HomeMy WebLinkAboutOrdinance #4369 - Redevlopment Agreement between The City of Canton and JBP Properties, Jake & Brooke Postin (25/29 East Side Square) 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 17 ' DAY OF OCTOBER, 2023 ADOPTED ORDINANCE NO.4369, A TRUE AND
CORRECT COPY OF WHICH IS CONTAINED IN THIS PAMPHLET.
GIVEN'UNDER MY HAND AND SEAL THIS 17'•x'DAY OF OCTOBER,2023.
(SEAL)
. / fil71°
• NDREA .WALTERS-SMITH
CITY CLERK
i
CITY OF CANTON, ILLINOIS
ORDINANCE NO. 4369
AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A
REDEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF CANTON,FULTON COUNTY,ILLINOIS
AND
JBP PROPERTIES,LLC
AND
JACOB POSTIN
AND
BROOKE POSTIN,
(25/29 EAST SIDE SQUARE)
PASSED BY THE CITY COUNCIL
OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS,
ON THE 17TH DAY OF OCTOBER, 2023.
PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY
COUNCIL OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS,
THIS 17T`-`DAY OF OCTOBER, 2023.
EFFECTIVE: OCTOBER 17,2023
2
ORDINANCE NO. 4369
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
JBP PROPERTIES,LLC
and
JACOB POSTIN
and
BROOKE POSTIN
(25/29 East Side Square)
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 JBP Properties,LLC,an Illinois
Limited Liability Company, and Jacob Postin, and Brooke Postin (collectively the "Developer")
attached hereto as Exhibit `A,"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 17th day of October,2023.
5. 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 left blank.)
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PASSED APPROVED AND ADOPTED by the Mayor and City Council of the City of
Canton this 17th day of October,2023.
MAYOR&ALDERMEN AYE VOTE NAY VOTE. ABSTAIN/ABSENT
Angie Lingenfelter X
Andra Chamberlin X
Patrick Ketcham X
Ralph Grimm X
Greg Gossett X
Justin Nelson X
John Lovell X
Angela Hale X
Kent A.McDowell,Mayor X
TOTAL VOTES 7
APPROVED: CA• k_-rte , Date /D / / 7/2023
ayor, City of Canton
A/
ATTEST: /iia j .i I al! ..i i _I% cillo , Date: 6 / /2023
City Clerk, "ity 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 JBP Properties,LLC and Jacob Postin and
Brooke Postin.
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EXHIBIT A
CITY OF CANTON, ILLINOIS
BUSINESS DEVELOPEMNT DISTRICT NO. 1
REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON
and
JBP PROPERTIES,LLC
and
JACOB POSTIN
and
BROOKE POSTIN
(25/29 East Side Square)
5
CITY OF CANTON, ILLINOIS
BUSINESS DEVELOPMENT DISTRICT NO. 1 REDEVELOPMENT
AGREEMENT
by and between
CITY OF CANTON, ILLINOIS
and
JBP PROPERTIES,LLC
and
JACOB POSTIN
1'
and
BROOKE POSTIN
(25/29 East Side Square)
OCTOBER 17, 2023
(
CITY OF CANTON, ILLINOIS
BUSINESS DEVELOPMENT DISTRICT NO. 1
REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON,ILLINOIS
and
JBP PROPERTIES,LLC
and
JACOB POSTIN
and
BROOKE POSTIN
(25/29 East Side Square)
THIS AGREEMENT (including Exhibits, hereinafter referred to as the "Agreement") is
entered into this 17th day of October, 2023, by the City of Canton (the "City"), an Illinois Municipal
Corporation, Fulton County, Illinois, and JBP Properties, LLC, an Illinois Limited Liability
Company, and Jacob Postin, and Brooke Postin (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 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 25/29 East
Side Square (PIN 09-08-27-410-013 and PIN 09-08-27-410-014),which is hereinafter referred to as
the"Property;"and based in part on incentives made available by the City,the Developer shall proceed
to complete roof repairs,remove a deteriorated garage on the rear of the building,renovate the south-
half/upper-level of the building for new residential apartment space, stabilize and repair essential
amenities on the lower-level of the structure and then undertake major rehabilitation and
reconfiguration of the lower-level for use as rental space for commercial-retail use (the"Project"),and
is doing so based upon incentives made available by the City;and
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WHEREAS, on May 17, 2022, the City approved Ordinance No. 4290 to provide the
Developer with reimbursement of certain Tax Increment Financing (TIF) Eligible Project Costs
incurred on the Property;and
