HomeMy WebLinkAbout#4051 Tax Increment TIF 3 CERTIFICATE
THE UNDERSIGNED CERTIFIES THAT SHE IS THE CITY CLERK FOR THE CITY OF
CANTON,ILLINOIS,AND THAT THE CITY COUNCIL AT A REGULARLY CONSTITUTED
MEETING OF SAID CITY COUNCIL OF THE CITY OF CANTON ON THE 6114 DAY OF
DECEMBER, 2016 ADOPTED ORDINANCE NO.4051,A TRUE AND CORRECT COPY OF
WHICH IS CONTAINED IN THIS PAMPHLET.
GIVEN UNDER MY HAND AND SEAL THIS i4111.1 DAY OF DECEMBER, 2016.
(SEAL)
�
.
T:NA AVL ROC
CITY CLERK
CITY OF CANTON, ILLINOIS
ORDINANCE NO. 4051
AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A
PROFESSIONAL SERVICES AGREEMENT
for the
ESTABLISHMENT AND ANNUAL ADMINISTRATION OF
CANTON TAX INCREMENT FINANCING(TIP) DISTRICT NO.3
by and between
JACOB&KLEIN,LTD.AND
THE ECONOMIC DEVELOPMENT GROUP,LTD.
and
THE CITY OF CANTON,FULTON COUNTY,ILLINOIS
PASSED BY THE CITY COUNCIL
OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS,
ON THE 61/'DAY OF DECEMBER,2016.
PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY
COUNCIL OF THE CITY OF CANTON,FULTON COUNTY,III INOIS,
THIS 6^'DAY OF DECEMBER,2016
EFFECTIVE: DECEMBER 6,2016
ORDINANCE NO.4051
CITY OF CANTON,ILLINOIS
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF A PROFESSIONAL SERVICES AGREEMENT
for the
ESTABLISHMENT AND ANNUAL ADMINISTRATION OF
CANTON TAX INCREMENT FINANCING(TIF)DISTRICT NO.3
by and between
JACOB&KLEIN,LTD.AND THE ECONOMIC DEVELOPMENT GROUP,LTD.
•
and
THE CITY OF CANTON,FULTON COUNTY,ILLINOIS
BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF CANTON
THAT:
1. The City of Canton,Fulton County,Illinois(the"City"),wishes to establish a Tax Increment
Financing District to be located within Canton, Illinois pursuant to the Tax Increment
Allocation Redevelopment Act,65 ILCS 5/11-74.4-1 ea seq. (the"Act').
2, The City wishes to engage the professional services of Jacob & Klein, Ltd. to tender
administrative services and legal advice and The Economic Development Group,Ltd.to render
technical advice to assist the City in establishing CANTON TAX INCREMENT
FINANCING(TIF)DISTRICT NO.3 pursuant to the Act
3. The Mayor is hereby authorized and directed to enter into and execute on behalf of the City said
Professional Services Agreement and the City Clerk of the City of Canton is hereby authorized
and directed to attest such execution.
4. The Professional Services Agreement shall be effective on the date of its approval by the City.
5. This Ordinance shall be in full force and effect from and after its passage and approval as
required by law.
Age 20 e
PASSED,APPROVED AND ADOPTED by the Mayor and City Council of the City of Canton this
66 day of December,2016 and filed in the office of the City Clerk of said City on that date.
MAYOR&ALDERMEN AYES NAYS ABSTAIN/ABSENT
Ryan Mayhew X
Tad Putrich X ABSTAIN
Craig West X
Gerald Ellis X
Justin Nelson X
John Lovell X
Angela Hale X
Jeff Piltz,Mayor
TOTALS: 6 0 1
APPROVED:
Mayor
Ai1TES11: /� /'
City Clerk
I.StIIblT '. Lunn; Pmfesuonat Services Agreement
Page3r'1
EXHIBIT A
PROFESSIONAL SERVICES AGREEMENT
for the
ESTABLISHMENT AND ANNUAL ADMINISTRATION OF
CANTON TAX INCREMENT FINANCING(IiP)DISTRICT NO.3
by and between
JACOB&KLEIN,LTD.AND
THE ECONOMIC DEVELOPMENT GROUP,LTD.
