HomeMy WebLinkAboutOrdinance #4220 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 6TH DAY OF APRIL, 2021 ADOPTED ORDINANCE NO. 4220 A TRUE AND
CORRECT COPY OF WHICH IS CONTAINED IN THIS PAMPHLET.
GIVEN UNDER MY HAND AND SEAL THIS 6th DAY OF APRIL, 2021.
(SEAL)
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Com--
DIAN PA vii -ROCK
CITYCITY CLERK
CITY OF CANTON, ILLINOIS
ORDINANCE NO. 4220
AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A
TIF REDEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF CANTON, FULTON COUNTY, ILLINOIS
AND
JED RHOADES
PASSED BY THE CITY COUNCIL
OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS,
ON THE 6TH DAY OF APRIL, 2021.
PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY
COUNCIL OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS,
THIS 6TH DAY OF APRIL, 2021.
EFFECTIVE: APRIL 6, 2021
CITY OF CANTON, ILLINOIS: ORDINANCE NO. 4220
CANTON 1- DOWNTOWN / 5TH AVENUE
TAX INCREMENT FINANCING (TIF) DISTRICT
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF A REDEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF CANTON
AND
JED RHOADES
BE IT ORDAINED BY THE CITY OF CANTON, FULTON COUNTY, ILLINOIS
THAT:
1. The Redevelopment Agreement with Jed Rhoades (Exhibit A attached) is hereby
approved.
2. The Mayor is hereby authorized and directed to enter into and execute on behalf of the
City said Redevelopment Agreement 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 6th day of
April, 2021.
4. This Ordinance shall be in full force and effect from and after its passage and approval as
required by law.
[the remainder of this page is intentionally blank
PASSED,APPROVED AND ADOPTED by the Corporate Authorities of the City of Canton,
Fulton County, Illinois, on the 6th day of April, 2021, and deposited and filed in the Office of the
City Clerk of said City on that date.
MAYOR&ALDERMEN AYE VOTE NAY VOTE ABSTAIN/ABSENT
Angie Lingenfelter X
Andra Chamberlin X
Jeff Fritz X
Craig West X
Quin Mayhew X
Justin Nelson X
John Lovell X
Angela Hale X
Kent A. McDowell,Mayor X
TOTAL VOTES
APPROVED: ..Ay (f I I/
, Date: r / /2021
Mayor, C• .f C. - .on
111.
ATTEST: A 4! , Date: / (,! /2021
City Clerk, ity of Canton
ATTACHMENTS: EXHIBIT A. REDEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF
CANTON AND JED RHOADES.
TAX INCREMENT FINANCING DISTRICT
REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON, FULTON COUNTY, ILLINOIS
and
JED RHOADES
CANTON 1 - DOWNTOWN / 5TH AVENUE
TAX INCREMENT FINANCING DISTRICT
APRIL 6, 2021
TIF REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON
and
JED RHOADES
CANTON 1- DOWNTOWN / 5TH AVENUE TIF DISTRICT
THIS TIF REDEVELOPMENT AGREEMENT (including Exhibits) ("Agreement") is
entered into this 6th day of April, 2021, by the City of Canton (the "City"), an Illinois Municipal
Corporation, Fulton County, Illinois, and Jed Rhoades (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 by
promoting the development of private property thereby increasing the tax base of the City and
providing employment for its citizens; and
WHEREAS,pursuant to the Tax Increment Allocation Redevelopment Act,65 ILCS 5/11-74.4.4
et seq., as amended (the "Act"), the City has the authority to provide incentives to owners or
prospective owners of real property to develop, redevelop, and rehabilitate such property by
reimbursing the owners for certain costs from resulting increases in real estate tax revenues;and
WHEREAS, on July 6, 2004, 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 International Harvester Site Project Area TIF District
(currently known as the"Canton 1 - Downtown / 5th Avenue TIF District) (hereinafter referred to as
the "TIF District"); and
WHEREAS, one such property is owned by the Developer and located at 130 N. Main Street,
Canton, Illinois, currently Parcel Identification Number 09-08-27-409-006 (the "Property") and said
Property is in need of development and integral to the development of the TIF District; and
WHEREAS,the Developer will proceed with plans to renovate and rehabilitate the second floor
of the commercial building thereon for operation of two AirBnB units (the "Project"), and is doing
so based upon incentives made available by the City; and
WHEREAS,it is the intent of the City to encourage economic development which will increase
the real estate tax, which increased taxes will be used, in part, to finance incentives to assist this
Developer's Project; and
WHEREAS, the City has the authority under the Act to incur Redevelopment Project Costs
("Eligible Project Costs") and to reimburse Developer for such costs; and
WHEREAS, pursuant to Illinois Statute 65 ILCS 5/8-1-2.5, the City has the authority to
appropriate and expend funds for economic development purposes, including without limitation, the
Jed Rhoades Redevelopment Agreement Page 1
making of grants to any commercial enterprise that is necessary or desirable for the promotion of
economic development within the municipality; and
WHEREAS, the Developer has requested that incentives for the development be provided by
the City from incremental increases in real estate taxes of the City and its Project and that such
