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HomeMy WebLinkAbout#5126 Hitchcock Scrapyard RESOLUTION NO 5126 A RESOLUTION APPROVING A LEASE AGREEMENT BETWEEN HITCHCOCK SCRAPYARD, INC., AN ILLINOIS CORPORATION AND THE CITY OF CANTON AND DIRECTING THE MAYOR AND CITY CLERK TO EXECUTE AND DELIVER SAID LEASE AGREEMENT ON BEHALF OF THE CITY OF CANTON, ILLINOIS. WHEREAS, the City of Canton owns approximately 1.176 acres, more or less, including an access point being 100 feet wide for said access purposes, located and being a part of the Northeast Quarter of Section 34, Township 7 North, Range 4 East of the Fourth Principal Meridian, Fulton County, Illinois; WHEREAS, the City desires to lease the ground so that it can be cleaned up, enhanced and utilized for potential economic development purposes: and WHEREAS,the Legal & Ordinance Committee of the City of Canton has determined it is necessary and in the best interests of the City of Canton to enter into a lease agreement with Hitchcock Scrap Yard, Inc. as set forth in Exhibit " A" attached hereto and incorporated herein; and WHEREAS, the City Council of the City of Canton has made a similar determination and is agreement to approve this Resolution and has already approved the Lease Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF CANTON,ILLINOIS,AS FOLLOWS: I. That the agreement attached hereto and incorporated herein as Exhibit " A" is hereby approved by the Canton City Council effective October 16, 2017; 2. That the Mayor of the City of Canton, Illinois are hereby authorized and directed to execute said Agreement on behalf of the City of Canton; 3. That this Resolution shall be in full force and effect effective Octoberl 6, 2017. PASSED by the City Council of the City of Canton, Illinois, at a regular meeting this 21 day of November, 2017, upon a roll call vote as follows: AYES: Alderman Justin Nelson, Angeila Lingenfelter, Tad Putrich, Angela Hale, John Lovell, Chris Jump, Ryan Mayhew NAYS: None ABSENT: Alderman Craig West ABSTAIN: None AP ROVED: KKdtl M t cDowell, Mayor ATT / Diana Pavley-Rock, 'ty Clerk 2 LEASE AGREEMENT This Lease Agreement made this 181 SE day of October, 2017, by and between CITY OF CANTON, 2 North Main Street, Canton, Illinois 61520, hereinafter referred to as "Landlord"; and Hitchcock Scrap Yard, Inc., an Illinois corporation, whose address is 22501 IL-78, Canton, Illinois 61520,hereinafter referred to as "Tenant". WITNESSETH: 1. PREMISES: Landlord, for and in consideration of the covenants and agreements hereinafter mentioned to be kept and performed by Tenant,has demised and leased to the Tenant the real estate described on Exhibit A, attached hereto and made a part hereof by reference ("Demised Premises"). 2. TERM: (a) The term of this Lease is for a period of one(1)year,commencing on the Pt day of November, 2017,and ending on the 31"day of October 2018. That if Tenant continues to utilize the Demised Premises after the end of the term then this lease shall convert to a month-to-month lease thereafter. (b) That either party may terminate the initial one (1) year lease period with ninety (90) days written notice to the parties as detailed in Provision 20 below. Further, if the lease has converted to a month- to-month lease then either party may terminate this lease with thirty (30) days written notice to the parties as detailed in provision 20 below. 3. USE: It is agreed that the Demised Premises hereby leased will be used by Tenant during the course of this Lease for purposes of hauling and transporting scrap metal and related items via the railway affiliated with the Demised Premises. Tenant additionally understands that it shall have access to the Demised Premises by using a 58-foot-wide strip within the Fourth Street right-of- way. It is also understood and required that Tenant comply with all local, State,and Federal laws so that it may utilize the railway for these purposes. Tenant shall obtain all permits,licenses and obtain any necessary permissions through any local, State, Federal government and/or commissions to legally and lawfully utilize the Demised Premises and operate the railway. Tenant understands that Tenant's use of the property may be impacted by third parties who are also allowed to use the Demised Premises or property near or adjacent to the Demised Premises. If a third party's use of the Demised Premises or property near or adjacent to the Demised Premises prevents Tenant from being able to utilize the Demised Premises for the purposes of this lease then the Landlord and Tenant shall attempt to negotiate with the third party and shall attempt to resolve the issue prior to any party seeking to terminate this Lease. 