HomeMy WebLinkAbout#4160 approving and authorizing the execution of a redevelopment agreement ,1
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 20TH DAY OF
AUGUST, 2019 ADOPTED ORDINANCE NO. 4160, A TRUE AND CORRECT COPY OF
WHICH IS CONTAINED IN THIS PAMPHLET.
GIVEN UNDER MY HAND AND SEAL THIS DAY OF AUGUST, 2019.
(SEAL)
DIANA PA LEY-ROCK
CITY CLERK
CITY OF CANTON, ILLINOIS
ORDINANCE NO. 4160
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF A REDEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF CANTON
AND
BILLY'S TAP,INC.
FOR THE
CANTON 1-DOWNTOWN/5TH AVENUE TAX INCREMENT FINANCING DISTRICT
PASSED BY THE CITY COUNCIL
OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS,
ON THE 20TH DAY OF AUGUST, 2019
PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY
COUNCIL OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS,
THIS 20TH DAY OF AUGUST, 2019
EFFECTIVE: AUGUST 20, 2019
CITY OF CANTON, ILLINOIS: ORDINANCE NO.4160
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
BILLY'S TAP, INC.
BE IT ORDAINED BY THE CITY OF CANTON,FULTON COUNTY, ILLINOIS
THAT:
1. The Redevelopment Agreement with Billy's Tap, Inc. (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 City 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 20`'day of
August,2019.
4. This Ordinance shall be in full force and effect from and after its passage and approval as
required by law.
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PASSED, APPROVED AND ADOPTED by the Corporate Authorities of the City of Canton,
Fulton County,Illinois,on the 20' day of August,2019,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
Ryan Mayhew X
Angie Lingenfelter X
Jeff Fritz X
Craig!Vest X
Quin Mayhew X
Justin Nelson X
John Lovell X
Angela Bale X
Kent A.McDowell,Mayor
TOTAL VOTES S 0 0
APPROVED: ,Date / /2019
Ma or, City of Canto
ATTEST:
_ ,Date: 0 /x_/2019
erk, City of Canton
ATTACHMENTS:
EXHIBIT A. REDEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF
CANTON AND BILLY'S TAP,INC.
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EXHIBIT A
REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON
and
BILLY'S TAP, INC.
CANTON 1-DOWNTOWN / 5TH AVENUE
TAX INCREMENT FINANCING (TIF) DISTRICT
TIF REDEVELOPMENT AGREEMENT
BY AND BETWEEN
CITY OF CANTON
BILLY'S TAP, INC.
CANTON 1-DOWNTOWN/5TH AVENUE TIF DISTRICT
THIS TIF REDEVELOPMENT AGREEMENT (including Exhibits) ("Agreement")is entered
into this 20`' day of August, 2019, by the City of Canton (the "City"), an Illinois Municipal
Corporation,Fulton County,Illinois,and Billy's Tap,Inc.,an Illinois Corporation(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 et
seg.,as amended (the"Act"),the City has the authority to provide incentives to owners or prospective
owners of real property 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 cenain properties which are vacant,underutilized 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 Project Area Tax Increment'Financing
District(The"Canton IH TIF District"is currently known as the"Canton 1 -Downtown/5th Avenue
TIF District")(hereinafter referred to as the"TIF District")pursuant to Ordinance No.1805,Ordinance
No. 1806,and Ordinance No. 1807;and
WHEREAS,pursuant to the TIF Act,the City approved the First Amendment to the Canton IH TIF
District on November 22,2011 by Ordinance No. 2052;and
WHEREAS,pursuant to the TIF Act, the City approved the Second Amendment to the TIF District
on February 6,2012 by Ordinance No. 2071;and
WHEREAS,pursuant to the TIF Act,the City approved the Third Amendment to the TIF District on
on April 5, 2017 by Ordinance No. 4068,Ordinance No. 4069,and Ordinance No. 4070;and
WHEREAS,included within the TIF District is property owned by the Developer and located at 10
S. 2" Street,Canton, Illinois 61520,PIN No. 09-08-27-437-008 (the"Property") and said Property is
in need of development and integral to the development of the TIF District;and
WHEREAS, the Developer is proceeding with plans to renovate and connect two separate buildings
located thereon,in order to expand the kitchen and provide extra seating capacity for Billy's Tap (the
"Project"),based upon incentives made available by the City;and
Billy's Tap Redevelopment Project Page I of 13
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 part,to finance incentives to assist this Developer's
Project;and
WHEREAS,the City has the authority under the Act to incur Redevelopment Project Costs ("Eligible
Project Costs") and to reimburse Developer for such costs;and
WHEREAS,pursuant to Illinois Statute 65 ILCS 5/8-1-2.5,the City has the authority to appropriate
and expend funds for economic development purposes, including without limitation, the making 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 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 the Developer's Eligible Project Costs
`6Aro-%issory Note1�of an amount not to exceed Forty Thousand and No/100 Dollars
($40,000.00) to be paid from the Canton 1 - Downtown/5th Avenue TIF District Special Tax
Allocation Fund as specified below in Section C,Incentives;and
WHEREAS,in no event shall cumulative maximum reimbursements for the Developer's TIF Eligible
Project Costs under this Agreement exceed Forty Thousand Dollars andNo Cents($40,000.00);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 be construed as binding statements of this Agreement.
