HomeMy WebLinkAbout#4135 Approving and Authorizing the Execution of an agreement between the City of Canton and MidAmerica National Bank 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 16T ' DAY OF
APRIL,2019 ADOPTED ORDINANCE NO.4135,A TRUE AND CORRECT COPY OF WHICH
IS CONTAINED IN THIS PAMPHLET.
GIVEN UNDER MY HAND AND SEAL THIS/teDAY OF APRIL,2019.
(SEAL)
DA PAVLEY- K \
CITY CLERK
CITY OF CANTON, ILLINOIS
ORDINANCE NO. 4135
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF AN AGREEMENT
by and between
THE CITY OF CANTON, FULTON COUNTY, ILLINOIS
and
MIDAMERICA NATIONAL BANK, INC.
PASSED BY THE CITY COUNCIL.
OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS,
ON THE 16T" DAY OF APRIL,2019.
PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY
COUNCIL OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS,
THIS 16"' DAY OF APRT , 2019
EFFECTIVE: APRIL. 16,2019
ORDINANCE NO. 4135
CITY OF CANTON, ILLINOIS
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF AN AGREEMENT
by and between
THE CITY OF CANTON, FULTON COUNTY,ILLINOIS
and
MIDAMERICA NATIONAL BANK,INC.
PREAMBLE
WHEREAS,on April 5,2017,recognizing the need to foster the development,expansion and
revitalization of certain properties which arc vacant,undemtilized or undeveloped,the City adopted Tax
Increment Financing under the Act, approved a Redevelopment Plan (the "Plan") and designated a
Redevelopment Area known as Canton Tax Increment financing District No. 3 (the "TIF District');
and
WHEREAS, on the 2nd da} of April, 2019, the Ciry approved a non-binding Inducement
Resolution to encourage MidAmerica National Bank, Inc. to proceed with a proposed redevelopment
project consisting of,but not limited to,replacing and constructing a new commercial headquarters and
banking facility at 100 W. Elm Street, Canton, IL (the "Developer's Project");and
WHEREAS, the Circ now wishes to amend the TIF District Plan, Projects and the
Redevelopment Project Area to add additional parcels of property,including the MidAmerica.National
Bank,Inc. site and related redevelopment project costs; and
WHEREAS, the City has engaged the professional services of Jacob&Klein,Ltd. ("J&I) to
render legal advice and The Economic Development Group,Ltd ("EDG") to render technical advice
to assist the City with undertaking said amendment to the TIF District; and
WHEREAS,MidAmerica National Bank,Inc is supportive of the City's efforts to amend the
TIF District and wishes to assist the Cin by providing the funds to the Cin' to finance the First
Amendment to Canton TIF District No. 3; and
WHEREAS,the City wishes to accept such financial assistance from MidAmerica National Bank,
Inc.on the condition that the Cita shall provide reimbursement to MidAmerica National Bank,Inc. of
those funds advanced to the Cin- for the purpose of said First Amendment from the initial gross real
estate tax increment generated from the Developer's Project located within the TIF District as amended
by the First Amendment.
P,g,2,f 5
THEREFORE BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF
THE CITY OF CANTON THAT:
1. The Agreement by and between the City-of Canton, Fulton County, Illinois and MidAmerica
National Bank, Inc. (Exhibitzi attached) is hereby approved.
2. The Mayor is herehy authorized and directed to enter into and execute on behalf of the City said
Agreement and the City Clerk of the City of Canton is hereby authorized and directed to attest
such execution.
3. The Agreement shall be effective on the date of its approval, the 16o dap of April,2019.
4. This Ordinance shall be in full force and effect from and after its passage and approval as
required by law.
(1'he Nina inder of this pqge is inten liona4l) blank.)
rag,3 q 5
PASSED, APPROVED AND ADOPTED by the Corporate Authorities of the City of Canton,
Fulton County,Illinois this 16"day of April,2019 and filed in the office of the City Clerk of said City
on that date.
