HomeMy WebLinkAboutOrdinance #4405 - Redevelopment Agreement between The City of Canton and Old Dog, Phillip P. Iverson (23 W. Pine 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 21ST DAY OF MAY, 2024 ADOPTED ORDINANCE NO. 4405, A TRUE AND
CORRECT COPY OF WHICH IS CONTAINED IN THIS PAMPHLET.
GIVEN UNDER MY HAND AND SEAL THIS 21ST DAY OF MAY,2024.
(SEAL)
DREA J. ALTERS-SMITH
ITY CLERK
CITY OF CANTON, ILLINOIS
ORDINANCE NO. 4 4 0 5
AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A
REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON, FULTON COUNTY, ILLINOIS
and
OLD DOG, LLC
and
PHILLIP P. IVERSON
(23 W. PINE ST.)
PASSED BY THE CITY COUNCIL
OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS,
ON THE 21 s' DAY OF MAY, 2024.
PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY
COUNCIL OF THE CITY OF CANTON,FULTON COUNTY, ILLINOIS,
THIS 21s' DAY OF MAY, 2024.
EFFECTIVE: MAY 21, 2024
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ORDINANCE NO. 4405
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
OLD DOG,LLC
and
PHILLIP P.IVERSON
(23 W. Pine St.)
WHEREAS, the Mayor and City Council of the City of Canton, Fulton County, Illinois (the
"City") previously authorized a Business Development District No. 1 Redevelopment Agreement by
and between the City of Canton and Old Dog,LLC,an Illinois Limited Liability Company,and Phillip
P. Iverson (collectively the"Developer's on October 17,2023 by Ordinance No. 4368;and
WHEREAS, said Redevelopment Agreement authorized by Ordinance No. 4368 was not
executed by the Parties;and
WHEREAS, the City now wishes to rescind Ordinance No. 4368;and
WHEREAS,the Mayor and City Council of the City of Canton have hereby determined that
the revised Canton, Illinois Business Development District No. 1 Redevelopment Agreement by and
between the City of Canton and Old Dog,LLC,an Illinois Limited Liability Company,and Phillip
P. Iverson (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. Ordinance No. 4368 is hereby rescinded.
2. The City of Canton, Illinois Business Development District No. 1 (the "Business District")
Redevelopment Agreement attached hereto as Exhibit `A"is hereby approved.
3. The Mayor is hereby authorized and directed to enter into and execute on behalf of the City
the Business District Redevelopment Agreement attached hereto and the City Clerk of the
City of Canton is hereby authorized and directed to attest such execution.
4. 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, 2025.
5. The Business District Redevelopment Agreement shall be effective the date of its approval on
the 2P`day of May,2024.
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6. This Ordinance shall be in full force and effect from and after its passage and approval as
required by law.
PASSED APPROVED AND ADOPTED by the Mayor and City Council of the City of
Canton this 21s` day of May, 2024.
MAYOR&ALDERMEN AYE VOTE NAY VOTE ABSTAIN/ABSENT
Angie Lingenfelter
Andra Chamberlin
Patrick Ketcham
Ralph Grimm
Greg Gossett
Justin Nelson
John Lovell
Angela Hale X
Kent A. McDowell,Mayor
TOTAL VOTES r I I I
APPROVED: Date D� / 3 /2024
Mayor, City of Canton
ATTEST: ,j� —h Date: 2024
#iCyle/r-Ze-, 6ty�-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 Old Dog, LLC and Phillip P. Iverson.
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EXHIBIT A
CITY OF CANTON, ILLINOIS
BUSINESS DEVELOPEMNT DISTRICT NO. I
REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON
and
OLD DOG, LLC
AND
PHILLIP P. IVERSON
(23 W. Pine St.)
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CITY OF CANTON, ILLINOIS
BUSINESS DEVELOPMENT DISTRICT NO. 1 REDEVELOPMENT
AGREEMENT
by and between
CITY OF CANTON, ILLINOIS
and
OLD DOG, LLC
and
PHILLIP P. IVERSON
(23 W. Pine St.)
