HomeMy WebLinkAbout#4174 TIF Redevelpment 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 5TH DAY OF
NOVEMBER, 2019 ADOPTED ORDINANCE NO. 4174, A TRUE AND CORRECT COPY OF
WHICH IS CONTAINED IN THIS PAMPHLET.
GIVEN UNDER MY HAND AND SEAL THIS DAY OF NOVEMBER, 2019.
(SEAL)
DIANA PAVLEY-ROCK
CITY CLERK
CITY OF CANTON, ILLINOIS
ORDINANCE NO. 4174
AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A
TIF REDEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF CANTON, FULTON COUNTY, ILLINOIS
AND
MIDAMERICA NATIONAL BANK
PASSED BY THE CITY COUNCIL
OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS,
ON THE 5TH DAY OF NOVEMBER, 2019
PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY
COUNCIL OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS,
THIS 5TH DAY OF NOVEMBER, 2019
EFFECTIVE: NOVEMBER 5, 2019
ORDINANCE NO. 4174
CITY OF CANTON
FULTON COUNTY, ILLINOIS
CANTON TAX INCREMENT FINANCING DISTRICT 3
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF A REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON
and
MIDAMERICA NATIONAL BANK
APPROVED BY THE MAYOR AND'CITY COUNCIL
OF THE CITY OF CANTON,FULTON COUNTY, ILLINOIS
ON THE 5TH DAY OF NOVEMBER,2019.
CITY OF CANTON,ILLINOIS: ORDINANCE NO. 4174
CANTON TAX INCREMENT FINANCING (TIF) DISTRICT 3
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF A-REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON
and
MIDAMERICA NATIONAL BANK
BE IT ORDAINED BY THE CITY OF CANTON, FULTON COUNTY, ILLINOIS
THAT:
1. The Redevelopment Agreement by and between the City of Canton, Fulton County, Illinois
(the "City") and MidAmerica National Bank (the"Developer'D attached hereto as ExhibitA
is hereby approved.
2. The Mayor is hereby authorized and directed to enter into and execute on behalf of the City
said Redevelopment Agreement with the Developer and the City Clerk of the City of Canton
is hereby authorized and directed to attest such execution.
3. The Redevelopment Agreement shall be effective the date of its approval on the 5`' day of
November,2019.
4. This Ordinance shall be in full force and effect from and after its passage and approval as
required by law.
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2
PASSED,APPROVED AND ADOPTED by the Corporate Authorities of the City of
Canton,Illinois on the 5`'day of November,A.D.,2019, and deposited and filed in the Office of the
City Clerk of said City on that date.
MAYOR& CITY COUNCIL AYE VOTE NAY VOTE ABSTAIN/ABSENT
Angela Lingenfelter X
Ryan Mahew X
Angela Hale X
Justin Nelson X
Craig West X ABSENT
John Lovell X ABSENT
Quin Mahew X
Jeffrey Fritz X
Kent McDowell,Mayor
TOTAL VOTES: 6 0 2
APPROVED: Date:
Ma or
ATTEST: Date:
City Clerk
Exhibit (A)Attached: Redevelopment Agreement by and between the City of Canton, Fulton
County,Illinois and MidAmerica National Bank
3
TAX INCREMENT FINANCING DISTRICT
REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON, FULTON COUNTY, ILLINOIS
CANTON TAX INCREMENT FINANCING (TIF) DISTRICT 3
and
MIDAMERICA NATIONAL BANK
NOVEMBER 5,2019
REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON, FULTON COUNY, ILLINOIS
CANTON TAX INCREMENT FINANCING (TIF) DISTRICT 3
and
MIDAMERICA NATIONAL BANK
THIS REDEVELOPMENT AGREEMENT (including Exbibits) is entered into this 5"'
day of November,2019,by and between the City of Canton,Fulton County,Illinois (the "City"), an
Illinois Municipal Corporation,and MidAmerica National Bank,a National Banking Association (the
"Developer").
PREAMBLE
WHEREAS, the City has the authority to promote the health, safety and welfare of the City
and its citizens, and to prevent the spread of blight and deterioration and inadequate public facilities,
including sanitary sewer,by promoting the development of private investment in the marketability of
property thereby increasing the tax base of the City and providing employment for its citizens;and
WHEREAS, Pursuant to 65 ILCS 5/8-1-2.5, a municipality may appropriate and expend
funds for economic development purposes,including without limitation for commercial enterprises
that are deemed necessary or desirable for the promotion of economic development within the
community;and
WHEREAS, pursuant to the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-
74.4 et. seq., as amended (the "Act"), the City has the authority to provide incentives to owners or
prospective owners of real property to redevelop, rehabilitate and/or upgrade such property by
reimbursing the owner for certain redevelopment project costs from resulting increases in real estate
tax revenues ("real estate tax increment") or from other City revenues;and
WHEREAS, on April 5, 2017, recognizing the need to foster the development, expansion
and revitalization of certain properties which are vacant, underutilized or undeveloped, the City
adopted Tax Increment Financing under the Act, approved a Redevelopment Plan and designated a
Redevelopment Area known as the Canton TIF District 3 (hereinafter referred to as the "TIF
District");and
WHEREAS, on April 2,2019, the City approved Inducement Resolution No. 5184 attached
hereto as Exhibit 1 to induce the Developer to proceed with a redevelopment project consisting of,
but not limited to,replacing and constructing a new commercial headquarters and banking facility(the
"Project") at 100 W. Elm Street, Canton,Illinois (Fulton County PIN 09-08-27-413-027;PIN 09-08-
27-413-015; and PIN 09-08-27-413-024, collectively the "Property") within the proposed Area to be
amended to the TIF District;and
WHEREAS, per Inducement Resolution No. 5184, the City agreed to make a good faith
effort to amend the TIF District to include the Developer's Property and Project;and
Canton TIF District 3 /MidAmerica National Bank Redevelopment Agreement Page 2
WHEREAS,on April 16,2019,the Parties entered into a financing agreement(the"Financing
Agreement"attached hereto as ESbibit4 wherein the Developer agreed to provide funds to the City
to assist the City in preparing the First Amendment to the TIF District;and
WHEREAS, on August 20, 2019, the City approved the First Amendment (the "First
Amendment") to the TIF District to amend the redevelopment project area by including additional
Property,including the Developer's Property and Project;and
WHEREAS, the Developer is proceeding with the Project and is doing so based on the
availability of TIF incentives offered by the City; and
WHEREAS, it is the intent of the City to encourage economic development which will
increase the real estate tax revenue of the City,which increased incremental taxes will be used,in part,
to finance incentives to assist redevelopment within the TIF District and other contiguous
redevelopment project areas;and
WHEREAS, the Developer's proposed Project is consistent with the TIF District
Redevelopment Plan and Projects for the Redevelopment Project Area as amended and further
conforms to the land uses of the City as adopted;and
WHEREAS,pursuant to Section 5/11-74.4-4(b)of the Act,the City may make and enter into
all contracts with property owners, developers, tenants, overlapping taxing bodies, and others
necessary or incidental to the implementation and furtherance of the Redevelopment Plan;and
WHEREAS, pursuant to Section 5/11-74.4-40) of the Act, the City may incur project
redevelopment costs and reimburse developers who incur redevelopment project costs (hereinafter
referred to as "TIF Eligible Project Costs" or "redevelopment project costs") authorized by a
redevelopment agreement and further defined in Section 5/11-74.4-3(q) of the Act, including those
Estimated TIF Eligible Project Costs as herein listed in the attached Ekhibit3 of this Redevelopment
Agreement;and
WHEREAS, the Developer requested that incentives for the development be provided by
the City from incremental increases in real estate taxes of the City generated from its Project and the
City agreed to such incentives;and
WHEREAS,the City has determined that this Project required the incentives requested as set
forth herein and that said Project will,as a part of the Redevelopment Plan as amended,promote the
health,safety and welfare of the City and its citizens by attracting private investment to prevent blight
and deterioration and to generally enhance the economy of the City;and
WHEREAS, the City has reviewed the conditions of the Property and has reason to believe
that the costs of the necessary public and private improvements to be incurred by the Developer in
furtherance of the Project are eligible project costs under the Act and are consistent with the
Redevelopment Plan as amended of the City;and
WHEREAS, the Parties are in agreement that the City shall reimburse the Developer for its
redevelopment project costs incurred for the Project and as set forth in EShibit3 attached hereto up
Canton TIF District 3 /MidAmerica National Bank Redevelopment Agreement Page 3
to an amount not to exceed Two Million and 00/100 Dollars ($2,000,000.00)pursuant to the terms
set forth below; and
WHEREAS, in consideration of the execution of this Agreement, the Developer is
completing the Project as set forth in Exhibit3; and
WHEREAS, the City is entering into this Agreement having encouraged and induced the
Developer to proceed with the Project located on said Property.
AGREEMENTS
NOW THEREFORE,the Parties,for good and valuable consideration,the receipt of which
is acknowledged,agree as follows:
A. PRELIMINARY STATEMENTS
1. The Parties agree that the matters set forth in the recitals above are true and correct and form
a part of this Agreement.
2. Any terms which are not defined in this Agreement shall have the same meaning as they do in
the Act,unless indicated to the contrary.
