HomeMy WebLinkAbout#4134 Approving and Authorizing the Execution of A Professional Services Agreement 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 16TH DAY OF
APRIL,2019 ADOPTED ORDINANCE NO.4134,A TRUE AND CORRECT COPY OF WHICH
IS CONTAINED IN THIS PAMPHLET.
GIVEN UNDER MY HAND AND SEAL THIS -/�DAY OF APRIL, 2019.
(SEAL)
DIA AVLEY-ROCK
CITY CLERK
CITY OF CANTON, ILLINOIS
ORDINANCE NO. 4134
AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A
PROFESSIONAL SERVICES AGREEMENT
for the
FIRST AMENDMENT TO
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
PASSED BY THE CITY COUNCIL.
OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS,
ON THE 16p1 DAY OF APRII.,2019.
PUBLISHED IN PAAIPI ILET FORM BY AUTHORITY OFT HE CITY
COUNCIL OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS,
THIS 16'"DAY OF APRIL, 2019
EFFECTIVE: APRIL 16, 2019
ORDINANCE NO. 4134
CITY OF CANTON, ILLINOIS
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF A PROFESSIONAL SERVICES AGREEMENT
for the
FIRST AMENDMENT TO
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
PREAMBLE
WHEREAS,on April 5,2017,recognizing the need to foster the development,expansion and
revitalization of certain properties which arc vacant,undemtilized or undeveloped,the City adopted Tax
Increment Financing under the Act, approved a Redevelopment Plan (the "Plan) and designated a
Redevelopment Area known as Canton Tax Increment Financing District No. 3 (the"TIF District");
and
WHEREAS,the City wishes to amend the TIF District Plan,Projects and the Redevelopment
Project Area to add additional parcels of property and redevelopment project costs.
NOW THEREFORE BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF
THE CITY OF CANTON THAT:
1. The City of Canton, Fulton Couny, Illinois (the "City'), wishes to amend an existing Tax
Increment Financing District located in Canton, Illinois pursuant to the Tax Increment
Allocation Redevelopment Act,65 ILLS 5/11"4.41 et. seg. (the "Act').
2. The City wishes to engage the professional services of Jacob & Klein, Ltd. to render
administrative services and legal advice and The Economic Development Group,Ltd.to render
technical advice to assist the City with completing the FIRST AMENDMENT TO
CANTON TAX INCREMENT FINANCING(TIF)DISTRICT NO.3 pursuant to the
Act.
3. The Professional Services Agreement with Jacob & Klein, Ltd. and The Economic
Development Group, Lrd. (ExhibitA attached) is hereby approved.
Pgry 2 J 4
4. 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.
5. The Professional Services Agreement shall be effective on the date of its approval by the City.
6. This Ordinance shall be in full force and effect from and after its passage and approval as
required by law.
PASSED, APPROVED AND ADOPTED by the Corporate Authorities of the City of Canton,
Fulton County,Illinois this 16"'dao of April,2019 and filed in the office of the Cite Clerk of said City
on that date.
CORPORATE AUTHORITIES AYES NAYS ABSTAIN ABSENT
Ryan Mayhew,Aid.Ward 1 K
An pe Lin enfelter,Ald.Ward 1 Y
Craig West, Ald.Ward 2 X
Tad Putrich,Aid.WC cd 2 x
uin Maehew.Ald.Ward 3 %
usrin Nelson,Ald.Ward 3 Y
John Lovell Ald.Ward 4
An la Hale,Aid Wud 4 h
Kent A. 'McDowell Mayor
TOTALS: 7 0 1 0
APPROVED:
Mayor Dare
ATTES
c,,,—
City Clerk Date
EXHIBIT A ATTACHED: Profcssnnal Sereiees,Agrecmenr
Pge3of4
EXHIBIT A
PROFESSIONAL SERVICES AGREEMENT
for the
FIRST AMENDMENT TO
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
Pgee 4 of 4
PROFESSIONAL SERVICES AGREEMENT
for the
FIRST AMENDMENT TO THE
CANTON TIF DISTRICT 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 16th day of April,2019,by and between the CITY
OF CANTON, FULTON COUNTY, ILLINOIS ("CITY'); JACOB & KLEIN, LTD.,
Bloomington, Illinois ("J&10); and THE ECONOMIC DEVELOPMENT GROUP, LTD.,
Bloomington, Illinois ("EDG").
WHEREAS, the City wishes to amend the existing CANTON TAX INCREMENT
FINANCING (TIF) DISTRICT 3 (the `TIT District') which was established by Ordinance No.
