HomeMy WebLinkAboutOrdinance #4471 - FIRST AMENDMENT TO A TIF AND BDD REDEVELOPMENT AGREEMENT BY AND BETWEEN 309 DEVELOPMENTS. LLC AND JED RHOADES AND MAX KUMER (FULTON SQUARE PROJECT) 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 20TH DAY OF MAY, 2025 ADOPTED ORDINANCE NO. 4471, A TRUE AND
CORRECT COPY OF WHICH IS CONTAINED IN THIS PAMPHLET.
GIVEN UNDER MY HAND AND SEAL THIS 20T"DAY OF MAY,2025.
(SEAL)
DREA J: ITH-WALTERS
ITY CLERK
CITY OF CANTON, ILLINOIS
ORDINANCE NO. 4 4 71
AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION
OF THE FIRST AMENDMENT TO
A TIF AND BDD REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON,FULTON COUNTY,ILLINOIS
and
309 DEVELOPMENTS,LLC AND JED RHOADES AND MAX KUMER
(FULTON SQUARE PROJECT)
PASSED BY THE CITY COUNCIL
OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS,
ON THE 20TH DAY OF MAY,2025.
PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY
COUNCIL OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS,
THIS 201""DAY OF MAY, 2025.
EFFECTIVE:MAY 20, 2025
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ORDINANCE NO. 4471
CITY OF CANTON, ILLINOIS
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF THE FIRST AMENDMENT TO
A TAX INCREMENT FINANCING (TIF)AND
BUSINESS DEVELOPMENT DISTRICT (BDD)
REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON
and
309 DEVELOPMENTS,LLC AND JED RHOADES AND MAX KUMER
(FULTON SQUARE PROJECT)
WHEREAS, the Mayor and City Council of the City of Canton, Fulton County, Illinois (the
"City"), have hereby determined that the First Amendment to a TIF and BDD Redevelopment
Agreement by and between the City of Canton and 309 Developments, LLC and Jed Rhoades
and Max Kumer(the"Developer")attached hereto as Exhibit.,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. The First Amendment to City of Canton TIF and BDD Redevelopment Agreement attached
hereto as Exhibit `A"is hereby approved.
2. The Mayor is hereby authorized and directed to enter into and execute on behalf of the City
said Redevelopment Agreement and the City Clerk of the City of Canton is hereby authorized
and directed to attest such execution.
3. 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 August 30,2025.
4. The Redevelopment Agreement shall be effective the date of its approval on the 20'' day of
May, 2025.
5. This Ordinance shall be in full force and effect from and after its passage and approval as
required by law.
(The remainder of thispage is intentionally left blank.)
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PASSED APPROVED AND ADOPTED by the Mayor and City Council of the City of
Canton this 20' day of May,2025.
MAYOR&ALDERMEN AYE VOTE NAY VOTE ABSTAIN/ABSENT
David Pickel
Andra Chamberlin
Patrick Ketchum
Ralph Grimm
Greg Gossett
Justin Nelson
John Lovell
Angela Hale
KentA.McDowell,Mayor
TOTAL VOTES 9
APPROVED: 4 Date / /2025
Mayor,City of Canton
ATTEST: , Date: 6'_/�Q/2025
ity Clerk, Ci of Canton
ATTACHMENT:
1. EXHIBIT A. First Amendment to TIF and BDD Redevelopment Agreement by and
between the City of Canton and 309 Developments,LLC and Jed Rhoades and Max Kumer
(Fulton Square Project).
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EXHIBIT A.