4. RENT: During the term of this Lease,rent shall be paid in the following amounts: (a) $1,250.00 upon the signing of this Lease, which shall be the first month's rent($250.00)and deposit($1,000.00). The deposit shall be held by Landlord and may be utilized not only for reimbursement of damages but also for the payment of rent or any other payments to comply with any other obligations of the Tenant under the terms and conditions of this Lease; (b) $250.00 payable on the 1"day of December,2017,and continuing on the P` day of each month thereafter for the remainder of the lease; until the monthly payment due on October 1, 2018. (c) A late charge of $5.00 per day shall be assessed for each day rent remains unpaid after the due date. 5. PROPERTY & CASUALTY INSURANCE: Landlord shall not be required to maintain any insurance relative to the Demised Premises or the activities of the Tenant affiliated with or on the Demised Premises. Landlord shall have no liability to Tenant for damage to the Tenant's property located upon the Demised Premises leased hereunder nor shall Landlord have any responsibility to Tenant for any loss or damage caused by business interruption or consequential damages flowing from the interruption of business by virtue of loss, damage or casualty concerning the property leased hereunder. Tenant shall obtain such insurance as Tenant deems appropriate to 2 insure loss or damage to any of Tenant's property located on the Landlord's premises and such coverage for business interruption or consequential damages as Tenant shall deem appropriate. 6. OTHER INSURANCE: (a) Liability Insurance: Tenant covenants and agrees that it will carry with a responsible insurance company, throughout the term of this Lease, insurance indemnifying and protecting both Landlord and Tenant against loss, suits for damage and liability claimed to arise directly or indirectly from the use or occupancy of the demised premises or any part thereof,in an amount not less than$1,000,000.00 single limit coverage for bodily injury and/or damage to property. Tenant shall provide a certificate to the Landlord showing the existence of such insurance in full force and effect and that Landlord is a named insured thereon prior to Tenant going into possession of the Demised Premises and from time to time thereafter as said insurance is renewed. Tenant consents to direct contact by Landlord with said insurance company to verify the existence of such insurance in compliance with this paragraph; (b) Indemnity: Tenant shall assume and hold Tenant harmless against any and all expense, loss, claim, demand or judgment of any kind including, without limitation, attorney's fees, court costs, expert witness expenses and the reasonable costs of the defense resulting from a violation of any of the terms and conditions of this paragraph or the failure to maintain insurance coverage naming the Landlord as a named insured thereon in accordance with the terms and conditions of this Lease Agreement. 7. DAMAGE TO PREMISES: In the event that the Demised Premises shall be wholly or partially destroyed by fire or other casualty,then: (a) In the event there is total or substantially total destruction of the improvements on the property, the Landlord shall have the sole and exclusive option to declare this Lease Agreement void by a written declaration voiding such lease and sent to the Tenant at the Tenant's last known address. Upon such declaration, Landlord shall be entitled to all of the proceeds of any insurance arising from the damage or destruction to the fixtures and/or Landlord's improvements which are leased hereunder. Rent shall abate upon Landlord's declaration that the Lease has been terminated,or fourteen (14) days from the casualty, whichever occurs first. Upon termination hereunder, Tenant shall be released from all obligations under this Lease. Tenant shall obtain such business interruption 3 insurance as Tenant deems appropriate to insure against such casualty. (b) In the event that there is partial destruction of the improvements on the property so that Tenant's normal business activities may not be accomplished without significant interruption and/or inconvenience, Landlord shall have the sole and exclusive option to declare this Lease Agreement void. Upon such declaration, Landlord shall be entitled to the proceeds of any insurance arising from the damage or destruction to the fixtures and/or Landlord's improvements which are leased hereunder. Such declaration shall be made by a notice in writing to that effect sent to the Tenant at the Tenant's address shown herein, or at such other address as Tenant may furnish from time to time. Upon such declaration, Tenant's obligation to pay any rental payments or comply with the terms and conditions contained in this Lease shall be at an end. Tenant shall be free to relocate its business. Tenant shall obtain such business interruption insurance as Tenant deems appropriate to insure against such casualty. (c) In the event that the partial damage or destruction is so slight that Tenant's normal business activities are affected adversely but may still be accomplished without significant interruption to Tenant's business, then rent shall not abate and Landlord shall promptly undertake the repair and restoration of the building. Tenant shall obtain such business interruption insurance as Tenant deems appropriate to insure against such casualty. 