HomeMy WebLinkAboutOrdinance #4319 ORDINANCE NO. Ll 3)9
ORDINANCE AUTHORIZING A LEASE OF MUNICIPALLY
OWNED REAL PROPERTY
WHEREAS,the City of Canton owns the following described real property:
Lots No. 26 and 27 of the Waveland Addition to Lake Canton,Fulton County,Illinois.
which property is generally located at 25891 N. Weldons Road, Canton, Illinois, has P.I.N. No.
10-09-30-205-003 and is currently used as residential real properly; and
WHEREAS, the City Council of the City of Canton has determined that it is in the best
interest of the City of Canton that it enter into a lease for municipally owned property and said
lease is attached hereto as Exhibit A; and
WHEREAS, pursuant to Section 11-76-2 of the Illinois Municipal Code, 65 ILCS 5/11-
76-2, notice has been given of the proposal to lease such real estate, said notice having first been
published on November 16, 2022 and having been published at least once in the Canton Daily
Ledger, a newspaper published in the county in which the municipality is located, not less than
15 nor more than 30 days before the date on which it is proposed to adopt this Ordinance; and
WHEREAS, pursuant to said notice, this Ordinance was adopted at the regular meeting
of the City Council held on December 6,2022; and
WHEREAS,the City Council finds and determines that the best interests of the City of
Canton and its residents will be served by the approval of the above-referenced lease.
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 Mark and Dawn Smith(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:
Lots No. 26 &27 of the Waveland Addition to Lake Canton, Fulton County, Illinois.
Commonly known as 25891 N. Weldons Road, Canton,Illinois
P.I.N.No. 10-09-30-205-003
3. 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 City Attorney is
authorized to make reasonable, final revisions, as he deems necessary, to the Lease
that are otherwise consistent with this Ordinance.
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 6th DAY OF DECEMBER, 2022.
AYES:
NAYES: Q
ABSENT: 0
APPROVED THIS 6TH DAY OF DECEMBER, 2022.
APPROVED:
�L�X'1A Ap
ent A. cDo e ,Mayor
ATTEST:
Andi Walters, City Clerk
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RECORDED ON
RECORDING FEE 67.00
CITY OF CANTON LEASE AGREEMENT
The City of Canton, an Illinois municipal corporation ("City") makes this City of Canton Lease
Agreement ("Lease") with Mark A. Smith and Dawn R. Smith (collectively "Lessee") on the
7th day of December, 2022.
A. The City is a non-home rule municipal corporation in the State of Illinois;
B. The City the owner of real property in Fulton County, Illinois that is described
below as the"Leased Property"or the "Property";
C. Lessees desires to lease the Property together with all improvements and fixtures
thereon and appurtenances thereto from the City pursuant to the terms and conditions of this
Lease; and
D. The City desires to lease the Premises together with all improvements and fixtures
thereon and appurtenances thereto to Lessee pursuant to the terms and conditions of this Lease.
E. The Property is located on or near Lake Canton (or the "lake" or "Canton Lake"),
which may serve as a water supply to the City;
F. The City must protect the lake from pollution, undue erosion, and other injury
which it can do best if it owns and ultimately controls the land but leases under terms and
conditions which will protect the lake.
AGREEMENT
In consideration of the foregoing and the terms, covenants and conditions contained in
this Lease,the City and Lessee expressly agree as follows:
1. DESCRIPTION: The real property leased to Lessee under this Lease (hereinafter the
"Leased Property" or the"Property") is described as follows:
Lots Number 26 and 27 in Waveland Addition to Lake Canton,in the County of Fulton, in
the State of Illinois.
Common Address: 25891 N.Weldons Road, Canton,Illinois 61520
P.I.N.: 10-09-30-205-003
2. TERM: The term of this Lease shall be for a period of forty (40) years from this date
provided that an additional year shall be added to its term on each anniversary date hereof so that
there shall always be a minimum of thirty-nine years and one day remaining on the term.
3. USE: Lessee shall use the Leased Property for residential purposes only. Lessee may not use
the Leased Property for any other uses or purposes. At all times,Lessee must take reasonable and
legal steps to protect the lake from pollution, undue erosion, and other injury.
