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HomeMy WebLinkAboutOrdinance #2054 : CITY OF CANTON, FULTON, ILLINOIS ORDINANCENO. 05~ CANTON 4-A TAX INCREMENT FINANCING (TIF) DISTRICT AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A REDEVELOPMENT AGREEMENT by and between THE CITY OF CANTON and KATHLEEN A. MCGUIRE (D/B/A ~~THE COUNTRY KENNELS") ADOPTED BY THE CORPORATE AUTHORITIES OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS, ON THE ~ DAY OF NOVEMBER, 2011. „ ~ CITY OF CANTON, ILLINOIS: ORDINANCE NO. ~v CANTON 4-A TAX INCREMENT FINANCING (TIF) DISTRICT AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A REDEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF CANTON AND KATHLEEN A. MCGUIRE (D/B/A "THE COUNTRY KENNELS") BE IT ORDAINED BY THE CITY OF CANTON THAT: SECTION ONE: The Redevelopment Agreement with Kathleen A. McGuire (D/B/A "The Country Kennels") (F_xhibitA attached) is hereby approved. SECTION TWO: The Mayor is hereby authorized and directed to enter into and execute on behalf of the City said Redevelopment Agreement and the City C1eYk of the City of Canton is hereb~ authorized and directed to attest such execution. SECTION THREE: The Redevelopment Agreement shall be effective the date of its approval on the `2Z'day~ of November, 2011. SECTION FOUR: This Ordinance shall be in full force and effect from and after its passage and approval as required by law. [Balalac•e ofpage i.r intentio~lally ~larak.] PASSED, APPROVED AND ADOPTED b~~ the Corporate Authorities of the Ciry of Canton, Fulton County, Illinois, on the ~ day of November, A.D., 2011, and deposited and filed in the Office of the City C1eYk of said Ciry on that date. MAYOR & ALDERMEN AYE VOTE NAY VOTE ABSTAIN / ABSENT Ald. David Pickel Ald. James Hartford ~ Ald. Jeffrey FYitz r11d. Craig West ~ Ald. Gerald Ellis Ald. Justin Nelson Ald. Eric Schenck Ald. Jeremy Pasley Hon. Kevin Meade, Mayor TOTAL VOTES / APPROVED: - ~ Date ~l / .f 3 / 2011 Hon. Kevin Meade, Mayor, City of Canton ATTEST: , Date: ZZ~/ 2011 Diana , ity Clerk, Cit~~ of Canton A'1'"1'~1CI11~91:N'PS: EXHIBITA:I2I?lll?V'1?LOP~91?N'I':A(~RI?I?i~ff?N'I' BI?'1'WI?I?N'1'I ll? (;I'1'YOl~ C,1N"PON AND K.~1'1'[ I],I?I:N ~1cc,uuii~: ~1~/H/;~ ~°couN~i~~zl~ ~i~:NNi~:~.s°~ -3- EXHIBIT A REDEVELOPMENT AGREEMENT by and between CITY OF CANTON and KATHLEEN A. MCGUIRE (D/B/A ~~THE COUNTRY KENNELS) CANTON 4-A TAX INCREMENT FINANCING (TIF) DISTRICT -4- TAX INCREMENT FINANCING DISTRICT REDEVELOPMENT AGREEMENT by and between CITY OF CANTON, FULTON COLTNTY, ILLINOIS and KATHLEEN A. MCGUIRE (D/B/A "THE COLJNTRY KENNELS") CANTON 4-A TAX INCREMENT FINANCING DISTRICT OCTOBER 2011 REDEVELOPMENT AGREEMENT CITY OF CANTON & KATHLEEN A. MCGUIRE CANTON 4-A TIF DISTRICT THIS REDEVELOPMENT AGREEMENT (including Exhibits) ("Agreement") is entered into this ~ day of October, 2011, by the City of Canton (the "City"), an Illinois Municipal Corporation, Fulton County, Illinois, and Kathleen A. McGuire (the "Developer"). PREAMBLE WHEREAS, the Cit~~ 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 Cit~~ and providing employment for its citizens; and WHEREAS, pursuant to the Tax Increment r~llocation Redevelopment Act, 65 ILCS 5/11-74.4.4 et seq., as amended (the "Act"), the City has the authority to provide incenrives to owners or prospective owners of real property to develop, redevelop, and rehabilitate such property b~~ reimbursing the owners for certain costs fYOm resulting increases in real estate tax revenues; and WHEREAS, on December 31, 1987, recognizing the need to foster the development, expansion and revitalization of certain propeYties which are vacant, underutilized or undeveloped, the City adopted Tax Increment Financing under the Act, approved a Redevelopment Plan and designated a Redevelopment l~rea, pursuant to the r1ct, known as Canton 4-A Tax Increment Financing District ( the "TIF District"); and WHEREAS, the DevelopeY is the owner of propert~~ within the boundaries TIF District located at 9 Opportunit~~ Lane, Canton, Illinois ("Propert~~"); and WHEREAS, the Developer is the owner of a business ("Countr5~ Kennels") located on said PropeYty and is proceeding with plans to expand the existing pet facilityr, based upon the availability of incenrives by the Ciry; and WHEREAS, the City has the authorit~~ under the Act to incur Redevelopment