3. The Developer shall remain in compliance with all municipal ordinances relating to property
development,property condition,zoning,subdivision and building codes. Failure to cure the
violation of any such ordinance within thirty (30) days upon being provided written notice of,
the same by the City shall be cause for the City to declare the Developer in Default and
unilaterally terminate this Agreement,except where such failure is not reasonably susceptible
to cure within such 30-day period,in which case the Developer shall have such additional time
to cure as is reasonably necessary, provided that the Developer has commenced such cure
within such 30-day period and continues to diligently prosecute the same to completion.
4. The Developer shall complete the Project and occupy the new facility on or before July 31,
2021, subject to extension due to Force Majeure (defined below in Section M). The Project
shall be deemed complete when a certification of occupancy for the bank building located on
the Property has been issued by the City and is occupied by the Developer.
5. Each of the Parties represents that it has taken all actions necessary to authorize its
representatives to execute this Agreement.
B. ADOPTION OF TAX INCREMENT FINANCING
The City has created a Tax Increment Financing District known as the "Canton TIF District
3" which includes the Developer's Property. The City has approved certain Redevelopment Project
Costs,including the types described in Exhibit-3 for the Developer's Project which shall be hereafter
known as the"MidAmerica National Bank Redevelopment Project."
Canton TIF District 3 /MidAmerica National Bank Redevelopment Agreement Page 4
C. INCENTIVES
In consideration for the Developer purchasing Property and completing the Project as set forth
herein, the City agrees to extend to the Developer the following incentives to assist the Developer's
Project:
1. Pursuant to the Financing Agreement, all funds advanced to the City from the Developer
relating to the fees and costs of completing the First Amendment to the TIF District shall be
reimbursed to the Developer from the initial gross annual real estate tax increment generated
by the Developer's Project within the TIF District after the date of this Agreement,until all
funds advanced by the Developer are reimbursed or the TIF District ends,whichever occurs
first. The Parties have further agreed herein that the City shall then reimburse the Developer
Fifty Percent (50%) of the annual "net" incremental increase in real estate tax revenues
derived from the Developer's Project for reimbursement of the Developer's Estimated TIF
Eligible Project Costs as set forth in Exhibit 3 attached hereto. Such reimbursement shall
commence with tax year 2021 payable 2022 real estate tax increment generated by the Project,
if any, and shall continue only for the current remaining life of the TIF District which is tax
year 2040 payable 2041, or upon the Developer's receipt of the maximum reimbursement
amount of Two Million Dollars and No Cents ($2,000,000.00) as set forth in Exhibit 3
attached hereto,whichever occurs first.These funds are to be allocated to and when collected
shall be paid to the City Treasurer for deposit in a separate account within the Special Tax
Allocation Fund for the Canton TIF District 3 designated as the MidAmerica National Bank
Special Account("Special Account").
2. "Net" real estate tax increment is defined as the annual ad valorem taxes,if any,arising from
the taxes levied upon the Property by any and all taxing districts having the power to tax real
property in the TIF District Redevelopment Project Area,which taxes are attributable to the
increase in the then current equalized assessed valuation of the Property over and above the
total initial equalized assessed value of the Property all as determined by the County Clerk in
accordance with Section 11-74.4-9 and after payments of reimbursements owed to the
Developer pursuant to the Financing Agreement, the proportionate amount of TIF District
administrative fees and costs incurred by the City,and the proportionate amount of payments
pursuant to TIF District Intergovernmental Agreements, if any. The Developer's
proportionate amount is calculated by dividing the increment generated by the Developer's
Project by the total TIF District increment.
D. LIMITATION OF INCENTIVES TO DEVELOPER
1. The Developer shall be reimbursed by the City for all Eligible Project Costs permitted by the
Act, subject to first being reimbursed pursuant to the terms of the Financing Agreement and
then a cumulative reimbursement limitation of$2,000,000.00 for verified TIF Eligible Project
Costs incurred for the Project) from the real estate tax increment generated by this Project
located on the Property and deposited into the Special Account, but only for the term of the
Agreement and only from the Property included in this Project and currently owned by the
Developer at that location. The parties may add additional phases and eligible project in excess
of the amount authorized by this Agreement upon mutual agreement as provided below in
Section W.
Canton TIF District 3 /MidAmerica National Bank Redevelopment Agreement Page 5
2. It is not contemplated nor is the City obligated to use any of its proportionate share of the
monies for any of the Developer's Eligible Project Costs but,rather,the City shall use its sums
for any purpose under the Act as it may in its sole discretion determine.
3. The Developer agrees to substantially complete the project, subject to Force Majeure, as
defined below in Section M.
E. PAYMENT OF ELIGIBLE PROJECT COSTS
1. Payment to the Developer for TIF Eligible Project Costs as set forth by the Act,shall be made
by a requisition for payment of private redevelopment costs ("Requisition for
Reimbursement" attached hereto as Exhibit 4, hereinafter referred to as "Requisition")
submitted from time to time by the Developer to the City's TIF Administrator Jacob&Klein,
Ltd., with copy to The Economic Development Group, Ltd. (collectively, the
"Administrator"),and shall be subject to the Administrator's approval of the costs and to the
availability of funds in the Special Account.
2. All Requisitions must be accompanied by verified bills, statements, or invoices of suppliers,
contractors or professionals together with mechanic's lien waivers (whether partial or full),
cancelled checks, statements or invoices marked paid from each of the parties entitled to a
payment, or other proofs of payment for such bills, statements, or invoices for costs that are
the subject of such Requisition.
3. For the Developer to receive reimbursement of Eligible Project Costs for costs it has
incurred in any year as set forth in Paragraphs 1 and 2 above, the Developer must
submit such proposed eligible costs to the City by March 1 of the following calendar
year. If there are no accumulated outstanding costs previously submitted and approved by
the City and if the Developer does not submit such proposed eligible costs by this deadline,
the Developer will forfeit reimbursement of such costs from the prior year's real estate tax
increment to be paid in the current year. Any approved eligible costs submitted after this
deadline will be eligible for reimbursement from the next year's real estate tax increment
receipts.
4. Any real estate increment not required to be paid to the Developer under the terms of
Paragraph 3 above shall be available to the City for any purpose set forth in the TIF Plan and
allowed by the Act.
5. The Administrator shall approve or disapprove a Requisition by written receipt to the
Developer within thirty (30) business days after receipt of the Requisition. Approval of the
Requisition will not be unreasonably withheld. If a Requisition is disapproved by the
Administrator,the reasons for disallowance will be set forth in writing and the Developer may
resubmit the Requisition with such additional information as may be required and the same
procedures set forth herein shall apply to such re-submittals.
6. All TIF Eligible Project Costs which have been approved by the Administrator shall then be
paid by the City from the Special Account to the Developer, or to others as directed by the
Developer,pursuant to the Redevelopment Plan and as allowed by Illinois Law. The City shall
Canton TIF District 3 /MidAmerica National Bank Redevelopment Agreement Page 6
pay such approved eligible Costs annually, provided the Developer has satisfied the terms of
this Agreement and costs which exceed the amount available to pay the Developer shall carry
forward, until paid,without further action of the Developer. Payment shall be made within
forty-five (45) days after approval subject to the terms if this Agreement and after receipt of
the increment generated by the Developer's Redevelopment Project from the County.
7. The Parties acknowledge that the determination of TIF Eligible Project Costs,and,therefore,
qualification for reimbursement hereunder are subject to changes or interpretation made by
amendments to the Act, administrative rules or judicial interpretation during the term of this
Agreement.The City has no obligation to the Developer to attempt to modify those decisions
but will assist the Developer in every respect as to obtaining approval of Eligible Project Costs.
8. The Developer may submit for prior approval by the City as TIF Eligible Project Costs under
the Act estimates of costs before they are incurred subject to later confirmation by actual bills.
F. VERIFICATION OF TAX INCREMENT
1. It shall be the sole responsibility of the Developer or its designee to provide to the City, as
requested in writing, copies of all PAID real estate tax bills,annually, for the Property.
2. The failure of Developer to provide any information required herein after written notice from
the City, and the continued failure to provide such information within (30) days after such
notice, shall be considered a breach of this Agreement and shall be cause for the City to deny
payments hereunder to the Developer,which payments are conditional upon receipt of the
foregoing information.
G. REIMBURSEMENT OF THE DEVELOPER'S SHARE
OF TAX OBJECTION REFUNDS
If a refund of tax increment (including any accrued statutory interest thereon) is potentially
due from the City's TIF Fund as the result of any tax objection,assessment challenge or formal appeal
to the Illinois Property Tax Appeal Board (PTAB), issuance of a certificate of error or other such
action, including any appeals therefrom, concerning the potential reduction of assessed value of the
Property,the City may at its sole discretion withhold the Developer's share of any such possible refund
(including any accrued statutory interest thereon) from future reimbursements calculated to be paid
to the Developer under this Agreement. Furthermore, the Developer is hereby obligated to provide
written notice to the City within five (5) days of filing any such objection, assessment challenge or
formal appeal to the PTAB or other such action, including any appeals therefrom, that could
potentially reduce the assessed value of the Property. Failure to provide such notice shall be
considered a breach of this Agreement and shall be cause for the City to deny payments hereunder to
the Developer.
Any funds withheld by the City under this Section G shall be deposited by it into a separate
interest-bearing bank account. Upon final determination of the assessed value of the Property, the
City shall pay to the Developer the principal amount due under this Agreement as recalculated. The
City shall be entitled to retain any interest earned on the account as partial payment for the
administration of the account due to the delay of the determination of the final evaluation and
recalculation of the benefits due the Developer under this Agreement.
