HomeMy WebLinkAbout05-21-2015 joint review board meeting minutes JOINT REVIEW BOARD MEETING
AGENDA
MAY 219 2105
I. Sign In Sheet
II. Purpose of Meeting is to review concurrently the status of the Canton TIF Districts.
A. Section 74.4-5. (e)
"The joint review board shall meet annually 180 days after the close of the
municipal fiscal year or as soon as the redevelopment project audit for that fiscal
year becomes available to review the effectiveness and status of the
redevelopment project area up to that date."
B. Report made by Mayor(or JK/ EDG Representative).
III. Canton TIF 1-Downtown: Fiscal Year 2014
A. Itemized list of income and expenses
II. Projects listed were done in that Fiscal Year only
III. Discuss Projects prior to beginning of May 1, 2013
IV. Discuss current Projects from May 1, 2013 to date
IV. Canton TIF 2-11t. 9: Fiscal Year 2014
A. Itemized list of income and expenses
B. Projects listed were done in that Fiscal Year only
C. Discuss Projects prior to beginning of May 1, 2013
D. Discuss current Projects from May 1, 2013 to date
V. Adjourn
B) an analysis prepared by financial advisor or underwriter setting forth: (i)
nature and term of obligation;and (ii) projected debt service including required
reserves and debt coverage.
(9) For special tax allocation funds that have experienced cumulative deposits of
incremental tax revenues of$100,000 or more,a certified audit report reviewing
compliance with this Act performed by an independent public accountant certified and
licensed by the authority of the State of Illinois. The financial portion of the audit must be
conducted in accordance with Standards for Audits of Governmental Organizations,
Programs,Activities,and Functions adopted by the Comptroller General of the United
States (1981), as amended, or the standards specified by Section 8-8-5 of the Illinois
Municipal Auditing Law of the Illinois Municipal Code. The audit report shall contain a
letter from the independent certified public accountant indicating compliance or
noncompliance with the requirements of subsection (q) of Section 11-74.4-3. For
redevelopment plans or projects that would result in the displacement of residents
from 10 or more inhabited residential units or that contain 75 or more inhabited
residential units,notice of the availability of the information,including how to obtain the
report,required in this subsection shall also be sent by mail to all residents or
organizations that operate in the municipality that register with the municipality for that
information according to registration procedures adopted under Section 11-74.4-4.2. All
municipalities are subject to this provision.
(d-1) Prior to the effective date of this amendatory Act of the 91st General Assembly,
municipalities with populations of over 1,000,000 shall,after adoption of a redevelopment plan or
1roject, make available upon request to any taxing district in which the redevelopment project area
is located the following information:
(1) Any amendments to the redevelopment plan, the redevelopment project area,or the
State Sales Tax Boundary,,and
(2) In connection with any redevelopment project area for which the municipality has
outstanding obligations issued to provide for redevelopment project costs pursuant to
Section 11-74.4-7, audited financial statements of the special tax allocation fund.
je) The joint review board shall meet annually 180 days after the close of the municipal fiscal
year or as soon as the redevelopment project audit for that fiscal year becomes available to
review the effectiveness and status of the redevelopment project area up to that date.
lank .
(g) In the event that a municipality has held a public hearing under this Section prior to March
14 1994 the effective date of Public Act 88-537), the requirements imposed by Public Act 88-537
relating to the method of fixing the time and place for public hearing, the materials and
information required to be made available for public inspection,and the information required to
be sent after adoption of an ordinance or resolution fixing a time and place for public hearing shall
not be applicable. (Source: P.A. 91-357, eff 7-29-99;91-478, eff. 11-1-99, 91-900, eff. 7-6-00;
92-263, eff. 8-7-01; 92-624, eff. 7-11-02.)
(65 ILCS 5/11-74.4-6)NOTICE OF PUBLIC HEARING
Sec. 11-74.4-6. (a) Except as provided herein,notice of the public hearing shall be given b3
publication and mailing. Notice by publication shall be given by publication at least
CITY OF CANTON
Canton 1- Downtown/5th Ave.
Tax Increment Financing (TIF) District
FY 2014 Summary
2 North Main Street,Canton,IL 61520 Ph:(309)647-0065
Harvester Inn Hotel,Canton TIF 1
Canton TIF District 1 — FY2014 Overview
In 1983, International Harvester reported a $165 million loss and announced permanent closure of the
Canton, Illinois plant. When the IH plant closed, more than 3,000 jobs were lost and the equivalent of 20
percent of Canton's population was suddenly out of work. In 2004,the Canton International Harvester Site Project
Area Tax Increment Financing District Redevelopment Plan,Area and Projects was established to address the lack of
new private investment and provide a mechanism for financing extensive environmental cleanup, site
preparation and other eligible costs the City would need to incur in order to redevelop the former IH site,the
City's central business district and the adjacent 511 Avenue Commercial Corridor.
On November 22, 2011, the City approved the First Amendment to the Canton IH TIF District. This First
Amendment renamed the TIF District as Canton 1 —Doivntonm 1511'Avenue TIF District ("Canton TIF 1") and
added projects and additional TIT eligible project costs to the redevelopment plan. On February 6,2012, the
City approved the Second Amendment to Canton TIF 1, thereby removing certain parcels from the
redevelopment project area.
