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HomeMy WebLinkAboutOrdinance #4536 - Redevelopment Agreement with Giant Investors, Giant Real Estate Investors, and Jeromie Hale (Phase 2) 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 25TH DAY OF MARCH, 2026 ADOPTED ORDINANCE NO. 4536 -, A TRUE AND CORRECT COPY OF WHICH IS CONTAINED IN THIS PAMPHLET. GIVEN UNDER MY HAND AND SEAL THIS 25n DAY OF MARCH,2026. (SEAL) L'aat;niv'al-"4�0 MITH-WALTERS f,NDREAj. TY CLERK CITY OF CANTON, ILLINOIS ORDINANCE NO. 4536 AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A FIRST AMENDMENT TO THE REDEVELOPMENT AGREEMENT by and between THE CITY OF CANTON, FULTON COUNTY,ILLINOIS and GIANT INVESTORS, INC. and GIANT REAL ESTATE INVESTORS, INC. and JEROMIE HALE (101 E. Elm St. / Phase 2) PASSED BY THE CITY COUNCIL OF THE CITY OF CANTON,FULTON COUNTY, ILLINOIS, ON THE 25"' DAY OF MARCH, 2026. PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY COUNCIL OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS, THIS 25T' DAY OF MARCH, 2026. EFFECTIVE: MARCH 25, 2026 2 ORDINANCE NO. 4536 CITY OF CANTON, ILLINOIS AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A FIRST AMENDMENT TO THE REDEVELOPMENT AGREEMENT by and between THE CITY OF CANTON and GIANT INVESTORS, INC. and GIANT REAL ESTATE INVESTORS, INC. and JEROMIE HALE (101 E. Elm St. / Phase 2) 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 Redevelopment Agreement by and between the City of Canton and Giant Investors, Inc., an Illinois Corporation, and Giant Real Estate Investors, Inc., an Illinois Corporation and Jeromie Hale, 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 the 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 Redevelopment Agreement and the City Clerk of the City of Canton is hereby authorized and directed to attest such execution. 3. The First Amendment to the Redevelopment Agreement shall be effective the date of its approval on the 251`' day of March,2026. 4. This Ordinance shall be in full force and effect from and after its passage and approval as required by law. 3 PASSED APPROVED AND ADOPTED by the Mayor and City Council of the City of Canton this 25' day of March, 2026. 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 S TOTAL VOTES APPROVED: 4- Date 031016 / 2026 ay r, City o (�arVon ATTEST: Date: .? / / 2026 ity Clerk,City of Canton ATTACHMENTS: 1. EXHIBIT A. First Amendment to the Redevelopment Agreement by and between the City of Canton and Giant Investors, Inc. and Giant Real Estate Investors, Inc.,and Jeromie Hale. 4 EXHIBIT A CITY OF CANTON, ILLINOIS BUSINESS DEVELOPMENT DISTRICT NO. 1 FIRST AMENDMENT TO THE REDEVELOPMENT AGREEMENT by and between CITY OF CANTON, ILLINOIS and GIANT INVESTORS, INC. and GIANT REAL ESTATE INVESTORS, INC. and JEROMIE HALE (101 E. Elm St. / Phase 2) MARCH 25, 2026 5 CITY OF CANTON, ILLINOIS BUSINESS DEVELOPMENT DISTRICT NO. 1 FIRST AMENDMENT TO THE REDEVELOPMENT AGREEMENT by and between CITY OF CANTON, ILLINOIS and GIANT INVESTORS, INC. and GIANT REAL ESTATE INVESTORS, INC. and JEROMIE HALE (101 E. Elm St. / Phase 2) THIS FIRST AMENDMENT TO THE REDEVELOPMENT AGREEMENT (including Exhibits) is entered into this 25`h day of March,2026,by the City of Canton (the "City"), an Illinois Municipal Corporation, Fulton County, Illinois, and Giant Investors, Inc., an Illinois Corporation and Giant Real Estate Investors, Inc., an Illinois Corporation and Jeromie Hale, 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 seq.), 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, on March 3, 2026, the City approved the Second Amendment to the Business District by approving Ordinance No. 4531;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 August 19,2025, the Parties entered into a Redevelopment Agreement (the "Original Agreement") for Property owned by the Developer located within the Business District at 101 E. Elm St. / Phase 2 (PIN 09-08-27-433-011) (the"Property");and 6 WHEREAS, based in part on incentives made available by the City, the Developer is proceeding with plans to undertake improvements on the Property to repair/replace HVAC and a building awning on the front of the building on the Property (the "Project") at a total estimated cost of$36,095;and WHEREAS, the Developer's proposed Project is consistent with the land uses of the City and the Business District Plan as adopted;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, the City is entering into this 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" Section A(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 "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. C.AMENDED "I. TIME; FORCE MAJEURE" Section I of the Original Agreement shall be deleted in its entirety and replaced with the following: 7 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. D. 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. E. ORIGINAL AGREEMENT TERMS APPLY All terms of the Original Agreement and any Exhibits thereto shall remain in effect and apply to this First Amendment unless specifically modified by this First Amendment. 8 THIS 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 First Amendment to the Original Agreement 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 GIANT INVESTORS, INC., an Illinois Municipal rporation Corporation BY: BY• y er e Hale, President Date Date: y ATTE ED BY: GIANT REAL ESTATE INVESTORS, INC., an Illinois Corporation V City-r lerk BY: Date: 3 Z Bill Bequeait resident Date: '34?�"�2o21s JEROMIE HALE, individually BY: e Hale Date: 9