MAY 21, 2024
CITY OF CANTON,ILLINOIS
BUSINESS DEVELOPMENT DISTRICT NO. 1
REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON,ILLINOIS
and
OLD DOG, LLC
and
PHILLIP P. IVERSON
(23 W. Pine St.)
THIS AGREEMENT (including Exhibits, hereinafter referred to as the "Agreement's is
entered into this 21" day of May, 2024, by the City of Canton (the "City', an Illinois Municipal
Corporation,Fulton County,Illinois,and Old Dog,LLC,an Illinois Limited Liability Company,and
Phillip P. Iverson,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, 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 currently leases property located within the Business District at
23 W.Pine St. (PIN 09-08-27-414-029 and PIN 09-08-27-414-024),which is hereinafter referred to
as the "Property;" and based in part on incentives made available by the City, the Developer shall
complete exterior and interior repairs,renovation and rehabilitation of the building located thereon at
a total estimated cost of$1,039,509 for the commercial operation of Old Dog, LLC Eatery,Winery,
Brewery&Distillery (the"Project';and
WHEREAS, as an incentive to undertake the Project, the Developer has requested
reimbursement for a portion of its BDD Eligible Costs as described in Exhibit "I"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
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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 ( as set forth in Exhibit "I"attached hereto and verified pursuant to
Section "B"below) of an amount not to exceed One Hundred Fifty Thousand and 00/100
Dollars ($150,000.00) to be paid from the Canton BDD No. 1 Special Tax Allocation Fund as
specified below in Section C,Incentives,and
WHEREAS, to the extent the Developer sufficiently incurs BDD Project Costs as set forth
in Exhibit "1"attached hereto and verified pursuant to Section "E"below, the City shall also
annually reimburse the Developer Twenty-Five Percent (25%) of the annual Business District
Revenues generated by the Developer's Project which is located on the Property during calendar years
2024 through the end of the Business District in calendar year 2045,or up to a cumulative additional
reimbursement not to exceed Fifty Thousand and 00/100 Dollars ($50,000.00),whichever occurs
first; and
WHEREAS, in no event shall cumulative maximum reimbursements for the Developer's
BDD Eligible Project Costs under this Agreement exceed Two Hundred Thousand and 00/100
Dollars ($200,000.00);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 City's One Percent(19/6) 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"I"attached hereto.
3. The Developer shall remain in compliance with all municipal ordinances relating to property
development,property condition,zoning,subdivision and building codes. Failure to cure the
violation of any such ordinance within thirty (30) days upon being provided written notice of
the same by the City shall be cause for the City to declare the Developer in Default and
unilaterally terminate this Agreement, except where such failure is not reasonably susceptible
to cure within such 30-day period,in which case the Developer shall have such additional time
to cure as is reasonably necessary, provided that the Developer has commenced such cure
within such 30-day period and continues to diligently prosecute the same to completion.
4. The Developer agrees to complete the Project and verify eligible project costs as required in
Section "E"below on or before April 30, 2025, subject to exception of Force Majeure as
described in Section "I"below.
5. 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.
6. 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 City as set forth in
Exhibit"3"attached hereto, the City agrees to loan to the Developer(also,the"Borrower'
the sum of One Hundred Fifty Thousand and 00/100 Dollars ($150,000.00) from the
Canton BDD No. 1 Special Tax Allocation Fund to assist the Developer with the rehabilitation
and renovations of the Property and related BDD eligible project costs. The terms and
conditions for the loan shall be as follows:
a. The full Loan amount of$150,000.00 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 Six Hundred Fifty
Thousand Dollars and 00/100 ($650,000.00) of BDD Eligible Project Costs pursuant
to Section "E"below,whichever occurs later.
b. A separate Promissory Note is attached hereto as Exhibit "Y"
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c. The interest rate for the note shall be Three Percent(31/6) 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 ten (10) years from the date the loan funds are
disbursed to the Developer hereunder.