incentives include the reimbursement of TIF Eligible Project Costs; and
WHEREAS, the City has determined that this Project requires the incentives requested and that
said Project will,as a part of the Plan,promote the health,safety and welfare of the City and its citizens
by attracting private investment to prevent blight and deterioration,to develop underutilized property,
and to provide employment for its citizens and generally to enhance the economy of the City; and
WHEREAS,the City and the Developer (the "Parties") have agreed that the City shall provide a
forgivable loan to the Developer for the reimbursement of a portion of the Developer's TIF Eligible
Project Costs (as set forth in Exhibit "1" attached hereto) of an amount not to exceed Twenty
Thousand and No/100 Dollars ($20,000.00) to be paid from the Canton TIF District 1 Special Tax
Allocation Fund as specified below in Section C, Incentives; and
WHEREAS, in no event shall cumulative maximum reimbursements for the Developer's TIF
Eligible Project Costs under this Agreement exceed Twenty Thousand and 00/100 Dollars
($20,000.00); and
WHEREAS, the City is entering into this Agreement to induce the Developer to acquire the
Property and complete the Project; and
WHEREAS, in consideration of the execution of this Agreement and in reliance thereon, the
Developer has proceeded with its plans to complete the Project as set forth herein.
AGREEMENTS
NOW, THEREFORE, for good and valuable consideration, the receipt of which is
acknowledged, the Parties 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 and are to be construed as binding statements 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
Jed Rhoades Redevelopment Agreement Page 2
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 on or before on or before the date that is six (6)
months from the date this Agreement is approved by the City, subject to extension due to
Force Majeure (defined below). The Project will be deemed complete when the Developer
has completed the rehabilitation and renovation of at least 2 AirBnB units on the second
floor of the commercial building located on the Property and such units are available for
nightly rentals to the public.
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 1 - Downtown /
5th Avenue TIF District" which includes the Developer's Property. The City has approved certain
Redevelopment Project Costs, including the types described in Exhibit "1" for the Developer's
Project.
C. INCENTIVES
In consideration for the Developer completing its Project, the City agrees to extend to the
Developer the following incentives to assist the Developer's Project:
1. The City agrees to loan to the Developer (also, the "Borrower") the sum of Twenty
Thousand Dollars ($20,000.00) from the TIF District Special Tax Allocation Fund for
TIF Eligible Project Costs incurred as a result of the Developer's Project. The terms and
conditions for the loan shall be as follows:
a. The full Loan amount of$20,000.00 shall be disbursed to the Developer from the TIF
District Special Tax Allocation Fund within thirty (30) days from the date of execution
of this Agreement, or upon verification of a minimum of $20,000.00 of TIF Eligible
Project Costs pursuant to Section E below, whichever occurs later.
b. The interest rate for the note shall be Three Percent (3%) per annum and shall begin to
accrue on the date the loan funds are disbursed to the Developer.
c. The term of the note shall expire on the date that is seven (7) years from the date the
loan funds are disbursed to the Developer hereunder.
d. One-Seventh (1/7) of the principal amount of the loan, plus any accrued interest
thereon, shall be forgiven annually by the City commencing one (1) year from the date
the loan funds are disbursed to the Developer and continuing on said date of each year
thereafter for the term of the loan, provided the Developer has been at all times in full
compliance with every term of this Agreement,including the following:
Jed Rhoades Redevelopment Agreement Page 3
i. The Developer continues to offer at least 2 AirBnB units for overnight stays to the
public for the term of the Loan.
ii. The Developer shall annually provide verification of the payment of the real estate
taxes for the property during the term of this Agreement.
iii. The Developer does not file for bankruptcy or otherwise become insolvent during
the term of this Agreement.
iv. The Property is not the subject of foreclosure proceedings during the term of this
Agreement.
v. The Developer shall carry adequate insurance on the Property to cover the
replacement cost of the completed Project.
vi. The Loan shall be secured by a mortgage (Attached hereto as Exhibit granted
by the Developer and in favor of the City, which shall be filed with the Fulton
County's Recorder's Office. The City agrees that said mortgage shall be subordinate
to that of a primary lender providing financing for the Project at the request of the
Developer. Upon full payment or forgiveness of the Loan, the City shall release the
mortgage and file with the County Recorder's Office whatever documents are
necessary to release said mortgage.
