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HomeMy WebLinkAboutOrdinance #4447 - Redevelopment Agreement with Jarvis Welding and Brien Jarvis and Brad Jarvis 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 18TH DAY OF FEBRUARY, 2025, ADOPTED ORDINANCE NO. 4447, A TRUE AND CORRECT COPY OF WHICH IS CONTAINED IN THIS PAMPHLET. GIVEN UNDER MY HAND AND SEAL THIS 18TH DAY OF FEBRUARY,2025. (SEAL) ANDREA SMITH-WALTERS CITY CLERK CITY OF CANTON, ILLINOIS ORDINANCE NO. 4 4 4 7 AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A REDEVELOPMENT AGREEMENT by and between THE CITY OF CANTON,FULTON COUNTY, ILLINOIS and JARVIS WELDING,L.L.P. and BRIEN JARVIS and BRAD JARVIS PASSED BY THE CITY COUNCIL OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS, ON THE 18TH DAY OF FEBRUARY,2025. PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY COUNCIL OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS, THIS 18TH DAY OF FEBRUARY,2025. EFFECTIVE: FEBRUARY 18,2025 2 CITY OF CANTON, ILLINOIS: ORDINANCE NO. 4447 CANTON 1—DOWNTOWN/5TH AVENUE TAX INCREMENT FINANCING(TIF)DISTRICT and CANTON BUSINESS DEVELOPMENT DISTRICT (BDD) NO. 1 AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A REDEVELOPMENT AGREEMENT by and between THE CITY OF CANTON and JARVIS WELDING,L.L.P. and BRIEN JARVIS and BRAD JARVIS BE IT ORDAINED BY THE CITY OF CANTON, FULTON COUNTY, ILLINOIS THAT: 1. The Redevelopment Agreement with Jarvis Welding,L.L.P.and Brien Jarvis and Brad Jarvis (ExhihitA attached)is hereby approved. 2. The Mayor is hereby authorized and directed to enter into and execute on behalf of the City said Redevelopment Agreement and the City Clerk of the City of Canton is hereby authorized and directed to attest such execution. 3. The Redevelopment Agreement shall be effective the date of its approval on the 18`'day of February, 2025. 4. This Ordinance shall be in full force and effect from and after its passage and approval as required by law. (Fhe remainder of this page is intentionally left blank.) 3 PASSED, APPROVED AND ADOPTED by the Corporate Authorities of the City of Canton, Fulton County,Illinois,on the 18`'day of February,2025,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 Lingenfelter X Andra Chamberlin X Patrick Ketcham Ralph Grimm X Greg Gossett X Justin Nelson John Lovell X Angela Hale X Kent A.McDowell,Mayor X TOTAL VOTES 6 4"A APPROVED: Date: /A/2025 Kent A.McDowell,Mayo , City of Canton ATTEST: aw, , Date: aZ / PZ2025 �ndrea Smith-Walters, City Clerk, City of Canton ATTACHMENTS: EXHIBIT A. REDEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF CANTON AND JARVIS WELDING,L.L.P.AND BRIEN JARVIS AND BRAD JARVIS. 4 EXHIBIT A CANTON 1-DOWNTOWN/5TH AVENUE TAX INCREMENT FINANCING (TIF) DISTRICT and CANTON BUSINESS DEVELOPMENT DISTRICT (BDD) NO. 1 REDEVELOPMENT AGREEMENT by and between THE CITY OF CANTON and JARIS WELDING,L.L.P. and BRIEN JARVIS and BRAD JARVIS s CANTON 1 - DOWNTOWN/5TH AVENUE TAX INCREMENT FINANCING DISTRICT and CANTON BUSINESS DEVELOPMENT DISTRICT NO. 1 REDEVELOPMENT AGREEMENT by and between CITY OF CANTON, FULTON COUNTY, ILLINOIS and JARVIS WELDING,L.L.P. and BRIEN JARVIS and BRAD JARVIS FEBRUARY 18, 2025 CANTON 1—DOWNTOWN/5TH AVENUE TIF DISTRICT and CANTON BDD NO. 1 REDEVELOPMENT AGREEMENT by and between CITY OF CANTON and JARVIS WELDING, L.L.P. and BRIEN JARVIS AND BRAD JARVIS THIS REDEVELOPMENT AGREEMENT (including Exhibits) is entered into this 18 h day of February, 2025, by the City of Canton (the "City"), an Illinois Municipal Corporation, Fulton County,Illinois, and Jarvis Welding,L.L.P.,an Illinois Limited Liability Partnership,and Brien Jarvis, individually and Bard Jarvis,individually (collectively the "Developer"). 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 prevent the spread of blight and deterioration and inadequate public facilities by promoting the development of private property thereby increasing the tax base of the City and providing employment for its citizens; 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 July 16, 2004, 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 1—Downtown/5`'Avenue TIF District" and hereinafter referred to as the"TIF District");and WHEREAS, property located at 155 S. 2nd Street, Canton, Illinois, (PINs 09-08-27-440- 002, 09-08-27-440-004, 09-08-27-440-005, 09-08-27-440-007, 09-08-27-440-008, 09-08-27-440-009, 09-08-27-440-010 and 09-08-27-440-011, hereinafter referred to as the "Property" and further described in Exhibit "1"attached hereto) was acquired by the Developer from the City in 2023 and is located within the TIF District Redevelopment Project Area;and WHEREAS, said Property is also located within the City of Canton Business Development District (BDD) No. 1 Redevelopment Project Area,which was established by the City on March 15, 2022, by