WHEREAS, as further incentive to complete 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
Redevelopment Project Costs attached hereto as Exhibit "2;"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, the City and the Developer (the "Parties") have agreed that the City shall
provide a forgivable loan to the Developer for the reimbursement of a portion of the Developer's
BDD Eligible Project Costs which have not previously been reimbursed with TIF funds (as set
forth in Exhibit "1"attached hereto) of an amount not to exceed Forty Thousand and 00/100
Dollars ($40,000.00) to be paid from the Canton BDD No. 1 Special Tax Allocation Fund as
specified below in Section B, Incentives; and
WHEREAS,in no event shall cumulative maximum reimbursements for the Developer's
BDD Eligible Project Costs under this Agreement exceed Forty Thousand and 00/100 Dollars
($40,000.00);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.
a. For the purpose of this Agreement, "Business District Revenues" shall be defined
as the Village's One Percent (1°/0) rate of Business District Retailers' Occupation Tax
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and Business District Service Occupation Tax (65 ILCS 5/11-8-5)imposed on
businesses located within the Business District and the Developer's Property.
b. For the purpose of this Agreement, "BDD Eligible Costs" shall mean those costs
eligible for reimbursement under the Business District Development and
Redevelopment Act and are further described in Exhibit "1"attached hereto.
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. In exchange for a Promissory Note to be issued by the Developer to the Village as set forth
in Exhibit "3"attached hereto,the City agrees to loan to the Developer (also,the"Borrower")
Forty Thousand and 00/100 Dollars ($40,000.00) as reimbursement for the Developer's
verified BDD Eligible Costs incurred in furtherance of the Project, and which have not
previously been reimbursed with TIF funds for the Project, from the BDD No. 1 Special Tax
Allocation Fund. The terms and conditions for the loan shall be as follows:
a. The full Loan amount of$40,000.00 shall be paid to the Developer from the Canton
BDD No. 1 Special Tax Allocation Fund within thirty (30) days following the
execution of this Agreement, or upon verification of a minimum of$40,000 of BDD
Eligible Project Costs pursuant to Section "E"below,whichever occurs later.
b. A separate Promissory Note is attached hereto as Exhibit "3".
c. The interest rate for the note shall be Three Percent (3%) per annum and shall begin
to accrue on the date the loan funds are disbursed to the Developer.
d. The term of the note shall expire five (5) years from the date the loan funds are
disbursed to the Developer hereunder.
e. One-Fifth (1/5) of the principal amount of the loan,plus any accrued interest thereon,
shall be forgiven annually by the City commencing one (1) year from the date the loan
funds are disbursed to the Developer and continuing on said date of each year
thereafter for the term of the loan,provided the Developer has been at all times in full
compliance with every term of this Agreement,including the following:
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i. The Developer shall maintain constant and continuous operation of the
Property from the time the Project is complete and continuing for the term of
this Agreement.
ii. The Developer shall annually provide verification of the payment of the real
estate taxes for the property during the term of this Agreement.
iii. The Developer does not file for bankruptcy or otherwise become insolvent
during the term of this Agreement.
iv. The Property is not the subject of foreclosure proceedings during the term of
this Agreement.
v. The Developer does,not sell or otherwise convey the Property during the term
of this Agreement.
vi. The Developer shall carry adequate insurance on the Property to cover the
replacement cost of the completed Project.
vii. As signatories to this Agreement and the Note,JBP Properties,LLC,an Illinois
Limited Liability Company, Jacob Postin, and Brooke Postin shall be
guarantors for the Note and shall each be jointly and severally liable in the
event of a default thereof.