4. RENT: Lessee shall pay rent to the City a sum of money representing ten percent (10%) of
the equalized assessed valuation of the land portion for real estate tax purposes. The assessed
valuation from the Quadrennial Reassessment shall be used to make the calculation, thus rental
rates will be readjusted as necessary every four years or upon the next Quadrennial
Reassessment. Payment of rent shall be made in advance on or before the first day of May. To
secure the payment of rent and other agreements in this Lease the City shall have the superior
lien(inferior only to mechanic's liens) on all improvements on the Leased Property in addition to
any other liens and remedies it may have at law. At the option of the City, its lien may be
enforced in equity or by distress or by foreclosure sale.
5. MORTGAGE: Notwithstanding the provisions of Paragraphs 13 hereof and in order to
promote the leasing, care and improvement of the Lake Canton and its surrounding areas, Lessee
may mortgage the leasehold hereby granted, together with all improvements now or by Lessee
hereafter on the leased premises, and the mortgagee and assigns may cause this Lease and such
mortgage or either of them to be filed for record in the Recorder's Office of Fulton County and
enforce said mortgage and acquire title to the leasehold and such improvements in any lawful
way and rent the Leased Property pending foreclosure and acquisition and disposal of title, and
the mortgagee or assigns may sell and assign said leasehold and improvements. No default or
action by Lessee or those claiming through or under Lessee shall be effective as against the
mortgagee or the mortgagee's assigns, unless the mortgagee or the mortgagee's assigns fail to
pay, or cause to be paid, within thirty (30) days after being served with written notice thereof,
any delinquent taxes on the leasehold or improvements thereon, or sums then owing to the City
under said Lease. The mortgagee and assigns shall comply with the provisions of the Lease in
the like manner as Lessee is required to do in the event the mortgagee should acquire title to the
leasehold. The rights under this Paragraph are limited only to the leasehold and
improvements, and under no circumstances may the Lessee mortgage the Property.
6. TAXES: Lessee shall be solely responsible and pay all taxes and assessments on the Leased
Property and its improvements before they become delinquent. Failure to pay such taxes by their
due date shall be deemed a default of this Lease.
7. UTILITIES: Lessee shall be solely responsible for an 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. Lessee 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 Leased Property.
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8. RESIDENCE: Lessee may use up to 80 x 100 feet of the Leased Property to build and then
occupy one single family residence and appurtenances. Lessee shall not have more than one
residential dwelling on the Leased Property at any one time.
Before commencing any new construction, Lessee must submit all necessary plans, as
determined in the City's sole discretion, showing plumbing and sewage disposal, location on lot,
etc. to the City and obtain written approval (i.e. building permit, if required) from the City.
Lessee must additionally obtain written approval (i.e. a building permit, if required) from Fulton
County. If Lessee commences any such construction without such approvals, the City may
remove Lessee's improvements and charge Lessee for the removal. No one else's lien may
attach to any improvement built without the City's written approval.
Lessee may place on the leased premises items such as a garage, dock, boat lift or other related
structure. If said garage, dock, boat lift or other related structure is found in disrepair, Lessee has
thirty (30) days after notice from the City to either correct the defective conditions of said
garage, dock, boat lift or other related structure or remove and replace them. If the garage, dock,
boat lift or other related structure is replaced, whatever has been removed shall properly be
disposed of in accordance with all applicable laws, rules and regulations. Repair and/or removal
and replacement shall be at the sole expense of Lessee. If Lessee fails to correct the defective
condition within the thirty (30) day period,the City reserves the right to take any remedial action
necessary to correct the condition, including demolishing the garage, dock, boat lift or other
related structure and disposing of same. The City shall be reimbursed by Lessee for any and all
costs associated with the City's required remedial action, whether City engages in the corrective
work or demolition work itself or hires a third parry to engage in same.
Lessee shall follow all ordinances, rules and regulations adopted by the City Council of the City
of Canton, Illinois, applicable to Lake Canton and/or the Leased Property. Failure to comply
with said ordinances,rules, and regulations may be deemed a default of this Lease.
9. PRIVATE SEWAGE DISPOSAL SYSTEMS: Private sewage disposal systems shall be
permitted, installed, maintained and replaced in accordance with the rules and regulations as
prescribed by the Illinois Department of Public Health, Fulton County Health Department,
Illinois Environmental Protection Agency and U.S. Environmental Protection Agency. Private
sewage disposal systems shall be inspected, at the cost of the Lessee, for proper operation and
sludge levels at the time of the execution of this Lease, a Lease.renewal, or transfer of this Lease.