Canton TIF District 3 /MidAmerica National Bank Redevelopment Agreement Page 7
If it appears to the City that it will be unable to recover the Developer's share of any such
refund (including any accrued statutory interest thereon) from the remaining future reimbursements
due the Developer under this Agreement, the Developer shall reimburse the City for the Developer's
remaining unpaid share of such refund within thirty (30) days upon receiving written demand of the
same from the City.
Notwithstanding anything contained in this Agreement to the contrary, the obligations
contained in this Section G shall remain in effect for the remaining life of the TIF District,whether the
TIF District expires upon the current expiration of the Redevelopment Plan and Projects adopted by
the City(tax year 2040 payable 2041);at an earlier time if the City passes an ordinance terminating the
TIF District;or at a later time if the TIF District is legislatively extended. Furthermore,the obligations
set forth in this Section G shall survive the expiration of the TIF District if a tax objection or other
such action taken by the Developer is pending prior to the expiration of the TIF District and shall
continue until final disposition of such action.
H. LIMITED OBLIGATION
The City's obligation hereunder to pay the Developer for Eligible Project Costs is a limited
obligation to be paid solely from the Special Account. Said obligation does not now and shall never
constitute an indebtedness of the City within the meaning of any State of Illinois constitutional or
statutory provision and shall not constitute or give rise to a pecuniary liability of the City or a charge
or lien against any City fund or require the City to utilize its taxing authority to fulfill the terms of this
Agreement.
I. CITY PUBLIC PROJECTS
The City intends to use part or all of its share of the Project's real estate increment for other
public projects within the TIF District or within contiguous TIF Districts as allowed by law. The City
shall be eligible for reimbursement of the cost of doing so, as well as other eligible costs incurred by
the City in the TIF District.
J. LIMITED LIABILITY OF CITY TO OTHERS
FOR DEVELOPER'S EXPENSES
There shall be no obligation by the City to make any payments to any person other than the
Developer, nor shall the City be obligated to make direct payments to any other contractor,
subcontractor, mechanic or materialman providing services or materials to the Developer for the
Developer's Project.
K. COOPERATION OF THE PARTIES
1. The City and the Developer agree to cooperate fully with each other when requested to do so
concerning the development of the Developer's Redevelopment Project. This includes
without limitation the City assisting or sponsoring the Developer, or agreeing to jointly apply
with the Developer,for any grant,award,subsidy or additional funding which may be available
from other governmental sources as the result of the Developer's or City's activities. This also
includes without limitation the Developer assisting or sponsoring the City, or agreeing to
Canton TIF District 3 /MidAmerica National Bank Redevelopment Agreement Page 8
jointly apply with the City, for any grant,award,or subsidy which may be available as the result
of the City's or the Developer's activities.
2. The Parties agree to take such actions,including the execution and delivery of such documents,
instruments, petitions, and certifications (and, in the City's case, the adoption of such
ordinances and resolutions), as may be necessary or appropriate, from time to time, to carry
out the terms, provisions, and intent of this Agreement and to aid and assist each other in
carrying out said terms,provisions,and intent.
3. The Parties shall cooperate fully with each other in seeking from any or all appropriate
governmental bodies all approvals (whether federal, state, county or local) required or useful
for the construction or improvement of property and facilities in and on the Property or for
the provision of services to the Property, including, without limitation, wetland mitigation,
gas, telephone,and electric utility services, roads,highways,rights-of-way,water and sanitary
sewage facilities,and storm water disposal facilities.
L. DEFAULT; CURE; REMEDIES
In the event of a default under this Redevelopment Agreement by any party hereto (the
"Defaulting Party"), which default is not cured within the cure period provided for below, then the
other Party (the "Non-defaulting Party"),may have an action for damages, or,in the event damages
would not fairly compensate the Non-defaulting Parties for the Defaulting Party's breach of this
Redevelopment Agreement,the Non-defaulting Party shall have such other equity rights and remedies
as are available to them at law or in equity.Any damages payable by the City hereunder shall be limited
to the real estate tax increment payable to the Developer under the terms of this Agreement.
In the event a Defaulting Party shall fail to perform a monetary covenant which it is required
to perform under this Redevelopment Agreement,it shall not be deemed to be in default under this
Redevelopment Agreement unless it shall have failed to perform such monetary covenant within thirty
(30) days of its receipt of a notice from a Non-defaulting Party specifying that it has failed to perform
such monetary covenant.In the event a Defaulting Party fails to perform any nonmonetary covenant
as and when it is required to under this Redevelopment Agreement,it shall not be deemed to be in
default if it shall have cured such default within thirty (30) days of its receipt of a notice from a Non-
defaulting Party specifying the nature of the default, provided, however, with respect to those
nonmonetary defaults which are not capable of being cured within such thirty(30) day period,it shall
not be deemed to be in default if it commences curing within such thirty(30)day period,and thereafter
diligently and continuously prosecutes the cure of such default until the same has been cured.
M. TIME; FORCE MAJEURE
For this Agreement, time is of the essence. The Developer agrees to complete this Project on
or before July 31,2021. Failure to do so shall because for the City to declare the Developer in default
and unilaterally terminate this Agreement. However,the Developer and the City shall not be deemed
in default with respect to any obligations of this Agreement on its part to be performed if the
Developer or City fails to timely perform the same and such failure is due in whole, or in part,to any
strike, lock-out, labor trouble (whether legal or illegal), civil disorder, inability to procure materials,
weather conditions wet soil conditions,failure or interruptions of power,restrictive governmental laws
Canton TIF District 3 /MidAmerica National Bank Redevelopment Agreement Page 9
and regulations, condemnation, riots,insurrections,war, fuel shortages, accidents, casualties,Acts of
God, acts caused directly or indirectly by the City (or the City's agents, employees or invitees) when
applicable to Developer or third parties, or any other cause beyond the reasonable control of
Developer or the City.
N.ASSIGNMENT
The rights (including,but not limited to, the right to payments contemplated by Section C of
this Agreement) and obligations (or either of them) of the Developer under this Agreement shall be
fully assignable by the Developer provided written notice is provided to the City and the City's consent
is obtained prior to such assignment. The City's consent shall not be unreasonably withheld provided
that the nature of the Project is not substantially changed, and further provided that the assignee is
financially capable of fulfilling the obligations of the assignor. Any such assignment shall be subject
to all the terms and conditions contained in this Agreement. Further, no such assignment shall be
deemed to release the assignor of its obligations to the City under this Agreement unless the consent
of the City to the release of the assignor's obligations is first obtained.
O. PREPAYMENTS
Should the annual incremental tax revenue generated by the Project be generated in a sufficient
amount to pay all cost eligible expenses prior to the expiration of the term of the Agreement,the City
may,in its sole discretion, elect to pay all then remaining payments in a single lump sum payment.
P. WAIVER
Any party to this Agreement may elect to waive any remedy it may enjoy hereunder,provided
that no such waiver shall be deemed to exist unless the party waiving such right of remedy does so in
writing. No such waiver shall obligate such party to waive any right of remedy hereunder or shall be
deemed to constitute a waiver of other rights and remedies provided said party pursuant to this
Agreement.
Q. SEVERABILITY
If any section, subsection, term or provision of this Agreement or the application thereof to
any party or circumstance shall, to any extent, be invalid or unenforceable, the remainder of said-
section, subsection, term or provision of this Agreement or the application of same to parties or
circumstances other than those to which it is held invalid or unenforceable, shall not be affected
thereby.
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Canton TIF District 3 /MidAmerica National Bank Redevelopment Agreement Page 10
R. NOTICES
All notices,demands,requests,consents,approvals or other instruments required or permitted
by this Agreement shall be in writing and shall be executed by the party or an officer,agent or attorney
of the party,and shall be deemed to have been effective as of the date of actual delivery,if delivered
personally,or as of the third (3rd) day from and including the date of posting,if mailed by registered
or certified mail,return receipt requested,with postage prepaid addressed as follows:
TO CITY: TO DEVELOPER:
City Clerk, City of Canton MidAmerica National Bank
2 N.Main Street c/o Rick Klinedinst,President/CEO
Canton,IL 61520 100 W. Elm Street
Telephone: (309) 647-0020 Canton,IL 61520
Fax: (309) 647-1310
With Copy to.
Jacob&Klein,Ltd.
The Economic Development Group,Ltd.
1701 Clearwater Avenue
Bloomington,IL 61704
Telephone: (309) 664-7777
Fax: (309) 664-7878
S. SUCCESSORS IN INTEREST
Subject to the provisions of Section N,above,this Agreement shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and assigns.
T. NO JOINT VENTURE,AGENCY, OR PARTNERSHIP CREATED
Neither anything in this Agreement nor any acts of the parties to this Agreement shall be
construed by the parties or any third person to create the relationship of a partnership,agency,or joint
venture between or among such parties.
