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HomeMy WebLinkAboutOrdinance #4276 - Redevelopment Agreement between the City of Canton and Midwest Cedar & Timber 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 15TH DAY OF FEBRUARY, 2022 ADOPTED ORDINANCE NO. 4276, A TRUE AND CORRECT COPY OF WHICH IS CONTAINED IN THIS PAMPHLET. GIVEN UNDER MY HAND AND SEAL THIS 15TH DAY OF FEBRUARY, 2022. (SEAL) Pt, DIA A PAV -R e K CITY CLERK CITY OF CANTON, ILLINOIS ORDINANCE NO. 4276 AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A TIF REDEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF CANTON,FULTON COUNTY,ILLINOIS AND MIDWEST CEDAR& TIMBER,LLC PASSED BY THE CITY COUNCIL OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS, ON THE 15TH DAY OF FEBRUARY, 2022. PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY COUNCIL OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS, THIS 15TH DAY OF FEBRUARY, 2022. EFFECTIVE: FEBRUARY 15, 2022 CITY OF CANTON,ILLINOIS: ORDINANCE NO. 4276 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 MIDWEST CEDAR&TIMBER, LLC BE IT ORDAINED BY THE CITY OF CANTON,FULTON COUNTY,ILLINOIS THAT: 1. The Redevelopment Agreement with Midwest Cedar&Timber,LLC (ExhibitA 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 15th day of February,2022. 4. This Ordinance shall be in full force and effect from and after its passage and approval as required by law. [the remainder of this page is intentionally blank] PASSED, APPROVED AND ADOPTED by the Corporate Authorities of the City of Canton, Fulton County,Illinois,on the 15`''day of February,2022,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 Alderperson Gossett X Alderperson I.ingenfelter X Alderperson Fritz X Alderperson Hale X Aldeperson West X Alderperson Lovell X Alderperson Nelson X Alderperson Chamberlin X Kent A.McDowell,Mayor TOTAL VOTES 5 0 3 APPROVED: LL4'4. W536170), ate: a/ I /2022 Ma or, City of Canton ATTEST: J=�� ,Date: /16/2022 City Clerk,City of Canton ATTACHMENTS: EXHIBIT A.REDEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF CANTON AND MIDWEST CEDAR&TIMBER,LLC. 1-1:\CAIN I'ON\CA;\"1 ON I-DT 3771 A I?i T1 F\AGmeweaf\J9idv r.0 Cedar&Timber\Crndoi,77F 1_Midwest Cedar RDA Onlinanr jbr I i Feb 2022 City CwmdLny d TAX INCREMENT FINANCING DISTRICT REDEVELOPMENT AGREEMENT by and between CITY OF CANTON, FULTON COUNTY, ILLINOIS and MIDWEST CEDAR &TIMBER, LLC CANTON 1 - DOWNTOWN / 5TH AVENUE TAX INCREMENT FINANCING DISTRICT FEBRUARY 15,2022 REDEVELOPMENT AGREEMENT by and between CITY OF CANTON and MIDWEST CEDAR&TIMBER, LLC CANTON 1-DOWNTOWN / 5TH AVENUE TIF DISTRICT THIS REDEVELOPMENT AGREEMENT (including Exhibits) is entered into this 15th day of February, 2022, by and between the City of Canton (the "City"), an Illinois Municipal Corporation, Fulton Counties,Illinois,and Midwest Cedar&Timber,LLC,an Illinois Limited Liability Company(the "Developer"). PREAMBLE WHEREAS, the City has the authority to promote the health, safety and welfare of the City and its citizens,and to prevent the spread of blight and deterioration and inadequate public facilities,including sanitary sewer,by promoting the development of private investment in the marketability of 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 et seq., as amended (the "Act"), the City has the authority to provide incentives to owners or prospective owners of real property to redevelop,rehabilitate and/or upgrade such property by reimbursing the owner for certain costs from resulting increases in real estate tax revenues ("real estate tax increment") or from other City revenues;and WHEREAS, on July 6, 2004, recognizing the need to foster the development, expansion and revitalization of certain properties which are vacant,underutilized or obsolete or a combination thereof; the City approved a Tax Increment Financing Redevelopment Plan and Projects, designated a Redevelopment Area and adopted Tax Increment Financing as provided under the Act for the Canton International Harvester Site Project Area TIF District (currently known as the "Canton TIF 1 - Downtown/ 5th Avenue TIF District) (hereinafter referred to as the"TIF District");and WHEREAS,one such property is located at 406 S.5th Avenue,Canton,Illinois (P.I.N.09-08-35-109- 001) and is within the TIF District Redevelopment Project Area (the"Property");and WHEREAS, the Developer has plans to acquire the Property and rehabilitate the building located