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HomeMy WebLinkAbout#4051 Tax Increment TIF 3 CERTIFICATE THE UNDERSIGNED CERTIFIES THAT SHE IS THE CITY CLERK FOR THE CITY OF CANTON,ILLINOIS,AND THAT THE CITY COUNCIL AT A REGULARLY CONSTITUTED MEETING OF SAID CITY COUNCIL OF THE CITY OF CANTON ON THE 6114 DAY OF DECEMBER, 2016 ADOPTED ORDINANCE NO.4051,A TRUE AND CORRECT COPY OF WHICH IS CONTAINED IN THIS PAMPHLET. GIVEN UNDER MY HAND AND SEAL THIS i4111.1 DAY OF DECEMBER, 2016. (SEAL) � . T:NA AVL ROC CITY CLERK CITY OF CANTON, ILLINOIS ORDINANCE NO. 4051 AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A PROFESSIONAL SERVICES AGREEMENT for the ESTABLISHMENT AND ANNUAL ADMINISTRATION OF CANTON TAX INCREMENT FINANCING(TIP) DISTRICT NO.3 by and between JACOB&KLEIN,LTD.AND THE ECONOMIC DEVELOPMENT GROUP,LTD. and THE CITY OF CANTON,FULTON COUNTY,ILLINOIS PASSED BY THE CITY COUNCIL OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS, ON THE 61/'DAY OF DECEMBER,2016. PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY COUNCIL OF THE CITY OF CANTON,FULTON COUNTY,III INOIS, THIS 6^'DAY OF DECEMBER,2016 EFFECTIVE: DECEMBER 6,2016 ORDINANCE NO.4051 CITY OF CANTON,ILLINOIS AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A PROFESSIONAL SERVICES AGREEMENT for the ESTABLISHMENT AND ANNUAL ADMINISTRATION OF CANTON TAX INCREMENT FINANCING(TIF)DISTRICT NO.3 by and between JACOB&KLEIN,LTD.AND THE ECONOMIC DEVELOPMENT GROUP,LTD. • and THE CITY OF CANTON,FULTON COUNTY,ILLINOIS BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF CANTON THAT: 1. The City of Canton,Fulton County,Illinois(the"City"),wishes to establish a Tax Increment Financing District to be located within Canton, Illinois pursuant to the Tax Increment Allocation Redevelopment Act,65 ILCS 5/11-74.4-1 ea seq. (the"Act'). 2, The City wishes to engage the professional services of Jacob & Klein, Ltd. to tender administrative services and legal advice and The Economic Development Group,Ltd.to render technical advice to assist the City in establishing CANTON TAX INCREMENT FINANCING(TIF)DISTRICT NO.3 pursuant to the Act 3. The Mayor is hereby authorized and directed to enter into and execute on behalf of the City said Professional Services Agreement and the City Clerk of the City of Canton is hereby authorized and directed to attest such execution. 4. The Professional Services Agreement shall be effective on the date of its approval by the City. 5. This Ordinance shall be in full force and effect from and after its passage and approval as required by law. Age 20 e PASSED,APPROVED AND ADOPTED by the Mayor and City Council of the City of Canton this 66 day of December,2016 and filed in the office of the City Clerk of said City on that date. MAYOR&ALDERMEN AYES NAYS ABSTAIN/ABSENT Ryan Mayhew X Tad Putrich X ABSTAIN Craig West X Gerald Ellis X Justin Nelson X John Lovell X Angela Hale X Jeff Piltz,Mayor TOTALS: 6 0 1 APPROVED: Mayor Ai1TES11: /� /' City Clerk I.StIIblT '. Lunn; Pmfesuonat Services Agreement Page3r'1 EXHIBIT A PROFESSIONAL SERVICES AGREEMENT for the ESTABLISHMENT AND ANNUAL ADMINISTRATION OF CANTON TAX INCREMENT FINANCING(IiP)DISTRICT NO.3 by and between JACOB&KLEIN,LTD.AND THE ECONOMIC DEVELOPMENT GROUP,LTD. and THE CITY OF CANTON,FULTON COUNTY,ILLINOIS Pca 4 of I PROFESSIONAL SERVICES AGREEMENT for the ESTABLISHMENT AND ANNUAL ADMINISTRATION OF CANTON TAX INCREMENT FINANCING (TIF) DISTRICT NO.3 by and between JACOB&KLEIN,LTD.AND THE ECONOMIC DEVELOPMENT GROUP,LTD. and THE CITY OP CANTON,ILLINOIS DECEMBER 6,2016 PROFESSIONAL SERVICES AGREEMENT for the ESTABLISHMENT AND ANNUAL ADMINISTRATION OP CANTON TAX INCREMENT FINANCING(TIP)DISTRICT NO.3 by and between JACOB&KLEIN,LTD.AND THE ECONOMIC DEVELOPMENT GROUP,LTD. and THE CITY OF CANTON,ILLINOIS THIS AGREEMENT is entered into this 0 day of December,2016,by and between the CITY OF CANTON,ILLINOIS("CITY");and JACOB&KLEIN,LTD.,Bloomington,IWnois("J&K"); and THE ECONOMIC DEVELOPMENT GROUP,LTD.,Bloomington,Illinois("EDG"). WHEREAS,the