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HomeMy WebLinkAboutOrdinance #3039 - redevelopment agreement between the City of Canton and Fuller's Jewelry CITY OF CANTON ORDINANCE NO. 3039 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 FULLER'S JEWELRY, INC. ADOPTED BY THE CORPORATE AUTHORITIES OF THE CITY OF CANTON, FULTON COUNT`Y, ILLINOIS, ON THE 3'�DAY OF DECEMBER, 2013. - CITY OF CANTON, ILLINOIS: ORDINANCE NO. 3039 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 FULLER'S JEWELRY, INC. BE IT ORDAINED BY THE CITY OF CANTON, FULTON COUNTY, ILLINOIS THAT: SECTION ONE:The Redevelopment Agreement with Fuller's Jewelry, Inc. (F.xhibit� attached) is hereby approved. SECTION TWO: The Mayor is hereby authorized and directed to enter into and execute on behalf of the Ciry said Redevelopment Agreement and the Ciry Clerk of the Ciry of Canton is hereby authorized and directed to attest such execution. SECTION THREE: The Redevelopment Agreement shall be effective the date of its approval on the 3"�day of December, 2013. SECTION FOUR: This Ordinance shall be in full force and effect from and after its passage and approval as required by law. [the remainder of this page i.r intentionally blank] PASSED, APPROVED AND ADOPTED by the Corporate Authorities of the City of Canton, Fulton Counry,Illinois,on the 3"�day of December,A.D.,2013,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 Aldertnan Pasley X Alderman Lovell X Alderman Ellis ABSTAIN Alderman Justin Nelson ABSENT Alderman Pickel X Alderman Jim Nelson X Alderman Putrich ABSTAIN Alderman West X TOTAL VOTES 5 0 3 /,� �' � APPROVED: ,Date �f--�f�01� Hon.Jef re A. F � , ayor,Ciry of Canton %� �;, - ATTEST: - �- �'�- ��C�C ,Date:�/ 3 / 2013 D a Pavley-Rock, ity Clerk,City of Canton ATTACHMENTS: EXHIBIT A. REDEVELOP�IENT AGREE:�IENT BY AND BETWEEN THE CITY OF CANTON AND FULLER'S JEWELRY,INC. II.AC.1A70AV(-.A.ATUA6UOK�S7'UAC�\_�I�IIAAI�VCIL"III�A„�canci� lillur,�cv�l�-lic,l�.�,��na:n�lll��_UIiUTA.1ACI(SO3039_Pullis�c��cln�RDA_U3Dc<^_U13.�vpd EXHIBIT A REDEVELOPMENT AGREEMENT by and between CITY OF CANTON and FULLER'S JEWELRY, INC. CANTON 1-DOWNTOWN / 5TH AVENUE TAX INCREMENT FINANCING (TIF) DISTRICT CANTON 1- DOWNTOWN/5TH AVENUE TAX INCREMENT FINANCING DISTRICT TIF REDEVELOPMENT AGREEMENT by and between THE CITY OF CANTON, FULTON COUNTY, ILLINOIS and FULLER'S JEWELRY, INC. DECEMBER 2013 REDEVELOPMENT AGREEMENT by and between CITY OF CANTON and FULLER'S JEWELRY, INC. CANTON 1-DOWNTOWN/5TH AVENUE TIF DISTRICT THIS AGREEMENT (including Exhibit 1)is entered into this day of December,2013,by the City of Canton("City"),an Illinois Municipal Corporation,Fulton County,Illinois;and Fuller's Jewelry, Inc. ("Developer"),individually. 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 promoring the development of private investment properry 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 expend funds for economic development purposes to commercial enterprises that are necessary or desirable for the promotion of economic development within the municipaliry; and WHEREAS,pursuant to the Tax Increment Allocation Redevelopment Act,65 ILCS 5/11-74.4 et seq., as amended (the "Act"), the City has the authority to provide incentives to owners or prospective owners of real property to develop,redevelop,and rehabilitate such properry by reimbursing the owner for certain costs from resulting increases in real estate tax revenues and enter into contracts with developers necessary or incidental to the implementation of its redevelopment plan pursuant to 65 ILCS 5/11-74.4-4(b) and (j);and WHEREAS,the City,recognizing the need to foster the development,expansion and revitalization of certain properties which are vacant,underutilized or obsolete or a combination thereof,adopted Tax Increment Financing and created a Tax Increment Allocarion 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,included in the Redevelopment Area is a properry located at 46 N.Main Street,Canton, Illinois(PIN 09-08-27-412-012,herein defined as the"Property")forwhich the Developer is the current owner;and WHEREAS, the Developer is requesting a loan from the City to finance the contracted labor and materials necessary to proceed with replacing an exterior load-bearing support wall of a building located 1 on the Property,because it has deteriorated and is no longer structurally sound (the"Project");and WHEREAS, it is the intent of the Ciry to encourage economic development which will increase the real estate tax base of the Ciry and the tax base of other ta�ng bodies,which increased incremental taxes will be used,in part, to finance incentives to assist development within the Tax Increment Financing District;and WHEREAS, the Developer's Project is consistent with the land uses of the City as adopted;and WHEREAS,the Ciry has the authority under the Act to incur Redevelopment Project Costs("Eligible Project Costs") and to reimburse Developer for such costs pursuant to 65 ILCS 11-74.4-4(j);and WHEREAS, the City has determined that this Developer's Project requires the incentives requested herein and that said Developer's Project would, as part of the Plan, promote the health, safety and welfare of the Ciry and its citizens by attracting private investment to prevent blight and deterioration and to provide employment for its citizens and generally to enhance the economy of the Ciry;and WHEREAS,the City and the Developer("Parries") have agreed that the City will loan the Developer $22,000 from the Canton 1 - Downtown/5th Avenue TIF District Special Tax Allocation Fund as specified below in Section C, Incentives to assist in the financing of the Developer's TIF Eligible Project Costs (see Exhibrt�;and WHEREAS,in consideration of the execution of this Agreement, the Developer shall proceed with the Project as set forth herein;and WHEREAS, the Ciry is entering into this Agreement having encouraged and induced the Developer to replace an exterior load-bearing support wall of a building located on the Property. AGREEMENTS NOW, THEREFORE, the Parties, for good and valuable consideration, the receipt of which is acknowledged,agree as follows: A. PRELIMINARY STATEMENTS 1. The Parties agree that the matters set forth in the recitals above are true and correct and form a part of this Agreement. 