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Home My WebLink AboutOrdinance #3085 - redevelopment agreement between the City of Canton and Cook Canton Real EstateCERTIFICATE 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 2ND DAY OF DECEMBER, 2014 ADOPTED ORDINANCE NO. 3085, A TRUE AND CORRECT COPY OF WHICH IS CONTAINED IN THIS PAMPHLET. GIVEN UNDER MY HAND AND SEAL THIS 4TH DAY OF DECEMBER, 2014. (SEAL) CITY CLERK CITY OF CANTON ORDINANCE NO. 3085 AN ORDINANCE APPROVING AND AUTHORIZING THE SECOND AMENDMENT TO A REDEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF CANTON AND COOK CANTON REAL ESTATE, LLC. PASSED BY THE CITY COUNCIL OF THE CITY OF CANTON THE 2ND DAY OF DECEMBER, 2014 PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY COUNCIL OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS, THIS 4TH DAY OF DECEMBER, 2014 EFFECTIVE DECEMBER 2, 2014 CITY OF CANTON FULTON COUNTY, ILLINOIS ORDINANCE NO. 3085 CANTON 1— DOWNTOWN /5TH AVENUE TAX INCREMENT FINANCING (TIF) DISTRICT AN ORDINANCE APPROVING AND AUTHORIZING THE SECOND AMENDMENT TO A REDEVELOPMENT AGREEMENT by and between THE CITY OF CANTON and COOK CANTON REAL ESTATE, LLC. ADOPTED BY THE CORPORATE AUTHORITIES OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS, ON THE 2ND DAY OF DECEMBER, 2014. CITY OF CANTON, ILLINOIS: ORDINANCE NO. 3085 CANTON 1— DOWNTOWN /5TH AVENUE TAX INCREMENT FINANCING (TIF) DISTRICT AN ORDINANCE APPROVING AND AUTHORIZING THE SECOND AMENDMENT TO A REDEVELOPMENT AGREEMENT by and between THE CITY OF CANTON and COOK CANTON REAL ESTATE, LLC. BE IT ORDAINED BY THE CITY OF CANTON THAT: 1. The Second Amendment to a Redevelopment Agreement originally approved on September 20, 2011 by and between the City of Canton, Fulton County, Illinois and Cook Canton Real Estate, LI.0 (Exhibit 1 attached) is hereby approved. 2. The Mayor is hereby authorized and directed to enter into and execute on behalf of the City said Second 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 Redevelopment Agreement as amended shall be effective the date of its approval on the 2 °d day of December, 2014. 4. 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 is intentionally blank.) -3- PASSED, APPROVED AND ADOPTED by the Corporate Authorities of the City of Canton, Fulton County, Illinois, on the 2nd day of December, A.D., 2014, and deposited and filed in the Office of the City Clerk of said City on that date. CITY COUNCIL AYE NAY ABSTAIN ABSENT Ward 1 Alderman Jim Nelson X Ward 1 Alderman Dave Pickel X Ward 2 Alderman Craig West X Ward 2 Alderman Tad Putrich X Ward 3 Alderman Gerald Ellis X Ward 3 Alderman Justin Nelson X Ward 4 Alderman John Lovell X Ward 4 Alderwoman Angela Hale X TOTAL VOTES 6 0 1 1 APPROVED: Jeff Date // c>-g / 2014 ATTEST: , Date: 42—/ / 2014 DNna Pavley -Ro tty erl , City of Canton ATTACHMENT: EXHIBIT 1. Second Amendment to a Redevelopment Agreement originally approved on September 20, 2011 by and between the City of Canton, Fulton County, Illinois and Cook Canton Real Estate, LLC. -4- EXHIBIT 1 CANTON 1— DOWNTOWN /5TH AVENUE TAX INCREMENT FINANCING (TIF) DISTRICT SECOND AMENDMENT TO A REDEVELOPMENT AGREEMENT by and between THE CITY OF CANTON and COOK CANTON REAL ESTATE, LLC. &I CITY OF CANTON 1- DOWNTOWN /5TH AVENUE TAX INCREMENT FINANCING (TIF) DISTRICT SECOND AMENDMENT TO THE TIF REDEVELOPMENT AGREEMENT by and between THE CITY OF CANTON, FULTON COUNTY, ILLINOIS and COOK CANTON REAL ESTATE, LLC. DECEMBER 2, 2014 CITY OF CANTON 1- DOWNTOWN /5TH AVENUE TAX INCREMENT FINANCING (TIF) DISTRICT SECOND AMENDMENT TO THE REDEVELOPMENT AGREEMENT by and between CITY OF CANTON and COOK CANTON REAL ESTATE, LLC. THIS SECOND AMENDMENT TO THE REDEVELOPMENT AGREEMENT is entered into this 2nd day of December, 2014, by and between the CITY OF CANTON ( "City"), an Illinois Municipal Corporation, Fulton County, Illinois; and COOK CANTON REAL ESTATE, LLC. ( "Developer ") (collectively 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 investment property thereby increasing the tax base of the City and providing employment for its citizens; and WHEREAS, pursuant to the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11 -74.4 ei 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 property 