HomeMy WebLinkAboutOrdinance#4267 - Redevelopment Agreement between the City of Canton and Jon M. Newburn & Kimberley A. Newburn 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
21ST DAY OF DECEMBER, 2021 ADOPTED ORDINANCE NO. 4267, A TRUE AND
CORRECT COPY OF WHICH IS CONTAINED IN THIS PAMPHLET.
GIVEN UNDER MY HAND AND SEAL THIS 21 DAY OF DECEMBER, 2021.
(SEAL)
DIANA PAVL -ROC
CITY CLERK
CITY OF CANTON, ILLINOIS
ORDINANCE NO. 4267
AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A
TIF REDEVELOPMENT AGREEMENT
BYAND BETWEEN
THE CITY OF CANTON,FULTON COUNTY,ILLINOIS
AND
JON M.NEWBURN
AND
KIMBERLEY A.NEWBURN
PASSED BY THE CITY COUNCIL
OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS,
ON THE 21s"DAY OF DECEMBER,2021.
PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY
COUNCIL OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS,
THIS 21ST DAY OF DECEMBER,2021.
EFFECTIVE: DECEMBER 21,2021
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CITY OF CANTON, ILLINOIS: ORDINANCE NO. 4267
CANTON 2—RT. 9/CHESTNUT STREET
TAX INCREMENT FINANCING (TIF) DISTRICT
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF A REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON
and
JON M.NEWBURN
and
KIMBERLEY A.NEWBURN
BE IT ORDAINED BY THE CITY OF CANTON, FULTON COUNTY, ILLINOIS
THAT:
1. The Redevelopment Agreement with Jon M. Newburn and Kimberley A. Newburn
(ExhihitA 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 21St day
of December, 2021.
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 21" day of December, 2021, 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
Angie Lingenfelter X
Andra Chamberlin X
Jeff Fritz X
Craig West X
Greg Gossett X
Justin Nelson X
John Lovell X
Angela Hale X
Kent A.McDowell,Mayor
TOTAL VOTES 7 0 1
APPROVED: /" Date 12/ 21/ 2021
ayor,City of Canton
ATTEST: Date: 12/21/ 2021
City erk, City of Canton
ATTACHMENTS:
EXHIBIT A. REDEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF CANTON AND JON
M.NEWBURN AND KIMBERLEY A.NEWBURN.
iii y
EXHIBIT A
CANTON 2—RT. 9/CHESTNUT STREET
TAX INCREMENT FINANCING (TIF) DISTRICT
REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON
and
JON M. NEWBURN
and
KIMBERLEY A. NEWBURN
iv
CANTON 2 - RT. 9/CHESTNUT STREET
TAX INCREMENT FINANCING DISTRICT
REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON, FULTON COUNTY, ILLINOIS
and
JON M. NEWBURN
and
KIMBERLEY A. NEWBURN
DECEMBER 21, 2021
CANTON 2—RT. 9/CHESTNUT STREET
TIF REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON
and
JON M.NEWBURN
and
KIMBERLEY A.NEWBURN
THIS TIF REDEVELOPMENT AGREEMENT (including Exhibits) is entered into this
21" day of December, 2021, by the City of Canton (the "City"), an Illinois Municipal Corporation,
Fulton County, Illinois, and Jon M. Newburn and Kimberley A. Newburn (collectively 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 65 ILCS 5/8-1-2.5, a municipality may appropriate and expend
funds for economic development purposes, including without limitation for commercial enterprises
that are deemed necessary or desirable for the promotion of economic development within the
community; and
WHEREAS, pursuant to the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-
74.4.4 et seq., 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 February 6,2012,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 and designated a
Redevelopment Area known as the Canton 2 - Rt. 9/Chestnut Street TIF District (hereinafter
referred to as the"TIF District");
WHEREAS, one such property is located at 331 W. Locust Street, Canton, Illinois, (P.I.N.
