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HomeMy WebLinkAboutResolution #0715First reading 11/9/76. Laid over * 1Q-4-76 ~ . ~' ~. ~.~-- R E S ~) L U T I O N ~~ (A Resolution conditionally committing participation of the City of Canton, Illinois to limited participation in pro- _----posed redevelopment of a portion of its Downtown or Central Business District.) WHEREAS, the "Downtown" or Central Business District of the City of Canton, hereinafter called the "City" Illinois (or, at least portions thereof) by reason of old age and obsolesence has degenerated and is no longer functionally well nor is capable of serving its present-day citizenry and surrounding community; and, WHEREAS, for purposes herein, the said Downtown or Central Business District of this City is defined or considered as that area generally bounded on the North by Locust Street; on the South by Pine St.; on the East by First Avenue; and on the West by Main Street; and, WHEREAS, the corporate authorities of this City, by Reso- lution, passed after public hearing and notice and upon the recommenda- tions of a Citizens Committee in the premises thereof thereto prior appointed, did declare a defined area in this City (in- cluded in the Downtown or Central Business District as herein above described), as a blighted area within the meaning of I11. Rev. Sta.ts. 1975, Chapter 24, Sections 11'-74.2-1 et seq.; and, WHEREAS, by Ordinance No. , adopted by the corporate authorities of this City January , 1976, the City thereby adopted a comprehensive plan outlining and defining land use for certain territory within this City as therein defined and including therein the Downtown or Central Business District of this City as herein defined, pursuant to Ill. Rev. Stats. 1975, Chapter 24, Sections 11-12-4 et seq.; and, WHEREAS, Fulton Square Corporation has acquired the parcel herein described as "Parcel A" within that said Downtown or Central Business Di.stri.ct of this City and has made proposals in- volving the development thereof by private enterprise and, also further contemplating the participation of this City therein; and, -1- ,ti '.' WHEREAS, said plan or proposal, generally speaking, in- visions that this City would purchase from said Fulton Square its said realty and would then make available a portion there- of on the Southerly end thereof, together with that portion of Chestnut Street lying northerly of Jones Park of said City and a portion of Jones Park itself, for the construction thereon, by private enterprise, of a retail building or buildings for commercial retail use and further, which contemplates that said City would develop a Municipal Parking Lot on the remainder of said land lying Northerly of the area thereof proposed for the construction of improvements thereon, as foresaid; and, WHEREAS, said plan further contemplates the reversion of all City land unto this City after the expiration of a time certain (so that future generations may yet have the ability to modify the downtown format of this City according .to the needs of the future; NOW, THEREFORE, £jE IT AND IT HEREBY IS RESOLVED BY THE CORPORATE AUTHORITIES OF THE CITY OF CANTON, ILLINOIS, AS FOLLOWS: I. That, conditioned on the fulfillment of CONDITIONS PRE- CEDENT, hereinafter set forth, this City shall proceed in the premises hereof as follows: A. This City shall acquire by purchase from Fulton Square Corporation the fee simple title by warranty deed in and to the following described realty in the manner and way herein- after set forth and for utilization for purposes hereinafter set forth: -2- ,. .. e ,~ PARCEL A: Description: All of that realty situated in the City of Canton, in the County of E'ultan and in the State of Illinois bounded by the following named Streets or ways in the said City of Canton, Illinois: On the South by Chestnut Street; on the North by Locust Street; on the West by Main Street; and, on the East by First Avenue, EXCEPTING THERE- FROM HOWEVER that portion thereof described as follows: A part of Lot 107 in the original Town of Canton, Fulton County, Illinois described as follows: Commencing at the southwest corner of said lot running thence east on Chestnut Street 28 feet, thence north 113 3/4 feet, thence west 28 feet to Main Street, thence south to place of beginning. Said portion is hereinafter referred to as the Northeast corner of Main Street and Chestnut Street. (1) Municipal Par}:ing Lot (a) Manner and Wad of Acquisition: That northerly portion of Parcel