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HomeMy WebLinkAboutOrdinance #4396 - Redevelopment Agreement between The City of Canton and Michael Hulvey (35 S. Main St) 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 5TH DAY OF MARCH, 2024 ADOPTED ORDINANCE NO. 4396, A TRUE AND CORRECT COPY OF WHICH IS CONTAINED IN THIS PAMPHLET. GIVEN UNDER MY HAND AND SEAL THIS 5"H DAY OF MARCH,2024. (SEAL) NDREA .SMITH-WALTERS ITY CLERK CITY OF CANTON, ILLINOIS ORDINANCE NO. 4 3 9 6 AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A FIRST AMENDMENT TO THE REDEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF CANTON,FULTON COUNTY,ILLINOIS AND MICHAEL HULVEY (35 S. MAIN STREET) PASSED BY THE CITY COUNCIL OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS, ON THE 5TH DAY OF MARCH, 2024. PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY COUNCIL OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS, THIS 5m DAY OF MARCH,2024. EFFECTIVE:MARCH 5,2024 2 ORDINANCE NO. 4396 CITY OF CANTON,ILLINOIS AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A FIRST AMENDMENT TO THE BUSINESS DEVELOPMENT DISTRICT NO. 1 REDEVELOPMENT AGREEMENT by and between THE CITY OF CANTON and MICHAEL HULVEY (35 S. Main Street) WHEREAS, the Mayor and City Council of the City of Canton, Fulton County, Illinois (the "City"),have hereby determined that the First Amendment to the Business Development District No. 1 Redevelopment Agreement by and between the City of Canton and Michael Hulvey (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 First Amendment to the 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 First Amendment to the 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 May 31, 2024. 4. The First Amendment to the Business District Redevelopment Agreement shall be effective the date of its approval on the 5'day of March,2024. 5. This Ordinance shall be in full force and effect from and after its passage and approval as required by law. 3 PASSED APPROVED AND ADOPTED by the Mayor and City Council of the City of Canton this 5'day of March, 2024. MAYOR&ALDERMEN AYE VOTE NAY VOTE ABSTAIN/ABSENT Angie Lingenfelter Andra Chamberlain Patrick Ketcham Ralph Grimm X Greg Gossett X Justin Nelson John Lovell Angela Hale Kent A.McDowell,Mayor TOTAL VOTES 7 APPROVED: 9A Date /5/2024 Mayor, City of Canton ATTEST: Date: 2024 ity Cler , City of Canton ATTACHMENTS: 1. EXHIBIT A. First Amendment to the Business Development District No. 1 Redevelopment Agreement by and between the City of Canton and Michael Hulvey. 4 EXHIBIT A CITY OF CANTON, ILLINOIS FIRST AMENDMENT TO THE BUSINESS DEVELOPMENT DISTRICT NO. I REDEVELOPMENT AGREEMENT by and between CITY OF CANTON, ILLINOIS and MICHAEL HULVEY (35 S. Main Street) MARCH 5, 2024 s CITY OF CANTON, ILLINOIS FIRST AMENDMENT TO THE BUSINESS DEVELOPMENT DISTRICT NO. 1 REDEVELOPMENT AGREEMENT by and between CITY OF CANTON,ILLINOIS and MICHAEL HULVEY (35 S.Main Street) THIS FIRST AMENDMENT (including Exhibits, hereinafter referred to as the "First Amendment") is entered into this 5`' day of March, 2024, by the City of Canton (the "City'), an Illinois Municipal Corporation, Fulton County, Illinois, and Michael Hulvey, individually (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, on July 3, 2023, the Parties entered into a Business Development District No. 1 Redevelopment Agreement (the "Original Agreement") for a redevelopment project located at 35 S.Main Street,Canton,Illinois (PIN 09-08-27-415-010,the"Property");and WHEREAS, based in part on incentives made available by the City, the Developer has proceeded with plans to repair/replace an exterior window as well as renovate and rehabilitate the commercial building located on the Property at a total estimated cost of$10,000 for the operation of a professional law office (the "Project");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's proposed Project is consistent with the land uses of the City and the Business District Plan as adopted; and WHEREAS, the City has determined that this Project requires the incentives requested and 6 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, the Parties have agreed to amend the Original Agreement as set