2. Any terms which are not defined in this Agreement shall have the same meaning as they do in
the Act,unless indicated to the contrary.
Billy's Tap Redevelopment Project Page 2 of 13
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
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 within twelve (12) months from the date this
Agreement is executed,subject to extension due to Force Majeure(defined below). The Project
will be deemed complete when the renovations to connection of the buildings located on the
Property are complete and a certificate of occupancy is issued by the City.
5. Each of the Parties represents that-it has taken all actions necessary to authorize its
representatives to execute this Agreement.
E. ADOPTION OF TAX INCREMENT FINANCING
The City has created a Tax Increment Financing District known as the "Canton 1 -Downtown/5th
Avenue TIF District" which includes the Developer's Property. The City has approved certain
Redevelopment Project Costs,including the types described in Exhihit 1 for the Developer's Project
which shall be known as the "Billy's Tap Redevelopment Project".
C. INCENTIVES
In consideration for the Developer completing its Project,the City agrees to extend to Developer the
following incentives to assist Developer's Project:
1. The City agrees to loan to the Developer (also,the`Borrower") by separate Promissory Note
(attached hereto as.exhibit 42'� the sum of Forty Thousand Dollars ($40,000.00) from the
Canton 1 -Downtown/5th Avenue TIF District Special Tax Allocation Fund for TIF Eligible
Project Costs incurred as a result of the Developer's Project. The terms and conditions for the
Loan shall be as follows:
a. The fullLoan amount of$40,000.00 shall be paid to the Developer from the
Canton 1 -Downtown/5th Avenue TIF District Special Tax Allocation Fund
within thirty '(30) days following the execution of this Agreement, or upon
verification of a minimum of$40,000 of TIF Eligible Project Costs pursuant to
Section E below,whichever occurs later.
b. A separate Promissory Note is attached as .Exhibit `-2''•
C. The interest rate for the Loan shall be Three Percent(3%)per annum,and shall
begin to accrue on the date the Loan funds are dispersed to the Developer.
d. The term of the Loan shall expire on September 30,2027.
Billy's Tap Redevelopment Project Page 3 of 13
C. The Promissory shall be personally guaranteed by
f. One-eighth(1/8)of the principal of the Loan amount,plus any accrued interest
thereon,shall be forgiven annually by the City commencing September 30,2020
and continuing on September 30' 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 completes the Project within twelve (12)months from
the date of execution of this Agreement with certificates of occupancy
issued by the City.
ii. The Developer shall annually provide verification of the payment of the
real estate taxes for the property.
iii. The Developer does not file for bankruptcy or otherwise become
insolvent.
iv. The Property is not the subject of foreclosure proceedings.
V. The Developer does not sell or otherwise convey the Property during
the term of the Loan.
vi. The Billy's Tap business located on the Property remains open for
business during normal business hours during the term of the Loan.
D. LIMITATION OF INCENTIVES TO DEVELOPER
1. In no event, shall the maximum cumulative reimbursements for the Developer's TIF Eligible
Project Costs pursuant to Section C(1) above exceed Forty Thousand Dollars and No Cents
($40,000.00) 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 mayin its sole discretion determine.
E. PAYMENT OF ELIGIBLE PROJECT COSTS
1. Payment to the Developer for Eligible Project Costs as set forth by the Act shall be made by
a Requisition for Payment of Private Development Redevelopment Costs ("Requisition",
Zxhibit "3''attached hereto) submitted from time to time to Jacob &I-lein, 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,
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.
Billy's Tap Redevelopment Project Page 4 of 13
3. The Developer shall use such sums as reimbursement for TIF Eligible Project Costs only to the
extent permitted by law and the Act and may allocate such funds for any purpose for the Term
fo this Agreement or the term of the TIF District whichever is longer.
