HomeMy WebLinkAboutOrdinance #4453 - CANTON - 1 DOWNTOWN/5TH AVENUE FIF DISTRICT/FIRST AMENDMENT TO AGREEMENT/WHITE COURT, LLC AND FRANK MORGAN 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
1ST DAY OF APRIL, 2025, ADOPTED ORDINANCE NO. 4453, A TRUE AND CORRECT
COPY OF WHICH IS CONTAINED IN THIS PAMPHLET.
GIVEN UNDER MY HAND AND SEAL THIS 1ST DAY OF APRIL,2025.
(SEAL)
4NDI SMITH-WALTERS
ITY CLERK
CITY OF CANTON, ILLINOIS
ORDINANCE NO. 4 4 5 3
CANTON-1 DOWNTOWN/5TH AVENUE TIF DISTRICT
AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A
FIRST AMENDMENT TO THE
TIF DISTRICT
REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON,FULTON COUNTY,ILLINOIS
and
WHITE COURT,LLC
and
FRANK MORGAN
(135,141,147 White Ct.)
PASSED BY THE CITY COUNCIL
OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS,
ON THE 1ST DAY OF APRIL,2025.
PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY
COUNCIL OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS,
THIS 1ST DAY OF APRIL,2025.
EFFECTIVE: APRIL 1,2025
CITY OF CANTON,ILLINOIS: ORDINANCE NO. 4453
CANTON 1—DOWNTOWN/5TH AVENUE
TAX INCREMENT FINANCING(TIF)DISTRICT
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF A FIRST AMENDMENT TO THE
TIF DISTRICT REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON
and
WHITE COURT,LLC
and
FRANK MORGAN
(135,141,147 White Ct.)
BE IT ORDAINED BY THE CITY OF CANTON, FULTON COUNTY, ILLINOIS
THAT:
1. The First Amendment to the TIF Redevelopment Agreement with White Court, LLC
(Exhlb*A attached) is hereby approved.
2. The Mayor is hereby authorized and directed to enter into and execute on behalf of the
City said First Amendment to the TIF Redevelopment Agreement and the City Clerk of
the City of Canton is hereby authorized and directed to attest such execution.
3. The First Amendment to the TIF Redevelopment Agreement shall be effective the date of
its approval on the 15C day of April, 2025.
4. This Ordinance shall be in full force and effect from and after its passage and approval as
required by law.
(The remainder of this page is intentionally left blank.)
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PASSED, APPROVED AND ADOPTED by the Corporate Authorities of the City of Canton,
Fulton County, Illinois,on the 1s`day of April,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
Andra Chamberlin
Patrick Ketcham
Ralph Grimm
Greg Gossett
Justin Nelson
John Lovell
Angela Hale
Kent A.McDowell,Mayor
TOTAL VOTES
APPROVED: tA , Date: / r� /2025
Kent A. McDowell,Mayor, City of Canton
ATTEST: 0 4,/d;?MZ
Date: / /2025
4wal-ters-Sniith, City Clerk, City of Canton
ATTACHMENTS:
EXHIBIT A. FIRST AMENDMENT TO THE TIF REDEVELOPMENT AGREEMENT BY AND BETWEEN
THE CITY OF CANTON AND WHITE COURT,LLC.AND FRANK MORGAN (135,141,147 White Ct.).
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EXHIBIT A
CANTON 1—DOWNTOWN/5TH AVENUE
TAX INCREMENT FINANCING (TIF) DISTRICT
FIRST AMENDMENT TO THE
TIF REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON
and
WHITE COURT, LLC
and
FRANK MORGAN
(1352 1415 147 White Ct.)
APRIL 1, 2025
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CANTON 1—DOWNTOWN/5TH AVENUE TIF DISTRICT
FIRST AMENDMENT TO THE TIF REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON
and
WHITE COURT, LLC
and
FRANK MORGAN
(135, 141, 147 White Ct.)