A (which is hereafter determined and defined for utilization as a Municipal Parking Lot) shall be acquired under the power and authority bestowed on said City under the provisions of Ch. 24, Sec. 11-71-1 et seq. of the Illinois Revised Statutes. Said portion shall hereinafter be referred to as the Municipal Parking Lot. The purchase shall be pursuant to an agreement in writing, between the City and Fulton Square Corporation called the "Municipal Parking Lot and Commercial Facility Lot Purchase Agreement." Said agreement shall provide that the purchase price to be paid to Fulton Square Corporation for the Municipal Park- ing Lot shall consist of the sum of $575,000.00 on condition, however, that funds constituting the purchase price shall be provided said City by issuance of Municipal Revenue Bonds there- for in said sum of $575,000.00 at 7~ per annum interest for a term of 30 years. Said Bonds shall be purchased pursuant to an agreement in writing called the "Bond Purchase and Loan Agreement" between the City and Canton State Bank, Canton, Illinois; The National Bank of Canton, Canton, Illinois; Community Bank and Trust Co., -3- • , Canton, Illinois; and Mutual Savings and Loan Association, Canton, Illinois, by said institutions or their designees in such proportions as by them may be determined. The bond indebtedness shall be paid from revenue provided from the following sources: (i) Rental of the use of the Municipal Parking Lot or of a portion of said Parking Lot (not in im- pairment of the public parking use thereof) in the amount of $47,250.00 per annum to be paid by Fulton Square Corporation during the time that any revenue bonds are outstanding pur- suant to an agreement in writing called the "Parking Lot Lease Agreement" between the City and Fulton Square Corpora- tion, said amount to be secured by the assignment of rental income from a lease or leases by Fulton Square Corpora- tion resulting in commercial retail or office use of that land area southerly adjacent and contiguous to that portion thereof herein contemplated for use as said Parking Lot, which is described herein as the Commercial Facility Lot; (ii) or an alternative method of payment agreeable to the City. Other than the payment from the source or sources specified above, it shall be a condition of said revenue bonds that said City is under no obligation, legal or moral, to make any contribution to the payment. of principal or in- terest in the retirement of said bonds. In the event of default of said bonds, there shall be no recourse by the holders of the bonds against the real property consisting of the Municipal Parking Lot or the improvements thereon. The purchase of the Municipal Parking Lot by the City is also contingent on the entry into between the City and Fulton Square Corporation of a written lease hereinafter called the "Redevelopment Lease" which provides for the construction by Fulton Square Corporation or a sublessee of a commercial fac- ility hereinafter described on the Commercial Facility Lot. -4- This purchase of the Municipal Parking Lot shall not be closed until after Fulton Square Corporation or its sublessee obtain construction and permanent financing loan commitments to build and finance the commercial facility said commit- ment to be in form satisfactory .to the City~and until the City receives such reasonable assurances as are necessary to insure that construction of the commercial facility will take place. (b) Improvement and Maintenance of the Municipal Parking Lot: The Municipal Parking Lot herein contemplated shall be improved with parking amenities and means of vehicular and pedestrian ingress and egress general conformity to; and ti planned usage with respect to developed on adjacent realty, not in excess of $250,000.00. current funds of said City by said City in manner and in Wing and conjunction with the facilities developed and to be but at a total cost to the City This cost shall be provided by Pursuant to the Parking Lot Lease Agreement between the City of Canton and the Fulton Square Corporation, customers of the Fulton Square sublesses shall have, along with the public, the right to use the Municipal Parking Lot. Fulton Square Corporation will assume the responsibility for the re- pair of the Municipal Parking Lot during the term of lease. The City shall be responsible for day-to-day maintenance in- eluding cleaning and snow removal. The term of the Parking Lot Lease shall be co-terminous with the Redevelopment