and
THE CITY OF CANTON,FULTON COUNTY,ILLINOIS
Pca 4 of I
PROFESSIONAL SERVICES AGREEMENT
for the
ESTABLISHMENT AND ANNUAL ADMINISTRATION OF
CANTON TAX INCREMENT FINANCING (TIF) DISTRICT NO.3
by and between
JACOB&KLEIN,LTD.AND
THE ECONOMIC DEVELOPMENT GROUP,LTD.
and
THE CITY OP CANTON,ILLINOIS
DECEMBER 6,2016
PROFESSIONAL SERVICES AGREEMENT
for the
ESTABLISHMENT AND ANNUAL ADMINISTRATION OP
CANTON TAX INCREMENT FINANCING(TIP)DISTRICT NO.3
by and between
JACOB&KLEIN,LTD.AND
THE ECONOMIC DEVELOPMENT GROUP,LTD.
and
THE CITY OF CANTON,ILLINOIS
THIS AGREEMENT is entered into this 0 day of December,2016,by and between the CITY
OF CANTON,ILLINOIS("CITY");and JACOB&KLEIN,LTD.,Bloomington,IWnois("J&K");
and THE ECONOMIC DEVELOPMENT GROUP,LTD.,Bloomington,Illinois("EDG").
WHEREAS,the City wishes to establish a Tax Increment Financing District pursuant to the Tax
Increment Allocation Redevelopment Act(the"Act'),65 ILCS 5/11-74.41 et seq.to be located in the
City;and
WHEREAS,the City desires to engage the professional services of J&K to render legal advice and
EDG to render technical advice to assist the City in Establishing and Annually Administering a Tax
Increment Financing Redevelopment Plan,Area and Projects to be known as the CANTON TQAX
INCREMENT FINANCING(TIP)DISTRICT NO.3 (referred herein as"Canton TIF District
No.3"or the'TIF District');and
WHEREAS,the proposed study boundary for the TIE District is currently illustrated and attached
hereto.as Exhibit L
NOW,THEREFORE,the Parties agree as follows:
Sl. City to Engage J&K and EDG. The City agrees hereby to engage the services of J&K and
EDG for the purposes set forth herein and J&K agrees to provide all legal advice to EDG and
the City to prepare or coordinate the preparation of Reports,the TIP District Plan,Notices and
Documentation(including those reports prepared by other professionals)necessary to complete
the Establishment and the Annual Administration of the TIF District Plan,Area and Projects as
required pursuant to State Statutes and as outlined below in Section Z,Scope oJY:o/enionel.l'erricer.
1.1 The Parties agree that J&K,as Attorneys,will undertake those responsibilities that require
legal advice or preparation under this Agreement on behalf of the City or EDG. EDG is a
separate corporate entity established by Thomas N.Jacob and is owned in whole or in part
Cry(Carton Tax Incncra Ftnenneg rrTF)Dirh,1 No. 3 Pay 1(11
Pref i rrivaa7 Smitm Agreement
by him. He is also the principal owner of Jacob&Klein,Ltd. Q&K). The City is entering
into this Agreement voluntarily and with informed consent after the opportunity to consult
with independent counsel as to the ownership of both entities by Thomas N.Jacob.
1.1-1 J&K may,in addition, be retained by the City as its special attorney to perform other
professional services outside the Scope of Services set forth herein, including
representation of the City before State agencies or the Illinois Legislature. Such
representation shall be at the Attorney's then current hourly rate for similar services or as
otherwise agreed. Any such representation shall be pursuant to a written agreement
between the Parties.
A. Legal services provided by J&K and/or consulting services provided by EDG with
regard to financing,including the issuance of Bonds involving the TIF District,will
be billed separately from this Agreement and subject to the terms of any agreements
related to such financing or Bonds.
B. This Agreement does not include representation in any Court case resulting from the
establishment of the TIF District Plan,Area or Projects or the Annual Administration
of the TIF District.