4. 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.
5. All TIF Eligible Project Costs approved shall then be paid by the City from the Special Account
to the Developer,or to others as directed by the Developer,pursuant to the Redevelopment Plan
and as allowed by Illinois Law. Payments shall be made within forty-five(45)days after approval
of the TIF Eligible Project Costs subject to the terms of this Agreement.
6. The Parties acknowledge that the determination of 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.
7. The 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 any State of Illinois
constitutional or statutory provision,and shall not constitute or give rise to a pecuniary liability of the
City or a charge or lien against the City's general credit or taxing power.
Billy's Tap Redevelopment Project Page 5 of 13
H. CITY PUBLIC PROJECTS
The City intends to use part of its share of the Project's real estate tax increment to fund other public
projects in the TIF Redevelopment Area.
I. LIMITED LIABILITY OF CITY TO OTHERS FOR DEVELOPER'S EXPENSES
There shall be no obligation by the City to make any payments to any person other than the Developer,
nor shall the City be obligated to make direct payments to any other contractor,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.
J. COOPERATION OF THE PARTIES
The City and the Developer agree to cooperate fully with each other when requested�o do so concerning
the development of the Developer's 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 Developer's
activities.
K. DEFAULT; CURE; REMEDIES
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 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 tax 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 Non-
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 it is 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.
Billy's Tap Redevelopment Project Page 6 of 13
L. TIME; FORCE MAJEURE
For this Agreement,time is of the essence. The Developer agrees to complete the Project within twelve
(12) months following the execution of this Agreement. Failure to do so shall be cause for the City to
declare the Developer in default and unilaterally terminate the Agreement. However,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 or
invitees)when applicable to Developer or third parties,or any other cause beyond the reasonable control
of Developer or the City.
M. ASSIGNMENT
The rights and obligations of the Developer under this Agreement shall not be assignable.
N. 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.
O. SEVERABILITY
If anysection, 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.
P. 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(3d)day from and including the date of posting,if mailed by registered or certified mail,
return receipt requested,with postage prepaid addressed as follows:
Billy's Tap Redevelopment Project Page 7 of 13
To Developer: To City:
City Clerk
Billy's Tap,Inc. City of Canton
c/o Ashley&BJ Harper, Owners 2 N. Main Street
172 E. Elm Canton,Illinois 61520
Canton, Illinois 61520 Telephone: (309) 647-0020
With copy to:
To Guarantor: Jacob&Klein,Ltd.
Economic Development Group,Ltd.
1701 Clearwater Avenue
Bloomington,Illinois 61704
Telephone: (309)664-7777
Q. SUCCESSORS IN INTEREST
Subject to the Provisions of Section M above, this Agreement shall be binding upon and inure to the
benefit of the Parties hereto and their respective successors and assigns.
R. 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.
S. 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
toaFAQonitswebsiteat: httl2s://www.illinois.gov/idol/FAQs/Pages/prevailing-wage-faq.asl2x. 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 ILLS 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 to 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.
Billy's Tap Redevelopment Project Page 8 of 13
T. 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.
U. WARRANTY OF SIGNATORIES
The signatories o f Developer warrant full authority to both execute this Agreement and to bind the entity
in which they are signing on behalf of.
V. TERM OF THE AGREEMENT
This Agreement shall expire on September 30,2027.The Agreement shall expire sooner if the Developer
files 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 or the Promissory Note
attached hereto.
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 CAN'T'ON,ILLINOIS,an Illinois BILLY'S TAP, INC., and Illinois
Municipal Corporation Corporation
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Billy's Tap Redevelopment Project Page 9 of 13
EXHIBIT 1
SUMMARY OF ESTIMATED TIF ELIGIBLE PROJECT COSTS
Billy's Tap, Inc.
"Billy's Tap Redevelopment Project"
Canton 1 -Downtown/5th Avenue TIF District,City of Canton,Fulton County,Illinois
Project Description: The Developer is proceeding with plans to renovate and connect the two
buildings located on the Property, in order to expand the kitchen and
provide extra seating for Billy's Tap located thereon.
