HomeMy WebLinkAboutOrdinance #4413 - Redvelopment Agreement between The City of Canton and 309 Developments, Jedediah Rhoades, Max Kumer, and Spoon River Rentals 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
16TH DAY OF DULY, 2024, ADOPTED ORDINANCE NO. 4413, A TRUE AND CORRECT
COPY OF WHICH IS CONTAINED IN THIS PAMPHLET.
GIVEN UNDER MY HAND AND SEAL THIS 16TH DAY OF DULY,2024.
(SEAL)
DI S TH-WALTERS
CITY CLERK
CITY OF CANTON, ILLINOIS
ORDINANCE NO. 4 413
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF THE SECOND AMENDMENT TO THE
CANTON 2-RT. 9/CHESTNUT STREET II
TAX INCREMENT FINANCING(TIF)DISTRICT
REDEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF CANTON,FULTON COUNTY,ILLINOIS
AND
309 DEVELOPMENTS,LLC
AND
JEDEDL H RHOADES
AND
MAX KUMER
AND
SPOON RIVER RENTALS,LLC
PASSED BY THE CITY COUNCIL
OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS,
ON THE 16TH DAY OF JULY,2024.
PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY
COUNCIL OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS,
THIS 16TH DAY OF JULY,2024.
EFFECTIVE: JULY 16,2024
ORDINANCE NO. 4413
CITY OF CANTON,ILLINOIS
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF THE SECOND AMENDMENT TO THE
CANTON 2—RT. 9/CHESTNUT STREET
TAX INCREMENT FINANCING(TIF)DISTRICT
REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON
and i
309 DEVELOPMENTS,LLC
and
JEDEDIAH RHOADES
and
MAX KUMER
and
SPOON RIVER RENTALS,LLC
WHEREAS, the Mayor and City Council of the City of Canton, Fulton County, Illinois,
an Illinois Municipal Corporation (the "City"),have hereby determined that the Second Amendment
to the Canton 2-Rt 9/Chestnut Street Tax Increment Financing (TIF) District Redevelopment
Agreement by and between the City of Canton and 309 Developments, LLC., an Illinois Limited
Liability Company, and Jedediah Rhoades and Max Kumer and Spoon River Rentals, LLC, an
Illinois Limited Liability Company (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 Board of the City of Canton,
Illinois,in the County of Fulton,as follows:
1. The Second Amendment to the Canton 2-Rt.. 9/Chestnut Street Tax Increment Financing
(TIF) District Redevelopment Agreement (the "Second Amendment") 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 Second Amendment to the 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 Redevelopment Agreement shall be effective the date of its
approval on the 16'day of July,2024.
4. This Ordinance shall be in full force and effect from and after its passage and approval as
required by law.
(The remainder of thispage is intentionally left blank.)
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PASSED, APPROVED AND ADOPTED by the Corporate Authorities of the City of Canton,
Fulton County,Illinois,on the 16`'day of July,2024,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 Lingenfeltex
Andra Chamberlin
Patrick Ketcham
Ralph Grimm i!
Greg Gossett ;I
Justin Nelson
John Lovell
Angela Hale
Kent A.McDowell,Mayor
TOTAL VOTES 7
APPROVED: I ueO , Date:_74 /2024
Kent A. McDowell,Mayor,-City of Canton
ATTEST: r — Date: /1�/2023
ndi Walters-Smith, City Clerk, City of Canton
ATTACHMENT:
EXHIBIT A. Second Amendment to the City of Canton, Illinois Business Development District
No. 1 Redevelopment Agreement by and between the City of Canton and 309 Developments,LLC.,
and Jedediah Rhoades and Max Kumer and Spoon River Rentals,LLC.
3
EXHIBIT A
CITY OF CANTON, ILLINOIS
SECOND AMENDMENT TO THE
CANTON 2—RT. 9/CHESTNUT STREET
TAX INCREMENT FINANCING(TIF) DISTRICT
REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON
and
309 DEVELOPMENTS, LLC
and
JEDEDIAH RHOADES
and
MAX KUMER
and
SPOON RIVER RENTALS, LLC
I�
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CITY OF CANTON, ILLINOIS
SECOND AMENDMENT TO THE
CANTON 2-RT. 9/CHESTNUT STREET
TAX INCREMENT FINANCING (TIF) DISTRICT
REDEVELOPMENT AGREEMENT
by and between
i
CITY OF CANTON, ILLINOIS
and
309 DEVELOPMENTS, LLC
and
JEDEDIAH RHOADES
and
MAX KUMER
and
SPOON RIVER RENTALS, LLC
JULY 16, 2024
CITY OF CANTON, ILLINOIS
SECOND AMENDMENT TO THE
CANTON 2—RT. 9/CHESTNUT STREET
TAX INCREMENT FINANCING (TIF) DISTRICT
REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON
and
309 DEVELOPMENTS,LLC
and
JEDEDIAH RHOADES
and
MAX KUMER
and
SPOON RIVER RENTALS,LLC
THIS SECOND AMENDMENT TO THE CANTON 2 — RT. 9/CHESTNUT
STREET TAX INCREMENT FINANCING (TIF) DISTRICT REDEVELOPMENT
AGREEMENT by and between the CITY OF CANTON, Fulton County, Illinois, an Illinois
Municipal Corporation(the"City"),and 309 DEVELOPMENTS,LLC.,an Illinois Limited Liability
Company, and JEDEDIAH RHOADES, and MAX KUMER and SPOON RIVER RENTALS,
LLC, an Illinois Limited Liability Company (collectively the Developer") is entered into this 16`h day
of July, 2024. Hereinafter the City and the Developer, for convenience, may collectively be referred
to as the"Parties."
