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HomeMy WebLinkAboutOrdinance #2088 - redevelopment agreemetn between the City of Canton and Michelle Behymer (B-Designed Salon) CITY OF CANTON, FULTON, ILLINOIS ORDINANCE NO. - T "2_ t.~' ~ ~ CANTON 1- DOWNTOWN/5TH AVENUE TAX INCREMENT FINANCING (TIF) DISTRICT AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A REDEVELOPMENT AGREEMENT by and between THE CITY OF CANTON and MICHELLE BEHYMER (D/B/A "B-DESIGNED SALON") ADOPTED BY THE CORPORATE AUTHORITIES OF THE CITY OF CANTON, FUL ON COUNTY, ILLINOIS, ON THE DAY OF , 2012. CITY OF CANTON, ILLINOIS: ORDINANCE NO. t~ L.Q ~ CANTON 1- DOWNTOWN/5TH AVENUE TAX INCREMENT FINANCING (TIF) DISTRICT AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A REDEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF CANTON AND MICHELLE BEHYMER (D/B/A ~~B-DESIGNED SALON") BE IT ORDAINED BY THE CITY OF CANTON THAT: SECTION ONE: The Redevelopment Agreement with 1~lichelle Behymer (D/B/A `B-designed Salon") (Exbi6itA attached) is herebv approved. SECTION TWO: The Ma}~or is hereby authorized and directed to enter into and execute on behalf of the City said Redevelopment Agreement and the Cih~ Clerk of the Cit~~ of Canton is hereby authorized and directed to attest such execution. SECTION THREE The Rede~relopment _~~reement sh~11 be effective the date of its approval on the day of , ~~g?. SECTION FOUR: This Ordinance shall be in full force and effect from and after its passagc and approval as required by law. ~ [Bcrlqjzce of~page i.r iratentiorrcrlly hlank.] PASSED, APPROVED AND ADOPTED b~ the Corporate r~uthorities of the Ciry of Canton, Fulton County, Illinois, on the day of , A.D., 2012, and deposited and filed in thc Office of the Cit~~ Clerk of said Citv on that ate. MAYOR & ALDERMEN AYE VOTE NAY VOTE ABSTAIN / ABSENT ~Id. David Pickel ~ld. James Hartford :11d. Jeffrej~ Fritz 'X ~ld. Craig ~~/est ~ :~ld. CJerald F_,llis ~11d. Justin Nelson , ~11d. Fiic Schenck ,11d. Jerem~- Pasle~~ Hon. Keein I~1e~de, Ma~•or TOTAL VOTES APPROVED: , , llatc ~ / 1~ / ?01~ ~n. Kevi eade, l~layo~-~Cit~~ of Canton ~ ATTEST: { , Datc: ~ / 2012 Diane Tucker, City Clerk, Cit~~ of Canton ;A'1"1':A(:I I~I1?N'l'S: EXHIBITA: lzl?lll?~'I?].(>Phfl?N'1',AC~RI?I~:~II~:ti"1' BI~`l'~`(/I~:I?l~"1'I II~: (:I"l'1" OI~ C;:W"1'ON ;ANll ~~IICf II~:l.l,l~: Hi~;i rti~~tiii~:lz ~t~/fi/n ~°ti-i~i~:sic~Ni~;i~ s:~~,~~N°°~ -3- CANTON 1- DOWNTOWN/5TH AVENUE TAX INCREMENT FINANCING DISTRICT TIF REDEVELOPMENT AGREEMENT by and between THE CITY OF CANTON, FULTON COUNTY, ILLINOIS and MICHELLE BEHYMER (D/B/A ~~B-DESIGNED SALON") MAY 2012 REDEVELOPMENT AGREEMENT CITY OF CANTON & MICHELLE BEHYMER (D/B/A "B-DESIGNED SALON") CANTON 1- DOWNTOWN/5TH AVENUE TIF DISTRICT THIS AGREEMENT (incluciing ~.x~l~ibit is entered into this day of MaS~, 2012, by the Ciry of Canton ("City"), an Illinois 1~lunicipal Corporation, l~~ulton Counh~, Illinois; and Michelle Behymer ("Developer"), individually. PREAMBLE WHEREAS, the Cit~~ has the authorin~ to promote the health, safet~~, and welfare oE the City and its citizens, and to prevent the spread of blight and deterioration and inadequate public facilities, by promoring the development of private investment propern~ thereby increasing the tax base of the Citv and providing employment for its citizens. ' WHEREAS, pursuant to the Tax Increment ~llocation Redevelopment r~ct, 65 ILCS 5/ 11-74.4 et ~-eq., as amended (the "Act"), the Ciry has the authorin° to pro~-ide incentives to owners or prospective o~vners of real property ro develop, rcdevelop, and rehabilitate such propert~~ bv reimbursing the owner for certain costs Erom resultin~ iucreases in real est~te tax re~renues and enter into contracts ~vith dcvelopers necessar~~ or incidental to the implementation of its redevelopment plan pursuant to 65 ILCS s/1i-~~+.