City wishes to establish a Tax Increment Financing District pursuant to the Tax Increment Allocation Redevelopment Act(the"Act'),65 ILCS 5/11-74.41 et seq.to be located in the City;and WHEREAS,the City desires to engage the professional services of J&K to render legal advice and EDG to render technical advice to assist the City in Establishing and Annually Administering a Tax Increment Financing Redevelopment Plan,Area and Projects to be known as the CANTON TQAX INCREMENT FINANCING(TIP)DISTRICT NO.3 (referred herein as"Canton TIF District No.3"or the'TIF District');and WHEREAS,the proposed study boundary for the TIE District is currently illustrated and attached hereto.as Exhibit L NOW,THEREFORE,the Parties agree as follows: Sl. City to Engage J&K and EDG. The City agrees hereby to engage the services of J&K and EDG for the purposes set forth herein and J&K agrees to provide all legal advice to EDG and the City to prepare or coordinate the preparation of Reports,the TIP District Plan,Notices and Documentation(including those reports prepared by other professionals)necessary to complete the Establishment and the Annual Administration of the TIF District Plan,Area and Projects as required pursuant to State Statutes and as outlined below in Section Z,Scope oJY:o/enionel.l'erricer. 1.1 The Parties agree that J&K,as Attorneys,will undertake those responsibilities that require legal advice or preparation under this Agreement on behalf of the City or EDG. EDG is a separate corporate entity established by Thomas N.Jacob and is owned in whole or in part Cry(Carton Tax Incncra Ftnenneg rrTF)Dirh,1 No. 3 Pay 1(11 Pref i rrivaa7 Smitm Agreement by him. He is also the principal owner of Jacob&Klein,Ltd. Q&K). The City is entering into this Agreement voluntarily and with informed consent after the opportunity to consult with independent counsel as to the ownership of both entities by Thomas N.Jacob. 1.1-1 J&K may,in addition, be retained by the City as its special attorney to perform other professional services outside the Scope of Services set forth herein, including representation of the City before State agencies or the Illinois Legislature. Such representation shall be at the Attorney's then current hourly rate for similar services or as otherwise agreed. Any such representation shall be pursuant to a written agreement between the Parties. A. Legal services provided by J&K and/or consulting services provided by EDG with regard to financing,including the issuance of Bonds involving the TIF District,will be billed separately from this Agreement and subject to the terms of any agreements related to such financing or Bonds. B. This Agreement does not include representation in any Court case resulting from the establishment of the TIF District Plan,Area or Projects or the Annual Administration of the TIF District. 1.2 The total Fees and Reimbursable Costs to be paid hereunder by the City to J&K and EDG, when billed by each of the separate entities,will not be duplicated and will not exceed the total Fees and Reimbursable Costs provided for herein. 1.3 The Parties agree that pursuant to Staloff 5/11-74.4-30J(1)of the Act,all Professional Fees and related Costs incurred by the City for Establishing and Annually Administering the TIF District are TIF eligible project costs and are fully reimbursable to the City from the real estate tax increment generated by the TIF District. 1.4 The City hereby acknowledges that J&K and EDG are not responsible for monitoring and documenting matters relating to compliance with the Illinois Prevailing Wage Act,the Illinois Procurement Code, and any other wage and/or employment laws, to the extent such are applicable to any public or private project undertaken within the TIP District Redevelopment Project Area or the Area as may be amended in the future. City ofCanto,Tax!nomad Finargng(17F)Dual'No. 3 Page 2 of 12 Prvkui••nal Snvirer.. ipn'.went s2. Scope of Professional Services. 2.1 Establishment of TIF District. 