THIS FIRST AMENDMENT TO THE TIT REDEVELOPMENT AGREEMENT
(including Exhibits) is entered into this V day of April, 2025, by the City of Canton (the "City"), an
Illinois Municipal Corporation, Fulton County, Illinois, and White Court, LLC, an Illinois Limited
Liability Company,and Frank Morgan (collectively the"Developer").
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 "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 6,2004,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 Act, approved a Redevelopment Plan, and designated a
Redevelopment Area known as the Canton International Harvester Site Project Area TIF District
(currently known as the "Canton 1 - Downtown / 5th Avenue TIF District" and hereinafter
referred to as the"TIF District"); and
WHEREAS, on August 20, 2024, the Parties entered into a Redevelopment Agreement(the
"Original Agreement") for Property located at 135, 141 and 147 White Court, Canton, Illinois, PIN
09-08-27-420-005, (the "Property") which was acquired by the Developer in 2022 and is within the
TIF District Redevelopment Project Area;and
WHEREAS, the Developer acquired the Property and proceeded with plans to rehabilitate
and renovate the thirteen (13) apartment units contained in the building located on the Property in
order to accommodate the leases thereof (the "Project"), and the Developer is undertaking such
Project based upon incentives made available by the City; and
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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 has 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 Act and are consistent with the
Redevelopment Plan of the City;and
WHEREAS, the Parties have agreed to the incentives set forth herein in order to facilitate
the Project;and
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.
FIRST AMENDMENT
NOW, THEREFORE, for good and valuable consideration, the receipt of which is
acknowledged, the Parties agree to amend the terms of the Original Agreement as follows:
A. AMENDED "PREAMBLE"
The 95`b and 96`h Whereas clause in the Preamble shall be deleted in its entirety and replaced with the
following:
WHEREAS, the City and the Developer have agreed that the City shall provide forgivable
Loans to the Developer for the reimbursement of the Developer's TIF Eligible Project Costs (as set
forth in the Amended Exhibit "1" attached hereto) of an amount not to exceed Forty-Five
Thousand and No/100 Dollars ($45,000.00) to be paid from the Canton TIF District 1 Special Tax
Allocation Fund as specified below in Section "C' Incentives. In exchange for the Loans, the
Developer shall issue promissory notes to the City as set forth in Exhibit 'T"attached hereto; and
WHEREAS,in no event shall cumulative maximum reimbursements for the Developer's TIF
Eligible Project Costs relating to this Agreement as amended by the First Amendment exceed Forty-
Five Thousand and No/100 Dollars ($45,000.00); and
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B. AMENDED "A. PRELIMINARY STATEMENTS"
Section A(4)of the Original Agreement shall be deleted in its entirety and replaced with the following:
4. The Developer shall complete the Project within twelve (12) months from the date the
Original Agreement is executed, subject to extension due to Force Majeure (defined below).
The Project shall be deemed to be complete when: (1) the rehabilitation and renovation of the
thirteen (13) residential apartment units located in the building are complete; and (2) the City
has issued Certificates of Occupancy for such residential apartment units following such
building rehabilitation.
C. AMENDED "C. INCENTIVES"
Section C of the Original Agreement shall be amended to add the following paragraphs 2 and 3:
2. In addition to the Loan provided in Section C(1) above (Loan #1), in exchange for a second
promissory note (Loan #2) to be issued by the Developer to the City as set forth in Exhibit
"2"attached hereto, the City agrees to loan to the Developer (also, the `Borrower") the sutra
of Thirty Thousand and No/100 Dollars ($30,000.00) from the Canton TIF District 1
Special Tax Allocation Fund to assist the Developer with the rehabilitation and renovations
of the Property and related TIF eligible project costs, excluding land acquisition. The terms
and conditions for the loan shall be as follows:
a. The full Loan #2 amount of $30,000.00 shall be paid to the Developer from the
Canton TIF District 1 Special Tax Allocation Fund within thirty (30) days following
the execution of the First Amendment to the Original Agreement,or upon verification
of a minimum of $30,000 of TIF Eligible Project Costs pursuant to Section "E"
below,whichever occurs later.
