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O-979-96 04/22/96ITEM V.B.L3 VILLAGE OF LEMONT ORDINANCE NO. 9 AN ORDINANCE AUTHORIZING THE ACCEPTANCE OF REVENUE PURSUANT TO THE CALUMET CITY SOUTH SUBURBAN MAYORS AND MANAGERS ASSOCIATION AGREEMENT ADOPTED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF LEMONT This 22nd day of April , 1996. Published in pamphlet form by authority of the President and Board of Trustees of the Village of Lemont, Counties of Cook, Will, and DuPage, Illinois this 22nd day of April , 1996 ORDINANCE 9 ORDINANCE AUTHORIZING THE ACCEPTANCE OF REVENUE PURSUANT TO. THE CALUMET CITY SOUTH SUBURBAN MAYORS AND MANAGERS ASSOCIATION AGREEMENT WHEREAS, the City of Calumet City seeks approval for one or more casinos or riverboat gaming facilities from the State of Illinois; and WHEREAS, it is in the best interest of the Village of Lemont to support the City of Calumet City in seeking to obtain State approval for one or more casinos or riverboat gaming facilities to be located within the City of Calumet City; and WHEREAS, upon obtaining State licensing certain revenue will be generated through various taxes upon the casinos or riverboat gaming facilities to be located int he City of Calumet City; and WHEREAS, the City of Calumet City has determined that it is appropriate to share a portion of the tax revenue it will receive from the various gaming taxes on the gaming facilities to be located within its borders. with certain other cities, villages and towns in suburban Cook County; and WHEREAS, the City of Calumet City and the South Suburban Mayors and Managers Association have reached an Agreement Concerning Distribution of Revenue Allocated to the Calumet City Gaming Tax Revenue Sharing Program (the "Agreement "); and WHEREAS, the Agreement provides a mechanism, through the various municipal conferences, to distribute the revenue being shared by the City of Calumet City to the cities, villages and towns in suburban Cook County which have elected to participate and which meet the eligibility requirements; and WHEREAS, the Village of Lemont is in agreement that it should accept and participate in the distribution of portions of said gaming tax revenue allocated to it pursuant to the terms and conditions of the Agreement; and WHEREAS, the amount distributed pursuant to the Agreement is not fixed, but will be calculated by the South Suburban Mayors and Managers Association. NOW, THEREFORE, BE IT ORDAINED by the President and Board of Trustees of the Village of Lemont as follows: 1. The Village of Lemont agrees to accept distribution of its share of the gaming tax revenue from the West Central Municipal Conference, the Northwest Municipal Conference or the South Suburban Mayors and Managers Association, (collectively along with the City of Calumet City, the "Municipal Conferences "), pursuant to the Agreement Concerning Distribution of Revenue Allocated to the Calumet City Gaming Tax Revenue Sharing Program (the "Calumet City -South Suburban Mayors and Managers Agreement ") and Acceptance of Revenue Agreement. 2. In return for the right to share in the aforesaid tax revenue, the President and Clerk of the Village be and are authorized and directed to sign the Acceptance of Revenue Agreement, which is attached hereto and incorporated herein as Exhibit A. 3. The Village of Lemont shall abide by the terms, conditions and requirements of both the Calumet City -South Suburban Mayors and Managers Agreement and the Acceptance of Revenue Agreement. 4. This ordinance is effective as of the date of its passage. PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF LEMONT, COUNTIES OF COOK, WILL AND DUPAGE, ILLINOIS, on this 22nd day of April , 1996. Barbara Buschman Alice Chin Keith Latz Connie Markiewicz Richard Rimbo Ralph Schobert AYES NAYS PASSED ABSENT J ✓ CiZ��G? CHARLENE SMOLLEN, Village Clerk Approved by me this 22nd day of April 1996 Attest: /14,1-64reet- ARLENE SMOLLEN, Village Clerk D A. KWASNESKI, Village President 9/12/95 ACCEPTANCE OF REVENUE AGREEMENT EXHIBIT 1 THIS AGREEMENT is entered into by and between the South Suburban Mayors and Managers Association ( "Association ") and the Village /City /Town of ( "Village ").1 This Agreement has been duly executed and adopted pursuant to the requirements of the parties' respective corporate authorities. In consideration of receiving a share of said gaming tax revenue, the Association's administration of the distribution of gaming tax revenue, the assistance of the West Central Municipal Conference and the Northwest Municipal Conference in the administration and other good and valuable consideration, the adequacy and receipt of which are acknowledged, the parties agree, as follows: A. THE DISTRIBUTION OF GAMING TAX REVENUE: 1. The South. Suburban Mayors and Managers Association, with the assistance of the West Central Municipal Conference and the Northwest Municipal Conference, shall administer the distribution of such gaming tax revenue as is made available for distribution by Calumet City. 2. Said distribution shall occur pursuant to the Agreement Concerning Distribution of Revenue Allocated to the Calumet City Gaming Tax Revenue Sharing Program (the "Calumet City -South Suburban Mayors and Managers Associa- 1Substitute City, Town or Village throughout as appropriate. 