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HomeMy WebLinkAboutOrdinance #4516 - BDD Redevelopment Agreement with William Vincent and Carol Vincent ( 82 N. Main 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 2�D DAY OF DECEMBER,2025 ADOPTED ORDINANCE NO. 4516 ,A TRUE AND CORRECT COPY OF WHICH IS CONTAINED IN THIS PAMPHLET. GIVEN UNDER MY HAND AND SEAL THIS 2ND DAY OF DECEMBER,2025. (SEAL) tIDRI�Aj. MITH-WALTERS Y CLERK CITY OF CANTON, ILLINOIS ORDINANCE NO. 4516 AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF THE FIRST AMENDMENT TO BUSINESS DEVELOPMENT DISTRICT (BDD)NO. 1 REDEVELOPMENT AGREEMENT by and between THE CITY OF CANTON, FULTON COUNTY, ILLINOIS and WILLIAM VINCENT AND CAROL VINCENT (82 N. MAIN ST.) PASSED BY THE CITY COUNCIL OF THE CITY OF CANTON,FULTON COUNTY, ILLINOIS, ON THE 2ND DAY OF DECEMBER, 2025. PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY COUNCIL OF THE CITY OF CANTON,FULTON COUNTY, ILLINOIS, THIS 2ND DAY OF DECEMBER, 2025. EFFECTIVE: DECEMBER 2,2025 ORDINANCE NO. 4516 CITY OF CANTON, ILLINOIS AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF THE FIRST AMENDMENT TO A BUSINESS DEVELOPMENT DISTRICT (BDD) NO. 1 REDEVELOPMENT AGREEMENT by and between THE CITY OF CANTON and WILLIAM VINCENT AND CAROL VINCENT (82 N. MAIN ST.) 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 BDD Redevelopment Agreement by and between the City of Canton and William Vincent,individually,and Carol Vincent,individually (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 City of Canton 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 September 30,2026. 4. The Redevelopment Agreement shall be effective the date of its approval on the 2"d day of December, 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 this page h intentionally left blank.) ii PASSED APPROVED AND ADOPTED by the Mayor and City Council of the City of Canton this 2❑d day of December, 2025. MAYOR&ALDERMEN AYE VOTE NAY VOTE ABSTAIN/ABSENT x David Pickel x Andra Chamberlin x Patrick Ketchum x Ralph Grimm x Greg Gossett x Justin Nelson x John Lovell x Angela Hale x Kent A. McDowell,Mayor TOTAL VOTES 8 APPROVED: Date / 2025 Ke t AA4cEowell,Mayor, City of Canton 1 ATTEST: - Date: _h:�-/ --y—/2025 14nea Smith-Walters, City Clerk, City of Canton ATTACHMENT: 1. EXHIBIT A. First Amendment to BDD Redevelopment Agreement by and between the City of Canton and William Vincent and Carol Vincent (82 N. Main St.). iii EXHIBIT A. CITY OF CANTON, ILLINOIS FIRST AMENDMENT TO A BUSINESS DEVELOPMENT DISTRICT (BDD) NO. 1 REDEVELOPMENT AGREEMENT by and between CITY OF CANTON, ILLINOIS and WILLIAM VINCENT AND CAROL VINCENT (82 N. MAIN ST.) THIS FIRST AMENDMENT (including Exhibits, hereinafter referred to as the "Agreement as amended")is entered into this 2'day of December,2025,by and between the City of Canton (the "City', an Illinois Municipal Corporation, Fulton County, Illinois, and William Vincent,individually,and Carol Vincent,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 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, the Developer has acquired title to real property located within the Business District at 82 N.Main St. (PIN 09-08-27-412-004),which is hereinafter referred to as the"Property," and based in part on incentives made available by the City, the Developer shall proceed to undertake exterior and interior rehabilitation,renovations and repairs to the building located on the Property at a total estimated cost of$200,000 (the"Project';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 1 eligible business district project costs;and WHEREAS,on September 15,2025,the City approved Ordinance No. 4501 and executed a Redevelopment Agreement (the "Redevelopment Agreement"), wherein the City agreed to extend BDD incentives to the Developer for the reimbursement of certain eligible project costs to be incurred by the Developer on property located at 82 N. Main St. (PIN 09-08-27-412-004),which is hereinafter referred to as the"Property,"and based in part on incentives made available by the City,the Developer shall proceed to undertake exterior and interior rehabilitation,renovations and repairs to the building located on the Property at a total estimated cost of$200,000 (the"Project");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: 1. The Developer agrees to complete the Project and verify eligible project costs as required in Section "E"below on or before September 30,2026, subject to exception of Force Majeure as described in Section `I"of this Agreement as herein amended. B.AMENDMENT TO SECTION"B. INCENTIVES" Section B(4)shall be inserted by this First Amendment to the Agreement as follows: 4. In the event the current lease by and between the Developer and the operator of the Camino Real(current commercial tenant) terminates and the business vacates the building during the term of this Agreement,the Developer shall be deemed to be in compliance with Section B(e)(i) if a new lease is secured by the Developer with a tenant who is operating a comparable sales- tax generating retail-restaurant business in the building within one-hundred twenty (120) days following said termination of the current lease. C. 