Location: 10 S. tad Street,Canton,Illinois 61520
Parcel Number: 09-08-27-437-008
Stln,a�ecl Eligible Project Costs:
Rehabilitation and Renovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $197,000
Professional Fees (Engineering,Architectural,Legal,Accounting,etc.) . . . . . . . . . . . . . $2,500
Demolition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,700
Utilities Extension. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . :. . . . . . . . . . . . . . . . . $2,300
Total PsdY4QtedEligibl_e Project Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $204,500
*The Developer's total reimbursement of Eligible Project Costs under Sections C(1) of the Agreement
shall not exceed $440,000.00.
Billy's Tap Redevelopment Project Page 10 of 13
EXHIBIT 2
PROMISSORY NOTE
Billy's Tap Redevelopment Project Page 11 of 13
PROMISSORY NOTE
FOR VALUE RECEIVED,Billy's Tap, Inc. (the "Borrower"), promises to pay the City of
Canton,Fulton County,Illinois,an Illinois Municipal Corporation("Lender")the principal sum of Forty
Thousand Dollars($40,000.00)with interest accruing on the unpaid principal at the rate of three percent
(3%) 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 10 S.2 Street,Canton,Illinois
(Parcel Identification#s 09-08-27-437-008) (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 Billy's Tap,,Inc. (the "Redevelopment Agreement") entered into the 20t' day of
August,2019.
The term of this Promissory Note shall commence-on the date the Redevelopment Agreement
is executed between the Borrower and the Lender and end on September 30,2027.
Provided that the Borrower is at all times in compliance with the Redevelopment Agreement
and this Promissory Note, One-Eighth(1/8) of the principal balance of$40,000.00,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 September 30,2020 and continuing on September 30't 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) The Borrower fails to continue business operations on the Property of the business known
as Billy's Tap 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) Defaults any of the provisions set forth in the Redevelopment Agreement.
The undersigned Guarantor, -Q V ,as signatory hereto,personally guarantees
the performance of the Borrower here' der,and shall be jointly and severally liable with the Borrower
for any default of this Promissory Note and any payments of principal and interest due hereunder.
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 Borrower 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
Village,including reasonable attorney fees and court costs,whether judgment is rendered or not.
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 Illinois 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:
BILLY'S TAP, INC. an Illinois CITY OF CANTON,an Illinois Municipal
Corporation Corporati n
BY: A BY:
ayor,City of Canto
NA ME: -f Y' `G2
pa
ATTEST:
TITLE: SI C.i eat City Clerk, City of Canton
DATE: B 1 2A I a O I q DATE:
— 0'2
and
individually
(Print Name)
-antor.
DATE:
EXHIBIT 3
CITY OF CANTON,ILLINOIS
CANTON 1-DOWNTOWN/5TH AVENUE TIF DISTRICT
PRIVATE PROJECT
REQUEST FOR REIMBURSEMENT
BY
BILLY'S TAP, INC.
Date
Attention: City TIF Administrator, City of Canton,Illinois
Re: TIF Redevelopment Agreement,dated August 20,2019
by and between the City of Canton,Illinois,and Billy's Tap,Inc. (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 followingamount(s),to theDeveloper
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: Billv's Tan,Inc.
3. AMOUNTS REQUESTED TO BE DISBURSED:
Description of TIF Eligible Project Cost Amount
Total
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.Egl1i6i1 `4''
of the Redevelopment Agreement.
5. The undersigned certifies and swears under oath that the following statements are true and correct:
(i) the amounts included in (3) above were made or incurred or financed and were necessary for
Billy's Tap Redevelopment Project Page 12 of 13
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 Section `D"of
the Redevelopment Agreement: have not been included in any previous Request for
Reimbursement; have been properly recorded on the Developer's books; 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 are 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 Imowledge of the Developer that would prevent the performance of its obligations under
the Redevelopment Agreement.
Any violation of this oath shall constitute a default of the Redevelopment Agreement and shall be cause
for the City to unilaterally terminate the Redevelopment Agreement.
6. Attached to this Request for Reimbursement is .Exhibit `?" of the Redevelopment Agreement,
together with copies of invoices, proof of payment of the invoices, and Mechanic's Lien Waivers
relating to all items for which reimbursement is being requested.
BY: (Developer)
TITLE:
CITY O CAiVTON ILLIN I
BY:_ � /
TITLE: D_kam: ( /
JACOB &KLEIN,LTD. &TIIE ECONOMIC DEVELOPMENT GROUP,LTD.
BY:
TITLE: DATE:
Billy's Tap Redevelopment Project Page 13 of 13
a
THE }-+.,'coNomic DEVELOPMENT GROuP, LTD,
October 2,2019
Ashley&BJ Harper
Billy's Tap,Inc.
