The URL can be used to link to this page

Home My WebLink AboutOrdinance #4364 - Redevelopment Agreement between The City of Canton and Jacob & Brooke Postin, JBP Properties 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 5Tx DAY OF SEPTEMBER, 2023 ADOPTED ORDINANCE NO. 4364, A TRUE AND CORRECT COPY OF WHICH IS CONTAINED IN THIS PAMPHLET. GIVEN UNDER MY HAND AND SEAL THIS 5TH DAY OF SEPTEMBER,2023. (SEAL) ANDREA WALTERS-SMITH CITY CLERK CITY OF CANTON,ILLINOIS ORDINANCE NO. 4364 AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A SECOND AMENDMENT TO THE TIF REDEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF CANTON,FULTON COUNTY,ILLINOIS AND JACOB POSTIN AND BROOKE POSTIN AND JBP PROPERTIES,LLC PASSED BY THE CITY COUNCIL OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS, ON THE 5TH DAY OF SEPTEMBER,2023. PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY COUNCIL OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS, THIS 5ffl DAY OF SEPTEMBER,2023. EFFECTIVE: SEPTEMBER 5,2023 CITY OF CANTON,ILLINOIS: ORDINANCE NO.4364 CANTON 1—DOWNTOWN/5TH AVENUE TAX INCREMENT FINANCING(TIF)DISTRICT AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A SECOND AMENDMENT TO THE TIF REDEVELOPMENT AGREEMENT by and between THE CITY OF CANTON and JACOB POSTIN and BROOKE POSTIN and JBP PROPERTIES,LLC BE IT ORDAINED BY THE CITY OF CANTON,FULTON COUNTY,ILLINOIS THAT: 1. The Second Amendment to the TIF Redevelopment Agreement with Jacob Postin and Brooke Postin and JBP Properties,LLC (ExhihitA) attached hereto is hereby approved. 2. The Mayor is hereby authorized and directed to enter into and execute on behalf of the City said Second Amendment to the TIF Redevelopment Agreement and the City Clerk of the City of Canton is hereby authorized and directed to attest such execution. 3. The Second Amendment to the TIF Redevelopment Agreement shall be effective the date of its approval on the 5`' day of September, 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 this page is intentionally blank] PASSED, APPROVED AND ADOPTED by the Corporate Authorities of the City of Canton, Fulton County,Illinois,on the 5`1i day of September,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 Patrick Ketchum Ralph Grimm Greg Gossett Justin Nelson John Lovell Angela Hale Kent A.McDowell,Mayor TOTAL VOTES 9 0 0 APPROVED: AA `' ' , Date:J_/_�:�/2023 ent A.McDowell,Mayor I,;) ATTEST: z - , Date:�/ 5� /2023 drea Walters-Smith, City Clerk ATTACHMENTS: EXHIBIT A. SECOND AMENDMENT TO TIF REDEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF CANTON AND JACOB POSTIN AND BROOKE POSTIN AND JBP PROPERTIES,LLC. CITY OF CANTON CANTON 1 - DOWNTOWN/5TH AVENUE TAX INCREMENT FINANCING DISTRICT SECOND AMENDMENT TO THE TIF REDEVELOPMENT AGREEMENT by and between THE CITY OF CANTON, FULTON COUNTY, ILLINOIS and JACOB POSTIN and BROOKE POSTIN and JBP PROPERTIES, LLC SEPTEMBER 5, 2023 CITY OF CANTON CANTON 1-DOWNTOWN/5TH AVENUE TAX INCREMENT FINANCING(TIF) DISTRICT SECOND AMENDMENT TO THE TIF REDEVELOPMENT AGREEMENT by and between CITY OF CANTON and JACOB POSTIN AND BROOKE POSTIN AND JBP PROPERTIES, LLC THIS SECOND AMENDMENT TO THE TIF REDEVELOPMENT AGREEMENT is entered into this 5"'day of September,2023,by and between the CITY OF CANTON (the"City"), an Illinois Municipal Corporation, Fulton County, Illinois; and JACOB POSTIN AND BROOK POSTIN AND JBP PROPERTIES,LLC (collectively, the"Developer"). PREAMBLE WHEREAS,the City has the authority to promote the health, safety,and welfare of the City and its citizens, and to prevent the spread of blight and deterioration and inadequate public facilities, by promoting the development of private investment property thereby increasing the tax base of the City and providing employment for its citizens;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 develop,redevelop,and rehabilitate such property by reimbursing the owner for certain costs from resulting increases in real estate tax revenues and enter into contracts with developers necessary or incidental to the implementation of its redevelopment plan pursuant to 65 ILCS 5/11-74.4-4(b) and 0);and WHEREAS, pursuant to 65 ILCS 5/8-1-2.5 the City is authorized to appropriate and expend funds for economic development purposes,including,without limitation, the making of grants to any other governmental entity or commercial enterprise that are deemed necessary or desirable for the promotion of economic development within the municipality;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 Redevelopment Plan and Projects,designated a Redevelopment Project Area and adopted Tax Increment Financing under the Act for the Canton International Harvestor Site Project Area,(currently known as the Canton-1 Downtown/5th Avenue TIF District) (the"TIF District"); and WHEREAS,on May 17,2022,the Parties entered into a Redevelopment Agreement(the"Original Agreement',wherein the City agreed to extend incentives to provide reimbursement of certain TIF eligible project costs for property located at 29 East Side Square,Canton,Illinois (PINS 09-08-27-410- 013 and 09-08-27-410-014);and WHEREAS, on December 6, 2022, the City approved the First Amendment to the Original Agreement to add JBP Properties,LLC as a Developer; and I WHEREAS,the Developer,Jacob Postin and Brooke Postin and JBP Properties,LLC,previously agreed to rehabilitate the building located on said Property(the"Project")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 and municipal tax bases of the City and the tax bases of other taxing bodies, which increased incremental taxes will be used,in part,to finance incentives to assist redevelopment projects undertaken within the TIF District;and WHEREAS, the City has the authority under the Act to incur Redevelopment Project Costs ("Eligible Project Costs")and to reimburse Developer for such costs pursuant