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Home My WebLink AboutOrdinance #2095 - redevelopment agreement between the City of Canton and Jon & Kimberley Newburn CANTON 1- DOWNTOWN/5TH AVENUE TAX INCREMENT FINANCING (TIF) DISTRICT ORDINANCE NO. ~ L?`~ AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A FIRST AMENDMENT TO A TIF REDEVELOPMENT AGREEMENT by and between THE CITY OF CANTON, FULTON COUNTY, ILLINOIS and JON M. AND KIMBERLEY A. NEWBURN ADOPTED BY THE MAYOR AND THE CITY COUNCIL OF THE CITY OF CANTON, FULTON COUNTY ILLINOIS, ON THE ~ DAY OF ~~932. CCU~~I ST 2 7t 2-- CITY OF CANTON, ILLINOIS: ORDINANCE NO. ~ AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A FIRST AMENDMENT TO A TIF REDEVELOPMENT AGREEMENT BY AND BETWEEN: THE CITY OF CANTON & JON M. AND KIMBERLEY A. NEWBURN CANTON 1- DOWNTOWN/5TH AVENUE TAX INCREMENT FINANCING (TIF) DISTRICT The City Council of the City of Canton, has determined that this First Amendment to a TIF Redevelopment Agreement is in the best interests of the citizens of the City of Canton; therefore, be it ordained by the City Council of Canton, Illinois, in the County of Fulton, as follows: SECTION ONE: The First Amendment to a TIF Redevelopment Agreement by and between Jon M. and Kimberley A. Newburn, Developer, hereto is hereby approved. SECTION TWO: The Mayor is hereby authorized and directed to enter into and execute on behalf of the City said First Amendment to a TIF Redevelopment Agreement and the City Clerk of the City of Canton is hereby authorized and directed to attest such execution. SECTION THREE: This First Amendment to a TIF Redevelopment Agreement shall be effecrive the date of its approval on the ~ day of J~2. Qucj l.eST Z-- SECTION FOUR: This Ordinance shall be in full force and effect from and after its passage and approval as required by law. [The balance of the j~age is intentionally left blank.] PASSED, APPROVED AND ADOPTED by the Mayor and City Council of the City of Canton this day of~;~&~2.~u~lgT ZG~I 2._. MAYOR & ALDERMEN AYE VOTE NAY VOTE ABSTAIN / ABSENT Ald. David Pickel r11d. James Hartford X Ald. Jeffrey Fritz Ald. Craig West r11d. Gerald Ellis illd. Justin Nelson ~11d. Eric Schenck i11d. Jeremy Pasley Hon. Kevin i~feade, i~layor TOTAL VOTES: ~ ~ ~ - _ ^ : ~ . APPROVED: ~ , Date ~ / .Z ~ / 2012 Mayor, Ciry o Can ATTEST: , Date: ~ / 2012 iry Clerk, City of Canton Exhibit A Attached: First Amendment to a TIF Redevelopment ~lgreement by and between the Ciry of Canton and Jon ~1. and Kimberley A. Newburn (Canton 1- Downtown/5'h ~lvenue TIF District) EXHIBIT A FIRST AMENDMENT TO A TIF REDEVELOPMENT AGREEMENT by and between CITY OF CANTON and JON M. AND KIMBERLEY A. NEWBURN CANTON 1- DOWNTOWN/5TH AVENUE TAX INCREMENT FINANCING (TIF) DISTRICT CANTON 1- DOWNTOWN/5TH AVENUE TAX INCREMENT FINANCING DISTRICT FIRST AMENDMENT TO A TIF REDEVELOPMENT AGREEMENT by and between THE CITY OF CANTON, FULTON COUNTY, ILLINOIS and JON M. AND KIMBERLEY A. NEWBURN ~~..~;A13-Qt,(c~ ~S-~" Z G~ ~ Z FIRST AMENDMENT TO TIF REDEVELOPMENT AGREEMENT by and between CITY OF CANTON, FULTON COUNTY, ILLINOIS and JON M. AND KIMBERLEY A. NEWBURN THIS AMENDMENT TO A REDEVELOPMENT AGREEMENT is dated this day of a l.tnj 2012, by and between the City of Canton ("City"), an Illinois Municipal Corporation, Fulton County, and Jon M. and Kimberley A. Newburn (collectively "the Developer"). PREAMBLE WHEREAS, the City, recognizing the need to foster the development, expansion and revitalization of certain properries which are vacant, underutilized or obsolete or a combination thereof, adopted Tax Increment Financing and created a Tax Increment Allocation Redevelopment Area under the Act known as the Canton International Harvester Site Project Area TIF District (the "Canton IH TIF District" currendy known as the "Canton 1- Downtown/5th Avenue TIF District") on July 6, 2004 by Ordinance No. 1807; and WHEREAS, pursuant TIF Act, the City approved the First Amendment to the Canton IH TIF District on November 22, 2011 by Ordinance No. 2052; and WHEREAS, the Parries hereto entered into a Redevelopment Agreement on January 19, 2010, wherein the City agreed to extend incentives to provide reimbursement of certain Redevelopment Project Costs ("TIF Eligible Project Costs") for the Developer's Project located at 525-551 South 5`" Avenue, Canton, Illinois, for real estate property identification numbers 09-08-35-116-002, 003, 004, 005 and 006 (the "Properry"); and WHEREAS, subsequent to the approval of the Redevelopment Agreement, the Developer acquired an adjacent parcel of property, real estate property identification number 09-08-35-116-007(the "Additional Property"), and anricipates incurring additional TIF Eligible Project Costs for improvements to the Additional Property. WHEREAS, it is the intent of the City to encourage economic development which will increase the real estate tax base of the City, which increased taxes will be used, in part, to finance incenuves to assist development within the Tax Increment Financing District; and WHEREAS, the Ciry has the authority under the Act to reimburse Developer for TIF Eligible Project Costs as a result of the Developer's Project; and WHEREAS, the City desires to further assist the Developer in reimbursing the TIF Eligible Project Costs incurred as a result of the Developer's Project referenced in the original Redevelopment