R-1123 - 09/13/2011 - ECONOMIC DEVELOPMENT - Resolutions Supporting DocumentsITEM 11 .B.2)
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AGENDA ITEM
Regular Board of Trustees Meeting
of
September 13, 2011
SUBJECT: Hub Group Incentive Package
FROM: David Niemeyer, Village Manager
BUDGET SOURCE/BUDGET IMPACT: N/A
RECOMMENDATION: Motion to Approve Resolution 2011 - ECODV -R -1123, "A Resolution
Regarding Hub Group, Inc. Corporate Relocation ".
Background/History,:
The Greater Oak Brook Partnership was recently asked to make a presentation to the Hub group
on what Oak Brook has to offer. The Hub Group is looking at constructing an office building on
the Irgens property at York Road and Interstate 88. Along with representatives from the Chamber,
President Lalmalani, Trustee Zannis, Bob Kallien, Chief McEllin and myself made the
presentation to the Hub Group.
The Hub group is looking at a number of sites, some in the Chicago area, some in other states.
Oak Brook is one of the finalists and the Hub group has asked us to consider a financial incentive
package. Recently, with input from the Village Board, I sent a letter to the Hub group offering
them two incentives:
-A 50% reduction in build out permit fees which would normally be around $60,000. This is in
addition to the already approved Irgens main permit fee cap fee of $75,000.
-An additional contribution to the developer's roadway improvements in the amount of $150,000
which Irgens will pass along to the developer as a reduction in the square foot lease. This is in
addition to the $100,000 we are already contributing to the improvements. This will come out of
the infrastructure maintenance fund.
The building that the Hub group is looking at building would be larger than what was originally
proposed for this site. The Hub group also has a property tax abatement proposal that is being
considered by District 205.
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The Hub Group has asked the Village to have the board approve these incentives by resolution. If
the Hub group decides to relocate to Oak Brook, the next step would be to negotiate a
development agreement with the Hub group as well as make appropriate changes to the Irgens
development agreement. Representatives from the Hub group will be in attendance at this meeting.
Recommendation:
I recommend that this Resolution be approved.
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resolution 9- 13.doc
RESOLUTION 2011- ECODV -R -1123
A RESOLUTION REGARDING HUB GROUP, INC. CORPORATE RELOCATION
WHEREAS, Hub Group, Inc. together with its subsidiaries (collectively, "Hub ") is in the process
of reorganizing its real estate assets and considering multiple locations, including Oak Brook locations, for
its corporate headquarters; and
WHEREAS, Hub currently has more than 350 full time employees in Illinois and approximately
315 full time employees at its existing Downers Grove headquarters.
WHEREAS, Hub intends to consolidate certain of those full time employees currently working at
sites other than its headquarters at its new headquarters facility.
WHEREAS, Hub expects to create at least 25 new full time jobs in Illinois and intends to locate
those new employees at its new headquarters by November 2013; and
WHEREAS, Hub further anticipates project costs, exclusive of lease costs, of approximately $15
million; and
WHEREAS, Hub has expressed particular interest in property on York Road along Interstate 88
that is subject to a development agreement ( "Development Agreement') entered into on April 4, 2011,
between the Village and York Road Development Partners, LLC and Irgens Development Partners, LLC
( "Developee'); and
WHEREAS, in light of the economic benefits that would be derived by the Village should Hub
choose to locate its new corporate headquarters in Oak Brook, the Village Manager has crafted a
reasonable and responsible package of economic incentives for consideration; and
WHEREAS, the proposed incentives are (i) a 50 percent reduction in otherwise applicable build
out fees that Hub would otherwise be required to pay to the Village as part of its build out of the new
building once it is constructed by the Developer, and (ii) a Village contribution of $150,000 to the
Development Agreement's required Developer roadway improvements which amount the Developer will
pass through to Hub as part of a reduction in the square foot lease for the Hub headquarters ( "Proposed
Incentives'); and
WHEREAS, the Village President and Board of Trustees have determined that it is appropriate
and in the best interests of the Village and its residents to commit to the Proposed Incentives to be
offered to Hub in order to provide further economic justification for Hub to locate its corporate
headquarters' in Oak Brook;
NOW THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows:
Section 1: Recitals. The recitals are hereby adopted as part of this Resolution.
Section 2: Approval of Proposed Incentives. The Proposed Incentives are hereby approved
and the Village Manager is authorized to communicate this approval in writing to Hub Group, Inc.;
provided, however, that the approval of the Proposed Incentives is subject to incorporation into a final
development agreement to be approved by Hub and the Village.
Section 3: Effective Date. This Resolution shall be in full force and effect from and after its
passage and approval as provided by law.
Ayes:
APPROVED THIS 131" day of September, 2011
Gopal G. Lalmalani
Village President
PASSED THIS 13th day of September, 2011
ATTEST:
Charlotte K. Pruss
Village Clerk
Resolution 2011 - ECODV -R -1123
Hub Group Corporate Relocation
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