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HomeMy WebLinkAbout#4123 Aprroving and Authorizing the execution of a Redevelopment Agreement 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 4T" DAY OF DECEMBER, 2018 ADOPTED ORDINANCE NO. 4123,A TRUE AND CORRECT COPY OF WHICH IS CONTAINED IN THIS PAMPHLET. GIVEN UNDER MY HAND AND SEAL THIS DAY OF DECEMBER, 2018. (SEAL) DIAN Y-ROCK CITY CLERK CITY OF CANTON, ILLINOIS ORDINANCE NO. 4123 AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A TIF REDEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF CANTON,FULTON COUNTY,ILLINOIS AND THE VENUE, LLC PASSED BY THE CITY COUNCIL OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS, ON THE 4TH DAY OF DECEMBER, 2018 PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY COUNCIL OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS, THIS 4TH DAY OF DECEMBER, 2018 EFFECTIVE: DECEMBER 4, 2018 CITY OF CANTON ORDINANCE NO.4123 CANTON 1-DOWNTOWN/5TH AVENUE TAX INCREMENT FINANCING(TIF) DISTRICT AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A REDEVELOPMENT AGREEMENT by and between THE CITY OF CANTON and THE VENUE,LLC ADOPTED BY THE CORPORATE AUTHORITIES OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS, ON THE 4TH DAY OF DECEMBER,2018. CITY OF CANTON,ILLINOIS: ORDINANCE NO. 4123 CANTON 1-DOWNTOWN / 5T"AVENUE TAX INCREMENT FINANCING (TIF)DISTRICT AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A REDEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF CANTON AND THE VENUE,LLC BE IT ORDAINED BY THE CITY OF CANTON, FULTON COUNTY, ILLINOIS THAT: 1. The Redevelopment Agreementwith The Venue,LLC,an Illinois Limited liability Company (Exhibit A attached) is hereby approved. 2. The Mayor is hereby authorized and directed to enter into and execute on behalf of the City said Redevelopment Agreement and the Cin'Clerk of the City of Canton is hereby authorized and directed to attest such execution. 3. The Redevelopment Agreement shall be effective the date of its approval on the 4`h day of December,2018. 4. This Ordinance shall be in full force and effect from and after its passage and approval as required by law. [tbe remainder of this page is intentionally blank] PASSED, APPROVED AND ADOPTED by the Corporate Authorities of the City of Canton, Fulton County,Illinois,on the 4'h day of December,2018,and deposited and filed in the Office of the City Clerk of said City on that date. MAYOR&ALDERMEN AYE VOTE NAY VOTE ABSTAIN/ABSENT Alderman Ryan Mayhew X Alderwoman Angie Lingenfelter X ABSENT Alderman Tad Pumch X ABSTAIN Alderman Craig West X Alderman Quin Mayhew X ABSENT Alderman Justin Nelson X Alderman John Lovell X Alderwoman Angela Hale X Kent A.McDowell,Mayor TOTAL VOTES 5 0 3 APPROVED: 4AA49L l � ,Date / /2018 Mayor,City of Canton ATTEST: (:'I(- - _ ,Date: /2018 City Jerk, tty of Canton ATTACHMENTS: EXHIBIT A REDEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF CANTON AND THE VENUE,LLC. EXHIBIT A REDEVELOPMENT AGREEMENT by and between CITY OF CANTON and THE VENUE,LLC CANTON 1-DOWNTOWN / 5T"AVENUE TAX INCREMENT FINANCING (TIF) DISTRICT TAX INCREMENT FINANCING DISTRICT REDEVELOPMENT AGREEMENT by and between CITY OF CANTON, FULTON COUNTY, ILLINOIS and THE VENUE, LLC CANTON 1 - DOWNTOWN / 5T"AVENUE TAX INCREMENT FINANCING DISTRICT DECEMBER 4, 2018 TIF REDEVELOPMENT AGREEMENT by and between CITY OF CANTON and THE VENUE,LLC CANTON 1-DOWNTOWN / STH AVENUE TIF DISTRICT THIS TIF REDEVELOPMENT AGREEMENT(including Exhibits)('Agreement")is entered into this 4'h day of December, 2018, by the City of Canton (the "City'), an Illinois Municipal Corporation,Fulton County,Illinois,and The Venue,LLC,an Illinois Limited Liability Company(the "Developer�. PREAMBLE WHEREAS, the City has the authority to promote the health, safety,and welfare of the City and its citizens and to prevent the spread of blight and deterioration and inadequate public facilities by promoting the development of private property thereby increasing the tax base of the City and providing employment for its citizens;and WHEREAS, pursuant to the Tax Increment Allocation Redevelopment Act,65 ILCS 5/11-74.4.4 er seq.,as amended(the"Act"),the City has the authority to provide incentives to owners or prospective owners of real prop"to develop,redevelop,and rehabilitate such property by