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HomeMy WebLinkAboutOrdinance#4240 ORDINANCE NO. tC' CITY OF CANTON, FULTON COUNTY, ILLINOIS CANTON DOWNTOWN/5TH AVENUE TAX INCREMENT FINANCING DISTRICT 1 AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A TAX INCREMENT FINANCING (TIE) DISTRICT REDEVELOPMENT AGREEMENT by and between THE CITY OF CANTON and KOSOWSKI & BARTON HOLDING, LLC and GABRIEL BARTON and MANDY KOSOWSKI ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS ON THE 15TH DAY OF JUNE, 2021. ORDINANCE NO. CITY OF CANTON, FULTON COUNTY, ILLINOIS CANTON DOWNTOWN/5TH AVENUE TAX INCREMENT FINANCING DISTRICT 1 AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A TAX INCREMENT FINANCING (TIF) DISTRICT REDEVELOPMENT AGREEMENT by and between THE CITY OF CANTON and KOSOWKSI & BARTON HOLDING, LLC and GABRIEL BARTON and MANDY KOSOWKKI The Mayor and City Council of the City of Canton, Fulton County, Illinois, an Illinois municipality (the "City"), have determined that this TIF Redevelopment Agreement is in the best interest of the citizens of the City of Canton. THEREFORE, be it ordained by the Mayor and City Council of Canton, Illinois, in the County of Fulton, as follows: 1. The TIF Redevelopment Agreement with Kosowski & Barton Holding, LLC, an Illinois Limited Liability Company, Gabriel Barton, and Mandy Kosowski (collectively the "Developer") attached hereto as Exhibit "A"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 15`h day of June, 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.) 2 PASSED APPROVED AND ADOPTED by the Mayor and City Council of the City of Canton this 15`' day of June, 2021. MAYOR AND AYE VOTE NAY VOTE ABSTAIN ABSENT CITY COUNCIL Angie Lingenfelter Andra Chamberlin Jeff Fritz Craig West X� gr<r Qtrivhew GdSSe-it Justin Nelson John Lovell 1� Angela Hale 7e Kent McDowell,Mayor TOTALS APPROVED: V v"" �� , Date (/. / / / 2021 M yor, City of Canton 0/ATTEST: , Date: (..,/ I / 2021 City Clerk, City of Canton EXHIBIT "A" (Attached): Redevelopment Agreement by and between the City of Canton and Kosowski&Barton Holding,LLC. 3 EXHIBIT A CANTON DOWNTOWN/5TH AVENUE TAX INCREMENT FINANCING DISTRICT 1 AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A TAX INCREMENT FINANCING (TIF) DISTRICT REDEVELOPMENT AGREEMENT by and between THE CITY OF CANTON and KOSOWSKI & BARTON HOLDING, LLC and GABRIEL BARTON and MANDY KOSOWSKI 4 CANTON 1 - DOWNTOWN / 5TH AVENUE TAX INCREMENT FINANCING DISTRICT REDEVELOPMENT AGREEMENT by and between CITY OF CANTON, FULTON COUNTY, ILLINOIS and KOSOWSKI & BARTON HOLDING, LLC and GABRIEL BARTON and MANDY KOSOWSKI JUNE 15, 2021 CANTON 1 - DOWNTOWN / 5TH AVENUE TIF DISTRICT REDEVELOPMENT AGREEMENT by and between CITY OF CANTON and KOSOWSKI & BARTON HOLDING, LLC and GABRIEL BARTON and MANDY KOSOWSKI THIS REDEVELOPMENT AGREEMENT (including Exhibits) is entered into this 15th day of June,2021,by and between the City of Canton (the "City"), an Illinois Municipal Corporation, Fulton Counties, Illinois, and Kosowski & Barton Holding, LLC, an Illinois Limited Liability Company, and Gabriel Barton, and Mandy Kosowski (collectively 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 costs from resulting increases in real estate tax revenues ("real estate tax increment") or from other City 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 obsolete or a combination thereof, the City approved a Tax Increment Financing Redevelopment Plan and Projects, designated a Redevelopment Area and adopted Tax Increment Financing as provided under the Act for the Canton International Harvester Site Project Area TIF District (currently known as the "Canton TIF 1 - Downtown / 5th Avenue TIF District) (hereinafter referred to as the "TIF District"); and WHEREAS, on November 22, 2011 the City approved the first amendment to the TIF District Redevelopment Project Redevelopment Plan,Area and Projects by Ordinance No. 2052;and WHEREAS, on February 6, 2012 the City approved the second amendment to the TIF District Redevelopment Plan,Area and Projects by Ordinance No. 2071; and Canton Downtown/5'h Ave. TIF District 1 RedevelopmentAgreenrent between City of Canton and Kosowski&Barton Holding,LLC 2 WHEREAS, on April 5, 2017 the City approved the third amendment to the TIF District Redevelopment Plan,Area and Projects by Ordinance No. 4068, 4069, and 4070; and WHEREAS, one such property is located at 54 N. Main St., Canton, Illinois (P.I.N. 09- 08-27-412-010) and is within the TIF District Redevelopment Project Area (the "Property"); and WHEREAS, the Developer has plans to acquire the Property and redevelop the site for two businesses (i.e., Georgia Rae's Boutique and Barton Payroll & Tax) to