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HomeMy WebLinkAboutOrdinance#4237 - Lease of Municipally Owned Real Property; South Side of E. Old Beach Road; Lot No. 9 ORDINANCE NO. 4237 ORDINANCE AUTHORIZING A LEASE OF MUNICIPALLY OWNED REAL PROPERTY WHEREAS,the City of Canton owns the following described real property: Lot No. 9 of the Old Beach Addition to Lake Canton, Fulton County, Illinois which property is generally located on the south side of E. Old Beach Road, Canton, Illinois, has P.I.N. No. 10-09-30-206-009 and is currently used as residential real property; WHEREAS, the City Council of the City of Canton has determined that it is in the best interest of the City of Canton that it enter into a lease for municipally owned property and said lease is attached hereto as Exhibit A; a WHEREAS, pursuant to Section 11-76-2 of the Illinois Municipal Code, 65 ILCS 5/11- 76-2, notice has been given of the proposal to lease such real estate, said notice having first been published on May 14, 2021 and having been published at least once in the Canton Daily Ledger, a newspaper published in the county in which the municipality is located, not less than 15 nor more than 30 days before the date on which it is proposed to adopt this Ordinance; WHEREAS, pursuant to said notice, this Ordinance was adopted at the regular meeting of the City Council held on June 1, 2021; and WHEREAS,the City Council finds and determines that the best interests of the City of Canton and its residents will be served by the approval of the above-referenced lease. NOW,THEREFORE,BE IT ORDAINED by the City Council of the City of Canton, Fulton County, Illinois, as follows: 1. The City Council finds as facts the recitals hereinabove set forth. 2. The lease to Annette Landis is hereby accepted by the City Council of the City of Canton for the lease of the following described real estate: Lot No. 9 of the Old Beach Addition to Lake Canton, Fulton County, Illinois. Commonly known as (no address assigned) E. Old Beach Road, Canton, Illinois P.I.N. No. 10-09-30-206-009. 3. The Mayor is hereby authorized and directed to sign and the City Clerk is hereby authorized and directed to attest to a lease of the aforesaid real estate, and said lease shall be substantially in the form attached hereto as "Exhibit A." The City Attorney is authorized to make reasonable, final revisions to the lease that are otherwise consistent with this Ordinance. 4. The Mayor and the Clerk are hereby authorized, respectively, to execute and attest such other documents as may be necessary to the conveyance herein authorized. 5. This ordinance shall be in full force and effect from and after its passage and approval in the manner provided by law. PASSED THIS 1st day of June, 2021 AYES: Mayor Kent McDowell, Aldermen Justin Nelson, Angela Lingenfelter, Jeff Fritz, Angela Hale, Craig West, John Lovell, Andra Chamberlin, Greg Gossett NAYES: None ABSENT: None APPROVED THIS 1st DAY OF June, 2021. APPROVED: , ��GJ "` Ken . McDowell, Mayor ATTE Diana Pav ey-Rock, i ************************************************************** LEASE AGREEMENT The City of Canton, an Illinois municipal corporation (the "City") makes this Lease Agreement ("Lease") with RYAN H. REITH("Lessee") on the 10th day of June, 2021. The City owns the real property located at or about 24792 E. Old Beach Road (Lot 2), Canton, Illinois; and The City also owns Lot Number Nine (9) in Old Beach Addition to Lake Canton, in the County of Fulton, in the State of Illinois (the "Leased Property"), which would benefit (Lot 2) 24792 E. Old Beach Road, Canton, Illinois; Lessee desires to lease the Leased Property owned by the City and the City and Lessee desire to enter into the Lease according to the terms and conditions set forth below. 1. DESCRIPTION: The real property leased to Lessee under this Lease (hereinafter the "Leased Property" or the "Property") is described as follows: Lot Number Nine (9) in Old Beach Addition to Lake Canton, in the County of Fulton, in the State of Illinois. Common Address: (No Address Assigned) Old Beach Road, Canton, Illinois 61520 P.I.N.: 10-09-30-206-009 2. TERM: The term of this Lease shall be for a period of forty (40)years from this date provided that an additional year shall be added to its term on each anniversary date hereof so that there shall always be a minimum of thirty-nine years and one day remaining on the term. In the event that the City of Canton Lake Lot Lease, dated June 10,2021, for Lot 2, by and between the City of Canton and Ryan H. Reith is terminated for any reason or is assigned, this Lease shall be deemed null,void, and of no further effect, except as set forth in Section 13. 3. USE: Lessee shall use the Leased Property for residential and personal purposes only, specifically the Leased Property may only be used for the purposes of a residential garage, storage shed, or similar structure to for the use and benefit of Lot Number Two (2) in Old Beach Addition to Lake Canton, in the County of Fulton, in the State of Illinois. In no event may Lessee inhabit or otherwise reside on the Leased Property or use the Leased Property for any other purpose without a further approval by the City Council. Lessee may not use the Leased Property for any other uses or purposes. At all times,Lessee must take reasonable and legal steps to protect the lake from pollution, undue erosion, and other injury. 