e. One-tenth (1/10) 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:
i. The Developer shall maintain constant and continuous operation of Old Dog,
LLC Eatery, Winery, Brewery & Distillery located on 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. Upon future acquisition of the Property or any portion thereof by the
Developer, the Property shall not become the subject of foreclosure
proceedings during the term of this Agreement.
v. Upon future acquisition of the Property or any portion thereof by the
Developer, the Developer does not sell or otherwise convey the Property
during the term of this Agreement.
vi. The Developer shall verify adequate property insurance on the Property is
maintained during the term of the loan to cover the replacement cost of the
completed Project.
vii. As signatories to this Agreement and the Note,Old Dog,LLC,and Phillip P.
Iverson shall be guarantors for the Note and shall be jointly and severally liable
in the event of a default thereof by the Developer.
2. The City shall also reimburse the Developer for its other BDD Eligible Project Costs,which
have been verified pursuant to Section "E"below, Twenty-Five Percent (25%) of the
annual Business District Revenues generated by the Developer's Project which is located on
the Property during calendar years 2024 through the end of the Business District in calendar
year 2045,or until the Developer has received a cumulative amount of Fifty Thousand and
00/100 Dollars ($50,000.00),whichever occurs first.
a. Any payments determined to be due under this Section shall be reduced by the amount
of any and all collection fees imposed upon the City by the State of Illinois or the
Illinois Department of Revenue for collection of the Business District Revenues.
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Payment shall be accompanied by a statement executed by the City Treasurer or other
appropriate official or officer, setting forth the calculation of such payment.
i. The reimbursement of Business District Revenue provided for hereunder shall
be made annually from the Business District Revenue received by the City and
solely from the Developer's Project generated during the calendar year.
3. In no event shall the total cumulative reimbursements provided for in Paragraphs 1 and 2 above
exceed, in the aggregate, Two Hundred Thousand and 00/100 Dollars ($200,000.00).
Such funds shall be allocated to and when collected shall be received by the City Treasurer for
deposit in a separate account within the Special Tax Allocation Fund for the Business District
designated as the Old Dog, LLC Special Account ("Special Account' and then paid to the
Developer as set forth in this Agreement.
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 Two Hundred Thousand and 00/100 Dollars
($200,000.00) 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.
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, 2025. 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 30,2025,will not be eligible for reimbursement.
a. upon receiving written request from the Developer on or before April 30, 2025, the
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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's 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 to be paid solely from the Canton BDD No. 1 Special Tax Allocation Fund. 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',
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
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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, 2025, 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
Developer shall not assign this Agreement(including,but not limited to,the right to payments
contemplated by Section `B"of this Agreement) except as provided in this Section. Developer may
assign this Agreement (including,but not limited to,the right to payments contemplated by Section
`B"of this Agreement) only in its entirety to any entity,successor or assignee of Developer provided
that such entity,successor, or assignee agrees to continue the Old Dog Eatery, Winery, Brewery, Distillery
business(or similar business as approved by the Mayor)located on the Property,and further provided
that such entity,successor or assignee agrees to continue performing all of the obligations set forth in
this Agreement. Furthermore,in the event of any such assignment to an entity other than a natural
person, such assignment shall be accompanied by the personal guarantee of an individual. The
Developer shall give prompt notice to City of any such assignment, and the City agrees to not
unreasonably withhold approval of any such assignment, provided that the terms and conditions of
this Section are met and Developer is not otherwise in default of this Agreement. The Mayor shall
have the authority to execute and approve such assignment provided the conditions precedent to such
assignment are present.
IL PREPAYMENTS
Should the annual BDD Revenue generated by the Project be sufficient to pay all the
Developer's BDD Eligible Project Costs prior to the expiration of the term of this Agreement, City
may,in its sole discretion,elect to pay all or a portion of the then remaining future reimbursements in
a single lump sum payment.