Lease. (c) Parking Lot Charges: Unless there is mutual agreement in writing of the Fulton Square Corporation and the City, there shall be no patron charge for use of the Municipal Parking Lot herein contemplated so long the provisions hereinabove made for the retirement of the bonds herein contemplated are adequate therefor, and the bonds shall contain a provision stating that the City is not required to make any charge for the use of said parking lot -5- for the payment of said Bonds, even if said Bonds should be in default. (d) Other Provisions with Respect to Municipal Parking Lot: The legal description of the Municipal Parking Lot herein contemplated shall be delineated by land survey description obtained by Fulton Square Corporation at its expense prior to the issuance of the Bonds therefor herein contemplated or at such earlier time as may appear necessary to the City. Fulton Square Corporation shall, prior to closing, also furnish at its expense, a title commitment in the amount of the purchase price from the Chicago Title Insurance Company, or other reputable Title Insurance Company satisfactory to the City and Fulton Square Cor- poration, free and clear of liens and encumbrances and without any exceptions objectionable to the City. At the absolute determination and discretion of the City, consideration will be entertained by the City for the utiliza- tion of portions of both First Avenue and Main Street between Locust and Chestnut Streets as parking areas in the implementa- tion of the premises hereof and upon a showing by Fulton Square Corporation of need therefor. (2) Commercial Facility Lot (a) Manner and Way of Acquisition: The remainder of Parcel A, called the Commercial Facility Lot, is hereby proposed for the development of a commercial facility (in conjunction with other realty thereto southerly and contiguous) and shall therefor be acquired under power and authority bestowed on said City under the provisions of Ch. 24, Sec. 11-74.2-1 et seq. of the Illinois Revised Statutes. The terms of the purchase of this portion of Parcel A shall be pursuant to the Municipal Parking Lot and Conunercial Facility Lot Purchase Agreement. The purchase price shall be the sum of $675,000 on condition, however, that the funds to pay for the -6- ~ ,~~ , ~~•urchase pricey shall be providc~Q as follows: IIy a loan in the amount of $675,000 to said City by the four financial institutions hereinbefore ment.a.oned, the specific terms to be pursuant to the ~3ond I~urcYiase and Loan Agreement. For said loan, the City shall deliver a non-assignable promissory note, payable i.n 30 years at the rate of 5~ interest per an- num, the monthly repayment of which shall be specially con- ditioned on the availability of revenue, the source of which is the sales tax ( or any other substitute therefor) from re- tail outlets of the City based on the following formula: Until such time as the Facility has 40,000 square feet of leased space for retail use, which space is leased to and oc- cupied by tenants who have as their principal business retail merchandising, the available revenue shall not exceed the sales tax revenue actually generated by retail sales of business oc- cupants of the Facility. The note shall provide that if pay- ments made until said time are not adequate to cover all or part of interest, the interest not covered shall be abated. At the time said 40,000 square feet has been leased and occupied, a "base" year shall thereby be established, consisting of and having reference to the total sales tax collected by the City in the preceding 12-month period. Thereafter, except in any year when less than 40,000 square feet of leased space is occupied by tenants who have as their principal business retail merchandising, the revenues shall consist of that amount which is in excess of the total sales tax collected in said base year, provided, how- ever, the annual payment need not exceed an amount whereby the average annual payment, excluding those years in which less than 40,000 square feet of space is leased to and occupied by tenants who have as their principal business retail merchandising, exceeds $43,500 per year. Unless the City elects to make prepayment, in respect to those years in which the base formula applies, no more than $43,500 shall be paid in any year in respect to which the av- erage of such prior years' payment is equivalent to $43,500 per year. In the event for any year. after the establishment of a base year less than 40,000 