1.2 The total Fees and Reimbursable Costs to be paid hereunder by the City to J&K and EDG,
when billed by each of the separate entities,will not be duplicated and will not exceed the total
Fees and Reimbursable Costs provided for herein.
1.3 The Parties agree that pursuant to Staloff 5/11-74.4-30J(1)of the Act,all Professional Fees
and related Costs incurred by the City for Establishing and Annually Administering the TIF
District are TIF eligible project costs and are fully reimbursable to the City from the real estate
tax increment generated by the TIF District.
1.4 The City hereby acknowledges that J&K and EDG are not responsible for monitoring and
documenting matters relating to compliance with the Illinois Prevailing Wage Act,the Illinois
Procurement Code, and any other wage and/or employment laws, to the extent such are
applicable to any public or private project undertaken within the TIP District Redevelopment
Project Area or the Area as may be amended in the future.
City ofCanto,Tax!nomad Finargng(17F)Dual'No. 3 Page 2 of 12
Prvkui••nal Snvirer.. ipn'.went
s2. Scope of Professional Services.
2.1 Establishment of TIF District.
2.1-1 Services. J&K and EDG will provide services as outlined in Exhibit2to Establish the
TIF District.
2.1-2 Term.This Professional Services Agreement for the Establishment the TIF District shall
commence immediately and shall continue until the presentation of the TIP Plan and
appropriate ordinances to the City Council for the Establishment of the TIF District. It
is anticipated that the TIF District will be established on or before February 2B, 2017
barring unexpected complications.
2.1-3 Payment of Fees and Reimbursable Costs. The total Professional Fees to be paid by
the City to J&K and EDG for the Establishment of the TIF District are Twenty-Five
Thousand and 00/100 Dollars($25,000.00)plus all Reimbursable Costs incurred in the
establishment of the TIF District,and are to be paid as follows:
A. J&K shall be paid a total sum of Ten Thousand and 00/100 Dollars($10,000.00)
upon execution of this Agreement;and
B. J&K and EDG shall be paid upon delivery of the TIP District Plan to the City an
additional sum of Ten Thousand and 00/100 Dollars ($10,000.00) plus
Reimbursable Costs incurred up to the date of delivery of the draft TIP Plan to the
City,and
C. The balance of the Professional Fees, Five Thousand and 00/100 Dollars
($5,000.00), and the remaining balance of Reimbursable Costs relating to the
establishment of the TIE District shall be paid when the final TIP Plan and related
Ordinances ere presented to the City Council for passage.
D. All Reimbursable Costs incurred by J&K and EDG as part of the Establishment of
the TIF District shall be reimbursed to J&K and EDG by the City, including all
reasonable travel and subsistence expenses while away from Bloomington,Illinois,
performing said Professional Services described in Exhibit 2 and subject to the
following condirions:
O All travel will be reimbursed for mileage at the maximum rate permitted by
Cii&fCaaton rax lxmx«1 Firand g(rrr)Du rrct Pio. . Page 3 o(12
Anja .,sai Semites 1,.•.ient
Internal Revenue Service Rules and Regulations at the time of service. All other
costs which are incidental to the establishment of the TIP District,including staff
support costs, photocopying and report binding, mailings, postage, and
telecommunication charges,shall be reimbursed at the current rates then charged
by J&K and EDG.
G. The City understands and acknowledges that J&K and EDG will rely on the work of
other professionals,including the City's Engineers and Attorney,to prepare reports
and documentation needed for the TIP District Plan,Projects and Reports and other
necessary documents; and that J&K and EDG shall rely on their professional
expertise to prepare the TIP District Plan and present material and information
necessary to the Establishment of the District. The City further understands that it
may directly incur additional fees and costs for the Establishment of the TIF District
which result from the involvement of other(i.e.,non-J&K/EDG)professionals.
2.2 Annual Administration of TIP District.
2.21 Services. 1&K and EDG will provide services as outlined in Exhibit 3to Annually
Administer the TIE District.
A. On an annual basis,all of the legal review of documents and matters relating to the
statutory compliance of public and private development activities occurring within the
TIF District are provided by J&K in the Annual Administrative Fee. Other
administrative functions will be provided by EDG. EDG will also provide financial
feasibility analyses for new proposed private developments. J&K will provide legal
services required in the preparation of new Redevelopment Agreements and other
legal documents and legal opinions.