~-4~b~ ana (i). WHEREAS, the City, recognizing the need to foster thc de~relopment, espansion and revitalization of certain properties which are ~racant, underutilized or obsolete or a combination thereof, adopted Tax Inerement Financing and created a Tax Increment 1~llocation Redevelopment l~rea under the Act known as the Canton International ~~Iai-~-ester Site Project ~~rea TIt~~ District (the "Canton II-3 TIF District" currendj~ known as the "Canton 1- Downtown/5th Avenue TIF District") on Ju15~ 6, 2004 b~~ Ordinance No. 1807; and WHEREAS, pursuant TIF ~ct, the Ciry appro~-ed the Firstl~mendment to the Canton IH TII~ District on November 22, 2011 by Ordinance No. 2052; and WHEREAS, included in the Redevelopment ~-~rea is a property locatcd at 70 North Main Street, Canton, Illinois (the "Properry") in which the Developer has acquired a leasehold interest. WHEREAS, the Developer is proceeding with plans to renovate the Yestrooms in the building (`B- designed Salon") located on the Property and is requesting incentives for the reimbursement of planning/architectural fees related to the renovation (the "Project"). WHEREAS, it is the intent of the Cin~ to encoura~e economic development which will increase the real estate tax base of the City and the tax base of other taxing bodies, which increased incremental taxes will be used, in part, to finance incentives to assist development within the Tax Increment Financing District. -1- WHEREAS, the Developer's Project is consistent ~vith the land uses of the Cit~~ as adopted. WHEREAS, the Cit~~ has the authority under the ~ct to incur Redevelopment Project Costs ("Eligible Project Costs") and to reimburse Developer for such costs pursuant to 65 ILCS 11-7~.4-4(j). WHEREAS, the Cit~~ has determined that this Developer's Project reyuires the incentives requested herein and that said Developer's Project would, as part of the Plan, promote the health, safery and welfare of the Cit~~ and its citizens b5~ attracting private investment to prevent blight and deterioration and to provide emplopment for its citizens and generall~~ to enhance the econom~~ of the City. WHEREAS, the Ciry and the Developer ("Parti~s") have agreed that the City shall provide a grant to the Developer for reimbursement of the Developer's Eligible Project Costs in the amount of $700.00 to be paid from the Tax Increment Redevelopment Fund as specified below in Section C.; Inceratiz~e.r. WHEREAS, in consideration of the execution of this l~grecment, the Developer has proceeded ~vith his Project as set forth herein. WHEREAS, the City is entering into this Agreement having encouraged and induced the Developer to reno~rate the bathrooms located in the building on said Properry. AGREEMENTS NOW, THEREFORE, the Parties, for good and valuable consideration, the receipt ot which is ackno~vled~ed, agree as follows: A. PRELIMINARY STATEMENTS 1. 'I'he Parties agree that the matters set forth in the recitals above are true and correct and form a part of this i~greement. 2. ~~n~~ terms which are not defined in this Agrcement sha]1 have the same meaning as they do in the r~ct, unless indicated to the contrarv. 3. The Ciry is extending incentives for Developer's Project in anticipation of the expected completion of the Developer's Pioject as set forth herein. 4. Each of the Parties repYesents that it has taken all actions necessaiy to authorize its representatives to execute this Agreement. B. ADOPTION OF TAX INCREMENT FINANCING The City has created a Tax Increment Financing District, currently known as "Canton 1- Downtown/5th Avenue TIF District" which includes Developer's Property. 7'he Cin~ has assisted certain Redevelopment Projects through incentives, including Developer's Project. -2- C. INCENTIVES In consideration for the Developer completing the Project as set forth herein, the City agrees to assist the Developer as follows: The Ciry shall provide a grant to the lleveloper for reimbursemcnt of the Developer's Eligible Project Costs in the amount of $700.00 for arcl~itectural fees to be paid from the Tax Inereinent Redevelopment F'und pursuant tc~ Sectioft F_, "Payr~re~zt o~Eli~ihle Projeit Co.rt.r". D. LIMITATION OF INCENTIVES TO DEVELOPER "The Developer's reimbursement shall not e~ceed $700.00 and shall only be for architectural fees related to the Project and as set forth herein. E. PAYMENT OF ELIGIBLE PROJECT COSTS 1. A request for payment to the Developer for Eligible Project Costs as set forth by the Act, shall be made by a Requisition for Payment of Private Development Redevelopment Costs (Requisition) in an amount equal to or excecding ~700.00, submitted by lleveloper to the Ciry's TIF Administrator, Jacob & Klein, Ltd. and 1'he Econotnic llevelopment Group (collectively the "Administ~ator"). 