square feet of: leased space i.s leased and oc-• cupit~d by tenants who have as th~a.r pi:i.nci.pal business retail -7- merchandising, then the amount payable on the Hate Pram revenue for-that year, if available, shall not exceed an amaunt i.n ex- - cess of the sales tax revenue actually generated by retail sales of business occupants of L-he Facility. If payments made are not adequate to cover all or part of the interest, the interest not covered shall be abated. After the e}:piration of the term of the note, the balance of the principal due, if any, shall con- tinue to bear interest at the rate of 5~. The City shall con- tinue to make payment of principal and interest from available revenue, in the manner heretofore set forth. The City may make prepayment of principal without penalty, if prepayment is made, said prepayment shall be applied to installments in the order of their maturity and shall not accelerate the remainder of in- stallments due. In the event of non-availability of the revenue hereinabove contemplated whether in whole or in part, there shall be no legal or moral obligation on the part of the City to repay said promissory note, whether in whole or in part. The City does not and shall not in any manner pledge its full faith and credit in payment of said note. --7a- The purchase of the Commercial Facility Lot by the City is contingent on the City's purchase of the Municipal Park- ing Lot and on the entry into between the City and Fulton Square Corporation of lease in writing called the "Redevel- opment Lease". The Redevelopment Lease shall be non-assign- able, except with the written consent of the City, for a period of 60 years from date at and for the consideration of $1.00 per year and other good and valuable considerations which consist, in whole or in part, of the actual construction and commercial utilization of a commercial facility on said Commercial Facility Lot and, on realty yet southerly con- tiguous thereto which is hereinafter described and delineated. At the end of the lease term of 60 years, the lessee shall have the right to extend the lease for terms, the last of which shall not exceed 30 years from the end of the f.irsi: lease term_of 60 years if the lessee agrees to pay the City the fair, reasonable, rental value for the leased premises,for~any extension, At the termination of the lease and extension thereof if said lease is extended, all interest of the lessee shall expire and the City shall be sole owner of the premises and all improve- ments thereon. The property shall be free and clear of all encumbrances and it shall be the responsibility of the lessee to remove any such encumbrances thereon and execute documents as may be requested by the City to ensure the City's clear title. This lease shall be made in accordance with the power, authority and provisions of Ch. 24, Sec. 11-76-1 et seq. and or any other statutory authority consonant with the premises hereof. (b) Usage of Commercial Facility Lot: The Redevelopment Lease of the Commercial Facility Lot shall provide and shall contain conditions that the lot shall be utilized solely for the construction thereon of a commercial facility consisting of one or more bua.ldings whose primary pur- pose and subsequent utilization is that of offering and selling -8- goods and services at retail. The building or buildings shall consist of a minimum interior space of not less than an area adequate to support leases which will service the revenue bonds. to be issued for the purchase of the parking lots or no less than 40,000 square feet if Fulton Square furnishes revenue for the payment of said bonds from other sources satisfactory to the City. The building or buildings shall be generally placed on the leased realty in manner and position. agreeable to the City. The exterior of such buildings or build- ings exposed to public view shall be of substantial masonry construction with a format of design on all exterior facets having prior approval of City. In the implementation thereof, said Fulton Square Cor- poration, by express terms of the Redevelopment Lease herein- above contemplated, shall have the power to sublease the Commercial Facility Lot by a Redevelopment Sublease in writing to such persons or entities of its choice: (a) who will thereon construct a commercial facility; and (b) who will operate the same for the intended purposes hereinabove set forth. Further, both the leash and the sublease shall contain such other pro- visions as the City