
shall be credited on the next succeeding payment due pursuant to this Section, or, upon the expiration or
termination of the Lease, reimbursed to Tenant within ten (10) days thereof. If Tenant has paid less than the
amount due, Tenant shall pay the difference within thirty (30) days of receipt of notice from Landlord. This
covenant shall survive the expiration or earlier termination of the Lease. If the Lease Term shall begin or end
other than on the fIrst or last day of a calendar year, such charges shall be billed and adjusted on the basis of
such fraction of a calendar year. Should the taxing authority include in such real estate taxes, machinery,
equipment, fixtures, inventory or other personal property or assets of Tenant, then Tenant shall pay the entire
real estate taxes for such items.
Notwithstanding anything to the contrary herein, after receipt by Tenant of a statement describing the basis
for additional rent for Real Estate Taxes, if Tenant has cause to believe that Landlord's statement of
additional rent due is incorrect, Tenant shall notify Landlord in writing within 10 days after receipt of that
statement. Tenant may, through its employees, representatives and accountants, inspect, audit and copy
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Landlord's books and records, as they apply to such additional rent due to verify Landlord's statement of the
amount due. Landlord shall cooperate with Tenant in any verification effort and shall provide Tenant with
such paid receipts and vouchers as Tenant may reasonably request evidencing payments made. Tenant's
obligations to pay such additional rent shall be deferred for the lesser of the period necessary to make such
verification or 45 days from the date of receipt by Tenant of Landlord's statement of additional rent.
(Q-l) To pay Landlord, as additional rent, Tenant's Pro-Rata Share of premiums for fire and extended
coverage, vandalism, malicious mischief, liability and rental insurance (with all reasonable endorsements
deemed advisable by Landlord) paid periodically by Landlord for the respective Lease and any Renewal
Terms and during and for any period prior to the Lease Term in which Tenant is transacting business in the
Leased Premises (the "Insurance Premium").
Tenant agrees to pay to the Landlord one-twelfth (1/12) of the Insurance Premium on the first day of each
calendar month commencing upon the Commencement Date as its Pro-Rata Share of insurance for the first
calendar year or portion thereof included in the Lease Term, first calendar year (2009) not to exceed $0.24
per sq. ft. of the Leased Premises (the "Initial Insurance Premium"), and, thereafter, Tenant shall pay
Landlord monthly one-twelfth(1/12) of the amount of the Tenant's Pro-Rata Share of the Insurance Premium
for the preceding calendar year, but in no event less than the Initial Insurance Premium.
R. To remain fully obligated under this Lease notwithstanding any assignment or sublease or any indulgence
granted by Landlord to Tenant or to any assignee or sublease, but nothing contained in this subparagraph
shall be construed to permit any assignment or sublease by Tenant. Notwithstanding anything to the contrary
in this Lease, Landlord acknowledges and consents to Tenant's sharing of space in the Leased Premises with
the Mount Prospect Public Library, as a sublessee or licensee, and sharing of space with other entities as a
license, for purposes of Tenant's Neighborhood Resource Center.
S. (WHEN AND IF NECESSARY) To promptly furnish Landlord, from time to time, financial statements
in detail satisfactory to Landlord, reflecting the current financial condition of Tenant under this Lease, and if
Tenant is a corporation, a current roster of stock ownership certified by the corporate secretary, whenever
requested by Landlord.
T. To observe and comply with the requirements of all policies of public liability, fire and all other policies
of insurance at part thereof.
u. To comply with all further reasonable rules and regulations for the use and occupancy of the Shopping
Center as Landlord, in its sole discretion, from time to time promulgates for the best interest of the Shopping
Center, but only to the extent that such rules and regulations do not interfere with Tenant's reasonable use
and enjoyment of the Lease Premises. Landlord shall have no liability for violations thereof by any other
tenant of the Shopping Center and the waiver thereof shall not excuse the Tenant from compliance.
V. To refrain from assigning, selling, mortgaging, pledging, or in any manner transferring this Lease or any
interest therein, by operation of law or otherwise; to refrain from subletting the Leased Premises or any
potion or portions thereof, except with written consent of the Landlord.
