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HomeMy WebLinkAboutOrdinance #4354 - Redevelopment Agreement between The City of Canton and Order of the Elks 626, BPOE (61 W. Elm Street) a 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 3RD DAY OF JULY, 2023 ADOPTED ORDINANCE NO. 4354, A TRUE AND CORRECT COPY OF WHICH IS CONTAINED IN THIS PAMPHLET. GIVEN UNDER MY HAND AND SEAL THIS 3RD DAY OF JULY,2023. (SEAT.) NREA J. ALTERS-SMITH CDITY CLERK CITY OF CANTON, ILLINOIS ORDINANCE NO. 4 3 5 4 AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A REDEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF CANTON,FULTON COUNTY,ILLINOIS AND ORDER OF THE ELKS 626,BPOE (61 W. ELM STREET) PASSED BY THE CITY COUNCIL OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS, ON THE 3p-D DAY OF JULY,2023. PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY COUNCIL OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS, THIS 3RD DAY OF JULY,2023. EFFECTIVE:JULY 3,2023 2 ORDINANCE NO. 4354 CITY OF CANTON,ILLINOIS AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A BUSINESS DEVELOPMENT DISTRICT NO. 1 REDEVELOPMENT AGREEMENT by and between THE CITY OF CANTON and ORDER OF THE ELKS 626,BPOE (61 W. ELM STREET) WHEREAS, the Mayor and City Council of the City of Canton, Fulton County, Illinois (the "City"), have hereby determined that the Canton, Illinois Business Development District No. 1 Redevelopment Agreement by and between the City of Canton and Order of the Elks 626, BPOE (the"Developer")attached hereto as Exhibit`%"is in the best interest of the citizens of the City of Canton. NOW THEREFORE,be it ordained by the Mayor and City Council of the City of Canton, Illinois,in the County of Fulton,as follows: 1. The City of Canton, Illinois Business Development District No. 1 (the `Business District") Redevelopment Agreement attached hereto as Exhibit 'A"is hereby approved. 2. The Mayor is hereby authorized and directed to enter into and execute on behalf of the City said Business District Redevelopment Agreement and the City Clerk of the City of Canton is hereby authorized and directed to attest such execution. 3. The Mayor is hereby further authorized to approve a single forty-five (45) day extension of the Developer's obligation to complete the Project and verify eligible expenses if such extension is requested by the Developer in writing on or before April 30,2024. 4. The Business District Redevelopment Agreement shall be effective the date of its approval on the 3`d day of July 2023. 5. This Ordinance shall be in full force and effect from and after its passage and approval as required by law. (Fhe remainder of thispage is intentionally left blank.) 3 PASSED APPROVED AND ADOPTED by the Mayor and City Council of the City of Canton this 3'day of July, 2023. MAYOR&ALDERMEN AYE VOTE NAY VOTE ABSTAIN/ABSENT Angie Lingenfelter Andra Chamberlin Patrick Ketcham Ralph Grimm Greg Gossett Justin Nelson John Lovell Angela Hale Kent A.McDowell,Mayor TOTAL VOTES 8 APPROVED: Date / c>/2023 M yor,City of Canton ATTEST: Date: 0 7 / 0-3 /2023 �ity Clerk, City of Canton ATTACHMENTS: 1. EXHIBIT A. City of Canton,Illinois Business Development District No. 1 Redevelopment Agreement by and between the City of Canton and Order of the Elks 626,BPOE. 4 EXHIBIT A CITY OF CANTON, ILLINOIS BUSINESS DEVELOPEMNT DISTRICT NO. 1 REDEVELOPMENT AGREEMENT by and between THE CITY OF CANTON and ORDER OF THE ELKS 626,BPOE (61 W. ELM STREET) 5 CITY OF CANTON, ILLINOIS BUSINESS DEVELOPMENT DISTRICT NO. 1 REDEVELOPMENT AGREEMENT by and between CITY OF CANTON, ILLINOIS and ORDER OF THE ELKS 626, BPOE (61 W. ELM STREET) JULY 3, 2023 CITY OF CANTON, ILLINOIS BUSINESS DEVELOPMENT DISTRICT NO. 1 REDEVELOPMENT AGREEMENT by and between CITY OF CANTON, ILLINOIS and ORDER OF THE ELKS 626, BPOE (61 W. ELM STREET) THIS AGREEMENT (including Exhibits, hereinafter referred to as the "Agreement") is entered into this 3td day of July, 2023, by the City of Canton (the "City"), an Illinois Municipal Corporation, Fulton County, Illinois, and Order of the Elks 626, BPOE, a 501 C-8 not-for-profit organization (the "Developer" or the"Parties"). PREAMBLE WHEREAS, the City has the authority to promote the health, safety, and welfare of the City and its citizens and to encourage development, job creation, and/or the full utilization of real estate; and WHEREAS,pursuant to the Illinois Business District Development and Redevelopment Act (65 ILCS 