2. The Reguisition must be accompanied b~~ ~rerified bi11s or statcments of suppliers, contiactors, or professionals together ~vith ~'~lechanic's I.icn \~~'ai~-ers as required bp tl~e Cit~~'s ~dministrator or Clerk. 3. 'The Developer shall use such sums as rcimbursements for eligible expenses onl~~ to the eYtent permitted b}~ law and the Act. 4. The Administrator shall approve or disapprove the Requisition by written ieceipt to the Developer within thirt5~ (30) business davs after receipt of the Requisition. Approval of the Requisition will not be unreasonablj~ ~vithheld. If the Requisition is disapproved bj~ the Administrator (or subseguend5~ b~~ the Illinois Department of Re~~enue), the reasons for disallowance will be set forth in writing and the De~reloper ma~~ resubmit the Requisition with such addiuonal information as ma5~ be required and the same procedures set forth herein shall apply to such re-submittals. 5. The Parties acknowledge that the determination of Eligible Project Costs, and, therefore, qualification for reimbursement hereunder are subject to changes or interpretation made by amendments to the Act, administrative rules or judicial interpretation during the term of this Agreement. 6. Eligible Project Costs are broadly defined in the Redevelopment Plan to include all costs defined in the Act as Redevelopment Project Costs. -3- F. LIMITED OBLIGATION The City~'s obligation hereunder is to paj~ Developer for F.ligible Project Costs limited to $700.00 as set forth above. Said obligation does not now and shall never constitute an indebtedness of the Citv within the meaning of an5~ State of Illinois Constitutional or Statutory provision, and shall not constitute or give rise to a pecuniar5~ liabilitj~ of the CitS~ oi a char~e or lien against the Cin~'s general credit or tasing powcr. G. DEFAULT; CURE; REMEDIES In the event of a default under this Redevelopment Agreement b>> an~, par~~ hereto (the "Defaulting Party"), which default is not cured ~vithin the cure period provided for belo~v, then the other party (the "Non-defaulting Part~~") shall have an action for damages, or in the event damages would not fairly compensate the Non-defaulting Party's for the Defaulting Partj~'s breach of this Redevelopment 1lgreement, the Non-defaulting Parry shall have such other equitv rights and remedies as are available ~ to them at law or in equity. Any damages payable by the Cin~ hereunder shall be limited to the real estate tax increment payable to the Developer under die terms of this 1~greement. In the event a Defaulting Party shall fail to perform a monetai-~~ covenant which it is required to perform under this RedevelopmentAgreement, it shall not be deemed to be in default under this Redevelopment .~giecment unless it shall have f~iled to perform such monetai~~ covenant within thirty (30) da~-s of its receipt of a notice trom a Non-defaulting Part~~ specif~~ing that it has f~iled to perform such monetai-~~ co~renant In the event a Defaulting Parn~ fails to perform anti~ nonmonetaiy co~-en~nt as and ~vhen it is required to under this Redevelopment r~greement, it shall not be decmed co be in default if it shall ha~-e cured such default ~vithin thirt~~ (30) da~~s of its receipt of a notice from a Non-defaulting Part~~ specif~~ing the nature of d~e default, provided, ho~ve~rer, ~vith respect to those nonmonetai~~ defaults ~uhich are not capable of being cured within such thirt~- (30) da~~ period, it shall not be deemed to be in default if it commences curing within such thirn' (30) da~~s period, and thercatter diligentl5~ and conunuouslj~ prosecutes the cure of such default until the same has been cured. H. WAIVER