U. INDEMNIFICATION OF CITY
The Parties acknowledge that the current position of the Illinois Department of Labor is that
the Illinois Prevailing Wage Act is not applicable to TIF incentives that are received by private
Developers as reimbursement for private TIF Eligible Project Costs.This position of the Department
of Labor,which is currently under review,is available online at:
https://www.iUinois.,aov/idol/FAQs/Pages/prevailing-wage-faq.asl2x. If the Prevailing Wage Act is
determined by a court of law, or agency with the authority to make such determination, to apply to
private TIF projects, the Developer shall indemnify and hold harmless the City,and all City elected or
appointed officials, officers, employees, agents,representatives, engineers, consultants and attorneys
(collectively, the Indemnified Parties), from any and all claims that may be asserted against the
Indemnified Parties or one or more of them, in connection with the applicability, determination,
and/or payments made under the Illinois Prevailing Wage Act(820 ILCS 130/0.01 et. seq.),the Illinois
Procurement Code,and/or any similar State or Federal law or regulation. In addition,the Developer
Canton TIF District 3 /MidAmerica National Bank Redevelopment Agreement Page 11
agrees to indemnify and hold harmless the City for any claim asserted against the City arising from the
Developer's Project and/or this Agreement or any challenge to the eligibility of project costs
reimbursed to the Developer hereunder. This obligation to indemnify and hold harmless obligates
Developer to defend any such claim and/or action,pay any liabilities and/or penalties imposed, and
pay all defense costs of City,including but not limited to the reasonable attorney fees of City.
Any project costs incurred by the Developer within a public right-of-way or for which the
improvements are intended to be dedicated to the City are subject to the Prevailing Wage Act.
V. ENTIRE AGREEMENT
The terms and conditions set forth in this Agreement and exhibits attached hereto supersede
all prior oral and written understandings and constitute the entire agreement between the City and the
Developer with respect to the subject matter hereof.
W. AMENDMENTS TO THIS 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.
X. TERM OF THE AGREEMENT
Notwithstanding anything contained herein to the contrary,this Agreement shall expire upon
the first to occur of the current expiration of the Canton TIF District 3, tax year 2040 payable 2041,
or upon the Developer receiving all incentives included herein. The Agreement shall expire sooner if
the Developer files for bankruptcy or otherwise becomes insolvent,the Property becomes the subject
of foreclosure proceedings,or upon default by the Developer of this Agreement.
Y. OTHER GENERAL PROVISIONS
1. Titles of Paragraphs: Titles of the several parts, paragraphs, sections or articles of this
Agreement are inserted for convenience of reference only and shall be disregarded in
construing or interpreting any provisions hereof.
2. Warranty of Signatories: The signatories of Developer warrant full authority to both execute
this Agreement and to bind the entity in which they are signing on behalf of.
3. Counterparts:This Agreement may be executed in counterparts,which when taken together
shall constitute a single signed original as though all Parties had executed the same page.
4. 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 Fulton County,
Illinois.
(Tbe remainder of this page is intentionally blank.)
Canton TIF District 3 /MidAmerica National Bank Redevelopment Agreement Page 12
THIS IS INTENDED TO BE A LEGAL DOCUMENT. AN ATTORNEY AT LAW
SHOULD BE CONSULTED PRIOR TO THE EXECUTION OF THIS DOCUMENT.
IN WITNESS WHEREOF the Parties hereto have caused this Agreement to be executed
by their duly authorized officers on the above date at Canton,Illinois.
CITY DEVELOPER
CANTON, ILLINOIS,An Illinois MIDAMERICA NATIONAL BANK, a
Municipal Corporation National Banking Association
BY: BY:
��O'UV v�w A ,
Mayor, City of Canton
Name. �d 1i -e )A��
ATTEST: I
Title.✓ -C-S
ty"Clerk, City of Canton
Canton TIF District 3 /MidAmerica National Bank Redevelopment Agreement Page 13
EXHIBIT 1.
Inducement Resolution No. 5184
J
Canton TIF District 3 /MidAmerica National Bank Redevelopment Agreement Page 14
RESOLUTION NO. 5184
CITY OF CANTON,ILLINOIS
PROPOSED
FIRST AMENDMENT
TAX INCREMENT FINANCING (TIF)DISTRICT NO.3
REDEVELOPMENT PROJECT
INDUCEMENT RESOLUTION
WHEREAS, the City of Canton, Fulton County, Illinois, (the "City"), has the authority to
promote the health, safety and welfare of the City and its citizens, and to prevent the spread of
blight and deterioration by promoting the development of private investment in property thereby
increasing the real estate tax base of the City and providing employment for its citizens;and
WHEREAS,pursuant to the Tax Increment Allocation Redevelopment Act,65 ILCS 5/11-
74.4 et seg., as amended (the "Act"), the City has the authority to provide incentives to owners or
prospective owners of real property to develop,redevelop,rehabilitate,market and/or upgrade such
property by reimbursing the owner for certain costs from resulting increases in real estate tax
revenues ("Tax Increment") or from other City revenues;and
WHEREAS, on April 5, 2017, recognizing the need to foster the development, expansion
and revitalization of certain properties which are vacant, underutilized 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 is considering proposals for commercial, light industrial and
residential redevelopment projects on properties that the City intends to include within a proposed
First Amendment to Canton Tax Increment Financing (TIF) District No. 3 Redevelopment Project
Area (the"Area");and
WHEREAS, it appears that such redevelopments cannot be developed without the
adoption of an Amended Tax Increment Financing District Redevelopment Plan,Area and Projects
for the TIF District pursuant to the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-
74-4 et.seg. (the"Act");and
WHEREAS, the City is authorized under the Act to make and enter into all contracts with
property owners, developers, tenants, overlapping taxing bodies, and others necessary or incidental
to the implementation and furtherance of its redevelopment plans and projects and to finance
redevelopment project costs provided such project costs are eligible under the Act;and
WHEREAS, MidAmerica National Bank, 100 W. Elm Street, Canton, Illinois, or its
assignee (the "Developer") is currently proposing to a redevelopment project consisting of,but not
limited to, replacing and constructing a new commercial headquarters and banking facility at 100 W.
Page 1 of 4
Elm Street, Canton, Illinois (the -Project's within the proposed Area to be amended to the TIF
District;and
WHEREAS, redevelopment of the property within the Area will entail expenditures of
substantial time, effort and money and that but for the assistance of tax increment financing, the
proposed Project is not deemed to be financially feasible as evidenced by the Developer's statement
attached hereto as Exhibit A;and
WHEREAS, this Resolution is intended to induce the Developer to commence the Project
and to seek reimbursement from incremental real estate tax revenue received by the City or from
other sources as may be agreed to between the City and the Developer which are necessary to
accomplish the goals of the Canton TIF District No. 3 Redevelopment Plan and Projects as may be
amended by the City for this Project;and
WHEREAS, the Board of Trustees has initiated an examination of the proposed Area as to
be amended and believes that expenditures of development costs in furtherance of the potential
Redevelopment Plan and Projects should be allowable project costs under the Redevelopment Plan,
provided that this Resolution is not a guarantee of the amount of project costs that will be
allowable,if any,but rather is an indication of the intent and sense of the City at this time.
NOW, THEREFORE, BE IT RESOLVED by the Mayor and City Council of the City
of Canton,Fulton County,Illinois,as follows:
1. That the intentions of the City of Canton regarding this Project as expressed in the
recitals herein are hereby approved; provided however, that neither such intentions,
affirmations, authorizations nor such recitals are binding upon the City nor may the
same be relied upon to any entity's or person's detriment by such entity or person
whether third person or otherwise in the event that the aforementioned agreements or
plans are not mutually attainable.
2. That the City Council of the City of Canton is in favor of the proposed Project.
3. The City shall proceed and use its best good faith efforts to amend the Canton Tax
Increment Financing District No. 3 Redevelopment Plan, Project and Area to include
the Developer's Property and Project. The City and the Developer shall-also use their
best efforts to enter into a Predevelopment Agreement on or before June 30, 2019, and
provided that such agreement is approved, those future TIF eligible project costs
incurred by the Developer from the date of this Resolution may be reimbursed to the
Developer from an appropriate Special Tax Allocation Fund and shall thereby constitute
an incurred obligation of the City of Canton pursuant to Sections 5/11-74.4-4 (b) and (j)
of the Act.
4. The provisions of this Resolution shall be effective commencing with its adoption as
provided by law.
Page 2 of 4
't
PASSED,.APPROVED AND ADOPTED by the Mayor and-Board of Trustees of the City of.
Canton,Peoria County,Illinois,on the 2'of April,2019,and deposited and filed in the Office of
the City Clerk of said City of Canton on that date.
s
CORPORATE.AUTHORITIES AYES NAYS ABSTAIN ABSENT
Ryan Mayhew,Ald.Ward 1 X
Angie Lingenfelter,Ald.Ward 1 X
Craig West.Ald.Ward 2 X
Tad Putrich,Ald.Ward 2 X
Quin Mayhew,Ald.Ward 3 X
Justin Nelson,Ald..Ward 3 X
John Lovell,Ald.Ward 4 X
Angela Hale,Aid,Ward 4 X
Kent A.McDowell,Mayor
TOTALS: 7 0 1 0
APPROVED: Date / �/ 2019
Mayor,City of Cq' n
A
ATTEST: Date: [ / Z-/ 2019 ;
Clerk, City of Canton
Attachment:
Exhibit A. Developer Statement
'1
H:\CMNT0N\CANT0N 3\Virgt A7nendmeot\Canton TIP 3 MANB Inducement Bcsolution_02 April 2019.doe
i
Page.3 of 4
EXHIBIT A
DEVELOPER STATEMENT
a
Page 4 of 4
1VI� merica National
Bancshares, Inco
March 27,2019
Mr. Kent McDowell,Mayor
City of Canton
2 North Main Street
Canton, IL 61520
Dear Mayor McDowell:
MidAmerica National Bank is.entering its eighty-sixth year In Canton,fifty at its current location.We have been
considering a project to either remodel the existing building or build a new building at the current location.
