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HomeMy WebLinkAboutORDINANCE - 2970 - 1/13/2004 - SOUTH SUBURBAN AIRPORTORDINANCE NO. 2970 AN ORDINANCE AUTHORIZING THE MAYOR AND VILLAGE CLERK TO EXECUTE THE AMENDED AND RESTATED INTERGOVERNMENTAL AGREEMENT (ORD. NOS. 2951 and 2963) PROVIDING FOR THE PLANNING, DEVELOPMENT AND OPERATION OF THE SOUTH SUBURBAN AIRPORT AND THE CREATION OF THE SOUTH SUBURBAN AIRPORT COMMISSION NOW, THEREFORE, BE IT ORDAINED by the Mayor and Board of Trustees of the Village of Elk Grove Village, Counties of Cook and DuPage, State of Illinois as follows: Section 1: That the Mayor be and is hereby authorized to sign the attached documents marked. - The Amended and Restated Intergovernmental Agreement Providing for the Planning, Development and Operation of the South Suburban Airport and the Creation of the South Suburban Airport Commission a copy (Exhibit A) of which is attached hereto and made a part hereof as if fully set forth and the Village Clerk is authorized to attest said documents upon the signature of the Mayor of Elk Grove Village. Section 2: That the Village Clerk is hereby authorized to publish this Ordinance in pamphlet form. Section 3: That this Ordinance shall be in full force and effect from and after its passage and approval according to law. VOTE. AYES: 6 NAYS: 0 ABSENT: 0 PASSED this 13th day of January, 2004. APPROVED this 1P day of January, 2004. APPROVED: Craig B. Johnson. Mayor ATTEST: Ann 1. Walsh, Village Clerk 0msomh.m.m,n04-,,n &dd— PUBLISHED this 16"' day of January 2004 in pamphlet form. ExlAbit A Ordinance No. 2970 January 13, 2004 THE AMENDED AND RESTATED INTERGOVERNMENTAL AGREEMENT PROVIDING FOR THE PLANNING, DEVELOPMENT AND OPERATION OF THE SOUTH SUBURBAN AIRPORT AND THE CREATION OF THE SOUTH SUBURBAN AIRPORT COMMISSION This Amended and Restated Intergovernmental Agreement (the "Agreement") is dated as of January , 2004. The Agreement is entered into by and between each of the following units of local government (together with such additional units of local government as may, from time to time, be admitted into membership as "Subsequent Members" as hereinafter defined and provided), (hereinafter individually referred to as "Member" and collectively as "Members"): Founding Members: University Park Park Forest Predevelopment Supporting Members: Village of Bensenville Elk Grove Village RECITALS WHEREAS, each Member which is a city or a village is an Illinois municipal corporation organized and existing under the Illinois Municipal Code (65 ILCS 5/1-1-1, et seq.) and is a body politic and corporate (65 ILCS 5/2-3-8); and WHEREAS, the Village of Park Forest and the Village of University Park are sometimes hereinafter additionally referred to individually as a "Founding Member" and collectively as the "Founding Members"; and WHEREAS, the Village of Bensenville and the Village of Elk Grove are sometimes hereinafter additionally referred to individually as a "Predevelopment Supporting Member" and collectively as the "Predevelopment Supporting Members"; and WHEREAS, each Member is a "unit of local government" as that term is defined in Article VII, Section 1, of the Constitution of Illinois, 1970. Additionally, the following Members are "home rule units" of local government as provided for in Article VII, Section 6 of the Constitution of Illinois, 1970, and each such home rule unit, in entering into this Agreement, has made an express legislative finding that the subject matter of this Agreement pertains to its government and affairs and that it is the intent of each such home rule unit to share its home rule authority to the extent permitted by law: Village of Park Forest Village of University Park Elk Grove Village WHEREAS, the Members intend to confer upon the Commission (as hereinafter defined and created) all powers recognized by the Constitution of Illinois, 1970, Article VII, Section 10, which authorizes units of local government, including the Members, to contract or otherwise associate among themselves, and to exercise, combine or transfer any power or function in any manner not prohibited by law or by ordinance. Said Section further permits units of local government, including the Members, to contract and otherwise associate with individuals, associations and corporations in any manner not prohibited by law or ordinance; and WHEREAS, the Intergovernmental Cooperation Act (5 ILCS 220/1, et seq.) defines "public agency" to include, among other entities, units of local government as defined in the Illinois Constitution of 1970, which includes the Members, and provides that any public agency may exercise, combine, transfer and enjoy jointly with any other public agency, including other units of local government, any power, privilege, function, or authority which may be exercised by a public agency individually (5 ILCS 220/3); and WHEREAS, the Intergovernmental Cooperation Act further specifically provides that: 2 "Any public agency entering into an agreement pursuant to this act may appropriate funds and may sell, lease, give, authorize the receipt of grants, or otherwise supply the administrative joint board or other legal or administrative entity created to operate the joint or cooperative undertaking by such personnel or services therefore as may be within its legal power to furnish" (5 ILCS 220/4); and WHEREAS, the Intergovernmental Cooperation Act further specifically provides that: "(A)ny one or more public agencies may contract with any one or more other public agencies to perform any governmental service, activity or undertaking or to combine, transfer, or exercise any powers, functions, privileges, or authority which any of the public agencies entering into the contract is authorized by law to perform, provided that such contract shall be approved by the governing bodies of each party to the contract and except where specifically and expressly prohibited by law. Such contract shall set forth fully the purposes, powers, rights, objectives and responsibilities of the contracting parties."(5 ILCS 22015); and WHEREAS, the corporate authorities of each Member which is a city or village organized and existing under the Illinois Municipal Code is further expressly authorized to jointly exercise with other municipal corporations, governmental subdivisions or districts (including the other Members) the powers conferred upon such municipalities in the Illinois Municipal Code (65 ILCS 5/1-1-5); and WHEREAS, under the Constitution of Illinois, 1970, and under various statutes enacted thereunder, each Member enjoys numerous powers and authorities, enumerated and implied, which enable, permit and authorize it to cooperate in the development, construction and operation of airports, a partial list of such powers and authorities being hereinafter set forth in Article Six hereof; and WHEREAS, in addition to the powers specified herein, each of the Members may have additional enumerated and implied powers which would aid in the implementation of the purposes of this Agreement. Each Member agrees that in addition to the powers identified in Article Six hereof, each Member further agrees to exercise, combine, transfer and jointly enjoy 3 such additional enumerated and implied powers as may otherwise exist which might, in any way, assist in obtaining and securing the benefits and purposes of this Agreement, and WHEREAS, 620 ILCS 20/0.01 et seq. (the "Joint Airports Act") provides that any number of municipalities (and/or counties) may enter into an agreement with any one or more other municipalities under the Intergovernmental Cooperation Act for the purpose of jointly establishing and operating an airport and its facilities; and WHEREAS, the Joint Airports Act further provides that: "The Commission of any airport established under the `Intergovernmental Cooperation Act' shall have the authority to carry out any and all statutory powers and duties or other responsibilities vested in the corporate authorities of the counties or the municipalities entering into an Intergovernmental Agreement to establish and operate an airport and its facilities under this Act." (620 ILCS 20/4). WHEREAS, the Joint Airports Act further provides that the terms of such intergovernmental agreement shall provide for the creation of a "Joint Airport Commission" for the purpose of "establishing and operating the airport and its facilities" and, in creating said Commission, may provide for "the number and manner of the appointment of members of the Commission, residence requirements, term of office, compensation, resignation or removal from office, filling of vacancies, election of officers and such other functions, powers and duties of membership as are reasonable and necessary to establish and operate an airport and its facilities." (620 ILCS 20/2); and WHEREAS, the Predevelopment Supporting Members have heretofore entered into an "Intergovernmental Pre -Development Services Agreement" entered into as of July 7, 2002, as amended, by and among the Predevelopment Supporting Members and LCOR Holdings LLC and SNC-Lavalin (respectively, the "Pre -Development Services Agreement" and the "Consultants"); and 0 WHEREAS, the purpose of the Pre -Development Services Agreement is to retain the services of the "Consultants," as hereinafter defined, for the purpose of performing certain due diligence and feasibility studies, as therein specified, for the planning, development, construction and operation of a regional commercial airport in the south suburban region as hereinafter defined; and WHEREAS, the Members have determined that the development of such an airport will enhance the air traffic system serving the greater Chicago metropolitan area benefiting all of the residents and businesses located therein, providing jobs and promoting the development of business and industry in the greater south suburban area while relieving any delays being experienced at other area airports; and WHEREAS, the Members have created, and by the adoption and execution of this Amended and Restated Agreement, confirm the creation of the Commission in conformance with the Joint Airports Act and further confirm that they have transferred to, and have agreed to exercise, combine and enjoy jointly with, the Commission the powers referenced in the foregoing recitals as well as those powers which are further enumerated in Article Six hereof, together with such other additional enumerated and implied powers as they may presently have or hereafter acquire to develop, own and operate a south suburban regional commercial airport, and, in furtherance thereof, the Predevelopment Supporting Members wish to delegate, transfer and assign their rights and responsibilities under the Pre -Development Services Agreement to the Commission as hereinafter more fully set forth; and WHEREAS, the Founding Members and the Predevelopment Supporting Members have heretofore entered into the "Intergovernmental Agreement Providing For The Planning, Development And Operation Of The South Suburban Airport And The Creation Of The South 5 Suburban Airport Commission" dated as of October 20, 2003, and now find it necessary and appropriate to modify said agreement through the adoption of this amendment and restatement thereof: NOW, THEREFORE, in consideration of the foregoing recitals, the mutual covenants and agreements hereinafter set forth, and other good and valuable consideration, the adequacy and sufficiency of which is hereby acknowledged, the Members do hereby agree as follows: ARTICLE ONE RECITALS The preambles set forth above are hereby incorporated herein as substantive provisions of this Agreement as if they were fully set out in this Article One. ARTICLE TWO PURPOSE 2.01. The Members agree that the purpose of this Agreement is to make provision for the planning, development, funding, construction and operation of a regional commercial airport with passenger and cargo facilities to be known as the "South Suburban Airport" to meet the future public demand for additional airport facilities to serve the south suburban region and to expand the Chicago region's aviation capacity in an efficient, cost-effective, expeditious and environmentally sound basis. 2.02. The Members have heretofore created a Joint Airport Commission as authorized in 620 ILCS 20/2 which is now, and shall continue to be known as, the "South Suburban Airport Commission" (hereinabove and hereinafter sometimes referred to as the "Commission"). The Commission has been established for the purpose of planning, developing, funding, constructing and operating the South Suburban Airport and shall continue to further exercise such powers and authorities as the Members may presently enjoy, or such powers and authorities as may be 6 enjoyed in the future, specifically including, but not by way of limitation, the powers and authorities set forth in Article Six hereof, and the Members hereby transfer and delegate such powers and authorities to the Commission, and its Board of Directors (as hereinafter defined and provided), for the purposes herein identified. ARTICLE THREE COOPERATION, EXCLUSNITY AND CONFIDENTIALITY 3.01. Each Member covenants and promises to each other Member that it shall diligently, in good faith and in the exercise of its best efforts, take all actions necessary for the planning, development, creation, construction, and funding of the South Suburban Airport and, further, provide for the operation, maintenance, expansion and further development of said Airport through participation in the South Suburban Airport Commission all as more fully provided for herein. Pursuant to 5 ILCS 220/4, each Member may provide personnel or services to the Commission as may be within its legal power to furnish. Except to the extent a Member has expressly agreed in writing to pledge its full faith and credit with respect to the planning, development, funding, construction, and operation of the Airport, under no circumstances whatsoever shall the individual Members (as distinguished from the Commission) be held liable, or otherwise be found obligated, to pledge their full faith credit, be compelled to levy taxes, or be required to pay, encumber or expend any of their financial resources, monies, accounts or deposits in order to assure, carry -out or achieve the planning, development, funding, construction, and operation of the Airport, and no such relief shall be claimed or sought as against the individual Members (as distinguished from the Commission) from other Members or from third -parties. 3.02. Each Member covenants and promises to take no action which is inconsistent with, or fail to take action which is consistent with this Agreement as originally written or as validly amended. 3.03. Each Member covenants and promises to work exclusively with each other Member and shall not work with or negotiate with any other private or public entity other than through the Commission in the planning, development, creation, funding, operation, and maintenance of the South Suburban Airport (including but not limited to the the planning, development, creation, funding, operation, and maintenance of any other airport related commission, or another airport within the radius of 75 miles of the South Suburban Airport), and shall not take any action or fail to take any such action that could reasonably be expected to create any conflict of interest that would prevent or materially affect or impair the ability of the Members to develop the South Suburban Airport pursuant to this Agreement. This covenant shall not be deemed to apply to any general aviation airport (an airport that does not hold a certificate issued by the Federal Aviation Administration under Part 139 of the Federal Aviation Regulations) located within the counties of Will, Kankakee and Cook as the same may exist as of the date hereof and as the same may be configured as of the date hereof. 