C. LIMITATION OF INCENTIVES TO DEVELOPER
In no event shall the maximum cumulative reimbursements for the Developer's BDD Eligible Project
Costs pursuant to Section "B(/)"above exceed Forty Thousand and 00/100 Dollars ($40,000.00) as
set forth herein.
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.
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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 "4"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.
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"),
6
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,
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
7
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 JBP Properties,LLC
% City Clerk
%Jacob and Brooke Postin
2 N. Main Street 21589 E. McLouth Rd.
Canton,Illinois 61520
Ph: (309) 647-0065 Canton, Illinois 61520
Ph: (309) 360-9835
With copy to City BDD Administrator. Email: Jacob.postin@compeer.com
Jacob &Klein,Ltd. and With copy to:
The Economic Development Group,Ltd.
1701 Clearwater Avenue
Bloomington, Illinois 61704
Ph: (309) 664-7777
N. SUCCESSORS IN INTEREST
Subject to the provisions of Section `f"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.
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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
the date that is five (5) years from the date the loan funds are disbursed to the Developer pursuant to
Section C 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
Itis 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
Aindemnified 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. 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. 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.
(The remainder of this page is intentionally left blank.)
1See online: haps://labor.illinois.gov/.
9
.
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 JBP PROPERTIES, LLC,an Illinois Limited
Municipal Corporation Liability mpany
BY: 1 = / 4401-"){9° BY: - it C� POSC-4...deo
M.yor anager,JBP Properties,LLC
Date: /0
( ) Date: i0/1(1/0/0a3
JACOB POSTIN,individually
ATTE TED BY:
/. ice ._./ / / .� /l%ft
BY: i",1,
cob Postin
1170f ---
'ty Clerk
Date: tilt 7/020 ay •
Date: /5-a'23
BROOKE POSTIN,individually ;
BY: ‘.11 / i •
Broo e Postin aa41?-15??)
Date: )U )
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 JBP Properties,LLC and Jacob Postin and Brooke Postin.
Exhibit 3. Promissory Note.
Exhibit 4. Requisition for Payment of Private Development Redevelopment Costs.
I0
EXHIBIT 1
ESTIMATED BDD ELIGIBLE PROJECT COSTS
JBP Properties,LLC and Jacob Postin and Brooke Postin
City of Canton, Fulton County, Illinois / Canton BDD No. 1
Property: 29 East Side Square, Canton, IL (PIN 09-08-27-410-013 and PIN 09-08-27-410-014)
Project Description: Repair or replace the roof, remove a deteriorated garage on the rear of the
building, renovate the south-half/upper-level of the building for new residential apartment space,
stabilize and repair essential amenities on the lower-level of the structure and then undertake major
rehabilitation and reconfiguration of the lower-level for use as rental space for commercial-retail use.
r
,,:: . ' . ' ,.',';: li _ - _: , : ; ,-1,"._, -
-' M71 7 ._. -7-accif277111 ..-.-±. . :
. ' . , , lirs4
17
Figure 1.Front,west facing side of the building. Figure 2.Rear,east facing side of the building.
Developer's Estimated BDD Eligible Project Costs:
Property acquisition $60,000
Professional legal expenses $1,500
Rehabilitation or renovation of existing buildings (interior and exterior) $302,500
Long-term interest costs (up to 30%of interest incurred) $1,200
TOTAL ESTIMATED TIF ELIGIBLE PROJECT COSTS' $365,200
NOTE: The total,cumulative reimbursement of new real estate tax increment generated by the Developer's Project for
BDD Eligible Project Costs payable by the City to the Developer shall not exceed $40,000.00, as set forth in this
Redevelopment Agreement. The line items set forth in this Exhibit "1"are not intended to place a total limit on the
described expenditures or intended to preclude payment of other BDD eligible redevelopment project costs in connection
with the Developer's Project,provided the total amount of payment for all eligible redevelopment project costs,public
and private,shall not exceed the total amount set forth herein. Adjustments may be made to the designated and anticipated
line items within the total, either increasing or decreasing verified line-item costs for the Redevelopment Project. For
purposes of this Agreement, the City's reimbursement of BDD Eligible Project Costs to the Developer exclude the costs
incurred for the acquisition of land and buildings and any costs previously reimbursed from TIF Funds or other City sources.