1 tion Agreement ") previously entered into between Calumet City and South Suburban Mayors and Managers Association. The Calumet City -South Suburban Mayors and Managers Association Agreement is incorporated by reference herein and is attached as Exhibit A hereto. 3. For such time as the Village meets the eligibility requirements, it will receive revenue in accordance with the terms of this Agreement. 4. The South Suburban Mayors and Managers Association shall have the right to use its discretion in determining, in a reasonable manner, the amount of the distribution the Village will receive in accordance with the Calumet City - South Suburban Mayors and Managers Association Agreement. 5. The Village shall return the amount of any distribution or any portion thereof within five (5) days of the receipt of a written demand if the Association determines that any distribution or any portion thereof was made in error. B. MEETING THE ELIGIBILITY REQUIREMENTS OF THE CALUMET CITY SOUTH SUBURBAN MAYORS AND MANAGERS ASSOCIATION: 1. The Village understand that it must, at the time of each distribution, be eligible to receive distributions of gaming tax revenue under the Agreement. The Village shall cooperate with the Association in verifying its eligibility and continued eligibility. Should the. Village, in the Association's sole discretion and at any 2 time, become ineligible to receive distributions of gaming tax revenue under the Agreement, such distribu- tions shall immediately cease and the Village shall immediately return such funds as may have been distribut- ed since becoming ineligible. 2. The Village shall not establish any other similar casino or gaming establishment(s) (collectively "Casino ") in suburban Cook County unless the unit of local government in whose jurisdiction said Casino is established agrees to-share revenue with the cities, villages and towns, other than the City of Elgin, which are located, in whole or in part, within suburban Cook County in a manner substantially similar to that under the Agreement. 3. The Village warrants that it receives no gaming tax revenue from any source other than one which permits betting exclusively on horse racing. 4. Should a Casino or home dock of a riverboat Casino locate within the Village, any gaming tax revenue received by the Village will be shared in the cities, villages and towns, other than the City of.Elgin, which are located, in whole or in part, within suburban Cook County in a manner substantially similar to that under the Agreement. 5. The Village shall cooperate with and take all reasonable steps requested by Calumet City or the Association to support Calumet City's efforts to obtain approval of legislation which will authorize the Casino to be located 3 within Calumet City and thereafter support Calumet City' s efforts to obtain any and all administrative and other approvals which may be necessary to obtain the licenses and approvals required in order for the Casino to operate. C. INDEMNIFICATION: 1. The Village shall indemnify and hold harmless the West Central Municipal Conference, South Suburban Mayors and Managers Association and the Northwest Municipal Conference (collectively, the "Municipal Associations ") and Calumet City, and each of their officers, directors, trustees, employees and agents, without limitation, against any liability, loss, action,claim, damage or expense (including, but not limited to attorneys' fees and disbursements) to which they may become subject insofar as they may be in any manner whatsoever related to the collection, administration or distribution of tax revenue from gaming operations in Calumet City under this Agreement or the Calumet City -South Suburban Mayors and Managers Association Agreement: a. The liabilities, losses, actions, claims, damages and expenses (including attorneys' fees and dis- bursements) for which the Municipal Associations and Calumet City are indemnified and held harmless shall be reimbursable when they are incurred with- out any requirement of waiting for the ultimate 4 outcome of any litigation, claim or other proceed- ing; and (i) Payment shall be made within ten (10) days after receipt of a notice containing an itemization of costs and expenses; (ii) Payment shall not be conditioned precedent to the obligation to indemnify and hold harmless; (iii) In addition to any remedy available for failure to periodically pay such amounts, such amounts shall thereafter bear interest at the rate of eighteen percent (180) per annum from the date of sending the notice. b. Each person and entity indemnified hereunder shall have a right to be represented by counsel of that person's or entity's own choosing; and c. The Association may, in its sole discretion, elect to withhold any