3.04. Except as otherwise expressly provided herein, the parties shall maintain the results of any and all studies, inquiries, information, documents and materials provided by or on behalf of any party to this Agreement relating to the subject matter of this Agreement and the development of the South Suburban Airport (collectively "Confidential Information") strictly confidential, except as required by law, provided that the parties may disclose such Confidential Information with the express written consent of the other parties. ARTICLE FOUR DEFINITIONS 8 As used herein, the following terms shall have the meanings ascribed to them in this Article Four: 4.01. "Airport" or "South Suburban Airport" shall mean the regional commercial airport serving the south suburban region of Chicago, Illinois, and generally located within the Townships of Monee, Crete, Will and Washington in Eastern Will County, Illinois, created pursuant to the provisions of this Agreement. This term shall include landing fields, landing strips, hangars, terminal buildings and other structures and facilities related thereto. 4.02. "Airport Development Build -out and Enforcement Provisions" shall have the meaning set forth in Section 5.12.01 (b) (3). 4.03. "Alternate Commissioner" or "Alternate" shall mean a person appointed by a Member to serve on the Commission in the capacity of Alternate Commissioner as herein provided. 4.04 "Architectural Services" shall mean any professional service as defined in Section_ 5 of the Illinois Architectural Practice Act of 1989. 4.05. `Board" or "Board of Directors" shall mean the Board of Directors constituted pursuant to Section 5.06 hereof. 4.06. "By-laws" shall mean the By-laws attached hereto and incorporated herein as Exhibit "B", together with any subsequent amendments thereto adopted in conformance with the restrictions and procedures set forth herein. 4.07. "Commissioner" shall mean a person appointed by a Member to serve on the Commission in the capacity of a Commissioner as herein provided. 4.08. "Construction Services" shall mean labor and/or material services in furtherance of the construction and development of the Airport. 4.09. "Consultants" shall mean LCOR Holdings LLC and SNC-Lavalin. 4.10. "Development Services Agreement" means the Agreement between the Commission and a private developer(s) for the planning, development, construction, financing, leasing, operation and maintenance of the South Suburban Airport that will be prepared and executed as part of the work to be performed by the parties under this Agreement. 4.11. "Director" or "Directors" shall mean, as the context requires, one or more Commissioners or Alternate Commissioners, or a Director appointed by the Governor of the State of Illinois, or a Director appointed by the Kankakee River Valley Area Airport Authority, elected or appointed to the Board of Directors pursuant to the provisions of 9 Section 5.06 hereof. 4.12. "Engineering Services" shall mean any professional services as defined in Section 4 of the Professional Engineering Act of 1989. 4.13. "Founding Member" or "Founding Members" shall mean one or both of the following Members, as the context may provide: the Village of Park Forest or the Village of University Park. 4.14. "Initial Phase" shall have the meaning set forth in Section 5.09. 4.15. "Land Surveying Services" shall mean any professional service as defined in Section 5 of the Illinois Professional Land Surveyor Act of 1989. 4.16. "Legal Services" shall mean any professional services provided or to be provided by one or more attorneys licensed to practice law in the State of Illinois or before the bar of any other state or the District of Columbia. 4.17. "Manager" shall mean a person or firm possessing expertise in the development, construction, operation and management of regional commercial airports and retained or employed by the Commission for the purpose of securing the benefit of such services for the Airport. 4.18. "Management Services" shall mean professional services for the development, construction, operation and management of the Airport. 4.19. "Member" shall mean the Founding Members, the Predevelopment Supporting Members and any Subsequent Member which has executed this Agreement in the manner herein provided, remains in good standing hereunder and has not defaulted in the performance of any duty or responsibility assumed and imposed under the terms hereof. 4.20. "Predevelopment Supporting Member" or "Predevelopment Supporting Members" shall mean one or both of the following Members, as the context may provide: the Village of Bensenville or Elk Grove Village. 4.21. "Predevelopment Supporting Members' Contribution" shall have the meaning set forth in Section 5.12. 4.22. "Pre -Development Services Agreement" shall mean the Intergovernmental Pre - Development Services Agreement effective as of July 7, 2002 , as amended from time to time, by and among the Predevelopment Supporting Members and the Consultants. 4.23. "Services Contract" shall mean any contract, written or oral, entered into by the Commission for the purpose of securing provision of Architectural Services, Land Surveying Services, Engineering Services or Legal Services for the benefit of the 10 Commission or the Airport. 4.24. "South Suburban Airport Commission" or "Commission" shall mean the Commission created pursuant to the terms of this Agreement. 4.25. "Subsequent Member" shall mean a unit of local government which becomes a Member subsequent to the date first referenced above in the manner hereinafter provided. 4.26. "Terminated Member" shall mean any Member which loses its status as such, voluntarily or involuntarily, in the manner and subject to the terms hereinafter provided. 4.27. "Transferred Authority" shall mean the powers, privileges, functions or authorities of each Member hereof transferred and delegated to the Commission pursuant to the terms of this Agreement. 4.28. "Transition Event" or "Transition Events" shall have the meaning set forth in Section 5.12. 4.29. "Transition Period" shall have the meaning set forth in Section 5..12. ARTICLE FIVE THE SOUTH SUBURBAN AIRPORT COMMISSION 5.01. Formation; General. Attached hereto and incorporated herein in Exhibit "A" are the ordinances passed and approved by each of the Members duly authorizing the execution of this Agreement. Each of these ordinances sets forth the agreement of the enacting Member to exercise, combine, transfer, delegate and jointly enjoy to and with the Commission the powers, functions, privileges and authorities set forth in this Agreement and detailed in Article Six hereof. The Commission shall operate on a calendar fiscal year. All meetings of the Commission, its Board of Directors or any Committee thereof, shall be conducted in accordance with the "Open Meetings Act" (5 ILCS 120/1 et seq) and the Commission shall comply with the requirements of the Local Records Act (50 ILCS 205/1 et seq.), the Freedom of Information Act (5 ILCS 140/1.1 et seq.), together with any other applicable law, rule or regulation governing the conduct of business by units of local government in the State of Illinois. 5.02. Membership. The Commission shall consist of Commissioners equal in number to the number of Members. Each Member shall, by a majority vote of its corporate authorities, appoint to the Commission a Commissioner, as well as an Alternate Commissioner who shall be authorized to act in the absence of the Commissioner appointed by such Member. Each Commissioner and each Alternate Commissioner shall reside within the corporate limits of the Member appointing same. Commissioners and Alternate Commissioners may be elected or appointed officers or officials of any of the Members. Subsequent to the execution of this Agreement, and subject to the provisions of Section 5.12 hereof, additional governmental entities may become Members ("Subsequent Members"). The approval of Subsequent Members for membership shall require the vote of a majority of the Commissioners (or, in the absence of any of the Commissioners, their respective Alternate Commissioners) appointed from all of the Members, except that (i) during the Transition Period, as defined in Section 5.12 hereof, any such vote shall include the vote of at least one of the Commissioners (or in the absence of any of such Commissioner, the respective Alternate Commissioner) appointed from either of the Predevelopment Supporting Members, and (ii) after the Transition Period any such vote shall include the vote of at least one of the Commissioners (or in the absence of any of such Commissioner, the respective Alternate Commissioner) appointed from either of the Founding Members. 5.03. Withdrawal and Expulsion of Members. Any Member may withdraw from the Commission upon not less than sixty (60) days prior written notice to the other Members. Upon the vote of not less than 2/3 of the other Members, except that (i) during the Transition Period, 12 any such vote shall be in accordance with the requirements of Section 5.12.02 (1)(B) and (ii) after the Transition Period any such vote shall be in accordance with the requirements of Section 5.12.03 (1) (B), any Member may be expelled from the Commission for cause, i.e., for defaulting in the performance of any duty or responsibility assumed by such Member and imposed under the terms of this Agreement. Whether a Member withdraws or is expelled from the Commission, such Member shall continue to be fully responsible for the performance of any duty or obligation assumed by such Member or imposed on such member under the terms of this Agreement or for any financial obligation incurred by or accruing against that Member under the terms of this Agreement as if it was still a Member of the Commission. Upon the effective date of the withdrawal or expulsion of any Member as herein provided, those persons functioning as the Commissioner or the Alternate Commissioner for such withdrawing or expelled Member shall cease to function in those capacities and shall be conclusively deemed to have automatically vacated their positions as such together with any other office to which they have been elected or appointed with the Commission including their membership on any standing or ad hoc committee created by the Commission or its Board of Directors pursuant to this Agreement or the By-laws of the Commission. Section 5.12 hereof contains specific provisions providing for the voluntary withdrawal of the Predevelopment Supporting Members upon the occurrence of all of the Transition Events and at the conclusion of the Transition Period. 5.04. Term. Each Commissioner, together with the Alternate Commissioner appointed to serve in the absence of such Commissioner, shall serve at the pleasure of the Member appointing same. Except as otherwise provided in the first sentence hereof, Commissioners and their respective Alternate Commissioners shall serve for a concurrent period of four years unless 13 such Commissioner (and/or Alternate) shall resign or be removed as otherwise provided herein or in the By-laws. The terms of Commissioners and Alternate Commissioners shall be staggered so that, as nearly as practicable, the terms of one-half of the Commissioners (and their respective Alternates) shall expire every two years. The Commissioners (and/or their Alternates) shall determine, by lot, which Commissioners (and their respective Alternates) shall serve a term expiring on December 31, 2005 with the remaining Commissioners (and Alternates) serving terms expiring on December 31, 2007. Any person appointed to fill a vacancy created by the resignation or removal of a Commissioner or an Alternate Commissioner shall serve for the unexpired term of the resigned or removed Commissioner or Alternate, as the case may be. Commissioners and Alternate Commissioners may be reappointed by the Member represented by them for successive terms without limitation. There shall be no limitation on the reappointment of the same persons to the positions of Commissioner and Alternate Commissioner and such Commissioners and Alternate Commissioners shall continue to serve after the expiration of their respective terns until their respective successors are appointed as otherwise provided herein or in the By-laws incorporated herein by reference. 5.05 Meetings and Notices. An annual organization meeting of the Commission shall be held in January of each year. The Commission shall thereafter meet as frequently as may be necessary or beneficial to conduct such business as may properly come before the Commission under the terms of this Agreement. Additional meetings of the Commission shall be called by the Chairman, the Board of Directors or by two or more of the Commissioners (or, in the absence of one or more of such Commissioners, their respective Alternate Commissioners). Notice of the required annual meeting and every other additional meeting of the Commission shall be given to each Member and such Member's respective Commissioner and Alternate Commissioner and 14 shall minimally include the date, location, time and agenda for such meeting and shall be delivered in advance of such meetings at such addresses and in a manner as may be provided in the By-laws. All meetings of the Commission shall be called, noticed and conducted in accordance with the requirements of Section 5.01 hereof and the By-laws. 15 5.06. Board of Directors. 5.06.01. Board of Directors- Transition Period. During the Transition Period, at such time as the Commission shall consist of seven or more Members, there shall then be immediately created a Board of Directors of the Commission which shall consist of seven Directors appointed or elected, as the case may be, in the following manner: (i) The two Founding Members shall each appoint a Director from among its respective Commissioners and Alternate Commissioners. (ii) The two Predevelopment Supporting Members shall each appoint a Director from among its respective Commissioners and Alternate Commissioners. (iii) To the extent that one or more of the governmental bodies of (a) Crete, (b) Monee, (c) Peptone, or (d) Beecher, shall become, and remain, Members in good standing of the Commission, those Members shall collectively be entitled to appoint one Director from among the Commissioners and Alternate Commissioners appointed to the Commission by said Members. Should the governmental bodies identified in this subsection (iii) fail to appoint one Director within one month after the formation of the Board of Directors, or should none of the governmental bodies identified in this subsection (iii) become or remain Members in good standing, then, during the Transition Period, the Kankakee River Valley Area Airport Authority ("KRVAAA") shall be entitled to appoint one Director from among the members of the KRVAAA (but KRVAAA shall not be a Member of the Commission). Should the KRVAAA fail to appoint a Director within one month after the date on which the KRVAAA is entitled to appoint a Director, one Director, shall be elected to the Board as provided in Section 5.06.03 16 (iv) To the extent that one or more communities belonging to the South Suburban Mayors and Managers Association ("Association') shall become, and remain, Members in good standing of the Commission (including the communities identified in subpart (iii) hereof), the Association shall be entitled to appoint one Director from among the Commissioners and Alternate Commissioners appointed to the Commission from among such Members. Should the Association fail to appoint a Director within one month after the formation of the Board of Directors or should none of the communities identified in this subsection (iv) become, or remain, Members in good standing then, during the Transition Period, one Director, shall be elected to the Board as provided in Section 5.06.03. (v) The Governor of the State of Illinois shall be entitled to appoint one Director either from among the Commissioners (or Alternate Commissioners) of the Members in good standing (who is not already a Director) or an employee of the State. In the event the Governor fails to appoint a Director within two months of the formation of the Board of Directors as provided in this Section 5.06.01 then, during the Transition Period, one Director shall be elected to the Board as provided in Section 5.06.03. (vi) Those Directors appointed or elected in the manner set forth in subsections (i) through (v) hereof shall function as the Board of Directors until such time as all seven Directors are appointed or elected, as the case may be, as herein provided. 