2.1-1 Services. J&K and EDG will provide services as outlined in Exhibit2to Establish the TIF District. 2.1-2 Term.This Professional Services Agreement for the Establishment the TIF District shall commence immediately and shall continue until the presentation of the TIP Plan and appropriate ordinances to the City Council for the Establishment of the TIF District. It is anticipated that the TIF District will be established on or before February 2B, 2017 barring unexpected complications. 2.1-3 Payment of Fees and Reimbursable Costs. The total Professional Fees to be paid by the City to J&K and EDG for the Establishment of the TIF District are Twenty-Five Thousand and 00/100 Dollars($25,000.00)plus all Reimbursable Costs incurred in the establishment of the TIF District,and are to be paid as follows: A. J&K shall be paid a total sum of Ten Thousand and 00/100 Dollars($10,000.00) upon execution of this Agreement;and B. J&K and EDG shall be paid upon delivery of the TIP District Plan to the City an additional sum of Ten Thousand and 00/100 Dollars ($10,000.00) plus Reimbursable Costs incurred up to the date of delivery of the draft TIP Plan to the City,and C. The balance of the Professional Fees, Five Thousand and 00/100 Dollars ($5,000.00), and the remaining balance of Reimbursable Costs relating to the establishment of the TIE District shall be paid when the final TIP Plan and related Ordinances ere presented to the City Council for passage. D. All Reimbursable Costs incurred by J&K and EDG as part of the Establishment of the TIF District shall be reimbursed to J&K and EDG by the City, including all reasonable travel and subsistence expenses while away from Bloomington,Illinois, performing said Professional Services described in Exhibit 2 and subject to the following condirions: O All travel will be reimbursed for mileage at the maximum rate permitted by Cii&fCaaton rax lxmx«1 Firand g(rrr)Du rrct Pio. . Page 3 o(12 Anja .,sai Semites 1,.•.ient Internal Revenue Service Rules and Regulations at the time of service. All other costs which are incidental to the establishment of the TIP District,including staff support costs, photocopying and report binding, mailings, postage, and telecommunication charges,shall be reimbursed at the current rates then charged by J&K and EDG. G. The City understands and acknowledges that J&K and EDG will rely on the work of other professionals,including the City's Engineers and Attorney,to prepare reports and documentation needed for the TIP District Plan,Projects and Reports and other necessary documents; and that J&K and EDG shall rely on their professional expertise to prepare the TIP District Plan and present material and information necessary to the Establishment of the District. The City further understands that it may directly incur additional fees and costs for the Establishment of the TIF District which result from the involvement of other(i.e.,non-J&K/EDG)professionals. 2.2 Annual Administration of TIP District. 2.21 Services. 1&K and EDG will provide services as outlined in Exhibit 3to Annually Administer the TIE District. A. On an annual basis,all of the legal review of documents and matters relating to the statutory compliance of public and private development activities occurring within the TIF District are provided by J&K in the Annual Administrative Fee. Other administrative functions will be provided by EDG. EDG will also provide financial feasibility analyses for new proposed private developments. J&K will provide legal services required in the preparation of new Redevelopment Agreements and other legal documents and legal opinions. B. To the extent possible, J&K and EDG will attempt to include in Private Redevelopment Agreements provisions allocating a portion of the Annual Administrative Fees,Annual Costs and other fees to those Private Developments on apro-rata basis determined by the incrementgenerated by those Developments which have Redevelopment Agreements. 