The City has made significant commitments of time and money to address several of its goals and to
encourage conservation and redevelopment of the Canton TIF 1 Redevelopment Project Area. In December
of 2008, an emotional crowd of more than 1,000 residents listened to William "Bill" Cook, a native of
Canton, announce plans to construct Cook Medical in 2010, a medical device manufacturing facility on a
portion of the former International Harvester site that had received a "No Further Remediation" letter from
the IEPA.The construction of this 45,000 square foot facility,which will employee more than 300,represents
a significant milestone for the Canton community. A second Cook facility to manufacture
polytetrafluoroethylene (PTFE) tubing was constructed in 2012. Cook Medical as well as Cook's efforts to
develop the Harvester Inn Hotel and purchase and renovate several aging buildings in downtown Canton,
including the 1883 Randolph Building, has brought much needed momentum to the City's economic
development plan. These Projects have presented new,previously unforeseen opportunities to redevelop the
embattled Canton IH TIF District redevelopment project area.
Based largely on the availability of new real estate tax increment resulting from the Cook improvements, the
City issued $7 million of Series 2011 Debt Certificates on December 1,2011 by pledging Canton TIF 1 funds for
the annual debt service. The Debt Certificates were issued to refinance costs incurred for the cleanup and
redevelopment of the IH site as well as additional public infrastructure improvements.
Canton TIF District 1/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777
Canton TIF District 1 - Facts & Stats for FY2014:
Established.....................................................................................................................................................................2004
Ends......................................................................................................................................Tax Year 2027 Payable 2028
BaseTax Year................................................................................................................................................................2003
TIFBase EAV....................................................................................................................................................$5,148,444
TaxYear 2012 Net Taxable EAV.................................................................................................................$12,524,285
TaxYear 2012 RE Tax Increment......................................................................................................................$778,721
Total Obligations in TIF Plan as amended,FY2014.................................................................................$68,139,348
Total Expenditures to Date (not including surplus distribution).............................................................$12,489,841
RemainingObligations....................................................................................................................................$55,649,507
Fiscal Year 2014 Activity
For Fiscal Year 2014, (beginning May 1, 2013 and ending April 30, 2014), the Canton I Downtown/5th
Avenue TIF District Special Fund (the"TIF Fund") had a beginning balance of$2,310,673.
With deposits in the amount of $781,589, the total amount available in the TIF Fund during FY2014 was
$3,092,262. Sources of funds included: Real Estate Tax Increment ($778,721) and Interest Income ($2,868) in
Figure 1 below. The total public and private TIF eligible project costs expended from the TIF Fund during
FY2014 amounted to $1,539,179 and included those categories of funds shown in Figure 2below.
1 V�
The ending balance of the Canton TIF District I Special Fund as of April 30, 2014,was $1,553,083. These
funds included $1,194,995 remaining in the SeJies 2019 Debt Certificates sub-account. The real estate tax
increment generated by Canton TIF District I for FY2015 is estimated to be$934,325.
a �9 Z 5
Figure 1. Canton 1-Downtown/5th Avenue TIF District Figure 2. Canton 1-Downtown/5th Avenue TIF District
Revenues(FY2014) Expenditures(FY2014)
Beginning
Bal.,
$2,310,673, Facility Debt Interest,
75% Improvement, $380,119,25% Administrative
$2,555,0% Professional,
_,._.... 186,688,12%
Parks and Trails,
$1,850,0%
Surplus
Distribution, Streets,
$34,732,2% $153,913,10%
Business Marketing,
Retention, $18,447,1%
$277,537,18%
R.E.Tax / Revitilization,
Interest, Increment,
Capital Costs,J $10,244,1%
$3,141,0%
$2,868,0% $778,721, Site Prep,
25% Developer $45,750,3%
Agreement, Environmental,
$96,549,6% $327,654,22%
Canton TIF District 1/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777
CITY OF CANTON DOWNTOWN 5TH AVE TAX INCREMENT FINANCING DISTRICT I
Established: 2004
Ends: Tax Yr.2027 Payable 2028
Base Tax Year: 2003