5.06.02 Board of Directors — Post Transition Period. Upon the occurrence of each and every one of the Transition Events and the conclusion of the Transition Period as provided for in Section 5.12 hereof and immediately after the voluntary withdrawal of the Predevelopment Supporting Members in accordance with Section 5.13 hereof after all of the 17 Transition Events have occurred, the Board of Directors shall consist of five Directors appointed or elected, as the case may be, in the following manner: (i) The two Founding Members shall each appoint a Director from among its respective Commissioners and Alternate Commissioners. (ii) To the extent that one or more of the governmental bodies of (a) Crete, (b) Monee, (c) Peotone, or (d) Beecher shall become, and remain, Members in good standing of the Commission, those Members shall collectively be entitled to appoint one Director from among the Commissioners and Alternate Commissioners appointed to the Commission by said Members. Should the governmental bodies identified in this subsection (ii) fail to appoint one Director within one month after the formation of the Board of Directors or should none of the governmental bodies identified in this subsection (ii) become or remain Members in good standing then, after the Transition Period, the KRVAAA shall be entitled to appoint one Director from among the members of the KRVAAA (but KRVAAA shall not be a Member of the Commission). Should the KRVAAA fail to appoint a Director within one month after the date on which the KRVAAA is entitled to appoint a Director, one Director, shall be elected to the Board as provided in Section 5.06.03. (iii) To the extent that one or more governmental bodies belonging to the South Suburban Mayors and Managers Association (the "Association") shall become, and remain, Members in good standing of the Commission (including the governmental bodies identified in subpart (ii) hereof), the Association shall be entitled to appoint one Director from among the Commissioners and Alternate Commissioners appointed to the Commission from among such Member communities. Should the Association fail to appoint a Director within thirty days of 18 the formation of the Board of Directors provided for in this Section 5.06.02, or should none of the governmental bodies identified in this subsection (iii) become or remain Members in good standing, one Director shall then be elected to the Board as provided in Section 5.06.03. (iv) The Governor of the State of Illinois shall be entitled to appoint one Director either from among the Members in good standing (who is not already a Director) or an employee of the State. In the event the Governor fails to appoint a Director within 60 days of the formation of the Board of Directors provided for in this Section 5.06.02, or within the first three months of any calendar year thereafter, one Director shall then be elected to the Board as provided in Section (v) The Board of Directors elected or appointed, as the.case may be, in the manner set forth in subsections (i) through (iv) hereof shall function as the Board of Directors until such time as all five Directors are appointed or elected, as the case may be, as herein provided. 5.06.03 Appointment of Certain Director Vacancies. Should the entities in Section 5.06.01 (iii), (iv) or (v) or Section 5.06.02 (ii), (iii) or (iv) fail to appoint a Director or should none of the communities referenced in Section 5.06.01 (iii) or (iv) or in Section 5.06.02 (ii) or (iii), as the case may be, become or remain Members in good standing, then the Commission shall elect such Director(s) from among Commissioners or Alternate Commissioners that do not already hold Director positions by a majority vote of the Commissioners, or in the absence of any one or more Commissioners, their respective Alternate Commissioners, as evidenced by the adoption of a resolution approving same, provided however that (i) during the Transition Period any such majority vote shall include the vote at least one of the Commissioners, or in the absence of any one of those Commissioners, their respective Alternate Commissioners, appointed from the Predevelopment Supporting Members, and 19 provided further that during the Transition Period in the absence of a majority vote of the Commissioners (or their respective Alternate Commissioners) the affirmative vote of each of the Commissioners (or their respective Alternate Commissioners) appointed by the Founding Members and the Predevelopment Supporting Members shall be sufficient to elect such Director, IMI (ii) after the Transition Period, any such majority vote shall include the vote at least one of the Commissioners, or in the absence of any one of those Commissioners, their respective Alternate Commissioners, appointed from the Founding Members, and provided further that in the absence of a majority vote of the Commissioners (or their respective Alternate Commissioners) the affirmative vote of each of the Commissioners (or their respective Alternate Commissioners) appointed by the Founding Members shall be sufficient to elect such Director. 5.06.04 Board of Directors -Powers. Term and Officers. The Board of Directors composed of the Directors appointed and elected in the manner set forth in this Section 5.06 shall serve and govern the day -today activities of the Commission and shall serve until their successors are appointed or elected as herein provided. The Board of Directors shall have the authority to exercise any and all of the authority conferred on the Commission under Article 6 hereof. Should any Director appointed or elected to the Board resign or otherwise be unable to continue to serve as a Director, that Director's replacement shall be appointed or elected in the same manner and by the same authority or the Governor, as the case may be, as shall have initially appointed the resigning or incapacitated Director. Except for the year in which the post Transition Period Board of Directors is initially formed, during the month of January of each succeeding year, but in each case after the date of the required annual meeting of the Commission as provided in Section 5.05, the Board of 20 Directors shall hold a required annual meeting. Directors, whether appointed or elected, shall serve for a term of one (1) year commencing at the time of their election, or until their respective successor shall be appointed or elected as hereinabove provided. Once formed, the Board of Directors shall, from amongst the Directors appointed or elected thereto, appoint a Chairman, a Vice -Chairman, a Secretary, a Treasurer together with such other officers as the Board (or the Commission by amendment to the By-laws) may, from time to time, provide. The officers so appointed shall simultaneously function as the officers of the Board and of the Commission. The duties and responsibilities of the Commission's officers shall be as provided in the By-laws. In addition, the Board of Directors may appoint an Executive Director who shall serve as the principal administrator of the business of the Commission. The officers and the Executive Director thus elected and appointed shall serve for a term of one (1) year. The Directors and officers of the Commission shall continue to serve after the expiration of their respective terms until their respective successors are elected or appointed as herein otherwise provided or in the By-laws. There shall be no limitation on the reappointment or reelection of the same Commissioner or Alternate Commissioner to the position of Director or, upon the reappointment or reelection of the same as a Director, to the reelection of a Director to the same office previously held by such Director in successive years. The Board of Directors shall call and conduct their meetings and business in all ways consistent with the requirements listed in Section 5.01 hereof. 5.07. Intentionally Omitted. 5.08 Standing and Ad Hoc Committees; Regional Infrastructure Committee. The Board of Directors shall have the power to create such standing and ad hoe committees to assist it in the 21 management of the Commission's business as the Board of Directors may, from time -to -time, deem appropriate or beneficial. Except as otherwise herein provided, the purposes for which such committees may be created, the number and identity of the persons serving on such committees and their terms of office shall be within the sound discretion of the Board of Directors. Such committees shall be established by resolution of the Board of Directors and formally entered into the Board of Directors' records. In a similar manner, the Board of Directors may, in its sound discretion, expand, reduce or eliminate such committees, appoint additional persons to such committees, remove previously appointed persons from such committees as and when the Board of Directors deems such action to be appropriate or beneficial. There shall be created a standing committee of the Board of Directors entitled the "Regional Transportation and Infrastructure Committee" which shall be composed of nine committee members selected by the Board of Directors except that the Board of Directors shall select as the Chairman thereof a Commissioner or Alternate Commissioner appointed from any one of the following communities provided that such community must be a Member in good standing of the Commission: (a) University Park, (b) Crete, (c) Monee, (d) Peotone or (e) Beecher. The members of this committee shall serve at the pleasure of the Board of Directors. This committee shall call and conduct their meetings and business in all ways consistent with the requirements listed in Section 5.01 hereof. This committee shall be charged with the responsibility of assembling information and making reports and recommendations to the Board of Directors on issues related to the location, development, construction and financing of transportation, utility and other improvements located or to be located off-site of the South Suburban Airport which may be necessary or advantageous to the development, promotion and 22 functioning of the South Suburban Airport and the surrounding area. The Board of Directors may make available to the committee such of its experts and consultants as the Board of Directors may find helpful to the committee in the discharge of its responsibilities. Such reports and recommendations made by any and all committees shall be addressed to the Board of Directors, shall be advisory, and shall not be binding upon the Commission or its Board of Directors. 5.09, By-laws. Attached hereto and incorporated as Exhibit "B" are the By-laws of the Commission. All of the business of the Commission and the Board of Directors shall be conducted in accordance with the By-laws. The powers and duties of the Board of Directors and of the Commission's officers and the calling and the conduct of all meetings thereof shall be pursuant to the By-laws and any rules of procedure adopted by the Commission and the Board of Directors thereunder. Subject to the limitations contained in Section 5.12 hereof, the Commission or the Board of Directors may, from time to time, propose modifications to the By-laws. The Commissioners may, at any regular meeting or special meeting called for that purpose, approve such proposed modifications, with or without further modification, which shall become effective upon the approval thereof by, as the case may be, a majority of the Commissioners, or in the absence of any one or more Commissioners, their respective Altemate Commissioners, as evidenced by the adoption of a resolution approving same, provided however that (i) during the Transition Period any such majority vote shall include the vote at least one of the Commissioners, or in the absence of any one of those Commissioners, their respective Alternate Commissioners, appointed from the Predevelopment Supporting Members, and provided further that during the Transition Period in the absence of a majority vote of the 23 Commissioners (or their respective Alternate Commissioners) the affirmative vote of each of the Commissioners (or their respective Alternate Commissioners) appointed by the Founding Members and the Predevelopment Supporting Members shall be sufficient to make such modification effective, and (ii) after the Transition Period, any such majority vote shall include the vote at least one of the Commissioners, or in the absence of any one of those Commissioners, their respective Alternate Commissioners, appointed from the Founding Members, and provided further that in the absence of a majority vote of the Commissioners (or their respective Alternate Commissioners) the affirmative vote of each of the Commissioners (or their respective Alternate Commissioners) appointed by the Founding Members shall be sufficient to make such modification effective. In the event of any conflict between any of the terms, provisions or covenants contained in this Agreement and any provision of the By-laws, as attached hereto or as subsequently amended during the term of this Agreement, the terms, provisions and covenants contained in this Agreement shall be deemed, for all purposes, to control. 5.10. Compensation. All Commissioners, Alternate Commissioners, Directors and officers of the Commission together with any persons serving on any standing or ad hoc committee of the Board of Directors shall serve without compensation. Commissioners, Alternate Commissioners, Directors, the Executive Director, and any officers and employees of the Commission together with any persons serving on any standing or ad hoc committee of the Board of Directors may be reimbursed for actual out of pocket expenses when such expenses are documented in accordance with reasonable business practices and subject to such limitations as may be adopted, from time to time, by the Commission. 24 5.11. Powers and Duties. Subject to the limitations set forth in Section 5.12 hereof, the Commission, acting through its Board of Directors and in accordance with this Agreement and its By-laws, shall exercise all powers, duties and authority conferred upon it, from time to time, by the Members pursuant to this Agreement. 