2.2-2 Term. The term of the Annual Administrative Services provided in this Agreement shall be for three(3)years(Fiscal Years 2017,2018 and 2019)and shall commence immediately following the establishment of the TIE District. Thereafter, this Agreement shall automatically renew at the end of each three-year period during the life of the District as G't o/Canton'i,:InmunJ I n:arr ig(llb) 7irlr.'J!So. 3 Page 4 of 12 Pm,.;uncal Serving Agreement a roll-over, for a new period of three years, absent notice of non-renewal as provided herein. This Agreement as it relates to arcual administrative services may be terminated by written notice of non-renewal from the City to J&K and EDG no later than one(1) year prior to the end of each contract period. Upon receiving written notice of non- renewal,J&K and EDG is to provide to the City a final invoice for professional fees and costs incurred as of the date of the termination. 2.2-3 Payment of Annual Administrative Fee and Reimbursable Costs. A. The total Annual Administrative Fee to be paid by the City to J&K and EDG for the Annual Administration of the TIFDisttitx shall bean annual fee ofThree-Thousand Five-Hundred and 00/100 Dollars ($3,500.00). B. On an annual baths,the Annual Administrative Fee shall be annually increased by the Consumer Price Index - All Urban Consumers IL-IN-WI,using 2016 as the base year. C. In addition to the Annual Administrative Fee,all Reimbursable Costs incurred by J&K and EDG as part of the annual administration of the TIF District shall be reimbursed to J&K and EDG by the City,including all reasonable travel and subsistence expenses while away from Bloomington, Illinois, performing said Professional Services described in Exhibit Sand subject to the following conditions: 0 All travel will be reimbursed for mileage at the maximum rate permitted by Internal Revenue Service Rules and Regulations at the time of service. All other costs which are incidental to the establishment of the TIF District,photocopying and report binding,mailings,postage,and telecommunication charges,shall be reimbursed at the current rates then charged by J&K and EDG. Cu) During the course of providing administrative services,J&K and EDG will enlist the aid of their Staff for additional support services in order to properly perform the duties and obligations required under this Agreement. The cost to J&K and EDG for said services shall be charged to the City on a cost-reimbursement basis at customary rates charged by J&K and EDG. For purposes of this Agreement, Staff Costs do not relate to the time of J&K Attorneys Thomas N.Jacob,Herb Klein,and Nic Nelson,or time incurred by Steven Kline(EDG)while performing said professional services described in Exhibit .2 The total Annual Administrative Costs relating to Staff Costs shall not annually exceed One Thousand Five Hundred and 00/100 Dollars($1,500.00) without consent of Gly of Codes Tar It ruvnl (11F)Dir tie!PI 3 Pays 5 e12 P, ier:lima!S'maasAgreement the City in advance of such additional services being performed. D. For Annual Administrative Fees and Annual Administrative Costs,J&K and EDG shall bill the City on a quarterly basis. (i) For purposes of this Agreement,quarterly billings shall occur as follows. January-March Billed in April April June Billed in July July-September Billed in October October-December Billed in December (ii) Annual Base Administrative Fees shall be adjusted annually for the Consumer Price Index -All Utban Consumers IL-IN-WI,using 2016 at the base year and prorated in equal installments for purposes of determining quarterly billings. E. The City understands that J&K and EDG shall rely on the work of others,including the City's Auditors, Attorney,and Clerk; the Fulton County Assessor and County Clerk; the Illinois Department of Revenue (IDOR); the Illinois Department of Commerce and Economic Opportunity(DCEO);the Illinois Comptroller's Office and the Illinois State Board of Education for information aim documentation necessary for the Annual Administration of the TIF District. The City further understands that it may directly incur additional fees and costs for the Annual Administration of the TIF District which result from the involvement of other(non- J&K/EDG)profersionais. 