CORPORATE AUTHORITIES AYES NAYS ABSTAIN ABSENT
Ryan Mayhew, Ald.Ward 1 h
Angie lin enfelter,Ald.Ward 1 y'
Craig West Nd.Ward 2 `Y
Tad Putrich, Aid.Ward 2 %
Quin Mayhew Ald. Ward 3 x
usdn Nelson Aid.Ward 3 h
John LovellAld.U'ard 4F
Angela Hale Aid Ward 4 X
Kent A.McDowell Mayor
TOTALS:1 7 0 1 0
APPROVED:
Mayor Dat
ATT
rc y- it, 12
City Clerk Date
EXHIBIT ATTACHED: Agreement
Pagr 4 of 5
EXHIBIT A
AGREEMENT
by and between
CITY OF CANTON, FULTON COUNTY, ILLINOIS
and
MIDAMERICA NATIONAL BANK, INC.
P,,5 of 5
AGREEMENT
by and between
CITY OF CANTON,FULTON COUNTY, ILLINOIS
and
MIDAMERICA NATIONAL BANK, INC.
THIS AGREEMENT (including Exhibits) is entered into this 16`'day of April,2019,by the
City of Canton, Fulton County, Illinois (the "Cit} ), and MidAmerica National Bank, Inc., an
Illinois Corporation (a/k/a MidAmerica National Bank and the "Developer').
PREAMBLE
WHEREAS, the Illinois Municipal Code (the "Municipal Code') grants to the City 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 facihties by promoting the development of
private investment property thereby increasing the tax base of the City and providing employment for
its citizens (65 ILCS 5/11-11-1 and 11-74.4-1 et. seq.); and
WHEREAS, the City wishes to amend the existing CANTON TAX INCREMENT
FINANCING (TIF) DISTRICT 3 (the`TIF District')which was established by Ordinance 4065,
Ordinance 4066 and Ordinance 4067 on the 5th dap of April, 2017 pursuant to the Tax Increment
Allocation Redevelopment Act(rhe"Act'), 65 ILCS 5/11-74.4-1 etseq.;and
WHEREAS, on the Zed chat of April, 2019, the Ciry approved a non-binding lnduccment
Resolution attached hereto as Exhibit 1 to encourage the Developer to proceed with a proposed
redevelopment project consisting of,but not limited to,replacing and constructing a new commercial
headquarters and banking facility at 100 W. Elm Street,Canton, II.(the"Developer's Project'); and
WHEREAS, on the 16" his, of April, 2019 the Cin- approved Ordinance No. 4134 hereto
attached as Exhibit 2to engage the professional services of]acob & Kleiq Ltd. ('J&l) to render
legal advice and The Economic Development Group, Lad. ("EDG') to render technical advice to
assist the City with undertaking a good faith effort to complete the First Amendment to the TIF
District;and
WHEREAS, the Developer is supportive of the Cin's efforts to undertake the First
Amendment to Canton TIF District 3 (the "Amendment') to include property owned by the
Developer and wishes to assist the Cin by providing the funds to the Cin necessary to finance the
Amendment to the TIF District, and
WHEREAS, the Cin-wishes to accept such financial assistance from the Developer on the
condition that the City shall protide reimbursement to the Developer of those funds advanced to the
City for the purpose of amending the TIF District from the gross real estate tax increment generated
by the Developer's Project located in the TIF District after the date of this Agrectru nt.
2
Agreement by and behveen C i of Canton and
diidA,no,. \,thand linnk, Int.
AGREEMENTS
NOW, THEREFORE, the Patties, for good and valuable consideration, the receipt of which is
acknowledged,agree as follows:
A. PRELIMINARY STATEMENTS
The Parties agree that the matters set forth in the recitals above are true and correct and form
a part of this Agreement.
1. Any terms which are not defined in this Agreement shall have the same meaning as they do in
the Municipal Code and the Act,unless indicated to the contrary.