L.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
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deemed to constitute a waiver of other rights and remedies provided said Party pursuant to this
Agreement.
M. SEVERABILITY
If any section, subsection, term or provision of this Agreement or the application thereof to
any Parry 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
circumstances other than those to which it is held invalid or unenforceable, shall not be affected
thereby.
N. 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 )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 Old Do LLC
`/o City Clerk g'
23 W. Pine St.
2 N.Main Street
Canton,Illinois 61520 Canton,IL 61520
Ph: (309) 647-0065 Ph: (217) 841-1450
With copy to City B D D Administrator. Phillip P. Iverson
P.O. Box 397
Jacob&Klein,Ltd. and Canton,IL 61520
The Economic Development Group,Ltd. Ph: (217) 841-1450
1701 Clearwater Avenue
Bloomington, Illinois 61704 With copy to:
Ph: (309) 664-7777 Ronald Weber,Attorney
Froehling Weber&Schell,LLP
167 W. Elm St.
Canton,IL 61520
Ph: (309) 647-6317
O. SUCCESSORS IN INTEREST
Subject to the provisions of Section "j"above, this Agreement shall be binding upon and
inure to the benefit of the Parties hereto and their respective successors and assigns.
P.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.
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Q. 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.
R. 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.
S. TERM OF THE AGREEMENT
Notwithstanding anything in this Agreement to the contrary, this Agreement shall expire on
April 30, 2025, 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.
T. ILLINOIS PREVAILING WAGE ACT
It is the understanding of the Parties that the position of the Illinois Department of Labor(the
"Department's 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
"indemnified 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, deternunation, 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.
U. OTHER GENERAL PROVISIONS
1. Titles of Paragratihs: 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. Amendments to this Agreement. Developer and the City agree that they may amend this
Agreement at any time by their mutual consent which amendment must be in writing and
executed by the Parties.
'See online: his://hbor.illinois�i<y
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3. 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.
4. 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.
5. 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
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 OLD DOG, LLC,an Illinois Limited Liability
Municipal Corporation Company
k'4 or ^ �,) Philip . Iverson,Manager
Date p�- '( Q
Date: 2, Z Z(
ATTESTED BY:
PHILLIP P. IVERSON,individually
T �
ry Clerk
Date: S 23 Z BY: f'i— � ,�.-✓
Phillip P. Iverson
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Date:
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 Old Dog, LLC, and Phillip P. Iverson.
Exhibit 3. Promissory Note.
Exhibit 4. Requisition for Payment of Private Development Redevelopment Costs.
11
EXHIBIT 1
ESTIMATED BDD ELIGIBLE PROJECT COSTS
Old Dog, LLC and Phillip P. Iverson
City of Canton,Fulton County, Illinois / Canton BDD No. 1
Project Description: Developer shall complete exterior and interior repairs,renovation and
rehabilitation of the building located thereon at a total estimated cost
of$1,039,509 for the commercial operation of Old Dog,LLC Eatery,
Winery,Brewery&Distillery.
Property: 23 W. Pine St.,Canton,Illinois
PIN 09-08-27-414-029
JONES 2ND ADD,LOT 50 EX SE 1/4&S 40 LT 49 JONES 3'D
ADD LOT 8&S 40 LOT 7
PIN 09-08-27-414-024
SECT/LOT: 50 JONES 2ND ADD SE 1 4
0
G'7GmD �
Estimated BDD Eligible Project Costs:
Exterior and interior repairs,renovation&rehabilitation of structures
(materials dam'contracted labor)...............................................................................................................$1,039,509
Total Estimated BDD Eligible Project Costs................................................ .039.509
The total,cumulative reimbursement of BDD Funds for BDD Eligible Project Costs payable by the City to the Developer as set forth
in this Redevelopment Agreement shall not exceed$200,000.00.
12
EXHIBIT 2
APPLICATION FOR BDD BENEFITS RELATING TO PRIVATE BDD
ELIGIBLE REDEVELOPMENT PROJECT COSTS
as submitted by
OLD DOG, LLC AND PHILLIP P. IVERSON
(23 W. Pine St.)