Documentation from the inspection shall be submitted to the City within five (5) days of the
inspection completion. Private sewage disposal systems shall have tanks pumped for solids
removal by a licensed tank cleaning company every three (3) years. Documentation from the
tank cleaning company verifying their work has been completed shall be submitted to the City
within five (5) days of completion of their work. The systems shall be inspected by the Fulton
County Health Department every ten (10) years. Documentation of completion of said
inspections by the Fulton County Health Department shall be provided to the City within five (5)
days of completion of their inspection. The systems utilizing aeriation equipment in conjunction
with disinfection tanks shall have proper disinfection chemicals installed and must be functional
at all times. Discharges from private sewage disposal systems shall not cause erosion issues or
contribute to soil migration and those found to cause these issues must be replaced by Lessee at
Lessee's expense.
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If Lessee's private sewage disposal system is found in disrepair, Lessee has thirty (30) days to
either correct the defective conditions of said system or remove and replace said system. If the
system is replaced it shall properly be disposed of in accordance with all applicable laws, rules
and regulations. Repair and/or removal and replacement shall be at the sole expense of Lessee.
If Lessee fails to correct the defective condition within the thirty (30) day period, the City
reserves the right to take any remedial action necessary to correct the condition and dispose of
the system. The City shall be reimbursed by Lessee for any and all costs associated with the
City's required remedial action, whether City engages in the corrective work itself or hires a
third party to engage in same.
10. INSURANCE: Lessee shall obtain insurance on any improvements located on the Leased
Property and shall be solely responsible for all necessary liability or casualty insurance for the
Leased Property or any contents thereof. The City shall not be liable for any injuries to any
persons or damage to Lessee's property or the Leased Property, and the Lessee holds the City
harmless from same.
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 Lessee's improvements or
other property of Lessee 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
Lessee's improvements or other property of Lessee by said raising/lowering of the water levels
of Lake Canton.
12. GENERAL REGULATIONS: Lessee will:
a. Keep the Leased Property neat and clean and free from noxious weeds and debris. Also,
Lessee will maintain the improvements in good repair;
b. Install and maintain such facilities for the disposal of sewage, solid or liquid waste as
may be required by the City, Fulton County Health Department, State Department of
Public Health or other public authority for sanitation and public health. If sewer
connections are available and the City so orders, Lessee will connect to the sewer. In no
instance will Lessee allow sewage to enter the lake from the Leased Property;
c. Care for and protect from injury all shade and ornamental trees, shrubbery, and sod and
Lessee will not remove, trim, or permit the removal or trimming of any trees more than
three inches in diameter without the consent of the City;
d. Not permit any of the Leased Property to be denuded of vegetation or to be cultivated in
such manner as to cause or permit soil erosion. Further, Lessee agree to maintain the
shoreline in good condition;
e. Exclude the general public from the Leased Property and from that part of the lake within
25 feet of the shoreline of the Leased Property(except as to navigation);
f. Obey all rules, regulations, and ordinances of the City pertaining to leased lots, the lake
and surrounding lands and will not allow violations by Lessee's family, Lessee's guests
or any other person on the Leased Property;
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g. Not permit on or near our lot anything in violation of any law — State, Federal, or
municipal — or the regulations of any public authority, nor use or permit the premises to
be used for any immoral or illegal purposes;
h. Not cause nor permit any objectionable noise or odor to be emitted from the Leased
Property; nor will Lessee keep on the Leased Property any domestic livestock,poultry, or
noisy or dangerous dog;
i. 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 property;
j. Not allow yard waste including grass clippings, leaves or like material to enter the lake
from the Leased Property;
k. 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;
1. Not extend any structure into the lake such a dock, boat lift or any other structure more
than fifteen feet(15')from the normal shoreline without express consent of the City. The
"normal shoreline" is determined when the water level is even with the top of the
spillway. Lessee will not install any separate structure such as a fence, post, etc. below
the normal water surface.
