HomeMy WebLinkAboutOrdinance #4505 - Redevelopment Agreement with Newburn Enterprises and Kim Newburn (American Grille) **** LAST ORDINANCE TO BE CODIFIED 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 In DAY OF OCTOBER, 2025 ADOPTED ORDINANCE NO. 4505 , A TRUE
AND CORRECT COPY OF WHICH IS CONTAINED IN THIS PAMPHLET.
GIVEN UNDER MY HAND AND SEAL THIS 7TH DAY OF OCTOBER,2025.
(SEAL)
r
6NDREA7SMITH-WALTERS
ITY CLERK
CITY OF CANTON, ILLINOIS
ORDINANCE NO. 4505
AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A
FIRST AMENDMENT TO THE
CANTON BUSINESS DEVELOPMENT DISTRICT NO. 1
REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON, FULTON COUNTY, ILLINOIS
and
NEWBURN ENTERPRISES,INC.
and
KIM NEWBURN,D.B.A.,AMERICAN GRILLE
(525 S. 5th Ave.)
PASSED BY THE CITY COUNCIL
OF THE CITY OF CANTON,FULTON COUNTY, ILLINOIS,
ON THE 7'rH DAY OF OCTOBER, 2025.
PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY
COUNCIL OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS,
THIS 71"` DAY OF OCTOBER, 2025.
EFFECTIVE: OCTOBER 7,2025
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ORDINANCE NO. 4505
CITY OF CANTON, ILLINOIS
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF A FIRST AMENDMENT TO THE
BUSINESS DEVELOPMENT DISTRICT NO. 1 REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON
and
NEWBURN ENTERPRISES,INC.
and
KIM NEWBURN,D.B.A.,AMERICAN GRILLE
(525 S. 5th Ave.)
WHEREAS, the Mayor and City Council of the City of Canton, Fulton County, Illinois (the
"City"), have hereby determined that the First Amendment to the Canton, Illinois Business
Development District No. 1 Redevelopment Agreement by and between the City of Canton and
Newburn Enterprises, Inc., an Illinois Corporation and Kim Newburn d.b.a. American Grille
(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. The First Amendment to the City of Canton, Illinois Business Development District No. 1
(the"Business District' 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 First Amendment to the Business District 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 April 30, 2026.
4. The First Amendment to the Business District Redevelopment Agreement shall be effective
the date of its approval on the 7`'day of October,2025.
5. This Ordinance shall be in full force and effect from and after its passage and approval as
required by law.
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PASSED APPROVED AND ADOPTED by the Mayor and City Council of the City of
Canton this 71h day of October, 2025.
MAYOR&ALDERMEN AYE VOTE NAY VOTE ABSTAIN/ABSENT
x
Dave Pickel
x
Andra Chamberlin
x
Patrick Ketcham
x
Ralph Grimm
x
Greg Gossett
x
Justin Nelson
x
John Lovell
x
Angela Hale
x
Kent A.McDowell,Mayor
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TOTAL VOTES
APPROVED: t� A
Date l _S1/ 2025
Mayor, City of Canton
�J U ATTEST: / Date: / / 2025
ity Clerk, ity of Canton
ATTACHMENTS:
1. EXHIBIT A. First Amendment to the City of Canton, Illinois Business Development
District No. 1 Redevelopment Agreement by and between the City of Canton and Newburn
Enterprises, Inc. and Kim Newburn, d.b.a.,American Grille.
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EXHIBIT A
CITY OF CANTON, ILLINOIS
FIRST AMENDMENT TO THE
BUSINESS DEVELOPMENT DISTRICT NO. 1
REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON
and
NEWBURN ENTERPRISES, INC.
and
KIM NEWBURN, D.B.A.,AMERICAN GRILLE
(525 S. 5th Ave.)
OCTOBER 7, 2025
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shall not in any event exceed Twenty Five Percent(25%) of the total verified eligible project
costs incurred for the Project or Ten Thousand and 00/100 Dollars ($10,000.00),
whichever is less.
C.AMENDED "E. PAYMENT OF ELIGIBLE PROJECT COSTS"
Sections E(1)and E(2)of the Original Agreement shall be deleted in its entirety and replaced with the
following.
