HomeMy WebLinkAboutOrdinance #4292 ORDINANCE NO. 4292
ORDINANCE AUTHORIZING A LEASE OF MUNICIPALLY
OWNED REAL PROPERTY LOCATED ON OR ABOUT
N. DAL BAR ROAD, CANTON,ILLINOIS
WHEREAS, the City of Canton owns the following described real property:
Part of the Northeast Quarter of Section 30, Township 7 North, Range 5 East of the
Fourth Principal Meridian, more particularly described as follows:
Beginning at an iron rod at the southeast corner of Lot 20 in Old Beach Addition, as
shown on Plat of Survey recorded November 7, 2017 as Document No. 1778527 in Slide
539, thence South 05 degrees 36 minutes 57 seconds West (bearings based on Illinois
State Plane Coordinate System, NAD83 (2011), West Zone) 166.29 feet to a fence post;
thence North 88 degrees 10 minutes 25 seconds West 132.72 feet to an iron rod; thence
North 01 degrees 09 minutes 00 seconds East 128.37 feet to an iron rod at the southwest
corner of said Lot 20; thence North 77 degrees 19 minutes 27 seconds East along the
southerly line of said Lot 20 a distance of 150.00 feet to the Point of Beginning.
The above described tract contains 20,359 square feet, more or less, or 0.467 acres, more
or less.
WHEREAS, the corporate authorities of the City of Canton has determined that the best
interests of the City of Canton and its residents will be served by the approval of the lease,
substantially in the form as attached hereto as "Exhibit A" for the use and purposes set forth
therein.
NOW, THEREFORE,BE IT ORDAINED by the City Council of the City of Canton,
Fulton County, Illinois, as follows:
1. The City Council finds as facts the recitals hereinabove set forth.
2. The Lease to the John W. and Gloria D. Davis Land Trust Number 1, dated
August 26, 2010, (attached hereto as "Exhibit A") is hereby approved by the City Council of the
City of Canton for the lease of the following described real estate:
Part of the Northeast Quarter of Section 30, Township 7 North, Range 5 East of the
Fourth Principal Meridian, more particularly described as follows:
Beginning at an iron rod at the southeast corner of Lot 20 in Old Beach Addition, as
shown on Plat of Survey recorded November 7, 2017 as Document No. 1778527 in Slide
539, thence South 05 degrees 36 minutes 57 seconds West (bearings based on Illinois
State Plane Coordinate System,NAD83 (2011), West Zone) 166.29 feet to a fence post;
thence North 88 degrees 10 minutes 25 seconds West 132.72 feet to an iron rod; thence
North 01 degrees 09 minutes 00 seconds East 128.37 feet to an iron rod at the southwest
corner of said Lot 20; thence North 77 degrees 19 minutes 27 seconds East along the
southerly line of said Lot 20 a distance of 150.00 feet to the Point of Beginning.
The above described tract contains 20,359 square feet, more or less, or 0.467 acres, more
or less.
3. Upon closing of the sale of real estate located adjacent to the above-described real
property from the City to the John W. and Gloria D. Davis Land Trust Number 1, dated August
26, 2010, the Mayor is hereby authorized and directed to sign and the City Clerk is hereby
authorized and directed to attest to a lease of the aforesaid real estate, and said lease shall be
substantially in the form attached hereto as "Exhibit A." The Mayor and/or City Attorney are
authorized to make reasonable, final revisions, as they deems necessary, to the Lease that are
otherwise consistent with this Ordinance. In the event the sale transaction to the John W. and
Gloria D. Davis Land Trust Number 1, dated August 26;2010, pursuant to Ordinance No. ,
is terminated prior to closing, then this Ordinance shall be deemed null, void, and of no further
effect and the Mayor shall not execute the lease.
4. The Mayor and the Clerk are hereby authorized, respectively, to execute and attest
such other documents as may be necessary to the conveyance herein authorized.
5. This ordinance shall be in full force and effect from and after its passage, by a
vote of at least three fourths of the corporate authorities now holding office, and approval in the
manner provided by law.
PASSED THIS 7th DAY OF JUNE, 2022.
AYES: Alderperson Justin Nelson, Craig West, Angela Hale, Jeff Fritz, Angela
Lingenfelter, Greg Gossett
NAYES: None
ABSENT: Alderperson Andra Chamberlin, John Lovell
APPROVED THIS 7th DAY OF JUNE, 2022.
APPROVE
4entAANIcDo—well.,
ayor
ATTE
Diana Pav ey-Rock, City e .
LEASE AGREEMENT
This Lease Agreement ("Lease") dated this day of July, 2022 ("Effective Date"),
by and between the City of Canton, an Illinois municipal corporation(the"Landlord" or"City"),
and the John W. and Gloria D. Davis Land Trust Number 1, dated August 26, 2010 (the "Land
Trust")
BACKGROUND
A. Landlord is a non-home rule municipal corporation in the State of Illinois governed
by the Corporate Authorities of the City of Canton,which includes its City Council and Mayor, as
may be referred to herein from time-to-time;
B. Landlord is the owner of real property in Fulton County, Illinois that is described
on Exhibit"A" (hereinafter referred to as the "Premises");
C. The Land Trust intends to assign this Lease within the sooner of(i) twelve (12)
months of the Effective Date or(ii) a sale or transfer of any portion of the Premises from the Land
Trust to a third party to a homeowner's association formed pursuant to the Illinois General Not
For Profit Corporation Act of 1986, as amended (805 ILCS 1051101.01 et seq.) (the
"Association") whose initial members are John W. and Gloria D. Davis;
D. "Tenant" as used hereinafter shall include the Land Trust and/or the Association,
as applicable.
E. Tenant is or will soon be the owner of real property ("Tenant's Property") located
adjacently North of the Premises;
F. Tenant desires to lease the Premises together with all improvements and fixtures
thereon and appurtenances thereto from Landlord pursuant to the terms of this Lease; and
G. Landlord desires to lease the Premises together with all improvements and fixtures
thereon and appurtenances thereto to Tenant.
AGREEMENT
In consideration of the foregoing and the terms, covenants and conditions contained in this
Lease, Landlord and Tenant expressly agree as follows:
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1. Rent. For the Initial Lease Term, upon execution of this Lease, Tenant shall pay
to Landlord rent ("Rent") in the amount of One Hundred and no/100 Dollars ($100.00) per year.
All Rent shall be paid, in advance, in lawful money of the United States, on or before January 1
each year,without any prior demand therefor,to Landlord at the address described in Section 22(e)
or such place as Landlord may designate in writing from time to time. Rent for any partial year
shall be prorated based on the actual number of days in the partial year and paid in advance at the
commencement of the partial year period (as the applicable case may be).
2. Term. The term "Lease Tenn" shall mean the term of this Lease, which shall
commence on the Effective Date and continue until July , 2023, unless this Lease is sooner
terminated according to its terms or by mutual written agreement.
3. Possession. Tenant shall be given possession of the Premises on the Effective Date.
4. Use Of Premises.
(a) Tenant's possession of and use of the Premises shall be limited to utilizing the
Premises for ingress/egress to other property leased and/or owned by Tenant and for purposes of
developing the real property located adjacently North of the Premises which Tenant will be
developing for residential purposes.
(b) No commercial or business use of the Premises shall be permitted without a
duly adopted resolution or ordinance by Landlord's Corporate Authorities.
(c) No residences, garages, sheds, docks, outbuildings, gazebos, or other structures
may be built or placed upon the Premises except as otherwise set forth in this Lease or as may be
permitted by a duly adopted resolution or ordinance of Landlord's Corporate Authorities from
time-to-time.
(d) Tenant and its members shall obey all rules,regulations, and ordinances of the City
pertaining to Premises,the lake and surrounding lands and shall not allow violations by Tenant or
its members families, guests or any other persons on the Premises.
(e) Tenant shall not permit on or near the Premises anything in violation of any law,
regulation, rule or ordinance— State, Federal, or local—or the regulations of any public authority,
nor use or permit the premises to be used for any immoral or illegal purposes.
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(f) Tenant shall not cause nor permit any objectionable noise or odor to be emitted
from the Leased Property; nor will Tenant keep on the Leased Property any domestic livestock,
poultry, or noisy or dangerous dog.
(g) Tenant shall not do nor permit anything to be done or remain on the Leased Property
or in or on the lake in any way tending to pollute the waters or to create a nuisance or disturb the
peace or quiet of the neighborhood or annoy any occupant of neighboring properties.
(h) Tenant represents and covenants that no environmentally harmful or toxic materials
or dangerous or hazardous substances, or volatile or explosive materials, or other hazardous
substances as that term may be defined by any governmental agency with jurisdiction(collectively
"Hazardous Substances") will be used or stored by Tenant on the Premises. Tenant shall fully
indemnify and hold harmless Landlord from all costs and expenses, including reasonable
attorneys' fees, that Landlord may incur as a result of the presence of, release of, or threatened
release of Hazardous Substances on the Premises because of any activity, or act or omission, of
Tenant, its agents, employees, or invitees during the period described in this paragraph. Landlord
represents and warrants that, to the best of Landlord's knowledge, there are no Hazardous
Substances on the Premises as of the Effective Date. Landlord shall fully indemnify and hold
harmless Tenant from all costs and expenses, including reasonable attorneys' fees, that Tenant
may incur as a result of the presence of, release of, or threatened release of Hazardous Substances
on the Premises because of any activity, or act or omission, of Landlord, its agents or employees,
or invitees during the period described in this paragraph.
