Loading...
HomeMy WebLinkAboutOrdinance #4327 - Redevelopment Agreement between the City of Canton and Ted Rumler (Happy Shack)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 FEBRUARY, 2023 ADOPTED ORDINANCE NO. 4327, A TRUE AND CORRECT COPY OF WHICH IS CONTAINED IN THIS PAMPHLET. GIVEN UNDER MY HAND AND SEAL THIS 21 ST DAY OF FEBRUARY, 2023. (SEAL) I WALTERS CITY CLERK CITY OF CANTON, ILLINOIS ORDINANCE NO. 4 3 2 7 AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A TIF REDEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF CANTON, FULTON COUNTY, ILLINOIS AND TED RUMLER (D.B.A. HAPPY SHACK) PASSED BY THE CITY COUNCIL OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS, ON THE 21ST DAY OF FEBRUARY, 2023. PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY COUNCIL OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS, THIS 21ST DAY OF FEBRUARY, 2023. EFFECTIVE: FEBRUARY 21, 2023 CITY OF CANTON, ILLINOIS: ORDINANCE NO. 4327 CANTON 2 — RT. 9 / CHESTNUT STREET TAX INCREMENT FINANCING (TIF) DISTRICT & CANTON BUSINESS DEVELOPMENT DISTRICT (BDD) NO.1 AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A REDEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF CANTON AND TED RUMLER (D.B.A. HAPPY SHACK BE IT ORDAINED BY THE CITY OF CANTON, FULTON COUNTY, ILLINOIS THAT: 1. The Redevelopment Agreement with Ted Rumler (Exhibit A attached) is hereby approved. 2. The Mayor is hereby authorized and directed to enter into and execute on behalf of the City said Redevelopment Agreement and the City Clerk of the City of Canton is hereby authorized and directed to attest such execution. 3. The Redevelopment Agreement shall be effective the date of its approval on the 21s` day of February, 2023. 4. This Ordinance shall be in full force and effect from and after its passage and approval as required by law. [the remainder of thispage is intentionally blank] PASSED, APPROVED AND ADOPTED by the Corporate Authorities of the City of Canton, Fulton County, Illinois, on the 21" day of February, 2023, 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 Andra Chamberlin Jeff Fritz Ralph Grimm Greg Gossett Justin Nelson John Lovell Angela Hale Kent A. McDowell, Mayor TOTAL VOTES 8 0 0 APPROVED: W, Date: 2—/ /2023 Mayor, ity of Canton ATTEST: , Date: dZ,-/_?--L/2023 ity Clerk, City of Canton ATTACHMENTS: EXHIBIT A. REDEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF CANTON AND TED RUMMER. TAX INCREMENT FINANCING DISTRICT REDEVELOPMENT AGREEMENT by and between CITY OF CANTON, FULTON COUNTY, ILLINOIS and TED RUMLER (D.B.A. HAPPY SHACK) CANTON 2 — R.T. 9 / CHESTNUT STREET TAX INCREMENT FINANCING (TIF) DISTRICT & CANTON BUSINESS DEVELOPMENT DISTRICT (BDD) NO.1 FEBRUARY 21, 2023 REDEVELOPMENT AGREEMENT by and between CITY OF CANTON and TED RUMLER (D.B.A. HAPPY SHACK) CANTON 2 — RT. 9 / CHESTNUT STREET TIF DISTRICT & CANTON BDD NO. 1 THIS REDEVELOPMENT AGREEMENT (including Exhibits) is entered into this 21St day of February, 2023, by the City of Canton (the "City"), an Illinois Municipal Corporation, Fulton County, Illinois, and Tedd Rumler d.b.a. Happy Shack (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 II.CS 5/8-1-2.5, a municipality may appropriate and expend funds for economic development purposes, including, without limitation, the making of grants 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 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 2 — Rt. 9/Chestnut Street TIF District (hereinafter referred to as the "TIF District"); and WHEREAS, on March 15, 2022, the City approved the Canton Business Development District No. 1 (hereinafter referred to as the `BDD") pursuant to the Business District Development and Redevelopment Act (65 ILCS 5/11-74.3 et seq.) (the `BDD Act"); and WHEREAS, one such property is located at 1805 E. Chestnut Street, Canton, Illinois, (P.I.N. 09- 08-2530 is within the TIF District Redevelopment Project Area and the BDD (the "Property"); and WHEREAS, the Developer has acquired the Property is proceeding with plans to rehabilitate and renovate the commercial building located thereon for operation of Keefer Financial, Inc. to be located therein (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 BDD; and Ted Fwmler dba Happy Shack / Page 1 WHEREAS, the Developer's proposed Project is consistent with the TIF District Redevelopment Plan and Projects for the Redevelopment Project Area and the BDD Plan 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, and the BDD 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 and BDD Eligible Project Costs as herein listed in the attached Exhibit "V of this Redevelopment