thereon for operation of a lumber processing company (the"Project"),and is doing so based on the availability of TIF incentives offered by the City;and WHEREAS,the Developer acknowledges that Justin Hitchcock and Kevin Rose may also incur TIF Eligible Project Costs with respect to the Project located on the Property. As signatories to this Agreement,the Developer,Justin Hitchcock,and Kevin Rose agree that any TIF Eligible Project Costs to be reimbursed hereunder(whether incurred by the Developer,Justin Hitchcock,or Kevin Rose),shall be reimbursed to the Developer,Midwest Cedar&Timber,LLC;and Midwest Cedar&Timber,LLC Redevelopment Agreement Page 1 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 Tax Increment Financing District; and WHEREAS,the Developer's proposed Project is consistent with the TIF District Redevelopment Plan and Projects for the Redevelopment Project Area and further conforms 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 5/11-74.4-4(j) 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 within the TIF District 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 an amount not to exceed Fifteen Thousand Dollars and No Cents ($15,000.00) as set forth below from the TIF District Special Tax Allocation Fund for reimbursement of a portion of the Developer's TIF Eligible Project Costs as described in Exhibit "1"attached hereto;and WHEREAS,in consideration of the execution of this Agreement, the Developer is completing the Project as set forth in Exhibit "1';and 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: Midwest Cedar&Timber,LLC Redevelopment Agreement Page 2 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 complete the Project within six (6) 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 rehabilitation of the building located on the property is complete and the business located therein is operating. 4. 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 the 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 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. Upon completion of the Project pursuant to Section A(3) above, and verification of the Developer's TIF Eligible Project Costs pursuant to Section E below,the City shall reimburse the Developer for its TIF Eligible Project Costs as set forth in Exhibit"1"attached hereto from the City's TIF District Special Tax Allocation Fund an amount not to exceed Ten Thousand Dollars and No Cents ($10,000.00). 2. On the one-year anniversary of the date the City provides the reimbursement set forth in Section C(1)above,the City shall further reimburse the Developer an additional Five Thousand Dollars and No Cents ($5,000.00) for the Developer's remaining TIF Eligible Project Costs which have been verified pursuant to Section E below. 3. The Developer acknowledges that Justin Hitchcock and Kevin Rose may also incur TIF Eligible Project Costs with respect to the Project located on the Property, and that such costs may be reimbursed under this Agreement,provided such costs are verified pursuant to Section E below. As signatories to this Agreement, the Developer,Justin Hitchcock,and Kevin Rose agree that any TIF Eligible Project Costs to be reimbursed hereunder(whether incurred by the Developer, Justin Hitchcock, or Kevin Rose), shall be reimbursed to the Developer, Midwest Cedar & Timber,LLC. 4. In no event shall the total cumulative reimbursements made by the City to the Developer hereunder exceed Fifteen Thousand Dollars and No Cents ($15,000.00). Midwest Cedar&Timber,LLC Redevelopment Agreement Page 3 5. In the event the Developer fails to timely complete the Project as set forth herein, absent extensions due to Force Majeure as defined below,any reimbursements which remain due to the Developer hereunder shall cease and the Developer shall return any reimbursements received by it hereunder within thirty(30) days upon receiving written notice of the same from the City. 6. In the event the Developer sells or otherwise conveys the Property during the term of this Agreement any reimbursements which remain due the Developer hereunder shall cease. 7. Once the Project is complete, in the event: (1) the lumber processing business located on the Property ceases business operations, (2) the Developer files for bankruptcy,or(3) the Property is the subject of a foreclosure proceeding, the Developer shall not be entitled to any further reimbursements hereunder. 