This location has been ideal for our customers and the community and our desire is to remain here as Canton's
longest.standing, locally owned community bank for many more years.
Replacing and expanding our current facility instead of renovating an old building is a significantly greater
investment than we had originally contemplated. The potential availability of some assistance by the City
through tax increment financing will help us mitigate the additional long-term risks we are otherwise unable to
fully justify at this time. Therefore, as we draw closer to our final decisions for our Project,we respectfully ask
that the City of Canton consider adding our site to a TIF redevelopment area and approve a non-binding
Inducement Resolution to affirm its support for MidAmerica National Bank to construct an entirely new
building.
Thank you for your consideration.
Sincerely,
/
Rick R, Klinedinst
President/CEO
11 ' • i • 1 • 1 /a111
EXHIBIT 2.
Financing Agreement
Canton TIF District 3 /MidAmerica National Bank Redevelopment Agreement Page 15
i
t
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,4135,A TRUE AND CORRECT COPY OF WHICH
IS CONTAINED IN THIS PAMPHLET.
GIVEN UNDER MY HAND AND SEAL THIS��Q DAY OF APRIL,2019. ,
(SEAL)
D ' A PAVLEY-1 J'LC
CITY CLERK
CITY OF CANTON, ILLINOIS
ORDINANCE NO. 4135
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF AN AGREEMENT
by and between
THE CITY OF'CANTON,FULTON COUNTY,ILLINOIS
and.
MIDAMERICA NATIONAL BANK,INC.
PASSED BY THE CITY COUNCIL
OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS,
ON THE 1617!DAY OF APRIL,2019.
PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY
COUNCIL OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS,
TFIIS 10 DAY OF APRIL,2019
EFFECTIVE: APRIL 16,2019
ORDINANCE NO.4135
CITY OF CANTON,ILLINOIS
AN ORDINANCE APPROVING AND AUTHORIZING #
THE EXECUTION OF AN AGREEMENT
by and between
THE CITY OF.CANTON,FULTON COUNTY,ILLINOIS
and
MIDAMERICA NATIONAL BANK,INC.
PREAMBLE
WHEREAS,on April 5,2017,recognizing the need to foster the development,expansion and
revitalization of certain properties which are vacant,underutilized 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, on the 2nd day of April, 2019, the City approved a non-binding Inducement
Resolution to encourage MidAmerica National Bank,Inc.to proceed with a proposed redevelopment
project consisting of,but not limited to,replacing and constructing a new commercial headquarters and
banking facility at 100 W.Elm Street,Canton,IL(the"Developer's Project");and
WHEREAS, the City now wishes to amend the TIF District Plan, Projects and the
Redevelopment Project Area to add additional parcels of property,including the MidAmerica National
Bank,Inc. site and related redevelopment project costs;and
WHEREAS,the City has engaged the professional services of Jacob&Klein,Ltd.('J&Iq to
render legal advice and The Economic Development Group,Ltd.("EDG'7 to render technical advice
to assist the City with undertaking said amendment to the TIF District;and
WHEREAS,MidAmerica National Bank,Inc.is supportive of the City's efforts to amend the
TIF District and wishes to assist the City by providing the funds to the City to finance the First
Amendment to Canton TIF District No.3;and
WHEREAS,the City wishes to accept such financial assistance from MidAmerica National Bank,
Inc.on the condition that the City shall provide reimbursement to MidAmerica National Bank,Inc.of
those funds advanced to the City for the purpose of said First Amendment from the initial gross real
estate tax increment generated from the Developer's Project located within the TIF District as amended
by the First Amendment.
Page 2 of 5
THEREFORE BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF-
THE CITY OF CANTON THAT:
1. The Agreement by and between the City of Canton,Fulton County,Illinois and MidAmerica
National Bank,Inc.(AkbibirA attached)is hereby approved.
2. The Mayor is hereby authorized and directed to enterinto and execute on behalf of the City,said
Agreement and the City Clerk of the City of Canton is hereby authorized and directed to attest
such execution.
3. The Agreement shall be effective on the date of its approval,the 16`'day of April,2019.
4. This Ordinance shall be in'full force and effect from and after its passage and approval as
required by law.
(Tbe mmainder of tbispage is intentionally blank.)
Page 3 of 5
PASSED,APPROVED AND ADOPTED by the Corporate Authorities of the City of Canton,
Fulton County,Illinois this 16`E'day of April,2019 and filed-in the office of the City Clerk of said City
on that date.
CORPORATE AUTHORITIES AYES NAYS ABSTAIN ABSENT
Ryan Mayhew,Ald.Ward 1 ' X
Angie Lin enfelte=,Ald.Ward 1 X
Craig West Ald.Ward 2 X
Tad Putrich,Ald.Ward 2 X
Quin Mayhew Ald.Ward 3 X
Justin Nelson,Aid.Ward 3 X
ohn Lovell.Ald.Ward 4 X
Arkeela Hale.Ald.Ward.4 X
Kent A.McDowell,Mayor
TOTALS: 7 0 1 0
APPROVED:
4/-'Lt 0,(I� fit& _
Mayoi" Date
City Clerk Date
'EXI-ITBTT A ATTACITEM: Agreement
Page 4 of 5
EXHIBIT A
AGREEMENT
by and between
CITY OF CANTON, FULTON COUNTY, ILLINOIS
and
MIDAMERICA NATIONAL BANK, INC.
Page 5 of 5
AGREEMENT
by and between
CITY OF CANTON,FULTON COUNTY, ILLINOIS
and
MIDAMERICA NATIONAL BANG,INC.
THIS AGREEMENT(including Exhibits)is entered into this 16`,day of April,2019,by the
City of Canton,Fulton County,Illinois (the"City"),and MidAmerica National Bank,Inc.,an
Illinois Corporation(a/k/a MidAmerica National Bank and the"Developer").
PREAMBLE
WHEREAS, the Illinois Municipal Code (the `.`Municipal Code") grants to the City the
authority to promote the health, safety, and welfare of the City and its citizens-and to prevent the
spread of blight and deterioration and inadequate public facilities by promoting the development of
private investment property thereby increasing the tax base of the City and providing employment for
its citizens (65 ILCS 5/11-11-1 and 11-74.4-1 et.seq.);and
WHEREAS, the City wishes to amend the existing CANTON TAX INCREMENT
FINANCING(TIP)DISTRICT 3 (the"TIF District's which was established by Ordinance 4065,
Ordinance 4066 and Ordinance 4067 on the 5th day of April, 2017 pursuant to the Tax Increment
Allocation Redevelopment Act(the"Act'),65 ILCS 5/11-74.4-1 et seq.;and
WHEREAS, on the 2"d day of April, 2019, the City approved a non-binding Inducement
Resolution attached hereto as Exhibit 1 to encourage the Developer to proceed with a proposed
redevelopment project consisting of,but not limited to,replacing and constructing a new commercial
headquarters and banking facility at 100 W.Elm Street,Canton,IL(the"Developer's Project');and
WHEREAS, on the 16" day of April, 2019 the City approved Ordinance No. 4134 hereto
attached as Exbibit 2 to engage the professional services of Jacob &Klein,Ltd. ("J&I) to render
legal advice-and The Economic Development Group, Ltd. ("EDG'� to render technical advice to
assist the City with undertaking a good faith effort to complete the First Amendment to the TIF
District;and
WHEREAS, the Developer is supportive of the City's efforts to undertake the First
Amendment to Canton TIF District 3 (the "Amendment's to include property owned by the
Developer and wishes to assist the City by providing the funds to the City necessary to finance the
Amendment to the TIF District;and
WHEREAS, the City wishes to accept such financial assistance from the Developer on the
condition that the City shall provide reimbursement to the Developer of those funds advanced to the
City for the purpose of amending the TIF District from the gross real estate tax increment generated
by the Developer's Project located in the TIF District after the date of this Agreement.
2
Ag&emeat by and between City of Canton and
MidAmerica National Bank,Inc.
AGREEMENTS
NOW,.THEREFORE, the Parties, for good and valuable consideration, the receipt of which is t
acknowledged,agree as follows:
t
A. PRELIMINARY STATEMENTS
The Parties agree that the matters set forth in the recitals above are true and correct and form
a part of this Agreement.
1. Any terms which are not defined in this Agreement shall have the same meaning as they do in
the Municipal Code and the Act,unless indicated to the contrary.
2. The Developer is extending assistance to the City based upon the City's intent to amend the
Canton TIF District 3 Redevelopment Project Area and include certain of the Developer's
real property located at 100 West Elm Street,Canton,Illinois therein.
3. The Professional Services Agreement by and between the City of Canton and Jacob&Klein,
Ltd. and The Economic Development Group, Ltd previously approved on the 16`s day of
April,2019,is attached hereto as Exhibit 2.
4. Each of the Parties represents that it has taken all actions necessary to authorize its
representatives to execute this Agreement.