13. TRANSFER: Lessee may not assign or transfer this Lease or any interest in Lease without
the consent of the City; however, Lessee may mortgage the leasehold. Under no circumstances
may the Lessee mortgage the Property. This Lease may not be transferred by a mortgagee,
receiver, trustee in bankruptcy or other representative of Lessee nor may it be transferred by
operation of law, legal process or any other means whatsoever without the written consent of the
City, which consent will not be unreasonably withheld. No part of the leased premises may be
used by any person other than the Lessee, Lessee's family, guests, agents and employees without
written consent of the City.
Lessee understands that the annual rent may be adjusted upon transfer.
Should Lessee desire to assign or transfer this Lease to any other person, Lessee shall first give
written notice to the City with the name of the proposed transferee.
No transfer shall be effective unless notice is given to the City, the City approves of the
transfer/assignment, a new lease is prepared by the City and the new lease, when signed, is filed
with the Fulton County Recorder.
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14. VOLUNTARY CANCELLATION: Lessee may surrender this Lease if Lessee has fully
performed Lessee's duties and thus be relieved of any further obligation under this Lease.
15. RESERVED RIGHTS OF CITY:
a. Lessee understands that the City requires exclusive use of the Leased Property for any
public purpose, which is inconsistent with Lessee's occupancy of it, the City may
terminate this Lease by giving me six months written notice of its intention and paying
Lessee for the value of Lessee's improvements. If the City exercises its rights hereunder,
it shall pay to Lessee an amount equal to the value of the premises which shall not exceed
the fair market value of the premises. In the event that the City and Lessee cannot agree
as to the fair market value of the premises, each shall select a.qualified professional real
estate appraiser, and the appraisers so selected shall select a third qualified professional
real estate appraiser, and the fair market value of the premises shall be the average of the
highest and lowest appraisals submitted by these three appraisers.
b. Representatives of the City may come upon the Leased Property as follows:
(1)At any and all times for the purpose of inspecting.
(2) At any time to gain needed access to other land.
(3) To plant and care for trees and other vegetation.
(4) To construct, operate and maintain sewer, water and gas pipes, electrical lines and
pipes and lines for other services and their appurtenances.
(5)To improve and protect the shoreline.
(6) To do any other work necessary to maintain the lake or its structures.
c. 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 15, including but not-limited to the entering upon the Leased
Property for any of the above reasons.
16. DEFAULT: Lessee understand that the City may, at its option,terminate this Lease:
a. If Lessee fails to perform Lessee's duties under this Lease, or is otherwise in default of
this Lease as set forth elsewhere in this Lease, and fail to remedy the non-performance or
other default after sixty (60) days written notice from the City.
b. If Lessee fails to vacate at the end of the Lease term.
c. If the Lease has been transferred other than in accordance with the provisions in
paragraph 13.
d. Upon termination, the City may without further demand or notice, enter and take
possession of the premises and expel Lessee or anyone else found there without being
guilty of forcible entry of trespass and without liability for loss or damage. All buildings
and other improvements at the option of the City may become the City's property in full
settlement as liquidated damages.
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In addition to the foregoing, the City may take any and all actions available at law or in
equity to enforce the terms and conditions of this Lease. In the event the City must enforce the
terms and conditions of this Lease, then the Lessee shall be responsible for all reasonable
attorney's fees and court costs incurred by the City in relation said enforcement.
17. 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.
c. This Lease contains the entire agreement between the parties with respect to the subject
matter hereof.
d. All notices,requests, consents and other communications required or permitted under this
Lease shall be in writing (including email) and shall be (as elected by the person giving
such notice) hand delivered by messenger or courier service, emailed, or mailed by
registered or certified mail (postage prepaid),return receipt requested, addressed to:
If to the City:
City of Canton
ATTN: Mayor
2 N. Main Street
Canton,IL 61520
with a copy to:
City of Canton
ATTN: City Attorney
2 N. Main Street
Canton, IL 61520
If to Lessee:
Mark and Dawn Smith
1000 S. Illinois Street
Lewistown, IL 61542
or to such other address as any party may designate by notice complying with the terms of this
Section. Each such notice shall be deemed delivered (a) on the date delivered if by personal
delivery; (b) on the date of transmission with a sent confirmation if by email; and (c) on the date
upon which the return receipt is signed or delivery is refused or the notice is designated by the
postal authorities as not deliverable, as the case may be, if mailed.