reimbursing the owners for certain costs from resulting increases in real estate tax revenues; and WHEREAS, on July 6, 2004, recognizing the need to foster the development, expansion and revitalization of certain properties which are vacant,underurilized or undeveloped,the City adopted Tax Increment Financing under the Act,approved a Redevelopment Plan and designated a Redevelopment Area known as the Canton International Harvester Site ProjectAreaTIF District(currently known as the"Canton 1 -Downtown/5"Avenue TIFDistrict)(hereinafter referred to as the"TIF District"); and WHEREAS,one such property is to be acquired by the Developer and located at 23 W.Pine Street, Canton,Illinois,currently Parcel Identification Numbers 09-08-27-414-017,09-09-27-414-019,09-08- 27-414-020, 9-08-27-414-017,09-08-27-414019,09-08- 27-414-020, 09-08-27-414-021, 09-08-27-414-022, and 09-08-27-414-023 (the "Property") and said Property is in need of development and integral to the development of the TIF District,and WHEREAS,the Developer will acquire said Property and will proceed with plans to renovate and rehabilitate the existing building located thereon for operation of a banquet hall (the"Project"),and is doing so based upon incentives made available by the City;and WHEREAS,it is the intent of the City to encourage economic development which will increase the real estate tax, which increased taxes will be used, in parr, to finance incentives to assist this Developer's Project; and WHEREAS, the City has the authority under the Act to incur Redevelopment Project Costs ("Fligible Project Costs") and to reimburse Developer for Snell costs;and 17, I ....., I.L.C. Red,,e,npnrtultiv.w Page 1 of 13 WHEREAS, pursuant to Illinois Statute 65 ILCS 5/8-1-25, the City has the authority to appropriate and expend funds for economic development purposes,including without limitation, the malting of grants to any commercial enterprise that is necessary or desirable for the promotion of economic development within the municipality;and WHEREAS,the Developer has requested that incentives for the development be provided by the City from incremental increases in real estate taxes of the City and its Project and that such incentives include the reimbursement of'IIF Eligible Project Costs;and WHEREAS, the City has determined that this Project requires the incentives requested and that said Project will,as a part of the Plan,promote the health,safety and welfare of the City and its citizens by attracting private investment to prevent blight and deterioration,to develop underutilized property, and to provide employment for its citizens and generally to enhance the economy of the City; and WHEREAS,the City and the Developer(the"Parties") have agreed that the City shall provide a forgivable loan to the Developer for the reimbursement of a portion of the Developer's TIF Eligible Project Costs(as set forth in Exhibit"I"attached hereto)of an amount not to exceed Seventy-Five Thousand and No/100 Dollars ($75,000.00)to be paid from the Canton TIF District 1 Special Tax Allocation Fund as specified below in Section C,Inrontiver. In exchange for the loam,the Developer shall issue a promissory note to the City in the amount of$75,000 as set forth in Exhibit "2"attached hereto; and WHEREAS, in no event shall cumulative maximum reimbursements for the Developer's TIF Eligible Project Costs under this Agreement exceed Seventy-Five Thousand and 00/100 Dollars ($75,000.00);and WHEREAS, the City is entering into this Agreement to induce the Developer to acquire the Property and complete the Project;and WHEREAS, in consideration of the execution of this Agreement and in reliance thereon, the Developer has proceed with its plans to complete the Project as set forth herein. AGREEMENTS NOW, THEREFORE, for good and valuable consideration, the receipt of which is acknowledged, the Parties agree as follows: A. PRELIMINARY STATEMENTS 1. The Parties agree that the matters set forth in the recitals above are true and correct and form a part of this Agreement, and are to he construed as binding statements of this Agreement. 2. Any terms which are not defined in this Agreement shall have the same meaning as the} do in the Act,unless indicated to the contrarv. 