2. Any terms which are not defined in this Agreement shall have the same meaning as they do in the Act,unless indicated to the contrary. 3. The City is extending incenrives for Developer's Project in anticipation of the expected completion of the Developer's Project as set forth herein. 4. Each of the Parties represents that it has taken all actions necessary to authorize its representatives to execute this Agreement. 2 B.ADOPTION OF TAX INCREMENT FINANCING The City has created a Tax Increment Financing District, currendy known as "Canton 1 - Downtown/5`h Avenue TIF District" which includes the Developer's Property. The City has previously assisted certain Redevelopment Projects through TIF incentives, similar to the incentives provided herein for this Developer's Project. C. INCENTIVES In consideration for the Developer completing the Project as set forth herein,the Ciry agrees to assist the Developer as follows: 1. The City agrees to loan the Developer Twenty-two Thousand Dollars ($22,000.00) from the Canton 1 -Downtown/5th Avenue TIF District Special Tax Allocation Fund for Eligible Project Costs (see Exhibit�incurred as a result of the Developer's Project("Developer's Loan"). The conditions for the Developer's Loan shall be as follows: a) The interest rate for the loan shall be 3%;and b) The default rate for the loan shall be the Prime Rate plus 1/2%;and c) The Developer's Loan shall amortize over five(5)years and shall mature five(5)years from the date of the loan closing;and d) The Developer shall make monthly loan payments of principal and interest,beginning one (1) month after the date of the closing on the loan (see Exhibit2J. Interest shall begin to accrue on disbursements as they are made to the Developer. The Developer shall pay all interest accrued to date on the date which is one month from the loan closing;and e) The City shall take as collateral for the loan a lien a second or higher priority mortgage on the real estate commonly known as 46 N.Main Street,Canton,IL with Parcel Identification Number 09-08-27-412-012; and � The loan proceeds shall be disbursed as Developer shall from time to time request,upon Developer's submission to the Ciry and the Ciry's approval of,paid invoices for services and materials furnished to construct or provide Developer's Project. Disbursements shall be made until the earlier of six months from the date of loan closing, or the cumulative sum of$22,000 has been fu11y disbursed;and g) The Developer shall complete the Project for which the Developer's Loan is made within six (6) months from the date of the loan closing. 2. The "term of the loan" is defined as the earlier of the date on which the Developer sells the Property, the date on which the City accelerates the indebtedness under the Note based on a default under the Note or under a collateral document,or the date on which the Developer's Loan matures. 3. A separate promissory note as well as any necessary collateral documents shall be prepared in concurrence with this Agreement and attached as an Exhibit (see Exhrbit.�. 3 D. LIMITATION OF INCENTIVES TO DEVELOPER 1. The Developer's Loan shall not exceed $22,000.00 and shall only be for contracted labor and materials related to the Project and as set forth herein. 2. In the event the Developer sells the Properry that is the subject of the Developer's Loan,the entire outstanding balance of the Developer's Loan shall become due upon the date the Property is transferred to a new owner. 3. The loan disbursements must be used for reimbursement of the Developer's Eligible Project Costs and the Developer shall provide the Ciry with verified invoices or statements of the Eligible Project Costs. E. VERIFICATION OF TAX INCREMENT AND TIF ELIGIBLE PROJECT COSTS 1. It shall be the sole responsibility of the Developer to provide to the City as requested the following: a) Copies of all PAID real estate tax bills, annually, for the Property included in this Project. 2. The failure of the Developer to provide any information required herein after notice from the City,and the continued failure to provide such information within 30 days after such notice shall be considered a material breach of this Agreement and shall be cause for the City to deny payments hereunder to the Developer,which payments are conditional upon receipt of the foregoing information. 3. A request(s) for payment to the Developer for TIF Eligible Project Costs as set forth by the Act, shall be made on or before loan closing by a Requisition (see Exhibit� for Payment of Private Development Redevelopment Costs(Requisition)in an amount equal to or exceeding$22,000.00, submitted by Developer to the Ciry's TIF Administrator,Jacob&Klein,Ltd.and The Economic Development Group (collectively the "Administrator"). 4. The Requisition(s) may initially include actual bid(s) for the improvements to be undertaken and subsequendy verified within 30 days of completion of the Project with verified bills or statements of suppliers,contractors,or professionals together with Mechanic's Lien Waivers as required by the City's Administrator or Clerk. 