Agreement; and WHEREAS, the Developer has requested that incentives for the development be provided by the City from incremental increases in real estate taxes of the City generated within the TIF District, and from Business District sales tax revenues generated within the BDD, and the City has agreed to such incentives; and WHEREAS, the City has determined that this Project requires the incentives requested and that said Project will, as a part of the Plan, promote the health, safety and welfare of the City and its citizens by attracting private investment to prevent blight and deterioration and generally to 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 Ten Thousand Dollars and No Cents ($10,000.00) as set forth below from the TIF District Special Tax Allocation Fund and from the BDD Special Tax Allocation Fund for reimbursement of a portion of the Developer's TIF and BDD Eligible Project Costs as described in Exhibit "V 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 encourages 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: Ted Rumler dba Happy Shack / 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 twelve (12) months from the date this Agreement is executed, subject to extension due to Force Majeure (defined below). The Project will be deemed complete when rehabilitation and renovation of the commercial building located on the Property is complete and the Happy Shack ice cream business is open and operating therein. 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 and BDD 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 its 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 for its TIF Eligible Project Costs as set forth in Exhibit "P' attached hereto, and verified pursuant to Section E below, from the City's TIF District Special Tax Allocation Fund an amount not to exceed Five Thousand Dollars and No Cents ($5,000.00), payable upon timely completion of the Project. 2. The City shall further reimburse the Developer for its BDD Eligible Project Costs as set forth in Exhibit "1' attached hereto, and verified pursuant to Section E below, from the City's BDD Special Tax Allocation Fund an amount not to exceed Five Thousand Dollars and No Cents ($5,000.00), payable upon timely completion of the Project. 3. In no event shall the total cumulative reimbursements made by the City to the Developer hereunder exceed Ten Thousand Dollars and No Cents ($10,000.00). 4. In the event the Developer fails to timely complete the Project as set forth herein, absent extension due to Force Majeure as defined below, any reimbursements which remain due to the Developer hereunder shall cease. 5. In the event the Developer sells or otherwise conveys the Property during the term of this Agreement any reimbursements which remain due to Developer hereunder shall cease. Ted llumler dba Happy Shack / Page 3 D. LIMITATION OF INCENTIVES TO DEVELOPER 1. In no event, shall the maximum cumulative reimbursements for the Developer's TIF Eligible Project Costs and BDD Eligible Project Costs pursuant to Section C above exceed Ten Thousand Dollars and No Cents ($10,000.00) as set forth herein. 2. The Developer agrees to timely complete the Project, subject to Force Majeure, as defined below. E. PAYMENT OF ELIGIBLE PROJECT COSTS 1. Payment to the Developer for TIF and BDD Eligible Project Costs as set forth by the Act and the BDD Act shall be made by a Requisition for Payment of Private Development Redevelopment Costs ("Requisition") (attached hereto as Exhibit "2") submitted from time to time to Jacob & Klein, Ltd. and the Economic Development Group, Ltd. (collectively the "Administrator") and subject to their approval of the costs and availability of funds in the Special Account. 2. All Requisitions must be accompanied by verified bills or statements of suppliers, contractors, or professionals together with cancelled checks, mechanic's lien waivers (whether partial or full), or an invoice marked paid 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 I 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 and BDD sales tax revenues 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 and BDD sales tax revenue receipts. 4. Any real estate increment not required to be paid to the Developer under the terms of Paragraph 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, the BDD Act, and the Act and may allocate such funds for any purpose for the term of this Agreement. 