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HomeMy WebLinkAboutOrdinance #4388 - Mayor to Make a Lease Not Exceeding Two Years with Canton Youth Organizations ORDINANCE NO. 4388 ORDINANCE AUTHORIZING THE MAYOR TO MAKE A LEASE NOT EXCEEDING TWO (2)YEARS WITH CANTON YOUTH ORGANIZATIONS WHEREAS, Section 11-71-1 of the Illinois Municipal Code grants the City of Canton (the "City") the power to authorize a municipal officer to make leases for terms not exceeding 2 years in such manner as the corporate authorities of the City may determine (See 65 ILCS 5111- 76-1); WHEREAS, the City of Canton owns the following described real property (the "Premises"): A part of the Southeast quarter of Section Nineteen (19), also a part of the Northeast quarter of the Southwest quarter of Section Nineteen (19), also a part of the Southeast Quarter, of the Northwest Quarter of Section Nineteen (19), (of Orion), Township Seven North, Range Five East of the Fourth Principal Meridian, Fulton County, State of Illinois and more particularly described as follows: Beginning at a stone at the center of Section Nineteen (19), thence North 89 degrees 19 minutes East along the North line of the Southeast Quarter of Section Nineteen (19), for a distance of 1726 feet; thence South for a distance of 1411 feet;thence South, 60 degrees West for a distance of 1368.3 feet to a concrete Monument; thence South 60 degrees West for a distance of 165.6 feet to a concrete monument, thence South, 60 degrees West to Point "A" at the water's edge of Lake Canton, Again, beginning at a stone at the center .of Section Nineteen (19); thence South 60 degrees West for a distance of 651.7 feet to a concrete monument; thence South, 60 degrees West to Point "B" at the water's edge of Lake Canton; thence in a Southernly meandering direction along the water's edge of Lake Canton to Point "A" noted above. Again, beginning at a stone at the center of Section (19) Nineteen, thence North 0 degrees 33 minutes East along the East,Line of the Northwest Quarter of Section Nineteen (19) for a distance of 203.1 feet; thence South 89 degrees 05 minutes West for a distance of 40 feet; thence South 0 degrees 33 minutes West for a distance of 226.2 feet more or less to Point "C" on the'line running fr.om the center of Section Nineteen(19)to Point "B" at the water's edge of Lake Canton; thence North 60 degrees East to the Place of Beginning, all of the above being 73.42 acres more or less, EXCEPT the subdivision known as "Lake Breeze Addition". Common Address: 26400 N.Youth Acres Road,Canton,IL 61520 P.I.N.: 10-09-19-100-803 f WHEREAS, the corporate authorities of the City of Canton has determined that the best interests of the City of Canton and its residents will be served by the approval of a lease to Canton Youth Organizations ("Youth Acres") for a period not exceeding two (2)years. NOW,THEREFORE,BE IT ORDAINED by the City Council of the City of Canton, Fulton County,Illinois, as follows: 1. The City Council finds as facts the recitals hereinabove set forth. 2. The Mayor is hereby authorized to make and execute a lease (the "Lease") for the Premises with Canton Youth Organizations ("Youth Acres")not exceeding two (2)years, as well as such other documents as may be necessary to the conveyance herein authorized. In no event shall the term of the Lease extend beyond December 31, 2024, and the Mayor is hereby expressly authorized to make the term retroactive to January 1, 2023. The annual rent shall be no less than One Dollar($1.00)per year. 3. The form of the Lease shall be substantially in the form as attached hereto as "Exhibit A," and the Mayor may make any revisions he deems necessary, subject to the requirements of Section 2 above. 4. This ordinance shall be in full force and effect from and after its passage, by a vote of at least three fourths of the corporate authorities now holding office, and approval in the manner provided by law. PASSED: January 16, 2024 AYES: Alderpersons Grimm,Nelson,Lovell, Hale, Gossett, Ketcham,Lingenfelter NAPES:None ABSENT: Alderperson Chamberlin APPROVED: January 16,2024 APPROVED: 4 w� 1,10 Kent A. McDowell, ATTEST: Brea J. mith-Walters, City Clerk LEASE AGREEMENT The City of Canton, an Illinois municipal corporation ("City") makes this Lease Agreement ("Lease") with Canton Youth Organizations, an Illinois not-for-profit corporation (a/k/a Youth Acres) ("Lessee") on the_16th day of January, 2024. The City, as part of its municipal water supply, has a large artificial lake called Lake Canton (also referred to herein as the"lake"). The City has shoreline property; however, it must protect the lake from pollution, undue erosion, and,other injury which it can do best if it owns and ultimately controls the land but leases under terms and conditions which will protect the lake. In consideration of the terms and conditions set forth herein, the City and Lessee agree