09-08-27-318-014) and is within the TIF District Redevelopment Project Area (the "Property" as
further described in Exhibit"1"attached hereto);and
WHEREAS, the Developer owns the Property and is proceeding with plans to remove one
apartment building and rehabilitate and renovate a second apartment building located at 331 W.Locust
St. (the "Project"), and is doing so based upon incentives made available by the City; and
WHEREAS, it is the intent of the City to encourage economic development which will
increase the real estate tax base of the City,which increased incremental taxes will be used,in part, to
finance incentives to assist development within the TIF District;and
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WHEREAS, the Developer's proposed Project is consistent with the TIF District
Redevelopment Plan and Projects for the Redevelopment Project Area and shall further conform to
the land uses of the City as adopted; and
WHEREAS,pursuant to Section 5/11-74.4-4(b) of the Act,the City may 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 the Redevelopment Plan; and
WHEREAS, pursuant to Section 5/11-74.4-40) of the Act, the City may incur project
redevelopment costs and reimburse developers who incur redevelopment project costs authorized by
a redevelopment agreement and further defined in Section 5/11-74.4-3(q) of the Act,including those
Estimated TIF Eligible Project Costs as herein listed in the attached Exhibit "1" of this
Redevelopment Agreement; and
WHEREAS, the Developer requested that incentives for the development be provided by
the City from incremental increases in real estate taxes of the City generated from its Project and the
City agreed to such incentives; and
WHEREAS, the City has determined that this Project required the incentives requested as
set forth herein 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 and to
generally enhance the economy of the City;and
WHEREAS, the City has reviewed the conditions of the Property and has reason to believe
that the costs of the necessary public and private improvements to be incurred by the Developer in
furtherance of the Project are eligible project costs under the Act and are consistent with the
Redevelopment Plan of the City; and
WHEREAS, the Parties have agreed that the City shall reimburse the Developer Fifty
Percent (50%) of the annual "net" incremental increase in real estate tax revenues derived from the
Developer's Project for reimbursement of the Developer's Estimated TIF Eligible Project Costs as
set forth in Exhibit "1"attached hereto. Such reimbursement shall commence with tax year 2022
payable 2023 real estate tax increment generated by the Project,and shall continue only for the current
remaining life of the TIF District(tax year 2035 payable 2036),or upon the Developer's receipt of the
maximum reimbursement amount of One Hundred Sixty Thousand Five Hundred Dollars and
00/100 Dollars ($160,500.00) as set forth in Exhibit "1"attached hereto, whichever occurs first.
These funds are to be allocated to and when collected shall be paid to the City treasurer for deposit in
a separate account within the Special Tax Allocation Fund for the Canton TIF District 2 designated
as the "Newburn 331 W Locust Apartment Special Account ("Special Account"). "Net" real estate
tax increment is defined as increases in annual real estate tax increment derived from the Developer's
Project after payment of the proportionate amount of administrative fees and costs incurred by the
City and payments pursuant to TIF District Intergovernmental Agreements,if any. The Developer's
proportionate amount is calculated by dividing the increment generated by the Developer's Project by
the total TIF District increment.
WHEREAS, in consideration of the execution of this Agreement, the Developer is
completing the Project as set forth in Exhibit "1'; and
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WHEREAS, the City is entering into this Agreement having encouraged and induced the
Developer to proceed with the Project located on said Property.
AGREEMENTS
NOW,THEREFORE,the Parties,for good and valuable consideration,the receipt of which
is acknowledged,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.
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.
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).
5. Each of the Parties represents that it has taken all actions necessary to authorize its
representatives to execute this Agreement.
B. ADOPTION OF TAX INCREMENT FINANCING
The City has created a Tax Increment Financing District known as the "Canton 2 -
Rt.9/Chestnut Street TIF District"which includes the Developer's Property. The City has approved
certain Redevelopment Project Costs, including the types described in Exhibit "1" for the
Developer's Project.
C. INCENTIVES
In consideration for the Developer purchasing the Property and completing the Project as set
forth herein, the City agrees to extend to the Developer the following incentives to assist the
Developer's Project:
1. The City shall reimburse the Developer Fifty Percent(50%) of the annual"net"incremental
increase in real estate tax revenues derived from the Developer's Project for reimbursement
of the Developer's Estimated TIF Eligible Project Costs as set forth in Exhibit "1"a1tached
hereto. Such reimbursement shall commence with tax year 2022 payable 2023 real estate tax
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increment generated by the Project and shall continue only for the current remaining life of
the TIF District(tax year 2035 payable 2036),or upon the Developer's receipt of the maximum
reimbursement amount of One Hundred Sixty Thousand Five Hundred Dollars and
00/100 Dollars ($160,500.00) as set forth in Exhibit "l"attached hereto,whichever occurs
first.These funds are to be allocated to and when collected shall be paid to the City treasurer
for deposit in a separate account within the Special Tax Allocation Fund for the Canton TIF
District 2 designated as the Newburn 331 WLocustApartment SpecialAccount("Special
Account").
a. "Net" real estate tax increment is defined as increases in annual real estate tax
increment derived from the Developer's Project after payment of the proportionate
amount of administrative fees and costs incurred by the City and payments pursuant
to TIF District Intergovernmental Agreements,if any. The Developer's proportionate
amount is calculated by dividing the increment generated by the Developer's Project
by the total TIF District increment.