TIF Base EAV: $5,148,444
TABLE 1. FINANCIAL SUMMARY
EXPENDITURES BY FISCAL YEAR ENDING APRIL 30TH CUMULATIVE RESULTS
Original
Anticipated&
Amended
Obligations Per Cumulative Remaining
PROJECT TYPE TIF Redev.Plan FY 04-2010 FY 2011 FY 2012 FY 2013 FY 2014 Expenditures Obligations
PUBLIC REDEVELOPMENT PROJECTS
Street/Sidewalk/Parking Lots $15,174,285 $450,675 $576,393 $605,439 $70,013 $153,913 $1,856,433 $13,317,852
Sanitary Sewer/Lift Station/Treatment $1,292,428 $0 $8,997 $59,742 $0 $0 $68,739 $1,223,689
Strom Sewers/Ponds&Basins $967,886 $39,270 $0 $0 $0 $0 $39,270 $928,616
Landscape&Lighting $409,400 $0 $0 $0 $0 $0 $0 $409,400
Fencing $58,486 $19,044 $7,210 $0 $0 $0 $26,254 $32,232
Site Prep/Demolition $634,776 $257,042 $328,247 $665 $1,178 $45,750 $632,882 $1,894
2009 Debt Certificates $4,000,000 $0 $0 $4,000,000 $0 $0 $4,000,000 $0
a. General Fund $805,280 $248,942 $0 $0 $0 $1,054,222 $0
b. Environmental Costs $2,714,273 $477,154 $192,025 $0 $0 $0 $669,179 $990,872
Water Main/Hydrants/Storage/Treatment $3,687,353 $187,353 $163,695 $68,330 $0 $0 $419,378 $3,267,975
Utility Improvements $1,000,000 $0 $0 $0 $0 $0 $0 $1,000,000
Public Facilities Improvements $3,500,000 $0 $0 $0 $0 $2,555 $2,555 $3,497,445
Land Acquisition/Environmental Contaminants $4,000,000 $0 $0 $113,411 $27,750 $327,654 $468,815 $3,531,185
Marketing/Signage/Website/Lighting $500,000 $0 $0 $0 $77,448 $18,447 $95,895 $404,105
Parks/Trails/Green Space $500,000 $0 $0 $0 $0 $1,850 $1,850 $498,150
Downtown Revitalization $500,000 $0 $0 $110,031 $9,315 $10,244 $129,590 $370,410
Business Retention&Expansion $500,000 $0 $0 $0 $0 $277,537 $277,537 $222,463
Neighborhood Rehabilitation $500,000 $0 $0 $0 $0 $0 $0 $500,000
Engineering/ArchitecVLegal/Training $600,000 $0 $0 $275,217 $433,876 $93,115 $802,208 ($202,208)
2011 Debt Certificate $7,000,000 $0 $0 $0 $0 $100,000 $100,000 $6,683,945
a. Debt Issuance Costs $0 $0 $216,055 $0 $0 $216,055 $0
b. Interest $3,340,605 $0 $0 $120,000 $291,012 $280,119 $691,131 $2,649,474
x.
PRIVATE REDEVELOPMENT PROJECTS
Commercial Projects I-XIV $8,171,787 $0 $0 $0 $0 $0 $0 $8,171,787
a.J&K Newburn(American Grille) $133,300 $0 $0 $0 $17,431 $17,696 $35,127 $98,173
b.White Oak Tap,Inc. $57,243 $0 $1,766 $1,824 $1,938 $1,673 $7,201 $50,042
c. Black Crow Candle(Janssen&Franzoni) $21,000 $0 $0 $21,000 $0 $0 $21,000 $0
d.Ipava State Bank $150,000 $0 $0 $0 $6,461 $1,179 $7,640 $142,360
e.Michelle Behymer $700 $0 $0 $0 $700 $0 $700 $0
f.Ronald Eric Matthews $4,000 $0 $0 $0 $0 $4,000 $4,000 $0
g.Canton Harvester Inn,LLC $250,000 $0 $0 $0 $0 $66,708 $66,708 $183,292
h.Paige Edwards(D/B/A Square Crafters) $4,970 $0 $0 $0 $0 $4,970 $4,970 $0
i.Fuller's Jewelry,Inc. $22,000 $0 $0 $0 $0 $0 $0 $22,000
Light Industrial Projects I-IV $2,911,528 $0 $0 $0 $0 $0 $0 $2,911,528
a. Cook Canton Real Estate(PTEE Plant) $1,418,472 $0 $0 $0 $0 $323 $323 $1,418,149
Apartment/Townhouse I&II $1,000,000 $0 $0 $0 $0 $0 $0 $1,000,000
Assisted Living I&II $1,800,000 $0 $0 $0 $0 $0 $0 $1,800,000
TAXING DISTRICT'S CAPITAL COSTS
Canton Union School District#66 $500,000 $0 $0 $0 $0 $3,141 $3,141 $496,859
a
ADM I NISTRATI V E/P ROFESS IONAL
Administrative $116,971 $6,338 $21,824 $1,337 $605 $93,073 $123,177 ($6,206)
Professional/Debt Admin $580,914 $484,276 $144,085 $0 $0 $500 $628,861 ($47,947)
Interest $116,971 $35,000 $0 $0 $0 $0 $35,000 $81,971
GRANDTOTAL $68,139,348 $2,761,432 1$1,693,184 1 $5,593,051 1 $937,727 $1,504,447 $12,489,841 $55,649,507
SURPLUS DISTRIBUTION $0 $0 $0 $0 $34,732
TABLE 2. CANTON TIF DISTRICT I SUMMARY STATISTICS
FY 04-2010 FY2011 FY2012 FY2013 FY2014
Real Estate Tax Year: n/a 2009 2010 2011 2012
Taxes Payable in Calendar Year: n/a 2010 2011 2012 2013 Total
Incremental EAV: $0 $2,212,000 $5,585,360 $6,580,702 $8,020,906
Total Real Estate Tax Increment- $266,545 $192,273 $507,135 $626,119 $778,721 $2,370,793
Canton TIF District 1/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777
Figure 3. Canton 1-Downtown/5th Avenue TIF District
Total Revenue and Deposits by Fiscal Year
$8,000,000
$7,500,000
$7,000,000 -
$6,500,000
$6,000,000
$5,500,000
$5,000,000
$4,500,000
$4,000,000 w ,<
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
®RETI ■Interest ■Misc. w Debt Certificates
Private Redevelopment Agreements:
1. Petersen Health Resources, Inc. (2005)
2. Crawford's Fashion Floors, Inc. (2007)
3. White Oak Tap, Inc. (2008)
4. Cook Canton Incorporated (2009)
5. Jon& Kimberly Newburn / American Grille Restaurant (2010)
6. Harvester Inn,LLC (2012)
7. Cook Canton Real Estate, LLC / PTFE Plant (2011)
S. Black Crow Candle Co. (2011)
9. Ronald Eric Matthews (2013)
10. Michelle Behymer/B-Designed Salon (2012)
11. Ipava State Bank (2012)
12. Fuller's Jewelry,Inc. (2013)
13. Paige Edwards (D/B/A Square Crafters) (2014)
Canton TIF District 1/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777
NEW REDEVELOPMENT AGREEMENTS DURING FY2014
FULLER'S JEWELRY, INC.