4065,Ordinance No. 4066 and Ordinance No.4067 on the 5i' day of April,2017 pursuant to the Tax
Increment Allocation Redevelopment Act(the"Act"), 65 ILCS 5/11-74.4-1 et reg.; 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 amending the TIP District ("First
Amendment') to expand the redevelopment project area, as well as to add redevelopment projects
and estimated redevelopment costs to the Canton TIF District 3 Redevelopment Plan.
NOW,THEREFORE,the Parties agree as follows:
1. City to Engage J&K and EDG. The Cite 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 First Amendment to the
TIP District Redevelopment Plan, Notices and Documentation (including those reports
prepared by other professionals) necessary to complete the First Amendment to the TIF
District Redevelopment Project Area, Plan and Projects as required pursuant to State Statutes
and as outlined below in.Section 2, Scope of Pr fersional Setvher.
a. 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 Developer
and EDG. EDG is a separate corporate entity-owned in whole or in part by Herbert
J. Klein. i lcrbert J.Klein is also the principal owner of Jacob & Klein, Ltd. O&K).
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b. The Ciq' is entering into this Agreement voluntarily with informed consent after the
opportunity to consult with independent counsel as to the ownership of both entities
by Herbert J. Klein.
c. J&K may,in addition, be retained by the City as its special attorney to perform other
professional services outside the Supe of Services set forth herein, including
representation of the City before State agencies or the Illinois Legislature. Such
representation shall be at the Attomev's then current hourly tate for similar services
or as otherwise agreed. Any such representation shall be pursuant to a written
agreement between the Parties.
i. Legal services provided by J&K with regard to financing, including the
issuance of bonds involving the TIF District, if any, will be billed separately
from this Agreement and subject to the terms of any agreements related to
such financing or bonds.
ii. This Agreement does not include representation in any Court case resulting
from the establishment or Amendment of the TIF District Redevelopment
Plan,Area or Projects or the Annual Administration of the TIF District.
d. 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.
e. The Parties agree that pursuant to Section 5111-74.4-3(q)(1)of the Act,all Professional
Fees and related Costs incurred by the City for Amending the TIF District are TIF
eligible project costs and are fullv reimbursable to the Cit} from the real estate tax
increment generated by the TIP District.
f The City hereby acknowledges that J&K and FDG are not responsible for motoring
and documenting matters relating to compliance with the Illinois Prevailing Wage Act,
the Illinois Procurement Code, and am- other wage and/or employment laws, to the
extent such are applicable to any public or private project undertaken within the TIF
District Redevelopment Project Area or the Area as may be amended in the future.
II. Scope of Professional Services.
a. Amendment of the TIF District.
i. Services. J&K and FDG will provide services as outlined in Exhibit I to
.Amend the TIF District.
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ii. Term. This Professional Services Agreement for the First Amendment to the
TIF District shall commence immediatel} and shall continue until the
presentation of the First Amendment to the TIF District Redevelopment Plan
and appropriate ordinances to the City Board for the Amendment of the
District. It is anticipated that the TIP District will be amended on or before
September 30,2019,barring unexpected complications.
iii. Payment of Fees and Reimbursable Costs. The total Professional Fees to
be paid to J&K and EDG for the First Amendment of the TIF District are
Fifteen Thousand and 00/100 Dollars ($15,000.00) plus all Reimbursable
Costs incurred for the First Amendment of the TIF District,and are to be paid
by the City as follows:
1. J&K and hDG shall be paid a total sum of Five Thousand and
00/100 Dollars ($5,000.00) upon execution of this Agreement; and
2. J&K and EDG shall be paid an additional total sum of Five
Thousand and 00/100 Dollars ($5,000.00)and Costs incurred up to
the dace of deliven of the First Amendment to the TIF
Redevelopment Plan to the(:try;and
3. The balance of the Fee, Five Thousand and 00/100 Do0ars
($5,000.00), and remaining Costs for the Amendment of the TIF
District shall be paid when the First Amendment to the TIF
Redevelopment Plan and final Ordinances are presented to the City
Board for passage; and
4. All Reimbursable Costs incurred by J&K and EDG as part of the
Amendment of the TIP District shall be reimbursed to J&K and EDG
by the City, including all reasonable travel and subsistence expenses
while away from Bloomington or Peru, Illinois, all photocopying,
report binding,mailings, postage,and staff costs.
iv. For purposes of this Agreement, staff costs do not include the time of
Attorneys Thomas N.Jacob, Herb Klein,or Nic Selsou Q&K),or the time of
Steven Kline (EDG) while performing said Professional Services described in
Exhibit I subject to the following conditions:
1. All navel will be reimbursed for mileage at the maximum rate
permitted by Internal Revenue Service Rules and Regulations at the
time of service.