8. In the event the Developer files any challenge, appeal,or other similar action which seeks to reduce the equalized assessed value of the Property during the Term of this Agreement, and reimbursements which remain due the Developer hereunder shall cease. 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 above exceed Fifteen Thousand Dollars and No Cents ($15,000.00) as set forth herein. 2. 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 TIF District Special Tax Allocation Fund. 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. In order for the Developer to receive reimbursement of Eligible Project Costs for costs it has incurred in any year as set forth in Paragraphs 1 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 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 Midwest Cedar&Timber,LLC Redevelopment Agreement Page 4 3 above shall be available to the City for any purpose set forth in the Plan pursuant to 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 term 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 TIF District Special Tax Allocation Fund to the Developer, or to others as directed by the Developer, pursuant to the Redevelopment Plan and as allowed by Illinois Law. 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 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 any City fund or require the City to utilize its taxing authority to fulfill the terms of this Agreement. H. 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, Midwest Cedar&Timber,LLC Redevelopment Agreement Page 5 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. I. 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. J. 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"), shall 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. 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. Midwest Cedar&Timber,LLC Redevelopment Agreement Page 6 K. TIME; FORCE MAJEURE For this Agreement, time is of the essence. The Developer agrees to complete the Project within six (6) 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. L. 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 not be assignable unless by written authorization of the City. M. WAIVER Any party to this Agreement may elect to waive any remedy it may enjoy hereunder,provided that no such waiver shall be deemed to exist unless the party waiving such right of remedy does so in writing. No such waiver shall obligate such party to waive any right of remedy hereunder, or shall be deemed to constitute a waiver of other rights and remedies provided said party pursuant to this Agreement. N. SEVERABILITY If any section,subsection,term or provision of this Agreement or the application thereof to any party or circumstance shall, to any extent, be invalid or unenforceable, the remainder of said section, subsection,term or provision of this Agreement or the application of same to parties or circumstances other than those to which it is held invalid or unenforceable,shall not be affected thereby. O. NOTICES All notices,demands,requests,consents,approvals or other instruments required or permitted by this Agreement shall be in writing and shall be executed by the party or an officer,agent or attorney of the party, and shall be deemed to have been effective as of the date of actual delivery, if delivered personally, or as of the third (3rd) day from and including the date of posting,if mailed by registered or certified mail,return receipt requested,with postage prepaid addressed as follows: Midwest Cedar&Timber,LLC Redevelopment Agreement Page 7 TO CITY: TO DEVELOPER: City Clerk,City of Canton Midwest Cedar&Timber,LLC 2 N.Main Street c/o Justin Hitchcock,Owner Canton,IL 61520 421 N.2"d Ave. Telephone: (309) 647-0020 Canton,IL 61520 With Copy to: Jacob&Klein,Ltd. The Economic Development Group,Ltd. 1701 Clearwater Avenue Bloomington,IL 61704 Telephone: (309) 664-7777 Fax: (309) 664-7878 P. SUCCESSORS IN INTEREST Subject to the provisions of Section L, above, this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Q. NO JOINT VENTURE,AGENCY, OR PARTNERSHIP CREATED Neither anything in this Agreement nor any acts of the parties to this Agreement shall be construed by the parties or any third person to create the relationship of a partnership, agency, or joint venture between or among such parties. R. INDEMNIFICATION OF City It is the understanding of the Parties that the position of the Illinois Department of Labor is that the Illinois Prevailing Wage Act does not apply to TIF increment received by private developers as reimbursement for private TIF Eligible Project Costs. This position of the Illinois Department of Labor is stated as an answer to a FAQ on its website at: http://www.illinois.