8. CONDEMNATION: Tenant agrees that it has no right to the receipt of any condemnation proceeds in the event all or a part of the Demised Premises is condemned during the term of this Lease. All such proceeds shall be the property of the Landlord. 9. FIXTURESIIMPROVEMENTS/EOUIPMENT: (a) Any and all personal property placed in the premises by Tenant which remains personal property and does not become attached to or a part of the real estate,may,at the termination of the Lease,be removed by Tenant. Trade fixtures and improvements by the Tenant which have become permanently affixed to the Landlord's property and which may not be removed without causing damage to the improvements on the premises shall remain the property of the Landlord. It is understood by the parties that Tenant shall remove an existing fence located on the south side of the Demised Premises and shall replace it with a new fence. If and when this Lease terminates,the new fence shall become the property of Landlord without any requirement for Landlord to compensate Tenant for same. This paragraph shall not be 4 construed to apply to personal property incorporated into normal and routine repairs and maintenance to maintain the premises in the same state of repair as it was at the date of this Lease Agreement,ordinary wear and tear excepted, all of which personal property so incorporated shall remain the property of the Landlord at the termination of this Lease. All leasehold improvements, fixtures and equipment at the time of the commencement of this Lease and any replacements of those fixtures and equipment shall remain the property of the Landlord herein. 10. UTILITIES: TENANT shall pay all utilities associated with the use and/or occupancy of the Demised Premises including, without limitation, all electricity, water, telephone, intemet service, and propane. TENANT shall obtain utility service in its own name and pay such deposits as may be required. No utility service shall be obtained by the TENANT in LANDLORD's name under any circumstances whatsoever without the LANDLORD's written consent which consent may be arbitrarily withheld by LANDLORD. 11. ALTERATIONS: TENANT shall not make material structural changes or alterations to the improvements on the Demised Premises without the written consent of LANDLORD, which consent shall not be unreasonably withheld. 12. MECHANIC'S LIENS: TENANT shall not allow any mechanic's liens to attach to LANDLORD's premises and shall immediately pay for all repairs or improvements hired or obtained by TENANT as the same become due and owing. In the event a mechanic's lien is filed hereunder, the filing of same shall be grounds for the declaration of a default and termination of this Lease by LANDLORD unless the TENANT shall, within five (5) days of written demand therefore by the LANDLORD, discharge said lien in its entirety. In the event TENANT shall desire to contest the validity of any mechanic's lien filed against LANDLORD's property, TENANT shall deposit with LANDLORD an amount equal to the mechanic's lien claim together with an additional 25%thereof, but not less than$1,500.00 for anticipated attorney's fees and interest and upon the deposit thereof, TENANT may contest said lien. To the extent that LANDLORD is made a party to such contest or 5 proceeding, LANDLORD may utilize the deposit made by the TENANT for the purpose of paying LANDLORD's reasonable fees and expenses for participation in such litigation. Notwithstanding the foregoing,TENANT shall assume and hold LANDLORD harmless against any and all liability, cost,judgment or damage thereunder including, without limitation, reasonable attorney's fees,court costs,expert witness fees and all other reasonably necessary expenses of litigation. 13. REAL ESTATE TAXES: LANDLORD shall pay all general real estate taxes and special assessments incurred during the term of this Lease or any extension thereof. 