Project Costs ("Eligible PYOject Costs") and to reimburse Developer for such costs; and WHEREAS, the Developer xequests that incenuves for the de~relopment be pro~~ided b~~ the City and that such incentives include the reimbursement of a poruon of the DevelopeY's Eligible Project Costs; and WHEREAS, the City has determined that this Project requires the incentives requested and that said Project will, as a part of the Plan, promote the health, safet}~ and welfare of the City and its citizens by attracting private investment to prevent blight and deterioration, to de~relop underutilized piopert~~, and to provide emplopment for its citizens and generall~~ to enhance the economy of the Cit~~; and A1cGuire - Cn~iton d-A TIF Disi~~ict Page 2 of 9 WHEREAS, the City shall pay~ to the Developer a one-time lump sum pa~~ment in the amount of Six Thousand Sixry-Eight Dollars and Thirty-Seven Cents ($6,068.37) from the TIF District's Special Tax Allocation Fund for the reimbursement of Eligible Project Costs, which shall be paid upon verification of the Developer's Eligible Project Costs as set forth in Section E; and WHEREAS, the Cit~~ is entering into this Agreement to induce the Developer to expand the e~sting building located on said Property; and WHEREAS, in consideration of the execution of this Agreement and in reliance thereon, the DevelopeY has proceed with its plans to complete the Pxoject as set forth herein. AGREEMENTS NOW, THEREFORE, for good and valuable consideration, the receipt of which is acknowledged, the Parties agree as follows: A. PRELIMINARY STATEMENTS 1. The Parties agree that the matters set forth in the recitals above are true and coYrect and form a part of this Agreement, and are to be construed as binding statements of this Agreement. 2. Any terms which are not defined in this Agreement shall have the same meaning as they do in the Act, unless indicated to the contrar~. 3. The Cit~~ in cxtcnding incentives for this Project is relying on the representarion of the Developer contained herein to substantiall~ complete the Project as set forth herein. 4. Each of the Paxties represents that it has taken all actions necessary to authorize its YepYesentarives to execute this Agreement. B. ADOPTION OF TAX INCREMENT FINANCING The City has created a Tax Incxement Financing District known as the "Canton 4-A TIF District" which includes the Developer's Propert~~. The City has appioved certain Rede~relopment Project Costs in its Kedevelopment Plan, including the rypes described in Exhibit 1 for the Developer's Project which shall be hereafter known as the Kathleen A. McGuire Project. C. INCENTIVES In considerauon for the Developer completing its Project as set forth herein, the City agrees to extend to De~reloper the following incentives to assist Developer's Project: 1. the Cit~~ shall pa~~ ro the De~reloper a one-time lump sam pa5~ment in the amount of Six Thousand Sixty-Eight Dollars and Thirry-Seven Cents ($6,068.37) from the'1"IF District's Special "1 ax Allocation Fund for the reimbursement of the Developer's F~.ligible Project Costs ~l9cGz~ire - Camm~ ~-A T/F Disb•ict Page 3 of 9 (see ExhiGit which shall be paid upon verification of the Eligible Project Costs as set forth in Section E. D. LIMITATION OF INCENTIVES TO DEVELOPER The Developer shall be reimbursed b~~ the Cit~~ only for Eligible PYOject Costs permitted by the Act and incurred as a result of the Project, not to exceed Six Thousand Sixty-Eight Dollars and Thirty-Seven Cents ($6,068.37), from the TIF District's Special Tax Allocation Fund. E. PAYMENT OF ELIGIBLE PROJECT COSTS 1. Payment to the Developer for Eligible Project Costs as set forth by the Act shall be made by a Requisirion for Payment of Private Development Redevelopment Costs ("Requisirion") submitted to Jacob & Klein, Ltd. and the Economic Development Group, Ltd. ( collectively the "Administrator") and subject to their approval of the costs. 2. The Kequisition must be accompanied by verified bills or statements of suppliers, contractors, or professionals together with Mechanic's Lien ~~'aivers as required by the City. 3. The Administrator shall approvc or disappro~re the Requisition by written receipt to the Developer within thirty (30) business da~~s after receipt of the Requisition. Approval of the Requisition will not be unreasonabl}~ withhcld. If the Requisition is disapproved by the Administrator, the reasons for disallowance will be set forth in writing and the Developer may Yesubmit the Requisition with such additional information as ma~ be required and the same procedures set forth herein shall apply to such re-subinittal. 