be located thereon (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 base of the City,which increased incremental taxes will be used,in part, to finance incentives to assist development within the Tax Increment Financing District; and WHEREAS, the Developer's proposed Project is consistent with the TIF District Redevelopment Plan and Projects for the Redevelopment Project Area 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 5/11-74.4-4(j) of the Act, the City may incur project redevelopment costs and reimburse developers who incur 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 Exhibit "1" 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 within the TIF District 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 Plan,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 of the City; and WHEREAS, the Parties have agreed that the City shall reimburse the Developer an amount not to exceed Forty Thousand and 00/100 Dollars ($40,000.00) as set forth below from the TIF Canton Downtown/5'h Ave. TIF District 1 Redevelopment Agreement between City of Canton and Kosowski&Barton Holding,LLC 3 District Special Tax Allocation Fund for reimbursement of a portion of the Developer's TIF Eligible Project Costs as described in Exhibit "1"attached hereto; and WHEREAS, in consideration of the execution of this Agreement, the Developer is completing the Project as set forth in Exhibit "1';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 Parties have agreed that all reimbursements payable by the City to the Developer for TIF Eligible Project Costs during the term of this Agreement (whether such costs are incurred by Kosowski &Barton Holding, LLC, Gabriel Barton, or Mandy Kosowski shall be paid to the order of Kosowski & Barton Holding, LLC unless otherwise directed in writing to the City by the Developer or assigned pursuant to Section Nas herein provided. 4. The Developer shall complete the Project within twelve (12) months from the date this Agreement is executed, subject to extension due to Force Majeure (defined below). The completed Project shall comply with all City ordinances and building codes. The Project will be deemed complete when improvements for Georgia Rae's Boutique and Barton Payroll & Tax located on the Property are complete and both businesses are open and operating. 5. The Developer shall maintain adequate property and casualty insurance on the Property during the term of this Agreement to cover the replacement cost of the completed Project 6. 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 the 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. Canton Downtown/5'Ave. TIF District iRedevelopment Agreement between Cite of Canton and Kosowski&Barton Holding,LLC 4 C. INCENTIVES In consideration for the Developer 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. TIF Loan: In exchange for a promissory note to be issued by the Developer to the City as set forth in Exhibit "2"attached hereto, the City agrees to loan to the Developer (also, the "Borrower") the sum of Twenty-five Thousand and 00/100 Dollars ($25,000.00) 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 Twenty-five Thousand and 00/100 Dollars ($25,000.00) 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$25,000.00 of TIF Eligible Project Costs pursuant to Section Ebelow, 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 five (5) years from the date the loan funds are disbursed to the Developer hereunder. d. One-Fifth (1/5) 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: i. The Developer continues to operate both the Georgia Rae's Boutique and the Barton Payroll and Tax businesses on the Property 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 "3') granted by the Developer and in favor of the City, which shall be filed with the Fulton Canton Downtown/5 h Ave. TIF District 1 Redevelopment Agreement between City of Canton and Kosowski&Barton Holding,LLC 5 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. 2. Additional Reimbursement: In addition to the TIF Loan described in Section C(1), the City shall reimburse the Developer for other TIF Eligible Project Costs as set forth in Exhibit "1"attached hereto, and verified pursuant to Section E below, from the City's TIF District Special Tax Allocation Fund an amount not to exceed Fifteen Thousand and 00/100 Dollars ($15,000.00), payable in five (5) annual installments as follows: a. Provided the Developer timely completes the Project, the City shall reimburse the Developer the sum of Three Thousand and 00/100 Dollars ($3,000.00)within sixty (60) days of the first one (1) year anniversary of the execution of this Agreement and then shall continue to reimburse the Developer for TIF Eligible Project Costs the sum of Three Thousand and 00/100 Dollars ($3,000.00) per year on or before the annual anniversary of the execution of this Agreement each year thereafter for four (4) additional years. The final reimbursement installment as relates to this Section C(2) shall occur in year 2026. 