Ordinance No. 4281 pursuant to the Business District Development and Redevelopment Act, 65 ILCS 5/11-74.3 et. seq. (the`BDD Act"); and 2 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,the Developer has acquired the Property from the City and intends to construct a commercial building located thereon for operation of the"Jarvis Welding"business (the"Project"), and the Developer has secured the Property Landlord's consent for undertaking the Project based upon incentives made available by the City;and WHEREAS, it is the intent of the City to encourage economic development which will increase the real estate tax base of the City,which increased incremental taxes will be used,in part, to finance incentives to assist development within the TIF District;and WHEREAS, the Developer's proposed Project is consistent with the TIF District Redevelopment Plan and Projects for the Redevelopment Project Area and shall further conform to the land uses of the City as adopted;and WHEREAS,pursuant to Section 5/11-74.4-4(b) of the TIF Act,the City may make and enter into all contracts with property owners, developers, tenants, overlapping taxing bodies, and others necessary or incidental to the implementation and furtherance of the Redevelopment Plan;and WHEREAS, pursuant to Section 5/11-74.4-40) of the TIF Act, the City may incur project redevelopment costs and reimburse developers who incur redevelopment project costs authorized by a redevelopment agreement and further defined in Section 5/11-74.4-3(q) of the TIF Act,including those Estimated TIF Eligible Project Costs as herein listed in the attached Exhibit "1" of this Redevelopment Agreement;and WHEREAS, the Developer requested that incentives for the development be provided by the City from incremental increases in real estate taxes of the City generated from its Project and the City agreed to such incentives; and WHEREAS, the City has determined that this Project required the incentives requested as set forth herein and that said Project will,as a part of the Plan,promote the health, safety and welfare of the City and its citizens by attracting private investment to prevent blight and deterioration and to generally enhance the economy of the City;and WHEREAS, the City has reviewed the conditions of the Property and has reason to believe that the costs of the necessary public and private improvements to be incurred by the Developer in furtherance of the Project are eligible project costs under the TIF Act and BDD Act and are consistent with the Redevelopment Plans of the City;and WHEREAS, the City and the Developer have agreed that the City shall reimburse the Developer's TIF and BDD Eligible Project Costs (as set forth in Exhibit "I"attached hereto) up to a total amount not to exceed One Hundred Fifty-Two Thousand Five Hundred and No/100 Dollars ($152,500.00) as specified below in Section "C' Incentives;and WHEREAS, the Parties have agreed to the incentives set forth herein in order to facilitate the Project;and 3 WHEREAS, in consideration of the execution of this Agreement, the Developer shall proceed with and complete the Project as set forth in Exhibit "1;"and WHEREAS, the City is entering into this Agreement having encouraged and induced the Developer to proceed with the Project located on said Property. AGREEMENTS NOW,THEREFORE,the Parties,for good and valuable consideration,the receipt of which is acknowledged,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. 2. Any terms which are not defined in this Agreement shall have the same meaning as they do in the TIF Act,unless indicated to the contrary. 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 shall complete the Project within twelve (12) months from the date this Agreement is executed,subject to extension due to Force M,jeure(defined below). The Project shall be deemed to be complete when the commercial building has been completed and the Jarvis Welding business is open to the public. 5. Each of the Parties represents that it has taken all actions necessary to authorize its representatives to execute this Agreement. B. ADOPTION OF TAX INCREMENT FINANCING AND BDD The City has created a Tax Increment Financing District known as Canton 1—Downtown/5`h Avenue TIF District" and Business Development District knows as "Canton BDD No. 1", both of which include the Developer's Property.The City has approved certain Redevelopment Project Costs, including the types described in Exhibit "1"for the Developer's Project. C. INCENTIVES In consideration for the Developer purchasing the Property and completing the Project as set forth herein, the City agrees to extend to the Developer the following incentives to assist the Developer's Project: 4 1. The City agrees to reimburse the Developer Ninety Percent (90%) of the annual "net" real estate