3. The Developer shall remain in compliance with all municipal ordinances relating to property development,property condition,zoning,subdivision and building codes. Failure to cure the violation of any such ordinance within thirty(30)days upon being provided written notice of 7 I.venue, 0,C. 12ed omni...../lgit.,nl page 2 of 13 the same by the City shall be cause for the City to declare the Developer in Default and unilaterally terminate this Agreement,except where such failure is not reasonably susceptible to cure within such 30-day period,in which case the Developer shall have such additional time to cure as is reasonably necessary, provided that the Developer has commenced such cure within such 30-day period and continues to diligently prosecute the same to completion. 4. The Developer shall complete the Project on or before June 30, 2019, subject to extension due to Force Majeure (defined below). 5. Each of the Parties represents that it has taken all actions necessary to authorize its representatives to execute this Agreement. B. ADOPTION OF TAX INCREMENT FINANCING The City has created a Tax Increment Financing District known as the "Canton 1 - Downtown / 5" Avenue TIF District" which includes the Developer's Property. The City has approved certain Redevelopment Project Costs,including the types described in Exhibit`7"for the Developer's Project. C. INCENTIVES In consideration for the Developer completing its Project, the City agrees to extend to the Developer the following incentives to assist the Developer's Project: 1. In exchange for a promissory note to be issued by the Developer to the City as set forth in Exhibit 12"attached hereto,the City agrees to loan to the Developer(also,the"Borrower") the sum of Seventy-Five Thousand and 00/100 Dollars($75,000.00)from the Canton TIF District 1 Special Tax Allocation Fund to assist the Developer with the purchase and renovation of the Property. The terms and conditions for the loan shall be as follows: a. The full Loan amount 4$75,000.00 shall be paid to the Developer from the Canton TIF District 1 special'Pax Allocation Fund within thirty (30) clays following the execution of this Agreement, or upon verification of a minimum of$75,000 of TIF Eligible Project Costs pursuant to Section I- below, whichever occurs later. i. The City shall be undo no obligation to disburse any of the Loan proceeds to the Developer as ser forth hemunder until such time as the Developer has acgnired fee simple title to the Property and a deed naming the Developer as the owner thereof is filed with the Fulton County Recorder's office. b. A separate PromissonNote is attached hereto as Exhibit 1'2". c. The interest rate For the note shall be Three Percent(3%) per annum, and shall begin to accrue on the date the loan Funds are disbursed to the Developer. d. The term of the note shall expire on the Fifth (5") anniversary of the date the loan funds ,in, disbursed to the Dcvcloper hereunder. c. One-Fifth (1/5) of the principal amount of the loan, plus any accrued interest thereon, lo" I nz5 JLC g do"lop""rl_-Igi'raurnl Page 3 of 13 shall be forgiven annually by the City commencing one (1) year from the date the loan funds are disbursed to the Developer and continuing on said date of each year thereafter for the term of the loan,provided the Developer has been at all times in full compliance with every term of this Agreement,including the following. i. The Developer shall maintain constant and continuous operation of The Venue banquet facility located on the Property from the time the Project is complete and continuing for the term of this Agreement. ii. The Developer shall annually provide verification of the payment of the real estate taxes for the property during the term of this Agreement. iii. The Developer does not file for bankruptcy or otherwise become insolvent during the term of this Agreement. iv. The Property is not the subject of foreclosure proceedings during the term of this Agreement. v. The Developer does not sell or otherwise convey the Property during the term of this Agreement. vi. The Developer shall carry adequate insurance on the Property to cover the replacement cost of the completed Project.. f. As signatories to this Agreement and the Note,]ed Rhoades, Hady Rhoades, and Graham Hospital Foundation shall be guarantors for the Note and shall be jointly and severally liable in the event of a default thereof by the Developer. D. LIMITATION OF INCENTIVES TO DEVELOPER 1. In no event,shall the maximum cumulative reimbursements for the Developer's TIP Eligible Project Costs pursuant to Section C(1)above exceed Seventy-Five Thousand Dollars and No Cents ($75,000.00) as set forth herein. 