or all monies due to be distributed until such costs, expenses, damages, liabilities, losses, claims or expenses (including interest, attorneys' fees and disbursements) are paid and /or as set -off there against. D. RESERVED E. ELECTION OF REMEDIES, WAIVER AND LACHES: 1. The taking of any action or the election of any remedy by the Municipal Associations or Calumet City shall not be deemed a waiver of any other remedy or right; and 5 H. SEVERABILITY: The provisions of this Agreement are severable. In the event that any section, paragraph, sentence, clause or phrase in ,this Agreement is found or declared by a final judgment of a court of competent jurisdiction to be invalid or unenforceable, such finding or declaration shall not affect the validity or enforceability of any other provisions or part thereof and any provisions not held invalid or unenforceable shall continue in full force and effect unless such invalidity or unenforceability renders this Agreement meaningless or grossly inequitable. I. TERM: 1. This Agreement shall remain only so long as and to the extent that Calumet City provides gaming tax revenue to South Suburban Mayors and Managers Association for distribution. J. NO LIMITATION OF OTHER POWERS AND AUTHORITY: Except as specifically provided in this Agreement, the provisions of this Agreement shall not limit or otherwise affect any power or authority which either the Village, Calumet City, or South Suburban Mayors and Managers Association have pursuant to the Constitution and laws of the United States and the State of Illinois. 7 2. No waiver by the Municipal Associations, or any of them, of a default. shall be construed as a waiver of any subsequent default or failure to perform; and 3. The failure of the Municipal Associations or Calumet City to enforce the provisions of this Agreement against the Village shall not be deemed to constitute laches or otherwise constitute a bar to subsequent enforcement. 4. The failure of the Village or the Association to insist on the other party's strict compliance with the terms and conditions contained in this Agreement shall not consti- tute a waiver of their right to insist that. the other party in the future strictly comply with any and all of the terms and conditions contained in this Agreement and to enforce such compliance by any authorized remedy. F. CAPTIONS: The captions used in this Agreement are for the convenience of the parties only and shall not affect the meaning of any of the provisions of this Agreement or be deemed a part of this Agreement. G. ENTIRE AGREEMENT: This Agreement constitutes the entire agreement of the parties and supersedes all previous communications, representations or agreements, either verbal or written, between the parties. 6 K. BINDING EFFECT AND ASSIGNABILITY: This agreement shall be binding upon and inure to the benefit of the parties, their successors and assigns. However, neither the Association nor the Village shall assign this Agreement or any of their rights or obligations under this Agreement without the prior written consent of the other party. L. MODIFICATIONS AND AMENDMENT: This Agreement may e modified or amended only by a duly authorized written instrument signed by both the Village and the Association. M. AUTHORIZATION TO EXECUTE AGREEMENT: The person signing this Agreement on behalf of the Association represents and warrants that he has been duly authorized to sign the Agreement on its behalf and by his signature to bind it to the terms and conditions contained in this Agreement. The person signing this Agreement on behalf of the Village represents and warrants that he has been duly authorized to sign this Agreement on behalf of the Village and, by his signature, to bind the Village to the terms and conditions contained herein. N. NOTICES: All notices required or permitted under this Agreement shall be made in writing and shall be deemed given or delivered when 8 received or when deposited in the United States Mail by registered or certified mail, return receipt requested, postage prepaid and addressed, as follows: IF TO VILLAGE WITH A COPY TO: IF TO SOUTH SUBURBAN MAYORS AND MANAGERS ASSOCIATION: Attn: Attn: Beth Ruyle, Executive Director South Suburban Mayors and Managers Association 1904 West 174th Street East Hazel Crest, Illinois 60429 By notice complying with the requirement of this Article, each party shall have the right to change the' address or addressee or both for all future notice to such party. NOW, THEREFORE, the Village hereby agrees to accept its share of said gaming tax revenue from the Municipal.Association of which it is a member. If the Village is not a member of any of the Municipal Association, it hereby agrees to accept its share of said 9 gaming tax revenue from the South Suburban Mayors and Managers Association. DATED this ATTEST: By: /J Its: // day of , 19 96 Its: SOUTH SUBURBAN MAYORS AND MANAGERS ASSOCIATION By: g3st . Its: Ex utive Direct SSMMA \WCMCACCE.AGRUS944 19.000 10 AGREEMENT BETWEEN SOUTH SUBURBAN MAYORS AND MANAGERS