(See fallowing pages as attached)
13
City of Canton, Illinois
Canton Business Development District (BDD) No. 1 (ertab&hed.•311512022)
City of Canton,Illinois/2 N.Main St.,Canton,IL 61520 Ph:(309)647-0065
APPLICATION FOR REIMBURSEMENT OF
PRIVATE BDD ELIGIBLE REDEVELOPMENT PROJECT COSTS
Applicant Name: Old Dog, LLC
Applicant Mailing Address: P.O. Box 397 Canton, IL 61520
Applicant Daytime Phone: 217-841-1450 Applicant Email Address: phil.iyerson80@gmail.com
Subject Property's Site Address: 23 W. Pine St. Canton, IL 61520
Subject Property's Fulton County Property Tax ID#09-08-27-414-029 &09-08-27-414-024
Property Owner Name(s) if different than Applicant:Rhoades Investment Properties, LLC
Type of Property (check all that apply): 19 Commercial/Retail; ❑ Professional Office; ❑ Industrial; ❑ Residential
Anticipated Project Start Date: In-Progress and Estimated Project Completion Date: 11/1/2023
Number of new jobs,if any,that will be created as a result of this Project: Full-time 15 Part-time 15
New annual retail sales anticipated to occur,if any,as a result of the proposed improvements: $2,600,000
Total Projected Investment for Project: $1,450,000 ,of which$1,033,509 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).....$15,000
2. Acquisition cost of land and buildings purchased after 3/15/2022......................................$
3. Site preparation (e.g.,demolition,excavation,leveling/grading of land)..............................$
4. Exterior rehab,repair,remodeling,reconstruction of existing buildings.............................$50,000
5. Interior rehab,repair,remodeling,reconstruction of vacant,underutilized space............$1,033,509
6. Construction of new building......................................................................................................$
7. Construction or repair of private parking lot and/or driveway..............................................$
8. Construction or repair of public infrastructure.........................................................................$
TOTAL ESTIMATED BDD ELIGIBLE PROJECT COSTS $1,098,509
FOR CITY USE:
Signed application received by the City of Canton on date:_/ / by
City Finance Committee Recommendation: ❑Approved for Amount:$ on date:
Notes/instructions: (attach more detail as needed)
❑ Denied for reason: (attach mare 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 REQUIREMENTS CAREFULLY
BDD reimbursements are provided for BDD-eligible project costs (pursuant to 65 ILCS 5/11-74.3-1 et. seq. 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. I 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
cmcdanieing.cantonillinois.org,or visit online at: https://www.cantoniUinois.org/economic-development/.
r- -
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N MAUIIE■-srurz Canton Business Development District No. I(First Amendment)
September 20,2022.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. followring 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 cligible
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: hips://www2.ithnois.guv/idol/FAOs/Pages/ v i in -
w=-faq-aspx#g1t16. 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.
R. 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 Signature: 8 6 2023
fI' #. Date: /
❑ Applicant is the Owner of Subject Property
d Applicant is Tenant of Subject Property for which Appendix A has been completed and attached hereto.
-3-
APPENDIX A
APPLICATION FOR REIMBURSEMENT OF
PRIVATE BDD ELIGIBLE REDEVELOPMENT PROJECT COSTS
City of Canton,Illinois/2 N.Main St.,Canton,IL 61520 Ph:(309)647-WS
(Complete top and bottom poahvis a j this%rw only i'the-•Ipplicant is not for Propegy Ou ner)
TENANT-APPLICANT AFFIDAVIT
We the undersigned are the Applicant and Tenant of real Propem•located at the following address:
23 W.Pine St Canton,IL 61520 *(PIN 09.0&27-014-029 )�
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. 1
.Special Tax 71K
ionFund,pursuant to the terms and conditions provided herein.BY: Date:
(At boritied Tenan . ignature)
PnN Iverson
(Print Tenant Name)
STATE OF ILLINOIS
COUNTY OF FULTON
I,the undersigned Notary-Fubli du hereby affirm that Phil Iverson pctwnally tppearcd before me on the day'of
Z1�7 Z,and signed the above Statement as a free and voluntary act and deed.