Date Agreement Approved by City: December 3, 2013
Project: The Developer will incur costs for contracted labor and materials
necessary to replace an exterior load-bearing support wall for the
building located at 46 N Main Street.
Developer: David Fuller, Owner
Fuller's Jewelry, Inc.
46 N. Main Street
Canton, IL 61520
Description of Agreement: The Developer shall receive a loan in the amount of Twenty-Two
Thousand Dollars ($22,000.00) from the TIF 1 Fund for
contracted labor and materials related to the Project.
(a) The interest rate for the loan shall be 3%; (b) the default rate for
the loan shall be Prime Rate plus '/2%; (c) loan shall amortize over
five (5)years and shall mature 5 years from the date of the loan
closing; (d) Developer shall make monthly payments of principal
and interest, beginning l mo. after loan closing; (e) City shall take
as collateral a lien on a second or higher priority mortgage on the
Property; (f) Loan proceeds shall be disbursed from time to time as
Developer requests, upon submission and City's approval of paid
invoices for services and materials for the Project, until the earlier
of 6 months from date of loan closing or until $22,000 has been
fully dispersed; and (g) the Developer shall complete the Project
within 6 months from the date of the loan closing.
Term of Agreement: The Agreement shall terminate upon expiration of the Developer's
loan.
Parcel: 09-08-27-412-012
Eligible Project Costs:Eligible Project Costs total not to exceed$22,000.00.
Canton TIF District 1/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777
PAIGE EDWARDS (DB/A SQUARE CRAFTERS)
& BILLY JOE EDWARDS
Date Agreement Approved by City: January 7, 2014
Project: The Developer will incur costs for leasehold improvements and
building renovations for building located at 44 White Court.
Developer: Paige Edwards d/b/a Square Crafters
328 N. Avenue A
Canton, IL 61520
Owner: Billy Joe Edwards
647 South 1St
Canton,IL 61520
Description of Agreement: The Developer shall receive a grant in the amount of Four
Thousand Nine Hundred Seventy Dollars ($4,970.00) from the
TIF I Fund for contracted labor and materials related to the
Project.
If the Developer sells or otherwise conveys all or a portion of the
title to the Property to any other individual or entity other than the
current tenant within five (5)years following the execution of this
Agreement, the Developer shall repay a single lump sum to the
City equal to the proportionate amount of the grant funds provided.
Said proportionate amount shall be calculate on a daily rate
equivalent to 1/5 of the grant amount for each year remaining.
Term of Agreement: Agreement terminates five (5)years from the date of execution.
Parcel: 09-08-27-415-016
Eligible Project Costs:Eligible Project Costs total not to exceed$4,970.00.
Canton TIF District 1/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777
INTERGOVERNMENTAL AGREEMENT:
1. Canton Union School District#66, executed on June 4, 2013
NOTES/COMMENTS:
Canton TIF District 1/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777
Canton 1—Downtown/5"Avenue TIF District
Redevelopment Project Area
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Canton TIF District 1/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777
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CITY OF CANTON la'
Canton 2 — Rt. 9/Chestnut St.
Tax Increment Financing (TIF) District
FY 2014 Summary �
2 North Main Street,Canton,IL 61520 Ph:(309)647-0065
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Canton TIF District 2 — FY2014 Overview
Established on February 6, 2012, the Canton 2 — Rt. 9/Chestnut Street TIF District ("Canton TIF District
2") was established for the purpose of undertaking public and private redevelopment on underutilized
commercial, residential and light industrial properties. By alleviating blighting conditions and addressing the
lack of inadequate infrastructure, the City hopes to attract new private investment that will that would not
otherwise be reasonably expected to occur without the use of tax increment financing. Such redevelopment
will help to increase the population base of the community,increase employment opportunities, expand and
diversify the local tax base and increase the overall quality of life for Canton area residents.
On March 19, 2013, the City approved the First Amendment to the Canton TIF District 2. This First
Amendment reduced the size of the Canton TIF 2 redevelopment project area (the "Area") by removing two
(2) parcels of land and further documenting corrections for scrivener errors in the original legal description of
the Area.