tax increment generated by the Project for the current remaining life of the TIF District, through tax year 2027 payable in 2028, not to exceed a total of Sixty-Two Thousand Five Hundred Dollars ($62,500.00) for its verified TIF Eligible Project Costs related to site preparation and professional fees,as set forth in Exhibit 1. "Net" real estate tax increment is defined as increment generated by the Project after payment for a proportionate amount of TIF administrative fees and costs and payments pursuant to Intergovernmental Agreements, if any. 2. In addition, the City agrees to reimburse the Developer up to Eighteen Thousand Dollars ($18,000.00) per year, commencing on or before December 31, 2025 and continuing on December 315C of each year thereafter through and including December 31,2029,up to a total amount not to exceed Ninety Thousand Dollars ($90,000.00), from the Canton BDD No. 1 Fund for its verified BDD Eligible Project Costs related to new building construction,as set forth in Exhibit 1. 3. In order for the Developer to continue receiving the reimbursements set forth herein, the Developer shall remain in compliance with each and every term of this Agreement during the term of the Agreement,including the following: a. The Developer shall maintain continuous operation of the Jarvis Welding commercial business located on the Property from the time the Project is complete and continuing for the term of this Agreement. b. The Developer shall annually provide verification of the payment of the real estate taxes for the property during the term of this Agreement. c. The Developer does not file for bankruptcy or otherwise become insolvent during the term of this Agreement. d. The Property is not the subject of foreclosure proceedings during the term of this Agreement. e. The Developer does not sell or otherwise convey the Property during the term of this Agreement. f. In order to continue receiving the incentives set forth herein,the Developer agrees to provide any information to the City upon request of the City regarding the number of jobs created and/or retained by the Project as may be required by the Act and by the Illinois Comptroller. 4. The total reimbursements paid to the Developer under Section C(9)and C(2)above shall not in any event exceed One Hundred Fifty-Two Thousand Five Hundred Dollars ($152,500.00). 5. In the event the Developer is in default of any term set forth in this Agreement,this Agreement shall immediately terminate, and the Developer shall no longer be entitled to any further reimbursements hereunder. 5 D. LIMITATION OF INCENTIVES TO DEVELOPER 1. The Developer shall be reimbursed by the City for all Eligible Project Costs permitted by the TIF Act (excluding land acquisition) and the BDD Act (subject to a cumulative limitation of $152,500.00) from the real estate tax increment generated and deposited into the Canton 1 — Downtown/5`h Avenue TIF District Special Tax Allocation Fund and from the Canton BDD No. 1 Special Tax Allocation Fund,but only for the term of the Agreement. The parties may add additional phases and eligible project costs in excess of the amount authorized by this Agreement upon mutual written agreement pursuant to Section W(2)below. 2. It is not contemplated nor is the City obligated to use any of its proportionate share of the monies for any of the Developer's Eligible Project Costs but,rather,the City shall use its sums for any purpose under the TIF Act as it may in its sole discretion determine. 3. The Developer agrees to substantially complete the project, subject to Force Majeure, as defined below. E. PAYMENT OF ELIGIBLE PROJECT COSTS 1. Payment to the Developer for TIF Eligible Project Costs as set forth by the TIF Act or BDD Eligible Project Costs as set forth by the BDD Act,shall be made by a Requisition for Payment of Private Development Redevelopment Costs (Exhihit "2", the "Requisition") submitted from time to time by the Developer to the City's TIF/BDD Administrator Jacob & Klein, Ltd., with copy to The Economic Development Group, Ltd. (collectively, the "Administrator"), and subject to the Administrator's approval of the costs and to the availability of funds in the Special Account. 2. All Requisitions must be accompanied by verified bills or statements of suppliers,contractors, or professionals together with mechanic's lien waivers (whether partial or full) from each of the parties entitled to a payment that is the subject of the Requisition as required by the City. 3. For the Developer to receive reimbursement of Eligible Project Costs for costs it has incurred in any year as set forth in Patagtaphs "1"and "2"above,the Developer must submit such proposed eligible costs to the City by March 1 of the following year. If there are no accumulated outstanding costs previously submitted and approved by the City and if the Developer does not submit such proposed eligible costs by this deadline, the Developer will forfeit reimbursement of such costs from the prior year's real estate tax increment to be paid in the current year. Any approved eligible costs submitted after this deadline will be eligible for reimbursement from the next year's real estate increment receipts. 