(i) Representatives of the City may come upon the Premises as follows:
i. At any and all times for the purpose of inspecting;
ii. At any time to gain needed access to other land;
iii. To plant and care for trees and other vegetation.
iv. To construct, operate and maintain sewer, water and gas pipes, electrical lines
pipes and lines for other services and their appurtenances;
V. To improve and protect the shoreline;
vi. To do any other work necessary to maintain the lake or its structures; or
vii. For any other purpose to the extent that such use does not unreasonably interfere
with the use of the Premises by Tenant or Tenant's invitees and agents.
(j) The City is hereby released and held harmless from any and all damages, costs,
expenses, liabilities, causes of action, or suits arising from or related to the exercising of any of its
rights under this Section, including but not limited to the entering upon the Premises for any of the
above reasons.
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5. Condition Of Premises. Tenant acknowledges personal inspection and
examination of the Premises and all parts thereof, and Tenant accepts the Premises in its existing
condition.
6. Real Estate Taxes. During the Lease Term,Tenant shall be responsible for all real
estate taxes and assessments for the Premises. Failure to timely pay any real estate taxes and
assessments after the Effective Date of this Lease shall be deemed a default of this Lease.
7. Utilities: No utilities shall be installed on the Premises without the written consent
of the Mayor or his/her designee. To the extent utilities are permitted, Tenant shall be solely
responsible for and pay all charges for water, garbage removal, electricity, telephone, cable,
satellite/tv, internet, fiber, gas, wastewater treatment and/or disposal, or other service for the
Leased Property (collectively "utilities"). Failure to pay such utilities shall be deemed a default of
this Lease. Tenant shall also be responsible for the installation,maintenance,removal and/or repair
of any water lines, sewer lines, wastewater treatment and/or disposal, private sewage disposal
systems, electricity/power lines, internet/telephone/tv connections, fiber lines, gas lines, or other
utility connections located upon the Premises.
8. Encumbrances/Liens. Tenant shall not mortgage or otherwise cause or allow any
liens or encumbrances to be recorded or filed against the Premises,or the leasehold interest granted
by this Lease, at any time. Failure to comply with this Paragraph shall be deemed a default of this
Lease and grounds for immediate termination upon written notice by Landlord.
9. Insurance. During the Lease Term:
a. Tenant shall procure, pay for and keep in force and effect the following:
(comprehensive general liability insurance (including a blanket "contractual" liability
endorsement and coverage on operations of independent contractors) insuring against liability for
personal injury, bodily injury, death and damage to property occurring in or about, or resulting
from an occurrence in or about, the Premises with combined single limit coverage of not less than
Two Million Dollars($2,000,000) on account of bodily injuries to or the death of any one or more
persons as a result of any occurrence and Five Hundred Thousand Dollars ($500,000) coverage
for property damage.
b. All policies of insurance required to be carried by Tenant pursuant to this Section
8: (i) shall name Landlord and such other parties in interest as Landlord designates as additional
insureds; (ii) shall be primary insurance which provides that the insurer shall be liable for the full
amount of the loss up to and including the total amount of liability set forth in the declarations
without the right of contribution from any other insurance coverage of Landlord; (iii) shall be
written by companies authorized to do business in the State of Illinois, shall be rated A- or better
by Best's Insurance Rating System, or its equivalent and shall contain a deductible not exceeding
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Ten Thousand Dollars ($10,000); and (iv) shall provide that such policy shall not be subject to
cancellation, lapse or change except after at least ten (10) days prior written notice to Landlord.
C. A certificate of the insurer, certifying that such policy has been issued, providing
the coverage required by this paragraph, and containing the provisions specified herein, shall be
delivered to Landlord prior to or on the Effective Date and upon renewal of such policies, but not
less than thirty (30) days prior to the expiration of the term for such coverage.
d. Tenant shall obtain whatever contents insurance Tenant deems desirable, it being
acknowledged by Tenant that Landlord has no obligation to Tenant for any damages to any of
Tenant's personal property in or on the Premises.
10. Maintenance and Repair of the Premises.
(a) Tenant will maintain the Premises during the Lease Term, in its present condition
except as otherwise stated in this Lease.
(b) Tenant shall keep the Leased Property neat and clean and free from noxious weeds
and debris.
(c) Tenant shall not permit any of the Premises to be denuded of vegetation or to be
cultivated in such manner as to cause or permit soil erosion. Further, Tenant agrees to maintain
the shoreline in good condition and must take reasonable and legal steps to protect the lake from
pollution, undue erosion, and other injury.
(d) Tenant shall care for and protect from injury all shade and ornamental trees,
shrubbery,and sod,and may remove undergrowth and noxious weeds from the Premises;however,
Tenant shall not remove, trim, or permit the removal or trimming of any trees more than three
inches in diameter without the consent of the City (which may be granted by the Mayor or his/her
designee). Notwithstanding the foregoing, Tenant intends to do an initial sweep of shrubs, trees,
undergrowth and noxious weeds, which the City agrees to permit subject to approval of the
removal of said items by the City Engineer;
(e) Tenant shall not allow yard waste including grass clippings, leaves or like material
to enter the lake from the Premises
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(f) Tenant shall not use herbicides nor insecticides near the water of the lake nor
anywhere rain may wash these chemicals into the lake except with the written permission of the
Water Superintendent of the City of Canton, Illinois;
(g) Tenant will maintain all improvements in good repair;
(h) Exclude the general public from the Premises and from that part of the lake within
25 feet of the shoreline of the Premises (except as to navigation);
(i) At the expiration of the Lease Term,Tenant shall deliver up the Premises in as good
condition in which they were at the commencement of this Lease,ordinary wear and tear excepted.
11. Water Level. It is understood that the City will not be responsible for maintaining
any certain lake level and will not be responsible for damage caused to Tenant's improvements
(including, without limitation, the Boat Dock) or other property of Tenant by the action of the
waters. The City reserves the right to raise/lower the water levels of Lake Canton, and the City
shall not be responsible for damage caused to Tenant's improvements (including, without
limitation, the Boat Dock) or other property of Tenant by said raising/lowering of the water levels
of Lake Canton.
12. Condemnation.
a. Right to Terminate. If as a result of any taking by means of the exercise of the
power of eminent domain(including any voluntary sale or transfer by Landlord to any condemnor
under threat of condemnation) all or any portion of the Premises, Tenant shall have the option to
terminate this Lease. Tenant must exercise such option within thirty (30)days of the date that title
vests, in the condemnor, to be effective on the date that possession of that portion condemned is
taken by the condemnor.
b. Rebate of Prepaid Rent. If any part of the Premises is taken by condemnation and
this Lease is not terminated, then Landlord shall rebate an amount of Rent equal to the following
equation: Rent multiplied by a fraction, the numerator of which is the number of days remaining
in the Lease Term and the denominator is 365 and multiplied by another fraction, the numerator
of which is the number of acres transferred due to condemnation and the denominator of which is
acreage of the Premises upon the execution of this Lease.
C. Division of Condemnation Award. Any award made as a result of any
condemnation of the Premises shall belong to and be paid to Landlord, and Tenant hereby assigns
to Landlord all of its right, title and interest in any such award; provided, however, Tenant shall
be entitled to receive any condemnation award that is made to Tenant for loss of or damage to
Tenant's trade fixtures, removable personal property and unamortized Alterations that have been
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paid for by Tenant, together with any relocation expenses as may be payable to Tenant for the
relocation of Tenant's property.
13. Holdover by Tenant. If Tenant remains in possession of the Premises without the
written consent of Landlord after the termination or expiration of this Lease,Landlord may recover
possession of the Premises in the manner provided by law, and Tenant shall be subject to all the
terms and conditions hereof and shall pay rent in an amount that equals the Rent multiplied by
twenty-five percent(25%) on or before the first day of each month following the end of the Lease
Term.
14. Default and Remedies.
(a) Events of Tenant's Default. Each of the following shall be considered an"Event
of Default":
i. Tenant shall have failed to pay Rent or any money due under this Lease when
due and such failure is not cured within five (5) days after delivery of written
notice from Landlord specifying such failure to pay; or
ii. Tenant shall have failed to perform any other term, covenant, or condition of
this Lease except those requiring the payment of Rent or any money due under
this Lease and Tenant shall have failed to cure such breach within thirty (30)
days after written notice from Landlord specifying the nature of such breach;
provided, however, that if Tenant's default cannot be reasonably cured within
such thirty (30) day period, then Tenant shall not be in default if it commences
to cure the default within such thirty (30) day period and thereafter diligently
prosecutes such cure to completion; or
iii. A receiver or similar officer becomes entitled to the leasehold interest of Tenant
under this Lease; or
iv. Levy, seizure, attachment or sale of the leasehold interest of Tenant under this
Lease; or
V. Tenant is dissolved, voluntarily or involuntarily, or is no longer in good
standing with the Illinois Secretary of State;
vi. Tenant becomes insolvent or unable to pay debts as they mature, or admits in
writing to such effect, or makes an assignment for the benefit of creditors, or a
proceeding is instituted by or against Tenant alleging that Tenant is insolvent
Page 7 of 13
or unable to pay debts as they mature, or a petition under any bankruptcy or
insolvency law is brought by or against Tenant.