53. Amendments to thin Agreement. The Parties hereto may amend this Agreement at any time by their mutual consent which amendment must be in writing and executed by the Parties. 54. Entire Agreement. The Terms and conditions set forth in this Agreement supercede all prior oral and written understanding and constitute the entire Agreement between the Parties with respect to the subject matter hereof. 55. Binding Upon Successors in Interest. This Agreement shall be binding upon all the Parties hereto and their respective heirs, successors, administrators, assigns, or other successors in interest City of C'elrn Tax Inereinenl Enuring(I11)Di•iriet No. 3 Peg 6 112 Pi.±n,e r+mal Smear Ageement s6. Notices. Notices or demands hereurder shall be in writing and shall be served(a)by personal delivery,or(b)certified mail,return receipt requested to: The City of Canton Jacob&Klein,Ltd.and %Canton City Clerk The Economic Development Group,Ltd. 2 Main Street 1701 Clearwater Avenue Canton,Illinois 61520 Bloomington,Illinois 61704 Ph:(309)647-0065 Ph: (309)664-7777 or to the last known address of either party or to the address provided by any assignee if such address has been given in writing.In the event said notice is mailed,the date of service of such notice shall be deemed to be three(3)business days after the date of delivery of said notice to the United States Post Office. §B. Severability. If any provision of this Agreement is held to be invalid,the remainder of this Agreement shall not be affected thereby. 59. Choice of Law/Venue.This Agreement shall be governed by and construedin accordance with the laws of the State of Illinois with venue lying in the Circuit Court of McLean County,Illinois. [The remander of this page it intentionalf blank] Ciy of Canon Tar nneriat Fir:wa.'4?(17F)1 ..;:a No..3 Paw 7 of 12 1'8n/r..ultno!Settdres Ign./meat IN WITNESS WHEREOF,the City,J&K and EDG have executed this Professional Services Agreement on the day and year above written. THE CITY OF CANTON an Illinois JACOB &KLEIN,LTD.,an Illinois Municipal Corporation: Professional Service Corp.: 2 North Main Street 1701 Clearwater Avenue Canton,Illinois 61520 Bloomington,IL 61704 Phone: (309) 647-0065 Phone:(309)6647777 Fax: (309)647-0065 Fax: (309 7878 By: — By: hairman Mayor / h ) • ) ) i i Aucstt {4' !P-- �? �; THE ECONOMIC DEVELOPMENT City Clerk GROUP,LTD.,an Illinois Corporation: 1701 Clearwater Avenue Bloomington,IL 61704 Phone: (309) 664-7777 Fax:(309)6 7878 By:. President SS �� \\rd<mV l\CANTON\CANTON.3-VII]1S\PSA\prop ,-_Gunton'TIE 3_PS&21 Nov 21116.wpa City al Carton Tax Lament Finandn;(HF)Dulriallo.1 Age 800.12 Profwiono/Semen Agreement EXHIBIT I PROPOSED TIP DISTRICT STUDY BOUNDARY PROPOSED CANTON TIE DISTRICT NO.3 STUDY BOUNDARY and CANTON TIF DISTRICT 1 AND TIF DISTRICT 2 AMENDED AREAS (111WITTATICN FOR DISCUSSION PURPOSES ONLY.NOVEMBER It 1018 E. W.4‘ r ,. -a '; E . . e - 41 1+ 4:r... 1 � ' ad A- tr ..�.. rH , .. te: ri - > - rii; r (r n ' _, Irl , a1... . i �- , E Y — y . yam- d ic 1 i + : _.. 5 .. ! yf ia . . - — 'I 4Z - M4 V. I we I - ylll. Ciy of Canton Tex Inmenent booming am Dimiet No.3 Page 9°f 12 P�r/i-.ccina/S'emirer Agnsmen! EXHIBIT 2 ESTABLISHMENT OP CANTON TIP DISTRICT NO.3 Services to be provided to the City by J&K and EDG relating to the Establishment of Canton TIP District No.3 are set forth as follows: 1. Create estimated TIF District Time Line. 2. Work with local elected officials,City staff and engineers to define the Redevelopment Project Area(TIE District Boundary). 3. Evaluate the statutory and financial feasibility of creating the TIP District. 4. Consult on any necessary Annexation Agreement(s)with Developer and City Attorney. 