b. A separate Promissory Note for Loan #2 is attached hereto as Exhibit "2".
c. The interest rate for Loan#2 shall be Three Percent(3%) per annum and shall begin
to accrue on the date the Loan #2 funds are disbursed to the Developer.
d. The term of Loan #2 shall expire on the fifth (5th) anniversary of the date the Loan
#2 funds are disbursed to the Developer hereunder.
e. One-fifth(1/5) of the principal amount of Loan#2,plus any accrued interest thereon,
shall be forgiven annually by the City commencing one(1)year from the date the Loan
#2 funds are disbursed to the Developer and continuing on said date of each year
thereafter for the term of Loan #2, 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 the White
Court Apartments located on the Property from the time the Project is
complete and continuing for the term of this Agreement. Furthermore the
Developer shall diligently pursue and maintain residential leases for the units
that are the subject of this Agreement for the life of this Agreement.
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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. The Property is not the subject of foreclosure proceedings during the term of
this Agreement.
v. The Developer does not sell or otherwise convey the Property, other than by
residential leases of the units located therein, during the term of this
Agreement.
vi. The Developer shall carry adequate insurance on the Property to cover the
replacement cost of the completed Project.
vii. As signatories to this Agreement and the Notes,White Court,LLC.,and Frank
Morgan shall be guarantors for the Note and shall be jointly and severally liable
in the event of a default thereof by the Developer.
3. The cumulative total reimbursements paid by the City pursuant to Sections C(1)and C(2)above
shall not in any event exceed Forty-Five Thousand and No/100 Dollars ($45,000.00).
D. AMENDED "D. LIMITATION OF INCENTIVES TO DEVELOPER"
Section D(1)of the Original Agreement shall be deleted in its entirety and replaced with the following:
1. The Developer shall be reimbursed by the City for all Eligible Project Costs permitted by the
Act(subject to a limitation of$45,000.00) from the real estate tax increment generated by this
Project located on the Property and deposited into the Special Account,but only for the term
of the Agreement and only from the Property included in this Project and currently owned by
the Developer at that location. The parties may add additional phases and eligible project in
excess of the amount authorized by this Agreement upon mutual agreement.
E. AMENDED "EXHIBIT I"AND "EXHIBIT 2"
Exhibit 1 of the Original Agreement shall be deleted in its entirety and replaced with the attached
Amended Exhibit 1.
Exhibit 2 of the Original Agreement shall be amended to add the attached Promissory Note for Loan
#2.
F. PRIOR AGREEMENT TERMS APPLY
All terms of the Original Agreement and any Exhibits thereto shall apply to this First Amendment
unless specifically modified by this First Amendment to the Original Redevelopment Agreement.
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THIS AGREEMENT IS INTENDED.TO BE A LEGAL DOCUMENT. AN ATTORNEY AT
LAW SHOULD BE:CONSULTED PRIOR TO THE EXECUTION OFTHIS DOCUMENT.
IN'WITNESS WHEREOF the Parties hereto have caused this First Amendment to the
Original Agreement to::be.execiifed by their dulp authorized officers on the above date at the City of
.Canton,Illinois.
CITY DEVELOPER
CITY OF CANTON,IL.L.INOIS,an Illinois WHITE COURTI LI.G,an Illinois I;iinited.
Municipal Corporation Liability Company
BY: BY:
or Frank organ,Manager
Date: f
Date:
ATTESTED BY: FRANK MORGAN,,individually
BY:
ity Clerk Frank,M
Date: 5 Date: 2 / 2
Attachments:
Amended Exhibit 1.Summary of TIF Eligible Project Costs:
Exhibit 2. Promissory Note for Loan#2.
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AMENDED EXHIBIT 1
SUMMARY OF ESTIMATED TIF ELIGIBLE PROJECT COSTS
CANTON 1 —DOWNTOWN/5TH AVENUE TIF DISTRICT
White Court,LLC (135, 141, 147 White Ct.,Canton,IL) Redevelopment Project
Project Description: Developer acquired the Property in 2022 and intends to proceed with plans to undertake
renovations to the thirteen(13)residential apartment units within the buildings located thereon.