3. In no event shall the total cumulative reimbursements made by the City to the Developer pursuant to Sections C(1)and C(2)hereunder exceed Forty Thousand and 00/100 Dollars ($40,000.00). 4. In the event the Developer fails to timely complete the Project as set forth herein, absent extensions due to Force Majeure as defined below, any reimbursements which remain due to the Developer hereunder shall cease and the Developer shall return any reimbursements received by it hereunder within thirty(30) days upon receiving written notice of the same from the City. 5. In the event the Developer sells or otherwise conveys the Property during the term of this Agreement any reimbursements which remain due the Developer hereunder shall cease. 6. Once the Project is complete,in the event: (1) Georgia Rae's Boutique located on the Property no longer maintains its consistent and customary use; (2) Barton Payroll&Tax located on the Property no longer maintains its consistent and customary use; (3) the Developer files for bankruptcy;or (4) the Property is the subject of a foreclosure proceeding,the Developer shall not be entitled to any further reimbursements hereunder. 7. In the event the Developer files any challenge, appeal or other similar action which seeks to reduce the equalized assessed value of the Property during the Term of this Agreement, any reimbursements which remain due the Developer hereunder shall cease. Canton Downtown/5th Ave. TIF District i Redevelopment Agreement between City of Canton and Kosowski&Barton Holding LLC 6 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 above exceed Forty Thousand and 00/100 Dollars ($40,000.00) as set forth herein. 2. The Developer agrees to substantially complete the project, subject to Force Majeure, as defined below. 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 (Exhibit "4'; "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 subject to the Administrator's approval of the costs and to the availability of funds in the TIF District Special Tax Allocation Fund. 2. All Requisitions must be accompanied by verified bills or statements of suppliers, contractors, or professionals together with mechanic's lien waivers (whether partial or full) from each of the parties entitled to a payment that is the subject of the Requisition as required by the City. 3. In order for the Developer to receive reimbursement of Eligible Project Costs for costs it has incurred in any year as set forth in Paragraphs 1 and2above,the Developer must submit such proposed eligible costs to the City by March 1 of the following 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 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 Plan pursuant to the Act. 5. The Developer shall use such sums as reimbursement for Eligible Project Costs only to the extent permitted by law and the Act and may allocate such funds for any purpose for the term of this Agreement or the term of the TIF District,whichever is longer. 6. 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. Canton Downtown/5/b Ave. TIF District 1 RedevelopmentAgreement between City of Canton and Kosowski&Barton Holding LLC 7 7. All TIF Eligible Project Costs approved shall then be paid by the City from the TIF District Special Tax Allocation Fund to the Developer, or to others as directed by the Developer, pursuant to the Redevelopment Plan and as allowed by Illinois Law. 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. 8. The Parties acknowledge that the determination of 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. 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 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 any City fund or require the City to utilize its taxing authority to fulfill the terms of this Agreement. 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 Developer's Project. I. 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 Canton Downtown/5h Ave. TIF District 1 Redevelopment Agreement between City of Canton and Kosowski&Barton Holding,LLC 8 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 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. J. 