4. Any real estate tax increment not required to be paid to the Developer under the terms of Patagtaph "3"above shall be available to the City for any purpose set forth in the TIF Plan and allowed by the TIF Act. 5. The Administrator shall approve or disapprove a Requisition by written receipt to the Developer within thirty (30) business days after receipt of the Requisition. Approval of the Requisition will not be unreasonably withheld. If a Requisition is disapproved by the Administrator,the reasons for disallowance will be set forth in writing and the Developer may 6 resubmit the Requisition with such additional information as may be required and the same procedures set forth herein shall apply to such re-submittals. 6. All TIF Eligible Project Costs and/or BDD Eligible Project Costs approved shall then be paid by the City from the appropriate Special Tax Allocation Fund to the Developer, or to others as directed by the Developer, pursuant to the TIF Redevelopment Plan and/or the BDD Redevelopment Plan and as allowed by Illinois Law. The City shall pay such approved Eligible Costs, provided the Developer has satisfied the terms of this Agreement and costs which exceed the amount available to pay the Developer shall carry forward, until paid, without further action of the Developer. 7. The Parties acknowledge that the determination of Eligible Project Costs, and, therefore, qualification for reimbursement hereunder are subject to changes or interpretation made by amendments to the TIF Act and the BDD Act, respectively, administrative rules or judicial interpretation during the term of this Agreement.The City has no obligation to the Developer to attempt to modify those decisions but will assist the Developer in every respect as to obtaining approval of Eligible Project Costs. F. ANNUAL VERIFICATION OF TAX INCREMENT AND JOBS CREATED 1. It shall be the sole responsibility of the Developer, or its designee, to annually provide to the City,as requested in writing,copies of all PAID real estate tax bills for the Property. 2. The annual reimbursement of real estate tax increment by the City to the Developer as set forth in Section C above shall be conditioned upon the Developer providing the City with the numbers of jobs created or retained by the Project for a particular year if requested by the City to do so for that year. 3. The failure of Developer to provide any information required herein after written notice from the City, and the continued failure to provide such information within (30) days after such notice, shall be considered a 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 foregoing information. G. LIMITED OBLIGATION The City's obligation hereunder to pay the Developer for Eligible Project Costs is a limited obligation to be paid solely from the Canton 1 — Downtown/5`' Ave. TIF District Special Tax Allocation Fund and the Canton Business Development District 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 or require the City to utilize its taxing authority to fulfill the terms of this Agreement. H. CITY PUBLIC PROJECTS The City intends to use part or all of its share of the Project's real estate increment for other public projects within the TIF District or within contiguous TIF Districts as allowed by law.The City 7 shall be eligible for reimbursement of the cost of doing so,as well as other eligible costs incurred by the City in the TIF District. I. 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 direct payments to any other contractor, subcontractor, mechanic, or materialman providing services or materials to the Developer for the Developer's Project. J. COOPERATION OF THE PARTIES 1. The City and the Developer agree to cooperate fully with each other when requested to do so concerning the development of the Developer's Redevelopment Project. This includes without limitation the City assisting or sponsoring the Developer, or agreeing to jointly apply with the Developer,for any grant,award,subsidy or additional funding which may be available from other governmental sources as the result of the Developer's or City's activities. This also includes without limitation the Developer assisting or sponsoring the City, or agreeing to jointly apply with the City, for any grant,award,or subsidy which may be available as the result of the City's or the Developer's activities. 