ASSOCITION CITY OF CALUMET CITY ESTABLISHING GAMING TAX REVENUE SHARING PROGRAM 10/6/95 AGREEMENT CONCERNING DISTRIBUTION OF REVENUE ALLOCATED TO THE CALUMET CITY GAMING TAX REVENUE SHARING PROGRAM THIS AGREEMENT is entered into by and between the South Suburban Mayors and Managers Association (Association ") and the City of Calumet City ( "Calumet City "). This Agreement has been duly executed and adopted pursuant to the requirements of the parties' respective corporate authorities or boards. The parties have executed this Agreement pursuant to its terms on this IC— day of :pA ii\jlK�A ,199t . R E C I T A L S A. Association is a not - for - profit corporation, many of the members of which are units of local government, established to aid and assist its member municipalities in the performance of their governmental functions. B. Calumet City is a municipal corporation of the State of Illinois and is a home rule unit of local government pursuant to the provisions of Article VII, Section 6 of the Illinois Constitu- tion. C. This Agreement is entered into by the Association and Calumet City pursuant to the powers of a home rule unit and the authority granted by the Intergovernmental Cooperation Provision of the Illinois Constitution (Article VII, Section 10 of the Illinois Constitution), and Section 13(e) of the Riverboat Gambling Act (230 1 ILCS 10 /13(e)) and any other applicable legislation concerning casinos and other similar gaming establishments. D. Calumet City is seeking approval from the Illinois General Assembly and the Governor of the State of Illinois of legislation which will permit a casino to be located within the Calumet City for Calumet City to be the location of the home dock of a riverboat casino (the "Casino "). E. If the Casino is located within Calumet City, it is anticipated that Calumet City will receive revenues (the "Calumet City Gaming Tax Revenues ") either from a portion of the taxes levied by the State of Illinois (for example taxes on admissions to the Casino and on the adjusted gross receipts of gambling games) and /or from a local gaming tax on the revenues generated from gambling that occurs in the Casino and /or admissions to the Casino. F. Calumet City is willing to share the Calumet City Gaming Tax Revenues with other cities, villages and incorporated towns located in Cook County, other than the Cities of Chicago and Elgin, as provided in this Agreement (the "Suburban Share "). G. Association is willing to administer the distribution of the Suburban Share of Calumet City Gaming Tax Revenues in accor- dance with the terms and conditions set forth in this Agreement to those municipalities located wholly or partially within Cook County (other than the Cities of Chicago and Elgin) which enter into an agreement to receive part of the Suburban Share (the "Participating Cook County Suburbs "). 2 H. Calumet City is willing to have Association administer the distribution of the Suburban Share to the Participating Cook County Suburbs in accordance with the terms and conditions set forth in this Agreement. NOW, THEREFORE, in consideration of the mutual covenants set forth below, Calumet City and the Association agree, as follows: 1. DEFINITIONS. For the purpose of this Agreement, each of the following words and phrases shall have the meaning set forth below unless the context clearly indicates a different meaning: 1.1 "Casino" shall mean any casino to be located within the Calumet City or any riverboat casino for which Calumet City is to be the location of the home dock. 1.2 "Calumet City Gaming Tax Revenues" shall mean any revenues Calumet City will receive either from a portion of the taxes levied by the State and /or from a local gaming tax on the revenues generated from gambling that occurs in the Casino and /or admissions to the Casino, other than revenues from Calumet City's general amusement tax. 1.3 "Suburban Share" and "Suburban Share of Calumet City Gaming Tax Revenues" shall mean the Calumet City Gaming Tax Revenues which Calumet City Calumet City will share, as set forth in Section 2 of this Agreement, with other cities, villages and incorporated towns located in Cook County, not including the Cities of Chicago and Elgin. 3 1.4 "Participating Cook County Suburbs" shall mean those municipalities located wholly or partially within Cook County which enter into an agreement to receive a part of the Suburban Share of the Calumet City Gaming Tax Revenues and which are otherwise eligible under this Agreement. 1.5 "Term Year" shall mean each one year period starting on the day of the year the Term of this Agreement begins as set forth in Section 10. 2. ALLOCATION OF Calumet City GAMING TAX REVENUES AND IMPOSITION OF TAX. The Calumet City Gaming Tax Revenue shall be allocated to the Suburban Share during the term of this Agreement except as follows: 2.1. Calumet City shall retain the first Three Million Dollars ($3,000,000.00) of the Calumet City Gaming Tax Revenues in each of the first ten (10) Term Years only. 2.2 During the first ten (10) Term Years, Calumet City shall additionally retain 20% of the sum of the Calumet City Gaming Tax Revenues received in each Term Year in excess of Three Million Dollars ($3,000,000.00). 