HomeMy WebLinkAboutOrdinance # 1961CITY OF CANTON, ILLINOIS
ORDINANCE NO. 1961
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF A PROFESSIONAL SERVICES AGREEMENT
for
ADMINISTRATION OF
CANTON AREA 4-A TAX INCREMENT FINANCING DISTRICT
by and between
CITY OF CANTON, FULTON, COUNTY, ILLINOIS
and
THOMAS N. JACOB & ASSOCIATES, LTD.
and
THE ECONOMIC DEVELOPMENT GROUP, LTD.
ADOPTED BY THE MAYOR AND CITY COUNCIL
OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS,
ON THE 20TH DAY OF JANUARY, 2009.
ORDINANCE NO. 1961
CITY OF CANTON, ILLINOIS
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF A PROFESSIONAL SERVICES AGREEMENT
for
ADMINISTRATION OF
CANTON AREA 4-A TAX INCREMENT FINANCING DISTRICT
by and between
CITY OF CANTON, FULTON, COUNTY, ILLINOIS
and
THOMAS N. JACOB & ASSOCIATES, LTD.
and
THE ECONOMIC DEVELOPMENT GROUP, LTD.
PREAMBLE
WHEREAS, the City of Canton, Fulton County, Illinois ("City"), established a Tax Increment
Financing District known as the Canton Atea 4-A (the "TIF District") pursuant to the Tax Increment
Allocation Redevelopment Act (the "Act"), 65 ILCS 5/11-74.4-1 et .req. on July 6, 2004; and
WHEREAS, the City desires to engage the professional services of Thomas N. Jacob &
Associates, Ltd. to render administrative services and legal advice and The Economic Development
Group, Ltd. to render technical advice to assist the City in administering the TIF District.
THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF
THE CITY OF CANTON THAT:
1) The Professional Services Agreement by and between the City of Canton, Thomas N. Jacob &
Associates, Ltd. and The Economic Development Group, Ltd. (Exhibit A attached) is hereby
approved.
2) The Mayor is hereby authorized and directed to enter into and execute on behalf of the City said
Professional Services Agreement and the City Clerk of the City of Canton is hereby authorized
and directed to attest such execution.
3) The Professional Services Agreement shall be effective on February 1, 2009.
4) This Ordinance shall be in full force and effect from and after its passage and approval as
required by law.
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PASSED, APPROVED AND ADOPTED by the Mayor and Ciry Council of the Ciry of Canton this
20`h day of January, 2009.
COUNCIL MEMBERS AYES NAYS ABSTAIN/ABSENT
Alderman Joe Berardi
Alderman Pam Ihnes
Alderman Sonya Lewis
Alderman David Nidiffer
Alderman Larry Sarff
Alderman Eric Schenck
Alderman Jason Strandberg
Alderman Craig West
TOTALS:
APPRO~E
Mayor
ATTEST:
Ciry Clerk
EXHIBIT A ATTACHED: Professional Services Agreement
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EXHIBIT A
PROFESSIONAL SERVICES AGREEMENT
Page 4 of 4
PROFESSIONAL SERVICES AGREEMENT
for
ADMINISTRATION OF
CANTON AREA 4-A
TAX INCREMENT FINANCING DISTRICT
by and between
THOMAS N. JACOB & ASSOCIATES, LTD. and
THE ECONOMIC DEVELOPMENT GROUP, LTD.
and
THE CITY OF CANTON, FULTON COUNTY, ILLINOIS
JANUARY aoo~
PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT is entered into this 20`'' day of January, 2009, by and between the CITY OF
CANTON ("CITY"); THOMAS N. JACOB AND ASSOCIATES, LTD. ("TNJ") Bloomington,
Illinois and THE ECONOMIC DEVELOPMENT GROUP, LTD. ("EDG"), Bloomington,
Illinois.
WITNESSETH:
WHEREAS, the City of Canton, Fulton County, Illinois, established a Tax Increment Financing
District pursuant to the Tax Increment Allocation Redevelopment Act (the "Act"), 65 ILCS 5/ 11-74.4-1
et seq. on December 31, 1987; and
WHEREAS, the City desires to engage the professional services of TNJ to render administrative
services and legal advice and EDG to render technical advice to assist the City in administering a Tax
Increment Financing District known as the CANTON AREA 4-A TAX INCREMENT
FINANCING DISTRICT (the "TIF District").
NOW, THEREFORE, the Parties mutually agree as follows:
~1. Ciry to Engage TNJ and EDG.
A. The City agrees hereby to engage the services of TNJ and EDG for the purposes set forth
herein and TNJ agrees to provide all legal advice to EDG and the City to prepare or
coordinate the preparation of Reports, Analyses, Notices and Documentation (including
those reports prepared by other professionals) necessary to administer the Canton Area 4-A
TIF District as required pursuant to State Statutes and as outlined in the Scope of Professional
Services Section 3 (A) (2).