D. LIMITATION OF INCENTIVES TO DEVELOPER
1. The Developer shall be reimbursed by the City for all Eligible Project Costs permitted by the
Act (subject to a limitation of$160,500.00) from the real estate tax increment generated by
this Project located on the Property and deposited into the Special Account, but only for the
term of the Agreement and only from the Property included in this Project and currently
owned by the Developer at that location. The parties may add additional phases and eligible
project in excess of the amount authorized by this Agreement upon mutual agreement.
2. It is not contemplated nor is the City obligated to use any of its proportionate share of the
monies for any of the Developer's Eligible Project Costs but,rather,the City shall use its sums
for any purpose under the Act as it may in its sole discretion determine.
3. The Developer agrees to substantially complete the project, subject to Force Majeure, as
defined below.
E. PAYMENT OF ELIGIBLE PROJECT COSTS
1. Payment to the Developer for TIF Eligible Project Costs as set forth by the Act,shall be made
by a Requisition for Payment of Private Development Redevelopment Costs (Exhibit "2';
"Requisition") submitted from time to time by the Developer to the City's TIF Administrator
Jacob &Klein,Ltd.,with copy to The Economic Development Group,Ltd. (collectively, the
"Administrator"), and subject to the Administrator's approval of the costs and to the
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.
3. For the Developer to receive reimbursement of Eligible Project Costs for costs it has
incurred in any year as set forth in Paragraphs "P"and "2"above,the Developer must
submit such proposed eligible costs to the City by March 1 of the following year. If
there are no accumulated outstanding costs previously submitted and approved by the City
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and if the Developer does not submit such proposed eligible costs by this deadline, the
Developer will forfeit reimbursement of such costs from the prior year's real estate tax
increment to be paid in the current year. Any approved eligible costs submitted after this
deadline will be eligible for reimbursement from the next year's real estate increment receipts.
4. Any real estate increment not required to be paid to the Developer under the terms of
Paragraph 'U"above shall be available to the City for any purpose set forth in the TIF Plan
and allowed by the Act.
5. The Developer shall use such sums as reimbursement for Eligible Project Costs only to the
extent permitted by law and the Act and may allocate such funds for any purpose for the terms
of this Agreement or the term of the TIF District whichever is longer.
6. 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.
7. 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. The City shall pay such approved eligible
Costs annually, provided the Developer has satisfied the terms of this Agreement and costs
which exceed the amount available to pay the Developer shall carry forward, until paid,
without further action of the Developer. Payment shall be made within forty-five (45) days
after approval subject to the terms if this Agreement and after receipt of the increment
generated by the Developer's Redevelopment Project from the County.
8. 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 assist the Developer in every respect as to obtaining approval of Eligible Project Costs.
F. VERIFICATION OF TAX INCREMENT
1. It shall be the sole responsibility of the Developer or its designee to provide to the City, as
requested in writing, copies of all PAID real estate tax bills,annually, for the Property.
2. The failure of Developer to provide any information required herein after written notice from
the City, and the continued failure to provide such information within (30) days after such
notice, shall be considered a 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.
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G. REIMBURSEMENT OF THE DEVELOPER'S SHARE
OF TAX OBJECTION REFUNDS
If a refund of tax increment (including any accrued statutory interest thereon) is potentially
due from the City's TIF Fund as the result of any tax objection,assessment challenge or formal appeal
to the Illinois Property Tax Appeal Board ("PTAB"),issuance of a certificate of error or other such
action, including any appeals therefrom, concerning the potential reduction of assessed value of the
Property,the City may at its sole discretion withhold the Developer's share of any such possible refund
(including any accrued statutory interest thereon) from future reimbursements calculated to be paid
to the Developer under this Agreement. Furthermore, the Developer is hereby obligated to provide
written notice to the City within five (5) days of filing any such objection, assessment challenge or
formal appeal to the PTAB or other such action, including any appeals therefrom, that could
potentially reduce the assessed value of the Property. Failure to provide such notice shall be
considered a breach of this Agreement and shall be cause for the City to deny payments hereunder to
the Developer.