4. RENT: Lessee shall pay rent to the City a sum of money representing ten percent (10%) of the equalized assessed valuation of the land portion for real estate tax purposes. The assessed valuation from the Quadrennial Reassessment shall be used to make the calculation, thus rental rates will be readjusted as necessary every four years. In the event an assessment or Quadrennial Reassessment is unavailable or otherwise not previously conducted due to the City's ownership, then the rent may be based upon an estimated assessed valuation from the Fulton County Assessor, until the property is assessed/re-assessed. Payment of rent shall be made in advance on or before the first day of June. To secure the payment of rent and other agreements in this Lease the City shall have the superior lien (inferior only to mechanic's liens) on all improvements on the Leased Property in addition to any other liens and remedies it may have at law. At the option of the City, its lien may be enforced in equity or by distress or by foreclosure sale. 5. MORTGAGE: Notwithstanding the provisions of Paragraphs 13 hereof,Lessee may mortgage the leasehold hereby granted, together with all improvements now or by Lessee hereafter on the leased premises, and the mortgagee and assigns may cause this Lease and such mortgage or either of them to be filed for record in the Recorder's Office of said County and enforce said mortgage and acquire title to the leasehold and such improvements in any lawful way and rent the Leased Property pending foreclosure and acquisition and disposal of title, and the mortgagee or assigns may sell and assign said leasehold and improvements. No default or action by Lessee or those claiming through or under Lessee shall be effective as against the mortgagee or the mortgagee's assigns, unless the mortgagee or the mortgagee's assigns fail to pay, or cause to be paid, within thirty(30)days after being served with written notice thereof,any delinquent taxes on the leasehold or improvements thereon, or sums then owing to the City under said Lease. The mortgagee and assigns shall comply with the provisions of the Lease in the like manner as Lessee is required to do in the event the mortgagee should acquire title to the leasehold. 6. TAXES: Lessee shall be solely responsible and pay all taxes and assessments on the Leased Property and its improvements before they become delinquent. Failure to pay such taxes by their due date shall be deemed a default of this Lease. 7. UTILITIES: Lessee shall be solely responsible for an pay all charges for water, garbage removal, electricity,telephone, cable, satellite/tv, interne, fiber, gas, wastewater treatment and/or disposal, or other service for the Leased Property (collectively "utilities"). Failure to pay such utilities shall be deemed a default of this Lease.Lessee shall also be responsible for the installation, maintenance, removal and/or repair of any water lines, sewer lines, wastewater treatment and/or disposal, private sewage disposal systems, electricity/power lines, internet/telephone/tv connections, fiber lines, gas lines, or other utility connections located upon the Leased Property. 2 8. PERMITTED STRUCTURES: Lessee may use up to 80 x 100 feet of the Leased Property to build or otherwise utilize a garage, storage shed, or similar structure ("Permitted Structures"). Lessee shall not have more than one garage, storage shed, or similar structure on the Leased Property at any one time, unless permitted by the City. In the event there are more than one structures on the Leased Property at the time of the Lease,then permission shall be deemed granted for the additional structure(s) at this time. Before commencing any new construction, Lessee must submit all necessary plans, as determined in the City's sole discretion, showing plumbing and sewage disposal, location on lot, etc. to the City and obtain written approval (i.e. building permit, if required) from the City. Lessee must additionally obtain written approval (i.e. a building permit, if required) from Fulton County, if necessary. If Lessee commences any such construction without such approvals, the City may remove Lessee's improvements and charge Lessee for the removal. No one else's lien may attach to any improvement built without the City's written approval. If said Permitted Structures are found in disrepair, Lessee has thirty(30)days after notice from the City to either correct the defective conditions of said Permitted Structures or remove and replace them. If the Permitted Structures are replaced, whatever has been removed shall properly be disposed of in accordance with all applicable laws, rules and regulations. Repair and/or removal and replacement shall be at the sole expense of Lessee. If Lessee fails to correct the defective condition within the thirty (30) day period, the City reserves the right to take any remedial action necessary to correct the condition, including demolishing the Permitted Structures and disposing of same. The City shall be reimbursed by Lessee for any and all costs associated with the City's required remedial action,whether City engages in the corrective work or demolition work itself or hires a third party to engage in same. Lessee shall follow all ordinances, rules and regulations adopted by the City Council of the City of Canton, Illinois, applicable to Lake Canton and/or the Leased Property. Failure to comply with said ordinances, rules, and regulations may be deemed a default of this Lease. 9. PRIVATE SEWAGE DISPOSAL SYSTEMS: Private sewage disposal systems shall be permitted, installed, maintained and replaced in accordance with the rules and regulations as prescribed by the Illinois Department of Public Health, Fulton County Health Department, Illinois Environmental Protection Agency and U.S. Environmental Protection Agency. Private sewage disposal systems shall be inspected,at the cost of the Lessee,for proper operation and sludge levels at the time of Lease renewal or transfer of Lease. Documentation from the inspection shall be submitted to the City within five (5) days of the inspection completion. Private sewage disposal systems shall have tanks pumped for solids removal by a licensed tank cleaning company every three (3) years. Documentation from the tank cleaning company verifying their work has been completed shall be submitted to the City within five (5) days of completion of their work. The systems shall be inspected by the Fulton County Health Department every ten (10) years. Documentation of completion of said inspections by the Fulton County Health Department shall be provided to the City within five(5)days of completion of their inspection. The systems utilizing aeriation equipment in conjunction with disinfection tanks shall have proper disinfection chemicals installed and must be functional at all times. Discharges from private sewage disposal systems shall not cause erosion issues or contribute to soil migration and those found to cause these issues must be replaced by Lessee at Lessee's expense. 