D. LIMITATION OF INCENTIVES TO DEVELOPER
1. In no event, shall the maximum cumulative reimbursements for the Developer's TIF
Eligible Project Costs pursuant to Section C(1) above exceed Twenty Thousand Dollars
and No Cents ($20,000.00) as set forth herein.
2. It is not contemplated that, nor is the City obligated, to use any of its proportionate share
of the monies generated by this Project for any of Developer's Eligible Project Costs, but
rather the City shall use such sums for any purpose under the Act as it may in its sole
discretion determine.
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 Development Redevelopment Costs
("Requisition") (attached hereto as Exhibit "3'5 submitted from time to time to Jacob &
Klein,Ltd. and the Economic Development Group,Ltd. (collectively the "Administrator")
and subject to their approval of the costs and availability of funds in the Special Account.
2. All Requisitions must be accompanied by verified bills or statements of suppliers,
contractors, or professionals together with cancelled checks, mechanic's lien waivers
Jed Rhoades Redevelopment Agreement Page 4
(whether partial or full), or an invoice marked paid from each of the parties entitled to a
payment that is the subject of the Requisition as required by the City.
3. 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.
4. All TIF Eligible Project Costs approved shall then be paid by the City pursuant to the terms
set forth in Section C above.
5. 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 reasonably assist the Developer in every respect to obtain approval
of Eligible Project Costs.
6. 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 to provide to the City as requested the
following:
a. Copies of all PAID annual real estate tax bills for the Property.
2. The failure of Developer to provide any information required herein after notice from the
City, including verification of Eligible Project Costs, and the continued failure to provide
such infotination within thirty (30) days after such notice shall be considered a material
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. 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 TIF District Special Tax Allocation Fund. 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 the City's general credit or taxing power.
Jed Rhoades Redevelopment Agreement Page 5
H. 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
Project. This Agreement shall not create any third-party rights and the Developer shall indemnify and
hold the City harmless on any claims arising out of the Developer's construction activities.
I. COOPERATION OF THE PARTIES
The City and the Developer agree to cooperate fully with each other when requested to do so
concerning the development of the Developer's Project. This includes without limitation the City
assisting or sponsoring the Developer, or agreeing to jointly apply with the Developer, for any grant,
award,or subsidy which may be available 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 jointly apply
with the City, for any grant, award or subsidy which may be available as the result of the City's or
Developer's activities.
J. DEFAULT; CURE; REMEDIES
In the event of a default under this 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") shall have an action for damages, or in the event damages would not fairly
compensate the Non-defaulting Party's 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.
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 non-monetary 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
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 non-monetary 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) days period, and thereafter diligently and continuously prosecutes the
cure of such default until the same has been cured.
K. TIME; FORCE MAJEURE
For this Agreement, time is of the essence. The Developer agrees to complete the Project on or
before the date that is six (6) months from the date this Agreement is approved by the City. Failure to
do so shall be cause for the City to declare the Developer in default and unilaterally terminate the
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
Jed Rhoades Redevelopment Agreement Page 6
(whether legal or illegal), civil disorder, inability to procure materials, weather conditions wet soil
conditions, failure or interruptions of power, restrictive governmental laws 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.
L. ASSIGNMENT
The rights and obligations of the Developer under this Agreement shall not be assignable.
M. 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.
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,tette 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. 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 (3') 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 Developer: To City:
Jed Rhoades Canton City Clerk
1310 Sunview Drive City Hall
Canton, IL 61520 2 N. Main Street
Canton, Illinois 61520
Telephone: (309) 647-0020
With L•opy to:
Jacob&Klein,Ltd.
Economic Development Group,Ltd.
1701 Clearwater Avenue
Bloomington,Illinois 61704
Telephone: (309)664-7777
Jed Rhoades Redevelopment Agreement Page 7
P. SUCCESSORS IN INTEREST
Subject to the Provisions of Section 1_,"above, this Agreement shall be binding upon and inure to
the benefit of the Parties hereto and their respective successors and assigns.
Q. 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.
R. INDEMNIFICATION OF CITY
It is the understanding of the Parties that the position of the Illinois Department of Labor is that
the Illinois Prevailing Wage Act does not apply to TIF increment received by developers as
reimbursement for private TIF Eligible Project Costs. This position of the Department of Labor is
stated as an answer to a FAQ on its website at:
https://www.illinois.gov/idol/FAQs/Pages/prevailing-wage-faq.aspx. 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 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.
S. 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.
T. 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.
U. TERM OF THE AGREEMENT
This Agreement shall expire on the date that is seven (7) years from the date the loan funds
provided for in Section C above are disbursed to the Developer. 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 any other default by the Developer of this Agreement.