Location: 135, 141, 147 White Ct., Canton, IL (PIN 09-08-27-420-005) and further described as
SECT/LOT: 63 JONES 2ND ADD S5 W78 62 ALLW78.
Developer's Estimated TIF Eligible Project Costs:
Rehabilitation and renovation of(13) apartment units.....................................................................$177,753
Demolition.................................................................................................................................................$19,500
Sitepreparation...........................................................................................................................................$5,000
Professionalfees........................................................................................................................................$11,500
Publicinfrastructure.................................................................................................................................$15,000
PropertyAcquisition...............................................................................................................................5290,000
TOTAL ESTIMATED TIF ELIGIBLE PROJECT COSTSt.......................................$518,000
'NOTE: The total,cumulative reimbursement of new real estate tax increment generated by the Developer's Project for
TIF Eligible Project Costs payable by the City to the Developer shall not exceed$45,000.00 for costs relating solely to
the rehabilitation and renovation costs incurred by the Developer,as set forth in this Redevelopment Agreement.
Although shown in Exhibit "1"for information purposes, the City shall not reimburse any portion of land acquisition
costs. The other line items as 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 set forth herein.
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EXHIBIT 2
PROMISSORY NOTE—LOAN#2
FOR VALUE RECEIVED, White Court, LLC, an Illinois Limited Liability Company and
Frank Morgan (collectively the "Borrower"), promises to pay the City of Canton, Fulton County,
Illinois, an Illinois Municipal Corporation ("Lender") the principal sum of up to Thirty Thousand
Dollars ($30,000.00) 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 TIF Eligible Project Costs,specifically redevelopment
project costs, incurred as a result of a Redevelopment Project located at 135, 141, 147 White Ct.,
Canton,IL (PIN 09-08-27-420-005 and the"Property"),within the Redevelopment Project Area and
that is the subject of a Tax Increment Financing District Redevelopment Agreement by and between
the City of Canton and White Court, LLC and Frank Morgan (the "Redevelopment Agreement")
entered into the 20`h day of August,2024 and amended on April 1,2025.
. The term of this Promissory Note for Loan #2 shall commence on the date the
reimbursements provided for in Section "C"of the Redevelopment Agreement are disbursed to the
Borrower and end on the date that is five (5) 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-Fifth (1/5) of the principal balance of up to $30,000.00, 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 "C"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:
i. The Developer fails to maintain constant and continuous operation of the White
Court Apartments located on the Property from the time the Project is complete
and continuing for the term of this Agreement. Furthermore,the Developer shall
diligently pursue and maintain residential leases for the units that are the subject
of this Agreement for the life of this Agreement.
ii. The Developer fails to annually provide verification of the payment of the real
estate taxes for the property during the term of this Agreement.
iii. The Developer files for bankruptcy or otherwise become insolvent during the term
of this Agreement.
iv. The Property becomes the subject of foreclosure proceedings during the term of
this Agreement.
V. The Developer sells or otherwise conveys the Property, other than by residential
lease of the units located therein, during the term of this Agreement.
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vi. The Developer fails to carry adequate insurance on the. Property to cover the
-replacement cost of.the completed Project
vii. As signatories to this Agreement.and the Note; White Court, LLC, and Frank
Morgan shall be b akantors.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`'')
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.subsequett 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 signatories to this Note, White Courts LLC., and Frank Morgan jointly and severally
guarantee payment of this 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 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.
LENDER BORROWER
CITY OF CANTON,ILLINOIS,and Illinois WRITE COURT, LLC, an Illinois Limited
Municipal Co oration Liability Company
BY: "v"'l BY. /
Ma Frank-.Morgan,Manager
Date: Date:
ATTESTED BY: FRANK MORGAN,,individually
r
BY:
City Clerk Frank Morgan
Date• � Z Date:
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