B. To the extent possible, J&K and EDG will attempt to include in Private
Redevelopment Agreements provisions allocating a portion of the Annual
Administrative Fees,Annual Costs and other fees to those Private Developments on
apro-rata basis determined by the incrementgenerated by those Developments which
have Redevelopment Agreements.
2.2-2 Term. The term of the Annual Administrative Services provided in this Agreement shall
be for three(3)years(Fiscal Years 2017,2018 and 2019)and shall commence immediately
following the establishment of the TIE District. Thereafter, this Agreement shall
automatically renew at the end of each three-year period during the life of the District as
G't o/Canton'i,:InmunJ I n:arr ig(llb) 7irlr.'J!So. 3 Page 4 of 12
Pm,.;uncal Serving Agreement
a roll-over, for a new period of three years, absent notice of non-renewal as provided
herein. This Agreement as it relates to arcual administrative services may be terminated
by written notice of non-renewal from the City to J&K and EDG no later than one(1)
year prior to the end of each contract period. Upon receiving written notice of non-
renewal,J&K and EDG is to provide to the City a final invoice for professional fees and
costs incurred as of the date of the termination.
2.2-3 Payment of Annual Administrative Fee and Reimbursable Costs.
A. The total Annual Administrative Fee to be paid by the City to J&K and EDG for the
Annual Administration of the TIFDisttitx shall bean annual fee ofThree-Thousand
Five-Hundred and 00/100 Dollars ($3,500.00).
B. On an annual baths,the Annual Administrative Fee shall be annually increased by the
Consumer Price Index - All Urban Consumers IL-IN-WI,using 2016 as the base
year.
C. In addition to the Annual Administrative Fee,all Reimbursable Costs incurred by J&K
and EDG as part of the annual administration of the TIF District shall be reimbursed
to J&K and EDG by the City,including all reasonable travel and subsistence expenses
while away from Bloomington, Illinois, performing said Professional Services
described in Exhibit Sand subject to the following conditions:
0 All travel will be reimbursed for mileage at the maximum rate permitted by
Internal Revenue Service Rules and Regulations at the time of service. All other
costs which are incidental to the establishment of the TIF District,photocopying
and report binding,mailings,postage,and telecommunication charges,shall be
reimbursed at the current rates then charged by J&K and EDG.
Cu) During the course of providing administrative services,J&K and EDG will enlist
the aid of their Staff for additional support services in order to properly perform
the duties and obligations required under this Agreement. The cost to J&K and
EDG for said services shall be charged to the City on a cost-reimbursement basis
at customary rates charged by J&K and EDG. For purposes of this Agreement,
Staff Costs do not relate to the time of J&K Attorneys Thomas N.Jacob,Herb
Klein,and Nic Nelson,or time incurred by Steven Kline(EDG)while performing
said professional services described in Exhibit .2 The total Annual
Administrative Costs relating to Staff Costs shall not annually exceed One
Thousand Five Hundred and 00/100 Dollars($1,500.00) without consent of
Gly of Codes Tar It ruvnl (11F)Dir tie!PI 3 Pays 5 e12
P, ier:lima!S'maasAgreement
the City in advance of such additional services being performed.
D. For Annual Administrative Fees and Annual Administrative Costs,J&K and EDG
shall bill the City on a quarterly basis.
(i) For purposes of this Agreement,quarterly billings shall occur as follows.
January-March Billed in April
April June Billed in July
July-September Billed in October
October-December Billed in December
(ii) Annual Base Administrative Fees shall be adjusted annually for the Consumer
Price Index -All Utban Consumers IL-IN-WI,using 2016 at the base year and
prorated in equal installments for purposes of determining quarterly billings.