Jed Rhoades Redevelopment Agreement Page 8
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. j�
CITY OF CANTON, ILLINOIS, an By: A f�', Kk
kY4
Illinois Municipal Corporation Mayor
,,, /2JED RHOADES
ATTEST: s,' '
i{ ` fr �L . , /� ,'
±, " ��- By: �� A
City Clerk J:• Rhoades
Jed Rhoades Redevelopment Agreement Page 9
EXHIBIT 1
SUMMARY OF ESTIMATED TIF ELIGIBLE PROJECT COSTS
Jed Rhoades
"The Jed Rhoades Redevelopment Project"
Canton TIF District 1, City of Canton, Fulton County, Illinois
Project Description: Developer owns the Property and will proceed with plans to renovate
and rehabilitate the second floor of the existing commercial building
located thereon for operation of a 2-unit AirBnB.
Location: 130 N. Main Street, Canton, Illinois
Parcel Numbers: 09-08-27-409-006
Estimated TIF Eligible Project Costs:
Renovation and Rehabilitation Costs $90,000
Total Estimated TIF Eligible Project Costs' $90,000
1 The Developer's total reimbursement of TIF Eligible Project Costs under Sections C(1)of the Agreement
shall not exceed$20,000.00.
Jed Rhoades Redevelopment Agreement Page 10
EXHIBIT 2
MORTGAGE
Jed Rhoades Redevelopment Agreement Page 11
RECORDATION REQUESTED BY:
The City of Canton, Illinois
2 N. Main Street
Canton, IL 61520
WHEN RECORDED MAIL TO:
The City of Canton, Illinois
2 N. Main Street
Canton, IL 61520
PREPARED BY:
Nicolas P.Nelson
Jacob&Klein,Ltd.
1701 Clearwater Avenue
Bloomington,IL 61704
FOR RECORDER'S USE ONLY
MORTGAGE
THIS MORTGAGE dated April !4' , 2021, is made and executed between Jed Rhoades, whose
address is 1310 Sunview Drive, Canton,Illinois 61520 (referred to below as"Grantor") and the City
of Canton, an Illinois Municipality, whose address is 2 N. Main Street, Canton, Illinois 61520
(referred to below as "Lender"). Grantor owes Lender the principal sum of Twenty Thousand Dollars
and No Cents($20,000.00)as evidenced by the Redevelopment Agreement executed by Grantor and Lender
on April 6, 2021 (hereinafter referred to as the"Redevelopment Agreement"or the"Loan").
GRANT OF MORTGAGE. For valuable consideration,Grantor mortgages,warrants,and conveys to
Lender all of Grantor's right,title,and interest in and to the following described real property,together with
all existing or subsequently erected or affixed buildings, improvements and fixtures; all easements, rights
of way,and appurtenances; and all other rights,royalties,and profits relating to the real property, including
without limitation all minerals, oil, gas, geothermal and similar matters, located at 130 N. Main Street,
Canton,Illinois (the"Real Property"),PIN: 09-08-27-409-006.
THIS MORTGAGE IS GIVEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS AND (B)
PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE REDEVELOPENT
AGREEMENT, THE RELATED DOCUMENTS, AND THIS MORTGAGE. THIS MORTGAGE
IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS:
PAYMENT AND PERFORMANCE. Except as otherwise provided in this Mortgage, Grantor shall pay
to Lender all amounts secured by this Mortgage as they become due and shall strictly perform all of
Grantor's obligations under this Mortgage.
POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's
possession and use of the Property shall be governed by the following provisions:
Possession and Use. Until the occurrence of an Event of Default, Grantor may (1) remain in
possession and control of the property; (2)use, operate or manage the Property; and (3)collect the
Rents from the Property.
Duty to Maintain. Grantor shall maintain the Property in good condition and promptly perform
all repairs,replacements, and maintenance necessary to preserve its value.
MORTGAGE(cont'd)
Nuisance, Waste. Grantor shall not cause, conduct or permit any nuisance nor commit, permit,
or suffer any stripping of or waste on or to the Property or any portion of the Property.
Removal of Improvements. Grantor shall not demolish or remove any Improvements from the
Real Property without Lender's prior written consent. As a condition to the removal of any
Improvements,Lender may require Grantor to make arrangements satisfactory to Lender to replace
such Improvements with Improvements of at least equal value.
Lender's Right to Enter. Lender and Lender's agents and representatives may enter upon the
Real Property at all reasonable times to attend to Lender's interests and to inspect the Real Property
for purposes of Grantor's compliance with the terms and conditions of this Mortgage.
Compliance with Governmental Requirements. Grantor shall promptly comply with all laws,
ordinances, and regulations, now or hereafter in effect, of all governmental authorities applicable
to the use or occupancy of the Property. Grantor may contest in good faith any such law,ordinance,
or regulation and withhold compliance during any proceeding, including appropriate appeals, so
long as Grantor has notified Lender in writing prior to doing so and so long as, in Lender's sole
opinion,Lender's interests in the Property are not jeopardized. Lender may require Grantor to post
adequate security or a surety bond, reasonably satisfactory to Lender,to protect Lender's interest.