5.12. Reserved Rights of Predevelopment Supporting Members and the Founding Members. 5.12.01 Transition Period and Transition Events. (a) The "Transition Period" shall be that period of time measured from the date of the initial formation of the South Suburban Airport Commission by the Founding Members and the Predevelopment Supporting Members to the date on which each and every one of the "Transition Events" identified below shall have occurred. Notwithstanding any contrary provision contained in this Agreement, during the Transition Period, the approval by the Commission or its Board of Directors of any of the "Specified Acts" identified in subsection 5.12.03 below shall occur only upon the passage and approval of such Specified Acts in accordance with the particular voting limitations contained in subsection 5.12.03. (b) The Transition Events shall consist of each and every one of the following: (1) Completion of the construction of the "Initial Phase" of, and the commencement of scheduled passenger airline service and other commercial airline operations at, the South Suburban Airport. The Initial Phase of the South Suburban Airport shall minimally consist of the elements described on Exhibit "C" attached hereto and incorporated herein. This Transition Event will not be deemed to have occurred unless and until all required permits, certificates, authorizations, approvals or other governmental actions have been issued, granted, received and obtained from the Federal Aviation Administration ("FAA"), the United States Environmental Protection Agency ("EPA"), the Illinois Department of Transportation ("IDOT"), the local zoning and construction authorities, to the extent required by law, together with any and all other regulatory approvals and authorizations which may be required to lawfully authorize the construction and operation of the South Suburban Airport and all of said permits, certificates, authorizations, approvals and actions shall be in full force and effect, and the Predevelopmcnt Supporting Members have issued a Notice to the Commission stating that in their reasonable 25 opinion the full and complete performance, attainment and occurrence of all of the Transition Events described in this subparagraph have occurred. Specifically, but not by way of limitation, these Transition Events shall be deemed to include the recognition by the State of Illinois of the Commission as the sponsor of the Airport and, further, the execution of a formal binding agreement by the State of Illinois with the Commission to complete the acquisition of all of the land necessary for the construction of the "Initial Phase" of the Airport and the transfer of that land to the Commission; and (2) The Predevelopment Supporting Members shall have been paid in full for the "Predevelopment Supporting Members' Contribution" as hereinafter defined, and the Predevelopment Supporting Members shall have issued a notice to the Commission that they have been paid in full for the Predevelopment Supporting Members' Contribution. (A) The "Predevelopment Supporting Members' Contribution" shall mean the following amounts paid by the Predevelopment Supporting Members: (i) all amounts paid by the Predevelopment Supporting Members to the Consultants pursuant to the Pre -Development Services Agreement; and (ii) all amounts paid by the Predevelopment Supporting Members for professional legal and consulting services relating to the Predevelopment Services Agreement; and (iii) all amounts paid by the Predevelopment Supporting Members for professional legal and consulting services relating to the development and negotiation of this Agreement; and (iv) all amounts paid by the Predevelopment Supporting Members for professional legal and consulting services relating to any agreement with the Consultants and any other payments to lawyers and consultants for work in fiutherance of the establishment and business of the Commission and the South Suburban Airport, the selection of the Developers, and federal, state and local approvals relating to the South Suburban Airport, including but not limited to the reimbursement to the Predevelopment Supporting Members of payments for reasonable and demonstrated attorneys' fees and costs of the Founding Members related to the Founding Members' evaluation and participation in the development of this Agreement pursuant to Article Nine; and (v) interest on the foregoing from the date such amounts were paid by the Predevelopment Supporting Members through the date of payment to Predevelopment Supporting Members of the Predevelopment Supporting Members' Contribution, at the prime rate plus two percent (2%) as such rate is established by Bank One in Chicago as on the date of payment of the Predevelopment Supporting Members' Contribution. (B) The Predevelopment Supporting Members' Contribution shall bear interest at the rate set forth in the previous sub -paragraph 2(A)(v), above. The Predevelopment Supporting Members' Contribution shall be paid to the Predevelopment Supporting Members in equal shares. The Predevelopment Supporting Members' Contribution shall be paid and the Development Services Agreement shall provide that Predevelopment Supporting Members' Contribution shall be paid to the Predevelopment Supporting Members from the funds generated by the initial financing of the Airport. The Predevelopment Supporting Members shall provide the Commission with documentation establishing the exact amounts of the Predevelopment Supporting Members' Contribution paid by Predevelopment Supporting Members. 26 (3) A Development Services Agreement shall have been executed, which, in the reasonable opinion of the Predevelopment Supporting Members, shall contain the following specific and enforceable build -out and enforcement provisions (the "Airport Development Build- out and Enforcement Provisions") (i) obligations on the Developer[s] providing for the long term development and ultimate build -out of the Airport for a period of at least twenty-five (25) years beyond the Initial Phase, including provisions requiring additional improvements and landsidetairside capacity expansions tied to the achievement of certain express and unambiguous milestones and benchmarks which shall trigger required improvements and expansion at the Airport; (ii) covenants identifying the Predevelopment Supporting Members by their proper names (the Village of Elk Grove and the Village of Bensenville) as parties intended to be directly benefited by the performance of the Development Services Agreement; and (iii) provisions providing that the Predevelopment Supporting Members shall be considered third party beneficiaries under Illinois law of the Development Services Agreement and of this Agreement, and granting the Predevelopment Supporting Members the right individually or collectively to sue in their own names to enforce the Development Services Agreement through any action at law and in equity and to thereby seek any remedy, including but not limited to specific performance, for a violation of the provisions of the Development Services Agreement, particularly the covenants related to the long term development of the Airport, provided, however, that under no circumstances whatsoever shall the individual Members (as distinguished from the Commission) be held liable or otherwise be found obligated to pledge their full faith credit, be compelled to levy taxes, or be required to pay, encumber or expend any of their financial resources, monies, accounts or deposits in order to assure, carry -out or achieve the ultimate build -out of the Airport, and no such relief shall be claimed or sought as against the individual Members (as distinguished from the Commission). (c) Under the terms of Section 5.15 of this Agreement and the Assignment and Consent Agreement among the Commission, the Predevelopment Supporting Members and the Consultants, the Predevelopment Supporting Members will have assigned to, and the Commission will have accepted and the Consultants will have consented to the assignment of the Pre -Development Services Agreement. By virtue of this assignment, except as otherwise provided in the Pre -Development Services Agreement, the Commission has acquired the right to receive the Consultants' work product. Also by virtue of this assignment, the Commission has become responsible for the performance of the various covenants and undertakings of the Predevelopment Supporting Members contained therein. Notwithstanding the assignment of the Pre -Development Agreement to the Commission, the Predevelopment Supporting Members 27 hereby agree to continue to fund the balance of the fees due the Consultants under the Pre - Development Services Agreement subject to the obligations to pay the Predevelopment Supporting Members' Contribution as provided for herein. 5.12.02 Minimum Voting Requirements During the Transition Period. (1) Specified Acts During the Transition Period Requiring Commission Approval. (A) Except as otherwise noted, any of the following Specified Acts of the Commission during the Transition Period shall require (i) the affirmative vote of a majority of all the Commissioners, or their respective Alternate Commissioners, which majority shall include the affirmative vote of at least one of the Commissioners, or their respective Alternate Commissioners, appointed from one of the Predevelopment Supporting Members, or (ii) if a majority of the Commissioners or respective Alternate Commissioners does not so affirmatively vote for the approval of a Specified Act, the affirmative vote of each of Commissioners, or their respective Alternate Commissioners, of the Founding Members and the Predevelopment Supporting Members shall be sufficient for passage of said Specified Act: (i) Any amendment of the By-laws. (ii) The addition of any Subsequent Members to the Commission and the election of Board of Director's vacancies pursuant to Section 5.06.03. (iii) The acquisition, sale, lease or other conveyance of any land or any interest in any land in which the Commission, or any Member acting on behalf or for the benefit of the Commission, has an interest. (iv) Approval and amendment of the Budget in accordance with Section 8.01. (B) Except as otherwise noted, any of the following Specified Acts of the Commission during the Transition Period shall require the affirmative vote of two-thirds (2/3) of the Commissioners, or respective Alternate Commissioners, and the affirmative vote of each Commissioner, or respective Alternate Commissioner, of each of the Founding Members and the Predevelopment Supporting Members: (i) The termination of this Agreement pursuant to Article Ten. (ii) The expulsion of any Member pursuant to Section 5.03. (C) Except as otherwise noted, any of the following Specified Acts of the Commission during the Transition Period shall require the affirmative vote of three-fourths (3/4) of the Commissioners, or respective Alternate Commissioners, and the affirmative vote of each Commissioner, or respective Alternate Commissioner, of each of the Founding Members and the Predevelopment Supporting Members: (i) The modification of the plans for the Initial Phase of the Airport provided further that the consent of the each of the Predevelopment Supporting Members shall be required to approve any modification or modifications of the Inaugural Airport as described on Exhibit C, paragraphs 1, 2, and 3 which as a result of such modification or modifications, the Inaugural Airport would not contain each every one of the following minimum elements: (1) Runway: CATVCATII, over 8,500 ft, capable of handling FAA Group IV aircraft; (2) Aprons: at least 839,700 square feet of apron area; (3) Terminal size: Gross area of at least 121, 390 square feet, with curbside length of at least 600 feet; (4) Holdroom area: at least 9,000 square feet; (5) Gates: at least 5 gates with five loading bridges. (ii) Any modification of provisions of the Airport Development Build -out and Enforcement Provisions of the Development Services Agreement (subject to the rights of the Predevelopment Supporting Members as set forth herein). Notwithstanding the foregoing, nothing in this Agreement shall affect or impair or be deemed to affect or impair the rights of the Predevelopment Supporting Members to enforce the Airport Development Build -out and Enforcement Provisions. (2) Specified Acts Requiring Board Approval. Except as otherwise noted, any of the following Specified Acts of the Board of Directors during the Transition Period shall require (A) the affirmative vote of a majority of all the Directors which majority shall include the affinnative 29 vote of at least one of the Directors representing one of the Predevelopment Supporting Members, or (B) if a majority of the Directors does not so affirmatively vote for any such Specified Act, the affirmative vote of each Director of the Founding Members and the Predevelopment Supporting Members shall be sufficient for passage of said Specified Act: (i) Appointment of the Executive Director and election of the Officers (ii) Removal of the Executive Director and removal of Officers. (iii) The retention or termination of any Manager, Architect, Surveyor, Engineer, Attorney, or other contractor. (iv) The initiation, defense, settlement or compromise of any litigation affecting the Commission, the Airport, any land or any interest in any land in which the Commission, or any Member acting on behalf of or for the benefit of the Commission, has an interest, any plan(s) for the Initial Phase of the Airport or any application for any governmental approval. (v) The execution of any contracts as provided in Section 5.14. (vi) The approval of the terms of any debt financing provided that such financing shall be limited to non-recourse revenue instruments on which the general credit of the Members and/or the Commission is not pledged as collateral. (vii) Approval or amendment of the proposed Budget in accordance with Section 8.01. 