16. Landlord's Remedies. Upon the occurrence of any Event of Default, Landlord
may, at its option, without notice to or demand upon Tenant, exercise any one of more of the
following remedies in addition to any others available at law or in equity:
(a) Landlord may, with or without terminating this Lease, accelerate all Rent due
hereunder and such accelerated Rent shall be immediately due and payable; and
(b) Landlord may terminate this Lease by ten (10) days written notice to Tenant. Upon
tennination of this Lease, Landlord may immediately recover from Tenant all damages
proximately resulting from the termination, including the cost of recovering the Premises, the
unpaid rent that had been earned at the time of the termination of this Lease and the present value
of unpaid rent that would have been earned from the date of such termination until the time this
Lease would have expired. All such amounts shall be immediately due and payable from Tenant.
17. Performance by Landlord . In the event Tenant fails to perform any of its
obligations under this Lease, Landlord may, at its option, perform such obligations on Tenant's
behalf without waiving the Event of Default. Tenant agrees to repay Landlord any expenses
incurred in such performance plus interest of twelve percent (12%) per annum from the date of
Landlord's payment or incurrence of such expenses.
18. Waiver. No delay or omission in the exercise of any right or remedy accruing to
either party upon any breach by the other party under this Lease shall impair such right or remedy
or be construed as a waiver of any such breach. The waiver by either party of any breach of any
provision of this Lease shall not be a waiver of any subsequent breach of the same or any other
provision herein contained.
19. Duty to Mitigate Damages. In the event of a default by a party, the other party
covenants and agrees to take any and all reasonable and appropriate action needed to mitigate
damages incurred as a result of any such default.
20. Assignment and Subletting. Tenant shall not assign this Lease or sublet all or any
part of the Premises without the prior written consent of Landlord, which may be withheld in
Landlord's sole discretion. Notwithstanding the foregoing, within the sooner of (i) twelve (12)
months of the Effective Date or(ii) a sale or transfer of any portion of the Premises from the Land
Trust to a third party, the Land Trust shall assign this Lease to the Association on a form
satisfactory to the Landlord. Nothing in this Section prohibits the Tenant from establishing rules
and regulations for the Association.
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21. Indemnification. Tenant shall indemnify, defend and hold Landlord harmless
from and against all losses, damages, liabilities and expenses (including, but not limited to,
reasonable attorneys fees),judgments, fines or penalties that result from any claim, action, suit or
proceeding (whether civil, criminal, administrative or investigative, including associated appeals)
arising out of any claims including, but not limited to, injuries to persons or property, sustained in
or upon the Premises and/or the Boat Dock during Tenant's possession or use thereof except to the
extent of negligence of or use by Landlord or its agents, invitees and guests. Landlord shall
indemnify, defend and hold Tenant harmless from and against all losses, damages, liabilities and
expenses (including, but not limited to, reasonable attorneys fees),judgments, fines or penalties
that result from any claim, action, suit or proceeding (whether civil, criminal, administrative or
investigative, including associated appeals) arising out of any claims including, but not limited to,
injuries to persons or property, sustained in or upon the Premises prior to Tenant's possession
thereof and the use of the Premises by Landlord or Landlord's agents and guests after the Tenant's
possession except to the extent of negligence of Tenant or its agents, invitees and guests.
22. General Provisions.
(a) No change to or modification of this.Lease shall be valid unless that change or
modification is in writing and is executed by the parties hereto.
(b) No term, covenants or condition of this Lease shall be deemed to have been waived
unless such waiver is in writing and is signed by the waiving party. The acceptance of any rent
hereunder by Landlord shall not be deemed to be a waiver of any breach by Tenant of this Lease.
(c) This Lease contains the entire agreement between the parties with respect to the
subject matter hereof.
(d) This Agreement may be executed in any number of counterparts, each of which
shall be an original, and such counterparts together shall constitute one and the same instrument.
(e) All notices, communications and demands hereunder shall be in writing and shall
be deemed to have been properly given if (i) delivered in person or (ii) sent by registered or
certified mail, postage prepaid, return receipt requested, to:
If to the Tenant: with a copy to:
If to the Landlord: with a copy to:
City of Canton City of Canton
ATTN: Mayor ATTN: City Attorney
2 N. Main Street 2 N. Main Street
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Canton, Illinois 61520 Canton, Illinois 61520
or such other address as may be designated in writing. The notice shall be effective (i) upon
delivery and (ii)two (2) days after the date of mailing.
(f) In the event any action or legal proceeding is commenced to recover Rent, to
terminate this Lease or to enforce any provision in connection with this Lease,the prevailing party
shall be entitled to recover as a part of such action or proceedings, or in a separate action brought
for that purpose, reasonable attorneys' fees and court costs as may be fixed by the court.
(g) Should any provisions of this Lease prove to be invalid or illegal, such invalidity
or illegality shall in no way affect, impair or invalidate any other provision hereof, and such
remaining provisions shall remain in full force and effect.
(h) Time is the essence with respect to the performance of every provision of this Lease
in which time of performance is a factor.
(i) The captions used in this Lease are for convenience only and shall not be considered
in the construction or interpretation of any provision hereof.
0) This Lease shall, subject to the provisions regarding assignment, apply to and bind
the respective heirs, successors, executors, administrators and assigns of Landlord and Tenant,
including the members of the Association. The Association shall be responsible for ensuring
compliance with the terms of this Lease by its members.
(k) This Lease shall be construed and enforced in accordance with the internal laws,
and not the law of conflicts, of the State of Illinois.
(1) Each party had the opportunity to be represented by legal counsel during the
negotiation resulting in this Agreement. The parties agree that the rule of construction to the effect
that any ambiguities are to be resolved against the drafting party shall not be employed in the
interpretation of this Agreement
(m) When the context of this Lease requires, the neuter gender includes the masculine,
the feminine, a partnership or corporation or limited liability company or joint venture, and the
singular includes the plural.
(n) Landlord represents and warrants that: (i)as of the Effective Date it is the fee owner
of the Premises; (ii) it has full power and authority to execute this Lease and, as of the Effective
Date,to convey to Tenant the leasehold estate granted herein; (iii)Tenant's quiet enjoyment of the
Page 10 of 13
Premises shall not be disturbed by Landlord, any party claiming through Landlord, or any other
party, so long as Tenant is not in default hereunder beyond applicable grace period; and (iv)
Landlord's signatory to this Lease is authorized to execute the Lease on behalf of the Landlord.
[Remainder of Page Left Intentionally Blank]
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Executed by the parties hereto as of the day and year first above written.
LANDLORD: TENANT:
CITY OF CANTON JOHN W. AND GLORIA D. DAVIS
LAND TRUST NUMBER 1,
Dated August 26, 2010
Kent Acbow611, Mayor John W. Davis, Co-Trustee
Attest:
Diana Pavley-Rock, City Clerk Gloria D. Davis, Co-Trustee
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Exhibit A
Legal Description of Premises
Part of the Northeast Quarter of Section 30, Township 7 North, Range 5 East of the Fourth
Principal Meridian, more particularly described as follows:
Beginning at an iron rod at the southeast corner of Lot 20 in Old Beach Addition,as shown on Plat
of Survey recorded November 7, 2017 as Document No. 1778527 in Slide 539, thence South 05
degrees 36 minutes 57 seconds West (bearings based on Illinois State Plane Coordinate System,
NAD83 (2011), West Zone) 166.29 feet to a fence post; thence North 88 degrees 10 minutes 25
seconds West 132.72 feet to an iron rod; thence North 01 degrees 09 minutes 00 seconds East
128.37 feet to an iron rod at the southwest corner of said Lot 20; thence North 77 degrees 19
minutes 27 seconds East along the southerly line of said Lot 20 a distance of 150.00 feet to the
Point of Beginning.
The above described tract contains 20,359 square feet, more or less, or 0.467 acres; more or less.
Page 13 of 13
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PATRICK O'ERIAN
COUNTY CLERK & RECORDER
FULTON COUNT`', IL
RECORDED ON
0811812022 08a26 AM
RECORDING FEE 67.00
PAGES: 11
The Above Space for Recorder's Use Only
LEASE AGREEMENT
This Lease Agreement ("Lease") dated this 17th day of August, 2022 ("Effective Date"),
by and between the City of Canton,an Illinois municipal corporation(the"Landlord" or"City"),
and the John W. and Gloria D. Davis Land Trust Number 1, dated August 26, 2010 (the "Land
Trust")
BACKGROUND
A. Landlord is a non-home rule municipal corporation in the State of Illinois governed
by the Corporate Authorities of the City of Canton,which includes its City Council and Mayor, as
may be referred to herein from time-to-time;
B. Landlord is the owner of real property in Fulton County, Illinois that is described
on Exhibit"A" (hereinafter referred to as the "Premises");
C. The Land Trust intends to assign this Lease within the sooner of(i) twelve (12)
months of the Effective Date or(ii) a sale or transfer of any portion of the Premises from the Land
Trust to a third party to a homeowner's association formed pursuant to the Illinois General Not
For Profit Corporation Act of 1986, as amended (805 ILCS 105/101.01 et seq.) (the
"Association")whose initial members are John W. and Gloria D. Davis;
D. "Tenant" as used hereinafter shall include the Land Trust and/or the Association,
as applicable.