3 If Lessee's private sewage disposal system is found in disrepair, Lessee has thirty (30) days to either correct the defective conditions of said system or remove and replace said system. If the system is replaced it shall properly be disposed of in accordance with all applicable laws,rules and regulations. Repair and/or removal and replacement shall be at the sole expense of Lessee. If Lessee fails to correct the defective condition within the thirty (30) day period, the City reserves the right to take any remedial action necessary to correct the condition and dispose of the system. The City shall be reimbursed by Lessee for any and all costs associated with the City's required remedial action, whether City engages in the corrective work itself or hires a third party to engage in same. 10. INSURANCE: Lessee shall obtain insurance on any improvements located on the Leased Property and shall be responsible for all necessary liability or casualty insurance for the Leased Property. The City shall not be liable for damage to Lessee's property or the Leased Property,and the Lessee holds the City harmless from same. 11. WATER LEVEL: It is understood that the City will not be responsible for maintaining any certain lake level and will not be responsible for damage caused to Lessee's improvements or other property of Lessee by the action of the waters. The City reserves the right to raise/lower the water levels of Lake Canton, and the City shall not be responsible for damage caused to Lessee's improvements or other property of Lessee by said raising/lowering of the water levels of Lake Canton. 12. GENERAL REGULATIONS: Lessee will: a. Keep the Leased Property neat and clean and free from noxious weeds and debris. Also, Lessee will maintain the improvements in good repair; b. Install and maintain such facilities for the disposal of sewage, solid or liquid waste as may be required by the City, Fulton County Health Department, State Department of Public Health or other public authority for sanitation and public health. If sewer connections are available and the City so orders, Lessee will connect to the sewer. In no instance will Lessee allow sewage to enter the lake from the Leased Property; c. Care for and protect from injury all shade and ornamental trees, shrubbery, and sod and Lessee will not remove, trim, or permit the removal or trimming of any trees more than three inches in diameter without the consent of the City; d. Not permit any of the Leased Property to be denuded of vegetation or to be cultivated in such manner as to cause or permit soil erosion. Further, Lessee agrees to maintain the shoreline in good condition; e. Exclude the general public from the Leased Property and from that part of the lake within 25 feet of the shoreline of the Leased Property (except as to navigation); f. Obey all rules, regulations, and ordinances of the City pertaining to leased lots, the lake and surrounding lands and will not allow violations by Lessee's family, Lessee's guests or any other person on the Leased Property; 4 g. Not permit on or near our lot anything in violation of any law—State,Federal, or municipal —or the regulations of any public authority, nor use or permit the premises to be used for any immoral or illegal purposes; h. Not cause nor permit any objectionable noise or odor to be emitted from the Leased Property; nor will Lessee keep on the Leased Property any domestic livestock, poultry, or noisy or dangerous dog; i. Not do nor permit anything to be done or remain on the Leased Property or in or on the lake in any way tending to pollute the waters or to create a nuisance or disturb the peace or quiet of the neighborhood or annoy any occupant of neighboring property; j. Not allow yard waste including grass clippings, leaves or like material to enter the lake from the Leased Property; k. Not use herbicides nor insecticides near the water of the lake nor anywhere rain may wash these chemicals into the lake except with the written permission of the Water Superintendent of the City; 1. Not extend any structure into the lake such a dock, boat lift or any other structure more than fifteen feet (15') from the normal shoreline without express consent of the City. The "normal shoreline"is determined when the water level is even with the top of the spillway. Lessee will not install any separate structure such as a fence, post, etc. below the normal water surface. 