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"), 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 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. K. TIME; FORCE MAJEURE For this Agreement, time is of the essence. The Developer agrees to complete the Project within twelve (12) months following the date of execution of this Agreement. Failure to do so shall be cause 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 Canton Downtown/5 h Ave. TIP'District 1 Redevelopment Agreement between City of Canton and Kosowski&Barton Holding LLC 9 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 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 (including, but not limited to, the right to payments contemplated by Section Cof this Agreement) and obligations (or either of them) of the Developer under this Agreement shall not be assignable unless by written authorization of the City. 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, 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. (The remainder of this page is intentionally blank) Canton 17owntown/5`h Ave. TIP District 1 RedevelopmentAgreement between City of Canton and Kosowski&Barton Holding,LLC 10 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 (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 of Canton Kosowski &Barton Holding, LLC % City Clerk % Gabriel Barton, President 2 N. Main Street 3522 S. Downs School Rd. Canton, IL 61520 Farmington,IL 61531 Telephone: (309) 647-0020 Telephone: (309) 299-8125 Email: gbarton97@yahoo.com With copy to: With copy to: Jacob & Klein,Ltd. Mr. Gabriel Barton The Economic Development Group,Ltd. 3522 S. Downs School Rd. 1701 Clearwater Avenue Farmington, IL 61531 Bloomington, IL 61704 Telephone: (309) 299-8125 Telephone: (309) 664-7777 Email: gbarton97@yahoo.com Fax: (309) 664-7878 Ms. Mandy Kosowski P. SUCCESSORS IN INTEREST Subject to the provisions of Section L,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. Canton Downtown/S`h Ave. TIF District 1 Redevelopment Agreement between City of Canton and Kosowski&Barton Holding,LLC 11 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 private developers as reimbursement for private TIF Eligible Project Costs. This position of the Illinois Department of Labor is stated as an answer to a FAQ on its website at: http://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. 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. 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. _ U. 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. V. TERM OF THE AGREEMENT Notwithstanding anything contained herein to the contrary, this Agreement shall expire on the date that is six years from the date the Project is complete as set forth 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. W. 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. Canton Downtown/5th Ave. TIP District l RedevelopmentAgreement between City of Canton and Kosowski&Barton Holding,I.T.0 12 EACH PARTY ACKNOWLEDGES THAT, IN EXECUTING THIS AGREEMENT, SUCH PARTY HAS HAD THE OPPORTUNITY TO SEEK THE ADVICE OF INDEPENDENT LEGAL COUNSEL AND HAS READ AND UNDERSTOOD ALL OF THE TERMS AND PROVISIONS OF THIS AGREEMENT. THIS AGREEMENT SHALL NOT BE CONSTRUED AGAINST ANY PARTY BY REASON OF THE DRAFTING OR PREPARATION HEREOF AND THE SIGNATORIES OF THE PARTIES HEREBY WARRANT FULL AUTHORITY TO BOTH EXECUTE THIS AGREEMENT AND TO BIND THE ENTITY IN WHICH THEY ARE SIGNING ON BEHALF OF. 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 KOSOWSKI & BARTON HOLDING, Municipal Corporation. LLC, an Illinois Limited Liability Company. BY: BY: 4A 04) 00-i° Mayor, City of Canton President ATTEST: GABRIEL BARTON City Clerk, City of Canton MANDY KOSOWSKI Attachments: 1. Exhibit 1. Summary of Estimated TIF Eligible Project Costs. 2. Promissory Note. 3. Mortgage. 4. Private Project Request Form for Verification of TIF Eligible Project Costs. Canton Downtown/S`b Ave. TIF District 1 RedevelopnrentAgreement between City of Canton and Kosowski&Barton Holding,LLC 13 EXHIBIT 1 SUMMARY OF ESTIMATED TIF ELIGIBLE PROJECT COSTS KOSOWSKI &BARTON HOLDING,LLC-GABRIEL BARTON-MANDY KOSOWSKI PROJECT Canton Downtown/5th Ave.TIF District 1 in the City of Canton,Fulton County,Illinois Project Description: Developer shall acquire the Property and redevelop the site for two businesses (i.e., Georgia Rae's Boutique and Barton Payroll&Tax) to be located on the Property. Property: PIN: 09-08-27-412-010 located at 54 N.Main St.,Canton,Illinois Estimated TIE Eligible Project Costs: Land&Building Acquisition $53,000.00 Professional Costs (Legal fees) $2,500.00 Rehabilitation and Renovation (Existing Building) $134,250.00 Total Estimated TIE Eligible Project Costs1 $189,750.00 1 The total, cumulative reimbursement of real estate tax increment for TIF Eligible Project Costs payable by the City to the Developer shall not exceed$40,000.00,as set forth