E. Tenant is or will soon be the owner of real property ("Tenant's Property") located
adjacently North of the Premises;
F. Tenant desires to lease the Premises together with all improvements and fixtures
thereon and appurtenances thereto from Landlord pursuant to the terms of this Lease; and
G. . Landlord desires to lease the Premises together with all improvements and fixtures
thereon and appurtenances thereto to Tenant.
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L
AGREEMENT
In consideration of the foregoing and the terms, covenants and conditions contained in this
Lease, Landlord and Tenant expressly agree as follows:
1. Rent. For the Initial Lease Term, upon execution of this Lease, Tenant shall pay
to Landlord rent ("Rent") in the amount of One Hundred and no/100 Dollars ($100.00) per year.
All Rent shall be paid, in advance, in lawful money of the United States, on or before January 1
each year,without any prior demand therefor,to Landlord at the address described in Section 22(e)
or such place as Landlord may designate in writing from time to time. Rent for any partial year
shall be prorated based on the actual number of days in the partial year and paid in advance at the
commencement of the partial year period (as the applicable case may be).
2. Term. The term "Lease Term" shall mean the terra of this Lease, which shall
commence on the Effective Date and continue until August 16, 2023, unless this Lease is sooner
terminated according to its ternis or by mutual written agreement.
3. Possession. Tenant shall be given possession of the Premises on the Effective Date.
4. Use Of Premises.
(a) Tenant's possession of and use of the Premises shall be limited to utilizing the
Premises for ingress/egress to other property leased and/or owned by Tenant and for purposes of
developing the real property located adjacently North of the Premises which Tenant will be
developing for residential purposes.
(b) No commercial or business use of the Premises shall be permitted without a duly
adopted resolution or ordinance by Landlord's Corporate Authorities.
(c) No residences, garages, sheds, docks, outbuildings, gazebos, or other structures
may be built or placed upon the Premises except as otherwise set forth in this Lease or as may be
permitted by a duly adopted resolution or ordinance of Landlord's Corporate Authorities from
time-to-time.
(d) Tenant and its members shall obey all rules,regulations, and ordinances of the City
pertaining to Premises,the lake and surrounding lands and shall not allow violations by Tenant or
its members families, guests or any other persons on the Premises.
(e) Tenant shall not permit on or near the Premises anything in violation of any law,
regulation,rule or ordinance—State, Federal, or local—or the regulations of any public authority,
nonuse or permit the premises to be used for any immoral or illegal purposes.
(f) Tenant shall not cause nor permit any objectionable noise or odor to be emitted
from the Leased Property; nor will Tenant keep on the Leased Property any domestic livestock,
poultry, or noisy or dangerous dog.
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(g) Tenant shall not do nor permit anything to be done or remain on the Leased Property
or in or on the lake in any way tending to pollute the waters or to create a nuisance or disturb the
peace or quiet of the neighborhood or annoy any occupant of neighboring properties.
(h) Tenant represents and covenants that no environmentally harmful or toxic materials
or dangerous or hazardous substances, or volatile or explosive materials, or other hazardous
substances as that tern may be defined by any governmental agency with jurisdiction(collectively
"Hazardous Substances") will be used or stored by Tenant on the Premises. Tenant shall fully
indemnify and hold harmless Landlord from all costs and expenses, including reasonable
attorneys' fees, that Landlord may incur as a result of the presence of, release of, or threatened
release of Hazardous Substances on the Premises because of any activity, or act or omission, of
Tenant, its agents, employees, or invitees during the period described in this paragraph. Landlord
represents and warrants that,.to the best of Landlord's knowledge, there are no Hazardous
Substances on the Premises as of the Effective Date. Landlord shall fully indemnify and hold
harmless Tenant from all costs and expenses, including reasonable attorneys' fees, that Tenant
may incur as a result of the presence of,release of, or threatened release of Hazardous Substances
on the Premises because of any activity, or act or omission, of Landlord, its agents or employees,
or invitees during the period described in this paragraph.
(i) Representatives of the City may come upon the Premises as follows:
i. At any and all times for the purpose of inspecting;
ii. At any time to gain needed access to other land;
iii. To plant and care for trees and other vegetation.
iv. To construct, operate and maintain sewer, water and gas pipes, electrical lines
pipes and lines for other services and their appurtenances;
V. To improve and protect the shoreline;
vi. To do any other work necessary to maintain the lake or its structures; or
vii. For any other purpose to the extent that such use does not unreasonably interfere
with the use of the Premises by Tenant or Tenant's invitees and agents.
(j) The City is hereby released and held harmless from any and all damages, costs,
expenses, liabilities, causes of action, or suits arising from or related to the exercising of any of its
rights under this Section, including but not limited to the entering upon the Premises for any of the
above reasons.
5. Condition Of Premises. Tenant acknowledges personal inspection and
examination of the Premises and all parts thereof, and Tenant accepts the Premises in its existing
condition.
6. Real Estate Taxes. During the Lease Term,Tenant shall be responsible for all real
estate taxes and assessments for the Premises. Failure to timely pay any real estate taxes and
assessments after the Effective Date of this Lease shall be deemed a default of this Lease.
Page 3 of 11
7. Utilities: No utilities shall be installed on the Premises without the written consent ,
of the Mayor or his/her designee. To the extent utilities are permitted, Tenant shall be solely
responsible for and pay all charges for water, garbage removal, electricity, telephone, cable,
satellite/tv, internet, fiber, gas, wastewater treatment and/or disposal, or other service for the
Leased Property (collectively"utilities"). Failure to pay such utilities shall be deemed a default of
this Lease. Tenant shall also be responsible for the installation,maintenance,removal and/or repair
of any water lines, sewer lines, wastewater treatment and/or disposal, private sewage disposal
systems, electricity/power lines, internet/telephone/tv connections, fiber lines, gas lines, or other
utility connections located upon the Premises.
8. Encumbrances/Liens. Tenant shall not mortgage or otherwise cause or allow any
liens or encumbrances to be recorded or filed against the Premises,or the leasehold interest granted
by this Lease, at any time. Failure to comply with this Paragraph shall be deemed a default of this
Lease and grounds for immediate terinination upon written notice by Landlord.
9. Insurance. During the Lease Term:
a. Tenant shall procure, pay for and keep in force and effect the following:
(comprehensive general liability insurance (including a blanket "contractual" liability
endorsement and coverage on operations of independent contractors) insuring against liability for
personal injury, bodily injury, death and damage to property occurring in or about, or resulting
from an occurrence in or about,the Premises with combined single limit coverage of not less than
Two Million Dollars ($2,000,000) on account of bodily injuries to or the death of any one or more
persons as a result of any occurrence and Five Hundred Thousand Dollars ($500,000) coverage
for property damage.
b. All policies of insurance required to be carried by Tenant pursuant to this Section
8: (i) shall name Landlord and such other parties in interest as Landlord designates as additional
insureds; (ii) shall be primary insurance which provides that the insurer shall be liable for the full
amount of the loss up to and including the total amount of liability set forth in the declarations
without the right of contribution from any other insurance coverage of Landlord; (iii) shall be
written by companies authorized to do business in the State of Illinois, shall be rated A- or better
by Best's Insurance Rating System, or its equivalent and shall contain a deductible not exceeding
Ten Thousand Dollars ($10,000); and (iv) shall provide that such policy shall not be subject to
cancellation, lapse or change except after at least ten(10) days prior written notice to Landlord.
C. A certificate of the insurer, certifying that such policy has been issued, providing
the coverage required by this paragraph, and containing the provisions specified herein, shall be
delivered to Landlord prior to or on the Effective.Date and upon renewal of such policies, but not
less than thirty (30) days prior to the expiration of the term for such coverage.
d. Tenant shall obtain whatever contents insurance Tenant deems desirable, it being
acknowledged by Tenant that Landlord has no obligation to Tenant for any damages to any of
Tenant's personal property in or on the Premises.
Page 4 of 11
10. Maintenance and Repair of the Premises.
(a) Tenant will maintain the Premises during the Lease Term, in its present condition
except as otherwise stated in this Lease.
(b) Tenant shall keep the Leased Property neat and clean and free from noxious weeds
and debris.
(c) Tenant shall not pen-nit any of the Premises to be denuded of vegetation or to be
cultivated in such manner as to cause or permit soil erosion. Further, Tenant agrees to maintain
the shoreline in good condition and must take reasonable and legal steps to protect the lake from
pollution, undue erosion, and other injury.