13. TRANSFER: Lessee may not assign or transfer this Lease or any interest in Lease without the consent of the City; however, Lessee may mortgage the leasehold. This Lease may not be transferred by a mortgagee, receiver, trustee in bankruptcy or other representative of Lessee nor may it be transferred by operation of law, legal process or any other means whatsoever without the written consent of the City, which consent will not be unreasonably withheld. No part of the leased premises may be used by any person other than the Grantor of Lessee, Grantor's family, beneficiaries of Lessee (subject to the requirements below) and their family, guests, and employees without written consent of the City. Lessee understands that the annual rent may be adjusted upon transfer. Should Lessee desire to assign or transfer this Lease to any other person, Lessee shall first give written notice to the City with the name of the proposed transferee. No transfer shall be effective unless notice is given to the City,the City approves of the transfer/assignment, a new lease is prepared by the City and the new lease,when signed,is filed with the Fulton County Recorder. In the event of a permissible transfer of the City of Canton Lake Lot Lease, dated June 10,2021,for Lot 2, according to the terms therein, then this Lease Agreement (or a leasehold interest in Leased Property hereunder)may be transferred simultaneously with the City of Canton Lake Lot Lease,dated June 10,2021 for Lot 2, without being subject to termination pursuant to Section 2. The City may then choose to lease Lots 2 and 9 together in said event, in its discretion, and subject to terms satisfactory to the City. Nothing in this provision modifies the necessity of the City's approval of any assignments, which will not be unreasonably withheld. The City understands that Lessee intends to make improvements to Lot 2 for the purpose of benefitting Lot 9. 5 14. VOLUNTARY CANCELLATION: Lessee may surrender this Lease if Lessee has fully performed Lessee's duties and thus be relieved of any further obligation under this Lease. 15. RESERVED RIGHTS OF CITY: a. Lessee understands that the if the City requires exclusive use of the Leased Property for any public purpose,which is inconsistent with Lessee's occupancy of it,the City may terminate this Lease by giving Lessee six months written notice of its intention and paying Lessee for the value of Lessee's improvements. If the City exercises its rights hereunder, it shall pay to Lessee an amount equal to the value of the premises which shall not exceed the fair market value of the premises. In the event that the City and Lessee cannot agree as to the fair market value of the premises, each shall select a qualified professional real estate appraiser,and the appraisers so selected shall select a third qualified professional real estate appraiser, and the fair market value of the premises shall be the average of the highest and lowest appraisals submitted by these three appraisers. b. Representatives of the City may come upon the Leased Property as follows: (1) At any and all times for the purpose of inspecting. (2) At any time to gain needed access to other land. (3) To plant and care for trees and other vegetation. (4)To construct,operate and maintain sewer,water and gas pipes,electrical lines and pipes and lines for other services and their appurtenances. (5) To improve and protect the shoreline. (6) To do any other work necessary to maintain the lake or its structures. (7) To provide services to the Lessee and/or other property owners near the Leased Property (e.g. trash collection). c. The City is hereby released and held harmless from any and all damages, costs, expenses, liabilities, causes of action, or suits arising from or related to the exercising of any of its rights under this Section 15, including but not limited to the entering upon the Leased Property for any of the above reasons. 16. DEFAULT: Lessee understand that the City may, at its option, terminate this Lease: a. If Lessee fails to perform Lessee's duties under this Lease, or is otherwise in default of this Lease as set forth elsewhere in this Lease, and fail to remedy the non-performance or other default after sixty (60) days written notice from the City. b. If Lessee fails to vacate at the end of the Lease term. c. If the Lease has been transferred other than in accordance with the provisions in paragraph 13. d. Upon termination, the City may without further demand or notice, enter and take possession of the premises and expel Lessee or anyone else found there without being 6 guilty of forcible entry of trespass and without liability for loss or damage. All buildings and other improvements at the option of the City may become the City's property in full settlement as liquidated damages. The City may take any and all actions available at law or in equity to enforce the terms and conditions of this Lease. In the event the City is required to enforce the terms and conditions of this Lease,then the Lessee shall be responsible for all reasonable attorney's fees and costs incurred by the City. 17. ANNEXATION: Lessee shall not be deemed to inhabit or otherwise reside on the Leased Property for any reason. Lessee acknowledges and understands that for purposes of any future annexation(s), the Leased Premises, at the time of execution of this Lease and during the term of this Lease leading up to said annexation,may become contiguous to the City of Canton(with other annexations), are unincorporated, and are uninhabited. Lessee shall cooperate, as necessary in the opinion of the City, for the purposes of annexing any or all of the Leased Property, including without limitation, by joining in or signing any Petitions for Annexation as requested by the City. Lessee understands and acknowledges that the City may annex the Leased Property in the near future, and in said event, Lessee hereby fully consents to any and all annexations of the Leased Property,by the City of Canton,as a condition of this Lease.Lessee acknowledges and understands that the City would not enter into this Lease without the explicit permission, hereby granted by this Paragraph, for the City to annex any part of or all of the Leased Property. In the event Lessee fails to cooperate as requested, challenges, or otherwise objects to the annexation as it pertains to the Leased Property, then this Lease shall be deemed null, void, and of no further effect. In such event, the Lessee shall immediately vacate the Leased Property and the City shall have no obligation to compensate the Lessee for any improvements on the Leased Property. LESSEE: RYAN H. REITH STATE OF ILLINOIS, ) ) ss. COUNTY OF FULTON ) I,the undersigned, a Notary Public in and for said County in the State aforesaid, do hereby certify