ANMA M DOWNING
OFFICIAL.SEAL
Notary Public-State of Illinois
iVotmy Public V
My Commission Elipres
October 20,2025
Dale n/Caunrirrinn F.apir�c r� / ZV 12�
---—----------------------------------_•--------.. ---------------------------------
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 Propem,whereby the Tenant shall incur certain eligible project costs
for which the Tenant is requesting reimbursement from the Canton Business Development District No. 1 Special Tax
Allocation Find 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 award itv for this Project payable to the Tenant-Applicant.
BY: Date:
(., a to led Propery Owner-landlord S•ionO�at ure)t►�
Rhoades Inveshnent Properties,LLC J L� 4.1tS
(Print Property Owner-Landlord Name)
STATE OF ILLINOIS
COUNTY OF FULTON R
1 e undersi med Notary Public do hereby affirm that Jed Rhoades personally appeared before me on the y day of
2 CZ-1 ,and sighed the above Statement as a free and voluntan-act and deed.
-\��� � ANETTA M DOWNING
]Volaq,Public OFFICIAL SEAL
rtxix Notary Public-State of Illinois
lv Q suteof M Commission E res
Date of Cannnissioa E xphy: _/ 2 / wNots y 0
October 20,2025
4
Business Development District Application &Supporting Documentation
August 6, 2023
Our Story
In Fulton County,just outside Canton, Illinois, Phil and Jackie Iverson saw potential. The idea? Cultivate
grapes and explore the wine market. During their research on the local wine scene, a bigger idea
started to emerge. If they entered the winery world,they would pair it with a restaurant. And why stop
there?Considering the craft of brewing, they realized they could also produce beer and, with some
equipment adjustments, spirits. This led to the birth of Old Dog, LLC and what we believe to be the
State of Illinois's first Brewery, Winery, and Distillery in the same business location.
As Phil simply puts it, "Canton offers a unique position in the market, with a promising downtown and a
community that appreciates good food and company."
At Old Dog, our focus isn't just on crafting quality beverages; it's about community and connection. Phil
and Jackie's journey speaks to their dedication to Canton. Join us in this venture, where every sip and
bite reflect our passion and commitment.
Our Product
Old Dog, LLC is an exciting and innovative project that aims to become the first brewery, winery and
distillery all under one roof. With its unique concept, Old Dog will offer a variety of features and
highlights that will make it a sought-after destination for visitors from all over central Illinois. One of the
key attractions at Old Dog will be its fast fine dining experience, serving a delectable range of smoked
meats, stone oven pizzas,sandwiches,salads, soups, and small plates. The menu will cater to diverse
palates, ensuring a memorable dining experience for every guest. In addition to the culinary delights,
Old Dog will produce and sell its own spirits, wine, beer, and other craft beverages in-house.This
integration of production and sales will provide customers a unique opportunity to witness the
craftsmanship behind their favorite drinks. Old Dog will also serve as a vibrant venue for hosting events,
including live music performances, community interest events, and private gatherings. The spacious
establishment will seat 112 guests in the beer hall, 50 at the bar,45 in the private event room and
additional outdoor seating on the patio, allowing for a lively and inclusive social atmosphere.