2. The Developer is extending assistance to the City based upon the City's intent to amend the
Canton TIF District 3 Redevelopment Project Area and include certain of the Developer's
real property located at 100 West Elm Street,Canton, Illinois therein.
3. The Professional Services Agreement by and between the City of Canton and Jacob& Klein,
Ltd. and The Economic Development Group, Ltd previously approved on the 16" day of
April, 2019, is attached hereto as Exhibit2.
4. Each of the Parties represents that it has taken all actions necessary to authorize its
representatives to execute this Agreement.
B. DEVELOPER COMMITMENTS
1. The Developer shall provide the City with advance payment of,or establish an escrow account
with, an amount not less than Twenty-Five Thousand and 00/100 Dollars ($25,000.00)
immediately upon execution of this Agreement,from which the Citv may request draws as the
fees and costs of amending The TIF District arc incurred. If the fees and costs relating to the
Amendment exceed $25,000.00, the Cin- shall pay such additional fees and costs as are
necessary to complete the Amendment.
2. For purposes of this Agreement, Fees and Costs relating to the professional services for
amending the TIF District shall mean those Fees and Costs described in Exhibit 2, as well as
other related costs including,but not limited to,engineering costs and mailing and publication
costs. The Fees and Costs for amending the TIF District are to be advanced from the
Developer to the City. The Fees and Costs for the annual administration of the TIF District
will be paid by the City.
C. CITY OF CANTON COMMITMENTS
1. All funds advanced to the City from the Developer relating to the fees and costs of completing
the Amendment shall be reimbursed to the Developer from the initial gross annual real estate
tax increment generated by the Developer's Project within the TIF District after the date of
this Agreement,until all funds advanced by the Developer are reimbursed or the TIP District
3
Agreement bj and fie/ween City of titan and
M,&Imertta Xaaonal Bank, lns.
ends, whichever occurs first.
2. All reimbursements to the Developer shall be payable from the City's Special Tax Allocation
Fund(the"TIF Fund") for this TIF District. Payments should be made within thirty(30)days
after the receipt of the real estate tax increment and if funds arc available in the TIF Fund
pursuant to Paragraph I above. If funds are not then available, payment shall be made within
thirty (30) days after funds become available.
3. The Developer acknowledges that the City cannot guarantee the Amendment of the TIF
District. In the event the Cin' of Canton is unable to complete the First Amendment to
Canton TIF District 3,for any reason whatsoever,the Cit} shall be under no further obligation
to repay any funds advanced by the Developer hereunder.
D. LIMITED OBLIGATION
The City's obligation hereunder to reimburse the Developer for fees and costs relating to the
amendment to the TIF District is a limited obligation to be reimbursed solely from the real estate tax
increment generated within the TIF District be the Developer's Project.Said obligation does not now
and shall never constitute an indebtedness of the Cin within the meaning of any State of Illinois
constitutional or statutory provision and shall not constitute or give rise to a pecuniary liability of the
(:ity or a charge or lien against anv City fund or require the Cit' to utilize its taxing authority to fulfill
the terms of this Agreement.
E. LIMITED LIABILITY OF THE DEVELOPER
TO OTHERS FOR CITY'S EXPENSES
There shall be no obligation by the Developer to make any payments to any entry other than
the City, nor shall the Developer be obligated to make direct payments to any other contractor,
subcontractor, mechanic or material man providing services or materials to the City for the First
Amendment to Canton TIF District 3.
F. DEFAULT; CURE; REMEDIES
1. In the event of a default under this Agreement by any Party hereto (the"Defaulting Party"),
which default is not cured within the cure period provided for below,then the other Patty(the
"Non-defaulting Party'),shall have an action for damages,or,in the event damages would not
fairly compensate the Non-den ulting Parties for the Defaulting Party's breach of this
Agreement, the von-defaulting Party shall have such other equity rights and remedies as are
available to them at law or in equity. Ane damages payable by the Ciy hereunder shall be
limited to the real estate rax increment payable to the Developer under the terms of this
Agreement.