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, pursuant to 65 II.CS 5/8-1-2.5 the City is authorized to appropriate and expend funds for economic development purposes, including, without limitation, the making of grants to any other governmental entity or commercial enterprise that are deemed necessary or desirable for the promotion of economic development within the municipality; and WHEREAS, on July 6, 2004, 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, approved a Redevelopment Plan and Projects, designated a Redevelopment Project Area and adopted Tax Increment Financing under the Act for the Canton 1 - Downtown /5th Avenue TIF District (f /k /a the "Canton International Harvester Site Project Area TIF District ") (the "TIF District "); and WHEREAS, on November 22, 2011, the City approved the First Amendment to the TIF District Redevelopment Plan and Projects to add private projects and add and further designate private TIF Eligible Project Costs to further authorize the City to provide incentives to induce owners of real property to proceed with private redevelopment projects and to rename the TIF District; and WHEREAS, on February 6, 2012, the City approved the Second Amendment to the TIF District Redevelopment Project Area, Plan and Projects to remove parcels from the Redevelopment Project Area; and WHEREAS, on September 20, 2011, the Parties entered into a Redevelopment Agreement (Exhibit A), wherein the City agreed to extend incentives to provide reimbursement of certain Redevelopment Project Costs ( "TIF Eligible Project Costs ") for the Developer's Project including property to be acquired by the Developer in 2011 located at 225 S. 3`1 Avenue, Canton, Illinois, and assembled from portions of real estate tax property identification numbers 09- 08 -34- 232 -001 and 09- 08-27- 441 -001 (the "Property "); and WHEREAS, on January 21, 2014, the Parties approved the First Amendment to the original Redevelopment Agreement (Exhibit for the sole purpose of redefining the "Property" located at 225S.3 d Avenue, Canton, Illinois as real estate tax property identification numbers 09- 08 -34- 232 -001, 09- 08 -34- 232 -002 and 09- 08 -27- 441 -003; and WHEREAS, based on incentives offered by the City, the Developer proceeded with plans to prepare the site and construct a 7,000 square foot manufacturing facility (the "Cook Polymer Technology - Canton Plant" or the "Facility"), which Property and Facility is collectively defined as the "Project" or "Developer's Project "; and WHEREAS, it is the intent of the City to encourage economic development which will increase the real estate and municipal tax bases of the City and the tax bases of other taxing bodies, which increased incremental taxes will be used, in part, to finance incentives to assist redevelopment projects undertaken within the TIF District; and WHEREAS, the Developer's Project is consistent with the land uses of the City as adopted; and WHEREAS, the City 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 -40); and WHEREAS, the Parties agree to further Amend the terms of the original Redevelopment Agreement executed on September 20, 2011 and amended on January 21, 2014, as set forth below. SECOND AMENDMENT TO REDEVELOPMENT AGREEMENT Section C(1) of the original Redevelopment Agreement as Amended by the First Amendment is hereby replaced and amended as follows: SECTION C. INCENTIVES In consideration for the Developer having purchased the Property and completing the Project substantially as set forth in Exhibit 1 of the Original Redevelopment Agreement as Amended by the First Amendment attached hereto as Exhibit B, the City agrees to extend to the Developer the following incentives to assist Developer's Project: 1. A maximum of twenty -five percent (25 %) of the incremental increases in real estate taxes derived from this Developer's Project during the remaining life of the Canton IH TIF District, not to exceed a total reimbursement of One Million Four Hundred Eighteen Thousand Four Hundred Seventy Two Dollars ($1,418,472.00) of the Developer's TIF Eligible Project Costs (see Exhibit 1 of the Original RedevelopmentAgreement as Amended by the FirstAmendment) plus interest costs, if any, calculated herein. The City will establish a separate account within the Special Tax