5/11-74.3-1 et seq.), as amended (the "Act"), the City established the Canton Business Development District No. 1 (the "Business District" or "BDD") on March 15, 2022, by approving Ordinance No. 4281;and WHEREAS,on September 30,2022,the City approved the First Amendment to the Business District by approving Ordinance No. 4307 and further ratified the First Amendment on October 5, 2022 by approving Ordinance No. 4315;and WHEREAS, pursuant to Illinois Statute 65 ILCS 5/8-1-2.5, the City has the authority to appropriate and expend funds for economic development purposes;and WHEREAS,pursuant to the Act, the City has the authority to incur eligible business district project costs and may enter into agreements with developers to reimburse them for their eligible business district project costs; and WHEREAS,the Developer owns property located within the Business District at 61 W.Elm Street (PIN 09-08-27-412-014 and PIN 09-08-27-412-015), which is hereinafter referred to as the "Property;" and based in part on incentives made available by the City, the Developer shall proceed with plans to repair and renovate the asphalt parking lot located thereon at a total estimated cost of $69,800 for the continued commercial operation of the Canton Elks Lodge #626 - Benevolent and Protective Order of Elks (the "Project"); and WHEREAS, the Developer's proposed Project is consistent with the land uses of the City and the Business District Plan as adopted; and WHEREAS, as an incentive to undertake the Project, the Developer has requested reimbursement for a portion of its BDD eligible project costs as described in Exhibit "1"attached hereto and as further evidenced by the Developer's Application for Reimbursement of Private BDD Eligible 2 Redevelopment Pr jed Costs attached hereto as Exhibit "2;"and WHEREAS, the City has determined that this Project requires the incentives requested and that said Project will promote the health, safety and welfare of the City and its citizens by attracting private investment to redevelop under-utilized property, to provide employment for its citizens, and generally to enhance the local economy;and WHEREAS,in consideration of the execution of this Agreement and in reliance thereon,the Developer is prepared to redevelop said property; and WHEREAS, the City is entering into this Agreement to induce the Developer to complete the Project located on the Property. AGREEMENTS NOW, THEREFORE, for good and valuable consideration, the receipt of which is acknowledged,the Parties agree as follows: A. PRELIMINARY STATEMENTS 1. The Parties agree that the matters set forth in the recitals above are true and correct and form a part of this Agreement and are to be construed as binding statements of this Agreement. 2. Any terms which are not defined in this Agreement shall have the same meaning as they do in the Act, unless indicated to the contrary. 3. The Developer agrees to complete the Project and verify eligible project costs as required in Section "E"below on or before April 30, 2024, subject to exception of Force Majeure as described in Section "I"below. 4. For the purpose of this Agreement, the Developer's Project will be deemed to be complete when the improvements described in Exhibit "1"are completed in compliance with all applicable ordinances and building codes of the City, and the eligible project costs have been verified by the Developer pursuant to Section "E"below. 5. Each of the Parties represents that it has taken all actions necessary to authorize its representatives to execute this Agreement. B. INCENTIVES In consideration for the Developer completing its Project, the City agrees to extend to the Developer the following incentives to assist the Developer's Project: 1. Upon the timely completion of the Project and verification of Business District eligible project costs incurred in furtherance of the Project by the Developer pursuant to Section "E"below, the City shall reimburse the Developer a single,lump-sum amount not to exceed Twenty Five Percent(25%) of the verified eligible project costs incurred for the Project, not to exceed Seventeen Thousand Five Hundred and 00/100 Dollars ($17,500.00),whichever is less, as may be payable from the Canton BDD Special Tax Allocation Fund pursuant to the Act. 3 C. LIMITATION OF INCENTIVES TO DEVELOPER 1. The Developer shall be reimbursed by the City, subject to the limitations of Section `B" above, from the Business District Tax Allocation Fund, but only up to an amount not to exceed $17,500.00. D. OBLIGATIONS AND RESPONSIBILITIES OF DEVELOPER 1. The Developer shall timely complete the Project located on the Property. Failure of the Developer to timely complete such the Project as set forth herein will result in the denial of the reimbursements to be otherwise made hereunder. 