l~np Parn~ to this r~greement ma5~ elect to ~vaive an~~ remedv it ma~~ enjo~~ hereunder, provided that no such waiver shall be deemed to exist unless the Party waiving such right of temed~~ does so in ~viiting. No such waiver shall obligate such Part~r to wai~re any right of remedy hereunder, or shall be deemed to constitute a~vaiver of other rights and remedies provided said Parry pursuant to this rlgreement. I. SEVERABILITY If any section, subsection, term oY provision of this AgYeement or t~ie 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. J. NOTICES r1ll 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 party or an officer, agent or attorney of the Party, and shall be deemed to have been effec~ive as of the date of actual deliver}~, if delivered -4- personally, or as of the third (3"~) da~~ from and including the date of posting, if mailed by registered or certified mail, return receipt requested, ~vith postage prepaid addressed as follows: To Developei: To Citi~: Michelle Behymer Cih° Clerk 17 East Side Squaie Ci[~ oF Cantori Canton, IL 61520 2 N. Main Strcet Canton, Illinois 61520 1(''itb ~o~p ln ; 3dmini.rtratar.• Jacob & I~lein, Ltd. The Econotnic Development Uioup, Ltd. 1?01 Cleaitivaterrlvenue Bloomington, Illinois 61704 K. NO JOINT VENTURE, AGENCY, OR PARTNERSHIP CREATED Neither anything in this Agreement nor an~~ acts of the P~rties to this Agreement shall be construed by the Parries or any third person to create tl~e relationship of a partnership, agenc5~, or joint venture between or among such Parties. L. INDEMNIFICATION OF CITY Developer acknowledges tlzat it is responsible for compliancc ~vith the Illinois Prevailing ~~/age r~ct, to the extent such is applicable. ~~pplicabilin- is to be determined b5~ De~rcloper and Developer shall indemnif5~ and hold harmless the Cin~, and all Citp elected or appointed officials, officers, emplo~~ees, agents, representatives, engineers, consultants aud attorne~~s (collectively, th~ Indemnified Parties), trom any and all claims that may be asserted against the Indemnified Parties or one or more of them, in connection with the applicabilit~~, determination, aild/or pa~~ments inade under the Illinois Prevailing Wage rlct (820ILCS 130~0.01 ei..re~.~, the Illinois Pr~curement Code, and~or any similar State or Federal la~v or regulation. This obligation to indemnifj~ and h~ld harmless obligates De~reloper to defend any such claim and~or action, pa5~ any liabilities and~or penalties imposed, and pay all defense costs of Cit~-, including but not limited to the reasonable attorney fees of Cin~. M. WARRANTY OF SIGNATORIES The signatoties of Developer warrant full authorin~ to both execute this AgYeement and to bind the entity in which they are signing on behalt of. N. TERM OF THE AGREEMENT This AgreemenC shall expire upon receipt of the incentives included herein. ~t{~e Galc~nce of~iu~e i,r interziionally Glank~ -5- IN WITNESS WHEREOF the Parues hereto have caused this ,~greement to be executed bv their du15~ authorized officers on the above date at Canton, Illinois. ~ CITY OF CANTON DEVELOPER Illinois Municipal Corporation t B~,: ~ . 1~layor _~'b ~Lichelle Beh ~m ~ ~ er te r' / ATTEST: Citv Cler D te EXHIBIT 1 SUMMARY OF ESTIMATED TIF ELIGIBLE PROJECT COSTS l~7ichelle I3ehymer - I3-designcd Salon Project Canton 1- llo~vntown/Sth r~venue 'I'Il~ District Cit~~ of Canton, l~ulton Counh~, Illinois Project Description: De~Teloper is proceedicig ~vith plans to renovate the restrooms in rhe buildin~ ("I~-designed Salon") located on the Properry and is reyuesting incentives for the reimbursement of architectural fces relatcd to the ienoeation Street Location: 70 North 1~1ain Strect, Canton, Illinois Estimated Eligible Project Costs• Planning/Architectural Fees (for bathroom improvements) . . . . . . . . . . . . . . . . . . . . . . . . . . $700.00 *Total Estimated TIF Eligible Project Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $700.00 *Although the Developer's TIF Eligible Project Costs may exceed $700.00, the City's reimbursement to the Developer shall not exceed $700.00. -7-