E. The City understands that J&K and EDG shall rely on the work of others,including
the City's Auditors, Attorney,and Clerk; the Fulton County Assessor and County
Clerk; the Illinois Department of Revenue (IDOR); the Illinois Department of
Commerce and Economic Opportunity(DCEO);the Illinois Comptroller's Office
and the Illinois State Board of Education for information aim documentation
necessary for the Annual Administration of the TIF District. The City further
understands that it may directly incur additional fees and costs for the Annual
Administration of the TIF District which result from the involvement of other(non-
J&K/EDG)profersionais.
53. Amendments to thin Agreement. The Parties hereto may amend this Agreement at any time
by their mutual consent which amendment must be in writing and executed by the Parties.
54. Entire Agreement. The Terms and conditions set forth in this Agreement supercede all prior
oral and written understanding and constitute the entire Agreement between the Parties with
respect to the subject matter hereof.
55. Binding Upon Successors in Interest. This Agreement shall be binding upon all the Parties
hereto and their respective heirs, successors, administrators, assigns, or other successors in
interest
City of C'elrn Tax Inereinenl Enuring(I11)Di•iriet No. 3 Peg 6 112
Pi.±n,e r+mal Smear Ageement
s6. Notices. Notices or demands hereurder shall be in writing and shall be served(a)by personal
delivery,or(b)certified mail,return receipt requested to:
The City of Canton Jacob&Klein,Ltd.and
%Canton City Clerk The Economic Development Group,Ltd.
2 Main Street 1701 Clearwater Avenue
Canton,Illinois 61520 Bloomington,Illinois 61704
Ph:(309)647-0065 Ph: (309)664-7777
or to the last known address of either party or to the address provided by any assignee if such
address has been given in writing.In the event said notice is mailed,the date of service of such
notice shall be deemed to be three(3)business days after the date of delivery of said notice to the
United States Post Office.
§B. Severability. If any provision of this Agreement is held to be invalid,the remainder of this
Agreement shall not be affected thereby.
59. Choice of Law/Venue.This Agreement shall be governed by and construedin accordance with
the laws of the State of Illinois with venue lying in the Circuit Court of McLean County,Illinois.
[The remander of this page it intentionalf blank]
Ciy of Canon Tar nneriat Fir:wa.'4?(17F)1 ..;:a No..3 Paw 7 of 12
1'8n/r..ultno!Settdres Ign./meat
IN WITNESS WHEREOF,the City,J&K and EDG have executed this Professional Services
Agreement on the day and year above written.
THE CITY OF CANTON an Illinois JACOB &KLEIN,LTD.,an Illinois
Municipal Corporation: Professional Service Corp.:
2 North Main Street 1701 Clearwater Avenue
Canton,Illinois 61520 Bloomington,IL 61704
Phone: (309) 647-0065 Phone:(309)6647777
Fax: (309)647-0065 Fax: (309 7878
By: — By: hairman
Mayor / h
) • )
) i
i
Aucstt {4' !P-- �? �; THE ECONOMIC DEVELOPMENT
City Clerk GROUP,LTD.,an Illinois Corporation:
1701 Clearwater Avenue
Bloomington,IL 61704
Phone: (309) 664-7777
Fax:(309)6 7878
By:.
President SS ��
\\rd<mV l\CANTON\CANTON.3-VII]1S\PSA\prop ,-_Gunton'TIE 3_PS&21 Nov 21116.wpa
City al Carton Tax Lament Finandn;(HF)Dulriallo.1 Age 800.12
Profwiono/Semen Agreement
EXHIBIT I
PROPOSED TIP DISTRICT STUDY BOUNDARY
PROPOSED CANTON TIE DISTRICT NO.3 STUDY BOUNDARY
and CANTON TIF DISTRICT 1 AND TIF DISTRICT 2 AMENDED AREAS
(111WITTATICN FOR DISCUSSION PURPOSES ONLY.NOVEMBER It 1018
E.
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Ciy of Canton Tex Inmenent booming am Dimiet No.3 Page 9°f 12
P�r/i-.ccina/S'emirer Agnsmen!
EXHIBIT 2
ESTABLISHMENT OP CANTON TIP DISTRICT NO.3
Services to be provided to the City by J&K and EDG relating to the Establishment of Canton TIP
District No.3 are set forth as follows:
1. Create estimated TIF District Time Line.
2. Work with local elected officials,City staff and engineers to define the Redevelopment Project
Area(TIE District Boundary).