~2. Scope of Professional Services.
A. TNJ and EDG shall perform, when necessary, the services set forth in Section 3 (A) (2) to
assist the City in the administration of the TIF District.
B. The City understands and acknowledges that as a part of the administration of the TIF
Canton Area 4-A TIF District Page 1 of 7
Administrative Professional Services Agreement
District as set forth in Section 3 (A) (2), TNJ and EDG shall rely on the work of others,
including the City's Auditors, Attorney, Clerk and Treasurer; the Fulton County Assessor
and County Clerk; the Illinois Department of Revenue (IDOR); the Illinois Department of
Commerce and Economic Opportunity (DCEO); the Illinois Comptroller's Office and the
Illinois State Board of Education for information and documentation necessary for the
administration of the TIF District.
~3. Terms, Time of Employment and Scope of Services.
A. Administration of TIF District:
1) Terms of Agreement: The initial term of the Annual Administrative Services
provided in this Agreement shall commence February 1, 2009 or upon the execution
of this Agreement, whichever occurs first, and end on April 30, 2009. This
Agreement shall automatically renew on May 1, 2009 for a term of one (1) fiscal year
ending Apri130, 2010. This Agreement maybe terminated by written notice from the
City to TNJ and EDG no later than ninety (90) days prior to the end of the contract
period. Upon receiving written notice of termination, TNJ and EDG is to provide
to the City a final invoice for professional fees and costs incurred as of the date of the
terrrunatton.
The parties agree that Thomas N. Jacob & Associates, Ltd. (TNJ), as Attorneys, will
undertake those responsibilities that require legal advice or preparation under this
Agreement on behalf of the City or EDG. The Economic Development Group, Ltd.
(EDG) is a separate corporate entity established by Thomas N. Jacob and is owned
in whole or in part by him. He is also the principal owner of Thomas N. Jacob and
Associates, Ltd. The City is entering into this Agreement voluntarily and with
informed consent after the opportunity to consult with independent counsel as to the
ownership of both entities by Thomas N. Jacob. The legal duties and responsibilities
required of him under this Agreement shall continue to be performed by TNJ. The
total fees and costs to be paid hereunder, when billed by each of the separate entities,
will not be duplicated and will not exceed the total fees and costs provided for herein.
To the extent possible, TNJ and EDG will attempt to include in Private
Redevelopment Agreements provisions allocating a portion of the Annual
Canton Area 4-A TIF District Page 2 of 7
Administtative Ptofessional Services Agreement
Administrative Fee and Annual Costs to those Private Developments on a pro-rata
basis determined by the increment generated by those Developments which have
Redevelopment Agreements.
2) Annual Administrative Services provided to the TIF District during the term of
this Agreement by TNJ and EDG are set forth below. Annual Costs associated with
these activities are set forth in Section 4 (B).
a) Provide City with on-call legal and consulting services on matters relating to the
TIF District as needed.
b) Consult with and coordinate administrative activities with the City Clerk,
Treasurer, Certified Public Accountants, and Administrators.
c) Consult with and coordinate TIF-related economic development activities with
the Executive Director of the Spoon River Partnership for Economic
Development ("SRPED")
d) Track and monitor the growth of Real Estate and Sales Tax Increments during
the term of this Agreement.
e) Negotiate terms of TIF Reimbursements and prepare Redevelopment
Agreements with Developers. With regard to said Agreements, TNJ and EDG
shall not obligate the City to said Agreement without first obtaining the
approval of the terms of said Agreement from the Mayor and City Council.
f) Consult with Developers and their Accountants regarding TIF Redevelopment
Agreements and Reimbursements.
g) Communicate with Developers and the County Supervisor of Assessments to
review improvements, paid tax bills and changes in Equalized Assessed
Valuations.
h) Advise City on matters relating to Developer Reimbursements (e.g., verify paid
property tax bills and eligible project costs, and advise the City to make
Canton Area 4-A TIF District Page 3 of 7
Administtative Ptofessional Services Agreement
payments) during the term of this Agreement.
i) Provide Ciry with aRequisition/Payment Approval process.
j) Advise Ciry on matters relating to payments to other taxing bodies under
Intergovernmental Agreements.
k) Prepare the FY2009 and FY2010 TIF District Annual Reports for submission
to City and other taxing districts.