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2. All other costs which are incidental to the Amendment of the TIF
District, including staff costs, photocopying and report binding,
mailings,postage,and telecommunication charges,shall be reimbursed
at the current rates then charged by J&K and EDG.
v. The Cinunderstands and acknowledges that J&K and LDG will rely on the
work of other professionals, including the City's Engineers and Attorney, to
prepare reports and documentation needed for the Amendment to the TIF
District Redevelopment Plan, Projects and Reports and other necessary
documents; and that J&K and F.DG shall rely on their professional expertise
to prepare the Amendment to the TIF District Redevelopment Plan and
present material and information necessary to the Amendment of the TIF
District. The City further understands that it may directly incur additional fees
and costs for the Amendment of the TIF District which result from the
involvement of other (i.e.,non-J&K/CDG) professionals.
III. Annual Administration. The Annual Administrative Fees and Costs for the TIP District as
Amended by the First Amendment shall continue as set forth in the Professional Services
approved on December 6, 2016 by Ordinance No. 4051 between the Cin-and Jacob& Klein,
Ltd. and The Economic Development Group, Ltd.
IV. Amendments to this Agreement. The Parties hereto may amend this Agreement at any
time by their mumal consent which amendment must be in writing and executed by the Parties.
V. Entire Agreement. The Terms and conditions set forth in this Agreement super-cede all
prior oral and written understanding and constitute the entire Agreement between the Parties
with respect to the subject matter hereof.
VI. Binding Upon Successors in Interest. This Agreement shall be binding upon all the Parties
hereto and their respective heirs, successors, ad ministramrs, assigns, or other successors in
interest.
VII. Notices. Notices or demands hereunder shall be in writing and shall be served(a)by personal
delivery, or (b) terrified mail,return receipt requested to:
The City of Canton Jacob & Klein,Ltd. and
% Canton Cin•Clerk The Economic Development Group,Ltd.
2 Main Street 1701 Clearwater Avenue
Canton,IL 61520 Bloomington, Illinois 61704
Ph: (309) 647-0065 Ph: (309) 664-7777
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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.
VIII. Severability. If any provision of this Agreement is held to be invalid, the remainder of this
Agreement shall not be affected thereby.
IX. Choice of Law/Venue. This Agreement shall be governed by and construed in accordance
with the laws of the State of Illinois with venue lying in the Circuit Court of 1Nld.ean County,
Illinois.
IN WITNESS WHEREOF, the City of Canton,J&K and EDG have executed this
Professional Services Agreement on the day and wear above written.
CITY OF CANTON, an Illinois Municipal JACOB & KLEIN,LTD., an Illinois
Corporation: Professional Corporation:
By: C.J 13 :
Mavor President
Attested
by:
THE ECONOMIC DEVELOPMENT
City Clerk GROUP,LTD.,an Illinois Corporation:
By:
President
ATTACHMENTS:
FXHIBIT1. J&F/EAG seopeoi SereiccsturFirst An,endmmiiv to Canton TIF District 3.
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EXHIBIT 1
J&K/EDG SCOPE OF SERVICES
FOR FIRST AMENDMENT TO CANTON TIF DISTRICT 3
The list of services to be provided to the City by J&K and FAG which relate to the First Amendment
of Canton TIF District 3,is set forth as follows:
1. Create an estimated TIF District Amendment Time line.
2. Work with local elected officials, City staff and engineers to define the Amended
Redevelopment Project Arca (TIF District Boundary).
3. Evaluate the statutory and financial feasibilinv of amending the TIF District.
4. Consult on any necessary Annexation Agreement(s) with the City and Citv Attorney.
5. Create an Amendment to the TIF District Redevelopment Plan. EDG will collect a variety
of information from the City and,with J&K,draft the Amendment to 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 amend the TIF District.
6. Organize and conduct a Public Meeting, if applicable, the first meeting of the Joint Review
Board and a Public Hearing.
7. Analyze the potential impact on taxing districts and prepare any necessary Intergovernmental
Agreements,if required.
8. Assist the City to negotiate Predevelopment and/or Redevelopment Agreements with
potential Developers.
9. Prepare and send all Notices to taxing bodies, taxpayers, residents, residences within 750 feet
of amended TIF District, and Interested Parties.
10. Prepare and arrange for the Cio,Clerk all publications required of the City.
11. Draft and present to the City all required Ordinances to amend the TIF District.
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