w. Not to suffer any mechanic's liens to be filed against the Leased Premises or the Shopping Center by the
reason of any work, labor, services or materials performed at or furnished to the Leased Premises, to Tenant,
or to anyone holding the Leased Premises through or under the Tenant. If any such mechanic's lien shall at
any time be filed, Tenant shall forthwith cause same to be discharged of by payment or order of a court of
competent jurisdiction or otherwise, but Tenant shall have the right to contest any and all such liens,
provided security satisfactory to Landlord is deposited with Landlord within fifteen (15) days after the filing
of such lien. If Tenant shall fail to cause such a lien to be discharged within thirty (30) days after the filing
thereof and before judgment or sale thereunder, then, in addition to any other right or remedy of Landlord,
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Landlord may, but shall not be obligated to, discharge the same by paying the amount claimed to be due or
by bonding or other proceeding deemed appropriated by Landlord in Landlord's absolute discretion, and the
amount so paid by Landlord and all costs incurred by Landlord in procuring the discharge or bonding of
such lien, shall be deemed to be additional rent and together with interest thereon at twenty (20) per cent per
annum from date of payment shall be due and payable by Tenant to Landlord within ten (10 ) days of
Landlord's statement thereof. Nothing herein shall be construed as a consent on the part of Landlord to
subject Landlord's estate in the Leased Premise to any lien or liability under the Mechanic's Lien Law of
Illinois.
X. To pay on demand Landlord's expenses, including reasonable attorneys' fees, expenses of administrative
hearing and court costs incurred directly or indirectly in enforcing any obligation of Tenant under this Lease
including any default by Tenant, in connection with appearing, defending or otherwise participating in any
action or proceeding arising from the filing, imposition, contesting, discharging of any lien or claim for lien,
in defending or otherwise participating in any legal proceeding initiated by or on behalf of Tenant wherein
Landlord is not adjudicated to be in default under this Lease. Tenant's obligation under this subsection X
shall be effective only in the event that Tenant is adjudicated to be in default under the Lease.
ARTICLE IX. RULES AND REGULATIONS
Section 9.1 TENANT TO ABIDE BY RULES AND REGULATIONS
Tenant covenants and ~ees with Landlord that:
A. Except as otherwise provided in the Lease or consented in writing by Landlord, no sign, advertisement,
display, notice, or other lettering shall be exhibited, inscribed, or painted or affixed on any part of the Leased
Premises or inside, ifvisible from the outside, or outside the building of which they form a part. No symbol,
design, mark, or insignia adopted by Landlord for the Shopping Center or the Tenants therein shall be used
in connection with the conduct of Tenant's business in the Leased Premises or elsewhere without, in each
instance, the prior written consent of Landlord. All such signs, displays, advertisements and notices of
Tenant's so approved by Landlord shall be maintained by Tenant in good and attractive condition at
Tenant's expense and risk. Tenant shall not use hand bills for advertising at Shopping Center.
B. No awning or other projections shall be attached to the outside walls of the Leased Premises or the
building of which they form a part without, in each instance, the prior written consent of Landlord.
C. All loading and unloading of goods shall be done at such times, in the areas and through the entrances
designated for such purpose by Landlord.
D. All garbage and refuse shall be kept shall be kept in the kind of container specified by Landlord, and
prepared for collection in the manner and at the times and places specified by Landlord. If Landlord shall
provide or designate a service for picking up refuse and garbage, Tenant shall use same at Tenant's cost.
Tenant will not install any automatic garbage disposal equipment without the prior written consent of
Landlord.
E. No radio or television aerials shall be installed or erected on the roof or exterior walls or on the grounds
of the Leased Premises without prior written consent, in each instance, of Landlord. Any installation without
written authorization shall be removed without notice at Tenant's expense.
F. No loud speakers, television sets, radios or other devises shall be used in a manner so as to be heard or
seen outside the Leased Premises without the prior written consent of the Landlord.
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G. No auctions, or bankruptcy, or fire, or selling-out sales shall be conducted on or about Leased Premises
without the prior written consent of Landlord, which may be withheld in Landlord's absolute and sole
discretion.
H. Tenant shall keep Tenant's display windows illuminated and the signs and exterior lights lit each and
every day of the term herein during business hours.
I. Tenant shall keep Leased Premises at a temperature sufficient to prevent freezing of water pipes and
fIxtures.
1. The outside areas shall be kept clean and unobstructed.
K. Tenant shall not make or permit any objectionable noise or odor to emanate from Leased Premises. No
person shall use the Leased Premises as sleeping quarters or as lodging.
L. Tenant shall obtain all permits and licenses necessary to conduct its business.
M. Tenant shall not operate any coin or token operated vending machines or similar devises for the sale of
any goods, wares merchandise, food, beverages, or services, including but not limited to, pay telephones,
pay lockers, pay toilets, scales, amusement devices, candy, cigarettes or other commodities or any moving
sign or fixture of any kind without the prior written consent of Landlord.
The foregoing covenants and agreements of this Section 9.1 shall be referred to as "Rules and
Regulations."
Section 9.2 Amendments to Rules and Regulations
Tenant agrees that Landlord may amend, modify and delete present Rules and Regulations or add
additional reasonable rules and regulations for the use and care of the Leased Premises, the building of
which the Leased Premises are a part, the common areas and all of the Shopping Center so long as not to
interfere with tenant's use. Tenant agrees to comply with all such Rules and Regulations upon notice to
Tenant from Landlord.