11
EXHIBIT 2
APPLICATION FOR BDD BENEFITS RELATING TO PRIVATE BDD
ELIGIBLE REDEVELOPMENT PROJECT COSTS
as submitted by
JBP PROPERTIES,LLC AND JACOB POSTIN AND BROOKE POSTIN
(25/29 East Side Square)
•
(See followingpages as attached)
12
City of Canton, Illinois
Canton Business Development District (BDD) No. 1 (established-3/15/2022)
City of Canton, Illinois /2 N. Main St.,Canton, IL 61520 Ph: (309)647-0065
APPLICATION FOR REIMBURSEMENT OF
PRIVATE BOD ELIGIBLE REDEVELOPMENT PROJECT COSTS
Applicant Name:j bp prupeis J LLC
ApplicantMailingAddress:d q1� _I A 1 CI®IAr-k 2tifLai.t-h:,1A, TL
Applirunt Daytime Phon,309-3foa-'t 1> Applii,nt Email Address, i"-lok.• PO!SfC ..P..fJ•WI
Subject Property's Site Address: ,1 a. '9 I Jir.Le sl'ucf-e. Ca.IA,rfu _r.L
Subject Property's Fulton County Property Tax ID #
Property Owner Name(s) if different than Applicant:
Type of Property(-heck all that app.{y):}8fCommercial/Retail; D Professional Office; D Industrial; Residential
Anticipated Project Start Date: ((..✓A.. f<t, ki and Estimated Project Completion Date:Apr:11) Joa 5
Number of new jobs, if any,that will be created as a result of this Project: Full-time _ Part-time 7
New annual retail sales anticipated to occur,if any,as a result of the proposed improvements: $
Total Projected Investment for Project:$ ,of which$ is land/building improvements.
Estimated BDD Eligible Project Costs (attach detailed list and description, as well as bids for contracted work):
1. Professional fees(e.g.,engineering,architectural,legal,accounting, plans,marketing) $
2. Acquisition cost ofland and buildings purchased after 3/15/2022 $
3. Site preparation (e.g.,demolition, excavation, leveling/grading ofland) $
4. Exterior rehab, repair, remodeling, reconstruction of existing buildings $
5. Interior rehab, repair, remodeling, reconstruction of vacant, underutilized space $.
6. Construction of new building , , ,.$,
7. Construction or repair of private parking lot and/or driveway $.
8. Construction or repair of public infrastructure $, c
TOTAL ESTIMATED Bno ELIGIBLE PROJECT cosTs: $LISOI DDo
FOR CITY USE:
Signed application received by the City of Canton on date:_/ _ / by
City Finance Committee Recommendation:o Approved for Amount: $ on date:_ / _ /_ _
Notes/instructions: (attach more detail as needed)
D Denied for reason: (attach more detail as needed)
BDD Application forwarded to City's BDD Administrator on date: _ / _ / _ _
Date of Approved Redevelopment Agreement:_/ _ / _ Verified BDD Eligible Project Costs: $
Amount reimbursed by City to Applicant: $. by Check No. on date: / /
- 1 -
PLEASE READ THE FOLLOWING REOUIREMENTS CAREFULLY
BDD reimbursements are provided for EDD-eligible project costs (pursuant to 65 ILCS 5/11-74.3-1 et. seg. as
amended, the "Act") and only for such eligible project costs that are incurred and verified for redevelopment
projects undertaken within the designated BDD No. 1 Redevelopment Project Area. All BDD Applications are
reviewed by the City's Finance Committee prior to approval of a written redevelopment agreement by the Canton
City Council and all reimbursements by the City are subject to the availability of funds.