Duty to Protect. Grantor agrees neither to abandon nor leave unattended the Property. Grantor
shall do all other acts, in addition to those acts set forth above in this section, which from the
character and use of the Property are reasonably necessary to protect and preserve the Property.
TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of
this Mortgage:
Payment. Grantor shall pay when due (and in all events prior to delinquency) all taxes, payroll
taxes, special taxes, assessments, water charges and sewer service charges levied against or on
account of the Property,and shall pay when due all claims for work done on or for services rendered
or material furnished to the Property. Except for the primary lender for the Grantor's project, the
Grantor shall maintain the Property free of any liens having priority over or equal to the interest of
Lender under this Mortgage, except for those liens specifically agreed to in writing by Lender,and
except for the lien of taxes and assessments not due as further specified in the Right to Contest
paragraph.
Right to Contest. Grantor may withhold payment of any tax, assessment, or claim in connection
with a good faith dispute over the obligation to pay, so long as Lender's interest in the Property is
not jeopardized. If a lien arises or is filed as a result of nonpayment, Grantor shall within fifteen
(15) days after the lien arises or, if a lien is filed, within fifteen (15) days after Grantor has notice
of the filing, secure the discharge of the lien, or if requested by Lender, deposit with Lender cash
or a sufficient corporate surety bond or other security satisfactory to Lender in an amount sufficient
to discharge the lien plus any costs and attorney's fees,or other charges that could accrue as a result
of a foreclosure or sale under the lien. In any contest, Grantor shall defend itself and Lender and
shall satisfy any adverse judgment before enforcement against the Property. Grantor shall name
Lender as an additional oblige under any surety bond furnished in the contest proceedings.
Evidence of Payment. Grantor shall upon demand furnish to Lender satisfactory evidence of
payment of the taxes or assessments and shall authorize the appropriate governmental official to
deliver to Lender at any time a written statement of the taxes and assessments against the Property.
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MORTGAGE(cont'd)
LENDER'S EXPENDITURES. If Grantor fails: (A)to keep the Property free of all taxes, liens, security
interests(other than that of the primary lender for the Grantor's project), encumbrances, and other claims,
(B)to provide any required insurance on the Property, or(C)to make repairs to the Property then Lender
may do so. If any action or proceeding is commenced that would materially affect Lender's interests in the
Property,then Lender on Grantor's behalf may, but is not required to,take any action that Lender believes
to be appropriate to protect Lender's interests. All expenses incurred or paid by Lender for such purposes
will then bear interest at the rate charged under the Loan from the date incurred or paid by Lender to the
date of repayment by Grantor. All such expenses will become a part of the Indebtedness and, at Lender's
option, will (A) be payable on demand; (B) be added to the balance of the Loan set forth in the
Redevelopment Agreement and be apportioned among and be payable with any installment payments to
become due during either(1) the term of any applicable insurance policy; or(2) the remaining term of the
Loan set forth in the Redevelopment Agreement; or(C)be treated as a balloon payment which will be due
and payable at the Loan's maturity. The Mortgage also will secure payment of these amounts. The rights
provided for in this paragraph shall be in addition to any other rights or any remedies to which Lender may
be entitled on account of any default. Any such action by Lender shall not be construed as curing the default
so as to bar Lender from any remedy that it otherwise would have had.
WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property
are a part of this Mortgage:
Title. Grantor warrants that: (a)Grantor holds good and marketable title or record to the Property
in fee simple,free and clear of all liens and encumbrances other than that of a primary lender,those
set forth in the Real Property description or in any title insurance policy, title report, or final title
opinion issued in favor of, and accepted by, Lender in connection with this Mortgage, and (b)
Grantor has the full right, power, and authority to execute and deliver this Mortgage to Lender.
Defense of Title. Subject to the exception in the paragraph above, Grantor warrants and will
forever defend the title to the Property against the lawful claims of all persons. In the event any
action or proceeding is commenced that questions Grantor's title or the interest of Lender under
this Mortgage, Grantor shall defend the action at Grantor's expense. Grantor may be the nominal
party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be
represented in the proceeding by counsel of Lender's own choice,and Grantor will deliver,or cause
to be delivered,to Lender such instruments as Lender may request from time to time to permit such
participation.
Compliance With Laws. Grantor warrants that the Property and Grantor's use of the Property
complies with all existing applicable laws,ordinances,and regulations of governmental authorities.
Survival of Promises. All promises, agreements, and statements Grantor has made in this
Mortgage shall survive the execution and delivery of this Mortgage, shall be continuing in nature
and shall remain in full force and effect until such time as Grantor's Indebtedness is paid in full.
CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this
Mortgage:
Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain
proceedings or by any proceeding or purchase in lieu of condemnation, Lender may at its election
require that all or any portion of the net proceeds of the award be applied to the Indebtedness or the
repair or restoration of the Property. The net proceeds of the award shall mean the award after
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MORTGAGE(cont'd)
payment of all reasonable costs, expenses, and attorneys' fees incurred by Lender in connection
with the condemnation.
FURTHER ASSURANCES; ATTORNEY-IN-FACT. The Following provisions relating to further
assurances and attorney-in-fact are a part of this Mortgage:
Further Assurances. At any time, and from time to time, upon request of Lender, Grantor will
make,execute and deliver,or will cause to be made,executed or delivered,to Lender or to Lender's
designee, and when requested by Lender, cause to be filed, recorded,refilled, or rerecorded, as the
case may be,at such times and in such offices and places as Lender may deem appropriate,any and
all such mortgages, deeds of trust, security deeds, security agreements, financing statements,
continuation statements, instruments of further assurance,certificates,and other documents as may,
in the sole opinion of Lender, be necessary or desirable in order to effectuate, complete, perfect,
continue, or preserve (1) Grantor's obligations under the Loan, this Mortgage, and the Related
Documents, and (2) the liens and security interest created by this Mortgage, whether now owned
or hereafter acquired by Grantor. Unless prohibited by law or Lender agrees to the contrary in
writing, Grantor shall reimburse Lender for all costs and expenses incurred in connection with the
matters referred to in this paragraph.
Attorney-in-Fact. If Grantor fails to do any of the things referred to in the preceding paragraph
and is declared in default, Lender may do so for and in the name of Grantor, and at Grantor's
expense. For such purposes,Grantor hereby irrevocably appoints Lender as Grantor's attorney-in-
fact for the purpose of making, executing, delivering, filing, recording, and doing all other things
as may be necessary or desirable,in Lender's sole opinion,to accomplish the matters referred to in
the preceding paragraph.
FULL PERFORMANCE. If Grantor pays all the Indebtedness when due,and otherwise performs all the
obligations imposed upon Grantor under this Mortgage, Lender shall execute and deliver to Grantor a
suitable satisfaction of this Mortgage and suitable statements of termination of any financing statement on
file evidencing Lender's security interest in the Rents and the Personal Property.
EVENTS OF DEFAULT. At Lender's option, Grantor will be in default under this Mortgage if any of
the following happen:
Payment Default. Grantor fails to make any payment when due under the Indebtedness.
Default on Other Payments. Failure of Grantor within the time required by this Mortgage to
make any payment for taxes or insurance,or any other payment necessary to prevent filing of or to
effect discharge of any lien.
Break Other Promises. Grantor breaks any promise made to Lender or fails to perform promptly
at the time and strictly in the manner provided in this Mortgage or in any agreement related to this
Mortgage.
False Statements. Any representation or statement made or furnished to Lender by Grantor or on
Grantor's behalf under this Mortgage or the Related Documents is false or misleading in any
material respect, either now or at the time made or furnished.
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MORTGAGE(cont'd)
Defective Collateralization. This Mortgage or any of the Related Documents ceases to be in full
force and effect(including failure of any collateral document to create a valid and perfected security
interest or lien) at any time and for any reason.
Insolvency. The dissolution of Grantor,the insolvency of Grantor, the appointment of a receiver
for any part of Grantor's property, any assignment for the benefit of creditors, any type of creditor
workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or
against Grantor.
Taking of the Property. Any creditor or governmental agency tries to take any of the Property
or any other of Grantor's property in which Lender has a lien. This includes taking of, garnishing
of or levying on Grantor's accounts.
Breach of Other Agreement. Any breach by Grantor under the terms of any other agreement,
including but not limited to the Redevelopment Agreement executed on April 6, 2021, which is
incorporated herein by this reference, between Grantor and Lender that is not remedied within any
grace period provided therein, including without limitation any agreement concerning any
indebtedness or other obligation of Grantor to Lender,whether existing now or later.
Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor,
endorser, surety, or accommodation party of any of the Indebtedness or any guarantor, endorser,
surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity
of, or liability under, any Guaranty of the Indebtedness.
RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of an Event of Default and at any
time thereafter, Lender, at Lender's option, may exercise any one or more of the following rights and
remedies, in addition to any other rights or remedies provided by law:
Accelerate Indebtedness. Lender shall have the right at its option without notice to Grantor to
declare the entire Indebtedness immediately due and payable, including any prepayment penalty
that Grantor would be required to pay.