deems necessary to protect its interests, but such provisions will not be in contravention of (the intent of) this Resolution. The purchase of the Commercial Facility Lot shall n.ot be closed until after Fulton Square Corporation or its sublesse obtains construction and permanent loan commitments to build and finance the commercial facility in a form satisfactory to the City and until the City receives such reasonable assurances as are necessary to insure that the construction of commercial facility will take place. No-such Redevelopment Lease shall be entered into unless Fulton Square Corporation also enters into a Parking Lot Lease Agreement with the City which shall first insure to the City the money or income necessary to fully pay, on an annual basis, the sums hereinabove mentioned for use in the retirement of the Revenue Bonds. -9- F (c) Other Pravi.sions With Respect to Commercial Facility Lot: The legal description of the Commercial Facility Lot herein contemplated and insofar as it appertains to Parcel A shall be delineated by land survey description pursuant to survey obtained at the expense of Fulton Square Corporation prior to the issuance of promissory note therefor herein contemplated or at such earlier time as may appear in the opinion of the City necessary in consideration of the prem- ises hereof. Fulton Square Corporation, at its expense shall also furnish to the City a Title Commitment from the Chicago Title Insurance Company, or other reputable Title Insurance Company satisfactory to the City and Fulton Square Corporation, in the amount of the purchase price free and clear of all liens and encumbrances and exceptions except as may be permitted by the City prior to closing. The actual acquisition thereof shall be timed contempor- aneous with other acts and doings (hereinafter set forth) im- i ,~2.~`~l plicit in the premises hereof . and ~~,s ~ °'~ ~ ~ ~~ Suitable insurance against liability ^ in amount and by policy acceptable to City shall be timely procured and at all times maintained acceptable to said City at the joint and sev- eral expense of Fulton Square Corporation and sublessee. Notwithstanding the foregoing provisions relating to the payment for said Commercial Facility Lot, City may also elect, in its own absolute discretion, to make payment for improve- ments thereon for the Commercial Facility by use of Commercial Blight Legislation, or an~ other laws applicable and feasible, whether in whole or in combination. (3) Other Parcels of Realty (a) Portions of Chestnut Street (i) Following its acquisition of Parcel A, City will set about and seek the acquisition in fee simple of that portion of Chestnut Street which lies contiguous and southerly of said Parcel A. The City will prepare the necessary ~10- 1 vacation papers to vacate the North one-half of said portion of Chestnut Street. (ii) As to the South one-half of Chestnut Street lying southerly contiguous to said North one-half and west of west right-of-way line of North First Avenue and east of the east right-of-way line of North Main Street, the City will proceed in the following manner: (aa) As to that portion thereof lying between the East right-of-way line of that street in said City commonly referred to as "East Side Square" and the West right-of-way line of North First Avenue, the City will seek a quitclaim deed, expressly conveying after acquired title from the owner or owners of the realty thereto southerly con- tiguous (which realty was formerly known and referred to as "Scripps-McCartney & Co."). Thereupon, having so acquired such a quitclaim deed thereof, City will then vacate said por-• tion of Chestnut Street in the same manner as hereinabove pro- vided with respect to the north one-half thereof. (bb) As to that portion thereof lying between the east and west right-of-way lines of "East Side Square" said right-of-way lines being extended northerly to the center line of Chestnut Street, City will then vacate .said portion of Chestnut Street in the same manner as hereinabove provided with respect to the north one-half thereof. (cc) As to that portion of Chestnut Street thereof lying between the East line of Main Street and the west line of East Side Square, the City will seek to perfect title to the Parking Area abutting the south line of Chestnut Street be- tween East Side Square and Main Street. A title commitment from Chicago Title Insurance Company or other Title Insurance Company satisfactory to the City will be obtained from the