2.3 After the first ten (10) years, Calumet City shall retain only 20% of the Calumet City Gaming Tax Revenues. 3. DISTRIBUTION OF SUBURBAN SHARE OF CALUMET CITY GAMING TAX REVENUES. 3.1 Unless prohibited by State law, Calumet City shall pay the Suburban Share of Calumet City Gaming Revenues to the Associa- 4 tion or to a depository designated by the Association. Calumet City shall pay the Suburban Share of Calumet City Gaming Tax Revenues to the Association or the designated depository within sixty (60) days after the Calumet City Gaming Tax Revenues are received by Calumet City. 3.2 The Association shall be responsible for distributing to each of the Participating Cook County Suburbs, the suburbs' allocated portion of the Suburban Share of the Calumet City Gaming Tax Revenues. The Association shall distribute to each Participat- ing Cook County Suburb, its allocated portion of the Suburban Share. of Calumet City Gaming Tax Revenues within ninety (90) days after Calumet City pays the Suburban Share of Calumet City Gaming Tax Revenues to the Association or its designated depositary. The Association may enter into agreements with other organizations whose membership includes municipalities which are located wholly or partially within Cook County, (the "Other Municipal Organiza- tions"), pursuant to which the Other Municipal Organizations shall distribute or assist in the distribution of some or all of the Suburban Share of Calumet City Gaming Tax Revenues to their member Participating Cook County Suburbs. The terms and provisions of any such agreement with one or more of the Other Municipal Organiza- tions shall be subject to the approval of Calumet City, which approval shall not be unreasonably withheld. 3.3 The Association and any of the Other Municipal Organiza- tions involved in the distribution of the Suburban Share of Calumet City Gaming Tax Revenues to the Participating Cook County Suburbs 5 may, between themselves, retain an amount totalling not more than two percent (2 %) of the Suburban Share of the Calumet City Gaming Tax Revenues to cover the costs incurred in administering the distribution of the Suburban Share of Calumet City Gaming Tax Revenues to the Participating Cook County Suburbs. Except as provided in this Agreement, the Association and the Other Municipal Organizations shall not retain any portion of the Suburban Share of the Calumet City Gaming Tax Revenues without the consent of Calumet City. 3.4 The Suburban Share of the Calumet City Gaming Tax Revenues shall be allocated to each of the Participating Cook County Suburbs as follows: (A) Fifty percent (50 %) of the total Suburban Share of the Calumet City Gaming Tax Revenues will be distributed on a flat rate basis (the "Flat Rate Allocation "). The other fifty percent (50 %) will be distributed on a per capita basis, based on each Participating Cook County Suburb's population (the "Per Capita Allocation "). (B) The amount of the flat Rate Allocation to be distributed to each Participating Cook County Suburb shall be determined, as follows: (i) A number (the "Flat Rate Allocation Factor ") shall be calculated for each Participating Cook County Suburb by dividing the percentage of the Suburb's population which is located within Cook County by one hundred percent (100 %), so that a suburb total- ly within Cook County would have a Flat Rate Allo- cation Factor of 1 and a suburb which is seventy percent (70 %) of its population in Cook County would have a Flat Rate Allocation Factor of sev- enth- tenths (.7); 6 (ii) The Flat Rate Allocation Factor for each of the Participating Cook County Suburbs shall be added together to arrive at the Total Flat Rate Alloca- tion Factor; (iii) The amount of the Flat Rate Allocation shall then be divided by the Total Flat Rate Allocation Factor to arrive at the Flat Rate Full Allocation Amount; and (iv) The share of the Flat Rate Allocation Amount which each Participating Cook County Suburb is entitled to receive would then be determined by multiplying the Flat Rate Full Allocation Amount by the Suburb's Flat Rate Allocation Factor. Exhibit A to this Agreement is an illustration of how the Flat Rate Allocation is to be distributed. The amount of the Per Capita Allocation Amount to be distributed to each Participating Cook County Suburb shall be determined, as follows: (i) The population of each Participating Cook County Suburb which resides within Cook County shall be calculated and then added together to arrive at the "Total Population of the Participating Suburbs "; (ii) The Per Capita Amount would then be divided by the Total Population of the Participating Suburbs to arrive at the Per Capita Distribution Factor; and (iii) The population of each Participating Cook County Suburb would then be multiplied by the Per Capita Distribution Factor to arrive at the amount of the Per Capita Allocation Amount which the suburb would receive. Exhibit B to this Agreement is an illus- tration of how the Per Capita Allocation Amount is to be distributed. 