Section 9.3 Default bv Tenant
The breach of any Rules and Regulations herein set forth or any amendments or additions thereto
shall constitute a default under this Lease, and in such event, Landlord shall have all remedies in this Lease
provided for default by Tenant.
ARTICLE X DAMAGE OR TAKING AND RESTORATION
Section 10.1 Fire. Explosion or Other Casualty
In the event the Leased Premises are damaged by fire, explosion or any other casualty to an extent
which is less than twenty-five (25) per cent of the insurable value of the Leased Premises, the damage shall
be promptly repaired by Landlord at Landlord's expense upon receipt by Landlord of insurance proceeds for
such damage; provided that Landlord shall not be obligated to expend for such repair an amount in excess of
the insurance proceeds recovered as a result of such damage and that in no event shall Landlord be required
to repair or replace Tenant's stock in trade, fixtures, furniture, furnishings, floor coverings and equipment. fu
the event of any such damage and (a) Landlord is not required to repair as hereinabove provided or (b) the
Leased Premises shall be damaged to the extent of twenty-five (25) per cent or more of insured value, or (c)
the building of which the Leased Premises are a part is damaged to the extent of twenty-five (25) per cent or
more of the insured value, or (d) the buildings (taken in the aggregate) in the Shopping Center shall be
damaged to the extent of twenty-five (25) per cent or more of the aggregate insurable value, Landlord may
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elect to either repair or rebuild the Leased Premises or the building or buildings, or to terminate this Lease
upon giving notice of such election in writing to Tenant within ninety (90) days after the occurrence of the
event causing the damage. If the casualty, repairing or rebuilding shall render the Leased Premises un-
tenantable, in whole or in part, and the damage shall not have been due to the default or neglect of Ten ant, a
proportionate abatement of the Rent shall be allowed from the date when the damage occurred until the date
Landlord completes its work, said proration to be computed on the basis of the relation which the gross
square foot area of the space rendered un-tenantable bears to the Floor Area. No abatement of Rent,
proportionate or otherwise, pursuant to this Section 10.1 shall have any effect upon or be viewed as a waiver
by either party of any rents value insurance maintained by such party relative to this Lease. If Landlord is
required or elects to repair the Leased Premises as herein provided, Tenant shall repair or replace its stock in
trade, fixtures, furniture, furnishings, floor coverings and equipment. If Tenant has closed, Tenant shall
promptly reopen for business. However, if in the event the Leased Premises are rendered un-tenantable for
longer than six (6) months, Tenant may in its sole discretion elect to terminate this Lease in its entirety,
without penalty or further obligations.
Section 10.2 Eminent Domain
If the whole of the Leased Premises shall be taken by any public authority under the power of
eminent domain, the Leased Term shall cease as of that day. Tenant shall pay Rent up to that date. All
proration's will be taken into account on a per diem basis. If less than all of the floor area is taken, the
Leased Term shall, at Tenant's option, cease only for the parts so taken by the public authority. Tenant shall
pay Rent up to that date.
If the Floor Area so taken leaves the space no longer suitable for permitted uses, as determined
solely by Tenant, then the Lease Term shall cease and the Tenant shall pay up to the date that possession is
taken. If more than twenty-five (25) per cent of the aggregate floor area of the building is taken by eminent
domain the Landlord may, by notice in writing to Tenant delivered on or before date of surrendering
possession to the public authority, terminate this Lease. All compensation awarded for the taking by eminent
domain shall belong to Landlord. Tenant hereby assigns to Landlord all of Tenants rights to any and all
compensation. However, Landlord shall not be entitled to any compensation specifically assigned to Tenant
by any public authority.
ARTICLE XI. DEF AUL TS BY TENANT AND LANDLORD, AND REMEDIES
Section 11.I/Defaults by Tenant
If (i) Tenant vacates or abandons the Leased Premises or permits the same to remain vacant or
unoccupied or fails to be continuously open for a period of thirty (30) days except for a temporary closing
due to force majeure, casualty, condemnation or remodeling, or (ii) Tenant shall falsify any reports required
to be furnished to Landlord under the terms of this Lease or (iii) Rent, Additional Rent, or any part thereof
shall be unpaid for five (5) days after written notice thereof to Tenant, or (v) default shall be made in the
prompt and full performance of any covenants, conditions or agreement of this Lease to be kept or
performed by Tenant and such default or breach of performance shall continue twenty (20) days (unless the
default involves a hazardous condition, which shall be cured immediately) after written notice to Tenant,
specifying such default or breach of performance, or (iv) any proceedings shall be commenced to declare
Tenant bankrupt or insolvent or to obtain relief under any chapter or provision of any bankruptcy or debtor
relief law or act or to reduce or modify the debts or obligations of Ten ant or to delay or extend the payment
thereof, or if any assignment of the property of Tenant be made for the benefit of creditors, or if a receiver or
trustee be appointed for Tenant or the property or business of Ten ant, or (v), the Landlord may treat the
occurrence of anyone or more of the foregoing events as a breach of this Lease and thereupon at its option,
without further notice or demand of any kind to Tenant or any other person, may have, in addition to all
other legal or equitable remedies, the following described remedies:
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Landlord may elect to terminate this Lease and the Lease Term created hereby in which event
Landlord forthwith may repossess the Leased Premises and Tenant shall pay at once to Landlord as
liquidated damages a sum of money equal to the Rent provided in this Lease for the balance of the stated
term of this Lease less the fair market rental value of the Leased Premises for said period.