Allocation Fund for this Canton 2 - Downtown /5th Avenue TIF District (formerly known as Canton IH TIF District) Project designated as the "Cook Polymer Technology - Canton Plant "( "Special Account "). All monies deposited to this Special Account shall be used exclusively by the City for the purposes set forth in this Agreement. a. The Developer agrees to defer the reimbursement of real estate tax increment payable by the City to the Developer for tax year 2013 payable 2014 only. Said deferred reimbursement amount is Fifty -Seven Thousand One - Hundred Thirty-Six and 06/100 Dollars ($57,136.06) as described in the Tax Year 2013 Payable 2014 Developer Reimbursement Calculation attached hereto as Exhibit C and shall, upon execution of this Second Amendment to the Redevelopment Agreement, become payable by the City to the Developer as follows: i. Fifty- Percent (50 %) of said deferred reimbursement amount, including interest at the rate of Three - Percent (3.0 %) per annum from the date of full execution of this Second Amendment to the Redevelopment Agreement, shall become due and payable by the City to the Developer on or before November 1, 2015; and ii. The remaining Fifty- Percent (50 %) of said deferred reimbursement amount, including interest at the rate of Three - Percent (3.0 %) per annum from the date of the full execution of this Second Amendment to the Redevelopment Agreement, shall become due and payable by the City on or before November 1, 2016. iii. Payments due the Developer from the City per Section C (1) (a) (i) and (ii)are to be paid pursuant to the Estimated Payment Scbedule attached hereto as Exhibit D, unless paid earlier as follows: The Parties agree the City may at any time prior to November 1, 2016 pay the Developer the balance due per Section (C)(1) (a) without further interest or penalty. (I be remaining pace on this page is intentionally blank.) PRIOR AGREEMENT TERMS APPLY All terms of the Original Redevelopment Agreement as Amended by the First Amendment (Exhibit B) shall apply to this Second Amendment and remain effective unless specifically modified by this Second Amendment to the Redevelopment Agreement. IN WITNESS WHEREOF the City of Canton and Cook Canton Real Estate, LLC have caused this Second Amendment to the Redevelopment Agreement to be executed by their duly authorized officers on the above date at Canton, Illinois. CITY CITY OF CANTON, an Illinois Municipal Corporation: BY: BY: Mayor, City of Canton Date City Clerk, City of Canton Date FiVIOWU4026MIAUCI 1 ' COOK CANTON REAL ESTATE, LLC. an Illinois Limited Liability Company: BY: Nance Awf4:34c Exhibit A. Original Redevelopment Agreement Exhibit B. First Amendment to Redevelopment Agreement. Exhibit C. Tax Year 2013 Payable 2014 Developer Reimbursement Calculation. Exhibit D. Estimated Payment Schedule Per Section (C)(1)(a). Date 11: \(:.1N"I'ONV.'ANTON 1- O( 1\ CN TO\ tG' N_ STfI.\\' I;\ UI?TIP \:lirccmcnt3 \t ;r,uk- 1' "1 "I li \�ccun.l. \mcnlmcnt \ +:antun'l'll 1 Cook Canton Real I•;atatc I.U.' 2nd An- wndment to RI)A_28 Oct 21)14.,.ed _ 4 PRIOR AGREEMENT TERMS APPLY All terms of the Original Redevelopment Agreement as Amended by the First Amendment (Exhibit B) shall apply to this Second Amendment and remain effective unless specifically modified by this Second Amendment to the Redevelopment Agreement. IN WITNESS WHEREOF the City of Canton and Cook Canton Real Estate, LLC have caused this Second Amendment to the Redevelopment Agreement to be executed by their duly authorized officers on the above date at Canton, Illinois. CITY CITY OF CANTON, an Illinois Municipal Corporation: BY: l,.: v Mayor, eily of on Date ATTES BY: Ca erk, i of C Date ATTACHMENTS: DEVELOPER COOK CANTON REAL ESTATE, LLC. an Illinois Limited Liability Company: BY: 14`19 Name Date Name Date Exhibit A. Original Redevelopment Agreement Exhibit B. First Amendment to Redevelopment Agreement. Exhibit C. Tax Year 2013 Payable 2014 Developer Reimbursement Calculation. Exhibit D. Estimated Payment Schedule Per Section (C)(1)(a). I(\( AN TUN\(,ANI0N I- D(MNI'O'X S'T[I VAICN1 1, 111 A,,At�r<<.n. (-k P`Ii l \Sr...,nd,1 �cn<isncri \(;.u�ton'Ilt- i_Co�iI:C.mton N �I Ifsta« I,L(.:'.ad 1 n';u6zi. n1 u, KI_YA :_ 8 Oct 'Ht-; �\ I'd 2 EXHIBIT A ORIGINAL REDEVELOPMENT AGREEMENT