2. It is not contemplated that,nor is the City obligated,to use any of its proportionate share of the monies generated by this Project for any of Developer's Eligible Project Costs,but rather the City shall use such sums for any purpose under the Act as it may in its sole discretion determine. E. PAYMENT OF ELIGIBLE PROJECT COSTS I. Payment to the Developer for TIF Eligible Project Costs as set forth by the Act shall be made by a Requisition for Payment of Private Development Redevelopment Costs ("Requisition") (attached hereto as Exhibit"J")submitted from time to[line toJacob&Klein,Ltd.and the Economic Development Group,Ltd. (collectively the"Administrator") and subject to their approval of the costs and availability of funds in the Special Account. 2. All Requisitions must be accompanied by verified bills or statements of suppliers,contractors, The 6'n"I.LC: '1P."/ Page 4 of 13 or professionals together with mechanic's lien waivers (whether partial or full) from each of the parties entitled to a payment that is the subject of the Requisition as required by the City. 3. The Administrator shall approve or disapprove a Requisition by written receipt to the Developer within thirty (30) business days after receipt of the Requisition. Approval of the Requisition will not be unreasonably withheld. If a Requisition is disapproved by the Administrator,the reasons for disallowance will be set forth in writing and the Developer may resubmit the Requisition with such additional information as may be required and the same procedures set forth herein shall apply to such re-submittals. 4. All TIF Eligible Project Costs approved shall then be paid by the City pursuant to the terms set forth in Section Cabove. 5. The Parties acknowledge that the determination of TIF Eligible Project Costs,and,therefore, qualification for reimbursement hereunder are subject to changes or interpretation made by amendments to the Act,administrative rules or judicial interpretation during the term of this Agreement. The City has no obligation to the Developer to attempt to modify those decisions, but will reasonably assist the Developer in every respect to obtain approval of Eligible Project Costs. 6. 1 h Developer may submit for prior approval by the City as TIF Eligible Project Costs under the Act estimates of costs before they are incurred subject to later confirmation by actual bills F. VERIFICATION OF TAX INCREMENT 1. It shall be the sole responsibility of the Developer to provide to the City as requested the following: a. Copies of all PAID annual real estate tax bills for the Property. 2. The failure of Developer to provide any information required herein after notice from the City,including verification of Eligible Project Costs,and the continued failure to provide such information within thirty(30)days after such notice, shall be considered a material breach of this Agreement and shall be cause for the City to deny payments hereunder to the Developer, which payments are conditional upon receipt of the foregoing information. G. LIMITED OBLIGATION The City's obligation hereunder to pay the Developer for Eligible Project Costs is a limited obligation to be paid solely from the TIF District Special Tax Allocation Fund. Said obligation does not now and shall never constitute an indebtedness of the City within the meaning of am, State of Illinois constitutional or statutory provision,and shall not constitute or give rise ro a pecuniary liability of the Cit)•or a charge or lien against the City's general credit or taxing power. H. LIMITED LIABILITY OF CITY TO OTHERS FOR DEVELOPER'S EXPENSES There shall be no obligation by the City to make any payments to am' person other than the Developer, nor shall the Ciy be obligated to make direct payments- to any other contractor, I&faro.. LLC Redrvr/npnivel Flgrcrnrz it Psgc 5 of 13 subcontractor, mechanic or materialman providing services or materials to the Developer for the Project. This Agreement shall not create any third-party rights and