3.5 For purposes of calculating each Participating Cook County Suburb's share of the Flat Rate Allocation and the Per Capita Allocation, the total population of each Participating Cook County Suburb and the percentage of population of each Participat- ing Cook County Suburb residing in Cook County will be based on the 7 most recent decennial census data as available from the Northeast- ern Illinois Planning Commission. 4. ELIGIBILITY REQUIREMENTS. A municipality shall not be eligible to receive any part of the Suburban Share of the Calumet City Gaming Tax Revenues unless it meets each of the following requirements: 4.1 The municipality must be a city, village, or incorporated town with a total population of less than 1,000,000, not including the City of Elgin. 4.2 The territory within the municipality's corporate limits must be located either entirely or partially in Cook County. 4.3 As of the date of this Agreement, the municipality must not have located within its corporate limits a casino or other gaming establishment and also must not be the site of the home dock of a riverboat on which gambling occurs, unless the municipality does not receive a share of any State or local tax which may be levied on the revenues of, or admissions to, the casino or riverboat. For purposes of this Agreement, horse racing tracks and off -track betting facilities for the placing of bets on horse races are not gaming establishments unless gambling other than betting on horse racing occurs at such facilities. 4.4 The municipality must not receive or otherwise share in the distribution of tax revenues that are generated from taxes levied on admissions to, revenues of, or any other operations of a casino, riverboat or other gaming establishment unless all cities, 8 villages or incorporated towns located in Cook County with a population'of less than 1,000,000, with the exception of the City of Elgin, are eligible to receive a share of such tax revenue on the same basis as the municipality. 4.5 The municipality must execute an agreement which provides: (i) That the municipality shall provide the support specified in Section 5 of this Agreement; and (ii) That the municipality shall indemnify and hold the Association and Calumet City harmless from all costs, expenses, fees (including but not limited to reasonable attorney's fees), and liabilities in any manner related to this Agreement, including without limitation, in connection with the collection, distribution, expenditure or other use of any revenues which the municipality may receive from the Suburban Share of the Calumet City Gaming Tax Revenues and with regard to any other actions it takes or omissions it may make in connection with the administration and implementation of any agree- ment which the municipality signs in connection with its receipt of a portion of the Suburban Share of the Calumet City Gaming Tax Revenues; and (iii) The municipality must further agree that if it is afforded and accepts the opportunity to be the home dock of a riverboat or the home of a casino or other gaming facility it will share its gaming tax revenue in a manner substantially similar to the manner in which Calumet City has agreed to share its revenue in this Agreement; and (iv) Such other requirements deemed necessary or desir- able by the Association. The form of the agreement shall be subject to the approval of Calumet City, which approval shall not be unreasonably withheld. 5. SUBURBAN SUPPORT. The Association and any Other Municipal Organization which shall participate in the distribution of the Suburban Share of the 9 Calumet City Gaming Tax Revenues shall take reasonable steps, as requested by Calumet City, to support Calumet City's efforts to obtain approval of legislation which will authorize the Casino and thereafter support the City's efforts to obtain any and all administrative and other approvals which may be necessary in order for the Casino to obtain the licenses and approvals required in order for the Casino to operate. Each Participating Cook County Suburb shall, as a condition to its right to receive a portion of the Suburban Share of the Calumet City Gaming Tax Revenues, take reasonable steps as requested by Calumet City or the Association to support Calumet City's efforts to obtain approval of legislation which will authorize the Casino to be located within Calumet City and thereafter support Calumet City's efforts to obtain any and all administrative and other approvals which may be necessary in order for the Casino to obtain the licenses and approvals required in order for the Casino to operate. No Participating Cook County Suburb shall support any municipality in its bid for a riverboat., a casino or any other gaming facility unless that municipality agrees to share its gaming tax revenue with the Cook County Suburbs in a manner substantially similar to the manner in which Calumet City has agreed to share its revenue in this Agreement. 