1. Only properties located within the Canton Business Development District No. 1 Redevelopment Project
Area (the "BDD Area" or "Area") as depicted below are eligible to apply for BDD assistance. To verify a
property is located within the BDD Area, contact the Spoon River Partnership for Economic Development
for assistance: 48 N. Main Street, Canton, IL 61520; Ph: (309) 647-2677; or send email inquiries to
cmcdanielOcantonillinois.orc, or visit online at: https.: / /www.cantonillinois.ond economic-development..
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MEM.-1=M--J Mila r'.y vI ai"'1 1 -I. ____ �c11 t }�t�2 li ___ - I . - ' -__
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111S:i Canton Business Development District No.I(FI l:st :nendment)
MAURER-STUTZ P `
September_o,_0_2 As Amended
2. All applicants are to attach a description of the planned improvements, estimated costs (contractor
bids, if any) of the project, and the project schedule. Conceptual sketches, photographs and drawings
are encouraged. The City reserves the right to request additional information, including, but not limited to,
how the property will be utilized (e.g., commercial, residential, type of business, etc.) after the renovations
are completed.
3. All projects undertaken with BDD Funds must comply with applicable City of Canton design guidelines,
zoning ordinances and building codes.
4. A Tenant-Applicant of a building for which the reimbursement of leasehold improvements is requested
through BDD Funds must provide written consent from the Property Owner for all proposed
improvements(see Appendix A).
-2-
5. The City of Canton reserves the right to accept BDD Applications from those Applicants who undertake
projects the City deems to be compliant with the Act and for projects that the City believes will further
stimulate the type of redevelopment that is consistent with the Canton Business Development District No.
1 Redevelopment Plan, and Projects. The Canton City Council shall exercise its authority pursuant to the
Act to reimburse private redevelopment project costs in such amounts that are deemed to be in the best
interests of the citizens of the City of Canton.
6. Applicants must, in advance of receiving BDD funds: a) verify that the most recent real estate tax bill(s)
have been paid for the Property; and b) verify BDD eligible project costs in an amount equal to or greater
than the amount approved by the City Council. BDD Funds are paid by the City of Canton to
Applicants:
a. with whom the City Council has approved a written redevelopment agreement by City
Ordinance;
b. upon completion of the Project and terms of the redevelopment agreement; and
c. following the verification of BDD eligible project costs that have been incurred by the
Applicant - no exceptions. The City's obligation hereunder to pay BDD funds for eligible
project costs is a limited obligation to be paid solely from the Canton BDD No. 1 Special Tax
Allocation Fund,unless otherwise specified in the redevelopment agreement.
7. It is the understanding of the City and the Applicant that the position of the Illinois Department of Labor is
that the Illinois Prevailing Wage Act does not currently apply to sales tax incentives, such as BDD Funds,
that are received by private Developers as reimbursement for BDD Eligible Project Costs.This position of
the Department of Labor is available online at: httns: www2.illinois.gov idol/EAOs/Pages/prevailint•-
wase-faq.aspx#qst 16. Any project costs incurred by the Developer within a public right-of-way or for
which the improvements are intended to be dedicated to the City are subject to the Prevailing Wage Act.
8. All Applications are subject to review by the City Finance Committee prior to City Council approval.
The undersigned certifies and warrants that to the best of his/her knowledge the information contained in
and attached to this Application Form is true, correct, and complete and furthermore agrees to the terms
and conditions provided herein. Nothing contained in this BDD Application shall be construed by the
City or the Applicant or any third person to create the relationship of a partnership, agency, or joint venture
between the City and the Applicant.
Applicant Sir.patu J�••' TJ1• , d ,dl•Sz1IL Date, Jl/ • I :10)J
PP P ,� �d•� J
/Applicant is the Owner of Subject Property
D Applicant is Tenant of Subject Property for whichAppendixA has been completed and attached hereto.