2. The Parties agree to take such actions,including the execution and delivery of such documents, instruments, petitions, and certifications (and, in the City's case, the adoption of such ordinances and resolutions), as may be necessary or appropriate, from time to time, to carry out the terms, provisions, and intent of this Agreement and to aid and assist each other in carrying out said terms,provisions,and intent. 3. The Parties shall cooperate fully with each other in seeking from any or all appropriate governmental bodies all approvals (whether federal, state, county or local) required or useful for the construction or improvement of property and facilities in and on the Property or for the provision of services to the Property, including, without limitation, wetland mitigation, gas, telephone, and electric utility services, roads, highways, rights-of-way,water and sanitary sewage facilities, and storm water disposal facilities. K. DEFAULT; CURE; REMEDIES In the event of a default under this Redevelopment 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"), may have an action for damages, or, in the event damages would not fairly compensate the Non-defaulting Parties for the Defaulting Party's breach of this Redevelopment 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 real estate tax increment payable to the Developer 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 Redevelopment Agreement,it shall not be deemed to be in default under this Redevelopment 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 8 such monetary covenant. In the event a Defaulting Party fails to perform any nonmonetary covenant as and when it is required to under this Redevelopment Agreement, it shall not be deemed to be in default if it shall have cured such default within thirty (30) days of its receipt of a notice from a Non- defaulting Party specifying the nature of the default, provided, however, with respect to those nonmonetary 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. L. TIME; FORCE MAJEURE For this Agreement, time is of the essence. The Developer agrees to complete this Project within twelve (12) months following the date of execution of this Agreement. Failure to do so shall be cause for the City to declare the Developer in default and unilaterally terminate this Agreement. 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 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,acts caused directly or indirectly by the City(or the City's agents,employees or invitees)when applicable to Developer or third parties, or any other cause beyond the reasonable control of Developer or the City. M. ASSIGNMENT The rights (including,but not limited to, the right to payments contemplated by Section "C" of this Agreement) and obligations (or either of them) of the Developer under this Agreement shall not be assignable unless by written authorization of the City. N. WAIVER Any party to this Agreement may elect to waive any remedy it may enjoy hereunder,provided that no such waiver shall be deemed to exist unless the party waiving such right of remedy does so in writing. No such waiver shall obligate such party to waive any right of remedy hereunder or shall be deemed to constitute a waiver of other rights and remedies provided said party pursuant to this Agreement. O. SEVERABILITY If any section, subsection, term or provision of this Agreement or the application thereof to any party or circumstance shall, to any extent, be invalid or unenforceable, the remainder of said section, subsection, term or provision of this Agreement or the application of same to parties or circumstances other than those to which it is held invalid or unenforceable, shall not be affected thereby. P. NOTICES All notices,demands,requests,consents,approvals or other instruments required or permitted by this Agreement shall be in writing and shall be executed by the Party or an officer,agent or attorney of the Party,and shall be deemed to have been effective as of(i) the date of actual delivery,if delivered personally,or(ii) as of the third(3`d) day from and including the date of posting,if mailed by registered 9 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 Jarvis Welding,L.L.P. `/o City Clerk % Brad&Brien Jarvis 2 N. Main St. 124 E Pine St. Canton,Illinois 61520 Canton, IL 61520 Ph: (309) 647-0020 Ph: (309) 338-3828 With copy to: With copy to: Jacob &Klein,Ltd. and The Economic Development Group,Ltd. 1701 Clearwater Avenue Bloomington, Illinois 61704 Ph: (309) 664-7777 Q. SUCCESSORS IN INTEREST Subject to the provisions of Section "M"above, this Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and assigns. R. 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. S. 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. T. 