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. 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. 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. S. ENTIRE AGREEMENT The terms and conditions set forth in this Agreement and exhibits attached hereto supersede all prior oral and written understandings and constitute the entire agreement between the City and the Developer with respect to the subject matter hereof. Midwest Cedar&Timber,LLC Redevelopment Agreement Page 8 T. 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. U. 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. - V. TERM OF THE AGREEMENT Notwithstanding anything contained herein to the contrary, this Agreement shall expire upon the Developer receiving all of the reimbursements as set forth 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. 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 DEVELOPER CANTON,ILLINOIS, MIDWEST CEDAR&TIMBER,LLC, an a Municipal Corporation. Illinois Limited Liability Company BY: BY: 2d3dafLit) Mayor, City of Canton NAME: v511,‘ die_Lde., ATT' T: TITLE: ekil.1-A)E•it 4 AND City Cler ,City of Canton JUS HITCHCOCK AND KEVIN ROSE /4L: 4itL 1-1:\CAtN'TON\C-IN7.ONN 1-DT 571-1 Al 7 771•\A nemenlA:Ilidwe.d(.(lar&Tinrher\Can/ui 7W 1_:llid»e,1 Cedar RDA_25/annarp 2022.inpd Midwest Cedar&Timber, LLC Redevelopment Agreement Page 9 EXHIBIT 1 SUMMARY OF ESTIMATED TIF ELIGIBLE PROJECT COSTS Midwest Cedar&Timber, LLC Canton TIF District 1 in the City of Canton,Fulton Counties,Illinois Project Description: The Developer plans to acquire the Property and rehabilitate the building located thereon for operation of a lumber processing facility. Location: 406 S. 5th Street,Canton, IL Parcel Number: 09-08-35-109-001 Estimated TIF Eligible Project Costs: Land and Building Acquisition $215,000.00 Rehabilitation or Renovation $50,000.00 Total EstimatedTIF Eligible Project Costs $265,000.00 *The City's reimbursement of TIF Eligible Project Costs to the Developer shall not exceed$15,000.00 as set forth in this Redevelopment Agreement. Midwest Cedar dr Timber,LLC Redevelopment Agreement Page 10 EXHIBIT 2 CITY OF CANTON,ILLINOIS CANTON 1-DOWNTOWN / 5TH AVENUE TIF DISTRICT PRIVATE PROJECT REQUEST FOR REIMBURSEMENT BY MIDWEST CEDAR&TIMBER, LLC Date Attention: City TIF Administrator, City of Canton,Illinois Re: TIF Redevelopment Agreement, dated February 15,2022 by and between the City of Canton, Illinois, and Midwest Cedar & Timber, LLC (the "Developer") The City of Canton is hereby requested to disburse funds from the Special Tax Allocation Fund pursuant to the Redevelopment Agreement described above in the following amount(s), to the Developer and for the purpose(s) set forth in this Request for Reimbursement. The terms used in this Request for Reimbursement shall have the meanings given to those terms in the Redevelopment Agreement. 1. REQUEST FOR REIMBURSEMENT NO. 2. PAYMENT DUE TO:Midwest Cedar&Timber,LLC 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 "1" of the Redevelopment Agreement. Midwest Cedar&Timber,LLC Redevelopment Agreement Page 11 5. The undersigned certifies that: (I) the amounts included in(3) above were made or incurred or financed and were necessary for the Project and were made or incurred in accordance with the construction contracts,plans and specifications heretofore in effect;and (ii) the amounts paid or to be paid,as set forth in this Request for Reimbursement,represent a part of the funds due and payable for TIF Eligible Redevelopment Project Costs;and (iii) the expenditures for which amounts are requested represent proper Redevelopment Project Costs as identified in the"Limitation of Incentives to Developer"described in 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 and are set forth with invoices attached for all sums for which reimbursement is requested,and proof of payment of the invoices;and (iv) the amounts requested 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. 6. Attached to this Request for Reimbursement is Exhibit "1' 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: DA 1'E: Midwest Cedar&Timber,LLC Redevelopment Agreement Page 12