Tenant hereby expressly waives the service of any notice of any election made by Landlord under
this Section 11.1, and demand for payment of Rent or for possession, except the particular demands and
notices as may in this Lease be specified.
The service of any default notice, demand for possession, a notice that the tenancy hereby created will
be terminated on the date therein named, the institution of an action of forcible dishonor or ejectment or the
entering of a judgment for possession in such action, or any other act or acts resulting in the termination of
Tenant's right to possession of the Leased Premises shall not relieve Tenant from Tenant's obligation to pay
the Rent hereunder during the balance of the Lease Term or any extension thereof, except as herein
provided.
The Landlord may collect and receive any rent due from Tenant and the payment hereof shall not
constitute a waiver of any existing default by Tenant or affect any notice or demand given, suit instituted or
judgment obtained by Landlord, or be held to waive, affect, change, modify or alter the rights or remedies
which Landlord has in equity or at law or by virtue of this Lease. Payment by Tenant or receipt by Landlord
of a lesser amount than any installment or payment due shall be deemed on account of, but not satisfaction
of, the amount due, and no endorsement or any transmittal document accompanying any check or payment
of any amount due shall be deemed an accord and satisfaction. Landlord may accept such check or payment
without prejudice to Landlord's right to recover the balance of any amount due or pursue any other remedies
available to Landlord. The acceptance of liquidated damages by Landlord under any of the provisions of this
Lease shall not preclude Landlord from the enforcement of any of the covenants or agreements of this Lease,
nor shall any other act which infers recognition of the tenancy operate as a waiver of landlord's right to
terminate this Lease, or operate as an extension of this Lease. Notwithstanding, the foregoing to the
contrary, in the event that this Lease is attempted to be assumed under federal bankruptcy law by a trustee in
bankruptcy law by a trustee in bankruptcy for Tenant or by Tenant as debtor in possession ( hereinafter
collectively referred to" Tenant's Trustee") and there exists a default or such a state offacts which with the
giving of notice and the passage of time would constitute a default (such state of facts, together with any
default being referred to as a "Default"), such attempted assumption shall not be effective unless Tenant's
Trustee:
(I) Cures, or provides adequate assurance that it will promptly cure, such Default; and
(2) Compensates, or provides adequate assurance that it will promptly compensate, Landlord for any actual
pecuniary loss to Landlord resulting from such Default; and
(3) Provides "adequate assurance of future performance" (as such term is herein defined) of Tenant's
obligations and covenants under this Lease.
For propose of the foregoing sentence, "adequate assurance of future performance" shall be deemed to
include, without limitation, adequate assurance of the following:
(i) The source of rental and other consideration due under this Lease;
(ii) That the Fixed Minimum Rent due under this Lease shall not decline substantially:
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(iii) That assumption or assignment of this Lease shall not substantially disrupt any tenant mix or balance in
. the Shopping Center and shall not violate the provisions of this Lease governing Permitted Uses; and
(iv) That assumption or assignment of this Lease shall not alter or affect materially any other obligation or
duty of Ten ant, nor be used to circumvent the remainder of the provisions of this Lease.
Furthermore, Tenant's Trustee may assign this Lease only if: (1) Tenant's Trustee assumes the Lease in
accordance with the above provisions of this paragraph 11.1; and (2) the assignee of Tenant's Trustee
provides adequate assurance offuture performance of Tenant's obligation and covenants under this Lease
(whether or not a default has occurred under the Lease), including, without limitation, the items listed in (I)
through (iv) above. If Landlord shall not be permitted to terminate this Lease as provided herein because of
the provisions of Title 11 of the US Code relating to Bankruptcy, as amended, the Tenant as debtor in
possession or any trustee for Tenant agrees promptly, within more than fifteen (15) days upon request by
Landlord to the Bankruptcy Court, to assume or reject this Lease, and Tenant, on behalf of itself and any
trustee, (11.1 )agrees not to seek or request any extension or adjournment of any application to assume or
reject this Lease by Landlord with such Court. In no event after the assumption of this Lease shall any then
existing default remain uncured for a period in excess of the earlier of (a) ten (10) days and (b) the time
period set forth herein. In the event of a filing of a petition under the Bankruptcy Code, Landlord shall have
no obligation to provide Tenant with any service or utilities as herein required unless Tenant shall have paid
and is current in all payments of Common Area Costs.