Title In- surance Company to determine the current status of title, and thereafter, if necessary, City will determine, within what the City determines to be its range of cost feasibility, as solely determined by it, whether to undertake such legal steps as are necessary to perfect conveyable title. If the City then takes -11- V, '~ such action which results in perfecting title and the perfected fee is insured as such by the Title Company, or if the title commitment aforesaid is issued without lega]. action, the Gi_ty will then vacate said south one -half of Chestnut lying northerly and adjacent to the fee so acquired. If, i.n respect to the action to be taken in accordance with this paragraph any other title in- surance company is used other than Attorneys Title Guarantee Company, the City will bear the cost of title insurance on the land. (iii) Following acquisition in fee of Northeast corner of Main and Chestnut Streets (as contemplated in d(i) hereinafter) the City will proceed in the vacation of the north one-half of Chestnut Street thereto contiguous, in the same manner as hereinabove provided with respect to the vacation of other portions of the north one-half of said street. All portions of Chestnut Street obtained by City shall be leased to the Fulton Square Corporation pursuant to the terms of the Commercial Facility Lease, except that required for public pedestrian and emergency vehicle access. (b) Parking Area Abutting the South Right-of-Way Line of Chestnut Street between Main Street and East Side Square. (i) City will seek to perfect title to Parking Area abutting the south right-of-way line of Chestnut Street between Main Street and East SideSquare in fee simple. To this end, a title commitment will be obtained from Chicago Title Insurance Company or other Title Insurance Company acceptable to the City as set forth in (3) (a) (ii) (cc) above and litigation, if necessary, and the City so elects, shall be undertaken to perfect a conveyable fee. The determination to follow such procedure and to proceed to such a policy shall be the sole determination of City. (ii) Said Parking Area shall, in consumation, be leased to Fulton Square Corporation pursuant to the terms of the Commercial Facility Lease. -12- a r (c) East Side Square (i) The City will vacate the north 60 feet of the east half of East Side Square in the manner set forth in (3)(a)(ii)(aa) if redevelopment plans require acquisition. (ii) The City will vacate the north 60 feet of the west half of White Court in the manner set forth in (3)(a)(ii)(cc) if redevelopment plans require acquisition. (d) Northeast Corner of Main and Chestnut Streets. (i) For use as an addition to that portion of Parcel A hereinabove contemplated as the Municipal Public Parking Lot City will seek to acquire in fee that realty referred to herein as the Northeast Corner of Main Street and Chestnut Street. This realty will be sought by agreed pur- chase from the owner or, failing that, by condemnation under the powers conferred by City under the provisions of Ch. 24, Sec. 11-71-1 et seq. (ii) The acquisition of the Northeast Corner of Main Street and Chestnut Street is contingent on Fulton Square Corporation, contemporaneously with the closing of Parcel A depositing $100,000 with the City or in an escrow satisfactory to the City, so much of which may be used by the City as is deemed necessary by it for the payment of acquis- ition of said property and leasehold interests set forth be- low and related expenses as court costs, attorneys' fees and demolition expenses. (e) Leasehold Interests of Businesses on Parcel A. (i) Fulton Square Corporation shall first attempt to secure agreement with the owners voluntarily termin- ating the existing leasehold interests of that portion of Parcel A subject to leases (i.e., that portion thereof riow occupied by "Ben Franklin Store" and "Avery's"). If such -13- ..