Any funds withheld by the City under this Section "G"shall be deposited by it into a separate
interest-bearing bank account. Upon final determination of the assessed value of the Property, the
City shall pay to the Developer the principal amount due under this Agreement as recalculated. The
City shall be entitled to retain any interest earned on the account as partial payment for the
administration of the account due to the delay of the determination of the final evaluation and
recalculation of the benefits due the Developer under this Agreement.
If it appears to the City that it will be unable to recover the Developer's share of any such
refund (including any accrued statutory interest thereon) from the remaining future reimbursements
due the Developer under this Agreement, the Developer shall reimburse the City for the Developer's
remaining unpaid share of such refund within thirty (30) days upon receiving written demand of the
same from the City.
Notwithstanding anything contained in this Agreement to the contrary, the obligations
contained in this Section "G"shall remain in effect for the remaining life of the TIF District,whether
the TIF District expires upon the current expiration of the Redevelopment Plan and Projects adopted
by the City(tax year 2035 payable 2036);at an earlier time if the City passes an ordinance terminating
the TIF District; or at a later time if the TIF District is legislatively extended. Furthermore, the
obligations set forth in this Section "G"shall survive the expiration of the TIF District if a tax
objection or other such action taken by the Developer is pending prior to the expiration of the TIF
District and shall continue until final disposition of such action.
H. 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 Special Account. 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 any City fund or require the City to utilize its taxing authority to fulfill the terms of this
Agreement.
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I. CITY PUBLIC PROJECTS
The City intends to use part or all of its share of the Project's real estate increment for other
public projects within the TIF District or within contiguous TIF Districts as allowed by law.The City
shall be eligible for reimbursement of the cost of doing so, as well as other eligible costs incurred by
the City in the TIF District.
J. 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
Developer's Project.
K. COOPERATION OF THE PARTIES
1. The City and the Developer agree to cooperate fully with each other when requested to do so
concerning the development of the Developer's Redevelopment Project. This includes
without limitation the City assisting or sponsoring the Developer, or agreeing to jointly apply
with the Developer, for any grant,award,subsidy or additional funding which may be available
from other governmental sources 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 the Developer's activities.
2. The Parties agree to take such actions,including the execution and delivery of such documents,
instruments, petitions, and certifications (and, in the City's case, the adoption of such
ordinances and resolutions), as may be necessary or appropriate, from time to time, to carry
out the terms, provisions, and intent of this Agreement and to aid and assist each other in
carrying out said terms,provisions, and intent.
3. The Parties shall cooperate fully with each other in seeking from any or all appropriate
governmental bodies all approvals (whether federal, state, county or local) required or useful
for the construction or improvement of property and facilities in and on the Property or for
the provision of services to the Property, including, without limitation, wetland mitigation,
gas, telephone, and electric utility services, roads, highways, rights-of-way,water and sanitary
sewage facilities, and storm water disposal facilities.
L. DEFAULT; CURE; REMEDIES
In the event of a default under this Redevelopment 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"), may have an action for damages, or, in the event damages
would not fairly compensate the Non-defaulting Parties for the Defaulting Party's breach of this
Redevelopment 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.
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In the event a Defaulting Party shall fail to perform a monetary covenant which it is required
to perform under this Redevelopment Agreement, it shall not be deemed to be in default under this
Redevelopment 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 nonmonetary covenant
as and when it is required to under this Redevelopment 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
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.
M. TIME; FORCE MAJEURE
For this Agreement, time is of the essence. The Developer agrees to complete this Project
within twelve (12) months following the date of execution of this Agreement. Failure to do so shall
be cause for the City to declare the Developer in default and unilaterally terminate this 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.
N. ASSIGNMENT
The rights (including, but not limited to, the right to payments contemplated by Section "C"
of this Agreement) and obligations (or either of them) of the Developer under this Agreement shall
be fully assignable by the Developer provided written notice is provided to the City and the City's
consent is obtained prior to such assignment. The City's consent shall not be unreasonably withheld
provided that the nature of the Project is riot substantially changed, and further 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 City under this Agreement unless the
consent of the City to the release of the assignor's obligations is first obtained.
O. PREPAYMENTS
Should the annual incremental tax revenue generated by the Project be sufficient to pay all
cost eligible expenses prior to the expiration of the term of the Agreement, the City may, in its sole
discretion, elect to pay all then remaining payments in a single lump sum payment.