Section 11.2 Holdover by Tenant
In the event Tenant remains in possession of the Leased Premises after the expiration of the tenancy
created hereunder, and without the execution of a new lease, tenant, at the option of Landlord, shall be
deemed to be occupying the Leased Premises as a tenant from month-to-month, subject to all the other
conditions, provisions and obligations of this Leases insofar as the same are applicable to a month-to-month
tenancy.
Section 11.3 Landlord's Right to Cure
Landlord may, but shall not be obligated to, at any time, without notice, cure any failure by Tenant
to perform any obligation under this Lease; and whenever Landlord so elects, all costs and expenses incurred
by Landlord, including, without limitation reasonable attorneys fees together with interest on the amount of
costs and expenses so incurred at the rate often (10) per cent per annum shall be paid by Tenant to Landlord
on demand.
Section 11.4 Affect of Waivers of Default
No consent or waiver, express or implied, by Landlord or Tenant to or of any breach of any
~ovenant, condition or duty of Ten ant or Landlord, respectively, shall be construed as a consent or waiver of
any other covenant or condition or duty.
Section 11.5 Security Deposit
Landlord agrees to waive any Security Deposit.
Section 11.6 Default bv Landlord.
If Landlord fails to perform any of the terms, covenants, agreements, or conditions on its part to be
performed under this Lease and that failure continues uncorrected for sixty (60) days after notice of failure
from Tenant, Tenant may, in addition to all other legal or equitable remedies, terminate this Lease at any
time thereafter during the continuance of that default by written notice to Landlord, and Tenant shall be
relieved of any and all liability under this Lease. Landlord agrees to pay Tenant's expenses, including
reasonable attorneys' fees, expenses of administrative hearing and court costs incurred directly or indirectly
in enforcing any obligation of Landlord under this Lease including any default by Landlord. If Landlord
fails to perform any term, covenant, agreement, or condition under the Lease and Tenant is unable to operate
19
as a result of Landlord's failure, Tenant may, but is not required, upon thirty (30) days notice to Landlord,
correct the condition, the costs of which shall be subject to reimbursement by Landlord to Tenant.
ARTICLE Xll. MISCELLANEOUS PROVISIONS
Section 12.1 Calculations of Pro-rata Shares
The calculations of pro-rata shares of Real Estate Taxes, Common Area Maintenance costs, and
insurance premiums shall be equal to the product of (a) the amount of said Real Estate Taxes, Common
Area Maintenance costs, and insurance premiums, and (b) a fraction, the numerator of which is the total
Floor Area of the Leased Premises (2300 square feet) and the denominator of which is the total rentable
floor area in the Shopping Center, which is 39,660 square feet; that fraction being 2400/39,660 or .0605%.
Section 12.2 Mutual Waiver of Subrogation
Whenever any loss, cost damage or expense resulting from ftre, explosion or any other casualty or
occurrence is incurred by either party to this Lease in connection with the Leased Premises, and such party is
then covered in whole or in part by insurance with the respect of such loss, cost, damage or expense, then the
party so insured hereby releases the other party from any liability it may have on account of such loss, cost,
damage, or expense to the extent of any amount recovered by reasons of such insurance and waives any right
subrogation which might otherwise exist in or accrue to any person on account thereof, provided that such
release of liability and waiver of the right of subrogation shall not be operative in any case where the effect
thereof is to invalidate such insurance coverage or increase the cost thereof.
Section 12.3 Passageways
No permanent or temporary revocations or modiftcations to occupy or use or maintain any
passageway or structure in, over or under any street or sidewalk shall operate as or be deemed an eviction of
the Tenant or in any way terminate, modify, or abate the obligations of the Tenant to pay the full rental and
additional rental as in this Lease provided and to perform each and every covenant thereof, except to the
extent that it affects Tenant's use of the Leased Premises.
Section 12.4 Adiacent Excavation-Shoring
If an excavation shall be made upon land adjacent to the Leased Premises, or shall be authorized to
be made, Tenant shall afford to the person causing or authorized to cause such excavation license to enter
upon the Leased Premises for the purpose of doing such work as said person shall deem necessary to
preserve the wall or the building of which the Leased Premises form a part from injury or damages and to
support the same by proper foundation without any claim for damages or indemnity against Landlord, or
diminution or abatement of rent, except to the effect that such work affects the Tenant's use of the Leased
Premises.