4. The sum approved shall then be paid from the'I'II~ District's Special'I"ax Allocarion Fund to the Developer as soon as sums aYe available. PaS~ment shall be made within thirt~~ (30) days after approval. 5. The Parties acknowledge that the determination of Eligible Project Costs, and, theiefore, qualification for reimbursement hereunder are subject to changes or interpYetauon made b~ amendments to the Act, administratiee rules or judicial interpretation during the term of this Agreement. The City has no obligation to the De~reloper to attempt to modify those decisions, but will reasonably assist the Developer in evei-~~ respect to obtain approval of I,ligible Pxoject Costs. 6. Eligible Project Costs shall be broadl~ defined in the Redevelopment Plan to ~include all costs defined in the Act as Rede~relopment Project Costs. F. LIMITED OBLIGATION The City's obligation hereunder to pay the De~reloper for Eligible Project Costs is a limited obligation to be paid solel~~ as set forth herein. Said obligation does not now and shall never constitute an indebtedness of the Cit~ within the meaning of an}~ State of Illinois constitutional or statutoiy piovision, and shall not consutute or give rise to a pccuniaiy liability of the Cit~~ or a charge or lien against the Cit~~'s McGz~ire - Canton 4-A 7'IH~ District Page -1 of 9 general credit or ta~ng power. G. LIMITED LIABILITY OF CITY TO OTHERS FOR DEVELOPER'S EXPENSES There shall be no obligation by the Cit~~ to make any pa~~ments to any person other than the Developer, nor shall the City be obligated to make direct payments to any other cont~actor, subcontractor, mechanic or materialman providing services ox materials to the Developer for the Project. This Agreement shall not cYeate any third-party rights and the DevelopeY shall indemnify and hold the Ciry haYmless on any claims arising out of the Developer's construcuon activities. H. COOPERATION OF THE PARTIES The City and the Developer agree to cooperate fully with each other ~vhen Yequested to do so concerning the development of the Developer's Project. I. DEFAULT; CURE; REMEDIES In the event of a default undex this Agreement by any part~~ hereto (the "Defaulting Party"), which default is not cured within the cure period provided for bclow, then the other part~~ (the "Non-defaulting Party") shall have an action foY damages, or in the event damages would not fairly compensate the Non- defaulring Party's for the Defaulting Part~~'s bYeach of this Agreement, the Non-defaulting Party shall have such otheY e9uit~~ rights and remedies as are available to them at law or in equit~. Any damages payable by the City hereunder shall be limited to the real estate tax incremcnt payable to the Developer under the teYms of this Agreement. In the event a Defaulting PaYty shall fail to pcrform a monetar5~ covenant which it is required to perform under this Agreement, it shall not be deemed to be in default under this Agreement unless it shall have failed to perfoYm such monetary covenant within thirt~ (30) da~~s of its receipt of a notice fxom a Non- defaulting Party specifping that it has failed to perform such monetary covenant In the event a Defaulring Part~~ fails to perform an~~ non-monetar~ covenant as and when it is required to under this Agreement, it shall not be deemed to be in default if it shall have cured such default within thirty (30) days of its xeceipt of a notice from a Non-defaulting Part}~ specifying the nature of the defauit, provided, however, with respect to those non-monetai-~~ defaults which aYe not capable of being cured within such thirt~ (30) day period, it shall not be deemed to be in default if it commences curing within such thiYry (30) da~~s period, and theieafter diligendy and continuousl~~ prosecutes the cure of such default until the same has been cured. J. ASSIGNMENT The rights and obligations of the Developer under this l~greement shall be full~~ assignable by means of written notice to the City~. The Cit~~ shall not unreasonabl~~ withhold its consent pro~rided that the nature of the