1) Provide legal opinion on matters relating to the FY2009 and FY2010 Annual
Reports as required by the TIF Act (TNJ only).
m) Prepare, certify, and submit the FY2009 and FY2010 Annual TIF District
Reports to the Office of the Illinois Comptroller.
n) Conduct the Annual Joint Review Board Meeting(s) relating to the FY2009 and
FY2010 Annual Reports as required by the TIF Act for the City.
o) Consult with Canton Community Unit School District No.66 to determine and
analyze potential impacts, evaluate alternative approaches for assisting schools
and prepare necessary Intergovernmental Agreements as requested by the City.
p) Assist the City and SRPED evaluate potential impacts and periodic requests
from taxing bodies, if any, for TIF reimbursements.
q) Provide Special Counsel Opinion on matters relating to the TIF District.
r) Prepare pro-forma TIF Projections for the City, SRPED and Developers
relating to prospective Redevelopment Projects.
s) Analyze potential use of TIF Revenue Bonds or Developer Notes and arrange
for Bond Counsel when required by Ciry or Developer.
t) Separate from Joint Review Board meetings and other statutory requirements,
Canton Axea 4-A TIF District Page 4 of 7
Administrative Professional Services Agreement
TNJ/EDG staff will, at minimum, meet with City officials and SREDP staff
annually to review progress and re-affirm the goals and objectives for the
Redevelopment Plan and Project.
3) Annual Administrative Fee - Attorne~TNJ) and EDG: On an annual basis, all
of the legal review of documents and matters relating to the statutory compliance of
public and private development activities occurring within the TIF District are
provided by TNJ in the Annual Administrative Fee. TNJ will provide legal services
required in the preparation of new Redevelopment Agreements and other legal
documents and legal opinions.
~4. Time and Method of Payment.
A) Calculation of Fees: Administrative Fees paid to TNJ and EDG relate to services
described in Section 3 (A) (2). The City will pay TNJ and EDG a fixed fee in the following
amounts for services provided in each term of this Agreement:
1) Ciry will pay TNJ and EDG one thousand two hundred fifty dollars ($1,250.00)
upon the execution of this Agreement for services relating to the initial term of
February 1, 2009 through Apri130, 2009.
2) The Ciry will pay TNJ and EDG five thousand dollars ($5,000.00) for the period
May 1, 2009 to Apri130, 2010 following the automatic renewal of this Agreement on
May 1, 2009. TNJ and EDG will bill the City for services provided during the renewal
period on a quarterly basis commencing on May 1, 2009.
B) Annual Costs: All Annual Costs incurred by TNJ and EDG as part of the administration
of the TIF District shall be reimbursed on a quarterly basis commencing May 1, 2009. Such
Annual Costs include:
1) All reasonable travel and subsistence expenses incurred by TNJ and EDG while away
from Bloomington, Illinois, performing said services listed in Section 3 (A) (2). All
travel will be reimbursed for mileage at the maximum rate permitted by Internal
Revenue Service Rules and Regulations for that year; and
Canton Area 4-A TIF District Page 5 of 7
Administrative Professional Services Agreement
2) All other costs including photocopying, report materials, binding, mailings, postage,
and telecommunication charges, shall be provided on acost-reimbursement basis at
rates charged by TNJ or EDG.
3) Additional administrative support services which are not included in the Scope of
Services provided in Section 3 (A) (2) maybe provided on acost-reimbursement basis
at rates charged by TNJ or EDG. However, such additional services shall not be
undertaken by TNJ or EDG during the term of this Agreement without prior consent
of the Ciry in advance of such services to be performed or amended to this
Agreement as provided by written authorization of the Mayor.
~5. Additional Services.
A. TNJ may, in addition, be retained by the Ciry as its Special Attorney to perform other
professional services outside the Scope of Duties set forth herein, including representation
of the Ciry before State agencies or the Illinois Legislature. Such representation shall be at
the Attorney's then current hourly rate for similar services. Any such representation shall
be pursuant to a written agreement between the parties.
~6. Limitations on Professional Services.
A. This Agreement does not include representation in any Court case resulting from the
establishment of the District or Plan and Annual Administration of the TIF District.
~7. Amendments to this Agreement.
A. The parties hereto may amend this Agreement at any time by their mutual consent which
amendment must be in writing and executed by the parties.
~thi.r space is intentionally blank)
Canton Area 4-A TIF District Page 6 of 7
Administrative Professional Services Agreement
IN WITNESS WHEREOF, the City, TNJ and EDG have executed this Professional Services
Agreement on the day and year above written.
THE CITY OF CANTON, an Illinois
Municipal Corporation:
2 N Main Street
Canton, IL 61520-2618
Phone: (309) 647-0020
Fax: (309) 647-1310
By:
Mayor
Date
Attest:
`~~ ~
Ci Clerk Date
THOMAS N. JACOB & ASSOCIATES,
LTD.:
1701 Clearwater Avenue
Bloomington, IL 61704
Phone: (309) 664-7777
Fax: (309) 664-7878
B /zz O
Date
THE ECONOMIC DEVELOPMENT
GROUP, LTD., an Illinois Corporation:
1701 Clearwater Avenue
Bloomington, IL 61704
PH: (309) 664-7777
FAX: (309) 66 -7878
9
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Date
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Canton Area 4-A TIF District
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