5. The Developer shall use such loan proceeds as reimbursements for eligible expenses only to the extent permitted by law and the Act. 6. The Administrator shall approve or disapprove the Requisition(s) by written receipt to the Developer within thirty (30) business days after receipt of the Requisition. Approval of the Requisition will not be unreasonably withheld. If the Requisition is disapproved by the Administrator (or subsequendy by the Illinois Department of Revenue), the reasons for 4 disallowance will be set forth in writing and the Developer may resubmit the Requisition with such additional information as may be required and the same procedures set forth herein shall apply to such re-submittals. 7. The Parties acknowledge that the determination of Eligible Project Costs, and, therefore, qualification for reimbursement hereunder are subject to changes or interpretarion made by amendments to the Act, administrative rules or judicial interpretation during the term of this Agreement. 8. Eligible Project Costs are broadly defined in the Redevelopment Plan to include all costs defined in the Act as Redevelopment Project Costs. 9. All payments and reimbursements of TIF eligible project costs during the term of this agreement are herein subject to the Developer obtaining applicable building permits and complying with all Ciry of Canton Building and Zoning Codes as may be related to the Project. The Developer and related contractors shall consult with Ciry Staff to receive direcrions regarding zoning,utilities,fire safery and building code requirements prior to commencing with the Project and shall meet with City Staff upon request of the City or as deemed necessary during the construction period to review any revised plans to construct, enlarge, alter, repair, move, demolish or change the occupancy or use of a building or structure or to erect install, enlarge, alter, repair, remove, convert or replace any electrical,gas,mechanical or plumbing system. F. LIMITED OBLIGATION The City's obligation hereunder is to loan Developer up to $22,000 for TIF Eligible Project Costs as described in Section C above. Said obligation does not now and shall never constitute an indebtedness of the City within the meaning of any State of Illinois Constitutional or Statutory provision,and shall not constitute or give rise to a pecuniary liabiliry of the City or a charge or lien against the City's general credit or ta�ng power G. DEFAULT; CURE; REMEDIES In the event of a default under this Redevelopment Agreement by any party hereto (the "Defaulting Parry"),which default is not cured within the cure period provided for below,then the other party(the "Non-defaulting Parry") shall have an action for damages, or in the event damages would not fairly compensate the Non-defaulting Party's for the Defaulting Parry's breach of this Redevelopment Agreement, the Non-defaulting Party shall have such other equity rights and remedies as are available to them at law or in equity. Any damages payable by the City hereunder shall be limited to the real estate tax increment payable to the Developer under the terms of this Agreement. In the event a Defaulting Party shall fail to perform a monetary covenant which it is required to perform under this Redevelopment Agreement,it shall not be deemed to be in default under this Redevelopment Agreement unless it shall have failed to perform such monetary covenant within thirty(30) days of its receipt of a norice from a Non-defaulring Party specifying that it has failed to perform such monetary covenant. In the event a Defaulting Party fails to perform any nonmonetary covenant as and when it 5 is required to under this Redevelopment Agreement,it shall not be deemed to be in default if it shall have cured such default within thirry (30) days of its receipt of a norice from a Non-defaulting Party specifying the nature of the default, provided, however,with respect to those nonmonetary defaults which are not capable of being cured within such thirry(30) day period,it shall not be deemed to be in default if it commences curing within such thirty (30) days period, and thereafter diligendy and conrinuously prosecutes the cure of such default until the same has been cured. H. TIME; FORCE MAJEURE For this Agreement, time is of the essence; provided however, the Developer and City shall not be deemed in default with respect to any obligarions of this Agreement on its part to be performed if either 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 condirions and wet soil conditions, failure or interruprions of power, restrictive governmental laws and regulations, condemnarion,riots,insurrecrions,war, fuel shortages,accidents,casualties,Acts of God,acts caused direcdy or indirecdy by the Ciry(or City's agents,employees or invitees)when applicable to Developer or third parries,or any other cause beyond the reasonable control of Developer or City. I. WAIVER Any Parry to this Agreement may elect to waive any remedy it may enjoy hereunder,provided that no such waiver shall be deemed to e�st unless the Parry waiving such right of remedy does so in writing. No such waiver shall obligate such Parry to waive any right of remedy hereunder, or shall be deemed to constitute a waiver of other rights and remedies provided said Parry pursuant to this Agreement. J. SEVERABILITY If any section,subsection,term or provision of this Agreement or the application thereof to any parry 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. [the remainder of thi,r page is intentianally blankJ 6 K. NOTICES All notices,demands,requests, consents,approvals or other instruments required or permitted by this Agreement shall be in writing and shall be executed by the parry or an officer,agent or attorney of the Parry,and shall be deemed to have been effective as of the date of actual delivery,if delivered personally,or as of the third (3"�) day from and including the date of posting,if mailed by registered or certified mail,return receipt requested,with postage prepaid addressed as follows: TO CITY TO DEVELOPER Ciry Clerk Fuller's Jewelry, Inc. 2 N. Main Street %David Fuller, Owner Ciry of Canton 46 N. Main Street Canton,IL 61520 Canton,IL 61520 With copy to Admini.rtrator.