2. In the event a Defaulting Party shall tail 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 moneran' covenant within thirty (30) days of its
receipt of a notice from a Nondefaulting Part- specifying that it has failed to perform such
monetary covenant In the event a Defaulting Part, fails to perform any nonmonetary
4
Agreement/Aand behran Ci)aoy Canton and
MidAmertca,l'atianalBank, Inr.
covenant as and when it is required to under this Agreement, it shall not be deemed to be in
default if it shall have cured such default within (30)days of its receipt of a notice from a Non-
defaulting Patty specifying the nature of the default,provided,however,with respect to those
nonmonetary 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) day
period,and thereafter diligently and continuously prosecutes the cure of such default until the
same has been cured.
G. NOTICES
All routes 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 (3rd) day
from and including the date of posting, if mailed b}' registered or certified mail, return receipt
requested,with postage prepaid addressed as follows:
TO CITY: TO DEVELOPER:
City Clerk, City of Canton MidAmerica National Bank, Inc.
2 Main Street Atm: Rick R. Rlinedinst, President/CEO
Canton, IL 61520 100 West Elm Street
Telephone: (309) 647-0063 Canton, Il,61,520
Telephone: (309) 647-5000
With a copy to: With a copy to.-
Curtis
o:Curtis Lane, City Atromev Froehling,Weber& Schell,LLP
2 N. Plain Street % Ron J. Weber,Attorney at Law
Canton, 11. 61520 167 West Elm Street
Telephone: (309) 647-2738 Canton, Illinois 61520
Telephone: (309) 647-6317
H. ASSIGNMENT
The rights (including, but not limited to, the right to payments contemplated by Section C of
this Agreement,) and obligations by .Section B of the Developer under this Agreement shall be fully
assignable by the Developer provided written notice is provided to the City and City's consent is
obtained prior to such assignment. The City's consent shall not be unreasonably withheld provided
that the nature of the Agreement is not substantially changed and provided that the assignee is
financially capable of fulfilling the obligations of the assignor. Any such assignment shall be subject
to all the terms and conditions contained in this Agreement. Further, no such assignment shall be
deemed to release the assignor of its obligations to the Citv under this Agreement unless the consent
of the City to the release of the assignor's obligations is nrst obtained.
5
rix rernrent hi and bas""C,/l o%Cmtton and
el lidAvaedca.Ca&,,d Annk, Inc
I. SUCCESSORS IN INTEREST
This Agreement shall be binding upon and inure to the benefit of the Patties hereto and
their respective assigns and/or successors.
J. NO JOINT VENTURE,AGENCY, OR PARTNERSHIP CREATED
Neither anything in this Agreement nor 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,ox joint
venture between or among such Parties.
K. WARRANTY OF SIGNATORIES
The signatories of the Developer warrant that they have full authority to execute this
Agreement and to bind the entity° for which thec are signing.
L. 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 aetreement between the Cite and the
Developer with respect to the subject matter hereof.
M. AMENDMENTS
The Parties hereto matamend this Agreement at onv time ba their mutual consent which
amendment must be in writing and executed It -the Parties.
N. SEVERABILITY
If any section, subsection, term or provision of this .Agreement or the application thereof to
any parry or circumstance shall, to anv, 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 helc invalid or unenforceable, shall not be affected
thereby.
O. TERM OF THE AGREEMENT
This Agreement shall expire upon the expiration or the TIF District adopted by the Cit' of
Canton or earlier if the Developer has received all reimbursements included herein.
TGs renminn'er ej tlw page blank..)
6
Ig......t by and b t men Qh oJf( nton and
!lfrr(Anredw:Valfaual Bank, Ja,
EXHIBIT 1
COPY OF
INDUCEMENT RESOLUTION NO. 5184
8
Agyrrmen!I} d behreeu Cil? of Cautan and
hl6(Ameii<'a -V t o,,l Bank, 1..