(d) Tenant shall care for and protect from injury all shade and ornamental trees,
shrubbery,and sod,and may remove undergrowth and noxious weeds from the Premises;however,
Tenant shall not remove, trim, or pen-nit the removal or trimming of any trees more than three
inches in diameter without the consent of the City (which may be granted by the Mayor or his/her
designee). Notwithstanding the foregoing, Tenant intends to do an initial sweep of shrubs, trees,
undergrowth and noxious weeds, which the City agrees to permit subject to approval of the
removal of said items by the City Engineer;
(e) Tenant shall not allow yard waste including grass clippings, leaves or like material
to enter the lake from the Premises
(f) Tenant shall not use herbicides nor insecticides near the water of the lake nor
anywhere rain may wash these chemicals into the lake except with the written permission of the
Water Superintendent of the City of Canton, Illinois;
(g) Tenant will maintain all improvements in good repair;
(h) Exclude the general public from the Premises and from that part of the lake within
25 feet of the shoreline of the Premises (except as to navigation);
(i) - At the expiration of the Lease Term,Tenant shall deliver up the Premises in as good
condition in which they were at the commencement of this Lease,ordinary wear and tear excepted.
11. Water Level. It is understood that the City will not be responsible for maintaining
any certain,lake level and will not be responsible for damage caused to Tenant's improvements
(including, without limitation, the Boat Dock) or other property of Tenant by the action of the
waters. The City reserves the right to raise/lower the water levels of Lake Canton, and the City
shall not be responsible for damage caused to Tenant's improvements (including, without
limitation,the Boat Dock) or other property of Tenant by said raising/lowering of the water levels
of Lake Canton.
Page 5 of 11
12. Condemnation.
a. Right to Terminate. If as a result of any taking by means of the exercise of the
power of eminent domain(including any voluntary sale or transfer by Landlord to any condemnor
under threat of condeimlation) all or any portion of the Premises, Tenant shall have the option to
terminate this Lease. Tenant must exercise such option within thirty (3 0) days of the date that title
vests, in the condemnor, to be effective on the date that possession of that portion condemned is
taken by the condemnor.
b. Rebate of Prepaid Rent. If any part of the Premises is taken by condemnation and
this Lease is not terminated, then Landlord shall rebate an amount of Rent equal to the following
equation: Rent multiplied by a fraction, the numerator of which is the number of days remaining
in the Lease Term and the denominator is 365 and multiplied by another fraction, the numerator
of which is the number of acres transferred due to condemnation and the denominator of which is
acreage of the Premises upon the execution of this Lease.
C. Division of Condemnation Award. Any award made as a result of any
condemnation of the Premises shall belong to and be paid to Landlord, and Tenant hereby assigns
to Landlord all of its right, title and interest in any such award; rop vided, however, Tenant shall
be entitled to receive any condemnation award that is made to Tenant for loss of or damage to
Tenant's trade fixtures, removable personal property and unamortized Alterations that have been
paid for by Tenant, together with any relocation expenses as may be payable to Tenant for the
relocation of Tenant's property.
13. Holdover by Tenant. If Tenant remains in possession of the Premises without the
written consent of Landlord after the termination or expiration of this Lease,Landlord may recover
possession of the Premises in the manner provided by law, and Tenant shall be subject to all the
terms and conditions hereof and shall pay rent in an amount that equals the Rent multiplied by
twenty-five percent(25%) on or before the first day of each month following the end of the Lease
Term.
14. Default and Remedies.
(a) Events of Tenant's Default. Each of the following shall be considered an"Event
of Default":
i. Tenant shall have failed to pay Rent or any money due under this Lease when
due and such failure is not cured within five (5) days after delivery of written
notice from Landlord specifying such failure to pay; or
ii. Tenant shall have failed to perform any other term, covenant, or condition of
this Lease except those requiring the payment of Rent or any money due under
this Lease and Tenant shall have failed to cure such breach within thirty (30)
days after written notice from Landlord specifying the nature of such breach;
provided, however, that if Tenant's default cannot be reasonably cured within
such thirty (30) day period,then Tenant shall not be in default if it commences
Page 6 of 11
to cure the default within such thirty (30) day period and thereafter diligently
prosecutes such cure to completion; or
iii. A receiver or similar officer becomes entitled to the leasehold interest of Tenant
under this Lease; or
iv. Levy, seizure, attachment or sale of the leasehold interest of Tenant under this
Lease; or
V. Tenant is dissolved, voluntarily or involuntarily, or is no longer in good
standing with the Illinois Secretary of State;
vi. Tenant becomes insolvent or unable to pay debts as they mature, or admits in
writing to such effect, or makes an assignment for the benefit of creditors, or a
proceeding is instituted by or against Tenant alleging that Tenant is insolvent
or unable to pay debts as they mature, or a petition under any bankruptcy or
insolvency law is brought by or against Tenant.
15. Landlord's Remedies. Upon the occurrence of any Event of Default, Landlord
may, at its option, without notice to or demand upon Tenant, exercise any one of more of the
following remedies in addition to any others available at law or in equity:
(a) Landlord may, with or without terminating this Lease, accelerate all Rent due
hereunder and such accelerated Rent shall be immediately due and payable; and
(b) Landlord may terminate this Lease by ten(10) days written notice to Tenant. Upon
termination of this Lease, Landlord may immediately recover from Tenant all damages
proximately resulting from the termination, including the cost of recovering the Premises, the
unpaid rent that had been earned at the time of the termination of this Lease and the present value
of unpaid rent that would have been earned fiom the date of such termination until the time this
Lease would have expired. All such amounts shall be immediately due and payable from Tenant.
16. Performance by Landlord . In the event Tenant fails to perforin any of its
obligations under this Lease, Landlord may, at its option, perform such obligations on Tenant's
behalf without waiving the Event of Default. Tenant agrees to repay Landlord any expenses
incurred in such performance plus interest of twelve percent (12%) per annum from the date of
Landlord's payment or incurrence of such expenses.
17. Waiver. No delay or omission in the exercise of any right or remedy accruing to
either parry upon any breach by the other party under this Lease shall impair such right or remedy
or be construed as a waiver of any such breach. The waiver by either party of any breach of any
provision of this Lease shall not be a waiver of any subsequent breach of the same or any other
provision herein contained.
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18. Duty to Mitigate Damages. In the event of a default by a party, the other parry
covenants and agrees to take any and all reasonable and appropriate action needed to mitigate
damages incurred as a result of any such default.
19. Assignment and Subletting. Tenant shall not assign this Lease or sublet all or any
part of the Premises without the prior written consent of Landlord, which may be withheld in
Landlord's sole discretion. Notwithstanding the foregoing, within the sooner of (i) twelve (12)
months of the Effective Date or(ii) a sale or transfer of any portion of the Premises from the Land
Trust to a third party, the Land Trust shall assign this Lease to the Association on a form
satisfactory to the Landlord. Nothing in this Section prohibits the Tenant from establishing rules
and regulations for the Association.
20. Indemnification. Tenant shall indemnify, defend and hold Landlord harmless
from and against all losses, damages, liabilities and expenses (including, but not limited to,
reasonable attorneys fees),judgments, fines or penalties that result from any claim, action, suit or
proceeding (whether civil, criminal, administrative or investigative, including associated appeals)
arising out of any claims including, but not limited to, injuries to persons or property, sustained in
or upon the Premises and/or the Boat Dock during Tenant's possession or use thereof except to the
extent of negligence of or use by Landlord or its agents, invitees and guests. Landlord shall
indemnify, defend and hold Tenant harmless from and against all losses, damages, liabilities and
expenses (including, but not limited to, reasonable attorneys fees),judgments, fines or penalties
that result from any claim, action, suit or proceeding (whether civil, criminal, administrative or
investigative, including associated appeals) arising out of any claims including, but not limited to,
injuries to persons or property, sustained in or upon the Premises prior to Tenant's possession
thereof and the use of the Premises by Landlord or Landlord's agents and guests after the Tenant's
possession except to the extent of negligence of Tenant or its agents, invitees and guests.
21. General Provisions.
a. No change to or modification of this Lease shall be valid unless that change or
modification is in writing and is executed by the parties hereto.
b. No terns, covenants or condition of this Lease shall be deemed to have been waived
unless such waiver is in writing and is signed by the waiving party. The acceptance of any rent
hereunder by Landlord shall not be deemed to be a waiver of any breach by Tenant of this Lease.
C. This Lease contains the entire agreement between the parties with respect to the
subject matter hereof.