As stipulated in the TIF Redevelopment Plan, the City will declare twenty percent (20%) of the total gross
real estate tax increment generated annually within the Canton 2- Rt9/Chestnut Street TIF District as surplus
funds. For a portion of the Canton 2 - Rt. 9/Chestnut Street TIF District Redevelopment Project Area
defined as a Special Surplus Area,the City shall declare as surplus funds one hundred percent (100%,) of gross
real estate tax increment generated annually from the "natural growth" of the parcels located within the
Special Surplus Area. "Natural growth" is defined as that portion of the annual real estate tax increment, if
any, of real estate taxes which are attributable to the increase in the current equalized assessed valuation of
each taxable lot, block or tract or parcel of real property within the Special Surplus Area over and above the
initial equalized assessed value of each property in the Special Surplus Area. In the event any parcels within
the Special Surplus Area are included in a Private Redevelopment Agreement at any time during the life of the
TIF District,those parcels are temporarily exempt from this Special Surplus Area provision.
Intergovernmental Agreements:
1. Canton Union CUSD #66 (2011) and Amended (2013)
Private Redevelopment Agreements:
1. Ipava State Bank (2012)
2. Canton Crossing Corporation (2013)
3. East& EM Properties,LLC (2013)
4. Stinauer Family Dentistry, Inc. (2013)
5. Jerry Jarnagin, Chestnut Rentals (2014)
Cc v- 'fly— Ci'0, )
Canton TIF District 2/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777
Canton TIF District 2 - Facts & Stats for FY2014:
Established.....................................................................................................................................................................2012
Ends......................................................................................................................................Tax Year 2035 Payable 2036
BaseTax Year................................................................................................................................................................2010
TIFBase EAV..................................................................................................................................................$14,168,556
Tax Year 2012 Net Taxable EAV.................................................................................................................$14,334,852
Tax Year 2012 RE Tax Increment........................................................................................................................$85,214
Total Obligations in TIF Plan as amended,FY2013.................................................................................$80,359,500
Total Expenditures to Date (not including surplus distribution)...................................................................$953,368
RemainingObligations....................................................................................................................................$79,406,132
Fiscal Year 2014 Activity
For Fiscal Year 2014, (beginning May 1, 2013 and ending April 30, 2014), the Canton 2 Rt. 9/Chestnut St.
District Special Tax Allocation Fund (the "TIF Fund") had a beginning balance of a negative-$36,066. With
deposits in the amount of$85,274, the total amount available in the TIF Fund during FY2014 was $49,208.
Sources of funds included: Real Estate Tax Increment ($85,214) and Interest Income ($60), as depicted in
Figure Z
The total public and private TIF eligible project costs expended from the TIF Fund during FY2014
amounted to$888,885,as depicted in Figure 2
The ending balance of Canton TIF District 2 Special Tax Allocation Fund as of April 30,2014 was a negative
-$839,677. The real estate tax increment generated by Canton TIF District 2 for FY2015 is estimated to be
$127,335.
Fig.1. Canton TIF District 2 Rt.9-Revenues(FY2014) Fig.2. Canton TIF District 2 Rt.9 Expenditures
(FY2014)
Admin&
Interest, $60, Professional,
0% R.E.Tax $24,874,3% Street&
Increment, Sidewalk,
Beginning $85,214,70% $18,584,2%
Balance,
$(36,066),-30%
Redevelopment
Agreement,
$804,581,91% Building Rehab,
$4,539,0%
Surplus
Distribution,
$36,307,4%
Canton TIF District 2/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777
CITY OF CANTON RT. 9/CHESTNUT STREET TAX INCREMENT FINANCING DISTRICT II
Established: 2012
Ends: Tax Yr.2035 Payable 2036
Base Tax Year: 2010
TIF Base EAV: $14,168,556
TABLE 1. FINANCIAL SUMMARY
CUMULATIVE RESULTS
Original
Anticipated&
Amended
Obligations Per Cumulative Remaining
PROJECT TYPE TIF Redev.Plan FY 2012 FY 2013 FY 2014 Expenditures Obligations
PUBLIC REDEVELOPMENT PROJECTS
Street/Sidewalk/Parking Lots $22,000,000 $0 $0 $18,584 $18,584 $21,981,416
Sanitary Sewer/Lift Station/Treatment $2,500,000 $0 $0 $0 $0 $2,500,000
Water Main/Treatment Plant $11,000,000 $0 $5,000 $0 $5,000 $10,995,000
Storm Sewer/Retention/Detention $1,000,000 $0 $0 $0 $0 $1,000,000
Utilities/Telecommunication $1,000,000 $0 $0 $0 $0 $1,000,000
Land Acquisition/Site Prep/Demolition $3,000,000 $0 $11,068 $0 $11,068 $2,988,932
