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HomeMy WebLinkAboutOrdinance #4560 - Redevelopment Agreement with Encore Dance Academy/West Locust Canton/Angela Orwig 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 2NrD DAY OF JUNE, 2026, ADOPTED ORDINANCE NO. 4560, A TRUE AND CORRECT COPY OF WHICH IS CONTAINED IN THIS PAMPHLET. GIVEN UNDER MY HAND AND SEAL THIS 2ND DAY OF JUNE, 2026. (SEAL) i NDREA SMITH-WALTERS ITY CLERK CITY OF CANTON, ILLINOIS ORDINANCE NO. 4 5 6 0 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 ENCORE DANCE ACADEMY,L.L.C. and WEST LOCUST CANTON,L.L.C. and ANGELA ORWIG PASSED BY THE CITY COUNCIL OF THE CITY OF CANTON,FULTON COUNTY, ILLINOIS, ON THE 2ND DAY OF JUNE, 2026. PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY COUNCIL OF THE CITY OF CANTON,FULTON COUNTY, ILLINOIS, THIS 2ND DAY OF JUNE,2026. EFFECTIVE: JUNE 2, 2026 2 CITY OF CANTON, ILLINOIS: ORDINANCE NO. 4560 CANTON 2—RT. 9/CHESTNUT ST. TAX INCREMENT FINANCING (TIF) DISTRICT and CANTON BUSINESS DISTRICT (BD) NO. 1 AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A FIRST AMENDMENT TO THE REDEVELOPMENT AGREEMENT by and between THE CITY OF CANTON and ENCORE DANCE ACADEMY,L.L.C. and WEST LOCUST CANTON,L.L.C. and ANGELA ORWIG BE IT ORDAINED BY THE CITY OF CANTON, FULTON COUNTY, ILLINOIS THAT: 1. The First Amendment to the Redevelopment Agreement with Encore Dance Academy, L.L.C. and Angela Orwig(ExhibitA attached) 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 2"d day of June, 2026. 4. This Ordinance shall be in full force and effect from and after its passage and approval as required by law. (Tbe remainder of this page is intentionally left blank.) 3 PASSED, APPROVED AND ADOPTED by the Corporate Authorities of the City of Canton, Fulton County, Illinois, on the 2"d day of June, 2026, and deposited and filed in the Office of the City Clerk of said City on that date. MAYOR&ALDERMEN AYE VOTE NAY VOTE ABSTAIN/ABSENT Dave Pickel Andra Chamberlin Patrick Ketcham Ralph Grimm Greg Gossett Justin Nelson John Lovell Angela Hale Kent A.McDowell,Mayor TOTAL VOTES 5 APPROVED: —, Date: Ob /0;7--/2026 en A. McDowell, Mayef, City of Can on ATTEST: t , A/xDate: (e / �/2026 ndrea Smith-Walters, City Clerk, City of Canton ATTACHMENTS: EXHIBIT A. FIRST AMENDMENT TO THE REDEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF CANTON AND ENCORE DANCE ACADEMY, L.L.C. WEST LOCUST CANTON, L.L.C. AND ANGELA ORWIG. 4 EXHIBIT A CANTON 2—RT. 9/CHESTNUT ST. TAX INCREMENT FINANCING (TIF) DISTRICT and CANTON BUSINESS DISTRICT (BD) NO. 1 FIRST AMENDMENT TO THE REDEVELOPMENT AGREEMENT by and between THE CITY OF CANTON and ENCORE DANCE ACADEMY,L.L.C. and WEST LOCUST CANTON, L.L.C. and ANGELA ORWIG 5 CANTON 2 - RT. 9/CHESTNUT ST. TAX INCREMENT FINANCING DISTRICT and CANTON BUSINESS DISTRICT NO. 1 FIRST AMENDMENT TO THE REDEVELOPMENT AGREEMENT by and between CITY OF CANTON, FULTON COUNTY, ILLINOIS and ENCORE DANCE ACADEMY,L.L.C. and WEST LOCUST CANTON, L.L.C. and ANGELA ORWIG JUNE 2, 2026 CANTON 2— RT. 9/CHESTNUT ST.TIF DISTRICT and CANTON BD NO. 1 FIRST AMENDMENT TO THE REDEVELOPMENT AGREEMENT by and between CITY OF CANTON and ENCORE DANCE ACADEMY, L.L.C. and WEST LOCUST CANTON, L.L.C. and ANGELA ORWIG THIS FIRST AMENDMENT REDEVELOPMENT AGREEMENT (including Exhibits) is entered into this 2"d day of June, 2026, by the City of Canton (the "City"), an Illinois Municipal Corporation, Fulton County, Illinois, and Encore Dance Academy, L.L.C., an Illinois Limited Liability Company,and West Locust Canton,L.L.C.,an Illinois Limited Liability Company, and Angela Orwig, 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 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 City and providing employment for its citizens;and WHEREAS, pursuant to 65 ILCS 5/8-1-2.5, a municipality may appropriate and expend funds for economic development purposes, including without limitation for commercial enterprises that are deemed necessary or desirable for the promotion of economic development within the community;and WHEREAS,pursuant to the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11- 74.4.4 et. seq., as amended (the"TIF Act' ,the City has the authority to provide incentives to owners or prospective owners of real property to develop, redevelop, and rehabilitate such property by reimbursing the owners for certain costs from resulting increases in real estate tax revenues;and WHEREAS,on February 6,2012,recognizing the need to foster the development,expansion and revitalization of certain properties which are vacant, underutilized, or undeveloped, the City adopted Tax Increment Financing under the TIF Act, approved a Redevelopment Plan, and