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 and BDD Eligible Project Costs approved shall then be paid by the City pursuant to the terms set forth in Section C above. Ted Rumler dba Happy Shack / Page 4 8. The Parties acknowledge that the determination of TIF and BDD Eligible Project Costs, and, therefore, qualification for reimbursement hereunder are subject to changes or interpretation made by amendments to the Act, the BDD Act, administrative rules or judicial interpretation during the term of this Agreement. The City has no obligation to the Developer to attempt to modify those decisions but will reasonably assist the Developer in every respect to obtain approval of Eligible Project Costs. F. VERIFICATION OF TAX INCREMENT 1. It shall be the sole responsibility of the Developer to provide to the City, as requested in writing, copies of all PAID annual real estate tax bills, annually, for the Property. 2. The failure of Developer to provide any information required herein after notice from the City, including verification of Eligible Project Costs, and the continued failure to provide such information within thirty (30) days after such notice shall be considered a material breach of this Agreement and shall be cause for the City to deny payments hereunder to the Developer, which payments are conditional upon receipt of the foregoing information. G. LIMITED OBLIGATION The City's obligation hereunder to pay the Developer for Eligible Project Costs is a limited obligation to be paid solely from the TIF District Special Tax Allocation Fund and the BDD Special Tax Allocation Fund. Said obligation does not now and shall never constitute an indebtedness of the City within the meaning of any State of Illinois constitutional or statutory provision and shall not constitute or give rise to a pecuniary liability of the City or a charge or lien against the City's general credit or taxing power. 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, not shall the City be obligated to make direct payments to any other contractor, subcontractor, mechanic or materialman providing services or materials to the Developer for the Project. This Agreement shall not create any third -party rights and the Developer shall indemnify and hold the City harmless on any claims arising out of the Developer's construction activities. I. COOPERATION OF THE PARTIES The City and the Developer agree to cooperate fully with each other when requested to do so concerning the development of the Developer's Project. This includes without limitation the City assisting or sponsoring the Developer, or agreeing to jointly apply with the Developer, for any grant, award, or subsidy which may be available as the result of the Developer's or City's activities. This also includes without limitation the Developer assisting or sponsoring the City, or agreeing to jointly apply with the City, for any grant, award or subsidy which may be available as the result of the City's or Developer's activities. 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 Ted Bumler dba Happy Shack / Page 5 out the terms, provisions, and intent of this Agreement and to aid and assist each other in carrying out said terms, provisions, and intent. 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, tights -of -way, water and sanitary sewage facilities, and storm water disposal facilities. J. DEFAULT; CURE; REMEDIES In the event of a default under this Agreement by any party hereto (the "Defaulting Party"), which default is not cured within the cure period provided for below, then the other party (the "Non - defaulting Party") shall have an action for damages, or in the event damages would not fairly compensate the Non -defaulting Party's for the Defaulting Party's breach of this Agreement, the Non - defaulting Party shall have such other equity rights and remedies as are available to them at law or in equity. Any damages payable by the City hereunder shall be limited to the real estate tax increment payable to the Developer under the terms of this Agreement. In the event a Defaulting Party shall fail to perform a monetary covenant which it is required to perform under this Agreement, it shall not be deemed to be in default under this Agreement unless it shall have failed to perform such monetary covenant within thirty (30) days of its receipt of a notice from a Non -defaulting Party specifying that it has failed to perform such monetary covenant. In the event a Defaulting Party fails to perform any non -monetary covenant as and when it is required to under this Agreement, it shall not be deemed to be in default if it shall have cured such default within thirty (30) days of its receipt of a notice from a Non -defaulting Party specifying the nature of the default, provided, however, with