as follows: 1. DESCRIPTION: The real property leased to Lessee under this Lease (hereinafter the "Leased Property" or the "Property") is described as follows: A part of the Southeast quarter of Section Nineteen (19), also a part of the Northeast quarter of the Southwest quarter of Section Nineteen (19), also a part of the Southeast Quarter, of the Northwest Quarter of Section Nineteen (19), (of Orion), Township Seven North, Range Five East of the Fourth Principal Meridian, Fulton County, State of Illinois and more particularly described as follows: Beginning at a stone at the center of Section Nineteen (19), thence North 89 degrees 19 minutes East along the North line of the Southeast Quarter of Section Nineteen (19), for a distance of 1726 feet; thence South for a distance of 1411 feet;thence South, 60 degrees West for a distance of 1368.3 feet to a concrete Monument; thence South 60 degrees West for a distance of 165.6 feet to a concrete monument, thence South, 60 degrees West to Point "A" at the water's edge of Lake Canton, Again, beginning at a stone at the center .of Section Nineteen (19); thence South 60 degrees West for a distance of 651.7 feet to a concrete monument; thence South, 60 degrees West to Point "B" at the water's edge of Lake Canton; thence in a Southernly meandering direction along the water's edge of Lake Canton to Point "A" noted above. Again, beginning at a stone at the center of Section (19) Nineteen, thence North 0 degrees 33 minutes East along the East Line of the Northwest Quarter of Section Nineteen (19) for a distance of 203.1 feet; thence South 89 degrees 05 minutes West for a distance of 40 feet; thence South 0 degrees 33 minutes West for a distance of 226.2 feet more or less to Point "C" on the line running from the center of Section Nineteen(19)to Point "B" at the water's edge of Lake Canton; thence North 60 degrees East to the Place of Beginning, all of the above being 73.42 acres more or less, EXCEPT the subdivision known as "Lake Breeze Addition". Common Address: 26400 N. Youth Acres Road, Canton, IL 61520 P.I.N.: 10-09-19-100-803 2. TERM: The term of this Lease shall be for a period of two (2) years, retroactive to January 1, 2023 through December 31, 2024, unless terminated sooner according to the terms and conditions contained herein. 3. USE: Lessee shall use the Leased Property for recreational purposes for youth only. Lessee may not use the Leased Property for any other uses or purposes, without the written consent of the City.'At all times, Lessee must take reasonable and legal steps to protect the lake from pollution;undue erosion, and other injury. 4. RENT: Lessee shall pay rent to the City a sum of One and 00/100 Dollars ($1.00) per year, due on or before the first (1'� day of May, each year this Lease is in effect. To secure the payment of rent and other agreements in this Lease the City shall have the superior lien (inferior only to mechanic's liens) on all improvements on the Leased Property in addition to any other liens and remedies it may have at law. At the option of the City, its lien may be enforced in equity or by distress or by foreclosure sale. 5. MORTGAGE: Neither the leasehold interest granted hereby nor the Leased Property or any improvements located thereon may be mortgaged, pledged, or otherwise used as security by Lessee. 6. TAXES: Lessee shall be solely responsible and pay all taxes and assessments on the Leased Property and its improvements before they become delinquent for any years during which this Lease is or was in effect. Failure to pay such taxes by their due date shall be deemed a default of this Lease and Lessee shall be responsible for any and all late fees, assessments, penalties, interest, and/or other charges related thereto. 7. UTILITIES: Lessee shall be solely responsible for an pay all charges for water, garbage removal, electricity, telephone, cable, satellite/tv, internet, fiber, gas, wastewater treatment and/or disposal, or other service for the Leased Property (collectively "utilities"). Failure to pay such utilities shall be deemed a default of this Lease. Lessee shall also be responsible for the installation, maintenance, removal and/or repair of any water lines, sewer lines, wastewater treatment and/or disposal, private sewage disposal systems, electricity/power lines, intemet/telephone/tv connections, fiber lines, gas lines, or other utility connections located upon the Leased Property. 