Mortgagee in Possession. Lender shall have the right to be placed as mortgagee in possession or
to have a receiver appointed to take possession of all or any part of the Property,with the power to
protect and preserve the Property, to operate the Property preceding foreclosure or sale, and to
collect the Rents from the Property and apply the proceeds, over and above the cost of the
receivership,against the Indebtedness. The mortgagee in possession or receiver may serve without
bond if permitted by law. Lender's right to the appointment of a receiver shall exist whether or not
the apparent value of the Property exceeds the Indebtedness by a substantial amount. Employment
by Lender shall not disqualify a person from serving as a receiver.
Judicial Foreclosure. Lender may obtain a judicial decree foreclosing Grantor's interest in all or
any part of the Property.
Deficiency Judgment. If permitted by applicable law, Lender may obtain a judgment for any
deficiency remaining in the Indebtedness due to Lender after application of all amounts received
from the exercise of the rights provided in this section.
Other Remedies. Lender shall have all other rights and remedies provided in this Mortgage or
the Loan or available at law or in equity.
5
MORTGAGE(cont'd)
Sale of the Property. To the extent permitted by applicable law, Grantor hereby waives any and
all right to have the Property marshaled. In exercising its rights and remedies, Lender shall be free
to sell all or any part of the Property together or separately, in one sale or by separate sales. Lender
shall be entitled to bid at any public sale on all or any portion of the Property.
Election of Remedies. All of Lender's rights and remedies will be cumulative and may be
exercised alone or together. An election by Lender to choose any one remedy will not bar Lender
from using any other remedy. If Lender decides to spend money or to perform any of the Grantor's
obligations under this Mortgage, after Grantor's failure to do so, that decision by Lender will not
affect Lender's right to declare Grantor in default and to exercise Lender's remedies.
Attorneys' Fees; Expenses. If Lender institutes any suit or action to enforce any of the terms of
this Mortgage, Lender shall be entitled to recover such sum as the court may adjudge reasonable as
attorneys' fees at trial and upon any appeal. Whether or not any court action is involved, and to
the extent not prohibited by law, all reasonable expenses Lender incurs that in Lender's opinion are
necessary at any time for the protection of its interest or the enforcement of its rights shall become
a part of the Indebtedness payable on demand and shall bear interest at the Loan rate from the date
of the expenditure until repaid. Expenses covered by this paragraph include, without limitation,
however subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal
expenses, whether or not there is a lawsuit, including attorneys' fees and expenses for bankruptcy
proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and
any anticipated post-judgment collection services, the cost of searching records, obtaining title
reports(including foreclosure reports), surveyors' reports,and appraisal fees and title insurance,to
the extent permitted by applicable law. Grantor also will pay any court cots,in addition to all other
sums provided by law.
NOTICES. Any notice required to be given under this Mortgage, including without limitation any notice
of default and any notice of sale shall be given in writing, and shall be effective when actually delivered,
when actually received by telefacsimile (unless otherwise required by law), when deposited with a
nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first
class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of
this Mortgage. All copies of notices of foreclosure from the holder of any lien which has priority over this
Mortgage shall be sent to Lender's address. as shown near the beginning of this Mortgage. Any person
may change his or her address fo--notices under this Mortgage by giving formal written notice to the other
person or persons, specifying that the purpose of the notice is to change the person's address. For notice
purposes, Grantor agrees to keep Lender informed at all times of Grantor's current address. Unless
otherwise provided or required by law, if there is more than one Grantor,any notice given by Lender to any
Grantor is deemed to be notice given to all Grantors. It will be Grantor's responsibility to tell the others of
the notice from Lender.
MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this
Mortgage:
Amendments. What is written in this Mortgage and in the Related Documents is Grantor's entire
agreement with Lender concerning the matters covered by this Mortgage. To be effective, any
change or amendment to this Mortgage must be in writing and must be signed by whoever will be
bound or obligated by the change or amendment.
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MORTGAGE(cont'd)
Caption Headings. Caption headings in this Mortgage are for convenience purposes only and are
not to be used to interpret or define the provisions of this Mortgage.
Governing Law. This Mortgage will be governed by federal law applicable to Lender and,
to the extent not preempted by federal law,the laws of the State of Illinois without regard to
its conflicts of law provisions. This Mortgage has been accepted by Lender in the State of
Illinois.
No Waiver by Lender. Grantor understands Lender will not give up any of Lender's rights under
this Mortgage unless Lender does so in writing. The fact that Lender delays or omits to exercise
any right will not mean that Lender has given up that right. If Lender does agree in writing to give
up one of Lender's rights, that does not mean Grantor will not have to comply with the other
provisions of this Mortgage. Grantor also understands that if Lender does consent to a request,that
does not mean that Grantor will not have to get Lender's consent again if the situation happens
again. Grantor further understands that just because Lender consents to one or more of Grantor's
requests,that does not mean Lender will be required to consent to any of Grantor's future requests.