2. The failure of the Developer to provide any information reasonably required herein after notice from the City,and the continued failure to provide such information within 30 days to the City 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 forgoing information. 3. The Developer agrees to execute any and all documents necessary to effectuate the provisions of this Agreement. E. PAYMENT OF ELIGIBLE PROJECT COSTS 1. To receive the incentives set forth in Section `B" above, the Developer must submit documentation evidencing all Business District Eligible Project Costs incurred by it with respect to the Project on or before April 30, 2024. Satisfactory evidence•of such costs shall include verified bills or statements of suppliers, contractors, or professionals together with mechanic's lien waivers (whether partial or full), cancelled checks, statements or invoices marked paid from each of the parties entitled to payment with respect to work done for the Project, or other proofs payment for such bills, statements, or invoices for such costs. 2. Absent the City's written consent for an extension provided to the Developer, any costs submitted after April 30, 2024,will not be eligible for reimbursement. a. Upon receiving written request from the Developer on or before April 30, 2024, the Mayor may grant to the Developer one extension of up to forty-five (45) days to complete the Project and comply with Section "E(1)"above. 3. Payment to the Developer for BDD Eligible Project Costs as set forth by the BDD Act shall be made by the City following submission by Developer of a final Requisition for Payment of Private Development Redevelopment Costs (the "Requisition") attached hereto as Exhibit 'U"to Jacob & Klein, Ltd. and the Economic Development Group, Ltd. (collectively the `BDD Administrator"), and the BDD Administrator's approval of the BDD eligible project costs and the availability of funds in the Canton BDD Special Tax Allocation Account. 4. If any costs which are submitted by the Developer are not approved by the Administrator,the reasons for disallowance will be set forth in writing and the Developer may resubmit the costs with such additional information as may be required and the same procedures set forth herein shall apply to such re-submittals. 4 5. All Business District Eligible Project Costs which have been approved shall then be paid pursuant to the terms set forth in Section "B"above. F. LIMITED OBLIGATION OF CITY The City's obligation hereunder to reimburse the Developer as stated herein is a limited obligation. 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 nor obligate the City to utilize its taxing authority to fulfill the terms of this Agreement. G. 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 payments to any contractor, subcontractor, mechanic, or materialman providing services or materials to the Developer for the Project. H. 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 Municipal Sales Tax Revenues payable 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) day period, and thereafter diligently and continuously prosecutes the cure of such default until the same has been cured. I.TIME; FORCE MAJEURE For this Agreement, time is of the essence. The Developer agrees to complete the Project on or before April 30, 2024, subject to extension due to Force Majeure (defined below). Failure to do so shall be cause for the City to declare the Developer in default and unilaterally terminate the Agreement after notice and the opportunity to cure as provided in Section H. 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 the 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, 5 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 or any other cause beyond the reasonable control of the Developer or the City. J.ASSIGNMENT The rights (including,but not limited to, the right to payments contemplated by Section `B" of this Agreement) and obligations.(or either of them) of the Developer under this Agreement shall not be assignable. K.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. L. 