IN WITNESS WHEREOF the City and the Developer 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 Illinois Municipal Corporation
BY: r
Mayor, Ciq•of Canto
ATTEST: 0/ 4 Z
City Clerk, Cinof Tanton
MIDAMERICA NATIONAL BANK, INC., an Illinois Corporation
Prev en,/CLO
RESOLUTION NO. 5184
CITY OF CANTON, ILLINOIS
PROPOSED
FIRST AMENDMENT
TAX INCREMENT FINANCING (TIF)DISTRICT NO. 3
REDEVELOPMENT PROJECT
INDUCEMENT RESOLUTION
WHEREAS, the City of Canton, Fulton Count}'. Illinois, (the "Cita'), 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 by promoting the development of private investment in property thereby
increasing the real estate 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 et req., as amended (the "Act'), the City has the authority to provide incentives to owners or
prospective owners of real property to develop, redevelop, rehabilitate, market and/or upgrade such
property by reimbursing the owner for certain costs from resulting increases in real estate tax
revenues (`Tax Increment") or from other City revenues; and
WHEREAS, on April 5, 2017, recognizing the need to foster the development, expansion
and revitalization of certain properties which are vacant, underutilized or undeveloped, the City
adopted Tax Increment Financing under the Act, approved a Redevelopment Plan (the "Plan') and
designated a Redevelopment Area known as Canton Tax Increment Financing District No. 3 (the
"TIF District');and
WHEREAS, the City is considering proposals for commercial, fight industrial and
residential redevelopment projects on properties that the City intends to include within a proposed
First Amendment to Canton "fax Increment Financing TIF) District No. 3 Redevelopment Project
Area (the "Area");and
WHEREAS, it appears that such redevelopments cannot be developed without the
adoption of an Amended Tax Increment Financing District Redevelopment Plan, Area and Projects
for the TIF District pursuant to the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-
74-4 et req. (the"Act");and
WHEREAS, the City is authorized under the Act to make and enter into all contracts with
property owners, developers, tenants, overlapping taxing bodies, and others necessary or incidental
to the implementation and furtherance of irs redevelopment plans and projects and to finance
redevelopment project costs provided such project costs are eligible under the Act;and
WHEREAS, MidAmerica National Rank, 100 W. Alm Street, Canton, Illinois, or its
assignee (the "Developer) is currendy proposing to a redevelopment project consisting of, but not
limited to, replacing and constructing a new commerdal headquarters and banking facility at 100 W.
Page 1 of 4
Elm Street, Canton, Illinois (the "Project') within the proposed Area to be amended to the TIF
District,and
WHEREAS, redevelopment of the property within the Area will entail expenditures of
substantial time, effort and money and that but for the assistance of tax increment financing, the
proposed Project is not deemed to be financially feasible as evidenced by the Developer's statement
attached hereto as Exhibit A;and
WHEREAS, this Resolution is intruded to induce the Developer to commence the Project
and to seek reimbursement from incremental real estate tax revenue received by the City or from
other sources as may be agreed to between the City and the Developer which are necessary to
accomplish the goals of the Canton TIF District No. 3 Redevelopment Plan and Projects as may be
amended by the City for this Project;and
WHEREAS, the Board of Trustees has initiated an examination of the proposed Area as to
be amended and believes that expenditures of development costs in furtherance of the potential
Redevelopment Plan and Projects should be allowable project costs under the Redevelopment Plan,
provided that this Resolution is not a guarantee of the amount of project costs that will be
allowable,if any, but rather is an indication of the intent and sense of the City at this time.
NOW, THEREFORE, BE IT RESOLVED by the Mayor and City Council of the City
of Canton, Fulton County,Illinois,as follows:
1. That the intentions of the City of Canton regrading this Project as expressed in the
recitals herein are hereby approved; provided however, that neither such intentions,
affirmations, authorizations nor such recitals are binding upon the City not may the
same be relied upon to ani entity's or person's detriment by such entity or person
whether third person or otherwise in the event that the aforementioned agreements or
plans are not mutually attainable.