P. 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
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deemed to constitute a waiver of other rights and remedies provided said party pursuant to this
Agreement.
Q. SEVERABILITY
If any section, subsection, term or provision of this Agreement or the application thereof to
any party or circumstance shall, to any extent, be invalid or unenforceable, the remainder of said
section, subsection, term or provision of this Agreement or the application of same to parties or
circumstances other than those to which it is held invalid or unenforceable, shall not be affected
thereby.
R. 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(i) the date of actual delivery,if delivered
personally,or(ii) as of the third(3`d) day from and including the date of posting,if mailed by registered
or certified mail, return receipt requested, with postage prepaid or (iii) the next business day if sent
overnight delivery using a nationally recognized delivery service, addressed as follows:
TO CITY TO DEVELOPER
City of Canton Jon M. and Kimberley A. Newburn
`/o City Clerk 1001 West Maple Street
2 N. Main St. Canton,Illinois 61520
Canton,Illinois 61520 Ph: (309) 224-4488
Ph: (309) 647-0020 Email: kimnewburn95 a,Qmail.com
With Copy to City BDD Administrator. With Copy to:
Jacob &Klein,Ltd. and John J. McCarthy,Attorney at Law
The Economic Development Group,Ltd. 209 E Chestnut St#1
1701 Clearwater Avenue Canton, Illinois 61520
Bloomington, Illinois 61704 Ph: (309) 647-7477
Ph: (309) 664-7777 Email: john e,_johnmccarthylaw.net
S. SUCCESSORS IN INTEREST
Subject to the provisions of Section "N"above, this Agreement shall be binding upon and
inure to the benefit of the Parties hereto and their respective successors and assigns.
T. NO JOINT VENTURE,AGENCY, OR PARTNERSHIP CREATED
Neither anything in this Agreement not 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.
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U. LIMITATIONS OF LIABILITY
As it relates to this Agreement, no recourse under or upon any obligation, covenant or
agreement of this Agreement or for any claim based thereon or otherwise in respect thereof shall be
had against the City, its officers, agents and employees, in excess of any specific sum agreed by the
City to be paid to Developer, hereunder, subject to the terms and conditions herein, and no liability,
right or claim at law or in equity shall attach to or shall be incurred by its officers,agents and employees
in excess of such amounts, and all and any such rights or claims of Developer against the City, its
officers, agents and employees are hereby expressly waived and released as a condition of and as
consideration for the execution of this Agreement by the City.
V. ENTIRE AGREEMENT
The terms and conditions set forth in this Agreement 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.
W. TERM OF THE AGREEMENT
Notwithstanding anything contained herein to the contrary, this Agreement shall expire upon
the first to occur of the current expiration of the TIF District as of tax year 2035 payable 2036, or
upon the Developer receiving all incentives included herein. 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 default by the Developer of this Agreement.
X. ILLINOIS PREVAILING WAGE ACT
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 Sales Tax Reimbursements received by private
developers as reimbursement for private redevelopment project costs. This position of the
Department of Labor is stated as an answer to a FAQ on its website at:
https://,,v-,v-,v2.ilhnois.gov/idol/FAQs/Pages/prevailing-wage-faq.aspx. The Developer shall
indemnify and hold harmless the City, and all City elected or appointed officials, officers, employees,
agents, representatives, engineers, consultants, and attorneys (collectively, the "indemnified Parties"),
from any and all claims that may be asserted against the Indemnified Parties or one or more of them,
in connection with the applicability, determination, and/or payments made under the Illinois
Prevailing Wage Act (820 ILCS 130/0.01 et. seg.), the Illinois Procurement Code, and/or any similar
State or Federal law or regulation. 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. Failure to
comply with any of these requirements may cause all benefits hereunder to be terminated by the City.
Y. OTHER GENERAL PROVISIONS
1. Titles of Paragraphs: Titles of the several parts, paragraphs, sections, or articles of this
Agreement are inserted for convenience of reference only and shall be disregarded in
construing or interpreting any provisions hereof.
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2. Warranty of Signatories: The signatories of Developer warrant full authority to both execute
this Agreement and to bind the entity in which they are signing on behalf of.
3. Counterparts:This Agreement may be executed in counterparts,which when taken together
shall constitute a single signed original as though all Parties had executed the same page.