5.12.03 Minimum Voting Requirements After the Transition Period. (1) Specified Acts After the Transition Period Requiring Commission Approval. (A) Except as otherwise noted, any of the following Specified Acts of the Commission after the Transition Period shall require (i) the affirmative vote of a majority of all the Commissioners, or their respective Alternate Commissioners, which majority shall include the affirmative vote of at least one of the Commissioners, or their respective Alternate Commissioners, appointed from one of the Founding Members, or (ii) if a majority of the Commissioners or respective Alternate Commissioners does not so affirmatively vote for the approval of a Specified Act, the affirmative vote of each of Commissioners, or their respective 30 Alternate Commissioners, of the Founding Members shall be sufficient for passage of said Specified Act: (i) Any amendment of the By-laws. (ii) The acquisition, sale, lease or other conveyance of any land or any interest in any land in which the Commission, or any Member acting on behalf or for the benefit of the Commission, has an interest. (iii_ Approval and amendment of the Budget in accordance with Section 8.01. (B) Except as otherwise noted, any of the following Specified Acts of the Commission after the Transition Period shall require the affirmative vote of two-thirds (2/3) of the Commissioners, or respective Alternate Commissioners, and the affirmative vote of each Commissioner, or respective Alternate Commissioner, of the Founding Members: (i) The termination of this Agreement pursuant to Article Ten. (ii) The expulsion of any Member pursuant to Section 5.03. (iii) The addition of any Subsequent Members to the Commission and the election of Board of Directors vacancies pursuant to Section 5.06.03. (C) Except as otherwise noted, any of the following Specified Acts of the Commission after the Transition Period shall require the affirmative vote of three-fourths (3/4) of the Commissioners, or respective Alternate Commissioners, and the affirmative vote of each Commissioner, or respective Alternate Commissioner, of each of the Founding Members: (i) Any modification of provisions of the Airport Development Build -out and Enforcement Provisions of the Development Services Agreement (subject to the rights of the Predevelopment Supporting Members as set forth herein). Notwithstanding the foregoing, nothing in this Agreement shall affect or impair or be deemed to affect or impair the rights of the Predevelopment Supporting Members to enforce the Airport Development Build -out and Enforcement Provisions. (2) Specified Acts Requiring Board Approval. Except as otherwise noted, any of the following Specified Acts of the Board of Directors after the Transition Period shall require (A) 31 the affirmative vote of a majority of all the Directors which majority shall include the affirmative vote of at least one of the Directors representing one of the Founding Members, or (B) if a majority of the Directors does not so affirmatively vote for any such Specified Act, the affirmative vote of both of the Directors representing the Founding Members shall be sufficient for passage of said Specified Act: (i) Appointment of the Executive Director and election of the Officers. (ii) Removal of the Executive Director and of Officers. (iii)The retention or termination of any Manager, Architect, Surveyor, Engineer, Attorney, or other contractor. (iv) The initiation, defense, settlement or compromise of any litigation affecting the Commission, the Airport, any land or any interest in any land in which the Commission, or any Member acting on behalf of. or for the benefit of the Commission, has an interest, or any application for any governmental approval. (v) The execution of any contracts as provided in Section 5.14. (vi) The approval of the terms of any debt financing provided that such financing shall be limited to non-recourse revenue instruments on which the general credit of the Members and/or the Commission is not pledged as collateral. (vi) Approval and amendment of the proposed Budget in accordance with Section 8.01. 5.13. Voluntary Withdrawal of the Predevelopment Supporting Members. Upon the full and complete performance, attainment and accomplishment of each and every one of the Transition Events identified in Section 5.12.01 (b) (1), (2) and (3) hereof, in the reasonable opinion of the Predevelopment Supporting Members, the Transition Period identified therein shall end, and the Predevelopment Supporting Members shall voluntarily withdraw from membership in the Commission upon the terms and conditions contained in this Agreement and, particularly, this Section 5.13.. The criteria of "full and complete performance, attainment and accomplishment of each and every one of the Transition Events" shall not be deemed to be satisfied by substantial performance. 32 Subject to Section 5.12, at such time as the Board of Directors reasonably believe that each and every one of the Transition Events have been fully and completely performed, attained and accomplished, as herein provided, the Board shall deliver a written notice (the "Notice of Completion of Transition Events") to the Predevelopment Supporting Members, setting forth in detail the basis for that determination including a detailed description of the performance, attainment and accomplishment of the Transition Events. The delivery of the Notice of Completion of Transition Events shall be verified, in the case of each of the Predevelopment Supporting Members, by the countersignature of the Commissioner, or in the Commissioner's absence, the respective Alternate Commissioner, appointed by the respective Predevelopment Supporting Member. The Notice of Completion of Transition Events shall further provide that each of the Predevelopment Supporting Members shall have twenty-one (21) days from the date of the receipt by the Predevelopment Supporting Members of the Notice of Completion of Transition Events to provide the Board with a written response (the "Response") to the Notice of Completion of Transition Events. If the Response of either of the Predevelopment Supporting Members concurs in the Board's finding, then the concurring Predevelopment Supporting Member or Members, as the case may be, shall be deemed to have withdrawn from membership in the Commission five (5) business days after the date of the concurring Predevelopment Supporting Member's or Members' Response. If one or both of the Predevelopment Supporting Members fails to provide the Response within twenty-one (2 1) days of the date of the receipt by the Predevelopment Supporting Members of the Notice as herein provided, then either or both of the Predevelopment Supporting Members which shall have failed to provide a Response shall be conclusively deemed to have withdrawn from the Commission twenty-six (26) days after the 33 receipt by the Predevelopment Supporting Members of the Notice of Completion of Transition Events. If the Response of either or both of the Predevelopment Supporting Members disputes the Board's finding as contained in the Notice of Completion of Transition Events, in whole or in part, the disputing Predevelopment Supporting Member or Members, as the case may be, shall include in each such Response an itemization of each of the elements of the Transition Events identified in Section 5.12 hereof as to which such Predevelopment Supporting Member contends that there has not been "full and complete performance, attainment and accomplishment." If the Board of Directors and the disputing Predevelopment Supporting Member(s) are unable to reach an agreement with respect to the resolution of the disputed matters set forth in the Response(s) of the Predevelopment Supporting Member(s), the Predevelopment Supporting Member(s) shall have the right to pursue any remedy available at law or in equity, including but not limited to injunctive and declaratory relief and specific performance. Until the matters in dispute are finally determined by a court of competent jurisdiction, or otherwise resolved by agreement among the parties, the Transition Period shall not be deemed to have ended and the Predevelopment Supporting Members shall continue to be Members and the Commissioners and the Alternate Commissioners appointed from the Predevelopment Supporting Members shall continue to serve as Directors and/or officers of the Commission. 5.14. Contracts. Subject to Section 5.12, the Board of Directors may, from time to time, authorize the Chairman, the Executive Director or an officer of the Commission to execute contracts and related documents and further may authorize the Secretary to attest to the execution of such contracts and related documents. Such contracts and documents may include, but not by way of limitation, agreements related to loans, leases or other financing instruments provided 34 that the Commission shall have first approved same, service contracts, and contracts to retain or employ such qualified persons or firms to provide for the benefit of the Airport the following services: execution and performance of the Development Services Agreement, Architectural Services, Engineering Services, Land Surveying Services, Legal Services, Financial Services, Management Services and Construction Services all upon such terms and conditions as the Board may determine to be appropriate. The right to obtain Architectural Services, Engineering Services and Construction Services shall specifically include, but not be limited to, the use of design/build contracts or other forms of planning, management and construction contracts as the Board may determine to be appropriate. Pursuant to the Transferred Authority, the Board of Directors shall utilize such selection procedures as it deems appropriate and as may be consistent with applicable law, in order to enter into all contracts. Notwithstanding the foregoing, the Board of Directors shall not authorize the execution of the Development Services Agreement unless that agreement contains specific and enforceable (i) obligations on the Developer[s] providing for the long term development and ultimate build- out of the Airport for a period of at least twenty-five (25) years beyond the Initial Phase, including provisions requiring additional improvements and landsidelairside capacity expansions tied to the achievement of certain express and unambiguous milestones and benchmarks which shall trigger required improvements and expansion at the Airport, and such Development Services Agreement (such triggering events might be framed in terms of the passage of years (ie. 5, 10, 15, 25, etc. year programs) or other suitable benchmark events such as utilization of the Airport by a specified number of passengers or by a specified number of flights); (ii) covenants identifying the Predevelopment Supporting Members by their proper names (the Village of Elk Grove and the Village of Bensenville) as parties intended to be directly benefited by the 35 performance of the Development Services Agreement; (iii) provisions providing that Predevelopment Supporting Members shall be considered third party beneficiaries under Illinois law of the Development Services Agreement and of this Agreement, and granting the Predevelopment Supporting Members the right individually or collectively to sue in their own names to enforce the Development Services Agreement through any action at law and in equity and to thereby seek any remedy for a violation of the provisions of the Development Services Agreement, particularly the covenants related to the long term development of the Airport, including but not limited to specific performance, provided, however, that under no circumstances whatsoever shall the individual Members (as distinguished from the Commission) be held liable or otherwise be found obligated to pledge their full faith credit, be compelled to levy taxes, or be required to pay, encumber or expend any of their financial resources, monies, accounts or deposits in order to assure, carry -out or achieve the ultimate build -out of the Airport, and no such relief shall be claimed or sought as against the individual Members (as distinguished from the Commission); (iv) provisions obligating the Developer(s) to actively market, solicit and diligently pursue the location or relocation of commercial passenger airlines and cargo carriers to the Airport. In executing this Agreement, the Commission and each of the Members of the Commission agree, represent and warrant to the Predevelopment Supporting Members, that the Development Services Agreement shall contain an express provision identifying the Predevelopment Supporting Members by their proper names (the Village of Elk Grove and the Village of Bensenville) together with an affirmative covenant identifying the Predevelopment Supporting Members as parties intended to be directly benefited by the performance of the Development Services Agreement and providing that the Predevelopment Supporting Members 36 shall be considered to be third party beneficiaries of that agreement under Illinois law and that the Predevelopment Supporting Members, or either of them, may enforce the terms of the Development Services Agreement through any appropriate action at law or in equity including, without limitation, injunctive and declaratory relief as well as specific performance of the terms of the Development Services Agreement. The Commission and each of its Members represent and warrant to the Predevelopment Supporting Members that, upon the withdrawal of the Predevelopment Supporting Members as provided in Section 5.13 hereof, said Predevelopment Supporting Members shall continue to be parties that are intended to be directly benefited by the provisions of this Section 5.14 and, as such, shall be considered to be third party beneficiaries of this Agreement and of the Development Services Agreement for the purpose of permitting said Predevelopment Supporting Members, or either of them, to enforce this Agreement, and particularly this Section 5.14, and the Development Services Agreement through any appropriate action at law or in equity including, without limitation, injunctive and declaratory relief as well as specific performance of the terms of this Agreement, provided, however, that under no circumstances whatsoever shall the individual Members (as distinguished from the Commission) be held liable or otherwise be found obligated to pledge their full faith credit, be compelled to levy taxes, or be required to pay, encumber or expend any of their financial resources, monies, accounts or deposits in order to assure, carry -out or achieve the ultimate build -out of the Airport, and no such relief shall be claimed or sought as against the individual Members (as distinguished from the Commission). The Commission shall establish and maintain in connection with the construction, operation, maintenance and repair of the Airport a program of Affirmative Action in compliance with 14 C.F.R. Part 152 which shall strive to achieve diversity among employees and contractors 37 by using every good faith effort to provide for meaningful opportunities for employment and contracting by minority-owned business enterprises (`MBE') and women -owned business enterprises ("WBE"). In addition, the Commission shall provide a preference to local area businesses/residents in the event of equally qualified contractors, subject to applicable law. Nothing herein shall be construed as a limitation upon the application of any laws which shall establish different standards of compliance or upon the application of requirements for the hiring of local area businesses/residents. 5.15. Assignment of the Pre -Development Agreement. The Commission, acting through its Board of Directors, the Predevelopment Supporting Members and the Developers shall enter into an Assignment and Consent Agreementpursuant to which the Predevelopment Supporting Members shall assign to the Commission, the Commission shall accept, and the Developers shall consent to the assignment of the Pre -Development Services Agreement and the Commission shall be entitled to receive and utilize all work product produced by the Developers pursuant to the terms thereof. The assignment of the Pre -Development Agreement made herein is expressly made subject to the conditions set forth in Section 5.12 (a) (2) hereof, including the continuing obligation of the Predevelopment Supporting Members to pay all costs specified in the Predevelopment Services Agreement. ARTICLE SIX TRANSFERRED POWERS AND AUTHORITY 6.01. General. Pursuant to the Constitution of Illinois, 1970, Article VII, Section 10 and the Intergovernmental Cooperation Act, 5 ILCS 220/3 and 5 ILCS 220/5, the Members hereby agree to transfer and delegate to and exercise, combine and enjoy jointly with the Commission the enumerated powers and authorities set forth herein. In addition, pursuant to 620 ILCS 20/1 et 38 seq., particularly Section 20/4 thereof, the Commission shall have the authority to carry out any and all statutory powers and duties or other responsibilities vested in the corporate authorities of the municipalities entering into this Agreement to establish and operate the Airport. Finally, pursuant to 620 ILCS 25/14, the Commission shall have the authority to act as a joint airport zoning board. The Commission shall constitute a separate legal entity which may, in its own name, enter into contracts, sue and be sued, borrow money and execute bonds and other instruments evidencing such debt, hold title to real and personal property and acquire and dispose of same all in accordance with the authority transferred to the Commission in Section . 