2. That the City Council of the City of Canton is in favor of the proposed Project
3. The City shall proceed and use its best good faith efforts to amend the Canton Tax
Increment Financing District No. 3 Redevelopment Plan, Project and Area to include
the Developer's Property and Project. The City and the Developer shall also use their
best efforts to enter into a Predevelopment Agreement on or before June 30, 2019, and
provided that such agreement is approved, diose future TIF eligible project costs
incurred by the Developer from the date of this Resolution may be reimbursed to the
Developer from an appropriate Special Tax Allocation Fund and shall thereby constitute
an incurred obligation of the City of Canton pursuant to Sections 5/11-74.4-4 (b) and Q)
of the Act.
4. The provisions of this Resolution shall be effective commencing with its adoption as
provided by law.
Page 2 of 4
PASSED,APPROVED AND ADOPTED by the Mayor and Board of Trustees of the City of
Canton, Peoria County, Illinois,on the 2"d of April,2019,and deposited and filed in the Office of
the City Clerk of said City of Canton on that date.
CORPORATE AUTHORITIES AYES NAYS ABSTAIN ABSENT
Ryan Mayhew,Ald.Ward 1 X
Angie Lingenfelter,Ald.Ward I X
Craig West, Ald.Ward 2 X
Tad Puttich,Ald.Ward 2 X
Quin Mayhew, Ald.Ward 3 X
Justin Nelson, Aid. Ward 3 X
John Lovell,Ald.Ward 4 X
Angela Hale,Ald,Ward 4 X
Kent A. McDowell,Mayor
TOTALS:
. �/ 7 0 1 0
APPROVED: °v"\' '- 1p , Date �/ -/ 2019
Mayor,City of Cliijdn
1
ATTEST: _ Date: 41 / Z/2019
Clerk,City of Canton
Attachment
Exhibit A. Developer Statement
He\CAN ION\eA\ZON 1\Nim,Amrndmmn\GewmYI'n o A1ANI1 April 2019.d-
Page 3 of 4
EXHIBIT A
DEVELOPER STATEMENT
Page 4 of 4
Im
PFrW'
MidAmerica National
Brancshares. Inc.
March 27,2019
Mr.Kent McDowell, Mayor
City of Canton
2 North Main Street
Canton,IL 61520
Dear Mayor McDowell:
MidAmerica National Bank is entering its eighty-sixth year in Canton,fifty at its current location.We have been
considering a project to either remodel the existing building or build a new building at the current location.
This location has been ideal for our customers and the community and our desire is to remain here as Canton's
longest standing, locally awned community bank for many more years.
Replacing and expanding our current facility instead of renovating an old building is a significantly greater
investment than we had originally contemplated. The potential availability of some assistance by the City
through tax increment financing will help us mitigate the additional long-term risks we are otherwise unable to
fully justify at this time. Therefore, as we draw closer to our final decisions for our Project,we respectfully ask
that the City of Canton consider adding our site to a TIF redevelopment area and approve a non-binding
Inducement Resolution to affirm its support for MidAmerica National Bank to construct an entirely new
building.
Thank you for your consideration.
Sincerely,
Rick R.Klinedinst
President/CEO
• Box 3 1020 09
ewiralo) amd behYeen cad "C"m'and
1Gd. 1m..7",;Vaticnnl Naak, Inr.
EXHIBIT 2
COPY OF
CITY OF CANTON ORDINANCE NO. 4134
and
PROFESSIONAL SERVICES AGREEMENT
for the
FIRST AMENDMENT TO
CANTON TAX INCREMENT FINANCING (TIF) DISTRICT 3
by and between
THE CITY OF CANTON, FULTON COUNTY, ILLINOIS
and
JACOB & KLEIN, LTD.
and THE ECONOMIC DEVELOPMENT GROUP,LTD.
9