Section 12.5 Access to Landlord for Placing Signs
Tenant agrees that Landlord, its agents, employees or any person authorized by Landlord may enter
the Leased Premises to place in and upon the Leased Premises at such places as may be determined by
Landlord "for rent" signs or notices during the last six (6) months of the Lease Term or any extension
thereof. Tenant agrees that neither Tenant nor any person within Tenant's control will interfere with such
signs or notices.
Section 12.6 Intentionally Left Blank.
Section 12.7 Notices
Any notice or demand from Landlord to Tenant or from Tenant to Landlord shall be mailed by
registered mail, certifted mail, or personally delivered to the proper address. If to tenant to Village of Mount
Prospect, Attention: Village Manager, 50 S. Emerson Street, Mount Prospect, Illinois 60056 and if to
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Landlord, to Crystal Court Shopping Center 4701 N. Cumberland Ave. Space #27, Norridge, IL. 60706. The
customary receipt signed or refused by the party to whom notice is directed shall be conclusive evidence of
such service. Notice shall be deemed given when delivered, if given by personal delivery, otherwise when
received, as evidenced by receipt or refusal, as applicable.
Section 12.8 Left Blank
Section 12.9 Left Blank.
Section 12.10 Relationship of Parties
Nothing contained herein shall be deemed or construed by the parties hereto nor by any third party,
as creating the relationship of principal and agent or of partnership or of joint venture between the parties
hereto, it being understood and agreed that neither the method of payment of rent nor any other provision
contained herein, nor any acts of the parties hereto, shall be deemed to create any other relationship than
Landlord and Tenant. Whenever the singular is used it shall include the plural and wherever the masculine
gender is used it will include the feminine.
Section 12.11 Short Form Lease
Tenant agrees not to record this Lease. Both Tenant and Landlord agree, at either's request, to
execute, acknowledge and deliver at any time after the date of this Lease a "short form lease" suitable for
recording, setting forth those items, except Rent, contained herein.
Section 12.12 Estoppels Certificate
At any time Tenant agrees, upon request in writing from Landlord or any mortgagee or purchaser of
Landlord, to execute, acknowledge and deliver to Landlord a statement in writing certifying that Lease is in
full force and affect, and any other matters reasonably requested by Landlord, or mortgagee or purchaser of
Landlord.
Section 12.13 Applicable Law
The laws of the state of Illinois shall govern the validity, performance and enforcement of this
Lease. The unenforceability or invalidity of any provision of this Lease shall not affect any other provision
of this Lease. Any headings of any provisions or articles contained herein are for convenience only and do
not defme, limit, or construe the contents of such articles or provisions of this Lease.
Section 12.14 Execution of Lease by Landlord
Employees or agents of Landlord have no authority to make or agree to make a lease or any other
agreement or undertaking in connection herewith. The submission of this document for examination does
not constitute an offer to lease. The Lease and the Leased Premises become effective and binding only upon
the execution and deliver hereof by Tenant and Landlord. All negotiations, considerations, representations
and understandings between Landlord and Tenant are incorporated herein and may be modified or altered
only by agreement in writing between Landlord and Tenant, and no act of omission of any employee or
agent of Landlord shall alter, change, waive, or modify any of the provisions hereof.
Section 12.15 Binding Effects of Lease
The covenants, agreements and obligations herein contained except as herein otherwise specifically
provided, shall extend to, bind and inure to the benefit of the parties hereto and their respective personal
representatives, heirs, successors and assigns. Landlord may at any time assign its interest in this Lease.
Assumption by the assignee shall release Landlord from any and all liabilities hereunder.
Section 12.16 Landlord's Beneficiaries and Agents
Wherever in this Lease, Landlord is granted a right of consent or approval, a right to inspect, a right
to add improvements to the Shopping Center, a right to designate repairs improvements or maintenance
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required to be made by Tenant or changes in any plans submitted by Tenant or any other act which involves
the exercise of discretion, such discretion may be exercised by Landlord, Landlord's beneficiaries, or
Landlord's managing agent. Any obligation set forth in this Lease of the Landlord, or any obligation of
Tenant which Landlord is given the right to perform on Tenant's behalf, shall conclusively be deemed to
have been performed by Landlord as if the same shall have been performed by Landlord, Landlord's
beneficiaries, or their agents or employees. Any obligation in this Lease to indemnify Landlord (or Landlord
and any other party), or to waive any claim against Landlord (or Landlord and any other party) is hereby
extended so that such obligations shall run in favor of Landlord, Landlord's beneficiaries and their agents
and employees. Whenever in this Lease it is acknowledged or stated that Landlord has made no
representation or warranties or promises with respect to any matter such provisions shall be deemed to
acknowledge or state that neither Landlord nor any beneficiary nor any agent nor employee of Landlord nor
its beneficiaries has made such representations or warranties or promises. All rights to enforce any
provisions of this Lease on the part of Landlord or any rights to exercise any remedies of Landlord, either
specifically provided for herein or at law or equity, may be exercised by Landlord's beneficiaries or any
agents of Landlord or Landlord's beneficiaries, in their own name, alone or in conjunction with Landlord or
any of the foregoing parties.