6. CALUMET CITY'S RIGHT TO TERMINATE. 6.1 Calumet City shall have the right to terminate this Agreement in the event another casino or other gaming establishment 10 is located within Suburban Cook County or has its home dock within Suburban Cook County from which a municipality other than the Cities of Chicago and Elgin receive revenue from a State or local tax which is levied on admissions, gross gambling revenues or other gaming operations of the casino unless such municipality agrees to distribute the revenue it receives from such taxes in a manner substantially similar to that established under this Agreement. In order to exercise its right to terminate this Agreement, Calumet City must give written notice to the Association within one (1) year of the first day of gaming operations of the first casino located in Suburban Cook County which does not distribute revenue from a State or local tax which is levied on admissions, gross revenues or other gaming operations in a percentage similar to that levied pursuant to this Agreement. Nonetheless, Calumet City shall continue to pay all monies required under Section 2 of this Agreement for a period of at least ten (10) Term Years and in addition shall make the payments provided for in Section 6.2. 6.2 If Calumet City terminates this Agreement pursuant to Section 6.1, then Calumet City shall pay the Association, for distribution to the Participating Cook County Suburbs, a total of Twenty -Four Million Dollars ($24,000,000.00) out of the Calumet City Gaming Tax Revenues by paying to the Association 8096- of the Calumet City Gaming Tax Revenues beginning on the date Calumet City ceases to be obligated to make payments pursuant to Section 2 of this Agreement. Any payments made to the Association pursuant to this Section 6.2 shall be made as provided in Section 3.1 and shall 11 be distributed by the Association to Participating Cook County Suburbs in accordance with Section 3.2 through 3.5 of this Agreement. 7. COOPERATION. The Association hereby agrees that it shall oppose the establishment of any other similar casino or gaming establishment in suburban Cook County, unless the unit of local government in whose jurisdiction said casino is established agrees to share revenue in a manner substantially similar to that established under this Agreement. 12 8. INDEMNIFICATION. The Association shall indemnify and hold Calumet City, its officers, agents and employees harmless from any and all claims, liabilities, actions, costs and expenses including, but not limited to, reasonable attorneys' fees, which may arise directly, or indirectly, from the Association's distribution of the Suburban Share of the Calumet City Gaming Tax Revenues or from the Associ- ation's performance of, or failure to perform, its obligations under this Agreement. 9. WORKING NATURE OF AGREEMENT. Calumet City and the Association each acknowledge the working nature of this Agreement and each party agrees to cooperate and consult with the other party in an effort to expeditiously and amicably resolve any unforeseen difficulties or problems not covered by this Agreement. 10. TERM. This Agreement shall have a term of twenty -five (25) years beginning the first day of the calendar month after the date the Casino is first opened to the public and shall continue in force on a year -to -year basis thereafter unless terminated by either party by the giving of-written notice to the other party not less than 120 days prior to the date the termination is to be effective or unless terminated by Calumet City in accordance with Section 6.1. 13 11. ASSIGNMENT. Except as provided in this Agreement, neither the Association nor Calumet City shall assign this Agreement or any of their rights or obligations under this Agreement without the prior written consent of the other party. 12. NON - WAIVER. The failure of Calumet City or the Association to insist on the other party's strict compliance with the terms and conditions contained in this Agreement shall not constitute a waiver of any right to insist that the other party in the future strictly comply with any and all of the terms and conditions contained n this Agreement and to enforce such compliance by any authorized remedy. 13. GOVERNING LAW. This Agreement shall be construed in accordance with the laws of the State of Illinois. 14. NOTICES. All notices required or permitted under this Agreement shall be made in writing and shall be deemed given or delivered when received or when deposited in the United States Mail by registered or certified mail, return receipt requested, postage prepaid and addressed, as follows: 14 IF TO CALUMET CITY: City of Calumet City 204 Pulaski Road P.O. Box 1519 , Calumet City, Illinois 60409 -1519 Attn: Mayor Jerry P. Genova IF TO THE ASSOCIATION: South Suburban Mayors and Managers Association 1904 West 174th Street East Hazel Crest, Illinois 60429 Attn: Ms. Beth Ruyle 15. BINDING EFFECT. This Agreement shall be binding upon and insure to the benefit of the parties, their successors and assigns, subject to the provisions in Section 11. 