~ efforts are unsuccessful, the City may then elect to use con- demnation procedure under the provisions of Ch. 24, Secs. 11- 74.2-1 et seq., contingent, however on City establishing an appropriately sized blighted area under appropriate enabling ' law. (ii) The cost of the acquisition of the leasehold interests shall be taken from the $100,000 in the escrow set forth above, if and to the extent said funds are adequate. Costs include the cost of the acquisition of property and re- lated costs as court costs, attorneys' fees and demolition expense. jiii) In the event funds in escrow for pur- chase of the Northeast Corner of Main Street and Chestnut Street and the leasehold interests are inadequate, then the excess cost shall be the City's expense. Surplus funds, if any, will be returned to Fulton Square. (II) The City has proposed to place itself in a position, first that it would acquire land for a Municipal Parking Lot; and, second, that it would acquire land, thereto contiguous, which it would make available by lease arrangement known as the Redevelopment Lease to Fulton Square Corporation for a term of 60 years and extensions thereof. Further, it thereby contemplates that said Fulton Square Corporation would con- struct a commercial facility or sublease for said construction pursuant to a Redevelopment Sublease. The City further states and requires as follows: A. Conveyance of the land, hereinabove contemplated to be acquired by the City through conveyance, shall be free and clear of all encumbrances, including taxes. Said property and improvements shall thereafter be maintained free of liens and encumbrances except as may in writing be consented to by the City. Further, when any portion or interest i.n the realty or improvement thereof shall hereafter be taxed on account of -14- y commercial or private utilization during said lease period, the taxes so levied shall be fully paid by Fulton Square Corporation with proof thereof to be made annually to City. B., General liability insurance as well as comprehensive risk and loss coverage on improvements to be constructed on • leased realty, in amount and by policy acceptable to City shall at all times be carried at expense of Fulton Square Corporation with satisfactory proof of said insurance being given to the City and with review thereof to be made annually by City. C. Except as provided herein, land titles and land usage shall be confirmed and guaranteed by a suitable policy or policies through Chicago Title Insurance Company, or other reputable Title Insur- ance Company acceptable to the City and Fulton Square Corporation which policy or policies shall run to the protection of all in- terested parties hereunder. Questions of procedure. and insura- bility of title shall be referred to Chicago Title Insurance Company or other reputable TitleInsurance Company acceptable to the City and Fulton Square Corporation for direction i_n the first instance and City will, at its election, proceed under such di- rections. The expense of such policy or policies shall be borne by Fulton Square Corporation. D. In the implementation of the premises hereof, the escrow device shall be Used to insure performance of the parties par- ticipating by reason hereof and to insure their action's timeliness. E. This resolution shall be in full force and effect for a continuous period of 9 months following its adoption provided that in 60 days from the date hereof, Fulton Square Corporation, by a letter of intent, announces its intention to proceed in reliance thereon. Thereafter, this resolution shall automatically be ex- tended for a period of 9 months, upon the written request of Fulton Square Corporation to the City, said request being made wtthin the first 9 month period. At the end of that time, this resolution shall cease to exist as an expression of the intent -15- r ~ ~' ~ ~ ~ f M f of City unless timely renewed or extended by formal action of ' the corporate authorities of City. F. The terms of this Resolution represent an expression of intent on the part of the City. Acceptance of the terms of this Resolution shall not constitute a binding agreement on the parties until the agreements mentioned herein are reduced to writing, all the terms are agreed to by the parties, and said agreements have the approval of the corporate authorities, by resolution or ordinance. Neither Fulton Square Corporation nor any person or legal entity proceeding on its behalf shall be entitled to any claim for any kind of expenses by him or it in- curred, whether by way of attorney fees, engineering fees or any fee or expense of whatsoever kind or nature occasioned by his or its act in reference to any action it may undertake in response to this Resolution. G. No other person or entity than Fulton Square Corporation as it is presently constituted with the same or a similar classes of members may accept this Resolution or act in reliance thereon. This Resolution shall be in full force and effect upon its passage by the City Council of the City of Ca.iton, Illinois and a7,~~roval by the Mayor thereof. PASSED