the Developer shall indemnify and hold the City harmless on any claims arising out of the Developer's construction activities. I. COOPERATION OF THE PARTIES The City and the Developer agree to cooperate fully with each other when requested to do so concerning the development of the Developers Project. This includes without limitation the City assisting or sponsoring the Developer,or agreeing to jointly apply with the Developer,for any grant, award,or subsidy which may be available as the result of the Developer's or City's activities.This also includes without limitation the Developer assisting or sponsoring the City,or agreeing to jointly apply with the City, for any grant, award or subsidy which may be available as the result of the City's or Developers activities. J. DEFAULT; CURE; REMEDIES In the event of a default under this Agreement by any patty hereto (the"Defaulting Party"),which default is not cured within the cure period provided for below, then the other party (the "Non- defaulting Party') shall have an action for damages, or in the event damages would not fairly compensate the Non-defaulting Party's for the Defaulting Party's breach of this Agreement,the Non- defaulting Party shall have such other equity rights and remedies as are available to them at law or in equity. Any damages payable by the City hereunder shall be limited to the real estate tart increment payable to the Developer under the terms of this Agreement. In the event a Defaulting Party shall fail to perform a monetary covenant which it is required to perform under this Agreement,it shall not be deemed to be in default under this Agreement unless it shall have failed to perform such monetary covenant within thirty (30) days of its receipt of a notice from a Nan-defaulting Party specifying that it has failed to perform such monetary covenant. In the event a Defaulting Party fails to perform any non-monetary covenant as and when itis required to under this Agreement,it shall not be deemed to be in default if it shall have cured such default within thirty (30) days of its receipt of a notice from a Non-defaulting Party specifying the nature of the default, provided,however,with respect to those non-monetary defaults which are not capable of being cured within such thirty(30) day period,it shall not be deemed to be in default if it commences curing within such thirty (30) days period, and thereafter diligently and continuously prosecutes the cure of such default until the same has been cured. K. TIME; FORCE MAJEURF. For this Agreement, time is of the essence. The Developer agrees to complete the Project on or before June30,2018.Failure to do so shall be cause for the City to declare the Developer in default and unilaterally terminate the Agreement. I lowever, the Developer and the City shall not be deemed in default with respect to any obligations of this Agreement on its part to be performed if the Developer or City fails to timely perform the same and such failure is due in whole,or in part, to any strike,lock- out, labor trouble (whether legal or illegal), civil disorder, inability to procure materials, weather conditions wet soil conditions, failure or interruptions of power, restrictive governmental laws and regulations,condemnation,riots,insurrections,war, fuel shortages,accidents,casualties,Acts of God, acts caused directly or indirectly by the City(or the City's agents,employees of invitees)when applicable 77. 1 7nue• IJ,(. gerk lopwwl.-{or.uent Page 6 of 13 to Developer or third parties,or any other cause beyond the reasonable control of Developer or the City. L. ASSIGNMENT The rights and obligations of the Developer under this Agreement shall not be assignable. M. WAIVER Any party to this Agreement may elect to waive any remedy it may enjoy hereunder,provided that no such waiver shall be deemed to exist unless the party waiving such right of remedy does so in writing. No such waiver shall obligate such party to waive any right of remedy hereunder,or shall be deemed to constitute a waiver of other rights and remedies provided said party pursuant to this Agreement. N. SEVERABILITY If any section, subsection,term or provision of this Agreement or the application thereof to any party or circumstance shall, to any extent, be invalid or unenforceable, the remainder of said