that RYAN H. REITH personally known to me to be the same person(s)whose name(s) are subscribed to the foregoing instrument, appeared before me this day in person and severally acknowledged that they signed, sealed, and delivered the said instrument as their free and voluntary act for the uses and purposes therein set forth. Given under my hand and notarial seal, this day of , 2021. Notary Public [CITY OF CANTON, ILLINOIS SIGNATURE PAGE TO FOLLOW] 7 CITY OF CANTON, ILLINOIS By: Kent A. McDowell, Mayor Attest: Diana Pavley-Rock, City Clerk STATE OF ILLINOIS, ) ss. COUNTY OF FULTON ) I,the undersigned, a Notary Public in and for said County in the State aforesaid, do hereby certify that Kent A. McDowell, Mayor and Diana Pavley-Rock, City Clerk, of the City of Canton, Illinois, personally known to me to be the same persons and such officers, respectively, whose names are subscribed to the foregoing instrument, appeared before me this day in person and severally acknowledged that they signed, sealed and delivered the said instrument as the free and voluntary act of the said City, for the uses and purposes therein set forth,pursuant to due authority conferred by its Council. Given under my hand and notarial seal,this day of , 2021. Notary Public Send tax notice to: RYAN H. REITH 24792 E. Old Beach Road Canton, Illinois This instrument prepared by and return to: City Attorney City of Canton 2 N. Main Street Canton, IL 61520 Telephone (309) 647-0065 8 2199366 PATRICK C'BRIAN COUNTY CLERK & RECORDER FULTON COUNTY, IL RECORDED ON 11;1012o21 12:47 PM RECORDING FEE 67.00 PAGES: B LEASE AGREEMENT The City of Canton, an Illinois municipal corporation (the "City") makes this Lease Agreement("Lease")with RYAN H. REITH("Lessee") on the 1 Oth day of June, 2021. The City owns the real property located at or about 24792 E. Old Beach Road (Lot 2); Canton, Illinois; and The City also owns Lot Number Nine (9) in Old Beach Addition to Lake Canton, in the County of Fulton, in the State of Illinois (the "Leased Property"), which would benefit (Lot 2) 24792 E. Old Beach Road, Canton,Illinois; Lessee desires to lease the Leased Property owned by the City and the City and Lessee desire to enter into the Lease according to the terms and conditions set forth below. 1. DESCRIPTION: The real property leased to Lessee under this Lease(hereinafter the"Leased Property"or the"Property") is described as follows: Lot Number Nine(9) in Old Beach Addition to Lake Canton,in the County of Fulton, in the State of Illinois. Common Address: (No Address Assigned) Old Beach Road, Canton,Illinois 61520 P.I.N.: 10-09-30-206-009 2. TERM: The term of this Lease shall be for a period of forty(40)years from this date provided that an additional year shall be added to its term on each anniversary date hereof so that there shall always be a minimum of thirty-nine years and one day remaining on the term. In the event that the City of Canton Lake Lot Lease, dated June 10, 2021, for Lot 2, by and between the City of Canton and Ryan H. Reith is terminated for any reason or is assigned, this Lease shall be deemed null,void, and of no further effect, except as set forth in Section 13. 3. USE: Lessee shall use the Leased Property for residential and personal purposes only, specifically the Leased Property may only be used for the purposes of a residential garage, storage shed, or similar structure to for the use and benefit of Lot Number Two (2)in Old Beach Addition to Lake Canton, in the County of Fulton, in the State of Illinois. In no event may Lessee inhabit or otherwise reside on the Leased Property or use the Leased Property for any other purpose without a further approval by the City Council. Lessee may not use the Leased Property for any other uses or purposes.At all times,Lessee must take reasonable and legal steps to protect the lake from pollution, undue erosion, and other injury. 4. RENT: Lessee shall pay rent to the City a sum of money representing ten percent (10%) of the equalized assessed valuation of the land portion for real estate tax purposes. The assessed valuation from the Quadrennial Reassessment shall be used to make the calculation, thus rental rates will be readjusted as necessary every four years. In the event an assessment or Quadrennial Reassessment is unavailable or otherwise not previously conducted due to the City's ownership, then the rent may be based upon an estimated assessed valuation from the Fulton County Assessor, until the property is assessed/re-assessed. Payment of rent shall be made in advance on or before the first day of June. To secure the payment of rent and other agreements in this Lease the City shall have the superior lien (inferior only to mechanic's liens) on all improvements on the Leased Property in addition to any other liens and remedies it may have at law. At the option of the City,its lien may be enforced in equity or by distress or by foreclosure sale. 5. MORTGAGE: Notwithstanding the provisions of Paragraphs 13 hereof,Lessee may mortgage the leasehold hereby granted, together with all improvements now or by Lessee hereafter on the leased premises, and the mortgagee and assigns may cause this Lease and such mortgage or either of them to be filed for record in the Recorder's Office of said County and enforce said mortgage and acquire title to the leasehold and such improvements in any lawful way and rent the Leased Property pending foreclosure and acquisition and disposal of title, and the mortgagee or assigns may sell and assign said leasehold and improvements. No default or action by Lessee or those claiming through or under Lessee shall be effective as against the mortgagee or the mortgagee's assigns, unless the mortgagee or the mortgagee's assigns fail to pay, or cause to be paid, within thirty(30)days after being served with written notice thereof,any delinquent taxes on the leasehold or improvements thereon, or sums then owing to the City under said Lease. The mortgagee and assigns shall comply with the provisions'of the Lease in the like manner as Lessee is required to do in the event the mortgagee should acquire title to the leasehold. 