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, 2026. 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 30,2026,will not be eligible for reimbursement.
a. Upon receiving written request from the Developer on or before April 30, 2026, 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)above.
D. AMENDED "I. TIME; FORCE MAJEURE"
Section I of the Original 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 April 30, 2026, 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.
E. AMENDED "R. TERM OF THE AGREEMENT"
Section R of the Original Agreement shall be deleted in its entirety and replaced with the following:
Notwithstanding anything in this Agreement to the contrary, this Agreement shall expire on
April 30,2026,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.
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THIS AMENDMENT 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 First amendment 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 NEWBURN ENTERPRISES, INC., an
Municipal Corporation Illinois Corporation
4VN7f
BY: V`�- " ."Al
1�I yor B ` �F1i�✓v'�T
Date: D New urn, President
Date: w
AT STED Y:
KIM NEWBURN, D.B.A.,AMERICAN
GRILLE, individually
C t Clerk Date: /V`,U- 2S /
B
Newburn, d.b.a., American Grille
Date: /0
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CITY OF CANTON, ILLINOIS
FIRST AMENDMENT TO THE
BUSINESS DEVELOPMENT DISTRICT NO. 1
REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON, ILLINOIS
and
NEWBURN ENTERPRISES, INC.
and
KIM NEWBURN,D.B.A.,AMERICAN GRILLE
(525 S. 5th Ave.)
THIS FIRST AMENDMENT (including Exhibits, hereinafter referred to as the
"Amendment") is entered into this 7' day of October, 2025, by the City of Canton (the "City'D, an
Illinois Municipal Corporation, Fulton County, Illinois, and Newburn Enterprises, Inc., an Illinois
Corporation and Kim Newburn d.b.a. American Grille (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 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 seg.), 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, on June 3, 2025 the Parties entered into a Redevelopment Agreement (the
"Original Agreement's for property owned by the Developer located within the Business District at
525 S. 5th Ave. (PIN 09-08-35-116-013) (the "Property"); and based in part on incentives made
available by the City, the Developer has proceeded with plans to complete repairs and renovations to
the building and other structures located on the Property at a total estimated cost of$36,477 (the
"Project';and
WHEREAS, the Developer's proposed Project is consistent with the land uses of the City
and the Business District Plan as adopted;and
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WHEREAS, as an incentive to undertake the Project, the Developer has requested
reimbursement for a portion of its BDD eligible project costs;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 Amendment and in reliance thereon,
the Developer is prepared to redevelop the Property;and
WHEREAS, the City is entering into this First Amendment to the Original Agreement to
induce the Developer to complete the Project located on the 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 "A. PRELIMINARY STATEMENTS"
SectionA(3)of the Original Agreement shall be deleted in its entirety and replaced with the following:
3. The Developer agrees to complete the Project and verify eligible project costs as required in
Section E below on or before April 30, 2026, subject to exception of Force Majeure as
described in Section I below.
B. AMENDED "B. INCENTIVES"
Section B(1)of the Original Agreement shall be deleted in its entirety and replaced with the following:
1. Upon verification of the Business District eligible project costs incurred in furtherance of the
Project by the Developer pursuant to Section Ebelow,the City shall reimburse the Developer
a total amount not to exceed Twenty Five Percent(25%)of the verified eligible project costs
incurred for the Project or Seven Thousand and 00/100 Dollars ($7,000.00), whichever is
less, from the Canton BDD Special Tax Allocation Fund.
2. Upon the timely completion of the Project and verification of additional Business District
eligible project costs incurred in furtherance of the Project by the Developer pursuant to
Section Ebelow,the City shall reimburse the Developer an additional amount not to exceed
Twenty Five Percent (25%) of the verified eligible project costs incurred for the Project or
Three Thousand and 00/100 Dollars ($3,000.00),whichever is less,from the Canton BDD
Special Tax Allocation Fund.
a. Any TIF Eligible Project Costs for which the Developer is otherwise reimbursed from
the proceeds of any insurance policy shall not be used for purposes of verifying costs
pursuant to Section E below and shall not be used to calculate the reimbursement
owed pursuant to this Agreement.
3. The total reimbursement paid to the Developer under Sections B(1)and B(2)of the Agreement
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