B. DEVELOPER COMMITMENTS
1. The Developer shall provide the City with advance payment of,or establish an escrow account
with, an amount not less than Twenty-Five Thousand and 00/100 Dollars ($25,000.00) '
immediately upon execution of this Agreement,from which the City may request draws'as the
fees and costs of amending the TIF District are incurred. If the fees and costs relating to the r
Amendment exceed $25,000.00, the City shall pay such additional fees and costs as are
necessary to complete the Amendment.
2. For purposes of this Agreement, Fees and Costs relating to the professional services for
amending the TIF District shall mean those Fees'and Costs described in Exhibit 2,as well as
other related costs including,but not limited to,engineering costs and mailing and publication
costs. The Fees and Costs for amending the TIF District are to'be advanced from the
Developer to the City. The Fees and Costs for the annual administration of the TIF District
will be paid by the City.
C. CITY OF CANTON COMMITMENTS
1. All funds advanced to the City from the Developer relating to the fees and costs of completing
the Amendment shall be reimbursed to the Developer from the initial gross annual real estate
tax increment generated by the Developer's Project within the TIF District after the date of
this Agreement,until all funds advanced by the Developer are reimbursed or the TIF District
3
Agreetweut Gy and Gehueen City of Cantor:and
MRAnredca National Bank,lire.
ends,whichever occurs first.
2. All reimbursements to the Developer shall be payable from the City's Special Tax Allocation
Fund(the"TIF Fund')for this TIF District. Payments should be made within thirty(30)days
after the receipt of the real estate tax increment and if funds are available in the TIF Fund
pursuant to Para,pippb 1 above. If funds are not then*available,payment shall be made within
thirty(30).days after funds become available.
3. The Developer acknowledges that the City cannot guarantee the Amendment of the TIF
District. In the event the City of Canton is unable to complete the First Amendment to
Canton TIF District 3,for any reason whatsoever,the City shall be under no further obligation
to repay any funds advanced by the Developer hereunder.
D. LIMITED OBLIGATION
The City's obligation hereunder to reimburse the Developer for fees and costs relating to the
amendment to the TIF District is a limited obligation to be reimbursed solely from the real estate tax
increment generated within the TIF District by the Developer's Project.Said obligation does'not now
and shall never constitute an indebtedness of the City within the meaning of any State of Illinois
constitutional or statutory provision and shall not constitute or give rise to a pecuniary liability of the
City or a charge or lien against any City fund or require the City to utilize its taxing authority to fulfill
the terms of this Agreement.
E. LIMITED LIABILITY OF THE DEVELOPER
TO OTHERS FOR CITY'S EXPENSES
There.shall be no obligation by the Developer to make any payments to any entity other than
the City, not shall the Developer be obligated to make direct payments to any other contractor,
subcontractor, mechanic or material man providing services or materials to the.City for the First
Amendment to Canton TIF District 3.
F. DEFAULT;CURE;REMEDIES
1. In the event of a default under this Agreement by any Parry hereto (the"Defaulting Party'),
which default is not cured within the cure period provided for below,then the other Party(the
"Non-'defaulting Party");shall have an action for damages,or,in the event damages would not
fairly compensate the Non-defaulting Parties for the Defaulting Party's breach of this
Agreement,the Non-defaulting.Party shall have such other equity rights and remedies as are
available to them at law or in equity. Any damages payable by the City hereunder shall be
limited to the real estate tax increment payable to the Developer under the terms of this
Agreement.
2. In the event a Defaulting Party shall fail to perform a monetary covenant which it is required
to perform under this Agreement,it shall not be deemed to be in default under this Agreement
unless it shall have failed to perform such monetary covenant within thirty (30) days of its
receipt of a notice from a Non-defaulting Party specifying that it has failed to perform such
monetary covenant. In the event a Defaulting Party fails to perform any nonmonetary
4
Agreement by and between City of Canton and
MidAmerica National Bank,Inc.
covenant as and when it is required to under this Agreement,it shall not be deemed to be in
default if it shall have cured such default within(30)days of its receipt of a notice from a Non-
defaulting Party specifying the nature of the default,provided,however,with respect to those
nonmonetary defaults which ate not capable of being cured within such thirty(30)day period,
it shall not be deemed to be in default if it commences curing within such thirty (30) day
period,and thereafter diligently and continuously prosecutes the cure of such default until the
same has been cured.
G. NOTICES
All notices or other instruments required or permitted by this Agreement.shall be in writing
and shall be executed by the party or an officer,agent or attorney of the party,and shall be deemed to
have been effective as of the date of actual delivery,if delivered personally,or as of the third(3rd)day
from and including the date of posting, if mailed by registered or certified mail, return receipt
requested,with postage prepaid addressed as follows:
TO CITY: TO DEVELOPER: `
City Clerk,City of Canton MidAmerica NationaL Bank,Inc.
2 Main Street Attn:,Rick R.Klinedinst,President/CEO
Canton,IL 61520 100 West Elm Street
Telephone:(309) 647-0065 Canton,IL 61520
Telephone: (309) 647-5000
With a copy to. With a copy to.
Curtis Lane,City Attorney Froehiing,Weber&Schell,LLP
2 N.Main Street %Ron J.Weber,Attorney at Law
Canton,IL 61520 167 West Elm Street
Telephone:(309) 647-2738 Canton,Illinois 61520
Telephone: (309) 647-6317
H. ASSIGNMENT
The rights (including,but not limited to,the right to payments contemplated by Section C of
this Agreement,) and obligations by Section B of the Developer under this Agreement shall be fully
assignable by the Developer provided written notice is provided to the City and City's consent is
obtained prior to such assignment. The City's consent shall not be unreasonably withheld provided
that the nature of the Agreement is not substantially changed and provided that the assignee is
financially capable of fulfilling the obligations of the assignor. Any such assignment shall be subject
to all the terms and conditions contained in this Agreement. Further, no such assignment shall be
deemed to release the assignor of its obligations to the City under this Agreement unless the consent
of the City to the release of the assignor's obligarions is first obtained.
5
Agnwilent by and between City of Canton and
MidAmerica National Bank,Inc.
I. SUCCESSORS IN INTEREST
This Agreement shall be binding upon and inure to the benefit of the Parties hereto and
their respective assigns and/or successors.
J. NO JOINT VENTURE,AGENCY,OR PARTNERSHIP CREATED
Neither anything in this Agreement nor any acts of the parties to this Agreement shall be
construed by the parties or any third person to create the relationship of a partnership,agency,or joint
venture between or among such Parties.
S. WARRANTY OF SIGNATORIES
The signatories of-the Developer warrant that they have full authority to execute this
Agreement and to bind the entity for which they are signing.
L. ENTIRE AGREEMENT
The terms and conditions set forth in this Agreement and exhibits attached hereto supersede
all prior oral and written understandings and constitute the entire agreement between the City and the
Developer with respect to the subject matter hereof.
M.AMENDMENTS
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.
N. SEVERABILITY
If any section, subsection,term or provision of this Agreement or the application thereof to
any party or circumstance shall, to any extent, be invalid or unenforceable, the remainder of said
section, subsection, term or provision of this Agreement or the application of same to parties or
circumstances other than those to which it is held invalid or unenforceable, shall not be affected
thereby.
O.TERM OF THE AGREEMENT
This Agreement shall expire upon the expiration of the TIF District adopted by the City of
Canton or earlier if the Developer has received all reimbursements included herein.
(The remainder ofthis page is intentionally blank)
6
Agreement¢y and between City of Canton and
MidAmerica National Bank, Inc.
IN WITNESS WHEREOF the City and the Developer heretohave caused this Agreement
to be executed by their duly authorized officers on the above date at Canton,Illinois.
CITY OF CANTON,ILLINOIS,an Illinois Municipal.Corporation
BY:
Mayor, City of Canto
ATTEST:
City Glerk,City of Canton
MIDAMERICA NATIONAL BANK,INC., an Illinois Corporation
BY:
Pr
e
s
ent%CED
I IACANlff\'•CAVII1\i •.• �:,:•odm::ut i„�..mrni.a m�:v:nc 1�:1 ••m:.ill Ih.a:; f::;nnn::Ap,cmiml•..'4—%1%.\Vn!n If h n;f:m .a.:fi 1;•d12"1'd,W'
7
fgrriii,?rit by and beApeen City of Canton and
MidAmerica National Bank,Inc.