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. U. TERM OF THE AGREEMENT Notwithstanding anything contained herein to the contrary,this Agreement shall expire upon the first to occur of the current expiration of the TIF District(tax year 2027 payable 2028),December 10 31, 2029, or the Developer receiving all incentives included herein pursuant to Section "C"above.The Agreement shall expire sooner if the Developer files for bankruptcy or otherwise becomes insolvent, the Property becomes the subject of foreclosure proceedings, or upon default by the Developer of this Agreement. V. ILLINOIS PREVAILING WAGE ACT It is the understanding of the Parties that the position of the Illinois Department of Labor 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 of Labor is stated as an answer to a FAQ on its 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, determination, and/or payments made under the Illinois Prevailing Wage Act (820 ILCS 130/0.01 et. seq.), the Illinois Procurement Code, and/or any similar State or Federal law or regulation. This obligation to indemnify and hold harmless obligates Developer to defend any such claim and/or action,pay any liabilities and/or penalties imposed,and pay all defense costs of City,including but not limited to the reasonable attorney fees of City. Failure to comply with any of these requirements may cause all benefits hereunder to be terminated by the City. W. OTHER GENERAL PROVISIONS 1. Titles of Paragraphs: Titles of the several parts, paragraphs, sections, or articles of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any provisions hereof. 2. Amendments: The Parties hereto may amend this Agreement at any time by their mutual consent with amendment must be in writing and executed by the Parties. 3. Prepayments: Should the annual incremental real estate tax revenue generated by the Project be sufficient to pay all TIF eligible project costs, or the City determines sufficient BDD revenues are available to reimburse all BDD eligible expenses prior to the expiration of the term of the Agreement,the City may,at its sole discretion,elect to waive the required payments in Section C(3) above and pay all then remaining payments in a single lump sum payment(s). 4. 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. 5. 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. 6. 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. 11 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 Jarvis Welding, L.L.P., an Illinois Limited Municipal Corporation Liability Partnership BY: L BY: M yor Date: 22 0- Date: BRIEN JARVIS,individually AY TIT BY: �' /J BY: J/ Jan is C'ILEy Cler k . e _ Date: G—�J Date: �!ry''�c`� BRAD JARVIS,individually BY: A O-z� . . . Brad Jary'is Date: 3 2 S Attachments: Exhibit 1. Summary of TIF Eligible Project Costs. Exhibit 2. Request for Verification of TIF&BDD Eligible Project Costs. 12 EXHIBIT 1 SUMMARY OF ESTIMATED TIF AND BDD ELIGIBLE PROJECT COSTS CANTON 1—DOWNTOWN/5TH AVE.TIF DISTRICT & CANTON BDD NO. 1 Jarvis Welding, L.L.P. and Brien Jarvis and Brad Jarvis Project Description: The Developer has acquired the Property from the City and intends to construct a commercial building located thereon for operation of the "Jarvis Welding"business. Location: 155 2,d Street, Canton,IL PINs: 09-08-27-440-002,09-08-27-440-0045 09-08-27-440-005, 09-08-27-440-007, 09-08-27-440-008,09-08-27-440-009, 09-08-27-440-010 and 09-08-27-440-011 Developer's Estimated TIF and BDD Eligible Project Costs: SitePreparation.........................................................................................................................$50,000 Professionalfees.......................................................................................................................$103000 New building construction...................................................................................................$550,000 TOTAL ESTIMATED TIF ELIGIBLE PROJECT COSTS'...........................$610,000 'NOTE: The total, cumulative reimbursement for TIF and BDD Eligible Project Costs payable by the City to the Developer shall not exceed $152,500.00 for costs relating solely to professional fees, site preparation and new building construction as may be incurred by the Developer,and as set forth in this Redevelopment Agreement. The City shall not reimburse any portion of the Developer's costs for land acquisition for the Project.BDD Eligible Project Costs as set forth in this Exhibit"1"may be reimbursed pursuant only to Section "C(2)"of this Agreement.The line items set forth in this Exhibit"1"are not intended to place a total limit on the described expenditures or intended to preclude payment of such other TIF eligible redevelopment project costs in connection with the Developer's Project, provided the total amount of payment for all eligible redevelopment project costs,public and private,shall not exceed the total amount of$152,500 as set forth herein. 