CITY OF CANTON, ILLINOIS
FIRST AMENDMENT TO
TAX INCREMENT FINANCING (TIF)AND
BUSINESS DEVELOPMENT DISTRICT (BDD)
REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON, ILLINOIS
and
309 DEVELOPMENTS, LLC AND JED RHOADES AND MAX KUMER
(FULTON SQUARE PROJECT)
THIS FIRST AMENDMENT (including Exhibits, hereinafter referred to as the
"Agreement as amended") is entered into this 20`h day of May, 2025, by and between the City of
Canton (the "City"), an Illinois Municipal Corporation, Fulton County, Illinois, and 309
Developments, LLC, an Illinois Limited Liability Company and Jed Rhoades and Max Kumer
(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 encourage development, job creation, and/or the full utilization of real estate;
and
WHEREAS, pursuant to Illinois Statute 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 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 TIF Act, approved a Redevelopment Plan, and designated a
Redevelopment Area known as the Canton International Harvester Site Project Area TIF District
(now known as the "Canton 1 - Downtown / 5th Avenue TIF District" and hereinafter referred
to as "TIF District 1"); and
WHEREAS, on March 19, 2013, August 16, 2016, and April 5, 2017, the City approved
Amendments to the TIF District 2 Redevelopment Plan,Projects,and Area; 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
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Tax Increment Financing under the TIF Act, approved a Redevelopment Plan, and designated a
Redevelopment Area known as the"Canton 2—Rt. 9 / Chestnut St.TIF District"and hereinafter
referred to as "Canton TIF District 2");and
WHEREAS, on November 22, 2011, February 6, 2012 and April 5, 2017 the City approved
Amendments to the TIF District 1 Redevelopment Plan,Projects, and Area; and
WHEREAS,pursuant to the Illinois Business District Development and Redevelopment Act
(65 ILCS 5/11-74.3-1 etseq.),as amended(the"BDD 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 and further ratified the First Amendment on October 5,2022; and
WHEREAS, pursuant to the BDD Act, the City has the authority to incur eligible business
district project costs and may enter into agreements with developers to reimburse them for their
eligible business district project costs; and
WHEREAS, on December 3, 2024, the City approved Ordinance No. 4437 and executed a
Redevelopment Agreement (the "Redevelopment Agreement"), wherein the City agreed to extend
TIF and BDD incentives to the Developer for the reimbursement of certain eligible project costs to
be incurred by the Developer on property located at 109 & 120 N. Main Street and 90 E. Locust
Street (PINS 09-08-27-410-003, 09-08-27-410-004, and 09-08-27-410-026 and collectively known as
the "Property");and
WHEREAS, the Parties hereby agree to Amend the Redevelopment Agreement as set forth
below.
AMENDMENT
NOW, THEREFORE, for good and valuable consideration, the receipt of which is
acknowledged, the Parties agree as follows:
A. AMENDMENT TO SECTION "A. PRELIMINARY STATEMENTS"
Section A(4) of the Redevelopment Agreement shall be deleted in its entirety and replaced with the
following:
4. The Developer agrees to complete the Project and verify TIF Eligible Costs and BDD Eligible
Costs as required in Section "E"of the Redevelopment Agreement on or before August 30,
2025, subject to extension due to Force Majeure as described in Section "I" of the
Redevelopment Agreement.
B.AMENDMENT TO SECTION"E. PAYMENT OF ELIGIBLE PROJECT COSTS"
Section E(1) of the Redevelopment Agreement shall be deleted in its entirety and replaced with the
following:
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1. To receive the incentives set forth in Section `B"of the Redevelopment Agreement, the
Developer must submit documentation using the Request for Verification of Eligible Pr ject Costs
form attached to the Redevelopment Agreement in Exhibit "5" (the "Requisition") to
provide evidence of all TIF Eligible Costs for land acquisition and BDD Eligible Costs
incurred by it with respect to the Project on or before August 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.
Absent the City's written consent for an extension provided to the Developer, any costs
submitted after August 30,2025,will not be eligible for reimbursement.
Section E(1)(a)is hereby added to the Redevelopment Agreement by this First Amendment:
a. Absent the City's written consent for an extension provided to the Developer, any
costs submitted after August 30,2025,will not be eligible for reimbursement. Upon
receiving written request from the Developer on or before August 30, 2025, the
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)"as amended above.
C.AMENDMENT TO SECTION "I. TIME; FORCE MAJEURE"
Section I of the Redevelopment Agreement shall be deleted in its entirety and replaced with the
following:
For this Agreement,time is of the essence. The Developer agrees to complete the Project on
or before August 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 `7P" of the Redevelopment
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 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.
D. PRIOR AGREEMENT TERMS APPLY
All terms of the Redevelopment Agreement and any Exhibits attached thereto shall apply to this First
Amendment and remain effective unless specifically modified by this First Amendment to the
Redevelopment Agreement.
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THIS FIRST AMENDMENT TO THE REDEVELOPMENT 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 309 DEVELQPMENTS, LLC, an Illinois
Municipal Corporation Limi d i Compan
10, BY:
BY:
M yor vZ �' f Date: 51,7
Date: "J
ATTE ED BY: JED RHO S indivi u y
BY:
Jed ades
ty Clerk
Date: a5 Sl z�
Date:
MAX KLTM ,individually
BY. �
ax Kumer .� C
Date:
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