1 TI :I it 6.02. Transferred Authority.. Specifically, but not by way.of limitation, the Members, by this Agreement, transfer and delegate to the Commission all of their powers and authorities under the Constitution of Illinois, 1970, including, for those Members which are home rule units of government, the home rule powers granted under Section 6, together with the following statutes (the "Transferred Authority"): 5 ILCS 220/1 et seq. — Intergovernmental Cooperation Act. 620 ILCS 20/0.01 et seq. — Joint Airports Act. 65 ILCS 5/11-101-1 et seq. — Illinois Municipal Code — "Airports — General Authority." 65 ILCS 5/11-103-1 et seq. — Illinois Municipal Code — "Airports for Municipalities less than 500,000." 620 ILCS 25/1 et seq. — Airport Zoning Act. Each Member further hereby agrees to transfer, exercise, combine and jointly enjoy with each other and with the Commission, such other powers, privileges, functions or authority as may otherwise exist, whether express or implied, which might, in any way, assist in obtaining and 39 securing the benefits and purposes of this Agreement. The following paragraphs of this Section 6.02 set forth a partial list of the Transferred Authority: (a) The power to locate, establish, acquire, own, construct, manage, maintain, and operate, develop, expand, extend and improve the Airport within or without the corporate limits of any municipality or within the boundaries of any county or within or upon any land adjacent thereto, together with all land, appurtenances, and easements, required therefor or deemed necessary or useful in connection therewith, together with the right to provide for the safe approach and take -off of aircraft therefrom. Such power includes every kind of structure. (65 ILCS 5/11-101-1; 65 ILCS 5/11-103-1). (b) The power to acquire by dedication, gift, lease, purchase, contract, condemnation under the power of eminent domain or otherwise all property and rights, necessary and proper, within or outside the corporate limits of a municipality or within the boundaries of any county or adjacent thereto, land in fee simple, rights in and over land, easements upon, over or across land, tangible and intangible personal property and all property rights necessary or proper for any of the purposes specified in this Agreement. The power of eminent domain applies to any private property or property devoted to public use, or rights or easements therein. In all cases where property or the rights in property are acquired or sought to be acquired by condemnation, such property shall be deemed to be acquired, owned, leased, and occupied for a public purpose and the process to be followed in the acquisition of such property or rights in property shall be the procedure provided for the exercise of the right of eminent domain under Article VII of the Code of Civil Procedure as heretofore and hereafter amended. (65 ILCS 5/11-101-1; 65 ILCS 5/11- 103-1, 3 & 4) (c) The power to lease any part of the Airport and fix and collect rentals therefore, and to fix, charge and collect rents, rates, tolls, fees, charges or other compensation for any use of the Airport or for any service rendered by the Commission in the operation thereof, provided that, subject to the capacity thereof, the landing field and landing strips shall be available to any person, without unjust or unreasonable discrimination as to services and charges, for landing and take -off by any aircraft. (65 ILCS 5/11-101-1; 65 ILCS 5/11-103-6) (d) The power to let to, or enter into any operating agreement with, any person for the operation and maintenance of the Airport, provided that all such leases or operating agreements shall expressly provide that, to the extent that available capacity exists, the landing fields and landing strips shall be available to any person, without unjust or unreasonable discrimination as to services and charges, for landing and take -off by any aircraft. (65 ILCS 5/11-101-1) (e) The power to let to any person, or grant concessions or privileges in, any land adjoining the landing field or any building or structure on such land for the shelter, servicing, manufacturing and repair of aircraft, aircraft parts and accessories, for receiving and discharging passengers and cargo, and for the accommodation of the public at the Airport. (65 ILCS 5/11- 101-1) (f) The power to make all reasonable rules and regulations for the use of the Airport, for air traffic and Airport landing field conduct, and for the maintenance and control of the 40 Airport and other air navigation facilities and property under the control of the Commission including the approach of aircraft and their take -offs and landings to and from the Airport. Notwithstanding the foregoing, these rules and regulations shall not be in conflict with the laws of the State of Illinois, the laws and regulations of the United States, the regulations of the Illinois Commerce Commission, and the rules, rulings, regulations, orders or decisions of the Illinois Department of Transportation. (65 ILCS 5/11-103-5) (g) The power to vacate roads, highways, streets, and alleys, or parts thereof, when the vacation is deemed essential to the proper and safe construction and maintenance of the Airport. (65 ILCS 5/11-103-7) (h) The power to establish, maintain, extend and improve roadways and approaches by land, water or air to any airport and to contract or otherwise provide, by condemnation if necessary, for the removal of any airport hazard or the removal or relocation of all private structures, railways, mains, pipes, conduits, wires, poles, and all other structures, facilities and equipment which may interfere with the location, expansion, development, or improvement of the Airport or with the safe approach thereto or take off therefrom by aircraft, and to pay the cost of removal or relocation. (65 ILCS 5/11-101-1) (i) The power to borrow money and issue bonds, payable solely from the revenue derived from the operation or leasing of the Airport. Said bonds may be issued in such amounts as may be necessary to provide sufficient funds to pay all costs of acquiring land or constructing the Airport, or to pay the costs of exercising the powers otherwise granted herein and in the statutes enumerated in this Article Six , including engineering, legal, and other expenses, including predevelopment expenses together with interest thereon. (65 ILCS 5/11-103-2; 620 ILCS 20/4) ARTICLE SEVEN PERSONNEL 7.01. Member Officers and Employees. The officers and employees of the various Members may provide work or other services to the Commission, or its Board of Directors, without relinquishing any office they may hold, or employment they may enjoy, with the Member. (Constitution of Illinois, 1970, Article VII, Section 10 (b)) 7.02. Commission Employees. The Commission, through its Board of Directors, may hire such employees as it may determine, from time to time, to be reasonably necessary to operate, maintain and otherwise conduct the business of the Commission. 41 7.03. Tort Immunity Act. All employees of the Commission shall be subject to the provisions of the Local Governmental and Governmental Employees Tort Immunity Act, 745 ILCS 10/1-101 et seq. (620 ILCS 20/3) 7.04. Employment Benefits. All employees of the Commission shall, in addition to their regular compensation, be provided with such employment benefits as the Commission deems appropriate. Benefits may include, but not by way of limitation, the following: participation in the Illinois Municipal Retirement Fund (40 ILCS 5n-132 (B) (b) xx.) or any other pension or deferred compensation plans as permitted by law, health and life insurance benefits, vacation and sick leave and other benefits customarily enjoyed by employees of units of local government. ARTICLE EIGHT FINANCIAL MATTERS 8.01. Budget. Prior to the commencement of each fiscal year, the Board of Directors shall propose, and the Commission shall adopt, an annual budget containing estimated revenues and required and recommended expenditures, all of which shall be presented in a manner which is in conformity with good fiscal management practices. The Budget shall be approved in accordance with Section 5.12. The budget, and any proposed or adopted revision to the budget, shall apply the revenues of the South Suburban Airport to purposes and expenses identified in Section 8.02 hereof, in the order provided in said Section 8.02 unless and until this Agreement shall be properly amended to provide otherwise. During the Transition Period, any amendment to this Agreement must be approved by the majorities hereinbefore identified in this Section 8.01. 8.02. Application of Revenues. All revenues of the South Suburban Airport shall be deposited in an "Airport Fund." The Revenues of the South Suburban Airport shall mean and 42 include all revenues received by the Commission from the operation of the Airport, including but not limited to revenues received from the developers, lessees, concession operators, permittees, fixed -base operators, licensees, and all other persons doing business on the Airport. Revenues generated from the operation of the South Suburban Airport shall be applied to the following purposes in the order in which they are hereinafter listed: (a) The payment of any amounts of the Predevelopment Supporting Members' Contribution that have not been paid pursuant to Section 5. 12.01 hereof. (b) The payment of all expenses related to the operation and maintenance of the South Suburban Airport including salaries of executive, management, and operating personnel, reimbursement of out of pocket expenses of Commissioners as provided in Section 5.07, and payment of legal, accounting, consulting and other professional services of the Commission. (c) The payment of arty principal of, and interest on, any revenue bonds related to the Airport, including the funding of any accounts required thereunder such as the required provision of an adequate depreciation fund. (d) The payment of obligations, if any, of the Commission related to the acquisition of land for the Airport from the State. (e) The payment of capital and operating costs of the Airport (to the extent such costs are not required to by paid by others) as determined by the Board of Directors in accordance with the provisions of this Agreement. (f) The payment of costs related to any off -airport infrastructure improvements determined by the Commission in accordance with the provisions of this Agreement to be necessary to enhance the efficiency and utility of the Airport. (g) The balance of Airport revenues shall be distributed to the Members of the Commission as determined by the Commission in accordance with the provisions of this Agreement, provided however that no such application to Members shall be made (except as provided in (a) (b) and (c) above) until after the Transition Period. 8.03. Audit. An annual audit of the financial affairs of the Commission shall be made by a certified public accountant at the end of each fiscal year in accordance with generally accepted auditing principles. 43 8.04. Insurance. The Commission, through its Board of Directors, shall obtain insurance of such types and in such amounts as it shall, from time to time, deem necessary. 8.05. Bonds. The Commission and its Board of Directors shall take all actions necessary and appropriate to authorize the issuance of revenue bonds to finance the costs of acquiring land, constructing the Airport, reimbursing the Predevelopment Supporting Members for the Predevelopment Supporting Members' Contribution pursuant to Section 5.12 hereof, and paying other costs as permitted by law, as more fully set forth in Section 6.02(1). Such actions shall include, but not be limited to, adoption of an ordinance, resolution, or other measure, as required, which shall describe in a general way the contemplated project and shall refer to the plans and specifications therefor. The ordinance or resolution shall also set out the estimated cost of the project, fix the amount of bonds to be issued, the maturity or maturities thereof, the interest rate, which shall not exceed the amount permitted by law, and all details in connection with the bonds. To the extent required by law, the ordinance, resolution, or other measure shall also declare that a statutory mortgage lien shall exist upon the property of the South Suburban Airport, and shall pledge the revenue derived from the operation or leasing of the Airport, for the payment of maintenance and operating costs, providing an adequate depreciation fund and paying the principal and interest of the bonds issued pursuant to the resolution. The bonds issued hereunder shall not, in any event, constitute an indebtedness of the Commission, or any Member thereof, within the meaning of any constitutional or statutory limitation, Each bond shall plainly state on its face the relevant statutes authorizing the issuance of the bond and that it does not constitute an indebtedness of the Commission or any Member thereof within any constitutional or statutory limitation. W, The bonds shall be sold in such manner and upon such terms as the Commission and its Board of Directors shall determine. ARTICLE NINE INDEMNIFICATION AND REIMBURSEMENT 9.01 Indemnification. To the fullest extent permitted by law, each Member (the "Indemnif)ing Member") hereby agrees to defend, indemnify and hold harmless each other Member, its officials, agents and employees, against all injuries, deaths, loss, damages, claims, suits, liabilities, judgments, costs and expenses which may in anyway accrue against such other Member, its officials, agents and employees, arising in whole or in part or in consequence of breach or failure of performance of this Agreement by the Indemnifying Member, its employees, or subcontractors, or which may in anyway result therefore, except that arising out of the sole legal cause of such other Member, its agents or employees, and the Indemnifying Member shall, at its own expense, appear, defend and pay all charges of attorneys and all costs and other expenses arising therefore or incurred in connection therewith, and, if any judgment shall be rendered against such other Member, its officials, agents and employees, in any such action, the Indemnifying Member shall, at its own expense, satisfy and discharge the same. 9.02 Reimbursement. Subject to and conditioned on reimbursement of the Predevelopment Supporting Members Contribution as provided for in Section 5.12, the Predevelopment Supporting Members agree to reimburse the Founding Members for reasonable and demonstrated attorneys' fees and costs related to the evaluation and participation in the development of this Agreement; provided however, that this obligation to reimburse the Founding Members shall remain in effect until such obligation is terminated in writing or by e-mail by the Predevelopment Supporting Members. Notice of such termination will end the obligation of the Predevelopment Supporting 45 Members to pay for services incurred after the date of such notice but not for services incurred before the date of such notice. ARTICLE TEN TERMINATION OF AGREEMENT; DISSOLUTION OF COMMISSION; DISPOSITION OF PROPERTY Subject to Section 5.12 hereof, this Agreement may be terminated and the Commission may be dissolved upon the affirmative vote of not less than two-thirds (2/3) of all of the Commissioners, or their respective Alternate Commissioners, provided however that during the Transition Period, such 2/3 vote shall include the affirmative vote of each of the Commissioners, or their respective Alternate Commissioners representing the Founding Members and the Predevelopment Supporting Members and provided further that after the Transition Period, such vote shall include the affirmative vote of each of the Commissioners, or their respective Alternate Commissioners, of each of the Founding Members. Once the required number of Commissioners, or their respective Alternate Commissioners, has voted in favor of such dissolution as provided in the preceding sentence, the Commission shall immediately cease conducting its affairs except insofar as may be necessary for the proper winding up thereof. The Commission shall immediately cause notice of the proposed dissolution to be mailed to each of the Commission's creditors and shall promptly prepare an inventory of all of the Commission's assets and apply and distribute same in the order hereinafter provided: (a) All liabilities and obligations of the Commission shall be paid, satisfied and discharged or adequate provision shall be made therefor. (b) Assets held by the Commission upon conditions requiring return, transfer or conveyance, which condition occurs by reason of the dissolution or termination, shall be returned, transferred or conveyed in accordance with such condition or requirement. 