designated a Redevelopment Area known as the"Canton 2—Rt.9/Chestnut St.TIF District"and hereinafter referred to as the"TIF District';and WHEREAS, on June 3, 2025, the Parties entered into a Redevelopment Agreement (the "Original Agreement") for property located at 1000 W. Locust St.,Canton,Illinois,(PIN 09-08-28- 300-010, the "Property") that was acquired by the Developer in 2024 and is located within the TIF District Redevelopment Project Area;and WHEREAS, said Property is also located within the City of Canton Business District (BD) No. 1 Redevelopment Project Area, which was established by the City on March 15, 2022, by Ordinance No.4281,amended on September 20,2022 by Ordinance No.4307 and further ratified on 2 October 25, 2022 by Ordinance No. 4315, and amended on March 3, 2026 by Ordinance No. 4531, pursuant to the Business District Development and Redevelopment Act, 65 ILCS 5/11-74.3 et. seq. (the`BD Act' ;and WHEREAS, pursuant to the BD 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, the Developer has acquired the Property and intends to repair, renovate and rehabilitate the commercial building located thereon for operation of the `Encore Dance Academy"(the "Project', and the Developer has secured the Property Landlord's consent for undertaking the Project based upon incentives made available by the City;and 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 incremental taxes will be used,in part,to finance incentives to assist development within the TIF District;and WHEREAS, the Developer's proposed Project is consistent with the TIF District Redevelopment Plan and Projects for the Redevelopment Project Area and shall further conform to the land uses of the City as adopted;and WHEREAS, the Developer requested that incentives for the development be provided by the City from incremental increases in real estate taxes of the City generated from its Project and the City agreed to such incentives;and WHEREAS, the City has determined that this Project required the incentives requested as set forth herein and that said Project will,as a part of the Plan,promote the health,safety and welfare of the City and its citizens by attracting private investment to prevent blight and deterioration and to generally enhance the economy of the City;and WHEREAS, the City has reviewed the conditions of the Property and has reason to believe that the costs of the necessary public and private improvements to be incurred by the Developer in furtherance of the Project are eligible project costs under the TIF Act and BD Act and are consistent with the Redevelopment Plans of the City;and WHEREAS, the City is entering into this Agreement having encouraged and induced the Developer to proceed with the Project located on said Property. FIRST AMENDMENT NOW,THEREFORE,the Parties,for good and valuable consideration,the receipt of which is acknowledged,agree to amend the terms of the Original Agreement as follows: A. AMENDED "A. PRELIMINARY STATEMENTS" SectionA(4)of the Original Agreement shall be deleted in its entirety and replaced with the following: 4. The Developer shall complete the Project on or before December 31, 2026, subject to extension due to Force Majeure (defined below). The Project shall be deemed to be 3 complete when the repairs, renovations, and rehabilitation of the building located on the Property (Exhibit "I") have been completed and the Encore Dance Academy is operating and open to the public. B. AMENDED "L.TIME; FORCE MAJEURE" Section L of the Original Agreement shall be deleted in its entirety and replaced with the following: For this Agreement,time is of the essence.The Developer agrees to complete this Project on or before December 31, 2026. Failure to do so shall be cause for the City to declare the Developer in default and unilaterally terminate this Agreement. 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 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, acts caused directly or indirectly by the City (or the City's agents, employees or invitees) when applicable to Developer or third parties, or any other cause beyond the reasonable control of Developer or the City. C. PRIOR 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. 4 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 Redevelopment 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 ENCORE DANCE ACADEMY, L.L.C., an Municipal Corporation Illinois Limited Liabili Company BY: 'v� BY: Kent A. McDowell,/May r ngela O g,Manager Date: (a � Date: ( nlsl WEST LOCUST CANTON, L.L.C., an :TT E TED BY: Illinois Limited Liability Company drea`Falters-Smith, ity Clerk nge 4la ig, anager Date: Date: nAngeZla ORWIG,individually g Date: 5