• Jacob&HIein,Ltd. The Economic Development Group,Ltd. 1701 Clearwater Avenue Bloomington, Illinois 61704 L. NO JOINT VENTURE,AGENCY, OR PARTNERSHIP CREATED Neither anything in this Agreement nor any acts of the Parties to this Agreement shall be construed by the Parties or any third person to create the relationship of a partnership, agency, or joint venture between or among such Parties. M. ASSIGNMENT The rights and obligations of the Developer under this Agreement shall be fully assignable by means of written notice to the Ciry,provided that no such assignment shall be deemed to release the assignor of its obligations to the City under this Agreement unless the prior written consent of the City to the release of the assignor's obligations is first obtained. Consent shall not be unreasonably withheld provided that the nature of the Project is not substantially changed. N. INDEMNIFICATION OF CITY Developer acknowledges that it is responsible for compliance with the Illinois Prevailing Wage Act,to the extent such is applicable. Applicability is to be determined by Developer and Developer shall indemnify and hold harmless the Ciry,and all City elected or appointed officials, officers, employees� agents,representatives,engineers,consultants and attorneys(collectively,the Indemnified Parties),from any and all claims that may be asserted against the Indemnified Parties or one or more of them, in connection with the applicability,determination, and/or payments made under the Illinois Prevailing Wage Act(820ILCS 130/0.01 et.seq.),the Illinois Procurement Code,and/or any similar State or Federal law or regulation. This obligation to indemnify and hold harmless obligates Developer to defend any 7 such claim and/or action,pay any liabilities and/or penalties imposed,and pay all defense costs of City, including but not limited to the reasonable attorney fees of City. O. SUCCESSORS IN INTEREST Subject to the provisions of Paragraph M,above,this Agreement shall be binding upon and inure to the benefit of the parries hereto and their respective successors and assigns. This agreement is a covenant running with the land legally described herein. P. WARRANTY OF SIGNATORIES The signatories of Developer warrant full authority to both execute this Agreement and to bind the entity in which they are signing on behalf of. Q. TERM OF THE AGREEMENT This Agreement shall expire upon the expiration of the Developer's Loan (see Exhibit 3, Promissory Note). 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 DEVELOPER CITY OF CANTON, an Illinois Municipal FULLER'S JEWELRY, INC., an Illinois Corporation: corporari BY: �..���-� BY: - Mayo�City o on Owner r ATTEST: ��-�' %� � ATTEST:��hx����\��w.�_ Clerk,Ciry of Canton Tide: ` � �i�r����V��i�S�. EXHIBITS ARE ATTACHED AS FOLLOWS: Exhibit 1. Summary of Estimated TIF Eligible Project Costs. Exhibit 2. Loan Amortization Schedule. Exhibit 3. Promissory Note. Exhibit 4. Developer Requisirion Form. I I�.A(=/�ti7�UtiV(:/�N"CU�1-llOAC�N"1�OVA-N_�I�If AVI(Nl'1:7'll�VAgrccmcn«AI�ullcrs�c���clr�In�A(:ant��n 7'll�I_I�ullcr's�c�cclrc Inc RI>A_Kct-iscd Draf[UG llcc 3i i I 3 nc��J 8 EXHIBIT 1 SUMMARY OF ESTIMATED TIF ELIGIBLE PROJECT COSTS Fuller's Jewelry, Inc. Canton 1 -Downtown/5`h Avenue TIF District City of Canton,Fulton County, Illinois Project Descri tion: Fuller's Jewelry, Inc. requested a loan from the City's Canton 1 -Downtown/5th Avenue TIF District to finance the contracted labor and materials necessary to proceed with replacing an exterior load-bearing support wall of a building located on the Properry,because it has deteriorated and is no longer structurally sound. Street Location: 46 N. Main Street, Canton, Illinois (PIN 09-08-27-412-012) Estimated Eligible Proiect Costs: Contracted labor and materials for replacing exterior load-bearing support wall . . . . . . . . 41 596.00 Total Estimated TIF Eligible Project Costs' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $41,596.00 1 Although the Developer's TIF Eligible Project Costs may exceed$22,000.00,the Developer's Loan shall not exceed$22,000.00 pursuant to the terms and condition contained herein. 9 Loan Amortization Schedule - Fuller's Jeweiry, Inc. Enter values Loan summary Loan amount $ 22,000.00 Scheduled payment $ 395.31 Annual interest rate 3.00 � Scheduled number of payments 60 Loan period in years 5 Actual number of payments 60 Number of payments per year 12 Total early payments $ - Start date of loan 12/18/2013 Total interest $ 1,718.67 Optional extra payments $ - Lender name:ICity of Canton,TIF 1 Special Tax Allocation F�nd Pmt Beginning Scheduled Extra Ending Cumulative No. Payment Date Balance Payment Payment Total Payment Principal Interest Balance Interest 1 1/18/2014 $ 22,000.00 $ 395.31 $ - $ 395.31 $ 340.31 $ 55.00 $ 21,659.69 $ 55.00 2 2/18/2014 21,659.69 395.31 - 395.31 341.16 54.15 21,318.53 109.15 3 3/18/2014 21,318.53 395.31 - 395.31 342.01 53.30 20,976.51 162.45 4 4/18/2014 20,976.51 395.31 - 395.31 342.87 52.44 20,633.64 214.89 5 5/18/2014 20,633.64 395.31 - 395.31 343.73 51.58 20,289.91 266.47 6 6/18/2014 20,289.91 