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 65 ILCS 5/8-1-2.5, a municipality may appropriate and expend
funds for economic development purposes, including without limitation for commercial enterprises
that are deemed necessary or desirable for the promotion of economic development within the
community;and
WHEREAS, pursuant to the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-
74.4.4 et. seq., as amended (the"TIF 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 owners for certain costs from resulting increases in real estate tax revenues;and
WHEREAS,on February 6,2021,recognizing the need to foster the development,expansion
and revitalization of certain properties which are vacant, underutilized, or undeveloped, the City
adopted Tax Increment Financing under the TIF Act, approved a Redevelopment Plan, and
designated a Redevelopment Area known as the "Canton 2—Rt. 9/Chestnut Street TIF District"
and hereinafter referred to as the "TIF District"); and
WHEREAS, said Property is also located within the City of Canton Business Development
District No. 1 Redevelopment Project Area,which was established by the City on March 15,2022, by
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Ordinance No. 4281 pursuant to the Business District Development and Redevelopment Act, 65
ILCS 5/11-74.3 et. seq. (the"BDD Act"); and
WHEREAS, pursuant to the BDD 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, on November 21,2023, the City approved Ordinance No. 4379 and the Parties
entered into a Redevelopment Agreement (the "Original Redevelopment Agreement"), wherein the
City agreed to extend incentives to 309 Developments,LLC,Jedediah Rhoades and Max Kumer for
reimbursement of certain TIF and BDD Eligible Project Costs incurred on property located at 305
W.Locust St., Canton, Illinois, (PIN 09-08-27-318-019 and the "Property");and
WHEREAS, the Developer has proceeded to acquire the Property and begin construction of
a new 32 ft. x 12 ft. building located thereon for use as a retail drive-thru coffee shop to be known as
Dame Fine Coffee (the "Project") and is incurring redevelopment costs for the Project pursuant to
said Original Redevelopment Agreement (the"Project");and
WHEREAS, the Parties executed a First Amendment to the Original Redevelopment
Agreement on December 5, 2023 (the"First Amendment");and
WHEREAS, the Parties agree to Amend the terms of the Original Redevelopment
Agreement as amended by the First Amendment as set forth below.
AMENDMENT
NOW, THEREFORE, for good and valuable consideration, the receipt of which is
acknowledged, the Parties agree as follows:
C. AMENDED SECTION "C. INCENTIVES"
Section C(1)(e)(v) of the Original Agreement shall be amended by replacing it, in its entirety, with the
following:
V. The Developer does not sell or otherwise convey the Property during the term of this
Agreement to any entity other than the operator of the coffee shop located thereon.
Section C(1)(e)(vii) of the Original Agreement shall be amended by replacing it, in its entirety,with the
following:
vii. As signatories to the Agreement and the Note,Jedediah Rhoades and Max Kumer
shall be guarantors of the Note and shall jointly and severally be liable in the event of a default thereof
by the Developer. In the event the obligations of the Developer set forth in this Agreement are
assigned to a subsequent entity pursuant to Section N below,the obligation of Jedediah Rhoades and
Max Kumer to be guarantors may only be assigned to another individual(s) who is a natural living
person(s).
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B. AMENDED SECTION "N.ASSIGNMENT"
Section N of the Original Redevelopment Agreement is hereby amended by adding the
following paragraph thereto:
However, the City agrees to the assignment of the rights and obligations set forth in this
Agreement to Dame Holdings,LLC provided Dame Holdings,LLC agrees to be bound by all of the
terms set forth herein..
C. PRIOR AGREEMENT TERMS APPLY
All terms of the Original Redevelopment Agreement and any Exhibits attached thereto, as
amended by the First Amendment,shall apply to this Second Amendment and remain effective unless
specifically modified by this Second Amendment to the Redevelopment Agreement.
The undersigned signatories hereby warrant full authority to both execute this Second
Amendment to the Redevelopment Agreement and to bind the entity in which they are signing on
behalf of.
This Second Amendment to the Redevelopment 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.
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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 Second Amended
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 309 DEVELOPMENTS, LLC, an Illinois
Municipal Corporation Limited C ration
i
BY: BY:
ayor I Jed h Rhoades,Manager
v� 22
Date: Date:
ATTESTED BY: JEDEDIAH RHOADES,individually
BY:
' efe *ahRhoades
ity Clerk 7,�
Date:
Date:
MAX KUMER,individually
B
Max Kutner y
Date:
SPOON RIVER RENTALS, LLC,an
Illinois Limited Liability Company
BY.
ax Kumer,Manager u
Date:
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