-3.-
APPENDIXA
APPLICATION FOR REIMBURSEMENT OF
PRIVATE BDD ELIGIBLE REDEVELOPMENT PROJECT COSTS
City of Canton,Illinois/2 N. Main St.,Canton,IL 61520 Ph:(309)647-0065
(Complete top and bottom portions of this form on!J if the Applicant is not the ProperO!01 vner)
TENANT-APPLICANT AFFIDAVIT
We the undersigned are the Applicant and Tenant of real Property located at the following address:
,(PIN ),
and hereby disclose our intent as Tenant of said Property to incur certain eligible project costs as "Leasehold
Improvements"for which we are requesting the reimbursement from the Canton Business Development District No. I
Special Tax Allocation Fund, pursuant to the terms and conditions provided herein.
BY: Date:_/ I _
(Authorized Tenant Signature)
(Print Tenant Name)
STATE OF ILLINOIS •
COUN1Y OF FULTON
I,the undersigned Notary Public,do hereby affirm that personally appeared before me on the day of
and signed the above Statement as a free and voluntary act and deed.
Notary Publit-
Date ofCommission Expiry: _ l _ l _ _
PROPERTY OWNER-LANDLORD AFFIDAVIT
As the owner of the above-described real Property, I hereby provide the Tenant my consent to undertake the
proposed "Leasehold Improvements" on the Property, whereby the Tenant shall incur certain eligible project costs
for which the Tenant is requesting reimbursement from the Canton Business Development Dzstrict No. I Spedal Tax
Allocation Fund pursuant to the terms and conditions provided herein.
Furthermore, as a signatory to this Application, I do hereby direct the City of Canton to make the BDD grant
payment rded by the G for this Project payable to the Tenant-Applicant.
BY: ff.'R LLL Date:ll /L / JJ.
(Authorized Property Owner-Landlord Signature)
Jaw e -t— p05f‘VI1 Vcta 1
(Print Property Owner-Landlord Name-)
STATE OF ILLINOIS
COUN1Y OF FULTON TT (L
I,the undersigned Notary Public,do hereby affirm thatiGllO b L 12lixi personally appeared before me on the_/ day of
f 'Jorlrl ,and signed the above Statement as a free and voluntary act and deed.
U,
Notary Public ., ',
Date of Commission Expiry: .IL I I_/ Z.C-Z... Z r+aal'ARI eedo fai
MY cOmasibliNo1RES'1'U14
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EXHIBIT 3
PROMISSORY NOTE
•
FOR VALUE RECEIVED,JBP Properties,LLC and Jacob Postin and Brooke Postin
(the"Borrower"),promises to pay the City of Canton,Fulton County,Illinois,an Illinois Municipal
Corporation (the "Lender") the principal sum of up to Forty Thousand Dollars ($40,000.00) with
interest accruing on the unpaid principal at the rate of three percent (3%) per annum. The
aforementioned principal sum represents monies loaned by the Lender to the Borrower for the
reimbursement of Borrower's BDD Eligible Costs incurred as a result of a Redevelopment Project
located at 25/29 East Side Square, Canton, Illinois (PIN 09-08-27-410-013 and PIN 09-08-27-410-
014 and the"Property"),within the Redevelopment Project Area and that is the subject of a Business
Development District No. 1 Redevelopment Agreement by and between the City of Canton and JBP
Properties,LLC and Jacob Postin and Brooke Postin (the"Redevelopment Agreement") entered into
the 17th day of October, 2023.
The term of this Promissory Note shall commence on the date the reimbursements provided
for in Section "B"of the Redevelopment Agreement are disbursed to the Borrower and end on the
date that is eight (8) years from the date of such disbursement.
Provided that the Borrower is at all times in compliance with the Redevelopment Agreement
and this Promissory Note, One-Fifth (1/5) of the principal balance of up to $40,000.00, plus any
accrued interest thereon, shall be forgiven by the Lender each year during the term of this Promissory
Note, with the first date of forgiveness being the date that is one (1) year from the date of the
disbursement set forth in Section "B"of the Redevelopment Agreement and continuing on said date
of each year thereafter for the term of this Promissory Note. Provided that the Borrower does not
Default or otherwise breach this Promissory Note or the Redevelopment Agreement,the full principal
amount of this Promissory Note,plus any accrued interest thereon,shall be forgiven on the expiration
of this Promissory Note.