EXHIBIT 1
COPY OF
INDUCEMENT RESOLUTION NO. 5184
B
RESOLUTION NO. 5184
CITY OF CANTON,ILLINOIS
PROPOSED
FIRST AMENDMENT
TAX INCREMENT FINANCING(TIF)DISTRICT NO.3
REDEVELOPMENT PROJECT
INDUCEMENT RESOLUTION
WHEREAS, the City of Canton,Fulton County, Illinois, (the "City"), has the authority to
pr oxiote.the health, safely and welfare of the City and its citizens, and to prevent the spread of
blight and dettiribiAloa by promoting the development of private investment.in property thereby
increasing the real estate tax base of the City and providing employment for its citizens;and
WHEREAS,pursuant to the Tax Increment Allocation Redevelopment Act,65 ILLS 5/11-
74.4 et reg., as-amended (the"Act"), the City has the authority to provide incentives to owners or
prospective owners of real property to develop,redevelop,rehabilitate,market and/or upgrade such
property by reimbursing the owner for certain costs from resulting increases in real estate tax
revenues("Tax Increment's or from other City revenues;and
WHEREAS, on April 5,2017, recognizing the need to foster the development, expansion '
and revitalization of certain.properties which are vacant, underutilized 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 is considering proposals for commercial; light industrial and
residential redevelopment projects on properties that the City intends to include within a proposed
First Amendment to Canton Tax Increment Financing(TIF)District No. 3 Redevelopment Project
Area(the"Area'7;and
WHEREAS, it appears that such.'redevelopments cannot be developed without the
adoption of an Amended Tax Increment Financing District Redevelopment Plan,Armand Projects
for the TIF District pursuant to the Tax Increment Allocation Redevelopment Act,65 ILCS 5/11-
74-4 et reg. (the"Act");and
WHEREAS, the City is authorized under the Act to make and enter into all contracts with
property owners, developers, tenants, overlapping taxing bodies, and others necessary or incidental
to the implementation and furtherance of its redevelopment plans and projects and to finance
redevelopment project costs provided such project costs are eligible under the Act;and
WHEREAS, MidAmerica National Bank, 100 W. Fdm Street, Canton, Illinois, or its
assignee (the"Developer") is currently proposing to a redevelopment project consisting of,but not
limited to,replacing and constructing z new commercial headquarters and banking facility at 100 W.
Page 1 of 4
Elm Street, Canton, Illinois (the "ProjeceD within the proposed Area to be amended to the TIF
District;and
WHEREAS, redevelopment of the property within the Area will entail expenditures of
substantial time, effort and money and that but for the assistance of tax increment financing, the
proposed Project is not deemed to be financially feasible as evidenced by the Developer's statement
attached hereto as Exblb*A;and
WHEREAS,this Resolution is intended to induce the Developer to commence the Project
and to seek reimbursement from incremental real estate tax revenue received by the City or from
other sources as may be agreed to between the City and the Developer which are necessary to
accomplish the goals.of the Canton TIF District No. 3 Redevelopment Plan and Projects as may be
amended by the City for this Project;and
WHEREAS,the Board of Trustees has initiated an examination of the proposed Area as to
be amended and believes that expenditures of development costs in furtherance of the potential
Redevelopment Plan and Projects should be allowable project costs under the Redevelopment Plan,
provided that this Resolution is nota guarantee of the amount of project costs"t-Will be
allowable,if any,but rather is an indication of the intent and pense of the City at this time.
NOW,'THEREFORE, BE IT RESOLVED by the Mayor and City Council of the City
of Canton,Fulton County,Illinois,as follows:
1. That the intentions of the City of Canton regarding this Project as expressed in the
recitals herein are hereby approved; provided however, that neither such intentions,
affirmations, authorizations nor such recitals are binding upon the City nor may the
same be relied upon to any entity's or person's detriment by such entity or person
whether third person or otherwise in the event that the aforementioned agreements or
plans are not mutually attainable.
2. That the City Council of the City of Canton is in favor of the proposed Project.
3. The City shall proceed and use-its best good faith efforts to amend the Canton Tax
Increment Financing District No. 3 Redevelopment Plan, Project and Area to include
the Developer's Property and Project. The City and the Developer shall also use their
best efforts to enter into a Predevelopment Agreement on or before June 30,2019,and
provided that such agreement is approved, those 'future TIF eligible pfoject costs
incurred by the Developer from the date of this-Resolution may be xeir6ursed to the
Developer from an appropriate Special Tax Allocation Fund and shall thereby constitute
an incurred obligation of the City of Canton pursuant to Sections 5/11-74.4,4(b)and(j}
of the Act.
4. The provisions of this Resolution shall be effective commencing with.its adoption as
provided by law.
Page 2 of 4
PASSED,APPROVED AND ADOPTED by the Mayor and Board of Trustees of the City of
Canton,Peoria County,Illinois,on the.V of April,2019,and deposited and flied in the Office of
the City Clerk of said City of Canton on that date.
CORPORATE AUTHORITIES AYES NAYS ABSTAIN ABSENT
Ryan Mayhew,Ald.Ward 1 X
Angie Lingenfelter,Aid,Ward I X
Craig West.Ald.Ward 2 X
Tad Putrich,Ald.Ward 2 %
Quin Mayhew,Ald.Ward 3 X
Justin Nelson,Aid.Ward 3 X
John Lovell,Alda Ward 4 %
Angela Hale,Ald,Ward 4 X
Kent A.McDowell,Mayor
TOTALS: 7 0 1 0
APPROVED: --fft _ Date 2019
May r,City of G:i�rran
L-- , Date Z/2019
A'T'TEST:
Clerk,City of Canton
Attadhment:
Exhibit A. Developer Statement
MACANTON\CANTON 3\First Atunndtncnt\Cnntnn TIP 3 AiAND lnduwmcut Rcatdutlon�2 April 2010.dnc
Page 3 of 4
EXHIBIT A
DE'VELOP'ER STATEMENT
Page 4 of 4
1V�1'ld�#inerfca IVa�fanra! 3,�_
1gar�ocsd�ares, Inc.
March,27,2019
i
Mr.Kent McDowell,Mayor
City of Canton
2 North Main Street
Canton,IL 61520
Dear Mayor McDowell:
MidAmerica National.Bank is entering its eighty-sixth year In Canton,.fifty at its current location.We have been
considering a project to either remodel the existing building or build a new building at the current location.
This location has been Ideal for our customers and the community and our desire Is to remain here as Canton's
longest standing,locally owned community bank for many more years.
Replacing and expanding our current facility instead of renovating an old building Is a significantly greater
Investment than we had originally contemplated. The potential availability of some assistance by the City
through tax increment financing will help us mitigate the additional long-term risks we are otherwise unable to
fully justify at this time, Therefore,as we draw closer to our final decisions for our Project,we respectfully ask
that the City of Canton consider adding our site to a TIF redevelopment area and approve a non-binding
Inducement Resolution to affirm its support for MidAmerica National Bank to construct an entirely new
building.
Thank you for your consideration.
Sincerely,
Rick R.Klinedinst
President/CEO
• . . f . Ilia
lig?wilmt by and between City of'Canton and
MidAmerica National Bank,Inc:
EXHIBIT 2
COPY OF
CITY OF.CANTON ORDINANCE NO.4134
and
PROFESSIONAL SERVICES AGREEMENT
for the
FIRST AMENDMENT TO
CANTON TAX INCREMENT FINANCING(TIF)-DISTRICT 3
by and between
THE CITY OF CANTON,FULTON COUNTY,ILLINOIS
and
JACOB&KLEIN,LTD.
and THE ECONOMIC DEVELOPMENT GROUP,LTD.
9
i
t
F
i
CERTIFICATE
THE UNDERSIGNED CERTIFIES THAT SHE IS THE CITY CLERK FOR THE CITY OF-
CANTON,ILLINOIS,AND THAT THE CITY COUNCIL ATA 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.
z
(SEAL)
D 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 16TH DAY OF APRIL,2019.
PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY
COUNCIL OF THE.CITY OF CANTON,FULTON COUNTY,ILLINOIS,
THIS 16TH DAY OF APRIL,2019
EFFECTIVE: APRIL 16,2019
ORDINANCE NO.4134
CITY OF CANTON,ILLINOIS
AN ORDINANCE APPROVING AND AUTHORIZING
t
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 arevacant,underutilized 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 County, Illinois (the "City'7,wishes to amend an existing Tax
Increment Financing District located in Canton, Illinois pursuant to the Tax Increment
Allocation Redevelopment Act,65 ILCS 5/11-74.4-1 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,Ltd.(,M-Wb*A attached)is hereby approved.
Page 2 of 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 ADOP'T'ED by the Corporate Authorities of the City of Canton,
Fulton County,Illinois this 16'day of April,2019 and filed in the office of the City Clerk of said City
on that date.
CORPORATE AUTHORITIES AYES NAYS ABSTAIN ABSENT
Ryan Mayhew,Ald.Ward 1. X
Angie Lin enfelter,Ald.Ward 1 X
Craig West,Ald.Ward 2- X
Tad Putdch,Aid.War4 2 X
ttin Mayhew Ald.Ward 3 X
ustin Nelson,Ald.Ward 3 X
John Lovell.Ald.Ward 4 X
Ane�la Hale Ald.Ward 4 X
Kent A.McDowellMayor
TOTALS: 0 1 0
APPROVED:
Mayor Date
ATTES .
City Clerk Date
EXHIBIT A ATTACHED: Professional Services Agreement
Page 3 of 4
i
EXHIBIT A
PROFESSIONAL SERVICES AGREEMENT
for the
FIRST AMENDMENT TO
CANTON TAX INCREMENT FINANCING(TIF)DISTRICT NO.3
by and between
3
JACOB&KLEIN,LTD.AND
THE ECONOMIC DEVELOPMENT GROUP,LTD.
and
THE CITY OF CANTON,FULTON COUNTY,ILLINOIS
Pa&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 o£April,2019,by and between the CITY
OF CANTON; FULTON COUNTY, ILLINOIS .("CITY"); JACOB & ERIN, LTD.,
Bloomington, Illinois C1J&W'); and THE ECONOMIC DEVELOPMENT GROUP, LTD.,
Bloomington,Illinois("EDG").