14. TERMINATION: This Lease and all of the rights of the TENANT hereunder may, at the option of the LANDLORD, be terminated upon TENANT being, by any Court, adjudged incompetent, insdlvent, bankrupt or upon TENANT making an assignment for the benefit of creditors. LANDLORD shall, nevertheless, be able to be entitled to recover or make a claim in bankruptcy for all such amounts due and owing under the Lease through and including the date of termination. LANDLORD may also terminate this Lease upon a default by the TENANT as hereinafter provided. LANDLORD shall also have the right to terminate this Lease upon a default by the TENANT as set forth herein. 15. PAYMENTS BY LANDLORD: LANDLORD shall have the right to make any payment required to be made by the TENANT hereunder and upon the making of such payment, TENANT shall immediately reimburse LANDLORD upon written or verbal request for such reimbursement by LANDLORD and upon the failure to make such reimbursement, TENANT shall be deemed in default hereunder and this Lease may be immediately terminated. 16. DEFAULT: It is expressly agreed that time of payment and the time of performance of the obligations of the TENANT hereunder are of the essence of this Lease. If TENANT shall fail to pay any obligation due and owing to the LANDLORD promptly on the date when same shall 6 become due and payable hereunder and shall continue in default for a period of five (5) days after written notice thereof by the LANDLORD sent to the TENANT by Certified U.S. Mail, Return Receipt Requested, or if TENANT shall fail to promptly keep and perform any other covenants of this Lease (other than covenants requiring a payment to the LANDLORD or to others) and shall continue in default for a period of thirty (30) days after written notice thereof by the LANDLORD sent to the TENANT by Certified U.S. Mail, Return Receipt Requested,then and in such event,and as often as such event shall occur, LANDLORD may take possession of the Demised Premises without further notice and re-let the same to other Tenants without such action on the LANDLORD's part being deemed an acceptance or surrender of this Lease in any way terminating TENANT's liability hereunder. TENANT shall remain liable to pay all payments which it is obligated to make hereunder and all other expenses and charges incident to the Lease and/or such repossession or re- letting,including,but not limited to, reasonable attorney's fees,court costs,expert witness expenses and all other reasonable costs of suit thereon, less the amounts realized from any such re-letting. LANDLORD shall have the right and option,at its election,to terminate and cancel all rights of the TENANT to possess or occupy the premises in the event of defaults which are not cured in accordance with this paragraph. The failure of the LANDLORD to insist upon strict performance of any one or mote occasion shall not be deemed a waiver of the LANDLORD's right to demand strict performance of each and every covenant contained in this Lease in the future. In the event that TENANT shall fail to comply with the terms and conditions of this Lease, then LANDLORD may collect, in addition to all damages and expenses herein, the reasonable attorney's fees, court costs, expert witness expenses and other reasonable costs and expenses incurred by the LANDLORD in the enforcement of the terms and conditions hereunder. The parties hereto acknowledge that this is a commercial lease and that the notices required under Article IX of the Code of Civil Procedure of 7 the State of Illinois(735 ILCS 5/9-101 et seq.) shall only require the giving of the notice set forth in this paragraph to the extent inconsistent with any of said provisions of the Code of Civil Procedure. TENANT waives a jury trial of any issues of possession hereunder. 17. AMENDMENT: This Lease Agreement may only be amended by the parties upon their mutual consent by a written agreement to that effect. Oral modifications shall not be deemed valid. 18. ASSIGNMENT/SUB-LEASE: There shall be no assignment or sub-lease of the Demised Premises without the written consent of the LANDLORD. 19. MISCELLANEOUS: (a) This Agreement shall be binding upon the heirs, successors, administrators,executors and assigns of the parties hereto; (b) This Agreement contains the complete agreement of the parties and there are no other agreements, whether oral or in writing,between the parties which have not been incorporated into and made a part hereof; (c) There are no broker's commission nor finder's fee due and owing as a result of this transaction and to the extent that any such obligations are due and owing, the party incurring them shall assume and hold the other harmless thereon; (d). The waiver of any breach of any of the terms and conditions or covenants of this Lease or the non-performance of any of such terms, conditions or covenants on any one particular occasion shall not be construed as a waiver of any succeeding breach of the same or another term, condition or covenant hereunder; (e) LANDLORD represents to TENANT that LANDLORD has no knowledge of the