6. TAXES: Lessee shall be solely responsible and pay all taxes and assessments on the Leased Property and its improvements before they become delinquent. Failure to pay such taxes by their due date shall be deemed a default of this Lease. 7. UTILITIES: Lessee shall be solely responsible for an pay all charges for water, garbage removal;electricity, telephone, cable, satellite/tv, internet, fiber, gas, wastewater treatment and/or disposal, or other service for the Leased Property (collectively "utilities"). Failure to pay such utilities shall be deemed a default of this Lease.Lessee shall also be responsible for the installation, maintenance, removal and/or repair of any water lines, sewer lines, wastewater treatment and/or disposal, private sewage disposal systems, electricity/power lines, internet/telephone/tv connections, fiber lines, gas lines, or other utility connections located upon the Leased Property. 2 8. PERMITTED STRUCTURES: Lessee may use up to 80 x 100 feet of the Leased Property to build or otherwise utilize a garage, storage shed, or similar structure ("Permitted Structures"). Lessee shall not have more than one garage, storage shed, or similar structure on the Leased Property at any one time, unless permitted by the City. In the event there are more than one structures on the Leased Property at the time of the Lease,then permission shall be deemed granted for the additional structure(s) at this time. Before commencing any new construction,Lessee must submit all necessary plans,as determined in the City's sole discretion, showing plumbing and sewage disposal, location on lot, etc. to the City and obtain written approval (i.e. building permit, if required) from the City. Lessee must additionally obtain written approval (i.e. a building permit, if required) from Fulton County, if necessary. If Lessee commences any such construction without such approvals, the City may remove Lessee's improvements and charge Lessee for the removal. No one else's lien may attach to any improvement built without the City's written approval. If said Permitted Structures are found in disrepair,Lessee has thirty(30)days after notice from the City to either correct the defective conditions of said Permitted Structures or remove and replace them. If the Permitted Structures are replaced, whatever has been removed shall properly be disposed of in accordance with all applicable laws, rules and regulations. Repair and/or removal and replacement shall be at the sole expense of Lessee. If Lessee fails to correct the defective condition within the thirty (30) day period, the City reserves the right to take any remedial action necessary to correct the condition, including demolishing the Permitted Structures and disposing of same. The City shall be reimbursed by Lessee for any and all costs associated with the City's required remedial action,whether City engages in the corrective work or demolition work itself or hires a third party to engage in same. Lessee shall follow all ordinances, rules and regulations adopted by the City Council of the City of Canton,Illinois, applicable to Lake Canton and/or the Leased Property. Failure to comply with said ordinances, rules, and regulations may be deemed a default of this Lease. 9. PRIVATE SEWAGE DISPOSAL SYSTEMS: Private sewage disposal systems shall be permitted, installed, maintained and replaced in accordance with the rules and regulations as prescribed by the Illinois Department of Public Health, Fulton County Health Department, Illinois Environmental Protection Agency and U.S. Environmental Protection Agency. Private sewage disposal systems shall be inspected,at the cost of the Lessee,for proper operation and sludge levels at the time of Lease renewal or transfer of Lease. Documentation from the inspection shall be submitted to the City within five (5) days of the inspection completion. Private sewage disposal systems shall have tanks pumped for solids removal by a licensed tank cleaning company every three (3) years. Documentation from the tank cleaning company verifying their work has been completed shall be submitted to the City within five (5) days of completion of their work. The systems shall be inspected by the Fulton County Health Department every ten (10) years. Documentation of completion of said inspections by the Fulton County Health Department shall be provided to the City within five(5)days of completion of their inspection. The systems utilizing aeriation equipment in conjunction with disinfection tanks shall have proper disinfection chemicals installed and must be functional at all times. Discharges from private sewage disposal systems shall not cause erosion issues or contribute to soil migration and those found to cause these issues must be replaced by Lessee at Lessee's expense. 3 If Lessee's private sewage disposal system is found in disrepair, Lessee has thirty (30) days to either correct the defective conditions of said system or remove and replace said system. If the system is replaced it shall properly be disposed of in accordance with all applicable laws,rules and regulations. Repair and/or removal and replacement shall be at the sole expense of Lessee. If Lessee fails to correct the defective condition within the thirty (30) day period, the City reserves the right to take any remedial action necessary to correct the condition and dispose of the system. The City shall be reimbursed by Lessee for any and all costs associated with the City's required remedial action,whether City engages in the corrective work itself or hires a third party to engage in same. 10. INSURANCE: Lessee shall obtain insurance on any improvements located on the Leased Property and shall be responsible for all necessary liability or casualty insurance for the Leased Property. The City shall not be liable for damage to Lessee's property or the Leased Property,and the Lessee holds the City harmless from same. 11. WATER LEVEL: It is understood that the City will not be responsible for maintaining any certain lake level and will not be responsible for damage caused to Lessee's improvements or other property of Lessee by the action of the waters. The City reserves the right to raise/lower the water levels of Lake Canton, and the City shall not be responsible for damage caused to Lessee's improvements or other property of Lessee by said raising/lowering of the water levels of Lake Canton. 