With an estimated $2.6 million in annual sales projected for its first year, Old Dog will contribute
significantly to the local economy. The business will create 15 full-time jobs and 15 part-time positions,
enhancing employment opportunities in the area. Once fully staffed, Old Dog will open its doors seven
days a week, providing ample opportunities for patrons to enjoy its offerings.The project will be
executed in two phases,the first phase opened on July 26, 2023 and the second phase completion is
targeted for November 1, 2023. As part of its commitment to customer satisfaction, Old Dog will also
offer catering services, ensuring that its exceptional food and beverages are available for special
occasions. Old Dog will be positioned as a prominent member of the central Illinois wine trail,further
expanding its visibility, and attracting wine enthusiasts from the region. Moreover, starting in 2024,
guided tours will be available to visitors and customers, offering an immersive experience into the art of
brewing, wine-making, and distilling. Recognizing the potential for increased business during high school
football and other sporting seasons, Old Dog is considering extending its operating hours to
accommodate potential patrons. This strategic move will attract even more visitors and solidify Old Dog
as the go-to destination in central Illinois.
Our Request for BDD Assistance
Phase One of our project has been completed and was opened officially on July 26`h, 2023. Phase Two of
is underway and build out continues. To ensure the timely completion of our Phase Two project and
address escalating construction costs, we are requesting$150,000 in three separate disbursements
needed to achieve full completion and maximize our business model. Based on projected annual gross
sales of$2.6M with a 3%annual growth projection,the city's investment would be paid back in under
three years when combining total sales taxes collected from the Old Dog facility(1% municipal sales tax
& 1% BDD tax). We believe these estimates to be conservative as our regional research and studies
have shown customers are willing to drive up to 20 miles to visit an attraction when there is little
surrounding competition. Old Dog will be a true destination business that draws customers from greater
distances to come enjoy a unique experience. Below is a breakdown of our funding request:
$50,000 upon verifying first$500,000 in cost eligible expenses incurred to date.
$50,000 upon verification of an additional $150,000 in cost eligible expenses incurred.
$50,000 upon completion of Phase 2 and official opening.
$50,000 TOTAL- paid annually as a reimbursement of.25%of the 1% BDD tax generated by Old Dog
until that cap figure is reached, or the life of the BDD expires, whichever shall occur first.
This first$50,000 payouts are requested to be o forgivable loan or lump sum grant, similar to previously
approved Canton BDD#1 projects.
Old Dog anticipates meeting the $50,000 sales tax reimbursement cap in the first 8 years of operation as
sales projections are met, with Canton's original$150,000 investment paid back within the first 3 years.
The reimbursement portion of the incentive is low risk to the city due to the fact it is a reimbursement of
BDD sales tax generated by Old Dog and not dependent on the use of existing BDD funds.
Our understanding is that the Canton Business Development District#1 was created to allow the city to
offer incentives to catalytic projects, such as a brewery, winery, or distillery,that serve as anchors and
business attraction magnets. Old Dog, LLC checks all those boxes.
The chart below illustrates how a $200,000 investment by the City of Canton will generate a combined
total of$1,587,913 in BDD and municipal sales taxes over the 21-year remaining life of the BDD. Based
on these projections the city would realize an annual 9.87% return on their investment.
Old Dog Incentive And Sales Tax Generated
$1,600,000 Over the 21 years
51,400,000 remaining in the
Canton Business
$1,200,000 Development District
51,000,000 #1
$800,000
$600,000
$400,000
$200,000 .
$0
Old Dog 1%BDD 1% Total Local
Total Tax Municipal Sales Tax
Incentive Sales Tax
Economic Impact:
Old Dog, LLC's integrated establishment represents a catalyst project with far-reaching economic
benefits. By consolidating multiple artisanal industries, we will attract both locals and tourists,
stimulating increased foot traffic and consumer spending in the downtown. This infusion of economic
activity will generate new revenue streams, increase overnight stays and inspire entrepreneurs and
developers to invest in the community, which will bolster tax revenues, and enhance the performance
of the Business Development District. We realize the tremendous investment it takes for Canton to
maintain its infrastructure. Investing BDD funds early in businesses like Old Dog not only grows the BDD
fund balance, but it also creates a more investable Canton market that begins to move them away from
needing to provide incentives,thus allowing Canton to dedicate a higher percentage of BDD funds
toward services and infrastructure improvements in the coming years.