by the City Council of the City of Cantons Illinois and APPROVED by the Mayor thereof this 1/~ day of ~7/~ , 1976. APPROVED: ~~~~ ~ _ MAYOR. ~-ra 'J ~' m ATTEST: -~L'~-c~L C" , CITY CLERK. -16- . .._ . _ .; Read to Council 11/16/76 LAW OFFICES BOODELL. SEARS, SUGRUE, GIAMBALVO S~ CROWLEY BARNABAS F. SEARS FRANK J, MADDEN ANDREW D.JORDAN WAY LAND B. CEDAROUIST ROBERT J. SUGRUE N. A. GIAMBALVO JOSEPH B. CROWLEY JAMES L. DONNELLY, JR. ROBERT N. CAFFAR ELLI STANLEY K. FEINBERG JAMES N. KOSMOND KAI ALLEN NEBEL THOMAS J. BOODELL.JR. RAYMOND H. DRYMALS KI JAMES W. COLLINS ONE IBM PLAZA CHICAGO, ILLINOIS 60611 (312) 222-9400 November 12, 1976 Mr. William H. Malmgren Attorney at Law 269 North Main Street Canton, IL 61520 Re: Downtown Development Dear Bill: THOMAS J. BOODELL (1929-19721 PETER B. NELSON (1921-1960) J. KIRK WIN DLE OF COUNSEL LEWIS M. PORTER.JR. DAVID B. YAVITZ THOMAS L. BREJCHA,JR. ROBERT D.TUERK LAWRENCE M. GAVIN ROBERT J. BEST RICHARD P. ROSENBERG PLEASE REFER TO NO~ You have requested our opinion as to whether there are appropriate legal procedures available for acquiring by condemnation, if necessary, certain pieces of real es- tate which are part of Fulton Square. These properties are, first, the real estate and building located at the northeast corner of Main Street and Chestnut Street, and secondly, the leasehold interest of businesses known as the Ben Franklin Store and Averys. In reference to the northeast corner of Main Street and Chestnut, it is our understanding that this corner lot would be used for parking and would not be part of the building constituting the commercial facility. If this parcel is to be obtained for parking, it is our opinion that it may be acquired either voluntarily or by way of condemnation pursuant to the provisions of the Parking Facilities Act, Chapter 24, Section 11-71-1 et seq. Illinois Revised Statutes (1975). In reference to the leasehold interests, Chapter 11-74.2-1 et seq. Illinois Revised Statutes (1975) is one of the Acts which applies. It appears to us from the informa- tion with which we have been furnished, that the City has followed appropriate procedures in establishing a commercial redevelopment plan pursuant to said Act. Although the property may be acquired voluntarily, the area encompassed by the plan, is at the present time too large to permit the exercise of the power of ,, - .~ ~ ~ ~ ~ BpODELL, SEARS, SUGRUE, C3IAMDALVO S CROWLEY Mr. William H. Malmgren Page 2 November 12, 1976 condemnation. Pursuant to Sections 11-74.2-8 and 9, there must be 85~ voluntary acquisition of the land within the boundaries of the plan, prior to the ex- ercise of the power of condemnation. There has not been voluntary acquisition of this much land. It is possible, however, to exercise the power of con- demnation if the size of the area covered by the plan is reduced so that in the area, 85~ of the land has been voluntarily acquired. As an alternative to Chapter 24, Section 11-74.2-1 et seq. other Illinois statutes may be applicable under which the power of condemnation may be exercised if correct implementing procedures are followed. These statutes are Chapter 24, Section 11-11-1 and Chapter 67~, Section 91.8 et seq. of the Illinois Revised Statutes (1975). Thus, although we cannot substitute our judgment for that of the court, we are of the opinion that the City, by following additional procedures required, can place itself in a position, whereby it can com- plete acquisition of the remainder of Fulton Square by use of the power of condemnation, if necessary. In conclusion, may we state that we see no reason why the intent and provisions of the proposed Resolution pertaining to Downtown Development may not be implemented in respect to the acquisition of the real property mentioned herein. Sincerely, BOODELL, SEARS, SUGRUE, GIAMBALVO & CROWLEY ,• ~/ Kai Allen Nebel KAN:t ' ~ Read to Council 11/16/76 •" -~, .. . FORGE AND PITT, ATTORNEYS 120 SOUTH LASALLE STREET CHICAGO, ILLINOIS 60603 ~ TELEPHONE (312) 726-6080 November 13, 1976 Mr. William Malmgren Attorney at Law 369 N. Main St. Canton, Illinois 61520 Dear Bill: We have reviewed forms of resolution supplied us by you and Kai Nebel for action at Monday's City Council meeting and are of the opinion, subject to drafting of various proceedings in forms acceptable to us, that the proposed borrowings will not obligate the general credit or otherwise constitute indebtedness of the City. Sincerely, C~~~ Charles P. Carlson cc: Kai Nebel, Esq.