The Borrower shall be deemed in Default of this Promissory Note if the Borrower:
i. The Developer fails to maintain constant and continuous operation of the
Property from the time the Project is complete and continuing for the term of this
Agreement.
ii. The Developer fails to annually provide verification of the payment of the real
estate taxes for the property during the term of this Agreement.
iii. The Developer files for bankruptcy or otherwise become insolvent during the term
of this Agreement.
iv. The Property becomes the subject of foreclosure proceedings during the term of
this Agreement.
v. The Developer sells or otherwise conveys the Property during the term of this
Agreement.
vi. The Developer fails to carry adequate insurance on the Property to cover the
replacement cost of the completed Project.
13
vii. As signatories to this Agreement and the Note,JBP Properties, LLC and Jacob
Postin and Brooke Postin shall be guarantors for the Note and shall be jointly and
severally liable in the event of a default thereof by the Developer.
In the event the Borrower is in Default under the terms of this Promissory Note or the
Redevelopment Agreement and does not cure said default or breach on or before the thirtieth (30`h)
day after Lender gives Borrower written notice of Default thereof by personal delivery or certified
mailing, the outstanding principal amount, plus any accrued interest thereon, is immediately due to
the Lender and the Lender shall be entitled to all remedies permitted by law. Notice shall be deemed
given on the date of personal delivery or date of mailing, whichever applies. No delay or failure in
giving notice of said Default or breach shall constitute a waiver of the right of the Lender to exercise
said right in the event of a subsequent or continuing Default or breach. Furthermore,in the event of
such Default or breach, Borrower promises to reimburse Lender for all collection and/or litigation
costs incurred by the City, including reasonable attorney fees and court costs, whether judgment is
rendered or not.
As signatory to this Note, JBP Properties, LLC, Jacob Postin and Brooke Postin each
guarantee payment of this Promissory Note in the event the Borrower is in default hereof.
This Promissory Note has been entered into and shall be performed in the City of Canton,
Fulton County, Illinois, and shall be construed in accordance with the laws of the State of Illinois and
any applicable federal statutes or regulations of the United States. Any claims or disputes concerning
this Note shall, at the sole election of the Lender,be adjudicated in Fulton County, Illinois.
CITY BORROWER
CITY OF CANTON,ILLINOIS,an Illinois JBP PROPERTIES,LLC,an Illinois Limited
Municipal Corporation Liability Company
BY: BY:
Mayor Manager,JBP Properties,LLC
Date: Date:
JACOB POSTIN,individually
ATTESTED BY:
BY:
//i_ _ :ii £ I /� �� Jacob Postin
ty Clerk
Date:
Date: 40 /7-2$
BROOKE POSTIN,individually
BY:
Brooke Postin
Date:
14
EXHIBIT45
CITY OF CANTON,ILLINOIS
CANTON BUSINESS DEVELOPMENT DISTRICT (BDD)NO.1
PRIVATE PROJECT REQUEST FOR
VERIFICATION OF BDD ELIGIBLE PROJECT COSTS
by
JBP PROPERTIES,LLC AND JACOB POSTIN AND BROOKE POSTIN
(25/29 EAST SIDE SQUARE)
Date
Attention:City BDD Administrator,City of Canton,Illinois
Re: BDD Redevelopment Agreement,dated October 17,2023
by and between the City of Canton,Illinois,and JBP Properties,LLC and Jacob Postin and
Brooke Postin (collectively 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:JBP Properties,LLC and Jacob Postin and Brooke Postin
3. AMOUNTS REQUESTED TO BE DISBURSED:
Description of BDD Eligible Project Cost Amount
Total
15
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.
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: DA Eh:
REVIEWED BY JACOB&KLEIN,LTD.&THE ECONOMIC DEVELOPMENT GROUP,LTD.
BY:
TITLE: DA I'h:
16