I This Agreement may be executed in any number of counterparts, each of which
shall be an original, and such counterparts together shall constitute one and the same instrument.
e. All notices, communications and demands hereunder shall be in writing and shall
be deemed to have been properly given if (i) delivered in person or (ii) sent by registered or
certified mail, postage prepaid, return receipt requested, to:
Page 8 of 11
If to the Tenant: with a copy to:
John Davis Froehling, Weber& Schell, LLP
24784 East Old Beach Road Ronald Weber
Canton,Illinois 61520 167 West Elm Street
Canton, Illinois 61520
If to the Landlord: with a copy to:
City of Canton City of Canton
ATTN: Mayor ATTN: City Attorney
2 N. Main Street 2 N. Main Street
Canton, Illinois 61520 Canton, Illinois 61520
or such other address as may be designated in writing. The notice shall be effective (i) upon
delivery and (ii) two (2) days after the date of mailing.
f. In the event any action or legal proceeding is commenced to recover Rent, to
terininate this Lease or to enforce any provision in connection with this Lease,the prevailing party
shall be entitled to recover as a part of such action or proceedings, or in a separate action brought
for that purpose, reasonable attorneys' fees and court costs as may be fixed by the court.
g. Should any provisions of this Lease prove to be invalid or illegal, such invalidity
or illegality shall in no way affect, impair or invalidate any other provision hereof, and such
remaining provisions shall remain in full force and effect.
h. Time is the essence with respect to the performance of every provision of this Lease
in which time of performance is a factor.
i. The captions used in this Lease are for convenience only and shall not be considered
in the construction or interpretation of any provision hereof.
j. This Lease shall, subject to the provisions regarding assignment, apply to and bind
the respective heirs, successors, executors, administrators and assigns of Landlord and Tenant,
including the members of the Association. The Association shall be responsible for ensuring
compliance with the terms of this Lease by its members.
k. This Lease shall be construed and enforced in accordance with the internal laws,
and not the law of conflicts, of the State of Illinois.
1. Each party had the opportunity to be represented by legal counsel during the
negotiation resulting in this Agreement. The parties agree that the rule of construction to the effect
that any ambiguities are to be resolved against the drafting parry shall not be employed in the
interpretation of this Agreement
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1
in. When the context of this Lease requires,the neuter gender includes the masculine,
the feminine, a partnership or corporation or limited liability company or joint venture, and the
singular includes the plural.
n. Landlord represents and warrants that: (i)as of the Effective Date it is the fee owner
of the Premises; (ii) it has full power and authority to execute this Lease and, as of the Effective
Date,to convey to Tenant the leasehold estate granted herein; (iii)Tenant's quiet enjoyment of the
Premises shall not be disturbed by Landlord, any party claiming through Landlord, or any other
party, so long as Tenant is not in default hereunder beyond applicable grace period; and (iv)
Landlord's signatory to this Lease is authorized to execute the Lease on behalf of the Landlord.
Executed by the parties hereto as of the day and year first above written.
LANDLORD: TENANT:
CITY OF CANTON JOHN W. AND GLORIA D. DAVIS LAND
T STNU
R 1, dated August 26, 2010
�"1 6
n
Kent A. McDowell,Mayor o W. Davis, Co-Trus ee
Attest:
ndrea J. Smith-Walters,Acting City Clerk Gloria D. Davis, Co-Trustee
Prepared by and return to:
John J. McCarthy
Attorney at Law
209 East Chestnut Street
Suite 1
Canton,Illinois 61520
Page 10 of 11
Exhibit A
Legal Description of Premises
Part of the Northeast Quarter of Section 30, Township 7 North, Range 5 East of the Fourth
Principal Meridian, more particularly described as follows:
Beginning at an iron rod at the southeast corner of Lot 20 in Old Beach Addition, as shown on Plat
of Survey recorded November 7, 2017 as Document No. 1778527 in Slide 539, thence South 05
degrees 36 minutes 57 seconds West (bearings based on Illinois State Plane Coordinate System,
NAD83 (2011), West Zone) 166.29 feet to a fence post; thence North 88 degrees 10 minutes 25
seconds West 132.72 feet to an iron rod; thence North 01 degrees 09 minutes 00 seconds East
128.37 feet to an iron rod at the southwest corner of said Lot 20; thence North 77 degrees 19
minutes 27 seconds East along the southerly line of said Lot 20 a distance of 150.00 feet to the
Point of Beginning.
The above described tract contains 20,359 square feet, more or less, or 0.467 acres, more or less.
Page 11 of 11
'2O.-37'2
PATRICK O'ERIAN
COUNTY CLERK & RECORDER
FULTON COUNTY, IL
RECORDED ON
08;1181'2022 08:26 AM
RECORDING FEE 67.00
PAGES: 11
The Above Space for Recorder's Use Only
LEASE AGREEMENT
This Lease Agreement ("Lease") dated this 17t" day of August, 2022 ("Effective Date"),
by and between the City of Canton, an Illinois municipal corporation(the"Landlord" or"City"),
and the John W. and Gloria D. Davis Land Trust Number 1, dated August 26, 2010 (the "Land
Trust")
BACKGROUND
A. Landlord is a non-home rule municipal corporation theState of Illinois governed
by the Corporate Authorities of the.City of Canton,which includes its City Council and Mayor, as
may be referred to herein from time-to-time;
B. Landlord is the owner of real property in Fulton County, Illinois that is described
on Exhibit"A" (hereinafter referred to as the "Premises");
C. The Land Trust intends to assign this Lease within the sooner of(i) twelve (12)
months of the Effective Date or(ii) a sale or transfer of any portion of the Premises from the Land
Trust to a third party to a homeowner's association formed pursuant to the Illinois General Not
For Profit Corporation Act of 1986, as amended (805 IL,CS 105/101.01 et seq.) (the
"Association")whose initial members are John W. and Gloria D. Davis;
D. "Tenant" as used hereinafter shall include the Land Trust and/or the Association,
as applicable.
E. Tenant is or will soon be the owner of real property ("Tenant's Property") located
adjacently North of the Premises;
F. Tenant desires to lease the Premises together with all improvements and fixtures
thereon and appurtenances thereto from Landlord pursuant to the terms of this Lease; and
G. Landlord desires to lease the Premises together with all improvements and fixtures
thereon and appurtenances thereto to Tenant.
Page 1 of 11
AGREEMENT
In consideration of the foregoing and the terms, covenants and conditions contained in this
Lease,Landlord and Tenant expressly agree as follows:
1. Rent. For the Initial Lease Tenn, upon execution of this Lease, Tenant shall pay
to Landlord rent ("Rent") in the amount of One Hundred and no/100 Dollars ($100.00) per year.
All Rent shall be paid, in advance, in lawful money of the United States, on or before January 1
each year,without any prior demand therefor,to Landlord at the address described in Section 22(e)
or such place as Landlord may designate in writing from time to time. Rent for any partial year
shall be prorated based on the actual number of days in the partial year and paid in advance at the
commencement of the partial year period (as the applicable case may be).
2. Term. The term "Lease Terin" shall mean the term of this Lease, which shall
commence on the Effective Date and continue until August 16, 2023, unless this Lease is sooner
terminated according to its terms or by mutual written agreement.
3. Possession. Tenant shall be given possession of the Premises on the Effective Date.
4. Use Of Premises.
(a) Tenant's possession of and use of the Premises shall be limited to utilizing the
Premises for ingress/egress to other property leased and/or owned by Tenant and for purposes of
developing the real property located adjacently North of the Premises which Tenant will be
developing for residential purposes.
(b) No commercial or business use of the Premises shall be permitted without a duly
adopted resolution or ordinance by Landlord's Corporate Authorities.
(c) No residences, garages, sheds, docks, outbuildings, gazebos, or other structures
may be built or placed upon the Premises except as otherwise set forth in this Lease or as may be
permitted by a duly adopted resolution or ordinance of Landlord's Corporate Authorities from
time-to-time.
(d) Tenant and its members shall obey all rules,regulations, and ordinances of the City
pertaining to Premises,the lake and surrounding lands and shall not allow violations by Tenant or
its members families, guests or any other persons on the Premises.
(e) Tenant shall not permit on or near the Premises anything in violation of any law,
regulation, rule or ordinance—State, Federal, or local—or the regulations of any public authority,
nor,use or permit the premises to be used for any immoral or illegal purposes.
(f) Tenant shall not cause nor permit any objectionable noise or odor to be emitted
from the Leased Property; nor will Tenant keep on the Leased Property any domestic livestock,
poultry, or noisy or dangerous dog.
Page 2 of 11
L
(g) Tenant shall not do nor permit anything to be done or remain on the Leased Property
or in or on the lake in any way tending to pollute the waters or to create a nuisance or disturb the
peace or quiet of the neighborhood or annoy any occupant of neighboring properties.
(h) Tenant represents and covenants that no environmentally harmful or toxic materials
or dangerous or hazardous substances, or volatile or explosive materials, or other hazardous
substances as that term may be defined by any governmental agency with jurisdiction(collectively
"Hazardous Substances") will be used or stored by Tenant on the Premises. Tenant shall fully
indemnify and hold harmless Landlord from all costs and expenses, including reasonable
attorneys' fees, that Landlord may incur as a result of the presence of, release of, or threatened
release of Hazardous Substances on the Premises because of any activity, or act or omission, of
Tenant, its agents, employees, or invitees during the period described in this paragraph. Landlord
represents and warrants that,.to the best of Landlord's knowledge, there are no Hazardous
Substances on the Premises as of the Effective Date. Landlord shall fully indemnify and hold
harmless Tenant from all costs and expenses, including reasonable attorneys' fees, that Tenant
may incur as a result of the presence of, release of, or threatened release of Hazardous Substances
on the Premises because of any activity, or act or omission, of Landlord, its agents or employees,
or invitees during the period described in this paragraph.