395.31 - 395.31 344.59 50.72 19,945.33 317.20 7 7/18/2014 19,945.33 395.31 - 395.31 345.45 49.86 19,599.88 367.06 8 8/18/2014 19,599.88 395.31 - 395.31 346.31 49.00 19,253.57 416.06 9 9/18/2014 19,253.57 395.31 - 395.31 347.18 48.13 18,906.39 464.19 10 10/18/2014 18,906.39 395.31 - 395.31 348.05 47.27 18,558.35 511.46 11 11/18/2014 18,558.35 395.31 - 395.31 348.92 46.40 18,209.43 557.85 12 12/18/2014 18,209.43 395.31 - 395.31 349.79 45.52 17,859.64 603.38 13 1/18/2015 17,859.64 395.31 - 395.31 350.66 44.65 17,508.98 648.03 14 2/18/2015 17,508.98 395.31 - 395.31 351.54 43.77 17,157.44 691.80 15 3/18/2015 17,157.44 395.31 - 395.31 352.42 42.89 16,805.03 734.69 16 4/18/2015 16,805.03 395.31 - 395.31 353.30 42.01 16,451.73 776.71 17 5/18/2015 16,451.73 395.31 - 395.31 354.18 41.13 16,097.54 817.84 18 6/18/2015 16,097.54 395.31 - 395.31 355.07 40.24 15,742.48 858.08 19 7/18/2015 15,742.48 395.31 - 395.31 355.96 39.36 15,386.52 897.44 20 8/18/2015 15,386.52 395.31 - 395.31 356.84 38.47 15,029.68 935.90 21 9/18/2015 15,029.68 395.31 - 395.31 357.74 37.57 14,671.94 973.48 22 10/18/2015 14,671.94 395.31 - 395.31 358.63 36.68 14,313.31 1,010.16 23 11/18/2015 14,313.31 395.31 - 395.31 359.53 35.78 13,953.78 1,045.94 24 12/18/2015 13,953.78 395.31 - 395.31 360.43 34.88 13,593.35 1,080.82 25 1/18/2016 13,593.35 395.31 - 395.31 361.33 33.98 13,232.03 1,114.81 26 2/18/2016 13,232.03 395.31 - 395.31 36223 33.08 12,869.80 1,147.89 27 3/18/2016 12,869.80 395.31 - 395.31 363.14 32.17 12,506.66 1,180.06 28 4/18/2016 12,506.66 395.31 - 395.31 364.04 31.27 12,142.61 1,211.33 29 5/18/2016 12,142.61 395.31 - 395.31 364.95 30.36 11,777.66 1,241.68 30 6/18/2016 11,777.66 395.31 - 395.31 365.87 29.44 11,411.79 1,271.13 31 7/18/2016 11,411.79 395.31 - 395.31 366.78 28.53 11,045.01 1,299.66 32 8/18/2016 11,045.01 395.31 - 395.31 367.70 27.61 10,677.31 1,327.27 33 9/18/2016 10,677.31 395.31 - 395.31 368.62 26.69 10,308.69 1,353.96 34 10/18/2016 10,308.69 395.31 - 395.31 369.54 25.77 9,939.15 1,379.74 35 11/18/2016 9,939.15 395.31 - 395.31 370.46 24.85 9,568.69 1,404.58 36 12/18/2016 9,568.69 395.31 - 395.31 371.39 23.92 9,197.30 1,428.51 Pmt Beginning Scheduled Extra Ending Cumulative No. Payment Date Balance Payment Payment Total Payment Principal Interest Balance Interest 37 1l18/2017 9,197.30 395.31 - 395.31 372.32 22.99 8,824.98 1,451.50 38 2/18/2017 8,824.98 395.31 - 395.31 37325 22.06 8,451.74 1,473.56 39 3/18/2017 8,451.74 395.31 - 395.31 374.18 21.13 8,077.55 1,494.69 40 4/18/2017 8,077.55 395.31 - 395.31 375.12 20.19 7,702.44 1,514.88 41 5/18/2017 7,702.44 395.31 - 395.31 376.06 19.26 7,326.38 1,534.14 42 6/18/2017 7,326.38 395.31 - 395.31 377.00 18.32 6,949.39 1,552.46 43 7/18/2017 6,949.39 395.31 - 395.31 377.94 17.37 6,571.45 1,569.83 44 8/18/2017 6,571.45 395.31 - 395.31 378.88 16.43 6,192.57 1,586.26 45 9/18/2017 6,192.57 395.31 - 395.31 379.83 15.48 5,812.74 1,601.74 46 10l18/2017 5,812.74 395.31 - 395.31 380.78 14.53 5,431.96 1,616.27 47 11/18/2017 5,431.96 395.31 - 395.31 381.73 13.58 5,05023 1,629.85 48 12/18/2017 5,050.23 395.31 - 395.31 382.69 12.63 4,667.54 1,642.48 49 1/18/2018 4,667.54 395.31 - 395.31 383.64 11.67 4,283.90 1,654.15 50 2/18/2018 4,283.90 395.31 - 395.31 384.60 10.71 3,899.30 1,664.86 51 3/18/2018 3,899.30 395.31 - 395.31 385.56 9.75 3,513.73 1,674.60 52 4/18/2018 3,513.73 395.31 - 395.31 386.53 8.78 3,127.21 1,683.39 53 5/18/2018 3,127.21 395.31 - 395.31 387.49 7.82 2,739.71 1,691.21 54 6/18/2018 2,739.71 395.31 - 395.31 388.46 6.85 2,351.25 1,698.06 55 7/18/2018 2,35125 395.31 - 395.31 389.43 5.88 1,961.82 1,703.93 56 8/18/2018 1,961.82 395.31 - 395.31 390.41 4.90 1,571.41 1,708.84 57 9/18/2018 1,571.41 395.31 - 395.31 391.38 3.93 1,180.03 1,712.77 58 10/18/2018 1,180.03 395.31 - 395.31 392.36 2.95 787.67 1,715.72 59 11/18/2018 787.67 395.31 - 395.31 393.34 1.97 394.33 1,717.69 60 12/18/2018 394.33 395.31 - 394.33 393.34 0.99 0.00 1,718.67 Promissory Installme�t Note 1. RECITATIONS: Date: December 18, 2013 Borrowers: Fuller's Jewelry, Inc. Borrowers' Addresses: Agent: Dan Fuller 46 North Main St. Canton, IL 61520 Lender: City of Canton Place for Payment: 2 North Main Street, Canton, Illinois 61520 Principal Amount: $22,000.00 Term: Sixty (60) monthly payments of principal and interest beginning one (1) month after the date of loan closing. Interest shall begin to accrue on disbursements as they are made (see attached Amortization Schedule) Monthly Payments: $395.31 beginning January 18, 2014 Maturity: December 18, 2018 2. PROMISE TO PAY. Borrower promises to pay lender, or order, any lawful money of the United States of America,the principal amount of twenty two thousand($22,000.00)together with interest at the rate of 3% per annum on the unpaid principal balance from the date of the first disbursement of monies, until paid in full. Borrower promises to pay Lender payments of principal and interest from January 18, 2014 to December 18, 2018. 3. INTEREST RATE. Annual interest rate on matured, unpaid amounts shall be at the rate of three percent(3%). 4. PAYMENT TERMS. Borrower will pay this loan in sixty (60) payments of three hundred ninety five dollars and thirty-one cents ($395.31) each payment, subject to the amortization schedule attached hereto and incorporated herein by reference. Borrower's first payment is due January 18, 2014, and all subsequent payments are due on the same day of each month thereafter. Borrower's final payment will be due on December 18, 201 S, and will be for all principal and accrued interest not yet paid. Payments include principal and interest. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to any unpaid collection costs; and then to any late Promissory Installment Note Page 1 of 5 charges. The annual interest rate for this promissory installment note is computed on a 365/360 basis; that is, by applying the ratio of the annual interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding. 5. PRE-PAYMENT. Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by lender in writing, relieve Borrower of obligation to continue to make payments under the amortization schedule. Rather, early payments will reduce the principal balance due and may result in Borrower making fewer payments. Borrower agrees not to send Lender's payments marked "paid in full," "without recourse," or similar language. If Borrower sends such a payment, Lender may accept it without losing any of Lender's rights under this note, and Borrower will remain obligated to pay any further amount owed to Lender. All written communications concerning disputes amounts, including any check or payment instrument that indicates that the payment constitutes "payment in full" of the amount owed where that is tendered with other conditions or limitations or as full satisfaction of the disputed amount must be made or delivered to "City of Canton, 2 N. Main Street, Canton, IL 61520". 6. PLACE FOR PAYMENT. Borrower will pay Lender at Lender's address shown above or at such other place as Lender may designate in writing. 7. DEFAULT AND ACCELERATION CLAUSE. If Borrower defaults in the payment of this note or in the performance of any obligation, including, but not limited to those noted below, and the default continues after Lender gives Borrower notice of the default and the time in which it must be cured, as may be required by law or written agreement, then the Lender may declare the unpaid principal balance on this promissory installment note immediately due. Borrower and each surety, endorser, and guarantor waive all demands for payment, presentation for payment, notices of intentions to accelerate maturity, notices of acceleration of maturity, protests and notices of protest,to the extent permitted by law. Each of the following shall constitute an event of default under this note: a. Payment default: Borrower fails to make any payment when due under this note. b. Other defaults: Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this note, or in any of their related contained in any other agreement between Lender and Borrower. c. Default in favor of third parties: Borrower or any guarantor defaults under any loan, extension of credit, security agreement, purchase for sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of the Borrower's property or Borrower's ability to repay this note or perform Borrower's obligation under this note or any other related documents. d. False statements: Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower's behalf under this note or the related documents Promissory Installment Note Page 2 of 5 as false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter. e. Insolvency: The dissolution or termination of Borrower's existence as a business, the insolvency of Borrower, the appointment of a receiver for any part of Borrower's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any preceding under any bankruptcy or insolvency laws by or against Borrower. f. Change in ownership: Any change in ownership of twenty-five percent or more of the common stock of Borrower. g. Adverse change: A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or performance of this note is impaired. h. Insecurity: Lender in good faith believes itself insecure. 8. INTEREST ON PAST DUE INSTALLMENTS AND CHARGES. All past due installments of principal and/or interest and/or all other past-due incurred charges shall bear interest after maturity at the maximum amount of interest permitted by the Laws of the State of Illinois until paid in full. Failure by Borrower to remit any payment by the tenth (lOth) day following the date that such payment is due entitles the Lender hereof to declare the entire principal and accrued interest immediately due and payable. The Lender's forbearance in enforcing a right or remedy as set forth herein shall not be deemed a waiver of said right or remedy for a subsequent cause, breach or default of the Borrower's obligations herein. 9. INTEREST. Interest on this debt evidenced by this Note shall not exceed the maximum amount of non-usurious interest that may be contracted for, taken, reserved, charged, or received under law; any interest in excess of the maximum shall be credited on the principal of the debt or, if that has been paid, refunded. On any acceleration or reyuired or permitted prepayment, any such excess shall be canceled automatically as of the acceleration or prepayment or, if already paid, credited on the principal of the debt or, if the principal of the debt has been paid, refunded. 10. FORM OF PAYMENT. Any check, draft, money order, or other instrument given in payment of all or any portion hereof may be accepted by the holder and handled in collection in the customary manner, but the same shall not constitute payment hereunder or diminish any rights of the holder hereof except to the extent that actual cash proceeds of such instruments are unconditionally received by the Lender and applied to this indebtedness in the manner elsewhere herein provided. 