12. GENERAL REGULATIONS: Lessee will: a. Keep the Leased Property neat and clean and free from noxious weeds and debris. Also, Lessee will maintain the improvements in good repair; b. Install and maintain such facilities for the disposal of sewage, solid or liquid waste as may be required by the City, Fulton County Health Department, State Department of Public Health or other public authority for sanitation and public health. If sewer connections are available and the City so orders, Lessee will connect to the sewer. In no instance will Lessee allow sewage to enter the lake from the Leased Property; c. Care for and protect from injury all shade and ornamental trees, shrubbery, and sod and Lessee will not remove, trim, or permit the removal or trimming of any trees more than three inches in diameter without the consent of the City; d. Not permit any of the Leased Property to be denuded of vegetation or to be cultivated in such manner as to cause or permit soil erosion. Further, Lessee agrees to maintain the shoreline in good condition; e. Exclude the general public from the Leased Property and from that part of the lake within 25 feet of the shoreline of the Leased Property (except as to navigation); f. Obey all rules, regulations, and ordinances of the City pertaining to leased lots, the lake and surrounding lands and will not allow violations by Lessee's family,Lessee's guests or any other person on the Leased Property; 4 g. Not permit on or near our lot anything in violation of any law—State,Federal,or municipal —or the regulations of any public authority, nor use or permit the premises to be used for any immoral or illegal purposes; h. Not cause nor permit any objectionable noise or odor to be emitted from the Leased Property; nor will Lessee keep on the Leased Property any domestic livestock,poultry, or noisy or dangerous dog; i. Not do nor permit anything to be done or remain on the Leased Property or in or on the lake in any way tending to pollute the waters or to create a nuisance or disturb the peace or quiet of the neighborhood or annoy any occupant of neighboring property; j. Not allow yard waste including grass clippings, leaves or like material to enter the lake from the Leased Property; k. Not use herbicides nor insecticides near the water of the lake nor anywhere rain may wash these chemicals into the lake except with the written permission of the Water Superintendent of the City; 1. Not extend any structure into the lake such a dock, boat lift or any other structure more than fifteen feet (15') from the normal shoreline without express consent of the City. The "normal shoreline"is determined when the water level is even with the top of the spillway. Lessee will not install any separate structure such as a fence, post, etc. below the normal water surface. 13. TRANSFER: Lessee may not assign or transfer this Lease or any interest in Lease without the consent .of the City; however, Lessee may mortgage the leasehold. This Lease may not be transferred by a mortgagee, receiver, trustee in bankruptcy or other representative of Lessee nor may it be transferred by operation of law, legal process or any other means whatsoever without the written consent of the City, which consent will not be unreasonably withheld. No part of the leased premises may be used by any person other than the Grantor of Lessee, Grantor's family, beneficiaries of Lessee (subject to the requirements below)and their family,guests,and employees without written consent of the City. Lessee understands that the annual rent may be adjusted upon transfer. Should Lessee desire to assign or transfer this Lease to any other person, Lessee shall first give written notice to the City with the name of the proposed transferee. No transfer shall be effective unless notice is given to the City,the City approves ofthe transfer/assignment, a new lease is prepared by the City and the new lease,when signed,is filed with the Fulton County Recorder. In the event of a permissible transfer of the City of Canton Lake Lot Lease,dated June 10,2021,for Lot 2, according to the terms therein, then this Lease Agreement (or a leasehold interest in Leased Property hereunder)may be transferred simultaneously with the City of Canton Lake Lot Lease,dated June 10,2021 for Lot 2, without being subject to termination pursuant to Section 2. The City may then choose to lease Lots 2 and 9 together in said event, in its discretion, and subject to terms satisfactory to the City.Nothing in this provision modifies the necessity of the City's approval of any assignments, which will not be unreasonably withheld. The City understands that Lessee intends to make improvements to Lot 2 for the purpose of benefitting Lot 9. 5 14. VOLUNTARY CANCELLATION: Lessee may surrender this Lease if Lessee has fully performed Lessee's duties and thus be relieved of any further obligation under this Lease. 