section, subsection,term or provision of this Agreement or the application of same to parties or circumstances other than those to which it is held invalid or unenforceable,shall not be affected thereby. O. NOTICES All notices,demands,requests,consents,approvals or other instruments required or permitted by this Agreement shall be in writing and shall be executed by the Party or an officer,agent or attorney of the Party, and shall be deemed to have been effective as of the date of actual delivery, if delivered personally,or as of the third(3")day from and including the date of posting,if mailed by registered or certified mail,return receipt requested,with postage prepaid addressed as follows: To Developer: To City: The Venue, LLC Canton City Clerk c/o Jed Rhoades,Manager City Hall 1310 Sunview Drive 2 N. Main Street Canton, IL 61520 Canton,Illinois 61520 Telephone: (309) 647-0020 Val,ropy ro: Jacob&Klein,Ltd. liconomic Development Group,Ltd. 1701 Clearwater Avcnuc Bloomington,Illinois 61704 Telephone: (309)664-7777 P. SUCCESSORS IN INTEREST Subject to the Provisions of Section 'L" above,this Agreement shall be binding upon and more to the benefit of the Parties hereto and their respective successors and assigns. I'he 6'ensg 1..1.G. ] e,&,lopnir,rl:-I g,zenieM Page 7 of 13 Q. NO JOINT VENTURE,AGENCY, OR PARTNERSHIP CREATED Neither anything in this Agreement no any acts of the Parties to this Agreement shall be construed by the Parties or any third person to create the relationship of a partnership, agency, or joint venture between or among such Parties. R. INDEMNIFICATION OF CITY It is the understanding of the Parties that the position of the Illinois Department of Labor is that the Illinois Prevailing Wage Act does not apply to TIF increment received by developers as reimbursement for private TIF Eligible Project Costs. This position of the Department of Labor is stated as an answer to a FAQ on its website at httpr/haww illinnis knty/idol/PAOs/Palms/prevailinp- wage-facspx. The Developer shall indemnify and hold harmless the City, and all City elected or appointed officials, officers, employees, agents, representatives, engineers, consultants and attorneys (collectively, the Indemnified Parties), from any and all claims that may be asserted against the Indemnified Parties or one or more of them,in connection with the applicability,determination,and/or payments made under the Illinois Prevailing Wage Act (820 ILCS 130/0.01 et. seq.), the Illinois Procurement Code,and/or any similar State or Federal law or regulation. In addition, the Developer agrees to indemnify and hold harmless the City for any claim asserted against the City arising from the Developer's Project and/or this Agreement or any challenge to the eligibility of project costs reimbursed to the Developer hereunder. This obligation to indemnify and hold harmless obligates Developer rn defend any such claim and/or action,pay any liabilities and/or penalties imposed,and pay all defense costs of City,including but not limited to the reasonable attorney fees of City. S. ENTIRE AGREEMENT The terms and conditions set forth in this Agreement and exhibits attached hereto supersede all prior oral and written understandings and constitute the entire agreement between the City and the Developer with respect to the subject matter hereof. T. WARRANTY OF SIGNATORIES The signatories of Developer warrant full authority to both execute this Agreement and to bind the entity in which they are signing on behalf of. U. TERM OF THE AGREEMENT This Agreement shall expire on the date that is five(5) years from the date the loan funds provided for in .Serlion C above are disbursed to the Developer. The Agreement shall expire Sooner if the Developer Gies for bankruptcy or otherwise becomes insolvent, the Property becomes the subject of foreclosure proceedings or upon any other default by the Developer of this Agreement. I he G bme, LLC RrdarkpiuenRAgirrniew Page 8 of 13 IN WITNESS WHEREOF the Parties hereto have caused this Agreement to be executed by their duly authorized officers on the above date at Canton,Illinois. CITY OF CANTON, ILLINOIS,an THE VENUE, LLC, an Illinois Limited Illinois Municipal Corporation Liability Company By: � By: p Mayor V eQ D� Nanic' A T: ^ ^ _ Title: //,A ,..,Ck City Clerk and J=S,Individually