2 8. BUILDINGS: Before commencing any new construction, Lessee must submit all necessary plans, as determined in the City's sole discretion, showing plumbing and sewage disposal, location on lot, etc. to the City and obtain written approval (i.e. building permit, if required) from the City. Lessee must additionally obtain written approval (i.e. a building permit, if required) from Fulton County. If Lessee commences any such construction without such approvals, the City may remove Lessee's improvements and charge Lessee for the removal. No one else's lien may attach to any improvement built without the City's written approval. Any buildings or structures located upon the Leased Property upon the termination of this Lease, shall be the property of the City. Lessee may place on the Leased Property items such as a garage, dock, boat lift or other related structure. If said garage, dock,boat lift or other related structure is found in disrepair, Lessee has thirty (30) days after notice from the City to either correct the defective conditions of said garage, dock, boat lift or other related structure or remove and replace them. If the garage, dock, boat lift or other related structure is replaced, whatever has been removed shall properly be disposed of in accordance with all applicable laws, rules and regulations. Repair and/or removal and replacement shall be at the sole expense of Lessee. If Lessee fails to correct the defective condition within the thirty (30) day period,the City reserves the right to take any remedial action necessary to correct the condition, including demolishing the garage, dock, boat lift or other related structure and disposing of same. The City shall be reimbursed by Lessee for any and all costs associated with the City's required remedial action, whether City engages in the corrective work or demolition work itself or hires a third parry to engage in same. Lessee shall follow all ordinances, rules and regulations adopted by the City Council of the City of Canton, Illinois, as they may be amended from time-to-time and applicable to Lake Canton and/or the Leased Property. Failure to comply with said ordinances, rules, and regulations may be deemed a default of this Lease. 9. PRIVATE SEWAGE DISPOSAL SYSTEMS: Private sewage disposal systems shall be permitted, installed, maintained and replaced in accordance with the rules and regulations as prescribed by the Illinois Department of Public Health, Fulton County Health Department, Illinois Environmental Protection Agency and U.S. Environmental Protection Agency. Private sewage disposal systems shall be inspected, at the cost of the Lessee, for proper operation and sludge levels at the time of Lease renewal or transfer of Lease. Documentation from the inspection shall be submitted to the City within five (5) days of the inspection completion. Private sewage disposal systems shall have tanks pumped for solids removal by a licensed tank cleaning company every three (3) years. Documentation from the tank cleaning company verifying their work has been completed shall be submitted to the City within five (5) days of completion of their work. The systems shall be inspected by the Fulton County Health Department every ten(10)years. Documentation of completion of said inspections by the Fulton County Health Department shall be provided to the City within five (5) days of completion of their inspection. The systems utilizing aeriation equipment in conjunction with disinfection tanks shall have proper disinfection chemicals installed and must be functional at all times. Discharges from private sewage disposal systems shall not cause erosion issues or contribute to soil migration and those found to cause these issues must be replaced by Lessee at Lessee's expense. 3 If Lessee's private sewage disposal system is found in disrepair, Lessee has thirty (30) days to either correct the defective conditions of said system or remove and replace said system. If the system is replaced'it shall properly be disposed of in accordance with all applicable laws, rules and regulations. Repair and/or removal and replacement shall be at the sole expense of Lessee. If Lessee fails to correct the defective condition within the thirty (30) day period, the City reserves the right to take any remedial action necessary to correct the condition and dispose of the system. The City shall be reimbursed by Lessee for any and all costs associated with the City's required remedial action, whether City engages in the corrective work itself or hires a third party to engage in same. 10. INDEMNITY AND INSURANCE: Lessee hereby agrees to indemnify and hold harmless City from and against any and all claims, actions, damages (but not indirect, consequential or punitive damages), liability and expense, including but not limited to reasonable attorneys' fees, that arise from or in connection with (i) Lessee's possession, use, occupation, management, repair, maintenance or control of the Leased Property, or any portion thereof(including, without limitation, any accident or other occurrence on or about the Leased Property causing injury to any person or property whomsoever or whatsoever), (ii) any of the Lessee's representations and/or warranties set forth herein being false, (iii) Lessee's default under the terms of this Lease or (iv) the negligence or willful misconduct of Lessee