Summary:
Old Dog, LLC's Brewery,Winery, Distillery, and Eatery is poised and ready to make a significant
investment and impact on the local Canton economy.The city's initial investment represents
approximately 13.3%of the total project cost,will be paid back in under 3 years,and will have a
tremendous impact on existing and future business. It should be noted that Mr. Iverson,as a
professional builder and contractorwith 32+years experience, has self-performed the majority of
work building out the Old Dog facility. If that labor expense was factored into the overall project cost
then Canton's investment would represent 9.9%of the project.
Thank you so much for your consideration! We look forward to partnering with the City of Canton on
this exciting and transformative venture.
O�'D HOC
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Brewery,Winery,
Distillery,Beer Hall,
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Photos from Phase One of Old Dog Brewery,Winery,Distillery&Eatery
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EXHIBIT 3
PROMISSORY NOTE
FOR VALUE RECEIVED, Old Dog, LLC and Phillip P. Iverson (collectively, the
`Borrower', promise to pay the City of Canton, Fulton County, Illinois, an Illinois Municipal
Corporation (the "Lender' the principal sum of up to One Hundred Fifty Thousand Dollars
($150,000.00) 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 23 W.Pine St.,Canton,Illinois (PIN 09-08-27-414-029 and PIN 09-08-27-414-024,
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 Old
Dog,LLC and Phillip P.Iverson(the"Redevelopment Agreement's entered into the 2P`day of May,
2024.
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 ten (10) 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-Tenth (1/10) of the principal balance of up to $150,000.00,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:
ii. The Developer fails to maintain constant and continuous operation of Old
Dog,LLC Eatery,Winery,Brewery&Distillery located on the Property from
the time the Project is complete and continuing for the term of this Agreement.
iii. The Developer fails to annually provide verification of the payment of the real
estate taxes for the property during the term of this Agreement.
iv. The Developer files for bankruptcy or otherwise become insolvent during the
term of this Agreement.
v. If upon future acquisition of the Property or any portion thereof by the
Developer, the Property becomes the subject of foreclosure proceedings
during the term of this Agreement.
vi. If upon future acquisition of the Property or any portion thereof by the
Developer, the Developer sells or otherwise conveys the Property during the
term of this Agreement.
14
vii. The Developer shall verify adequate property insurance on the Property is
maintained during the term of the loan to cover the replacement cost of the
completed Project.
viii. As signatories to this Agreement and the Note,Old Dog,LLC,and Phillip P.
Iverson 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`s)
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, Old Dog, LLC and Phillip P. Iverson each guarantees 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 OLD DOG, LLC,an Illinois Limited Liability
Municipal Corporation Company
BY: BY:
a or 0211, D� Phili P. Iverson,Manager
Date•
Date: 49/ZZ /Z '{
ATT STED BY:
' PHILLIP P. IVERSON,individually
ity Clerk
Date: BY: l•� �-C
Phillip P. Iverson
Date: ��Z' Z Z
15
EXHIBIT 4
CITY OF CANTON,ILLINOIS
CANTON BUSINESS DEVELOPMENT DISTRICT (BDD)NO.1
PRIVATE PROJECT REQUEST FOR
VERIFICATION OF BDD ELIGIBLE PROJECT COSTS
by
OLD DOG, LLC.AND PHILLIP P. IVERSON
(23 W. PINE ST.)
Date
Attention: City BDD Administrator,City of Canton,Illinois
Re: BDD Redevelopment Agreement,dated May 21,2024
by and between the City of Canton,Illinois,and Old Dog,LLC and Phillip P.Iverson
(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: Old Dog LLC. and Phillip P. Iverson
3. AMOUNTS REQUESTED TO BE DISBURSED:
Description of BDD Eligible Project Cost Amount
Total
16
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"I"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 Sectiob "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.
G. 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: DATE:
REVIEWED BY JACOB &KLEIN,LTD. &THE ECONOMIC DEVELOPMENT GROUP, LTD.
BY:
TITLE: DATE:
17