Grantor waives presentment, demand for payment, protest, and notice of dishonor.
Severability. If a court finds that any provision of this Mortgage is not valid or should not be
enforced,that fact by itself will not mean that the rest of his Mortgage will not be valid or enforced.
Therefore,a court will enforce the rest of the provisions of this Mortgage even if a provision of this
Mortgage may be found to be invalid or unenforceable.
Merger. There shall be no merger of the interest or estate created by this Mortgage with any other
interest or estate in the Property at any time held by or for the benefit of Lender in any capacity,
without the written consent of Lender.
Successors and Assigns. Subject to any limitations stated in this Mortgage on transfer of
Grantor's interest.this Mortgage shall be binding upon and inure to the benefit of the parties,their
successors and assigns. If ownership of the Property becomes vested in a person other than Grantor,
Lender, without notice to Grantor, may deal with Grantor's successors with reference to this
Mortgage and the Indebtedness by way of forbearance or extension without releasing Grantor from
the obligations of this Mortgage or liability under the Indebtedness.
Time is of the Essence. Time is of the essence in the performance of this Mortgage.
Waiver of Homestead Exemption. Grantor hereby releases and waives all rights and benefits of
the homestead exemption laws of the State of Illinois as to all Indebtedness secured by this
Mortgage.
SUBORDINATION OF MORTGAGE: Pursuant to the Loan, this Mortgage shall be subordinate to the
following mortgages:
1) 1st Mortgage on the Real Property held by the primary lender for the Borrower's project located
thereon, upon request of the Borrower.
DEFINITIONS. The following words shall have the following meanings when used in this Mortgage:
Borrower. The word "Borrower"means Jed Rhoades and all his successors and assigns.
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MORTGAGE(cont'd)
Event of Default. The words "Event of Default" mean any of the events of default set forth in
this Mortgage in the events of default section of this Mortgage.
Grantor. The word "Grantor"means Jed Rhoades.
Guaranty. The word '`Guaranty" means the guaranty from guarantor, endorser, surety, or
accommodation party to Lender, including without limitation a guaranty of all or part of the Loan.
Improvements. The word ``Improvements" means all existing and future improvements,
buildings, structures,mobile homes affixed on the Real Property,facilities,additions,replacements
and other construction on the Real Property.
Indebtedness. The word "Indebtedness" means all principal, interest, and other amounts, costs
and expenses payable under the Loan, Redevelopment Agreement or Related Documents,together
with all renewals of, extensions of, modifications of, consolidations of and substitutions for the
Loan or Related Documents an any amounts expended or advanced by Lender to discharge
Grantor's obligations or expenses incurred by Lender to enforce Grantor's obligations under this
Mortgage,together with interest on such amounts as provided in this Mortgage.
Lender. The word"Lender"means the City of Canton,Illinois, its successors and/or assigns. The
words"successors or assigns"mean any person or company that acquires any interest in the Loan.
Mortgage. The word "Mortgage"means this Mortgage between Grantor and Lender.
Loan. The word ``Loan"means the Loan set forth in the Redevelopment Agreement executed by
the Parties on April 6, 2021, together with all renewals of, extensions of, modifications of,
refinancing of, consolidations of, and substitutions. The interest rate on the Loan is three percent
(3.0%)per annum.
Real Property. The words"Real Property"mean the real property, interests and rights,as further
described in this Mortgage.
Related Documents. The words "Related Documents" mean all promissory notes, credit
agreements, loan agreements, environmental agreements, guaranties, mortgages, deeds of trust,
collateral mortgages and Redevelopment Agreement executed by the Parties on or about April 6,
2021, and all other instruments, agreements and documents, whether now or hereafter existing,
executed in connection with the Indebtedness.
8
MORTGAGE(cont'd)
GRANTOR ACKNOWLEDGES HAVING REAL ALL THE PROVISIONS OF THIS
MORTGAGE,AND GRANTOR AGREES TO ITS TERMS.
GRANTOR:
Jed Rhoades,
,
.rick
• ' oades
i
INDIVIDUAL ACKNOWLEDGMENT
STATE OF ILLINOIS )
) SS.
COUNTY OF FULTON )
On this day before me, the undersigned Notary Public, personally appeared Jed Rhoades, to me
known to be the individuals described in and who executed the Mortgage,and acknowledged that he signed
the Mortgage as his free and voluntary act and deed, for the uses and purposes therein mentioned.
Given under my hand and official seal this / day of � �2 ,2021.
By (1._r j KAK9Q� Residing atA . I .v _,4, - _
LCL , 4
Notary Public in and for the State of Illinois.
My commission expires ft PI'A:d--- . OFFICIAL SEAL
CAROL E KOHLER
NOTARY PUBLIC-STATE OF ILLINOIS
MY COMMISSION EXPIRES:10102122
9