Section 12.17 Intentionally Omitted
Section 12.18 Obiection to Statements
Tenant's failure to object to any statement, invoice or billing rendered by Landlord within a period of one
hundred and twenty (120) days after receipt thereof shall constitute Tenant's acquiescence with respect
thereto and shall render such statement, invoice or billing an account stated between Landlord and Tenant
***
IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease the day and year frrst above
written.
Tenant: Village of Mount Prospect
Landlord:
By:
Irvana K. Wilks
Mayor
By:
As Trustee of the Parkway Bank and Trust,
not personally, but as Trustee under Trust
Agreement dated November 2, 1998, and
known as Trust No. 12122
Date:
Date:
Attest:
By:
M. Lisa Angell
Village Clerk
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EXHIBIT A
DESCRIPTION OF CRYSTAL COURT SHOPPING CENTER AND LEASED PREMISES
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EXIllBIT "B"
DESCRIPTION OF WORK. ON LEASED PREMISES
Work on the Leased Premises includes, but is not limited to, the following: (if needed)
A. All Work, as hereinafter described, required to complete and place the Leased Premises in fmished
condition for opening of business will be perfonned by Tenant, at Tenants expense, except to the extent of
any credit provided in the Lease. Such Work shall be in accordance with this Exhibit, and the Lease to which
this Exhibit is attached.
B. The WORK.
1.) All floor finishes, salient's and coverings.
2.) Painting and decorating.
3.) All trade fixtures and furnishings.
4.) All tenant signs on the Leased Premises, except as described in Exhibit C.
5.) Interior partitions and doors.
6.) Storefront display platfonns or backgrounds.
7.) All additions, deletions or modifications to existing conditions or to Landlord's
Work (proposed or in place).
8.) Temporary services and facilities during construction shall be the responsibility of the Tenant from the
date the Tenant commences the Work, including costs or charges for any utilities or other services to the
Leased Premises.
9) ADA bathroom improvements.
10) Heating, ventilation and air conditioning (HV AC) System replacement, including all necessary
ductwork, and one (1) central heating and cooling unit for the entire Leased Premises, though two (2) roof
units may be installed at Tenant's discretion, subject to the credit in Section 4.1 (e) of the Lease.
11) Fire suppression sprinkler system.
12) Landlord specifically authorizes Tenant to buildout the Leased Premises in substantially the manner
described in the Floorplan, attached hereto and incorporated herein as Exhibit B-1.
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EXHIBIT "C "
SIGN CRITERIA
I GENERAL
1.1 This exhibit shall govern the design, construction, installation and standards of repair of all signs to be
installed initially by the Tenant at its cost, in conjunction with the provisions of the Tenant's Lease. The
Landlord shall make all final and controlling determinations concerning any questions of interpretation of
this sign policy.
1.2 It is intended that the signing of stores in Crystal Court Shopping Center shall be designed and executed
in a manner to result in an attractive and coordinated total effect. Lettering shall be well proportioned, and
its design, spacing and legibility shall be a major criteria for approval.
1.3 Tenant shall be required to identify the Leased Premises by erecting (1) sign which shall be attached
respectively directly to the building fascia. Where the Leased Premises is a comer store, Tenant may install a
fascia sign on each fascia when the side fascia exceeds fifteen (15) feet in length, and the criteria shall
govern each frontage respectively. In no event shall the preceding sentence be construed to permit the
installation of fascia sign on sides of a building lacking fascia.
1.4 Landlord shall supply and install a uniform identification sign on the Tenant's service door at the
Tenant's expense. Tenant shall not post any additional signs in the service area.
1.5 The content of Tenant identification signs shall not include names of items for sale.
1.6 All lines oflettering shall run horizontally.
1.7 All lettering shall be upper case or lower case block type letters or combination thereof. Script lettering
shall not be allowed, except as the Landlord shall otherwise determine.
1.8 Moving, rotating, flashing, noise-making or odor-producing signs shall not be allowed.
1.9 The names, stamps or decals of manufacturers or installers shall not be visible except for technical data
(if any) required by governing authorities.
1.10 Tenant shall not be permitted to open for business without approved required signs in place. Failure to
open for this reason shall not excuse Tenant from the performance of its obligations under the Lease.
II CRITERIA FOR BUILDING FASCIA SIGNS
2.1 Letters shall be individual and individually mounted to the fascia material with minimum practical sized,
non-corrosive, concealed fastenings, weather-sealed at point of fascia penetration.