Project is not substantially changed. No such assignment shall be deemed to releasc the Developer of its obligations to the Cit~~ under this I~gieement unless the specific consent of the City to release the Developer's obligations is first obtained in writing. McGurr~e - C'a»tori -t-A TIF District Page 5 of 9 K. WAIVER Any~ party to this Agreement maj~ elect to waive any remedy it maj~ enjoy hereunder, provided that no such waiver shall be deemed to exist unless the part~~ waiving such right of remedy does so in writing. No such waiver shall obligate such paxty 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. L. SEVERABILITY If an~~ secrion, subsection, term oY 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. M. NOTICES All notices, demands, requests, consents, approvals or other instruments required or permitted by this r~greement shall be in writing and shall be executed by the Part~~ or an officer, agent or attorne~ of the Part~, and shall be deemed to have been effective as of the date of actual delivery, if delivered personally, or as of the third (3`d) day from and including the date of posting, if mailed by registered or certified mail, return receipt requested, with postage prepud addressed as follows: To lleveloper. To Cin~: Kathleen t1. McGuue City Clexk, 9 Opportunity Lane City Hall Canton, IL 61520 2 Main Street Canton, IL 61520 lI%i1h io~y to: Jacob & Klein, Ltd. Econoinic Development Group, Ltd. 1701 Cleai~vater tlvenue Bloomington, Illinois 61704 '1'elephone: (309)664-7777 N. SUCCESSORS IN INTEREST Subject to the Provisions of Paragraph L abo~=e, this l~greement shall be binding upon and inure to the benefit of the Parties hereto and their respectivc successors and assigns. McG2~ire - Caratoi7 4-A T/F Districl Pnge 6 of 9 O. NO JOINT VENTURE, AGENCY, OR PARTNERSHIP CREATED Neither anything in this Agreement no any acts of the Parries to this Agreement shall be construed by the Parties or any third person to create the relationship of a partnership, agency, or joint venture bet~veen or among such Parties. P. INDEMNIFICATION OF CITY Developer acknowledges that it is responsible for compliance with the Illinois PYevailing Wage Act, to the extent such is applicable. Applicability is to be determined by Developer and Developer shall indemnif~~ and hold harmless the Cin~, and all Cit~~ elected or appointed officials, officers, employees, agents, representatives, engineers, consultants and attoYneS~s (collecrivel~, 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 applicabilit~~, determination, and/or payments made under the Illinois Prevailing Wage Act (820 ILCS 130~0.01 et.seq.), the Illinois Procurement Code, and~oY 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~oY penalues imposed, and pay all defense costs of City, including but not limited to the reasonable attorney fees of City. Q. WARRANTY OF SIGNATORIES The signatories of Developer warrant full authorit~ to both execute this Agreement and to bind the entiry in which they are signing on behalf of. R. TERM OF THE AGREEMENT This Agreement shall expire upon the expiration of the Redevelopment Plan adopted by the Ciry or sooner if the Developer has received all incentives included herein. (The Galqnce of tl~i.r page as intetztionUlly Glq~zk.) McGuire - Cantort d-A T!F Disfr~ict Page 7 of 9 IN WITNESS WHEREOF the Parties hereto ha~~e caused this Agreement to be executed by their duly authorized officeYS on the above date at Canton, Illinois. CITY OF CANTON, ILLINOIS ~ . ~ By: Mayor ATTES . - Ci erk DEVELOPER: KATHLEEN A. MCGUIRE < A->cGuire - Cantor7 4-A TlF District Page 8 of 9 EXHIBIT 1 SUMMARY OF ESTIMATED TIF ELIGIBLE PROJECT COSTS Kathleen A. McGuiYe's Project Canton 4-A TIF District in the City of Canton, Fulton County, Illinois ~ Project Descriprion: The Developer is expanding its pet facility located on the PYOperty. Location: 9 Opportunit~~ Lane, Canton, IL Eligible Project Costs: Rehab/Renovation Costs $236,400.00 Total Estimated Eligible Project Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $236,400.00 The City agrees to reimburse the Developer for Eligible Projects incurred in the amount of $6,068.37 as set forth in the Agreement, and shall not be obligated to reimburse the Developer for any Eligible Project Costs exceeding $6,0G8.37. A4cGuire - Canton ~1-A T/1%Disb~rct Page 9 of 9