or its guests, invitees, agents, employees or contractors. Lessee shall, at its own cost and expense, defend against any and all actions that may be brought against City with respect to the foregoing. Lessee shall pay, satisfy and discharge any and all judgments, orders and decrees that may be recovered against City in connection with the foregoing. Notwithstanding anything herein to the contrary, Lessee's obligation to indemnify and hold City harmless shall not apply to claims, actions, damages, liabilities, or expenses resulting from the negligent or wrongful acts of City, its agents, contractors, employees, servants, lessees, or concessionaires or to any claim arising from events occurring in any common areas not part of the Premises except to the extent resulting from the negligent or wrongful acts of Lessee, its agents, contractors, employees, servants, lessees, or concessionaires. For the avoidance of doubt, City and Lessee each waive any right to seek or recover punitive, special, indirect or consequential damages from the other party. Lessee shall obtain insurance on any improvements located on the Leased Property and shall be responsible for all necessary liability or casualty insurance for the Leased Property. The City shall not be liable for any damage to Lessee's property or the Leased Property, and the Lessee releases and holds the City harmless from same. Grantee shall, at its expense, be responsible for maintaining such insurance coverages adequate coverage to cover any personal injuries or accidents that could reasonably be expected as a direct result of the Lessee's (or its guests', invitees', employees', agents', or contractors') use of the Leased Property. At a minimum, at all times during which Grantee is conducting any activities on the Leased Property and at all times during the Term of this Lease, Grantee shall maintain in effect: (i) Commercial General Liability Insurance, including bodily injury and property damage coverage with minimum limits of $1 Million Dollars per occurrence and $2 Million Dollars aggregate, (ii) Employer's Liability Insurance with minimum limits of $500,000 Dollars per occurrence, (iii) Auto Liability with minimum limits of $500,000 Dollars per occurrence, (iv) Worker's Compensation insurance with statutory limits; and (v) Umbrella Liability Insurance with minimum limits of$5 Million Dollars per occurrence and$5 Million Dollars aggregate. The City shall be an additional insured on any said policies. The Lessee shall provide proof of said 4 insurance upon the execution of the Lease and upon demand by the City after the execution of this Lease. 11. WATER LEVEL: It is understood that the City will not be responsible for maintaining any certain lake level and will not be responsible for damage caused to Lessee's improvements or other property of Lessee by the action of the waters. The City reserves the right to raise/lower the water levels of Lake Canton, and the City shall not be responsible for damage caused to Lessee's improvements or other property of Lessee by said raising/lowering of the water levels of Lake Canton. 12. GENERAL REGULATIONS: Lessee will: a. Keep the Leased Property neat and clean and free from noxious weeds and debris. Also, Lessee will maintain the improvements in good repair; b. Install and maintain such facilities for the disposal of sewage, solid or liquid waste as may be required by the City, Fulton County Health Department, State Department of Public Health or other public authority for sanitation and public health. If sewer connections are available and the City so orders, Lessee will connect to the sewer. In no instance will Lessee allow sewage to enter the lake from the Leased Property; c. Care for and protect from injury all shade and ornamental trees, shrubbery, and sod and Lessee will not remove, trim, or permit the removal or trimming of any trees more than three inches in diameter without the consent of the City; d. Not permit any of the Leased Property to be denuded of vegetation or to be cultivated in such manner as to cause or permit soil erosion. Further, Lessee agree to maintain the shoreline in good condition; e. Exclude the general public from the Leased Property and from that part of the lake within 25 feet of the shoreline of the Leased Property (except as to navigation); f. Obey all rules, regulations, and ordinances of the City pertaining to leased lots, the lake and surrounding lands and will not allow violations by Lessee's family, Lessee's guests or any other person on the Leased Property; g. Not permit on or near our lot anything in violation of any law — State, Federal, or municipal — or the regulations of any public authority, nor use or permit the premises to be used for any immoral or illegal purposes; h. Not cause nor permit any objectionable noise or odor to be emitted from the Leased Property; nor will Lessee keep on the Leased