in this Redevelopment Agreement. The line items set forth in this Exhibit"Fare not intended to place a total limit on the described expenditures or intended to preclude payment of other TIF eligible redevelopment project costs in connection with the Developer's Project, provided the total amount of payment for all eligible redevelopment project costs,public and private,shall not exceed the total amount set forth herein. Adjustments may be made to the designated and anticipated line items within the total, either increasing or decreasing verified line-item costs for the Redevelopment Project. Canton Downtown/5th Ave. TIF District 9RedevelopmentAgreement between City of Canton and Kosowski&Barton Holding,LLC 14 Furthermore,in the event of such Default or breach,Borrower promises to reimburse Lender for all collection and/or litigation costs incurred by the City, including reasonable attorney fees and court costs, whether judgment is rendered or not. As a signatories to this Note, Kosowski & Barton Holding, LLC, Gabriel Barton, and Mandy Kosowski shall be jointly and severally liable for the payment of this Note in the event of a default hereof. This Promissory Note has been entered into and shall be performed in the City of Canton, Fulton County,Illinois,and shall be construed in accordance with the laws of Illinois and any applicable federal statutes or regulations of the United States. Any claims or disputes concerning this Note shall, at the sole election of the Lender,be adjudicated in Fulton County,Illinois. LENDER: BORROWER: CITY OF CANTON, ILLINOIS,an Illinois KOSOWSKI &BARTON HOLDING, LLC, Municipal Corporation an Illinois Limited Liability Company BY: BY: AL? M.yor, City of Canton President ATT GABRIEL BARTON 4 City Clerk, ity of Canton , • MANDY KOSOWSKI Canton Downtown/5th Ave. TIF District 1 Redevelopment Agreement between City of Canton and Kosowski&Barton Holding,LLC 16 EXHIBIT 2 PROMISSORY NOTE FOR VALUE RECEIVED, Kosowski & Barton Holding, LLC, Gabriel Barton, and Mandy Kosowsld(collectively the"Borrower"),promises to pay the City of Canton,Fulton County,Illinois,an Illinois Municipal Corporation ("Lender") the principal sum of up to Twenty-five Thousand Dollars ($25,000.00) with interest accruing on the unpaid principal at the rate of three percent (3%) per annum. The aforementioned principal sum represents monies loaned by the Lender to the Borrower for the reimbursement of Borrower's TIF Eligible Project Costs, specifically redevelopment project costs, incurred as a result of a Redevelopment Project located at 54 N. Main Street, Canton, Illinois (the "Property"), within the Redevelopment Project Area and that is the subject of a Tax Increment Financing District Redevelopment Agreement between the City of Canton and K&B Holding, LLC (the "Redevelopment Agreement") entered into the 18th day of May,2021. The term of this Promissory Note shall commence on the date the reimbursements provided for in Section C(1)of the Redevelopment Agreement are disbursed to the Borrower and end on the date that is five (5) years from the date of such disbursement. Provided that the Borrower is at all times in compliance with the Redevelopment Agreement and this Promissory Note, One-Fifth (1/5) of the principal balance of up to $25,000.00, plus any accrued interest thereon, shall be forgiven by the Lender each year during the term of this Promissory Note,with the first date of forgiveness being the date that is one (1) year from the date of the disbursement set forth in Section C(1) of the Redevelopment Agreement and continuing on said date of each year thereafter for the term of this Promissory Note. Provided that the Borrower does not Default or otherwise breach this Promissory Note or the Redevelopment Agreement, the full principal amount of this Promissory Note, plus any accrued interest thereon, shall be forgiven on the expiration of this Promissory Note. The Borrower shall be deemed in Default of this Promissory Note,if the Borrower: 1. Fails to maintain constant and continuous operation of both the Georgia Rae's Boutique and the Barton Payroll and Tax businesses located on the Property for the Term of the Promissory Note; 2. Sells or otherwise conveys the subject Property during the term of this Promissory Note; 3. Files for bankruptcy or otherwise becomes insolvent during the term of this Promissory Note; 4. Fails to provide annual verification that the ad valorem real estate taxes for the subject Property have been paid; 5. If the Property becomes the subject of foreclosure proceedings. 6. If the Borrower fails to carry adequate insurance on the Property to cover the replacement cost of the completed Project. 