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. M.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 Order of the Elks 626 BPOE `/o City Clerk `/o Doug Painter,Head Trustee 2 N. Main Street 61 W. Elm Street Canton,Illinois 61520 Ph: (309) 647-0065 Canton,Illinois 61520 Ph: (309) 712-5747 WIN copy to City BDD Administrator. With copy to: Jacob&Klein,Ltd. and The Economic Development Group,Ltd. 1701 Clearwater Avenue Bloomington,Illinois 61704 Ph: (309) 664-7777 6 N. SUCCESSORS IN INTEREST Subject to the provisions of Section `7"above, this Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and assigns. O. 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. P. 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. Q. 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. R. TERM OF THE AGREEMENT Notwithstanding anything in this Agreement to the contrary, this Agreement shall expire on April 30, 2024, or upon the Developer receiving the incentives provided for in Section `B"above. The Agreement shall expire sooner upon default by the Developer of this Agreement after applicable notice and cure periods. S. ILLINOIS PREVAILING WAGE ACT It is the understanding of the Parties that the position of the Illinois Department of Labor(the "Department") 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 is stated as an answer to a FAQ section on the Department's website.' 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 'See online: btti2s://Iab(,r.illinois.gov/. 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. T. 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. 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 ORDER OF THE ELKS 626, BPOE, Municipal Corporation a 501 C-8 Not-for-Profit Organization BY: V" — - - BY: ayor J Doug Painter,Head Trustee Date: Date: ;A4TTEED BY: Date: L'�;7— 43%z3 EXHIBITS: Exhibit 1. Estimated BDD Eligible Project Costs Exhibit 2. Application for BDD Benefits Relating to Private BDD Eligible Redevelopment Project Costs as submitted by Order of the Elks 626,BPOE. Exhibit 3. Requisition for Payment of Private Development Redevelopment Costs 8 EXHIBIT 1 ESTIMATED BDD ELIGIBLE PROJECT COSTS Order of the Elks 626,BPOE City of Canton,Fulton County, Illinois / Canton BDD No. 1 Project Description: Developer shall repair and renovate the asphalt parking lot located thereon at a total estimated cost of $69,800 for the continued commercial operation of the Canton Elks Lodge #626 - Benevolent and Protective Order of Elks. Location: 61 W. Elm Street, Canton,Illinois Parcel Number: 09-08-27-412-014 and 09-08-27-412-015 Estimated BDD Eligible Project Costs: Repair and renovation of the asphalt parking lot (materials&contracted labor)...............................$69,800 Total Estimated BDD Eligible Project Costs'.....................................................$6�$0 1 The total,cumulative reimbursement of BDD Funds for BDD Eligible Project Costs payable by the City to the Developer shall not exceed 25%of verified BDD eligible project costs incurred by the Developer not to exceed$17,500.00,as set forth in this Redevelopment Agreement. 9 EXHIBIT 2 APPLICATION FOR BDD BENEFITS RELATING TO PRIVATE BDD ELIGIBLE REDEVELOPMENT PROJECT COSTS as submitted by ORDER OF THE ELKS 626, BPOE (61 W. ELM STREET) (See following pager as attached) 10 EXHIBIT 3 CITY OF CANTON,ILLINOIS CANTON BUSINESS DEVELOPMENT DISTRICT (BDD)NO.1 PRIVATE PROJECT REQUEST FOR VERIFICATION OF BDD ELIGIBLE PROJECT COSTS by ORDER OF THE ELKS 626, BPOE (61 W. ELM STREET) Date Attention: City BDD Administrator,City of Canton,Illinois Re: BDD Redevelopment Agreement, dated July 3,2023 by and between the City of Canton,Illinois,and Order of the Elks 626,BPOE(the"Developer") The City of Canton is hereby requested to disburse funds from the Canton BDD 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. ❑ This is the final request for verification of BDD eligible project costs (Developer initials) 2. REIMBURSEMENT PAYABLE TO: Order of the Elks 626_BPOE 3. AMOUNTS REQUESTED TO BE DISBURSED: Description of BDD 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"I"of the Redevelopment Agreement. 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 BDD Eligible 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 "C" 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: APPROVED BY CITY OF CANTON,ILLINOIS BY: TITLE: DATE: REVIEWED BY JACOB &KLEIN,LTD. &THE ECONOMIC DEVELOPMENT GROUP,LTD. BY: TITLE: DATE: 12