Property any domestic livestock,poultry, or noisy or dangerous dog; i. Not do nor permit anything to be done or remain on the Leased Property or in or on the lake in any way tending to pollute the waters or to create a nuisance or disturb the peace or quiet of the neighborhood or annoy any occupant of neighboring property; 5 j. Not allow yard waste including grass clippings, leaves or like material to enter the lake from the Leased Property; k. Not use herbicides nor insecticides near the water of the lake nor anywhere rain may wash these chemicals into the lake except with the written permission of the Water Superintendent of the City; 1. Not extend any structure into the lake such a dock, boat lift or any other structure more than fifteen feet(15') from the normal shoreline without express consent of the City. The "normal shoreline" is determined when the water level is even with the top of the spillway. Lessee will not install any separate structure such as a fence, post, etc. below the normal water surface. 13. TRANSFER: Lessee may not mortgage, sublease, assign or transfer this Lease, or any interest in or part thereof, without the consent of the City. This Lease may not be transferred by a mortgagee, receiver, trustee in bankruptcy or other representative of Lessee nor may it be transferred by operation of law, legal process or any other means whatsoever without the written consent of the City, which consent will not be unreasonably withheld. No part of the leased premises may be used by any person other than the Lessee, and its invitees, guests, agents, employees and contractors,without written consent of the City. Lessee understands and agrees that the annual rent may be adjusted upon transfer. Should Lessee desire to assign or transfer this Lease to any other person, Lessee shall first give written notice to the City with the name of the proposed transferee. No transfer shall be effective unless notice is given to the City, the City approves of the transfer/assignment, a new lease is prepared by the City and the new lease, when signed, is filed with the Fulton County Recorder. 14. VOLUNTARY CANCELLATION: Lessee may surrender this Lease if Lessee has fully performed Lessee's duties and thus be relieved of any further obligation under this Lease. 15. RESERVED RIGHTS OF CITY: a. Lessee understands that the City requires exclusive use of the Leased Property for any public purpose, which is inconsistent with Lessee's occupancy of it, the City may terminate this Lease by giving six months written notice to Lessee of its intention and paying Lessee for the value of Lessee's improvements. If the City exercises its rights hereunder, it shall pay to Lessee an amount equal to the value of the premises which shall not exceed the fair market value of the premises. In the event that the City and Lessee cannot agree as to the fair market value of the premises, each shall select a qualified professional real estate appraiser, and the appraisers so selected shall select a third qualified professional real estate appraiser, and the fair market value of the premises shall be the average of the highest and lowest appraisals submitted by these three appraisers. b. Representatives of the City may come upon the Leased Property as follows: 6 (1) At any and all times for the purpose of inspecting. (2) At any time to gain needed access to other land. (3) To plant and care for trees and other vegetation. (4) To construct, operate and maintain sewer, water and gas pipes, electrical lines and pipes and lines for other services and their appurtenances. (5) To improve and protect the shoreline. (6)To do any other work necessary to maintain the lake or its structures. c. The City is hereby released and held harmless from any and all damages, costs, expenses, liabilities, causes of action, or suits arising from or related to the exercising of any of its rights under this Section 15, including but not limited to the entering upon the Leased Property for any of the above reasons. 16. DEFAULT: Lessee understands that the City may, at its option,terminate this Lease: a. If Lessee fails to perform Lessee's duties under this Lease, or is otherwise in default of this Lease as set forth elsewhere in this Lease, and fail to remedy the non-performance or other default after sixty (60) days written notice from the City; b. If Lessee or its invitees, guests, agents, employees, or contractors violate any ordinance of the City on the Leased Property; c. If Lessee permits or causes any illegal activities or use of illegal drug on the Leased Property; d. If Lessee abandons the Leased Property; e. If Lessee is dissolved as a not-for-profit corporation; f. In the event of insolvency of Lessee, the appointment of a receiver for any part of Lessee's property, any assignment for the benefit of creditors, any bankruptcy or insolvency laws by or against Lessee; g. Upon commencement