forth below. FIRST AMENDMENT A. AMENDED "PREAMBLE" The 6`'Paragraph in the Preamble in the Original Agreement shall be deleted in its entirety and replaced with the following: WHEREAS,the Developer owns property located within the Business District at 35 S.Main Street (PIN 09-08-27-415-010),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/replace an exterior window as well as renovate and rehabilitate the commercial building at a total estimated cost of$10,000 for the operation of a professional law office (the"Project");and B. AMENDED "A.PRELIMINARY STATEMENTS" Section A(3)in the Original Agreement shall be deleted in its entirety and replaced with the following: 3. The Developer agrees to complete the Project and verify eligible project costs as required in Section "E"below on or before May 31, 2024, subject to exception of Force Majeure as described in Section "I"below. C. AMENDED "E. PAYMENT OF ELIGIBLE PROJECT COSTS" Section E(1)and E(2)in the Original Agreement shall be deleted in its entirety and replaced with the following: 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 May 31, 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 May 31,2024,will not be eligible for reimbursement. a. Upon receiving written request from the Developer on or before May 31, 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 'W(1)"above. 7 D. AMENDED "I.TIME;FORCE MAJEURE" Section I in 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 the Project on or before May 31,2024,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. E. AMENDED "R. TERM OF THE AGREEMENT" Section Rin the Original Agreement shall be deleted in its entirety and replaced with the following: Notwithstanding anything in this Agreement to the contrary, this Agreement shall expire on May 31, 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. F. AMENDED "EXHIBIT 1" Exhibit 1 of the Original Agreement shall be deleted in its entirety and replaced with the attached Amended Exhibit 1. G. PRIOR AGREEMENT TERMS APPLY All terms of the Original Agreement shall apply to this First Amendment and remain effective unless specifically modified by this First Amendment to the Redevelopment Agreement. 8 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 First Amendment to the Business Development District Redevelopment 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 MICHAEL HULVEY Municipal Corporation BY BY: Mayor Michael Hulvey Date: Date: ATTESTED BY: ritylerk Date: EXHIBIT: Amended Exhibit 1. Estimated BDD Eligible Project Costs 9 AMENDED EXHIBIT 1 ESTIMATED BDD ELIGIBLE PROJECT COSTS Michael Hulvey City of Canton,Fulton County, Illinois / Canton BDD No. 1 Project Description: Developer shall repair/replace an exterior window as well as renovate and rehabilitate the commercial building located on the Property for the operation of a professional law office. Location: 35 S.Main Street, Canton,Illinois Parcel Number: 09-08-27-415-010 Estimated BDD Eligible Project Costs: Exterior repairs,renovation&rehabilitation of structures and window replacement materials &contracted labor $10,000 Total Estimated BDD Eligible Project Costs l.....................................................�1Q t 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 $2,500.00, as set forth in this Redevelopment Agreement 10 AMENDED EXHIBIT 1 ESTIMATED BDD ELIGIBLE PROJECT COSTS Michael Hulvey City of Canton, Fulton County,Illinois / Canton BDD No. 1 Project Description: Developer shall repair/replace an exterior window as well as renovate and rehabilitate the commercial building located on the Property for the operation of a professional law office. Location: 35 S.Main Street,Canton,Illinois Parcel Number: 09-08-27-415-010 Estimated BDD Eligible Project Costs: Exterior repairs,renovation&rehabilitation of structures and window replacement (materials&contracted labor)........................................................................$10,000 Total Estimated BDD Eligible Project Costs.............................................................................................. 1Q 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 $2,500.00, as set forth in this Redevelopment Agreement. 10