Je oades and HAILY RHOADES, Individually and G I FOUNDATION BY: / NAME: ' Lnn.G TITI.F. Yn-451�t� EXHIBIT 1 SUMMARY OF ESTIMATED TIF ELIGIBLE PROJECT COSTS The Venue, LLC "The Venue,LLC Redevelopment Project" Canton TIF District 1,City of Canton,Fulton County,Illinois Project Description: Developer will acquire the Property and will proceed with plans to renovate and rehabilitate the existing building located thereon for operation of a banquet facility. Location: 23 W. Pine Street,Canton,Illinois Parcel Numbers: 09-08-27-414-017,09-08-27-414-019,09-08-27-414-020,09-08- 27-414-021, 09-08-27-414-022,and 09-08-27-414-023 EsfimatedTIF Eligible Project Costs: Land Acquisition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8205,000 Renovation and Rehabilitation Costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $185,000 Total Estimated TIF Eligible Project Costs. . . . . . . . . . . . . . . . . . . . . . . . . . . $390,000 1 The Devdoper's tocol reimbuos .,of'11F ehgible Project Costs unAer.4Fnlan+C(1)4,he Agreement sh>JI nut exceed$75,000.00. EXHIBIT 2 PROMISSORY NOTE PROMISSORY NOTE FOR VALUE RECEIVED, The Venue, LLC, an Illinois Limited Liability Company (the 'BorroweO, promises to pay the City of Canton, Fulton County, Illinois, an Illinois Municipal Corporation ("Lender') the principal sum of up to Seventy-Five Thousand Dollars ($75,000.00)with interest accruing on the unpaid principal at the rate of three percent (30/.) per annum. The aforementioned principal sum represents monies loaned by the Lender to the Borrower for the reimbursement of Borrower's TIF Eligible Project Costs, specifically redevelopment project costs, incurred as a result of a Redevelopment Project located at 23 W. Pine Street, Canton, Illinois (the "Property"), within the Redevelopment Project Area and that is the subject of a Tax Increment Financing District Redevelopment Agreement between the City of Canton and The Venue,LLC (the "Redevelopment Agreement's entered into the 4"day of December,2018. The term of this Promissory Note shall commence on the date the reimbursements provided for in Section Cof the Redevelopment Agreement are disbursed to the Borrower and end on the date that is five(5) years from the date of such disbursement. Provided that the Borrower is at all times in compliance with the Redevelopment Agreement and this Promissory Note, One-Fifty (1/5) of the principal balance of up to $75,000.00, plus any accrued interest thereon,shall be forgiven by the Lender each year during the term of this Promissory Note, with the first date of forgiveness being the date that is one (1) year from the date of the disbursement set forth in Section C of the Redevelopment Agreement and continuing on said date of each year thereafter for the term of this Promissory Note. Provided that the Borrower does not Default or otherwise breach this Promissory Note or the Redevelopment Agreement,the full principal amount of this Promissory Note, plus any accrued interest thereon,shall be forgiven on the expiration of this Promissory Note. The Borrower shall be deemed in Default of this Promissory Note,if the Borrower: 1) Fails to maintain constant and continuous operation of The Venue banquet facility located on the Property for the Term of the Promissory Note; 2) Sells or otherwise conveys the subject Property during the term of this Promissory Note; 3) Files for bankruptcy or otherwise becomes insolvent during the term of this Promissory Note; 4) Fails to provide annual verification that the ad valorem real estate taxes for the subject Property have been paid; 5) If the Property becomes the subject of foreclosure proceedings. 6) If the Borrower fails to carry adequate insurance on the Property to cover the replacement cost of the completed Project. 