11. JOINT AND SEVERAL LIABILITY. For good and valuable consideration, on the date set out above, the Borrower herein identified in this instrument jointly and severally, guarantees the payment of the Promissory Installment Note. Borrower acknowledges that the Lender does not have any obligation to first demand payment from Fuller's Jewelry, Inc. Borrower further acknowledges that by attesting their signatures to this document, the Lender Promissory Installment Note Page 3 of 5 can demand payment from any and /or all of the Borrowers regardless of the financial or legal status of Fuller's Jewelry Inc. � /�— l��J��, (date) Daniel Fuller 12. ATTORNEY'S FEES; EXPENSES. If this Note is given to an attorney, including any attorney within the employ of the City of Canton, for collection or enforcement, or if suit is brought for collection or enforcement, or if it is collected or enforced through probate, bankruptcy, or other judicial proceeding, then Borrower shall pay the Lender all costs of collection and enforcement, including reasonable attorney's fees and expenses in addition to other amounts due. 13. CONFESSION OF JUDGEMENT. Borrower hereby irrevocably authorizes and empowers any attorney at law to appear in any court of record and to confess judgment against Borrower for the unpaid amount of this Note as evidenced by an affidavit signed by an officer or elected official of the Lender setting forth the amount then due, attorney's fee plus cost of suit, to release all errors, and waive all rights of appeal. If a copy of this Note, verified by an affidavit, shall have been filed in the preceding, it will not be necessary to file the ariginal as a warrant of attorney. Borrower waives the right to any stay of execution and the benefit of all exemption laws now or hereafter in effect. No single exercise of the forgoing warrant in power to confess judgment will be deemed to exhaust the power, whether or not any such exercise shall be held by any court to be invalid, violable, or void; but the power will continue undiminished and may be exercised from time to time as the Lender may elect until all amounts owed on this Note have been paid in full. Borrower hereby waives and releases any and all claims or causes of action which Borrower might have against any attorney acting under the terms of authority which Borrower has granted herein arising out of or connected with the confession of judgment hereunder. 14. SEVERABILITY. If any provision of this Note or the application thereof shall, for any reason and to any extent, be invalid or unenforceable, neither the remainder of this Note nor the application of the provision to other persons, entities or circumstances shall be affected thereby, but instead shall be enforce to the maximum extent permitted by law. 15. BINDING EFFECT. The covenants, obligations and conditions herein contained shall be binding on and inure to the benefit of the heirs, legal representatives, and assigns of the parties hereto. 16. DESCRIPTIVE HEADINGS. The descriptive headings used herein are for convenience of reference only and they are not intended to have any affect whatsoever in determining the rights or obligations under this Note. 17. CONSTRUCTION. The pronouns used herein shall include, where appropriate, either gender or both, singular or plural. Promissory Installment Note Page 4 of 5 18. GOVERNING LAW. This Note shall be governed, construed and interpreted by, through and under the Laws of the State of Illinois. PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE. BORROWER AGREES TO THE TERMS OF THIS NOTE. BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE. ,.1 ti% EXECUTED this � day of December, 2013. B WER( r Fuller's Jewelry, Inc. An Illinois Corporation, by its President, Daniel Fuller Attest: , ���n �����`� It's Secretary Pursuant to the terms of Section 11 noted above(JOINT & SEVERAL LIABILITY) the undersigned,jointly and severally,guarantee payment of the Promissory Note as set forth herein,as Borrowers. � ��� �s aniel Fuller Date Promissory Installment Note Page 5 of 5 Loan Amortization Schedule - Fuller's Jewelry, Inc. Enter values Loan summary Loan amount $ 22,000.00 Scheduled payment $ 395.31 Annual interest rate 3.00 % Scheduled number of payments 60 Loan period in years 5 Actual number of payments 60 Number of payments per year 12 Total early payments $ - Start date of loan 12/18/2013 Total interest $ 1,718.67 Optional extra payments $ - Lender name:ICity of Canton,TIF 1 Special Tax Allocation Fund Pmt Beginning Scheduled 6ctra Ending Cumulative No. Payment Date Balance Payment Payment Total Payment Principal Interest Balance Interest 1 1/18/2014 $ 22,000.00 $ 395.31 $ - $ 395.31 $ 340.31 $ 55.00 $ 21,659.69 $ 55.00 2 2/18/2014 21,659.69 395.31 - 395.31 341.16 54.15 21,318.53 109.15 3 3/18/2014 21,318.53 395.31 - 395.31 342.01 53.30 20,976.51 162.45 4 4/18/2014 20,976.51 395.31 - 395.31 342.87 52.44 20,633.64 214.89 5 5/18/2014 20,633.64 395.31 - 395.31 343.73 51.58 20,289.91 266.47 6 6/18/2014 20,289.91 395.31 - 395.31 344.59 50.72 19,945.33 317.20 7 7/18/2014 19,945.33 395.31 - 395.31 345.45 49.86 19,599.88 367.06 8 8/18/2014 19,599.88 395.31 - 395.31 346.31 49.00 19,253.57 416.06 9 9/18/2014 19,253.57 395.31 - 395.31 347.18 48.13 18,906.39 464.19 10 10/18/2014 18,906.39 395.31 - 395.31 348.05 47.27 18,558.35 511.46 11 11/18/2014 18,558.35 395.31 - 395.31 348.92 46.40 18,209.43 557.85 12 12/18/2014 18,209.43 395.31 - 395.31 349.79 45.52 17,859.64 603.38 13 1/18/2015 17,859.64 395.31 - 395.31 350.66 44.65 17,508.98 648.03 14 2/18/2015 17,508.98 395.31 - 395.31 351.54 43.77 17,157.44 691.80 15 3/18/2015 17,157.44 395.31 - 395.31 352.42 42.89 16,805.03 734.69 16 4/18/2015 16,805.03 395.31 - 395.31 353.30 42.01 16,451.73 776.71 17 5/18/2015 16,451.73 395.31 - 395.31 354.18 41.13 16,097.54 817.84 18 6/18/2015 16,097.54 395.31 - 395.31 355.07 40.24 15,742.48 858.08 19 7/18/2015 15,742.48 395.31 - 395.31 355.96 39.36 15,386.52 897.44 20 8/18/2015 15,386.52 395.31 - 395.31 356.84 38.47 15,029.68 935.90 21 9/18/2015 15,029.68 395.31 - 395.31 