WHEREAS, the City wishes to amend the existing CANTON TAX.INCREMENT '
FINANCING (TIP)DISTRICT 3 (the"nF District's which was established by Ordinance No.
4065,Ordinance No.4066 and Ordinance No. 4067 on the 5a,day of April,2017 pursuant to the Tax
Increment Allocation Redevelopment Act(thee"AceD,65 ILCS 5/11-74.4-1 et,reg.;and
WHEREAS,the City desires to engage the.professional services of J&I{to render legal advice
and EDG to render technical advice -to- assist the City in amending the TIF District ("First
.Amendment's 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:
I.. 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 First Amendment to the
TIF District Redevelopment Plan, Notices and Documentation (including those reports
prepared by other professionals) necessary. to complete the.First Amendment to the TIF
District Redeveloptnent Project Area,Plan and Projects as req*ed pursuant to State Statutes
and as outlined below in Stolon 2,Scope ofProfessional Ser;gee:
a. The Parties agree that J&K, as Attorneys,will uridertake 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. Herbert J.Klein is also the principal owner of Jacob&Klein,Ltd.Q&K).
1
b. The City 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 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.
i. Legal services provided by J&.x.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.
H. This Agreement does not include representation in any Court ease resulting ;f
.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 Sedion 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 fully reimbursable to the City from the real estate tax
increment generated by the TIF District.
f. 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 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 EDG will provide services as outlined in Exhibit I to
Amend the TIF District.
2
ii. Term. This Professional Services Agreement for the First Amendment to the
TIF District shall commence immediately -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 TIF District will be amended on or before
September 30,2019,barring unexpected complications. {
M. 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:
i
1. J&K and'EDG shall be paid a total sum of Five Thousand and
00/100 Dollars ($5,000.00)upon execution of this Agreement;and i
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 'date of delivery . of the First Amendment to' the TIF
Redevelopment Plan to the City;and
3. The balance of the Fee, Five Thousand and 00/100 Dollars
($5,000.00), and remaining Costs for the Amendment of the TIF i
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
7
4. All Reimbursable Costs incurred by J&K and EDG as part of the
Amendment 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 .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 Nelson Q&I-C),or the time of
Steven Kline(EDG)while performing said Professional Services described in
ah�br`t 1 subject to the following conditions:
1. All .travel will be reimbursed for mileage 'at--the maximum rate
permitted by Internal Revenue Service Rules and.Regulations at the
time of service.
3
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 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 Amendment to the TIF
District Redevelopment Plan, Projects and Reports and other necessary .
documents;and that J&K and EDG 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 furtherunderstands 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/EDG)professionals.
III; Annual Administration. The Annual Administrative Fees and Costs for the TIF 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 City 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 mutual 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;administrators, 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) certified mail,return receipt requested to:
The City of Canton Jacob&Klein,Ltd.axid
%Canton City Clerk The 9conomic.Development.Group,Ltd.
2 Main Street 1701 Clearwater Avenue
Canton,IL 61520 Bloomington,Illinois 61704
Ph: (309)6.47-0065 Ph: (309)664-7777
4
A
•
of 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 is the Circuit Court of Mclean County,
Illinois.
IN WITNESS WHEREOF,the City of Canton,J&K and EDG have executed this
Professional Services Agreement on the day and year above written.
CITY OF CAN'T'ON,an Illinois Municipal JACOB&KLEIN,LTD.,an Illinois
Corporation: Professional Corporation:.
By: _ By:
. ayor President
Attested
by2X -
THE ECONOMIC DEVELOPMENT
City Clerk GROUP,LIT(.*an Illinois Corpo do
By:
Presiden
ATTACHMENTS:
EKEUBrr 4.J&K/SDG Scope of Services for Fust Amendment to Canton TIF Distiict 3.
K\(:ANT0N\CAN['()N i\Ise Am.•ndntum\.\�rumrnlsip\,\\f:.uium'I'II'{_Isl Amendment NA_It,Aps"_Ill9.dnes
5
EXHIBIT 1
J&R/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 EDGwhich 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 t
Redevelopment Project Area (TIF District Boundary).
3. Evaluate the statutory and financial feasibility of amending the TIF District.
4. Consult on any necessary Annexation Agreement(s)with the City and City 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 traps,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.
S. 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 City Clerk all publications required of the City:
11. Draft and present to the City all required Ordinances to amend the TIF District.
G
EXHIBIT 3.
Summary of Estimated TIF Eligible Project Costs
MidAmerica National Bank Redevelopment Project
Canton TIF District 3 in the City of Canton, Fulton County, Illinois
Project Description: The Developer owns the Property and shall proceed with plans to construct
and operate a commercial bank facility located thereon and demolish the current structure.
Principal Street Location: 100 W. Elm Street,Canton,Illinois
PIN 09-08-27-413-027
LOT 22 JONES THIRD ADDITION LTS 11, 12, 13,22,&E 100'LT 14 EX W 9.25'N
200' &EX 6'X 12'&VAC ST W&N OF LT
PIN 09-08-27-413-015
SECT/LOT: 14 JONES THIRD ADDITION S72 W87 14 E187 14
PIN 09-08-27-413-024
LOT 14 JONES 3RD ADDITION BG 130' N NE INTSC W PINE&S AVE B TH E
87.31 S 58 W 87.5 N 58 TO POB PT
Estimated Total Project Investment: $10,600,000
Estimated TIF Eligible Project Costs:
Land and Building Acquisition............................................................................................................$75,000
Building Rehab and Relocation Costs (garage)......................:...........................................................$30,000
Site Preparation,Demolition and Parking Lot Repairs...............................................................$1,551,000
Professional Fees (Accounting,Legal,Engineering,Architectural,Borings/Assessments).....$450,000
Total Estimated TIF Eligible Project Costs.............................................................. $2,106,000
'The City's reimbursement of Eligible Project Costs to the Developer shall not exceed$2,000,000.00,as set
forth in this Redevelopment Agreement.
Canton TIF District 3 /MidAmerica National Bank Redevelopment Agreement Page 16
EXHIBIT 4.
Private Project Requisition for Reimbursement
Canton TIF District 3 /MidAmerica National Bank Redevelopment Agreement Page 17
CITY OF CANTON, ILLINOIS
CANTON TAX INCREMENT FINANCING (TIF) DISTRICT 3
PRIVATE PROJECT
REQUISITION FOR REIMBURSEMENT
by
MIDAMERICA NATIONAL BANK
Date: —/_/ 20
Attention: City TIF Administrator, City of Canton,Illinois
Re: TIF Redevelopment Agreement,dated / / 2019
by and between the City of Canton,Illinois,and
MidAmerica National Bank(the"Developer")
The City of Canton is hereby requested to disburse funds from the Special Tax Allocation
Fund pursuant to the Redevelopment Agreement described above in the following amount(s), to the
Developer and for the purpose(s) set forth in this Requisition for Reimbursement. The terms used in
this Requisition for Reimbursement shall have the meanings given to those terms in the
Redevelopment Agreement.
1. REQUISITION FOR REIMBURSEMENT NO.
2. PAYMENT PAYABLE TO: MidAmerica National Bank
3. AMOUNTS REQUESTED TO BE DISBURSED:
Description of TIF Eligible Project Cost Amount
TOTAL REQUEST:
Canton TIF District 3 /MidAmerica National Bank Redevelopment Agreement Page 18
4. The amount requested to be disbursed pursuant to this Requisition for Reimbursement will
be used to reimburse the Developer for Redevelopment Project Costs for the Project detailed
in Exhibit of the Redevelopment Agreement.
5. The undersigned certifies and swears under oath that the following statements are true and
correct:
a. the amounts included in (3) above were made or incurred or financed and were
necessary for the Project and were made or incurred in accordance with the
construction contracts,plans and specifications heretofore in effect;and
b. the amounts paid or to be paid, as set forth in this Requisition for Reimbursement,
represent a part of the funds due and payable for TIF Eligible Redevelopment Project
Costs;and
c. the expenditures for which amounts are requested represent proper Redevelopment
Project Costs as identified in the"Limitation of Incentives to Developer"described in
Section D of the Redevelopment Agreement: have not been included in any previous
Requisition for Reimbursement; have been properly recorded on the Developer's
books; are set forth with invoices attached for all sums for which reimbursement is
requested;and proof of payment of the invoices;and
d. the amounts requested are not greater than those necessary to meet obligations due
and payable or to reimburse the Developer for its funds actually paid for
Redevelopment Project Costs;and
e. the Developer is not in default under the Redevelopment Agreement and nothing has
occurred to the knowledge of the Developer that would prevent the performance of
its obligations under the Redevelopment Agreement.
Any violation of this oath shall constitute a default of the Redevelopment Agreement and shall
be cause for the City to unilaterally terminate the Redevelopment Agreement.
6. Attached to this Requisition for Reimbursement is Exhibit 3 of the Redevelopment
Agreement,together with copies of invoices,proof of payment of the invoices,and Mechanic's
Lien Waivers relating to all items for which reimbursement is being requested.
BY: (DEVELOPER) DATE: / / 20
APPROVED BY CITY OF CANTON,ILLINOIS
BY: TITLE: DATE: / /20
REVIEWED BY JACOB&KLEIN,LTD.&THE ECONOMIC DEVELOPMENT GROUP,LTD.
BY: TITLE: DATE: / /20
Canton TIF District 3 /MidAmerica National Bank Redevelopment Agreement Page 19