2.2 Length of sign shall be limited to sixty-five (65) percent of the fascia frontage. The assigned position for
each Tenant sign shall be as close to a center-of- frontage location as possible subject to allowance for
positioning comer store signs and suitable space between adjacent tenant's signs, as determined by
Landlord. Multiple premises by Tenant (Le. those whose fascia frontage exceeds forty (40) feet) shall center
sign in bay containing entrance, and sign shall be limited to twenty-six (26) feet in length.
2.3 The principal base of all sign letters shall be aligned on a base line located as determined by the
Landlord for each Tenant Sign.
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2.4 The maximum height of upper case and lower case block and script letters and ascenders of lower case
letters shall be limited to twenty-four (24) inches and decenders of lower case letters shall be limited to eight
(8) inches.
2.5 Letters shall be of minimum practical depth. Maximum depth shall be five (5) inches.
2.6 Letters shall be channel type formed of steel or aluminum back and sides with porcelain or baked enamel
exterior fmish. Open end of the channel shall be glazed with acrylic plastic facing of color selected by the
Tenant.
2.7 Sign letters shall be self-illuminated. Internal illumination shall be provided by neon-type tubing with
wring and transformers concealed behind the fascia shall be of minimum practical size and number, non-
corrosive, concealed and weather sealed at point of fascia penetration. Landlord shall provide an access
panel in the canopy soffit to the sign wiring area.
2.8 Prior to awarding a contract for fabrication and installation of Tenant's building fascia sign, Tenant shall
submit drawings and specifications, in quadruplicate, including samples of materials and colors, for all its
proposed building fascia and storefront sign work. The drawings shall clearly show location of sign and
indicate graphs, color, materials, construction and attachments details. Landlord shall return one (1) set to
Tenant with its required modifications and/or approval.
2.9 Tenant shall purchase its fascia signage through Landlord's recommended sign contractor unless
Landlord's recommended sign contractor's price is for more than one hundred and ten (110) per cent of the
price available from another reputable sign contractor selected by Tenant.
ill CRITERIA FOR STOREFRONT SIGNS
3.1 Tenant may install not more than a total of two (2) identical signs on the doors, windows or sidewalk
returns of the storefront. Signs, non-illuminated or illuminated, shall not exceed two (2) inches in height and
letters shall be either painted, or cut from self-adhering vinyl fabric or one quarter (1/4) inch thick wood,
metal or plastic or appropriate materials, without Landlord's approval.
3.2 Tenant shall not apply any other signs to the interior or exterior face of the storefront glass or other
material.
IV APPROVAL OF LOCAL GOVERNMENT AUTHORITIES
4.1 Tenant shall be responsible for complying with the rules, regulations and ordinances governing the
installation and maintenance of signs with the Village of Mount Prospect, Illinois. Application for all
necessary permits and the payment of any fees shall be directed to the appropriate Village Department by
Tenant.
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RESOLUTION NO.
A RESOLUTION AUTHORIZING THE EXECUTION OF A LEASE AGREEMENT
BETWEEN THE VILLAGE OF MOUNT PROSPECT
AND PARKWAY BANK AND TRUST FOR PROPERTY LOCATED AT
1709-1711 WEST ALGONQUIN ROAD, MOUNT PROSPECT, ILLINOIS
WHEREAS, the Village of Mount Prospect is desirous of entering into a Lease Agreement for up to
five years with Parkway Bank and Trust for two (2) units located in the Crystal Court Shopping
Center at 1709 and 1711 West Algonquin Road; and
WHEREAS, such lease agreement will allow for the operation of the Village's Neighborhood
Resource Center (NRC) that will benefit the citizens of Mount Prospect.
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS, ACTING IN THE EXERCISE
OF ITS HOME RULE POWERS:
SECTION ONE: That the Board of Trustees of the Village of Mount Prospect do hereby authorize
and direct the President to execute and the Village Clerk to attest the signature on the Agreement
between the Village of Mount Prospect and Parkway Bank and Trust for the purpose of leasing two
(2) units within the Crystal Court Shopping Center; 1709 and 1711 West Algonquin Road. Mount
Prospect, Illinois. for the Village's Neighborhood Resource Center. Said Lease shall be for a period
of 3 years with a subsequent two (2) year option if mutually agreed by both parties, as set forth in the
Lease, a copy of which is attached and made a part of this Resolution as Exhibit "A."
SECTION TWO: That this Resolution shall be in full force and effect from and after its passage
and approval in the manner provided by law.
AYES:
NAYS:
ABSENT:
PASSED and APPROVED this day of February, 2009
Irvana K. Wilks
Mayor
ATTEST:
M. Lisa Angell
Village Clerk
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