172 E Elm Street
Canton,M 61520
Re: City of Canton 1 Downtown/5th Ave TIF District-Bift's Tap.Inc.
Eligible Project Cost Verification Request
Dear Ashley and BJ:
Pursuant to Section E of your Redevelopment Agreement with the City of Canton in the Canton 1
Downtown/5th Avenue TIF District,you are required to provide us with a"Requisition" (enclosed)
accompanied by"verified bills or statements ofsuppliers, contactors orprofessionals together
with mechanic's lien waivers (whether partial or full)from each of the parties entitled to a
payment'as to all expenses for which you seek reimbursement.
You may submit costs that relate to those categories of estimated TIF Eligible Project Costs that are
listed in"Exhibit 1"(enclosed)of the Redevelopment Agreement. Please submit a gazd invoice showing
it relates to the project for each item submitted. Proof of payment may be in the form of cancelled
checks,lien waivers or itemized bank statements.
Please keep in mind that the total eligible project costs for your project are not to exceed$40,000 per
"Exhibit 1".
We will review any information you submit and get back to you soon thereafter. If you have any
questions,please feel free to call or email me.
Sincerely,
Gtlt,Crawford,Vice President
Enclosures
cc: Ms.Diana Pavley-Rock,City Clerk
!l:\C:','L�'7'OJ��G;'lid lY2\'1•!)'1_i'lTl.11'li !11 is•..::r;, tt;:.. . r.: Ili,;.',Tip 1i1k:Reynrallrr.upd
1701 Clearwater Avenue,Bloomington,IL 61704 (309)664-7777 telephone (309)664-7878 facsimile www.tomjacobgroup.com
EXHIBIT 1
SUMMARY OF ESTIMATED TIF ELIGIBLE PROJECT COSTS
Billy's Tap, Inc.
"Billy's Tap Redevelopment Project"
Canton 1 -Downtown/5th Avenue TIF District,City of Canton,Fulton County,Illinois
Project Description: The Developer is proceeding with plans to renovate and connect the two
buildings located on the Property, in order to expand the kitchen and
provide extra seating for Billy's Tap located thereon.
Location: 10 S. 2"d Street, Canton,Illinois 61520
Parcel Number: 09-08-27-437-008
,F:&u fated Eligible Project Costs:
Rehabilitation and Renovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $197,000
Professional Fees (Engineering,Architectural,Legal,Accounting,etc.) . . . . . . . . . . . . . $2,500
Demolition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,700
Utilities Extension. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,300
Total.Estirt2ated Eligible Project Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $204,500
*The Developer's total reimbursement of Eligible Project Costs under Sections C(1) of the Agreement
shall not exceed$40,000.00.
Billy's Tap Redevelopment Project Page 10 of 13
EXHIBIT 3
CITY OF CANTON, ILLINOIS
CANTON 1-DOWNTOWN/5TH AVENUE TIF DISTRICT
PRIVATE PROJECT
REQUEST FOR REIMBURSEMENT
BY
BILLY'S TAP, INC.
Date
Attention: City TIF Administrator, City of Canton,Illinois
Re: TIF Redevelopment Agreement, dated August 20,2019
by and between the City of Canton,Illinois,and Billy's Tap,Inc. (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 followingamount(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: Billy's Tap,Inc.
3. AMOUNTS REQUESTED TO BE DISBURSED:
Description of TIF Eligible Project Cost Amount
Total
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 `4"
of the Redevelopment Agreement.
5. The undersigned certifies and swears under oath that the following statements are true and correct:
(i) the amounts included in (3) above were made or incurred or financed and were necessary for
Billy's Tap Redevelopment Project Page 12 of 13
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 Section `D"of
the Redevelopment Agreement: have not been included in any previous Request for
Reimbursement; have been properly recorded on the Developer's books; 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 are 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.
Any violation of this oath shall constitute a default of the Redevelopment Agreement and shall be cause
for the City to unilaterally terminate the Redevelopment Agreement.
6. Attached to this Request for Reimbursement is .Exhibit `T" of the Redevelopment Agreement,
together with copies of invoices, proof of payment of the invoices, and Mechanic's Lien Waivers
relating to all items for which reimbursement is being requested.
BY: (Developer)
TITLE:
CITY OF CANTON,ILLINOIS
BY:
TITLE: DATE:
JACOB&KLEIN,LTD. &THE ECONOMIC DEVELOPMENT GROUP,LTD.
BY:
TITLE: DATE:
Billy's Tap Redevelopment Project Page 13 of 13