Building Rehab/Construction $1,500,000 $0 $0 $4,539 $4,539 $1,495,461
Removal Environmental Contaminants $1,000,000 $0 $0 $0 $0 $1,000,000
Marketing/Signage/Website/Lighting $800,000 $0 $0 $0 $0 $800,000
Parks/Trails/Green Space $200,000 $0 $0 $0 $0 $200,000
Commercial Rehab/Revitalization $1,000,000 $0 $0 $0 $0 $1,000,000
Neighborhood Rehabilitation $500,000 $0 $0 $0 $0 $500,000
Professional $1,000,000 $44,437 $5,790 $15,033 $65,260 $934,740
Safety&Emergency Services $500,000 $0 $0 $0 $0 $500,000
Contiguous Districts Infrastructure $500,000 $0 $0 $0 $0 $500,000
PRIVATE REDEVELOPMENT PROJECTS
Commercial Projects I-V $4,714,385 $0 $0 $0 $0 $4,714,385
a. Canton Crop Services, Inc. $156,115 $0 $0 $0 $0 $156,115
b.Stinauer Family Dentistry, Inc. $175,000 $0 $0 $0 $0 $175,000
c. East&EM Properties, LLC $4,500 $0 $0 $4,500 $4,500 $0
Commercial General Merchandise I-IV $1,775,000 $0 $0 $0 $0 $1,775,000
a. Canton Crossing Corporation $1,175,000 $0 $0 $800,000 $800,000 $375,000
Convenience Store/Restaurant 1-III $350,000 $0 $0 $0 $0 $350,000
Commercial/Retail Strip $276,500 $0 $0 $0 $0 $276,500
a.Jerry Jarnagin, Chestnut Rentals $323,500 $0 $0 $0 $0 $323,500
Commercial Motel/Hotel $2,500,000 $0 $0 $0 $0 $2,500,000
Commercial Rehab/Renovation $5,000,000 $0 $0 $0 $0 $5,000,000
Light Industrial Project I-IV $2,060,000 $0 $0 $0 $0 $2,060,000
Townhouse/Apartment Complex I& II $2,000,000 $0 $0 $0 $0 $2,000,000
Residential Single Family Housing $1,750,000 $0 $0 $0 $0 $1,750,000
Residential Duplex $800,000 $0 $0 $0 $0 $800,000
Senior Development Project $1,500,000 $0 $0 $0 $0 $1,500,000
Assisted/Supportive Living Facility $750,000 $0 $0 $0 $0 $750,000
Residential Rehab/Renovation $2,400,000 $0 $0 $0 $0 $2,399,919
a. Annexation Agreement $0 $0 $81 $81
"511, 74777'311W
TAXING DISTRICT'S CAPITAL COSTS
Canton Union School District#66 $5,000,000 $0 $0 $0 $0 $5,000,000
ADM I NISTRATIV E/PROFESSIONAL
Administrative $149,500 $0 $34,495 $9,841 $44,336 $105,164
GRAND TOTAL $80,359,500 $44,437 $56,353 $852,578 $953,368 $79,406,132
SURPLUS DISTRIBUTION $0 $O $36,307
TABLE 2. CANTON TIF DISTRICT II SUMMARY STATISTICS
FY2012 FY2013 FY2014
Real Estate Tax Year: 2010 2011 2012
Taxes Pa able in Calendar Year: 2011 2012 2013 Total
Incremental EAV: n/a n/a $904,327
Total Real Estate Tax Increment: n/a n/a $85,214 $85,214
Canton TIF District 2/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777
NEW REDEVELOPMENT AGREEMENTS DURING FY2014
PREFERRED-EAGAN I, LLC AND CANTON CROSSING CORP.
Date Agreement Approved:May 21,2013
Project: Renovate the existing buildings located at 1741-73 E. Chestnut St. and make
additional site improvements for the operation of a retail shopping center to be
known as Canton Crossing Shopping Center.
Developer: Preferred-Eagan I,LLC&Canton Crossing Corporation
Attn: Evan Cliff,President
2480 N. Lakeview Ave.
Chicago,IL 60614
Ph: (312) 953-1802
evanLa)preferreddevelopment.com
Description of Agreement: Promissory Note: City will provide a lump-sum, forgivable loan to the
Develoer in the amount of$800,000 from the TIF Fund. 1/8 of the loan
shall be forgiven each year commencing 12/31/14,provided that the
Developer has been in full compliance with the Agreement. Loan
converted to a grant,unless prior to tax year 2020 payable 2021:
❑ Fails to purchase property
❑ Do not verify EPCs in amount of at least$800,000
❑ Sells or transfers property
❑ Commercial operations cease for 180 days
❑ EAV is reduced to less than$600,000,then Developer repays
City for then outstanding balance of the loan
Annual Reimbursement:Beginning the first tax year which real estate tax
increment is generated,the City shall annually segregate 30%of the real
estate tax increment derived from the Developer's project,to be deposited
into the"Canton Crossing.Shopping Center Special Account', for reimbursement
of additional eligible project costs up to an additional$375,000. If the EAV
is reduced to less than $600,000,the City is not obligated to make the
annual reimbursement. If EAV is reduced to less than$600,000 for 4
consecutive years,then the Agreement shall terminate.
Beginning with tax year 2014 payable 2015,each year prior to March 31
the Developer will provide a sworn affidavit from each commercial retail
tenant which will cumulatively verify a minimum of 25 full-time or FTE
employees were employed at the facilities on Developer's property during
the previous 12 months.
This Agreement is not transferable or assignable prior to 12/31/21.
Term of Agreement: Until the TIF District ends in tax year 2027 payable 2028 or upon payment
of all eligible project costs,whichever occurs first.
Parcel: 09-08-25-301-017
Eligible Project Costs: Total eligible project costs not to exceed$1,175,000.
Amount verified as of August 5,2014: $1,102,439.50
canton TIF District 2/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777
EAST & EM PROPERTIES, LLC
Date Agreement Approved by City: November 19, 2013
Project: The Developer will paint the exterior building located at the corner
of 409-411 N. Main Street& 5 East Ash Street and incur costs for
contracted labor and materials.