46 (c) All receivables shall be collected. All funds on hand and any remaining tangible or intangible property held in the name of the Commission shall be distributed in accordance with a plan of distribution unanimously approved by the corporate authorities of the Members. Should the Members be unable to agree between themselves upon a plan of distribution resolving any controversy which may arise as a result of the dissolution contemplated herein, any Member may cause an action to be filed in a court of competent jurisdiction, impleading all of the Members as defendants and requesting the court to declare the respective rights of the Members in the assets and property of the Commission. Notwithstanding the foregoing, pursuant to 620 ILCS 20/5, the right to terminate this Agreement shall be abrogated if the Commission has entered into an agreement with the State of Illinois, the federal government or any other person for the expansion or capital improvement of the Airport which obligates the Commission to continue to maintain and operate the Airport for the contracted period of years, and termination shall not be effected until such time as the agreement between the Commission and the State of Illinois, federal government or other person shall expire. ARTICLE ELEVEN MISCELLANEOUS 11.01. Effective Date; Contractual Obligation, This Agreement shall become effective once it has been duly approved and executed by each of the Founding Members and the Predevelopment Supporting Members. This Agreement shall constitute a contract among the Members of the Commission. The obligations and responsibilities of the Members set forth herein, including the obligation to take no action inconsistent with this Agreement as originally written or validly amended, shall remain a continuing obligation and responsibility of the Member. The terms of this Agreement may be enforced in a court of law or equity either by the Commission itself or by any of its Members. 47 hereto. 11.02. Assignment. This Agreement shall not be assigned by any Member who is a party 11.03. Severability. Should any Section, subsection, part, term or provision of this Agreement be determined by a court of competent jurisdiction to be illegal or in conflict with any law, the validity of the remaining portions or provisions shall not be affected thereby. 11.04. Third Party Beneficiaries. Except as expressly provided in this Agreement, nothing in this Agreement is intended to confer upon any person or entity, other than Developers and their successors and permitted assigns, any rights or remedies, including without limitation rights as third party beneficiary, under or by reason of this Agreement. 11.05. Amendments. This Agreement may be amended only by written instrument executed by the Members hereto and only upon the approval of such amendment by the required vote therefore as provided in the By-laws and in this Agreement, particularly Section 5.12 hereof. No waiver, approval, consent or other agreement of any Member shall be effective unless in writing and signed by the Member to be bound. 11.06. Entire Agreement. This Agreement embodies the entire agreement between the Members hereto with relation to the transaction contemplated hereby, and there have been and are no covenants, agreements, representations, warranties or restrictions between the Members hereto with regard thereto other than those set forth herein. 11.07. Further Assurances. Each Member agrees to take such actions and execute such documents as are reasonably necessary or desirable in order to carry out the purposes and intent of this Agreement. 11.08. Governing Law. This Agreement shall be construed under and in accordance with the laws of the State of Illinois. The Members hereby consent to the personal jurisdiction of the 48 courts of the State of Illinois and the federal courts located within the State of Illinois and waive any objection based on lack of personal jurisdiction or forum non conveniens for claims brought in such courts. 11.09. Notice. Any notice required or permitted to be delivered hereunder shall be in writing and deemed to be delivered on the earlier to occur of the date of actual receipt of the notice (whether by hand delivery, courier, telex or otherwise) or, on the date of refusal on the first business day when delivery is attempted by United States Mail, postage prepaid, registered or certified mail, return receipt requested, or by hand delivery, or by recognized overnight delivery service or by electronic means capable of producing a written confirmation of delivery, addressed as follows: Village of University Park 698 Burnham Drive University Park, Illinois 60466 Attention: Village Manager Village of Park Forest 350 Victory Drive Park Forest, Illinois 60466 Attention: Village Manager Village of Bensenville 12 South Center Street Bensenville, IL 60106 Attention: Village Manager Elk Grove Village 901 Wellington Ave (Municipal Complex) Elk Grove Village, Illinois Attention: Village Manager 49 A Member may change the address for delivery and receipt of such notice by communicating such information to the other Members in writing not less than three (3) business days in advance of the effective date thereof. 11.10. Non -Waiver. Any Member's delay or failure to enforce any rights or remedies hereunder shall not constitute a waiver of any of such rights or remedies. 11.11. Gender. Words of any gender used in this Agreement shall be held and construed to include any other gender, and words of a singular number shall be held to include the plural and vice versa, unless the context requires otherwise. 11.12. Captions. The captions and headings used in connection with this Agreement are for convenience only and shall not be deemed or construed to limit the meaning of the.language of this Agreement. 11.13. Recordation. Copies of this Agreement shall be recorded in the Office of the Recorder of Deeds for each County in which any of the Members is located. (65 1LCS 5/11-103- 10). 11.14. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original, but all of which shall constitute one and the same Agreement. 50 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. ATTEST: Village Clerk ATTEST: Village Clerk ATTEST: Village Clerk ATTEST: Ann I. Walsh Village Clerk VILLAGE OF UNIVERSITY PARK Mayor VILLAGE OF PARK FOREST By: President VILLAGE OF BENSENVILLE By: President ELK GROVE VILLAGE By. Craig B. Johnson Mayor 51 EXHIBIT `B" BY-LAWS OF THE SOUTH SUBURBAN AIRPORT COMMISSION ARTICLE I EFFECTIVENESS These By-laws are attached to and incorporated by reference in that certain document dated January , 2004 and entitled "The Amended and Restated Intergovernmental Agreement Providing for the Planning, Development and Operation of the South Suburban Airport and the Creation of the South Suburban Airport Commission" (the "IGA"). In executing the IGA, each of the Members has agreed that these By-laws shall be the By-laws of the Commission and the Board of Directors. As defined in Section 5.12 of the IGA, there exists a certain Transition Period which lasts from the initial formation of the Commission until the accomplishment of each and every one of several Transition Events. During and after the Transition Period certain Specified Acts (as defined therein) are subject to special voting requirements, as set forth in Section 5.12.02 and 5.12.03 of the IGA. ARTICLE 11 GENERAL Section 2. 1. Principal Office. The principal office of the Commission shall be located within the property of the Commission, or at such other place within the corporate limits of any of the Commission's Members as the Board of Directors (sometimes hereinafter referred to as the "Board") shall from time to time select. Section 2.2. Vacancies. Except as otherwise set forth in the IGA, any vacancy occurring in the Commission or the Board shall be filled in the same manner as the original election or appointment of such position. Section 2.3. Compensation. Commissioners, Alternate Commissioners, Directors, and officers of the Commission, together with any persons serving on any committee shall serve without compensation; however, each such person and the Executive Director may be reimbursed for actual out of pocket expenses when such expenses are documented in accordance with reasonable business practices and subject to such limitations as may be adopted from time to time by the Board. Section 2.4. Definitions. Capitalized terms not otherwise defined herein shall have the same meaning as such terms are given in the IGA. ARTICLE III MEETINGS Section 3.1. Annual Meetings. The annual meeting of the Commission shall be held in January each year for the transaction of such business as may come before the meeting. Except for the year in which the post Transition Period Board of Directors is initially formed, the Board shall also have an annual meeting, to be held in January of each year, but in each case after the date of the required annual meeting of the Commission. Section 3.2. Special Meetings. Special meetings of the Commission may be called by or at the request of the Chairman, the Board of Directors or by two or more of the Commissioners (or, in the absence of one or more of such Commissioners, their respective Alternate Commissioners). Business conducted at special meetings shall be limited to those items specified in the agenda. Special meetings of the Board may be called by or at the request of the Chairman or any Director. Business conducted at special meetings shall be limited to those items specified in the agenda. Section 3.3. Place of Meetings. Any meeting of the Commission or the Board shall be held at the principal office of the Commission or at such other place within the corporate limits of any of the Commission's Members or at any other location as the Board shall from time to time select. Section 3.4. Notice of Meetings. Public notice of all meetings of the Commission and of the Board shall be given in accordance with the provisions of the Open Meetings Act (5 ILCS 120/1 et seq.). In addition, notice of every meeting, including the date, location, time and agenda, shall be given at least forty eight (48) hours previously thereto by written notice delivered personally or by facsimile, to such addresses and/or facsimile numbers as each Commissioner or Director, as applicable, shall have on file with the Secretary. If notice be given by facsimile, such notice shall be deemed to be delivered when the facsimile transmission is made. In the case of an emergency, less than forty eight (48) hours may be given; provided, however, that as much notice as is practicable shall be given. Any Commissioner or Director may waive notice of any meeting. The attendance of a Commissioner or Director at any meeting shall constitute a waiver of notice of such meeting, except where a Commissioner or Director attends a meeting for the express and sole purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened. Section 3.5. Quorum. Except as otherwise provided in the IGA, a majority of the Commissioners who are duly appointed shall constitute a quorum for the transaction of business at any meeting of the Commission, provided, that if less than a majority of such Commissioners are present at said meeting, a majority of the Commissioners present may adjourn the meeting from time to time without further notice. Except as otherwise provided in the IGA, a majority of the Directors who are duly elected or appointed shall constitute a quorum for the transaction of business at any meeting of the Board, provided, that if less than a majority of such Directors are present at said meeting, a majority of the Directors present may adjourn the meeting from time to time without further noticc. 