13 EXHIBIT 2 PRIVATE REDEVELOPMENT PROJECT REQUEST FOR VERIFICATION OF ELIGIBLE PROJECT COSTS Requisition No. Developer/Requestor name: Date submitted: / /20 Developer/Requestor mailing address: Developer daytime phone: Email address: This request for verification of eligible project costs relate to a written Redevelopment Agreement approved on / /20 by and between and (Municipality) (Developer) Project Name and Site Address: Property PIN(s)as found on most recent real estate tax bill: ❑ Applicable Tax Increment Financing(TIF)District Name: ❑ Applicable Business Development District(BDD)Name: This form is a request by the Developer to the Municipality for verification of eligible project costs which may be relied upon by the Municipality in advance of future disbursements of funds,if any are payable,from the Special Tax Allocation Fund(s) pursuant to the above referenced Redevelopment Agreement and applicable laws and statutes. The terms used herein shall have the same meanings as those terms in the Redevelopment Agreement. List of Project Costs Incurred Pursuant to the Redevelopment Agreement and Paid by the Developer for which Verification of Eligibility is Hereby Requested: Proof of Invoice(s) Payment Description Amount Paid Attached Attached' ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ Total Amount Requested for Verification of Eligible Costs: $ The undersigned hereby certifies and swears under oath that the following statements are true and correct: 1. the items herein provided as the "List of Project Costs Incurred Pursuant to the Redevelopment Agreement and Paid by the Developer for which Verification of Eligibility is Hereby Requested"were incurred and/or 1 Proof of payment may include: bills,statements,invoices and/or waivers of lien marked as paid,signed,and dated by suppliers, contractors,or professionals; processed/cancelled check or bank draft payments(i.e., photocopies of both sides of check);or other proofs payment for costs as may be requested by the Municipality. This information is to be attached to this form and available for review when submitted. 14 financed by the Developer as deemed necessary and in furtherance of the Project,and such materials and or services for which said costs were incurred have been applied to the Project in accordance with applicable City Codes and requirements of the Redevelopment Agreement, including Exhibits and amendments, if any, attached thereto;and 2. the Project Costs for which amounts are herein requested for verification of eligibility represent proper redevelopment project costs as identified in the "Limitation of Incentives to Developer" described in the Redevelopment Agreement, are not duplicated from any previous Request for Verification of Eligible Project Costs, have been properly recorded on the Developer's books, are set forth herein with invoices and proof of payment attached for all sums for which reimbursement is requested; and 3. the amounts requested and set forth herein are not greater than those necessary to meet obligations due and payable or to reimburse the Developer for its funds actually paid or advanced for such redevelopment project costs; and 4. the Developer is not in default per the terms of the Redevelopment Agreement, and nothing has occurred to the knowledge of the Developer that would prevent the performance or fulfillment of its obligations under the Redevelopment Agreement. The undersigned hereby certifies and warrants he/she is of legal age and that to the best of his/her knowledge the information contained in and attached to this Request for Verification of Eligible Project Costs is true, correct, and complete and furthermore agrees to the statements and representations provided herein.Any violation of this oath shall constitute a default of the Redevelopment Agreement and shall be cause for the City to unilaterally terminate the Redevelopment Agreement. BY: DATE: Developer/Requestor Signature Print Developer/Requestor Name: STATE OF ILLINOIS ) )SS COUNTY OF ) I,the undersigned Notary Public,do hereby affirm that personally appeared before me on the day of .20 and signed the above statement as a free and voluntary act and deed. Notary Public Date of Commission Expiry: / /20 Revised 11/122024 THIS SECTION FOR MUNICIPAL USE ❑ Request reviewed by TIF/BDD Administrator for the Municipality: Date: / /20_ (name and title) ❑ Request approved by authorized municipal official: Date: /____/20_ (name and title) ❑ Project reviewed/inspected by authorized municipal official: Date: (name and title) ❑ Project completed pursuant to Municipal Code Requirements. ❑ Project not completed pursuant to Municipal Code Requirements per attached report of authorized municipal official. 15