7) Or upon any otherdefault by the Developer of Redevelopment Agreement or this Note. In the event the Borrower is in Default under the terms of this Promissory Note or the Redevelopment Agreement and does not cure said default or breach on or before the thirtieth(30'")day after Lender gives Burrower written notice of Default thereof by personal delivery or certified mailing, the outstanding principal amount,plus any accrued interest thereon,is immediately due to the Lender and the Lender shall be entitled to all remedies permitted by law. Notice shall be deemed given on the date of personal delivery or date of mailing, whichever applies. No delay or failure in giving notice of said Default or breach shall constitute a waiver of the right of the Lender to exercise said right in the event of a subsequent or continuing Default or breach. Furthermore,in the event of such Default or breach,Borrower promises to reimburse Lender for all collection and/or litigation costs incurred by the City,including reasonable attorney fees and court costs,whether judgment is rendered or not. As signatories to this Note,Jed Rhoades,Haily Rhoades, and Graham Hospital Foundation jointly and severally guarantee payment of this Note in the event the Borrower is in default hereof. This Promissory Note has been entered into and shall be performed in the City of Canton, Fulton County,Illinois,and shall be construed in accordance with the laws of Ilhnois and any applicable federal statutes or regulations of the United States. Any claims or disputes concerning this Note shall, at the sole election of the Lender,be adjudicated in Fulton County,Illinois. BORROWER: LENDER: THE VENUE,LLC, CITY OF CANTON,ILLINOIS an Limited Liam •Company c BY: BY: 7 ity Pres' en o Mon NASI E: eX I�--J(-S ATTEST: City Cleik, City of Canton TITLE: and JEDRHOADE Individually and HAILY RrHOADES,Individually J and G M fl S A DATION BY: ITS:�H.O'0 DATE: /2—LY—Z61� DA'Z'E: EXHIBIT 3 CITY OF CANTON,ILLINOIS CANTON 1-DOWNTOWN/5TH AVENUE TAX INCREMENT FINANCING DISTRICT PRIVATE PROJECT REQUEST FOR VERIFICATION OF TIF ELIGIBLE COSTS BY THE VENUE,LLC Attention: CiryTIF Administrator, City of Canton,Illinois Re: TIF Redevelopment Agreement,dated December 4,2018 by and between the City of Canton, Illinois,and The Venue,LI.0(the "Developer') The City of Canton is hereby requested to disburse funds from the Special Tax Allocation Fund pursuant to the Redevelopment Agreement described above in the following amount(s), to the Developer and for the purpose(s) set forth in this Request for Reimbursement. The terms used in this Request for Reimbursement shall have the meanings given to those terms in the Redevelopment Agreement. 1. REQUEST FOR REIMBURSEMENT NO. 2. PAYMENT DUE TO:The Venue 1-11 3. AMOUNTS REQUESTED TO BE DISBURSED: Description of HE Eligible Project Cost Amount The Veil ue LI-C bon4uei Total l 5 QCQ , QQ 4. The amount requested to be disbursed pursuant to this Request for Reimbursement will be used to reimburse the Developer for Redevelopment Project Costs for the Project detailed in Exhibit 1" of the Redevelopment Agreement. 5. The undersigned certifies that (i) the amounts included in(3)above were made or incurred or financed and were necessary for the Project and were made or incurred in accordance with the construction contracts, plans and specifications heretofore in effect; and (ii) the amounts paid or to be paid,as set forth in this Request for Reimbursement,represent a part of the funds due and payable for TIF Eligible Redevelopment Project Costs;and (iii) the expenditures for which amounts are requested represent proper Redevelopment Project Costs as identified in the"Limitation of Incentives to Developer"described in Seetron 'D"of the Redevelopment Agreement, have not been included in any previous Request for Reimbursement,have been properly recorded on the Developers books and are set forth with invoices attached for all sums for which reimbursement is requested,and proof of payment of the invoices; and (iv) the amounts requested arc not greater than those necessary to meet obligations due and payable or to reimburse the Developer for its funds actually advanced for Redevelopment Project Costs;and (v) the Developer is not in default under the Redevelopment Agreement and nothing has occurred to the knowledge of the Developer that would prevent the performance of its obligations under the Redevelopment Agreement. 6. Attached to this Request for Reimbursement is Exhibit "I"of the Redevelopment Agreement, together with copies of invoices,proof of payment of the invoices, and Mechanics Lien Waivers relating to all items for which reimbursement is being requested. BY; (Developer) TITL . MlojtR )0-11— APP BY TY O NTO INOIS BV TITLE: DATE: 11-10-19 REVIEWED BY JACOB&KLEIN,LTD.&THE ECONOMIC DEVELOPMENT GROUP,LTD. li1': '1'11 LL DATE:...