7. Or upon any other default by the Developer of the Redevelopment Agreement or this Note. In the event the Borrower is in Default under the terms of this Promissory Note or the Redevelopment Agreement and does not cure said default or breach on or before the thirtieth (30th) day after Lender gives Borrower written notice of Default thereof by personal delivery or certified mailing, the outstanding principal amount,plus any accrued interest thereon,is immediately due to the Lender and the Lender shall be entitled to all remedies permitted by law. Notice shall be deemed given on the date of personal delivery or date of mailing, whichever applies. No delay or failure in giving notice of said Default or breach shall constitute a waiver of the right of the Lender to exercise said right in the event of a subsequent or continuing Default or breach. Canton Downtown/5`e Ave. TIF District 1 RedevelopmentAgreement between Ci y of Canton and Kosowski&Barton Holding i.T.0 15 EXHIBIT 3 MORTGAGE Canton Downtown/5 h Ave. TIP'District l RedevelopmentAgreement between City of Canton and Kosowski&Barton Holding,LLC 17 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 , 2021, is made and executed between , whose address is , 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-five Thousand Dollars and No Cents($25,000.00) as evidenced by the Redevelopment Agreement, and Promissory Note attached thereto, executed by Grantor and Lender on June 15,2021 (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 54 N. Main Street, Canton, Illinois (the "Real Property"), PIN: 09-08-27-412-010. THIS MORTGAGE IS GIVEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS AND (B) PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE REDEVELOPENT AGREEMENT, THE PROMISSORY NOTE ATTACHED THERETO, 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 requiroGrantor 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. 2 MORTGAGE (cont'd) • 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. 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 the Promissory Note attached thereto) and be apportioned among and be payable with any installment payments to become due during either(I) 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 he 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 ofa 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 arc a part of this Mortgage: 3 MORTGAGE (cont'd) 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 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 (I) 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 clue, 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. 4 MORTGAGE (cont'd) 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. 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 (and the Promissory Note attached thereto)executed on May 18,202I,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. 5 MORTGAGE (cont'd) 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. 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. ff 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 for 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: 6 MORTGAGE (cont'd) 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. 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) l"Mortgage on the Real Property held by the primary lender for the Borrower's project located ,thereon, upon request of the Borrower. 7 MORTGAGE(cont'd) DEFINITIONS. The following words shall have the following meanings when used in this Mortgage: Borrower. The word "Borrower" means and all his successors and assigns. 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 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 (and the Promissory Note attached thereto)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 and the Promissory Note attached thereto executed by the Parties on June 15, 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 June 15, 2021, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness. 8 MORTGAGE (coned) GRANTOR ACKNOWLEDGES HAVING REAL ALL THE PROVISIONS OF' THIS MORTGAGE, AND GRANTOR AGREES TO ITS TERMS. GRANTOR: 2 ti j 1 1 I i f IJ j�l�� 1 i,� 1"1, � �_ / l/J!/ am���l�i BY: President, a•&.b2 Date 9 MORTGAGE (cont'd) INDIVIDUAL ACKNOWLEDGMENT STATE OF ILLINOIS ) ) SS. COUNTY OF FULTON ) Ott) this d• before me, the undersigned Notary Public, personally appeared d' , vV C/( ,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 unde,• •nd d official seal this !3 day of L-C h , 2021. By X 1 Residing at ,a AG Up'rk tee Y Notary Public in and for the State of Illinois. My commission expires _ OFFICIAL SEAL DIANA PAVLEY ROCK • NOTARY PUBLIC-STATE OF ILLINOIS MY COMMISSION EXPIRES:02/28/22 • • • 13