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e. Counterparts. This Lease may be executed in any number of counterparts, each of which
shall be an original, but all of which, taken together, shall constitute one instrument.
Delivery of an executed counterpart of a signature page of this Lease by facsimile or pdf
electronic mail shall be as effective as delivery of a manually executed counterpart of this
Lease. The parties expressly agree.that a copy of the original signature (including an
electronic copy) may be used for any and all purposes for which the original signature
may have been used. The parties further waive any right to challenge the admissibility or
authenticity of this Lease in a court of law based solely on the absence of an original
signature.
18. TERMINATION OF PRIOR LEASE: The Lessee unconditionally releases,
indemnifies, holds harmless, acquits, and forever discharges the City, as well as any of its
predecessors, successors, and assigns, present and former parents, subsidiaries, elected officials,
mayors, city clerks, treasurers, members of City Council, department heads, sextons, affiliates,
investors, officers, directors, trustees, shareholders, employees, former employees, independent
contractors, agents, representatives, heirs, estates, executors, administrators, attorneys, and/or
insurers, all collectively referred to as "Releasees," and each of them, from any and all charges,
complaints, claims, promises, agreements, controversies, suits, demands, costs, losses, debts,
actions, causes of action, damages,judgments, obligations, liabilities, and expenses of whatever
kind and character, known or unknown, suspected or unsuspected, including any claims for
attorneys' fees and costs, which the undersigned parties, now have, own, hold, or claim to have,
own, or hold, or may have had, owned, or held, or may in the future claim to have, own, or hold
against the Releasees, or any of them, arising from, in connection with or related to any prior
lease related to the Leased Property, including the Lakeshore Lease dated September 22, 1998.
Upon the execution of this Lease by the City, the City shall be deemed to consent to the
assignment of the City of Canton Lakeshore Lease dated September 22, 1998, which was
assigned on or about the date of this Lease. Lessee hereby agrees that said prior Lakeshore Lease
and/or any other leases previously covering the Leased Property shall be deemed null, void, and
of no further effect upon the execution of this Lease by the City of Canton.
[Remainder of Page Intentionally Blank]
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LESS E:
Mark A. mith Dawn R. Smith
OFFICIAL SEAL
STATE OF ) MARY E HECK
ss. NOTARY PUBLIC,STATE OF ILLINOIS
COUNTY OF fie/. ) My COMMISSION EXPIRES 06/25/2024
I, the undersigned, a Notary Public in and for said County in the State aforesaid, do
hereby certify that Mark A. Smith and Dawn R. Smith, personally known to me to be the same
person(s)whose name(s) are subscribed to the foregoing instrument, appeared before me this day
in person and severally acknowledged that he signed, sealed, and delivered the said instrument as
his free and voluntary act for the uses and purposes therein set forth.
Given under my hand and notarial seal, this � day of 2, , 2022.
A&I 5�/&/
Notary is
CITY OF CANTON:
CITY O CANTON, ILLINO
By:
Kent A. McDowell,Wor
Attest:
An a J. Sm' -Walters,Acting City Clerk
STATE OF ILLINOIS, )
) ss.
COUNTY OF FULTON )
I, the undersigned, a Notary Public in and for said County in the State aforesaid, do
hereby certify that Kent A. McDowell, Mayor and Andrea J. Smith-Walters, Acting City Clerk,
of the City of Canton, Illinois,personally known to me to be the same persons and such officers,
respectively, whose names are subscribed to the foregoing instrument, appeared before me this
day in person and severally acknowledged that they signed, sealed and delivered the said
instrument as the free and voluntary act of the said City, for the uses and purposes therein set
forth,pursuant to due authority conferred by its Council.
Given under my hand and notarial seal,this day of pCaM beA=:,, 2022.
ENOTARY
FF161AL SEAL Notary Pub]
ROL E KOHLER
UBLIC,STATEOF ILLINOIS9 EXPIRES:10/0212026
h e 1
Send tax notice to:
Mark and Dawn Smith
1000 S. Illinois Street
Lewistown, IL 61542
This instrument prepared by and return to:
City Attorney
City of Canton
2 N. Main Street
Canton,IL 61520
Telephone (309) 647-0065
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