15. RESERVED RIGHTS OF CITY: a. Lessee understands that the if the City requires exclusive use of the Leased Property for any public purpose,which is inconsistent with Lessee's occupancy of it,the City may terminate this Lease by giving Lessee six months written notice of its intention and paying Lessee for the value of Lessee's improvements. If the City exercises its rights hereunder, it shall pay to Lessee an amount equal to the value of the premises which shall not exceed the fair market value of the premises. In the event that the City and Lessee cannot agree as to the fair market value of the premises, each shall select a qualified professional real estate appraiser,and the appraisers so selected shall select a third qualified professional real estate appraiser, and the fair market value of the premises shall be the average of the highest and lowest appraisals submitted by these three appraisers. b. Representatives of the City may come upon the Leased Property as follows: (1) At any and all times for the purpose of inspecting. (2)At any time to gain needed access to other land. (3) To plant and care for trees and other vegetation. (4)To construct,operate and maintain sewer,water and gas pipes,electrical lines and pipes and lines for other services and their appurtenances. (5) To improve and protect the shoreline. (6) To do any other work necessary to maintain the lake or its structures. (7) To provide services to the Lessee and/or other property owners near the Leased Property (e.g. trash collection). c. The City is hereby released and held harmless from any and all damages, costs, expenses, liabilities, causes of action, or suits arising from or related to the exercising of any of its rights under this Section 15, including but not limited to the entering upon the Leased Property for any of the above reasons. 16. DEFAULT: Lessee understand that the City may, at its option, terminate this Lease: a. If Lessee fails to perform Lessee's duties under this Lease,or is otherwise in default of this Lease as set forth elsewhere in this Lease, and fail to remedy the non-performance or other default after sixty (60) days written notice from the City. b. If Lessee fails to vacate at the end of the Lease term. c. If the Lease has been transferred other than in accordance with the provisions in paragraph 13. d. Upon termination, the City may without further demand or notice, enter and take possession of the premises and expel Lessee or anyone else found there without being 6 guilty of forcible entry of trespass and without liability for loss or damage. All buildings and other improvements at the option of the City may become the City's property in full settlement as liquidated damages. The City may take any and all actions available at law or in equity to enforce the terms and conditions of this Lease. In the event the City is required to enforce the terms and conditions of this Lease,then the Lessee shall be responsible for all reasonable attorney's fees and costs incurred by the City. 17. ANNEXATION: Lessee shall not be deemed to inhabit or otherwise reside on the Leased Property for any reason. Lessee acknowledges and understands that for purposes of any future annexation(s), the Leased Premises, at the time of execution of this Lease and during the term of this Lease leading up to said annexation,may become contiguous to the City of Canton(with other annexations), are unincorporated, and are uninhabited. Lessee shall cooperate, as necessary in the opinion of the City, for the purposes of annexing any or all of the Leased Property, including without limitation, by joining in or signing any Petitions for Annexation as requested by the City. Lessee understands and acknowledges that the City may annex the Leased Property in the near future, and in said event, Lessee hereby fully consents to any and all annexations of the Leased Property,by the City of Canton,as a condition of this Lease.Lessee acknowledges and understands that the City would not enter into this Lease without the explicit permission, hereby granted by this Paragraph, for the City to annex any part of or all of the Leased Property. In the event Lessee fails to cooperate as requested, challenges, or otherwise objects to the annexation as it pertains to the Leased Property, then this Lease shall be deemed null, void, and of no fin ther effect. In such event, the Lessee shall immediately vacate the Leased Property and the City shall have no obligation to compensate the Lessee for any improvements on the Leased Property. E EE: RYAN H. TH STATE OF ILLINOIS, ) ss. COUNTY OF FULTON ) I,the undersigned,a Notary Public in and for said County in the State aforesaid,do hereby certify that RYAN H.REITH personally known to me to be the same person(s)whose name(s)are subscribed to the foregoing instrument, appeared before me this day in person and severally acknowledged that they signed, sealed, and delivered the said instrument as their free and voluntary act for the uses and purposes therein set forth. Given under=PUBLIC,STATE ea , L D day of \J UYU& , 2021. IWNOIS0/2022 Notary Public [CITY OF CANTON, ILLINOIS SIGNATURE PAGE TO FOLLOW] 7 CITY OF CANTON, ILL OIS By: V"e Kent I MCDOWe ayor Attest: Diana ey- oc , Clerk STATE OF ILLINOIS, ) ss. COUNTY OF FULTON ) I,the undersigned, a Notary Public in and for said County in the State aforesaid,do hereby certify that Kent A. McDowell,Mayor and Diana Pavley-Rock, City Clerk, of the City of Canton, Illinois, personally known to me to be the same persons and such officers, respectively, whose names are subscribed to the foregoing instrument, appeared before me this day in person and severally acknowledged that they signed, sealed and delivered the said instrument as the free and voluntary act of the said City,for the uses and purposes therein set forth,pursuant to due authority conferred by its Council. Given under my hand and notarial seal,this q day of , 2021. OFFICIAL SEAL No Public CAROL E KOHLER �' NOTARY PUBLIC-STATE OF ILLINOIS MY COMMISSION EXPIRES:10102l22 Send tax notice to: RYAN H. REITH 24792 E. Old Beach Road Canton,Illinois This instrument prepared by and return to: City Attorney City of Canton 2 N. Main Street Canton, IL 61520 Telephone (309) 647-0065 8