to 65 ILCS 11-74.4-40); and WHEREAS, the Parties agree to Amend the terms of the Original Agreement and the First Amendment as set forth below. SECOND AMENDMENT A. AMENDED "PREAMBLE" The 14'6 Whereas clause in the Preamble shall be deleted in its entirety and replaced with the following: WHEREAS, the Parties have agreed that the City shall reimburse the Developer in three (3) installments,whereby:A)upon acquisition of the Property,the City issuing a Certificate of Occupancy for the new apartment space in the south-half/upper-level of the building and the Developer having verified a minimum of$137,500 of TIF eligible costs for rehabilitation,repairs and renovations incurred by the Developer for the redevelopment of the Property the City shall reimburse Developer a single, lump-sum payment of Fifteen Thousand and 00/100 Dollars ($15,000.00);B)upon the Developer completing and verifying a minimum of$112,500 of additional TIF eligible costs for rehabilitation, repairs and renovations incurred by the Developer for the redevelopment of the Property,the City shall reimburse the Developer a second installment of Fifteen Thousand and 00/100 Dollars($15,000.00); and C) upon completion of the Project in its entirety, verification of a minimum of $62,500 of additional TIF eligible project costs incurred by the Developer for the redevelopment of the Property, and after having achieved not less than Fifty Percent (50%) occupancy of all south-side/upper-level residential apartment and lower-level commercial business space in the building,the City shall reimburse a final Ten Thousand and 00/100 Dollars ($10,000) to the Developer. All said payments to the Developer by the City shall be reimbursements of the Developer's Verified TIF Eligible Project Costs as estimated and set forth in Exhihit "1"attached hereto. Such reimbursements shall be payable pursuant to the terms herein provided and only during the current remaining life of the TIF District(tax year 2027 payable 2028),or upon the Developer's receipt of the maximum,cumulative reimbursement amount of Forty Thousand and 00/100 Dollars ($40,000.00),whichever occurs first. B.AMENDED "A. PRELIMINARY STATEMENTS" SectionA(4)of the Original Agreement shall be deleted in its entirety and replaced with the following: 4. The Developer shall complete the Project within twenty-four(24)months from the date this Agreement is executed, subject to extension due to Force Majeure (defined below). The Project shall be deemed to be complete when the new south-half/upper-level residential 2 apartment units are completed, the rehabilitation and renovation of the lower-level commercial business space has been completed,the City has issued a Certificate of Occupancy. for the entire Project, and the Developer has achieved a minimum of Fifty Percent (509/6) occupancy in both the south-half/upper-level residential apartment units and the lower-level commercial business space. C.AMENDED "C. INCENTIVES" Section C(1)of the Original Agreement shall be deleted in its entirety and replaced with the following: 1. The City shall reimburse the Developer in three(3) installments,whereby: 1) upon acquisition of the Property,the City issuing a Certificate of Occupancy for the new apartment space in the south-half/upper-level of the building and the Developer having verified a minimum of $137,500 of TIF eligible costs for rehabilitation, repairs and renovations incurred by the Developer for the redevelopment of the Property the City shall reimburse Developer a single, lump-sum payment of Fifteen Thousand and 00/100 Dollars ($15,000.00); 2) upon the Developer completing and verifying a minimum of$112,500 of additional TIF eligible costs for rehabilitation,repairs and renovations incurred by the Developer for the redevelopment of the Property, the City shall reimburse the Developer a second installment of Fifteen Thousand and 00/100 Dollars ($15,000.00); and 3) upon completion of the Project in its entirety, verification of a minimum of$62,500 of additional TIF eligible project costs incurred by the Developer for the redevelopment of the Property,and after having achieved not less than Fifty Percent (509/6) occupancy of all south-side/upper-level residential apartment and lower-level commercial business space in the building,the City shall reimburse a final Ten Thousand and 00/100 Dollars ($10,000) to the Developer. All said payments to the Developer by the City shall be reimbursements of the Developer's Verified TIF Eligible Project Costs as estimated and set forth in Exhihit"1"attached hereto. Such reimbursements shall be payable pursuant to the terms herein provided and only during the current remaining life of the TIF District(tax year 2027 payable 2028), or upon the Developer's receipt of the maximum, cumulative reimbursement amount of Forty Thousand and_00/100 Dollars ($40,000.00), whichever occurs first. D.AMENDED "L.TIME;FORCE MAJEURE Section L of the Original Agreement shall be deleted in its entirety and replaced with the following: For this Agreement,time is of the essence.The Developer agrees to complete this Project within twenty-four(24)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. 3 E. PRIOR AGREEMENT TERMS APPLY All terms of the Original Agreement and First Amendment shall apply to this Second Amendment and remain effective unless specifically modified by this Second Amendment to the Redevelopment Agreement. IN WITNESS WHEREOF the Parties hereto have caused this Second Amendment to the Redevelopment Agreement to be executed by their duly authorized officers on the above date at Canton,Illinois. CITY 12EVELOPER CITY OF CANTON, JBP Properties, LLC, an Illinois Limited an Illinois Municipal Corporation: Liability ; pany: C. BY: BY: Mayor tt n r NAME:�JV.t o,b ATTEST: Za C ty Clerk TITLE: W A,u a.y,r,y AND JACOB POSTIN AND BROOKE POSTIN 4