(i) Representatives of the City may come upon the Premises as follows:
i. At any and all times for the purpose of inspecting;
ii. At any time to gain needed access to other land;
iii. To plant and care for trees and other vegetation.
iv. To construct, operate and maintain sewer, water and gas pipes, electrical lines
pipes and lines for other services and their appurtenances;
V. To improve and protect the shoreline;
vi. To do any other work necessary to maintain the lake or its structures; or
vii. For any other purpose to the extent that such use does not unreasonably interfere
with the use of the Premises by Tenant or Tenant's invitees and agents.
(j) The City is hereby released and held harmless from any and all damages, costs,
expenses, liabilities, causes of action, or suits arising from or related to the exercising of any of its
rights under this Section, including but not limited to the entering upon the Premises for any of the
above reasons.
5. Condition Of Premises. Tenant acknowledges personal inspection and
examination of the Premises and all parts thereof, and Tenant accepts the Premises in its existing
condition.
6. Real Estate Taxes. During the Lease Term,Tenant shall be responsible for all real
estate taxes and assessments for the Premises. Failure to timely pay any real estate taxes and
assessments after the Effective Date of this Lease shall be deemed a default of this Lease.
Page 3 of 11
7. Utilities: No utilities shall be installed on the Premises without the written consent
of the Mayor or his/her designee. To the extent utilities are permitted, Tenant shall be solely
responsible for and pay all charges for water, garbage removal, electricity, telephone, cable,
satellite/tv, internet, fiber, gas, wastewater treatment and/or disposal, or other service for the
Leased Property (collectively "utilities"). Failure to pay such utilities shall be deemed a default of
this Lease. Tenant shall also be responsible for the installation,maintenance,removal and/or repair
of any water lines, sewer lines, wastewater treatment and/or disposal, private sewage disposal
systems, electricity/power lines, internet/telephone/tv connections, fiber lines, gas lines, or other
utility connections located upon the Premises.
8. Encumbrances/Liens. Tenant shall not mortgage or otherwise cause or allow any
liens or encumbrances to be recorded or filed against the Premises,or the leasehold interest granted
by this Lease, at any time. Failure to comply with this Paragraph shall be deemed a default of this
Lease and grounds for immediate termination upon written notice by Landlord.
9. Insurance. During the Lease Term:
a. Tenant shall procure, pay for and keep in force and effect the following:
(comprehensive general liability insurance (including a blanket "contractual" liability
endorsement and coverage on operations of independent contractors) insuring against liability for
personal injury, bodily injury, death and damage to property occurring in or about, or resulting
from an occurrence in or about,the Premises with combined single limit coverage of not less than
Two Million Dollars ($2,000,000) on account of bodily injuries to or the death of any one or more
persons as a result of any occurrence and Five Hundred Thousand Dollars ($500,000) coverage
for property damage.
b. All policies of insurance required to be carried by Tenant pursuant to this Section
8: (i) shall name Landlord and such other parties in interest as Landlord designates as additional
insureds; (ii) shall be primary insurance which provides that the insurer shall be liable for the full
amount of the loss up to and including the total amount of liability set forth in the declarations
without the right of contribution from any other insurance coverage of Landlord; (iii) shall be
written by companies authorized to do business in the State of Illinois, shall be rated A- or better
by Best's Insurance Rating System, or its equivalent and shall contain a deductible not exceeding
Ten Thousand Dollars ($10,000); and (iv) shall provide that such policy shall not be subject to
cancellation, lapse or change except after at least ten (10) days prior written notice to Landlord.
C. A certificate of the insurer, certifying that such policy has been issued, providing
the coverage required by this paragraph, and containing the provisions specified herein, shall be
delivered to Landlord prior to or on the Effective Date and upon renewal of such policies, but not
less than thirty (30) days prior to the expiration of the term for such coverage.
d. Tenant shall obtain whatever contents insurance Tenant deems desirable, it being
acknowledged by Tenant that Landlord has no obligation to Tenant for any damages to any of
Tenant's personal property in or on the Premises.
Page 4 of 11
10. Maintenance and Repair of the Premises.
(a) Tenant will maintain the Premises during the Lease Term, in its present condition
except as otherwise stated in this Lease.
(b) Tenant shall keep the Leased Property neat and clean and free from noxious weeds
and debris.
(c) Tenant shall not permit any of the Premises to be denuded of vegetation or to be
cultivated in such manner as to cause or permit soil erosion. Further, Tenant agrees to maintain
the shoreline in good condition and must take reasonable and legal steps to protect the lake from
pollution,undue erosion, and other injury.
(d) Tenant shall care for and protect from injury all shade and ornamental trees,
shrubbery,and sod,and may remove undergrowth and noxious weeds from the Premises;however,
Tenant shall not remove, trim, or permit the removal or trimming of any trees more than three
inches in diameter without the consent of the City (which may be granted by the Mayor or his/her
designee). Notwithstanding the foregoing, Tenant intends to do an initial sweep of shrubs, trees,
undergrowth and noxious weeds, which the City agrees to permit subject to approval of the
removal of said items by the City Engineer;
(e) Tenant shall not allow yard waste including grass clippings, leaves or like material
to enter the lake from the Premises
(f) Tenant shall not use herbicides nor insecticides near the water of the lake nor
anywhere rain may wash these chemicals into the lake except with the written permission of the
Water Superintendent of the City of Canton, Illinois;
(g) Tenant will maintain all improvements in good repair;
(h) Exclude the general public from the Premises and from that part of the lake within
25 feet of the shoreline of the Premises (except as to navigation);
(i) At the expiration of the Lease Term,Tenant shall deliver up the Premises in as good
condition in which they were at the commencement of this Lease, ordinary wear and tear excepted.
11. Water Level. It is understood that the City will not be responsible for maintaining
any certain lake level and will not be responsible for damage caused to Tenant's improvements
(including, without limitation, the Boat Dock) or other property of Tenant by the action of the
waters. The City reserves the.right to raise/lower the water levels of Lake Canton, and the City
shall not be responsible for damage caused to Tenant's improvements (including, without
limitation,the Boat Dock) or other property of Tenant by said raising/lowering of the water levels
of Lake Canton.
Page 5 of 11
12. Condemnation.
a. Right to Terminate. If as a result of any taking by means of the exercise of the
power of eminent domain(including any voluntary sale or transfer by Landlord to any condemnor
under threat of condemnation) all or any portion of the Premises, Tenant shall have the option to
terminate this Lease. Tenant must exercise such option within thirty (30) days of the date that title
vests, in the condemnor, to be effective on the date that possession of that portion condemned is
taken by the condemnor.
b. Rebate of Prepaid Rent. If any part of the Premises is taken by condemnation and
this Lease is not terminated, then Landlord shall rebate an amount of Rent equal to the following
equation: Rent multiplied by a fraction, the numerator of which is the number of days remaining
in the Lease Term and the denominator is 365 and multiplied by another fraction, the numerator
of which is the number of acres transferred due to condemnation and the denominator of which is
acreage of the Premises upon the execution of this Lease.
C. Division of Condemnation Award. Any award made as a result of any
condemnation of the Premises shall belong to and be paid to Landlord, and Tenant hereby assigns
to Landlord all of its right, title and interest in any such award; provided, however, Tenant shall
be entitled to receive any condemnation award that is made to Tenant for loss of or damage to
Tenant's trade fixtures, removable personal property and unamortized Alterations that have been
paid for by Tenant, together with any relocation expenses as may be payable to Tenant for the
relocation of Tenant's property.
13. Holdover by Tenant. If Tenant remains in possession of the Premises without the
written consent of Landlord after the termination or expiration of this Lease,Landlord may recover
possession of the Premises in the manner provided by law, and Tenant shall be subject to all the
terms and conditions hereof and shall pay rent in an amount that equals the Rent multiplied by
twenty-five percent(25%) on or before the first day of each month following the end of the Lease
Tenn.
14. Default and Remedies.
(a) Events of Tenant's Default. Each of the following shall be considered an"Event
of Default":
i. Tenant shall have failed to pay Rent or any money due under this Lease when
due and such failure is not cured within five (5) days after delivery of written
notice from Landlord specifying such failure to pay; or
ii. Tenant shall have failed to perform any other term, covenant, or condition of
this Lease except those requiring the payment of Rent or any money due under
this Lease and Tenant shall have failed to cure such breach within thirty (30)
days after written notice from Landlord specifying the nature of such breach;
provided, however, that if Tenant's default cannot be reasonably cured within
such thirty (30) day period,then Tenant shall not be in default if it commences
Page 6 of 11
to cure the default within such thirty (30) day period and thereafter diligently
prosecutes such cure to completion; or
iii. A receiver or similar officer becomes entitled to the leasehold interest of Tenant
under this Lease; or
iv. Levy, seizure, attachment or sale of the leasehold interest of Tenant under this
Lease; or
V. Tenant is dissolved, voluntarily or involuntarily, or is no longer in good
standing with the Illinois Secretary of State;
vi. Tenant becomes insolvent or unable to pay debts as they mature, or admits in
writing to such effect, or makes an assigmnent for the benefit of creditors, or a
proceeding is instituted by or against Tenant alleging that Tenant is insolvent
or unable to pay debts as they mature, or a petition under any bankruptcy or
insolvency law is brought by or against Tenant.