3. Evaluate the statutory and financial feasibility of creating the TIP District.
4. Consult on any necessary Annexation Agreement(s)with Developer and City Attorney.
5. Create the TIP District Redevelopment Plan. EDG will collect a variety of information from the
City and, with J&K, draft the TIF Redevelopment Plan. Local officials will provide historical
information,access to legal descriptions,street maps/Sidwell maps,engineering opinion letters,
descriptions and estimated costs of potential public and private projects, potential private
development build-out rates,property tax bills,assessment data,and identification of officials'
properties and other City records as necessary to establish the TIF District.
6. Organize and conduct the first meeting of the Joint Review Board.
7. Consult with the School District to determine and analyze the potential impact, evaluate
alternative approaches for assisting the school district and prepare necessary Intergovernmental
Agreements,if required.
8. Assist the City to negotiate Redevelopment Agreements with potential Developers.
9. Establish an Interested Parties Registry.
10. Prepare and send all Notices to taxing bodies,taxpayers,residences within 750 feet of proposed
TIF District,and to those individuals or organizations listed on the Interested Parties Registry.
11. Prepare and arrange for tie City Clerk all publications required of the City.
12, Conduct Public Hearing to review the proposed TIF District with the public.
13. Draft and present to the City all requited Ordinances to create the TTP District.
City of Caoron Ta:'nehmen/Financing(77F)Dirdid No. 3 Page 10 of 12
l'oviLavonal Senna: totuuent
EXHIBIT 3
ANNUAL ADMINISTRATION OP CANTON TIP DISTRICT NO.3
Services to be provided to the City by J&K and EDG relating to the Annual Administration of
Canton TIF District No.3 arc set forth as follows:
1. Provide the City with on-call legal and consulting services on matters relating to the TIF District
as needed.
2. Consult with and coordinate administrative activities with City's Administrator, City Clerk,CPA,
Mayor and other officials as required.
3. Track and monitor the growth of annual Real Estate and Sales Tax (f appropriate)Increments
within the TIF District
4. Negotiate terms of TIE Reimbursements and prepare Redevelopment Agreements with
Developers.
5. Consult with Developers regarding TIP Redevelopment Agreements and Reimbursements.
6. Communicate with Developers and the County Supervisor of Assessments to review
improvements,paid tax bills and changes in Equalized Assessed Valuations.
7. Advise City on matters relating to Developer Reimbursements(e.g.,verify paid property tax bills
and eligible project costs,and advise the municipality to make payments).
8. Provide City with a Requisition/Payment Approval process.
9. Advise City on matters relating to payments to other taxing bodies under Intergovernmental
Agreements.
10. Prepare TIF District Annual Reports for submission to City and other taxing districts.
Il. Prepare,certify,and submit AnnualTIPDistrict Reports tothe Office of the Illinois Comptroller.
12. Provide legal opinion (j&K) on matters relating to Annual Reports to State Comptroller as
required by the TIF Act
13. Conduct City's Annual Joint Review Board Meetings with Taxing Bodies as required by the TIE
Act
14. Work with the School District(s) to determine and analyze potential financial impects,evaluate
alternative approaches for assisting the school district and prepare necessary Intergovernmental
Agreements.
Cit.o'Csv/or:Tax loom tem Eiwnaig(7F)Dimirt do. 3 Page 11 of 12
P.•ni4nena/Servimr.9gtwment
15. Prepare TIF Increment Projections for City and Reimbursement Estimates for Developers.
16, If EDG is engaged as the City's Registered Municipal Advisor,EDG shall assist the City with:
analyzing the potential use of TIP Revenue Bonds, Developer Notes and other financing
alternatives; and arranging for Bond Counsel when required by City or Developer. All
professional services related to the issuance of Bonds will be additional and charged at the then
applicable rates pursuant to a separate professional services agreement.
[Tbe remainder qt this Age u intenhronapy blartk.]
Cig of CORMS Tax homely Finarrnng(I f )Drrnrd IVa 3 Pep t2 o(I2