Agreement and anticipated improvements to the Additional Property, and is willing to increase -1- incentives to the Developer as set forth herein; and WHEREAS, the City previously agreed to reimburse the Developer twenty-five percent (25%) of the incremental increases in the real estate tax revenues generated by the Developer's Project for the life of the TIF District, not to exceed $80,000.00, for the reimbursement of the Developer's Eligible Project Costs (described in Exhibit 1 of the Original Agreement) on the Developer's Property, real estate property identificarion numbers 09-08-35-116-002, 003, 004, 005 and 006. WHEREAS, the City desires to increase the Developer's annual reimbursement to seventy-five percent (75%) of the incremental increases in the real estate tax revenues generated by the Developer's Project for the Developer's Property, real estate property idenrificarion numbers 09-08-35-116-002, 003, 004, 005 and 006, and the Additional Property, real estate property identification number 09-08-35-116- 007, not to exceed a total reimbursement to the Developer of $133,300.00; and WHEREAS, the Parties agree to Amend the terms of the original Redevelopment Agreement executed on January 19, 2010, as set forth below. INCENTIVES The 5`" full "Whereas" clause on Page 2 of the original Redevelopment Agreement and Paragraph ~ in Section C of the original Redevelopment Agreement shall be replaced by the following language: In consideration for the Developer having purchased the Property and completing the Project substanrially as set forth in Amended Exhibit 1, the City agrees to extend to the Developer the following incentives to assist the Developer's Project: 1. Seventy-five Percent (75%) of the incremental increases in real estate taxes derived from this Developer's Project, real estate property identification numbers 09-08-35-116- 002, 003, 004, 005 and 006, and the Additional Properry, real estate property identification number 09-08-35-116-007, during the remaining life of the Canton 1- Downtown/5`h Avenue TIF District, up to a total reimbursement not to exceed $133,300.00 of the Developer's Eligible Project Costs (see Amended Exhibit 1). The City will establish a separate account within the Special Tax Allocation Fund for this Canton 1- Downtown/5`h Avenue TIF District designated as the `fon M. And KimberleyA. Newburn SpecialAccourlt("Special Account"). All monies deposited to this Special Account shall be used by the City for the purposes set forth in this Agreement. LIMITATION OF INCENTIVES TO DEVELOPER 1'aragraph ~ and 2 in Section D of the oYiginal Redevelopment Agreement shall be replaced by the following language: 1. Eligible Project Costs of the Developer shall not exceed in total $133,300.00. -2- 2. The Developer shall be reimbursed by the City for all Eligible Project Costs permitted by the Act (subject to a limitation of $133,300.00), but only as set forth above and only from the Property and the Additional Property included in this Project and currendy owned by the Developer at that location. LIMITED OBLIGATION Section F of the original Redevelopment Agreement shall be replaced by the following language: The Ciry's obligation hereunder to pay Developer for TIF Eligible Project Costs is limited to $133,300.00 as set forth above. Said obligation does not now and shall never constitute and indebtedness of the City within the meaning of any State of Illinois Consututional or Statutory Provision, and shall not constitute or give rise to pecuniary liability of the City or charge or lien against the City's general credit or ta~ng power. PRIOR AGREEMENT TERMS APPLY All terms of the original Redevelopment Agreement shall apply to this Amendment and remain effecrive unless specifically modified by this Agreement. IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized officers on the above date at Canton, Illinois. CITY ELOPER / BY: ~ BY: Mayor, C~ f Canton Jo M. Newburn / , ArrEST: G~ ~ ~ ~ B ~ ity Clerk Kimberley . wburn I I:ACAN'1'( )N\C,~N'1'ON 7-l~( )W~"I'( )\w'N-~ 1'! I;1V'ILtiCI~:'I'II~\ \~;rccmcnts\tic~churn I(ntcrPrisc,\I~ir,st;Amcndmcnt\(:antun 1_llu~~~n[u~rn_~di ;1~~c 1'll~_l,t ~Arocnd Nc~~burn IZU;A_Rcvisc~ l~inal U(~?91"?.~~~~d -3- AMENDED EXHIBIT 1 SUMMARY OF ESTIMATED TIF ELIGIBLE PROJECT COSTS Jon M. and Kimberley A. Newburn Canton 1- Downtown/St" Avenue TIF District in the City of Canton, Fulton County, Illinois Project Description: Developer is proceeding with plans to prepare the site and construct a new restaurant facility and parking lot to be located at 525-551 South 5th Avenue, Canton, Illinois. PIN#s: 09-08-35-116-002; 09-08-35-116-003; 09-08-35-116-004; 09-08-35-116-005; 09-08-35-116-006;and 09-08-35-11G-007 Estimated Eligible Project Costs: Land and buildings (acquisition costs) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $182,500.00 Demolition and site preparation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $60,800.00 Professional Fees (planning, engineering, architectural, legal, other) . . . . . . . . . . . . . . . . . . $22,000.00 Utilities extension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1.000.00 Total Estimated TIF Eligible Project Costs' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $266,300.00 ~ NOTE: Cumulative Total Reimbursements of TIF Eligible Project Costs to Developer shall not exceed $133,300.00. -4-