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: 1. To receive the incentives set forth in Section "B" above, the Developer must submit documentation using the Request for Verification of Eligible Project Costs form attached hereto as Exhibit "4"(also referred to as the "Requisition'D to provide evidence of all BDD Eligible Project Costs incurred by it with respect to the Project on or before September 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), 2 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, including initial remedial BDD eligible repairs and renovation costs incurred for this Project on or after September 12,2024. Absent the City's written consent for an extension provided to the Developer, any costs submitted after September 30,2026,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 September 30, 2026, will not be eligible for reimbursement. Upon receiving written request from the Developer on or before September 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)"as amended above. D. 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 September 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 `7T"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. E. AMENDMENT TO "EXHIBIT 3 PROMISSORY NOTE" Exhibit 3 `Pmmissog Note"of the Redevelopment Agreement shall be deleted in its entirety and replaced with "Exhibit I"attached hereto. F. 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. (The remainder of this page is intentionally left blank.) 3 THIS FIRST AMENDMENI'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 Cite of Canton, Illinois. CITY ( DEVELOPER CITY OF CANTON, ILLINOIS,an Illinois WILLIAM VINCENT,individual :Municipal Corporation + BY- �� '--w William Vincent B1': K1a�•or J Datc: /� ''-a� Date: ATTESTED BY: CAROL VINCENT, individual]? � c r BY: its Clerk Carol Vincent .. Date: /4Z -5-01S Date: EXHIBIT 1.ATTACHED: Promisson- Note as emended 4 EXHIBIT 1 PROMISSORY NOTE AS AMENDED FOR VALUE RECEIVED, William Vincent and Carol Vincent (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 Fifty Thousand Dollars ($50,000.00) 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 82 N. Main St., Canton, Illinois (PIN 09-08-27-412-004 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 William Vincent and Carol Vincent (the "Redevelopment Agreement") entered into the 15' day of September, 2025 and Amended on the 2'day of December,2025. 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 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 $50,000.00, 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: i. Subject to Section B(4)of the Agreement as amended,fails to timely complete the Project and maintain constant, continuous operation of the Camino Real restaurant or a comparable facility located on the Property from the time the Project is complete and continuing for the term of this Agreement. ii. Fails to annually provide verification of the payment of the real estate taxes for the property during the term of this Agreement. iii. Files for bankruptcy or otherwise become insolvent during the term of this Agreement. iv. If the Property or any portion thereof becomes the subject of foreclosure proceedings during the term of this Agreement. v. Adequate property insurance on the Property is not maintained during the term of the loan to cover the replacement cost of the completed Project. vi. Any default by the Borrower/Developer of any term or condition set forth in the Redevelopment Agreement. As signatories to this Agreement and the 5 _ �. I Note,William Vincent and Carol Vincent shall be guarantors for the Note and shall be jointly and severally liable in the event of a default thereof by the Developer. If,during the term of the Redevelopment Agreement or this Note, the Developer sells or conveys all or a portion of the Property, then William Vincent and Carol Vincent shall remain as guarantors for this Note and shall be jointly and severally liable in the event of a default thereof by any assignee or successor of the Developer, unless otherwise agreed to in writing by the Lender. 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`h) 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,William Vincent and Carol Vincent 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 conccrning this Note shall,at the sole election of the Lender,be adjudicated in Fulton County,Illinois. CITY BORROWER CITY OF CANTON,ILLINOIS,an Illinois WILL VINCENT,indi dually Municipal Corporation ' BY: am Vincent 7 BY. ��a -- ND May ate: �� G l 5 Date: ATTESTED BY: CARO NCEN vi8ualk- BY: Ca 1 mt / j Clerk Date: A Date: 6