15. Landlord's Remedies. Upon the occurrence of any Event of Default, Landlord
may, at its option, without notice to or demand upon Tenant, exercise any one of more of the
following remedies in addition to any others available at law or in equity:
(a) Landlord may, with or without terminating this Lease, accelerate all Rent due
hereunder and such accelerated Rent shall be immediately due and payable; and
(b) Landlord may terminate this Lease by ten(10) days written notice to Tenant. Upon
termination of this Lease, Landlord may immediately recover from Tenant all damages
proximately resulting from the termination, including the cost of recovering the Premises, the
unpaid rent that had been earned at the time of the termination of this Lease and the present value
of unpaid rent that would have been earned from the date of such termination until the time this
Lease would have expired. All such amounts shall be immediately due and payable from Tenant.
16. Performance by Landlord . In the event Tenant fails to perform any of its
obligations under this Lease, Landlord may, at its option, perform such obligations on Tenant's
behalf without waiving the Event of Default. Tenant agrees to repay Landlord any expenses
incurred in such performance plus interest of twelve percent (12%) per annum from the date of
Landlord's payment or incurrence of such expenses.
17. Waiver. No delay or omission in the exercise of any right or remedy accruing to
either party upon any breach by the other party under this Lease shall impair such right or remedy
or be construed as a waiver of any such breach. The waiver by either party of any breach of any
provision of this Lease shall not be a waiver of any subsequent breach of the same or any other
provision herein contained.
Page 7 of 11
18. Duty to Mitigate Damages. In the event of a default by a party, the other party
covenants and agrees to take any and all reasonable and appropriate action needed to mitigate
damages incurred as a result of any such default.
19. Assignment and Subletting. Tenant shall not assign this Lease or sublet all or any
part of the Premises without the prior written consent of Landlord, which may be withheld in
Landlord's sole discretion. Notwithstanding the foregoing, within the sooner of (i) twelve (12)
months of the Effective Date or(ii) a sale or transfer of any portion of the Premises from the Land
Trust to a third party, the Land Trust shall assign this Lease to the Association on a form
satisfactory to the Landlord. Nothing in this Section prohibits the Tenant from establishing rules
and regulations for the Association.
20. Indemnification. Tenant shall indemnify, defend and hold Landlord harmless
from and against all losses, damages, liabilities and expenses (including, but not limited to,
reasonable attorneys fees),judgments, fines or penalties that result from any claim, action, suit or
proceeding (whether civil, criminal, administrative or investigative, including associated appeals)
arising out of any claims including, but not limited to, injuries to persons or property, sustained in
or upon the Premises and/or the Boat Dock during Tenant's possession or use thereof except to the
extent of negligence of or use by Landlord or its agents, invitees and guests. Landlord shall
indemnify, defend and hold Tenant harmless from and against all losses, damages, liabilities and
expenses (including, but not limited to, reasonable attorneys fees),judgments, fines or penalties
that result from any claim, action, suit or proceeding (whether civil, criminal, administrative or
investigative, including associated appeals) arising out of any claims including, but not limited to,
injuries to persons or property, sustained in or upon the Premises prior to Tenant's possession
thereof and the use of the Premises by Landlord or Landlord's agents and guests after the Tenant's
possession except to the extent of negligence of Tenant or its agents, invitees and guests.
21. General Provisions.
a. No change to or modification of this Lease shall be valid unless that change or
modification is in writing and is executed by the parties hereto.
b. No term, covenants or condition of this Lease shall be deemed to have been waived
unless such waiver is in writing and is signed by the waiving party. The acceptance of any rent
hereunder by Landlord shall not be deemed to be a waiver of any breach by Tenant of this Lease.
C. This Lease contains the entire agreement between the parties with respect to the
subject matter hereof.
d. This Agreement may be executed in any number of counterparts, each of which
shall be an original, and such counterparts together shall constitute one and the same instrument.
e. All notices, communications and demands hereunder shall be in writing and shall
be deemed to have been properly given if (i) delivered in person or (ii) sent by registered or
certified mail, postage prepaid, return receipt requested, to:
Page 8 of 11
If to the Tenant: with a copy to:
John Davis Froehling, Weber& Schell,LLP
24784 East Old Beach Road Ronald Weber
Canton, Illinois 61520 167 West Elm Street
Canton,Illinois 61520
If to the Landlord: with a copy to:
City of Canton City of Canton
ATTN: Mayor ATTN: City Attorney
2 N. Main Street 2 N. Main Street
Canton, Illinois 61520 Canton,Illinois 61520
or such other address as may be designated in writing. The notice shall be effective (i)upon
delivery and (ii)two (2) days after the date of mailing.
f. In the event any action or legal proceeding is commenced to recover Rent, to
terminate this Lease or to enforce any provision in connection with this Lease,the prevailing party
shall be entitled to recover as a part of such action or proceedings, or in a separate action brought
for that purpose, reasonable attorneys' fees and court costs as may be fixed by the court.
g. Should any provisions of this Lease prove to be invalid or illegal, such invalidity
or illegality shall in no way affect, impair or invalidate any other provision hereof, and such
remaining provisions shall remain in full force and effect.
h. Time is the essence with respect to the performance of every provision of this Lease
in which time of performance is a factor.
i. The captions used in this Lease are for convenience only and shall not be considered
in the construction or interpretation of any provision hereof.
j. This Lease shall, subject to the provisions regarding assignment, apply to and bind
the respective heirs, successors, executors, administrators and assigns of Landlord and Tenant,
including the members of the Association. The Association shall be responsible for ensuring
compliance with the terms of this Lease by its members.
k. This Lease shall be construed and enforced in accordance with the internal laws,
and not the law of conflicts, of the State of Illinois.
1. Each party had the opportunity to be represented by legal counsel during the
negotiation resulting in this Agreement. The parties agree that the rule of construction to the effect
that any ambiguities are to be resolved against the drafting party shall not be employed in the
interpretation of this Agreement
Page 9 of 11
in. When the context of this Lease requires, the neuter gender includes the masculine,
the feminine, a partnership or corporation or limited liability company or joint venture, and the
singular includes the plural.
n. Landlord represents and warrants that: (i)as of the Effective Date it is the fee owner
of the Premises; (ii) it has full power and authority to execute this Lease and, as of the Effective
Date,to convey to Tenant the leasehold estate granted herein; (iii)Tenant's quiet enjoyment of the
Premises shall not be disturbed by Landlord, any party claiming through Landlord, or any other
party, so long as Tenant is not in default hereunder beyond applicable grace period; and (iv)
Landlord's signatory to this Lease is authorized to execute the Lease on behalf of the Landlord.
Executed by the parties hereto as of the day and year first above written.
LANDLORD: TENANT:
CITY OF CANTON JOHN W. AND GLORIA D. DAVIS LAND
T ST 1, dated August 26, 2010
` R n
Kent A. McDowell, Mayor o W. Davis, Co-Trus ee
Attest:
ndrea J. Sni th-Walters,Acting City Clerk Gloria D. Davis, Co-Trustee
Prepared by and return to:
John J. McCarthy
Attorney at Law
209 East Chestnut Street
Suite 1
Canton, Illinois 61520
Page 10 of 11
Exhibit A
Legal Description of Premises
Part of the Northeast Quarter of Section 30, Township 7 North, Range 5 East of the Fourth
Principal Meridian, more particularly described as follows:
Beginning at an iron rod at the southeast corner of Lot 20 in Old Beach Addition,as shown on Plat
of Survey recorded November 7, 2017 as Document No. 1778527 in Slide 539, thence South 05
degrees 36 minutes 57 seconds West (bearings based on Illinois State Plane Coordinate System,
NAD83 (2011), West Zone) 166.29 feet to a fence post; thence North 88 degrees 10 minutes 25
seconds West 132.72 feet to an iron rod; thence North 01 degrees 09 minutes 00 seconds East
128.37 feet to an iron rod at the southwest corner of said Lot 20; thence North 77 degrees 19
minutes 27 seconds East along the southerly line of said Lot 20 a distance of 150.00 feet to the
Point of Beginning.
The above described tract contains 20,359 square feet, more or less, or 0.467 acres, more or less.
Page 11 of 11
e
Addendum to Real Estate Sale Agreement
This Addendum to Real Estate Sale Agreement is entered into on May 20, 2022 by and
between the City of Canton, an Illinois municipal corporation, hereinafter Seller, and the JOHN
W. AND GLORIA DAVIS LAND TRUST NUMBER. 1, hereinafter Purchaser.
The Seller and the Purchaser agree that the closing on the sale and purchase of the
property located on Dal Bar Road, Canton, Illinois, shall take place on or before July 20, 2022.
Thus, the closing date in the Real Estate Sale Agreement dated August 20, 2021 is amended to
on or before July 20, 2022.
All of the other terms and conditions of the Real Estate Sale Agreement entered into on
August 20, 2021 shall remain in full force and effect.
Entered into this 20"' day of May, 2022.
SELLER: BUYER:
CITY OF CANTON JO .�Nl) GLO A D. DAVIS
L ST 1
r
K nt Mc owel ,Mayor 1 W. Davis, Co- ustee
Attest:
Gloria D. Davis, Co-Trustee
Diana Pavley Roc , Ci Cler