16. MODIFICATIONS AND AMENDMENT. This Agreement may be modified or amended only by a written instrument signed by both Calumet City and the Association. 17. CAPTIONS. The captions used in this Agreement are for the convenience of the parties only and shall not affect the meaning of any of the provisions of this Agreement or be deemed a part of this Agreement. 18. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement of the parties and supersedes all previous communications, representations or agreements, either verbal or written, between the parties. 15 19. SEVERABILITY. The provisions of this Agreement are severable. In the event that any section, paragraph, sentence, clause or phrase in this Agreement is found or declared by a final judgment of a court which has jurisdiction over Calumet City and the Association to be invalid or unenforceable, such finding or declaration shall not affect the validity or enforceability of any other provisions or part thereof and any provision not held invalid or unenforceable shall continue in full force and effect unless such invalidity or unenforceability renders this Agreement meaningless or grossly inequitable. 20. COMPLIANCE WITH LAWS. Calumet City and the Association comply with all applicable laws, rules and regulations in the administration and implementa- tion of this Agreement. 21. NO LIMITATION OF OTHER POWERS AND AUTHORITY. Except as specifically provided in this Agreement, the provisions of this Agreement shall not limit or otherwise affect any power or authority which either Calumet City or the Association have pursuant to the Constitution and laws of the United States and the State of Illinois. 16 22. AUTHORIZATION TO EXECUTE AGREEMENT. The person signing this Agreement on behalf of the Association represents and warrants that he has been duly authorized to sign the Agreement on the Association's behalf and by his signature to bind it to the terms and conditions contained in this Agreement. The person signing this Agreement on behalf of Calumet City represents and warrants that he has been duly authorized to sign this Agreement on behalf of Calumet City and, by his signature, to bind Calumet City to the terms and conditions contained in this Agreement. THIS AGREEMENT made as of the date first set forth above. THE SOUTH SUBURBAN MAYORS AND MANAGERS ASSOCIATION By: eo As ciation aid Executive Director C: \W P5I \SSM MA\WCMCDIST.0021I5944I9.W0 17 CITY OF CALUMET CITY Y atIt& Michelle Markiewi City Clerk i cadk&i. ualkinbush, EXHIBIT A Illustration of Distribution of the Flat Rate Allocation Assume the amount of the Flat Rate Allocation is $100,000 and there are five Participating Cook County Suburbs, A, B, C, D and E, with Suburbs A, B and C being located entirely within Cook County and Suburb D having fifty percent (500) of its population locate din Cook County and Suburb E having twenty -five percent (150) of its population located within Cook County. Suburbs A, B and C would each have a Flat Rate Allocation Factor of 1, Suburb D would have a Flat Rate Allocation Factor of .5 and Suburb E would have a Flat Rate Allocation Factor of .25. The Total Flat Rate Allocation Factor would be 3.75 (1 +1 +1 +.5 +.25 = 3.75). The Flat Rate Full Allocation Amount would be $100,000 divided by 3.75 or $26,666.67. Suburbs A, B and C would then each receive $26,666.67 from the total $200,000 Flat Rate Allocation because they each have a Flat Rate Allocation Factor of 1. Suburb D would receive $13,333.34 ` because it has a Flat Rate Allocation Factor of .5. Suburb E would receive $6,666.67 because it has a Flat Rate Allocation Factor of .25. 18 Mayor Richard A. Kwasneski Village Clerk Charlene M. Smollen Administrator Steven A. Jones LEMONT Village of Faith 418 Main Street • Lemont, IL 60439 -3788 (708) 257 -1550 Fax (708) 257-1598 MEMORANDUM TO: Mayor & Village Board FROM: Steve Jones, Village Administrator SUBJECT: Calumet City Gambling Boat Proposal DATE: February 13, 1996 Trustees Barbara Buschman Alice Chin Keith Latz Connie Markiewicz Rick Rimbo Ralph Schobert The South Suburban Mayors & Managers Association is in the process of contacting Cook County suburbs to indicate that a revenue sharing arrangement is being proposed for a potential riverboat within Calumet City. As with the previously enacted "Rosemont" ordinance, the terms and conditions of this cost arrangement are not negotiable. We can approve it or reject it, but we cannot change it. The distribution formula of the ordinance is identical to the previously enacted Rosemont ordinance. It should be noted that the riverboat's gross revenue estimates from this particular location are lower than what would be generated from a Rosemont location. The agreement summary and all applicable documentation is attached for your review. If the Board concurs with this request, we will schedule the ordinance for adoption at the February 26 Village Board meeting.