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HomeMy WebLinkAboutResolution #5437 - settlement agreement for pending litigation regarding 35 E. Side Square RESOLUTION NO.f�qZ1 A RESOLUTION APPROVING A SETTLEMENT AGREEMENT FOR PENDING LITIGATION REGARDING 35 E. SIDE SQUARE, CANTON,ILLINOIS WHEREAS, on August 20, 2021, the City of Canton (the "City") filed a lawsuit in the Ninth Judicial Circuit of Illinois (Fulton County Case No. 21-MR-113) against TAYLOR LONG ("Long") (the "Lawsuit"); WHEREAS, the Lawsuit arises from an unsafe and dangerous building (the "Building") located at 35 E. Side Square, Canton, Illinois 61520 (the "Premises"); WHEREAS, after the filing of the Lawsuit,the FULTON COUNTY TREASURER(the "County") and INTEGRITY INVESTMENT.FUND, LLC ("Integrity") were joined as defendants to the Lawsuit; WHEREAS, the Lawsuit alleges two counts, which were: (Count I) An Action Pursuant to 65 ILCS 5/11-31-1 et seq. and (Count II)Nuisance; WHEREAS, the City filed a Motion for Order of Default and Default Judgment on February 8, 2023, and on February 17, 2023, the court granted the City's Motion and entered judgment in favor of the City and against Defendants Long,the County,and Integrity(the"Default Order"); WHEREAS, the Default Order, in part, specified that Defendant Long was to commence the removal of all unsafe conditions of the Building within forty-five (45) days of the date of the Default Order and to file proof of said commencement on or before forty-five (45) days after the entry of the Default Order; WHEREAS,the Default Order also required, in part, Defendant Long to remove or repair all unsafe conditions within ninety (90) days of the entry of the Default Order; WHEREAS, in the event Defendant Long fails to commence the removal or repair all unsafe conditions of the Building to the City's satisfaction within forty-five (45) days of the entry of the Default Order OR fails to complete the removal or repair of all unsafe conditions of the Building to the city's satisfaction within ninety (90) days of the entry of the Default Order, the City is hereby authorized to enter, in its sole discretion and without further notice, upon the Premises to cause the demolishment and removal of the Building (or alternatively, demolish and repair and/or remove or repair all unsafe conditions of the Building to the City's satisfaction) at Defendant long's expense. WHEREAS, the City and Defendant Long now desire to enter into a Settlement Agreement to resolve the Lawsuit and to allow the Building to be transferred to the City, subject to certain terms and conditions; WHEREAS, the City Council of the City of Canton, Illinois has determined that it is necessary and in the best interests of the City to approve a settlement agreement, substantially as discussed in closed session and as set forth below, and authorize the execution of any stipulations or other further documents necessary to accomplish the foregoing (collectively the "Settlement Agreement"). NOW THEREFORE,BE IT RESOLVED by the City Council of the City of Canton, Fulton County, Illinois as follows: 1. The Mayor, or his representative,is hereby authorized to negotiate and to enter into a Settlement Agreement with Taylor Long to resolve Fulton County Case No. 21-MR-113 and to allow the City to acquire ownership of the Premises, subject to terms and conditions as may be negotiated and then approved by the Mayor. 2. The Settlement Agreement shall, at a minimum, require the following principal terms, unless further approved by the City Council or otherwise modified by the City Attorney or Mayor to substantially accomplish the following: (a) Taylor Long shall pay all outstanding and past-due real estate taxes and special assessments levied against the Premises, including any interest, penalties, or late fees related thereto; (b) Taylor Long, at his sole cost and expense, shall provide the City with a title commitment ("Title Commitment") for the most current ALTA form Owner's Title Insurance Policy ("Title Policy"), including extended coverage, issued by a reputable title insurance company as approved by the City ("Title Insurer"), covering the Premises in an amount acceptable to the City showing merchantable record title to the Premises to be in Taylor Long. At closing, Taylor Long, at his sole cost and expense, shall cause Title Insurer to issue the Title Policy to the City (in accordance with the Title Commitment) with all general exceptions deleted or endorsed over (including without limitation possession,encroachments,overlaps,boundary line disputes,matters of survey, easements, mechanic liens and taxes or special assessments not shown as existing by the public records exceptions), subject only to matters approved or waived in writing by Purchaser. (c) Taylor Long, at his sole cost and expense, shall obtain(and provide to the City) a current ALTA survey of the Premises ("ALTA Survey"), to be certified by a professional surveyor licensed by the State of Illinois to the City and Title Insurer (and other parties designated by the City) and prepared in accordance with the standard for Land Title Surveys and the American Congress of Surveying and Mapping Class A survey, setting forth the legal description and street address of the Premises and showing all improvements(including fences) located on the Premises, easements (visible or recorded), building lines, curb cuts, sewage, water, electricity, gas and other utility facilities (together with recording information concerning the documents creating any such easements and building lines), roads and other rights-of-way and means of physical and record ingress and egress to and from the Premises by public roads (including the dimension of abutting streets) and the net(after deduction of land dedicated or used or subject to easements for roads, highways, fire lanes, utilities, storm drains or any other public purpose) and gross area of the land included in the Premises, and spotting improvements on adjoining property which are within five (5) feet of the property lines of the Premises; (d) Taylor Long shall remove all outstanding liens and encumbrances from the Premises; (e) Taylor Long shall transfer all of his rights, title, and interest in the Premises to the City, free of all liens, encumbrances, leaseholds, or other interests (unless waived by the City),by warranty deed in a form approved by the City Attorney; and (f) Taylor Long shall execute a release, approved by the City Attorney, releasing and holding harmless the City from any and all damages, causes of action, lawsuits, and liability related to or arising from the Premises, Building, or Lawsuit. 3. The City Attorney and/or Mayor are hereby authorized to require any additional terms and conditions they deem necessary in the accomplishment of the foregoing Settlement Agreement and in the interests of the City. 4. Upon completion of the required terms and conditions of the Settlement Agreement by Taylor Long,the City Attorney and/or Mayor are authorized to dismiss the Lawsuit. 5. The City Attorney, Mayor and City Clerk of Canton,Illinois are hereby authorized and directed to execute and deliver the Settlement Agreement, and any other stipulations or other further documentation necessary to accomplish the foregoing, on behalf of the City. 6. The City Attorney is hereby authorized to make any revisions to any of the documents, including the Settlement Agreement, necessary to substantially accomplish the foregoing. The Mayor and City Attorney are further authorized to take all further necessary actions with regards to the Lawsuit, including the filing or recording of any appropriate motions, stipulations,releases, and/or orders, and consistent with the Settlement Agreement. 7. This Resolution shall be in full force and effect immediately upon the passage and approval of this Resolution. PASSED AND APPROVED THIS 7th DAY OF JUNE, 2023. Ayes: �11D��pe,esow►5 Qosse.-rT) v%�e%NVe -t.2 K�,Tc wWvv%1"orve" RJr,nw.� Nays: Moue Absent: &%,Je.a- e_aSoh-i j )Jt l S o M City of Canton, Illinois APPROVED: Kent McDowe ayor Attest: dreg J. S ith-Walters, City Clerk