respect to those non -monetary defaults which are not capable of being cured within such thirty (30) day period, it shall not be deemed to be in default if it commences curing within such thirty (30) days period, and thereafter diligently and continuously prosecutes the cure of such default until the same has been cured. K. TIME; FORCE MAJEURE For this Agreement, time is of the essence. The Developer agrees to complete the Project on or before the date that is twelve (12) months from the date this Agreement is approved by the City. Failure to do so shall be cause for the City to declare the Developer in default and unilaterally terminate the Agreement. However, the Developer and the City shall not be deemed in default with respect to any obligations of this Agreement on its part to be performed if the Developer or City fails to timely perform the same and such failure is due in whole, or in part, to any strike, lock -out, labor trouble (whether legal or illegal), civil disorder, inability to procure materials, weather conditions wet soil conditions, failure or interruptions of power, restrictive governmental laws and regulations, condemnation, riots, insurrections, war, fuel shortages, accidents, casualties, Acts of God, acts caused directly or indirectly by the City (or the City's agents, employees or invitees) when applicable to Developer or third parties, or any other cause beyond the reasonable control of Developer or the City. Ted Bumler dba Happy Shack / Page 6 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. 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 (31d) day from and including the date of posting, if mailed by registered or certified mail, return receipt requested, with postage prepaid addressed as follows: To Developer: To City: Ted Rumler City Clerk, City of Canton dba Happy Shack City Hall 1805 E. Chestnut Street 2 N. Main Street Canton, IL 61520 Canton, Illinois 61520 Telephone: (309) 647-0020 With copy to. Jacob & Klein, Ltd. Economic Development Group, Ltd. 1701 Clearwater Avenue Bloomington, Illinois 61704 Telephone: (309)664-7777 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. Ted Bssmler dba Happy Shack / Page 7 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 and sales tax incentives received by developers as reimbursement for private TIF Eligible Project Costs. This position of the Department of Labor is stated as an answer to a FAQ on its website at: hgps•//www2.Minois.gov/idol/FAQs/Pages/prevailing-wage-faq.aapx. 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 or any challenge to the eligibility of project costs reimbursed to the Developer hereunder. This obligation to indemnify and hold harmless obligates Developer to defend any such claim and/or action, pay any liabilities and/or penalties imposed, and pay all defense costs of City, including but not limited to the reasonable attorney fees of City. 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. 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 on the date the Developer receives all of the incentives 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. Ted Bumler dba Happy Shack /Page 8 IN WITNESS WHEREOF the Patties hereto have caused this Agreement to be executed by their duly authorized officers on the above date at Canton, Illinois. CITY CITY OF CANTON, ILLINOIS, an Illinois Municipal Corporation BY. Mayor, City of Canton ATTEST: City Clerk, City of Canton DEVELOPER TED RUMLER, D.B.A. HAPPY SHACK BY: (� A\,adA- J Ted Rumler Ted Rumler dba Happy Shack /Page 9 EXHIBIT 1 SUMMARY OF ESTIMATED TIF & BDD ELIGIBLE PROTECT COSTS Ted Rumler dba Happy Shack Canton 2 — Rt. 9/Chestnut St. TIF District & Canton BDD No. 1 City of Canton, Fulton County, Illinois Project Description: Developer has acquired the Property and is proceeding with plans to renovate and rehabilitate the commercial building located thereon for operation the Happy Shack ice cream shop to be located therein. Location: 1805 E. Chestnut Street, Canton, Illinois Parcel Number: 09-08-25-304-035 EstimatedT IF and BDD Eligible Project Costs: Land and Building Acquisition............................................................................................. $200,000 Rehabilitation and Renovation................................................................................................ $25,000 Total EstimatedT IF and BDD Eligible Project Costs' ........................................................ $225,000 'The City's reimbursement of TIF & BDD Eligible Project Costs shall not exceed 10 0 0 as set forth in this Redevelopment Agreement. Ted Bumler dba Happy Shack / Page 10