4. Choice of Law/Venue: This Agreement shall be governed by and construed in accordance
with the laws of the State of Illinois with venue lying in the Circuit Court of Fulton County,
Illinois.
THIS AGREEMENT IS INTENDED TO BE A LEGAL DOCUMENT. AN ATTORNEY AT
LAW SHOULD BE CONSULTED PRIOR TO THE EXECUTION OF THIS DOCUMENT.
IN WITNESS WHEREOF the Parties hereto have caused this Agreement to be executed
by their duly authorized officers on the above date at the City of Canton, Illinois.
CITY DEVELOPER
CITY OF CANTON, ILLINOIS,an Illinois JON;, -
WBURN, ' dividually
Municipal Corporation
BY: /�BY: Newburn
ayor
Date: 1 Date:
ATTE DB KIMBERLEY A.NEWBURN,individually
BY-
City Clerk Kimberley A. burn
Date: /�1a�1`�I Date:
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EXHIBIT 1
SUMMARY OF ESTIMATED TIF ELIGIBLE PROJECT COSTS
Jon M. and Kimberley A. Newburn (331 W. Locust St.) Redevelopment Project
Canton 2-Rt. 9/Chestnut Street TIF District, Canton,Illinois
Location: 331 W.Locust St.,Canton,IL "
PIN: 09-08-27-318-014
Project Description: Removal of one apartment building and rehabilitation and renovation of a second
apartment building located at 331 W.Locust St.
Developer's Estimated TIF Eligible Project Costs:
Site preparation,demolition,clearing,and grading.............................................................................$27,000
Professional planning,site plan,plat&zoning approval,engineering,
project inspections,architectural and legal expenses.......................................................................$2,500
Public infrastructure improvements/utility extensions........................................................................$6,000
Rehabilitation or renovation of existing buildings (excluding new construction)........................$125,000
TOTAL ESTIMATED TIF ELIGIBLE PROJECT COSTS'.......................................$160,500
'NOTE: The total,cumulative reimbursement of new real estate tax increment generated by the Developer's Project for
TIF Eligible Project Costs payable by the City to the Developer shall not exceed $160,500.00, as set forth in this
Redevelopment Agreement. The line items set forth in this Exhibit "1"are not intended to place a total limit on the
described expenditures or intended to preclude payment of other TIF eligible redevelopment project costs in connection
with the Developer's Project,provided the total amount of payment for all eligible redevelopment project costs,public
and private,shall not exceed the total amount set forth herein. Adjustments may be made to the designated and anticipated
line items within the total,either increasing or decreasing verified line-item costs for the Redevelopment Project.
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EXHIBIT 2
PRIVATE PROJECT
REQUEST FOR VERIFICATION OF TIF ELIGIBLE PROJECT COSTS
BY JON M. NEWBURN AND KIMBERLEY A.NEWBURN
Date submitted:
Attention: City of Canton, IL TIF District Administrator
Re: TIF Redevelopment Agreement dated December 21, 2021,by and between the City of Canton
and Jon M. and Kimberley A. Newburn (331 W. Locust St. Project).
The City of Canton is hereby requested to disburse funds from the Special Tax Allocation Fund
pursuant to the above referenced Redevelopment Agreement in the following amount(s) to the
Developer and for the purpose(s) set forth in this Request for Verification of the Developer's TIF
Costs. The terms used herein shall have the same meanings as those terms in the Redevelopment
Agreement.
1. Request No.
2. Reimbursement payable to: Jon M. Newburn and Kimberley A. Newburn
3. Amounts requested to be reimbursed (attach additionalpages, if necessary):
Description of Developer's TIF 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
E'xhihit "1"of the Redevelopment Agreement.
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5. The undersigned hereby certifies and swears under oath that the following statements are true
and correct:
a. the amounts included in (3) above were made or incurred or financed and were
necessary for the Project and were made or incurred in accordance with the City
Codes;and
b. 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 Developer's TIF Costs; and
c. 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
d. 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
e. 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.
f. 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 hereto is a copy of Exhibit "1"of the Redevelopment Agreement, together with
copies of invoices and proof of payment of such invoices,including cancelled checks and/or
any lien waivers (to the extent applicable) relating to all items for which reimbursement is
being requested.
BY: (Developer)
Title:
❑REVIEWED BY CANTON TIF DISTRICT ADMINISTRATOR
BY.
Title: Date:
o APPROVED BY CITY OF CANTON,ILLINOIS
BY:
Title: Date:
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