357.74 37.57 14,671.94 973.48 22 10/18/2015 14,671.94 395.31 - 395.31 358.63 36.68 14,313.31 1,010.16 23 11/18/2015 14,313.31 395.31 - 395.31 359.53 3578 13,953.78 1,045.94 ' 24 12/18/2015 13,953.78 395.31 - 395.31 360.43 34.88 13,593.35 1,080.82 25 1l18/2016 13,593.35 395.31 - 395.31 361.33 33.98 13,232.03 1,114.81 26 2/18/2016 13,232.03 395.31 - 395.31 362.23 33.08 12,869.80 1,147.89 27 3/18/2016 12,869.80 395.31 - 395.31 363.14 32.17 12,506.66 1,180.06 28 4/18/2016 12,506.66 395.31 - 395.31 364.04 31.27 12,142.61 1,211.33 29 5/18/2016 12,142.61 395.31 - 395.31 364.95 30.36 11,777.66 1,241.68 30 6/18/2016 11,777.66 395.31 - 395.31 365.87 29.44 11,411.79 1,271.13 31 7/18/2016 11,411.79 395.31 - 395.31 366.78 28.53 11,045.01 1,299.66 32 8/18/2016 11,045.01 395.31 - 395.31 367.70 27.61 10,677.31 1,327.27 33 9/18l2016 10,677.31 395.31 - 395.31 368.62 26.69 10,308.69 1,353.96 34 10/18/2016 10,308.69 395.31 - 395.31 369.54 25.77 9,939.15 1,379.74 35 11/18/2016 9,939.15 395.31 - 395.31 370.46 24.85 9,568.69 1,404.58 36 12/18/2016 9,568.69 395.31 - 395.31 371.39 23.92 9,197.30 1,428.51 Pmt Beginning Scheduled Extra Ending Cumulative No. Payment Date Balance Payment PaymeM Total Payment Principal Interest Balance Interest 37 1/18/2017 9,197.30 395.31 - 395.31 372.32 22.99 8,824.98 1,451.50 38 2/18/2017 8,824.98 395.31 - 395.31 373.25 22.06 8,451.74 1,473.56 39 3/18/2017 8,451.74 395.31 - 395.31 374.18 21.13 8,077.55 1,494.69 40 4/18/2017 8,077.55 395.31 - 395.31 375.12 20.19 7,702.44 1,514.88 41 5/18/2017 7,702.44 395.31 - 395.31 376.06 19.26 7,326.38 1,534.14 42 6/18/2017 7,326.38 395.31 - 395.31 377.00 18.32 6,949.39 1,552.46 43 7/18/2017 6,949.39 395.31 - 395.31 377.94 17.37 6,571.45 1,569.83 44 8/18/2017 6,571.45 395.31 - 395.31 378.88 16.43 6,192.57 1,586.26 45 9/18/2017 6,192.57 395.31 - 395.31 379.83 15.48 5,812.74 1,601.74 46 10/18/2017 5,812.74 395.31 - 395.31 380.78 14.53 5,431.96 1,616.27 47 11l18/2017 5,431.96 395.31 - 395.31 381.73 13.58 5,050.23 1,629.85 48 12/18/2017 5,050.23 395.31 - 395.31 382.69 12.63 4,667.54 1,642.48 49 1/18/2018 4,667.54 395.31 - 395.31 383.64 11.67 4,283.90 1,654.15 50 2/18/2018 4,283.90 395.31 - 395.31 384.60 10.71 3,899.30 1,664.86 51 3/18/2018 3,899.30 395.31 - 395.31 385.56 9.75 3,513.73 1,674.60 52 4/18/2018 3,513.73 395.31 - 395.31 386.53 8.78 3,127.21 1,683.39 53 5/18/2018 3,12721 395.31 - 395.31 387.49 7.82 2,739.71 1,691.21 54 6/18/2018 2,739.71 395.31 - 395.31 388.46 6.85 2,351.25 1,698.06 55 7/18/2018 2,351.25 395.31 - 395.31 389.43 5.88 1,961.82 1,703.93 56 8/18/2018 1,961.82 395.31 - 395.31 390.41 4.90 1,571.41 1,708.84 57 9/18/2018 1,571.41 395.31 - 395.31 391.38 3.93 1,180.03 1,712.77 58 10/18/2018 1,180.03 395.31 - 395.31 392.36 2.95 787.67 1,715.72 59 11/18/2018 787.67 395.31 - 395.31 393.34 1.97 394.33 1,717.69 60 12/18/2018 394.33 395.31 - 394.33 393.34 0.99 0.00 1,718.67 CITY OF CANTON,ILLINOIS CANTON 1 -DOWNTOWN/STH AVENUE TAX INCREMENT FINANCING DISTRICT PRIVATE PROJECT REQUEST FOR REIMBURSEMENT BY FULLER'S JEWELRY,INC. Date Attention: City TIF Administrator, City of Canton Re: TIF Redevelopment Agreement, dated by and between the City of Canton, Illinois, and Fuller's Jewelry, Inc. (the "Developer") The City of Canton is hereby requested to disburse funds from the Special Tax Allocation Fund pursuant to the Redevelopment Agreement described above in the amount(s),to Fuller's Jewelry, Inc. and for the purpose(s) set forth in this Request for Reimbursement. The terms used in this Request for Reimbursement shall have the meanings given to those terms in the Redevelopment Agreement. 1. REQUEST FOR REIMBURSEMENT NO. 2. PAYMENT DUE TO: Fuller's Jewelry, Inc., Developer 3. AMOUNTS REQUESTED TO BE DISBURSED: Description of TIF Eligible Project Cost Amount Total 13 4. The amount requested to be disbursed pursuant to this Request for Reimbursement will be used to verify TIF Eligible Project Costs for the Project detailed in"Exhibit 1" of the Redevelopment Agreement. 5. The undersigned certifies that: (i) the amounts included in (3) above were made or incurred or financed and were necessary for the Project and were made or incurred in accordance with the construction contracts, plans and specifications heretofore in effect; and (ii) the amounts paid or to be paid, as set forth in this Request for Reimbursement, represent a part of the funds due and payable for TIF Eligible Redevelopment Project Costs; and (iii) the expenditures for which amounts are requested represent proper Redevelopment Project Costs as identified in the "Limitation of Incentives to Developer"described in Section D of the Redevelopment Agreement, have not been included in any previous Reyuest for Reimbursement, have been properly recorded on the Developer's books and are set forth with invoices attached for all sums for which Developer's Loan Funds are requested, and proof of payment of the invoices; and (iv) the amounts requested are not greater than those necessary to meet obligations due and payable or to reimburse the Developer for its funds actually advanced for Redevelopment Project Costs; and (v) the Developer is not in default under the Redevelopment Agreement and nothing has occurred to the knowledge of the Developer that would prevent the performance of its obligations under the Redevelopment Agreement. 6. Attached to this Request for Reimbursement is Exhibit 1 of the Redevelopment Agreement, together with copies of bids, invoices, proof of payment of the invoices, and Mechanic's Lien Waive relati to 1 ite s for which the Developer's Loan Funds will be used to pay. BY: (Developer) TITLE: ��t,�/t APPROVED: CITY OF CANTON, ILLINOIS BY: /�_l�� TITLE: M��ie DATE: ��l���d�� 14