existence of hazardous materials including, but not limited to, asbestos, materials containing asbestos, chlorofluorocarbons, PCB's or materials containing PCB's (hereinafter "hazardous materials") located upon the premises at the inception of this Lease. TENANT shall not introduce any hazardous materials to the premises during its use and occupancy of the premises under the terms and 8 conditions of this Lease. TENANT shall assume and hold LANDLORD harmless against any obligation for the clean- up of any materials or matters TENANT brings onto the Demised Premises now or in the future including, without limitation, any and all reasonable attorney's fees, court costs, reasonable litigation expenses and expert witness fees in connection therewith; (f) Neither party may record this Lease without the written consent of the other. However, either party may record a Memorandum that this Lease is in existence which notes the legal description of the leased premises and states that the other party claims rights in said premises pursuant to said Lease. (g) Each party executing this Lease on behalf of any corporation represents and warrants that the corporation has duly adopted a Resolution authorizing this Lease to be entered into and will furnish a certified copy of said Resolution upon the request of either party. 20. NOTICES: The giving of any notice required by this Lease shall be as follows: To Landlord: City of Canton 2 North Main Street Canton, Illinois 61520 Attention: Mayor Kent McDowell w/copy to Curtis Lane P.O. Box 478 Canton, Illinois 61520 To Tenant: Hitchcock Scrap Yard, Inc. 22501 IL-78 Canton, IL 61520 w/copy to Ron Weber 167 West Elm Canton, Illinois 61520 21. APPLICABLE LAW: This Lease shall be governed by and construed in accordance with the laws of the State of Illinois. If any provision of this Lease or the application thereof to the LANDLORD, TENANT or any person or circumstance shall be deemed invalid or 9 21. APPLICABLE LAW: This Lease shall be governed by and construed in accordance with the laws of the State of Illinois. If any provision of this Lease or the application thereof to the LANDLORD, TENANT or any person or circumstance shall be deemed invalid or unenforceable, the remainder of this Lease shall not be affected thereby and each provision of this Lease shall remain valid and enforceable as to the parties to the fullest extent allowed by law. Any judicial action to enforce the terms of this Lease or arising directly or indirectly out of this Lease shall be heard in the Circuit Court of the Ninth Judicial Circuit, Fulton County, Illinois. The parties agree that this Lease has been made in the City of Canton, County of Fulton and State of Illinois. WITNESS the hands and seals of the parties hereto on the day and year first above written. TENANT: LANDLORD: Hitchcock Scrap Yard, Inc., anA Illiiinnnois corporation, City of Canton N 1p �, �_ �(pp(V�� BY: vk� 1�"Legis J`r BY:� " 1 V V)"" `"'� ice-President Mayor 10 EXHIBIT A A one hundred (100) foot wide strip of even width off the south side the existing parcel bounded by South Fourth Avenue on the east side,the Toledo,Peoria&Western Railroad Corp on the south side, a twenty (20) foot wide alley on the west side, and East Maple Street on the north side, said one hundred (100) foot wide strip being further described as follows: A part of the Northeast Quarter of Section 34, Township 7 North, Range 4 East of the Fourth Principal Meridian, Fulton County, Illinois, further described as follows: Being a part of a 28.892 acre tract shown on a Plat of Survey recorded as Document No. 0927160, Slide 425, Fulton County Recorder's Office, said tract being in part of the Southeast Quarter of Section 27 and part of the Northeast Quarter of Section 34 all in Township 7 North, Range 4 East of the Fourth Principal Meridian, Fulton County, Illinois: Beginning at the southeast corner of said 28.892 acre tract, said corner also being the intersection of the west right of way line of South Fourth Avenue and the north right of way line of the Toledo, Peoria& Western Railway Corp., thence South 89°-38'-22" West(bearings based on said Plat of Survey) along the south line of said 28.892 acre tract, said south line also being said north right of way line, 512.10 feet to the west line of said 28.892 acre tract;thence North 0°-32'-28" East along said west line 100.01 feet to a line parallel with and 100.00 feet perpendicular north of said south line; thence North 89°-38'-22" East along said parallel line 512.48 feet to the east line of said 28.892 acre tract,-said east line also being said west right of way line of South Fourth Avenue; thence South 00°-45'-23" West along said line 100.02 feet to the Point of Beginning. Said Parcel contains 1.176 acres, more or less.