Developer: East& EM Properties, LLC
c/o Nicholas Orwig, Member/Manager
875 East Linn Street
Canton, IL 61520
Description of Agreement: The Developer shall receive a grant in the amount of Four
Thousand Five Hundred ($4,500.00) from the TIF 2 Fund for
contracted labor and materials related to the Project.
If the Developer sells or otherwise conveys all or a portion of the
title to the Property to any other individual or entity other than the
current tenant within five (5)years following the execution of this
Agreement, the Developer shall repay a single lump sum to the
City equal to the proportionate amount of the grant funds provided.
Said proportionate amount shall be calculate on a daily rate
equivalent to 115 of the grant amount for each year remaining.
Term of Agreement: Agreement terminates five (5)years from the date of execution.
Parcel: 09-08-27-218-015
Eligible Project Costs: Eligible Project Costs total not to exceed $4,500.00.
Canton TIF District 2/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777
STINAUER FAMILY DENTISTRY,INC.
Date Agreement Approved by City: December 3, 2013
Project: The Developer will purchase property and prepare the site to
construct a new professional dental clinic on property located at
the southwest corner of Locust Street and North 5th Avenue.
Developer: Stinauer Family Dentistry, Inc.
c/o Dr. Robert F. Stinauer, DMD, President
312 W. Main St.
Havana, IL 62644
Description of Agreement:
The Developer shall receive 50% of the"net'real estate tax
generated by the project until the earlier of(a)tax year 2035
payable 2036; or(b) Developer has been reimbursed $175,000 of
total eligible project costs. "Net'increment is defined as real estate
tax increment derived from the Project after payment of
administrative fees and costs and payments pursuant to
Intergovernmental Agreements. The City will establish a separate
account within the TIF 2 Fund designated as the "Stinauer Family
Dentistry, Inc. Special Account".
Term of Agreement: The Agreement shall expire upon full reimbursement of all eligible
project costs; bankruptcy of the Developer; or the expiration of the
Canton 2 - Rt. 9/Chestnut St. TIF District in tax year 2035 payable
2036,whichever occurs first.
Parcel: 09-08-26-307-006; 007 and 008
Eligible Project Costs: Eligible Project Costs total not to exceed$175,000.
Canton TIF District 2/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777
JERRY JARNAGIN, INDIVIDUALLY&
AS TRUSTEE FOR CHESTNUT RENTALS LAND TRUST
Agreement Date: April 1, 2014
First Amendment: August 19,2014
Project: Renovate existing buildings located at 1605-1611 East Chestnut Street and make
additional site improvements for operation of a multi-unit retail shopping center.
Developer: Jerry Jarnagin, 3100 N. Main, Canton, IL 61520, Ph: (309) 224-1060
JJaaginA bdws.commai Ito:Barkerk42366(&yahoo corn
Agreement: City originally agreed to loan the Developer$60,000 from Canton 2 TIF Fund for
eligible project costs, to be paid to Developer within 90 days of execution of the
Agreement. (Loan was not paid to Developer.)
Amendment: Within 30 days of execution of the Amended Agreement, City shall forgive the
balance due under the Promissory Note and return it to the Developer marked
"cancelled". The City agrees to reimburse the Developer$20,000 per year for 4
consecutive years ($80,000 total) with the first payment due within 30 days of
execution of the Amended Agreement.
The City further agrees to reimburse the Developer 50% of the "net"
incremental increases in real estate taxes generated by the Project for
reimbursement of additional eligible project costs, commencing with tax year
2017 payable 2018. "Net" increment is defined as real estate tax increment
derived from Developer's project after payment of a proportionate amount of
administrative fees and costs and payments pursuant to any Intergovernmental
Agreements for this TIF District.
If, after 5 years from the execution of the Amended Agreement, the Property has
not generated sufficient municipal sales tax and real estate tax increment
("increment") for the City to recapture $60,000 ("recapture") of the amount paid
to the Developer in the first 4 years, the City shall not be required to reimburse
Developer 50% of the net real estate tax increment until the Property has
generated sufficient increment for the recapture. If the Property has not generated
sufficient increment upon expiration of the TIF District, within 5 days the
Developer shall pay to the City, the amount of any shortfall of the recapture.
Term: Until eligible project costs are reimbursed, upon bankruptcy of Developer, upon
Developer selling or otherwise conveying Property, or expiration of the TIF
District(tax year 2035 payable 2036), whichever occurs first.
Parcel: 09-08-25-301-006
Eligible Costs: Total reimbursements for eligible project costs not to exceed$323,500.
Canton TIF District 2/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777
Canton 2—Rt. 9/Chestnut St. TIF District
Redevelopment Project Area and Speical Surplus Area, as Amended
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Canton TIF District 2/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777
CITY OF CANTON
CANTON 2 - RT. 9/CHESTNUT ST. TIF DISTRICT
CANTON CROP SERVICE, INC.
July 17, 2012
Updated: 4/25/2013
Project: Prepare the site and construct a retail agricultural service facility on
8.2 acres located on Enterprise Drive, requiring a total projected
investment in excess of$400,000.
Developer: Canton Crop Service, Inc.
C/O Ken Barker, Owner/Operator
14750 E. Kenny Lane
Lewistown, IL 61542
Ph: (�09) 231-6206
Barkcrk423660"yalioo.com
Description of Agreement: Developer is to receive a percentage of the"Net"real estate tax
- increment derived from the Developer's project and deposited into
the"Canton Crop Service Special Account" as follows:
89% in tax years 2013 and 2014;
50% in tax years 2015 to 2018; and
75% in tax years 2019 through remaining life of the TIF District.