5. Create the TIP District Redevelopment Plan. EDG will collect a variety of information from the City and, with J&K, draft the TIF Redevelopment Plan. Local officials will provide historical information,access to legal descriptions,street maps/Sidwell maps,engineering opinion letters, descriptions and estimated costs of potential public and private projects, potential private development build-out rates,property tax bills,assessment data,and identification of officials' properties and other City records as necessary to establish the TIF District. 6. Organize and conduct the first meeting of the Joint Review Board. 7. Consult with the School District to determine and analyze the potential impact, evaluate alternative approaches for assisting the school district and prepare necessary Intergovernmental Agreements,if required. 8. Assist the City to negotiate Redevelopment Agreements with potential Developers. 9. Establish an Interested Parties Registry. 10. Prepare and send all Notices to taxing bodies,taxpayers,residences within 750 feet of proposed TIF District,and to those individuals or organizations listed on the Interested Parties Registry. 11. Prepare and arrange for tie City Clerk all publications required of the City. 12, Conduct Public Hearing to review the proposed TIF District with the public. 13. Draft and present to the City all requited Ordinances to create the TTP District. City of Caoron Ta:'nehmen/Financing(77F)Dirdid No. 3 Page 10 of 12 l'oviLavonal Senna: totuuent EXHIBIT 3 ANNUAL ADMINISTRATION OP CANTON TIP DISTRICT NO.3 Services to be provided to the City by J&K and EDG relating to the Annual Administration of Canton TIF District No.3 arc set forth as follows: 1. Provide the City with on-call legal and consulting services on matters relating to the TIF District as needed. 2. Consult with and coordinate administrative activities with City's Administrator, City Clerk,CPA, Mayor and other officials as required. 3. Track and monitor the growth of annual Real Estate and Sales Tax (f appropriate)Increments within the TIF District 4. Negotiate terms of TIE Reimbursements and prepare Redevelopment Agreements with Developers. 5. Consult with Developers regarding TIP Redevelopment Agreements and Reimbursements. 6. Communicate with Developers and the County Supervisor of Assessments to review improvements,paid tax bills and changes in Equalized Assessed Valuations. 7. Advise City on matters relating to Developer Reimbursements(e.g.,verify paid property tax bills and eligible project costs,and advise the municipality to make payments). 8. Provide City with a Requisition/Payment Approval process. 9. Advise City on matters relating to payments to other taxing bodies under Intergovernmental Agreements. 10. Prepare TIF District Annual Reports for submission to City and other taxing districts. Il. Prepare,certify,and submit AnnualTIPDistrict Reports tothe Office of the Illinois Comptroller. 12. Provide legal opinion (j&K) on matters relating to Annual Reports to State Comptroller as required by the TIF Act 13. Conduct City's Annual Joint Review Board Meetings with Taxing Bodies as required by the TIE Act 14. Work with the School District(s) to determine and analyze potential financial impects,evaluate alternative approaches for assisting the school district and prepare necessary Intergovernmental Agreements. Cit.o'Csv/or:Tax loom tem Eiwnaig(7F)Dimirt do. 3 Page 11 of 12 P.•ni4nena/Servimr.9gtwment 15. Prepare TIF Increment Projections for City and Reimbursement Estimates for Developers. 16, If EDG is engaged as the City's Registered Municipal Advisor,EDG shall assist the City with: analyzing the potential use of TIP Revenue Bonds, Developer Notes and other financing alternatives; and arranging for Bond Counsel when required by City or Developer. All professional services related to the issuance of Bonds will be additional and charged at the then applicable rates pursuant to a separate professional services agreement. [Tbe remainder qt this Age u intenhronapy blartk.] Cig of CORMS Tax homely Finarrnng(I f )Drrnrd IVa 3 Pep t2 o(I2