of foreclosure or forfeiture proceedings against Lessee, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Lessee or by any governmental agency against any collateral securing the loan. This includes a garnishment of any of Grantor's accounts. However, this provision shall not apply if there is a good faith dispute by Grantor as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Lessee gives the City written notice of the creditor or forfeiture proceeding and deposits with City monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by the City, in its sole discretion, as being an adequate reserve or bond for the dispute; 7 h. Any warranty, representation or statement made or furnished to City by Lessee or on Lessee's behalf under or in relation to this Lease (or the related documents) is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter; i. If Lessee fails to vacate at the end of the Lease term; j. If the Lease has been transferred other than in accordance with the provisions in paragraph 13. Upon termination, the City may without further demand or notice, enter and take possession of the premises and expel Lessee or anyone else found there without being guilty of forcible entry of trespass and without liability for loss or damage. All buildings and other improvements at the option of the City may become the City's property in full settlement as liquidated damages. The City may take any and all actions available at law or in equity to enforce the terms and conditions of this Lease. In the event the City must enforce the terms and conditions of this Lease, then the Lessee shall be responsible for all reasonable attorney's fees and court costs incurred by the City in relation said enforcement. 17. TERMINATION OF PRIOR LEASE: The Lessee unconditionally releases, indemnifies, holds harmless, acquits, and forever discharges the City, as well as any of its predecessors, successors, and assigns, present and former parents, subsidiaries, elected officials, mayors, city clerks, treasurers, members of City Council, department heads, sextons, affiliates, investors, officers, directors, trustees, shareholders, employees, former employees, independent contractors, agents, representatives, heirs, estates, executors, administrators, attorneys, and/or insurers, all collectively referred to as "Releasees," and each of them, from any and all charges, complaints, claims, promises, agreements, controversies, suits, demands, costs, losses, debts, actions, causes of action, damages,judgments, obligations, liabilities, and expenses of whatever kind and character, known or unknown, suspected or unsuspected, including any claims for attorneys' fees and costs, which the undersigned parties, now have, own, hold, or claim to have, own, or hold, or may have had, owned, or held, or may in the future claim to have, own, or hold against the Releasees, or any of them, arising from, in connection with or related to any prior lease related to the Leased Property, including but not limited to the Lakeshore Lease recorded in the Land Records of Fulton County, Illinois as Document No. 99-94884. [SIGNATURE PAGE TO FOLLOW] 8 [SIGNATURE PAGE TO LEASE AGREEMENT BETWEEN THE CITY OF CANTON AND CANTON YOUTH ORGANIZATIONS,DATED JANUARY ,20241 LESSEE: Canton Youth Organizations By: Its: STATE OF ILLINOIS, ) ss. COUNTY OF FULTON ) I, the undersigned, a Notary Public in and for said County in the State aforesaid, do hereby certify that Dusty and Anne Grzanich, personally known to me to be the same person(s) whose name(s) are subscribed to the foregoing instrument, appeared before me this day in person and severally acknowledged that he signed, sealed, and delivered the said instrument as his free and voluntary act for the uses and purposes therein set forth. Given under my hand and notarial seal,this day of , 2021. Notary Public CITY OF CANTON, ILLINOIS By: Kent . McDowell,Mayo Attest: Z drea J. mith-Walters, City Clerk STATE OF ILLINOIS, ) ) ss. COUNTY OF FULTON ) I, the undersigned, a Notary Public in and for said County in the State aforesaid, do hereby certify that Kent A. McDowell, Mayor and Andrea J. Smith-Walters, City Clerk, of the City of Canton, Illinois, personally known to me to be the same persons and such officers, respectively, whose names are subscribed to the foregoing instrument, appeared before me this day in person and severally acknowledged that they signed, sealed and delivered the said instrument as the free and voluntary act of the said City, for the uses and purposes therein set forth, pursuant to due authority conferred by its Council. Given under my hand and notarial seal,this day of 52024. Notary Public 9 Send tax notice to: Canton Youth Organizations 26400 N. Youth Acres Road P.O. Box 443 Canton, IL 61520 This instrument prepared by and return to: City of Canton ATTN: City Attorney 2 N. Main Street Canton, IL 61520 Telephone (309) 647-0065 10