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HomeMy WebLinkAboutRESOLUTION - 53-24 - 9/10/2024 - KANNAVIR INNOVATIONS, LLC. CRAFT GROW FIRST AMENDMENTRESOLUTION NO. 53-24 A RESOLUTION AUTHORIZING THE MAYOR AND VILLAGE CLERK TO EXECUTE A FIRST AMENDMENT TO THE DEVELOPMENT AND OPERATING AGREEMENT FOR A CRAFT GROW FACILITY BETWEEN THE VILLAGE OF ELK GROVE VILLAGE AND KANNAVIR INNOVATIONS LLC. NOW, THEREFORE, BE IT RESOLVED 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 document marked: FIRST AMENDMENT TO THE DEVELOPMENT AND OPERATING AGREEMENT CRAFT GROW FACILITY a copy of which is attached hereto and made a part hereof as if fully set forth and the Village Clerk is authorized to attest said document upon the signature of the Mayor. Section 2: That this Resolution 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 loth day of September 2024 APPROVED this loth day of September 2024 APPROVED: Mayor Craig B. Johnson Village of Elk Grove Village ATTEST: Loretta M. Murphy, Village Clerk FIRST AMENDMENT TO DEVELOPMENT AND OPERATING AGREEMENT This First Amendment to Development and Operating Agreement ("First Amendment") made this _ /�i day of �t' , 2024 amends a certain Development and Operating Agreement dated April 14, 2020 between the Village of Elk Grove Village ("Village"), and Kannavir Innovations LLC ("Craft Grower"). RECITALS The Village and Craft Grower entered into that certain Development and Operating Agreement dated April 14, 2020 ("Agreement") to allow the Craft Grower to, upon obtaining the necessary License from the State of Illinois, operate a Craft Growing Facility in the Village. The Village and Craft Grower wish to amend the Agreement to reflect the agreements set forth herein. NOW, THEREFORE, in consideration of the above and pursuant to the terms set forth under the Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 1. Paragraph 6.01 is hereby deleted in its entirety and replaced with the following: 6.01 Villaize Fee. Craft Grower hereby acknowledges that the Village will incur certain extraordinary costs as a result of the location of a Craft Grow Facility in the Village's Business Park. Such extraordinary costs include, but are not limited to costs for increased Police protection and monitoring, increased Fire Department monitoring. as well as increased costs of other departments necessarily incurred to protect and maintain the health, safety and welfare of Village residents. In this regard, Craft Grower agrees to pay to the Village a fee, the designation of such as a sales or use tax. impact fee or otherwise to be determined at a later date giving due consideration to applicable State regulations concerning said fees. Irrespective of the determined designation, the Village Fee payable directly to Elk Grove Village shall be a designated percentage of the gross sales of the Craft Grower to all approved dispensing facilities. payable monthly. The Village Fee shall be as follows, where Year One shall mean the 12-month period beginning with the 1 st month for which the Agreement is in effect, and each subsequent Year shall be the 12- month period beginning with the corresponding month in subsequent calendar years: Year One: 1.0% of the gross sales of the Craft Grower Year Two: 1.5% of the gross sales of the Craft Grower Year Three:— 2.0% of the gross sales of the Craft Grower Year Four and thereafter: 3.0% of the gross sales of the Craft Grower. Craft Grower shall submit to the Village a copy of the tax return required to be filed with the Illinois Department of Revenue with respect to its operations at the Building, which return shall set forth the gross sales for each monthly period submitted. The return shall be accompanied by payment to the Village the fee as above set forth. Should the designation of the fee be challenged by the State or any other party for whatever reason, Craft Grower shall not object or challenge any re -designation, it being understood that the Village is entitled to such payment, irrespective of form or designation. 2. Paragraph 6.02 of the Agreement is hereby deleted in its entirety and replaced with the following: 6.02 Community Contributions. Starting on February 28, 2025, and prior to February 2811 each year thereafter, Craft Grower shall provide an annual donation in the amount of Seven Thousand U.S. dollars ($7,500) to the Village of Elk Grove Village for community events and outreach. In addition, Craft Grower shall provide an annual donation in the amount of Two Thousand Five Hundred U.S. dollars ($2,500) to the following organization: Kenneth Young Youth Center for drug and mental health treatment programs. The Village reserves the right to reallocate the annual donations based upon need and requirements. While the initial community groups are listed above, the Village reserves the right to modify the list of community organizations, and may also add additional community organizations while redistributing the allocation allotment. The Community Contributions, shall be subject to renegotiating by the parties on the tenth (1 Oth) anniversary of the Commencement Date, provided the Agreement is so extended. In the event the parties are unable to agree upon new terms within thirty (30) days after the tenth (I Oth) anniversary, then this Agreement shall terminate one hundred twenty (120) days thereafter. In no event shall any new Community Contribution be less than the current Total Community Contributions. The parties have executed this First Amendment as of the effective date. KANNAVIR INNOVATIONS LLC An Illinois Limited Liability Corporation By: VILLAGE OF ELK G VE U LLAGE, An Illinois Munici Corpo tion By: Its Mayor i ATTEST: By: /1C- 1 Al 1� :;�-4 Vil ge Clerk