2 Section 3.6. Manner of Acting. Except as otherwise required herein or in the IGA (including but not limited to Section 5.12 of the IGA), the act of a majority of the Commissioners present at a meeting at which a quorum of the Commissioners is present shall be the act of the Commission.. Each Commissioner shall be entitled to one (1) vote. Such vote may be cast only by the Commissioner or the Alternate Commissioner. Proxy or absentee voting shall not be permitted. Except as otherwise required herein or in the IGA (including but not limited to Section 5.12 of the IGA) the act of a majority of the Board of Directors at a meeting at which a quorum of the Board of Directors is present shall be the act of the Board.. Each Director shall be entitled to one (1) vote. Such vote may be cast only by the Director. Proxy or absentee voting shall not be permitted. Section 3.7. Electronic Attendance. Attendance and participation by Commissioners or Directors at meetings shall be allowed through electronic means provided that such attendance is conducted in a manner which complies with any applicable governing law of the State of Illinois regulating electronic attendance and open meetings. To the extent such law may provide, Commissioners and Directors attending by electronic means may count toward the establishment of a quorum, may participate in debate and may vote on matters properly before the Commission or the Board at any duly noticed meeting thereof. Attendance through electronic means shall be reflected in the minutes. Section 3.8. Order of Business. The order of business at any meeting of the Board shall be as follows: (A) Call to Order. (B) Roll Call. (C) Consent Agenda. (D) Approval of Minutes. (E) Reports of Officers. (F) Reports of Standing Committees. (G) Reports of Ad Hoc Committees, if any. (H) Consideration of Old Business. (I) Consideration of New Business. (J) Adjournment. Any By-law or rule respecting the consideration of business by the Commission or the Board may be suspended in respect to the business considered at any meeting; provided, however, that such suspension shall be pursuant to the same voting requirements set forth in Sections 5.09 and Section 5.12 of the IGA regarding amendment of the By-laws, and, further, that such suspension shall not apply to subsequent meetings of the Commission or the Board. Section 3.9. Rules of Proceeding. The Commission shall determine its own rules of proceeding. The latest edition of Roberts Rules of Order shall govern the actions of the Commission at all meetings except as may be otherwise provided by these By-laws or by the Commission's rules of proceeding. The Board shall determine its own rules of proceeding. The latest edition of Roberts Rules of Order shall govern the actions of the Board at all meetings except as may be otherwise provided by these By-laws or by the Board's rules of proceeding. ARTICLE W BOARD OF DIRECTORS Section 4.1. Formation. Pursuant to Section 5.06.01 of the IGA, at such time as the Commission shall consist of more than seven Members, the Board of Directors shall be created. During the Transition Period, the Board shall consist of seven Directors. Pursuant to 5.06.02 of the IGA, upon the occurrence of each and every one of the Transition Events and the conclusion of the Transition Period as provided in Section 5.12 of the IGA, the Board shall consist of five Directors. The Directors of the Board of Directors shall be appointed pursuant to the provisions of Section 5.06 of the IGA. Section 4.2. Powers and Duties. The Board shall govern the day -today affairs of the Commission and shall have the powers, duties and authority to exercise any and all of the authority conferred on the Commission under Article 6 of the IGA, including all such powers, duties and authority conferred upon it by the Members pursuant to the IGA and these By-laws. Such powers, duties and authority of the Board shall include, but not be limited to, the following: (A) Appointment of the Executive Director and officers. (B) The retention or termination of any Manager, Architect, Surveyor, Engineer, Attomey, or other contractor. (C) The initiation, defense, settlement or compromise of any litigation affecting the Commission, the Airport, any land or any interest in any land in which the Commission or any Member acting on behalf of or for the benefit of the Commission, has an interest, any plan(s) for the Initial Phase of the Airport or any application for any govemmental approval. (D) The execution of any contracts as provided in Section 5.14 of the IGA. (E) The approval of the terms of any debt financing, provided that such financing shall be limited to non-recourse revenue instruments on which the general credit of the Members and/or the Commission is not pledged as collateral. (F) The removal of the Executive Director and officers. (G) Preparation of the annual budget to be submitted to the Commission for approval as provided in Section 8.01 of the IGA. 0 (H) The retention of a certified public accountant to perform an annual audit of the financial affairs of the Commission at the end of each fiscal year as provided in Section 8.03 of the IGA. (I) The purchase of insurance of such types and in such amounts as it shall, from time to time, deem necessary, as provided in Section 8.04 of the IGA. The vote required for approval of items (A) through (F) above shall be pursuant to Section 5.12 of the IGA. Notwithstanding the foregoing, the following actions shall require the approval of the Commission, upon such votes as set forth in the IGA: (A) The amendment of these By-laws or the IGA. (B) The modification of the plans for the Initial Phase of the Airport. (C) The addition of any Subsequent Members to the Commission and the appointment of any Director pursuant to Section 5.06.03 of the IGA. (D) The acquisition, sale, lease or other conveyance of any land or any interest in any land in which the Commission, or any Member acting on behalf or for the benefit of the Commission, has an interest. (E) The termination of the IGA pursuant to Section Article Ten of the IGA. (F) The expulsion of any Member pursuant to Section 5.03 of the IGA. (G) Approval of the annual budget pursuant to Section 8.01 of the IGA. ARTICLE VI OFFICERS Section 5.1. Number. The officers of the Commission shall consist of a Chairman, a Vice -Chairman, a Secretary and a Treasurer and such other officers as may be established by the Board (or by the Commission pursuant to an amendment to these By-laws). The officers so appointed shall simultaneously function as the officers of the Board and of the Commission. Any two or more offices may be held by the same person, except the offices of Chairman and Secretary. Section 5.2. Election, Term of Office and Vacancies. Except as otherwise provided in the IGA, the officers of the Commission shall be elected by the Board at its annual meeting and shall serve for a term of one (1) year commencing at the time of their election. There shall be no limitation on the election of the same Commissioner to the position of Director or, upon the election of the same as a Director, to the same office in successive years. Directors and officers shall continue to serve after the expiration of their respective terms until their respective successors are elected, or until said office has been declared vacant by the Board for any of the reasons set forth in Section 5.4 hereof. Section 5.3. Removal. Any officer elected by the Board may be removed pursuant to the vote requirement set forth in Section 5.12 of the IGA, whenever in the Board's judgment the best interests of the Commission would be served thereby. Such officer shall remain a Director unless otherwise removed pursuant to these By-laws or the IGA. Section 5.4. Vacancies. A vacancy in an office may occur by reason of resignation, death, permanent physical or mental disability rendering the person incapable of performing the duties of the office or removal from office pursuant to Section 5.3. Except as otherwise provided in the IGA, a vacancy in any office shall be filled in the same manner in which the office was originally filled. Section 5.5. Chairman. The Chairman shall be the chief executive officer of the Commission and shall preside at all meetings of the Board and the Commission. He may sign, with the Secretary, any deeds, mortgages, bonds, contracts, or other instruments which the Board has authorized to be executed, except in cases where the signing and execution thereof shall be expressly delegated, by the Board or by these By-laws to some other officer or agent of the Commission. In addition, the Chairman shall have such other duties as are normally performed by the presiding officer of a governmental entity or as may be prescribed by the Board from time to time. Section 5.6. Vice -Chairman. In the absence of the Chairman, the Vice -Chairman shall perform the duties of the Chairman, and when so acting, shall have all the powers of, and be subject to all the restrictions upon the Chairman. The Vice -Chairman shall perform such other duties as from time to time may be assigned to him by the Chairman or by the Board. Section 5.7. Secretary. The Secretary shall keep the minutes of the Commission's meetings and the Board's meetings in one or more books provided for that purpose; shall see that all notices are fully given in accordance with applicable law; shall keep the seal of the Commission and all papers belonging to the Commission; shall perform the duties ordinarily performed by the Secretary of the governing body of a governmental entity, and such other duties as from time to time may be assigned by the Chairman or by the Board. Section 5.8. Treasurer, The Treasurer shall give a bond for the faithful discharge of his duties in such sum and with such surety or sureties as the Board shall determine; shall have supervision and general responsibility for all funds and securities of the Commission, the receipt of monies due and payable to the Commission and for the deposit of all such monies in the name of the Commission in such banks, trust companies or other depositories as shall be authorized by the Commission; shall perform the duties ordinarily performed by the Treasurer of the governing body of a governmental entity, and such other duties as from time to time may be assigned to him by the Chairman or by the Board. ARTICLE VI COMMITTEES 6 Section 6. 1. Committee of the Whole. There shall be a Committee of the Whole, which shall consist of all of the Commissioners, and which shall perform such duties as authorized by the Chairman or by the Commission. Upon formation of the Board of Directors, the Committee of the Whole shall cease to exist. Section 6.2 Standing Committees. The Board shall, by resolution, form such standing committees as it deems appropriate or beneficial. Except as otherwise provided herein or in the IGA, the purposes for which such committees may be created, the number and identity of the persons serving on such committees and their terms of office shall be within the sound discretion of the Board. Each such committee shall have a chairman appointed by the Chairman of the Commission and which shall perform such duties as authorized by the Chairman or by the Board. Committee Chairman may create temporary sub -committees and appoint the members thereof. The Board shall also have the right, in its sound discretion, to expand, reduce or eliminate such committees, appoint additional persons to such committees, remove previously appointed persons from such committees as and when the Board deems such action to be appropriate or beneficial. Notwithstanding the above, there shall be created a standing committee of the Board entitled the Regional Transportation and Infrastructure Committee, pursuant to the provisions of Section 5.08 of the IGA. Section 6.3. Ad Hoc Committees. The Board shall form such ad hoc committees as it deems appropriate or beneficial. Each such committee shall have a chairman appointed by the Chairman of the Commission and which shall perform such duties as authorized by the Chairman or by the Board. Committee Chairman may create temporary sub -committees and appoint the members thereof. The Board shall also have the right, in its sound discretion, to expand, reduce or eliminate such committees, appoint additional persons to such committees, remove previously appointed persons from such committees as and when the Board deems such action to be appropriate or beneficial. ARTICLE VII PERSONNEL The executive, management and operating personnel of the Commission shall consist of such other officers, employees, agents, consultants and attorneys as may, from time to time, be authorized to be employed by the Board, including, but not limited to, the appointment of an Executive Director who shall serve as the principal administrator of the business of the Commission. The Executive Director shall serve for a term of one year. ARTICLE VIII CONTRACTS, LOANS, CHECKS AND DEPOSITS Section 8.1. Contracts. Subject to the limitations and requirements of Section 5.14 of the IGA regarding the Development Services Agreement, the Board, by ordinance or resolution, may authorize the Chairman, the Executive Director or any officerof the Commission to execute contracts and related documents and may further authorize the Secretary to attest to the execution of such contracts and related documents, and deliver any instrument in the name of, and on behalf of the Commission. Section 8.2. Loans. No loans shall be contracted on behalf of the Commission, and no evidences of indebtedness shall be issued in its name, unless authorized by ordinance or resolution of the Commission as provided for in the IGA. Section 8.3. Checks, Drafts, Etc. All checks, drafts or other orders for the payment of money, notes or other evidences of indebtedness issued shall, from time to time, be determined by ordinance or resolution of the Board; provided, however, that any and every person who as Commissioner, Director, officer, Treasurer or employee of the Commission is authorized by the Board to make or enter into contracts of deposit or withdrawal or to collect, receipt for or enter into contracts for the expenditure or disbursement of the funds of the Commission shall be named as principal upon a fidelity bond, with a corporate surety approved by the Board and in an amount which shall be hereafter specified by appropriate action of the Board. Any such bond shall fully protect and save harmless the Commission from any wrongful deposit, withdrawal, conversion, use or expenditure of funds of the Commission and shall be placed and remain on file in the principal office of the Commission. Section 8.4. Deposits. All funds of the Commission not otherwise employed shall be deposited, from time to time, to the credit of the Commission in such banks, trust companies or other depositories as the Board may select and as permitted by applicable law. Funds of the Commission not needed for current expenditure may be invested in such securities as the Board may authorize or direct, to the extent permitted by applicable law. The safekeeping of any such securities shall be a responsibility of the Treasurer of the Commission. ARTICLE IX FISCAL YEAR The fiscal year of the Commission shall begin on the 1 st day of January in each year, and end on the 31 st day of December of the same year. ARTICLE X SEAL The Board shall provide for an official seal of the Commission, which shall be impressed on the official copy of these Bylaws contained in the corporate minute book. ARTICLE XI CONFLICT WITH IGA In the event of any conflict between any of the terms, provisions or covenants contained in the IGA and any provision of these By-laws, as amended, the terms, provisions and covenants contained in the IGA shall be deemed, for all purposes, to control. ARTICLE XII 9 AMENDMENTS These By-laws may be altered, amended or repealed and new By-laws may be adopted by resolution passed by only in accordance with the voting requirements of Section 5.09 and Section 5.12 of the IGA and the provisions of Article I hereof at any meeting called for that purpose of the Commission. As amended and enacted by the Commission this day of January, 2004. {SEAL} EXHIBIT "C" "INITIAL PHASE" ELEMENTS OF THE SOUTH SUBURBAN AIRPORT 1. Airfield a. Single 10,000 ft. long CATI/CATII runway and parallel taxiway system, capable of handling FAA Group IV aircraft b. Apron area (933,000 sq. ft.) 2. Passenger terminal size (net area 97,817 sq. ft. — gross area 142,812 sq. ft.) and curbside length (690 ft) to include: a. Domestic / international area (11,727 sq. ft.) b. Holdroom area (9,881 sq. ft.), 5 gates and 5 loading bridges c. Domestic arrivals (15,725 sq. ft.) d. Baggage handling area (18,040 sq. ft.) e. Airline space area (18,084 sq. ft.), occupied by at least two airlines under a signatory use and lease agreement f. Other tenants area (3,337 sq. ft.) g. Airport Authority area (6,631 sq. ft.) h. Concessions area (14,391 sq. ft.), at least 50 percent occupied 3. Auto parking area (459,382 sq. ft.) 4. Ground access road requirements a. Upgrading of West Offner Rd. and South Will Center Rd. to access the terminal from Hwy. 57 and Dixie Hwy. b. Access to the ATCT and ARFF facilities with a separate security access, as well as access to Sanger Field and a service road entrance from West Eagle Lane. 5. All necessary public utilities