"Net"increment is defined as real estate tax increment derived
from Developer's project after payment of administrative fees and
costs and payments pursuant to Intergovernmental Agreements.
Term of Agreement: For the life of the TIF District or upon payment of all eligible
project costs, whichever occurs first.
Parcels: 09-08-29-401-012 (Lot 18) & 09-08-29-401-013 (Lot 19)
Eligible Project Costs: Total eligible project costs not to exceed $156,115.
N:V C.4ATTON4C4,VTON 1 RT9-Clieshrut S"greements!RD.4 Suniniaries iCanton Crop Sewtce.xpd
CANTON TI F 2 - RT. 9/CHESTNUT ST.
CANTON CROP SERVICE, INC.
2013 Payable 2014
Developer Reimbursement Calculation
9/25/2014
Taxable TIF Base 2013 Tax Real Estate Tax
Parcel Number Value Value Rate Increment
09-08-29-401-012 $2,590 $0 9.7486% $252.49
09-08-29-401-013 $28,600 $0 9.7486% $2,788.10
Totals $31,190 $0 $3,040.59
Surplus(20%): $608.12
Administrative Fee: $236.84
Net Real Estate Tax Increment: $2,195.63
Developer Share of Net(89%): $1,954.11
(Tax Years 2013&2014)
Total Verified Eligible Project Costs: $113,897.53
Total Developer Reimbursements to date: $1,954.11
Remaining Balance of Verified Eligible Project Costs: $111,943.42
C.JAH SrevelEDGICanton Crop Service Reimbs.xlsx The Economic Development Group,Ltd.
CANTON TI F 2 - RT. 9/CHESTNUT ST.
CANTON CROP SERVICE, INC.
2014 Payable 2015 Estimated
Developer Reimbursement Calculation
5/5/2015
ESTIMATE FOR REVIEW PURPOSES ONLY
Taxable TIF Base 2014 Tax Real Estate Tax
Parcel Number Value Value Rate Increment
09-08-29-401-012 $2,590 $0 9.8207% $254.36
09-08-29-401013 $81,8501 $0 $8,038.24
Totais $84,440 $0 9.8207% $8,292.60
Surplus(20%): $1,658.52
Administrative Fee: $400.44
Net Real Estate Tax Increment: $6,233.64
Developer Share of Net(89%): $5,547.94
(Tax Years 2013&2014)
Total Verified Eligible Project Costs: $113,897.53
Total Developer Reimbursements to date: $7,502.05
Remaining Balance of Verified Eligible Project Costs: $106,395.48
C.'W SteveJEDG►Canton Crop Service Reimbs.xlsx The Economic Development Group,Ltd.
CANTON TIF 2 - RT. 9/CHESTNUT ST.
2014 PAYABLE 2015
ESTIMATED REVENUES & EXPENDITURES
5/5/2015
2014 Estimated TIF Increase in EAV $1,900,805
2014 Total Tax Rate 9.8207%
Estimated TIF 2 2014 Real Estate Tax Increment $186,672
Estimated Developer Reimbursements:
Canton Crop Service, Inc. $5,548
Canton Crossing Corp. (2013-2014) $13,575
Jerry Jarnagin $20,000
Stinauer Family Dentistry, Inc. (2013-2014) $15
Estimated Surplus-Special Surplus Area $32,139
Estimated Surplus-Balance of TIF District $30,907
Estimated TIF Administrative Fees&Costs $9,014
Total Estimated TIF 2 Expenditures $111,197
Estimated TIF 2 Net Real Estate Tax Increment $75,475
H:CANTON�CANTON 2 RT9-Chestnutstjspreadsheetsl Net RETIJCanton 2 Estimated Net RE Tax Increment
CANTON TIF 1 - DOWNTOWN/5TH AVENUE
2014 PAYABLE 2015
ESTIMATED REVENUES & EXPENDITURES
5/5/2015
2014 Estimated TIF Increase in EAV $9,564,060
2014 Total Tax Rate 9.8207%
Estimated TIF 12014 Real Estate Tax Increment $939,258
Estimated Developer Reimbursements:
Canton Harvester Inn LLC $68,966
Cook Canton Real Estate LLC(PTFE)-2013/2014 $29,860
Cook Canton Real Estate LLC(PTFE)-2014/2015 $57,559
Crawford's Fashion Floors, Inc. (2011-2014) $3,427
Fuller's Jewelry, Inc. (On Hold) $22,000
Ipava State Bank $1,222
Jon & Kimberley Newburn $18,457
Lucas Subway, Inc. &Scott W. Lucas III $4,189
White Oak Tap, Inc. $1,743
Estimated Hotel Surplus $36,010
Estimated Hotel Additional School Share $3,619
Estimated TIF Administrative Fees&Costs $12,988
2011 Debt Certificate Payments $522,919
Total Estimated TIF 1 Expenditures $782,958
Estimated TIF 1 Net Real Estate Tax Increment $156,300
H: CANTONI CANTON 1-DT 5TH AVENUE TIFVpreodsheets�Net RETI�Conton 1 Estimated Net RE Tax Increment