HomeMy WebLinkAboutOrdinance #4355 CERTIFICATE
THE UNDERSIGNED CERTIFIES THAT SHE IS THE CITY CLERK FOR THE CITY
OF CANTON, ILLINOIS, AND THAT THE CITY COUNCIL AT A REGULARLY
CONSTITUTED MEETING OF SAID CITY COUNCIL OF THE CITY OF CANTON ON
THE 3m DAY OF JULY, 2023 ADOPTED ORDINANCE NO. 4355, A TRUE AND
CORRECT COPY OF WHICH IS CONTAINED IN THIS PAMPHLET.
GIVEN UNDER MY HAND AND SEAL THIS 3m DAY OF JULY,2023.
(SEAL)
DREA J.T ALTERS-SMITH
ITY CLERK
CITY OF CANTON, ILLINOIS
ORDINANCE NO. 4 3 5 5
AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A
REDEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF CANTON,FULTON COUNTY,ILLINOIS
AND
JARED KELLY
(44 WHITE CT.)
PASSED BY THE CITY COUNCIL
OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS,
ON THE 3p-D DAY OF JULY, 2023.
PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY
COUNCIL OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS,
THIS 3'D DAY OF JULY,2023.
EFFECTIVE:JULY 3,2023
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ORDINANCE NO. 4355
CITY OF CANTON, ILLINOIS
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF A BUSINESS DEVELOPMENT DISTRICT NO. 1
REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON
and
JARED KELLY
(44 White Ct.)
WHEREAS, the Mayor and City Council of the City of Canton, Fulton County, Illinois (the
"City"), have hereby determined that the Canton, Illinois Business Development District No. 1
Redevelopment Agreement by and between the City of Canton and Jared Kelly (the "Developer")
attached hereto as Exhibit `A,"is in the best interest of the citizens of the City of Canton.
NOW THEREFORE,be it ordained by the Mayor and City Council of the City of Canton,
Illinois,in the County of Fulton, as follows:
1. The City of Canton, Illinois Business Development District No. 1 (the "Business District")
Redevelopment Agreement attached hereto as Exhibit "A"is hereby approved.
2. The Mayor is hereby authorized and directed to enter into and execute on behalf of the City
said Business District Redevelopment Agreement and the City Clerk of the City of Canton is
hereby authorized and directed to attest such execution.
3. The Mayor is hereby further authorized to approve a single forty-five (45) day extension of
the Developer's obligation to complete the Project and verify eligible expenses if such
extension is requested by the Developer in writing on or before April 30, 2024.
4. The Business District Redevelopment Agreement shall be effective the date of its approval on
the 3' day of July 2023.
5. This Ordinance shall be in full force and effect from and after its passage and approval as
required by law.
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PASSED APPROVED AND ADOPTED by the Mayor and City Council of the City of
Canton this 3`d day of July,2023.
MAYOR&ALDERMEN AYE VOTE NAY VOTE ABSTAIN/ABSENT
Angie Lingenfelter
Andra Chamberlin
Patrick Ketcham
Ralph Grimm
Greg Gossett
Justin Nelson
John Lovell
Angela Hale
Kent A.McDowell,Mayor
TOTAL VOTES 8
APPROVED: d] Date / /2023
ay r, City o Cant
n
ATTEST: Date: --7 `�/ /2023
ity Clerk, City of Canton
ATTACHMENTS:
1. EXHIBIT A. City of Canton,Illinois Business Development District No. 1 Redevelopment
Agreement by and between the City of Canton and Jared Kelly.
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EXHIBIT A
CITY OF CANTON, ILLINOIS
BUSINESS DEVELOPEMNT DISTRICT NO. 1
REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON
and
JARED KELLY
(44 White Ct.)
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CITY OF CANTON, ILLINOIS
BUSINESS DEVELOPMENT DISTRICT NO. 1 REDEVELOPMENT
AGREEMENT
by and between
CITY OF CANTON, ILLINOIS
and
JARED KELLY
(44 White Ct.)
JULY 35 2023
CITY OF CANTON, ILLINOIS
BUSINESS DEVELOPMENT DISTRICT NO. 1
REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON, ILLINOIS
and
JARED KELLY
(44 White Ct.)
THIS AGREEMENT (including Exhibits, hereinafter referred to as the "Agreement") is
entered into this 3 d day of July, 2023, by the City of Canton (the "City"), an Illinois Municipal
Corporation,Fulton County,Illinois,and Jared Kelly,individually (the"Developer").
PREAMBLE
WHEREAS, the City has the authority to promote the health, safety, and welfare of the City
and its citizens and to encourage development, job creation, and/or the full utilization of real estate;
and
WHEREAS,pursuant to the Illinois Business District Development and Redevelopment Act
(65 ILCS 5/11-74.3-1 et seg.), as amended (the "Act"), the City established the Canton Business
Development District No. 1 (the "Business District" or `BDD") on March 15, 2022, by approving
Ordinance No. 4281;and
WHEREAS,on September 30,2022,the City approved the First Amendment to the Business
District by approving Ordinance No. 4307 and further ratified the First Amendment on October 5,
2022 by approving Ordinance No. 4315;and
WHEREAS, pursuant to Jllinois Statute 65 ILCS 5/8-1-2.5, the City has the authority to
appropriate and expend funds for economic development purposes; and
WHEREAS,pursuant to the Act, the City has the authority to incur eligible business district
project costs and may enter into agreements with developers to reimburse them for their eligible
business district project costs;and
WHEREAS, the Developer shall acquire property located within the Business District at 44
White Ct. (PIN 09-08-27-415-016),which is hereinafter referred to as the "Property;" and based in
part on incentives made available by the City, the Developer shall complete exterior and interior
repairs, renovation and rehabilitation of the building located thereon at a total estimated cost of
$40,000 for the commercial operation of a retail store trading in antiquities and collectibles, and a
second-level apartment (the "Project"); and
WHEREAS, as an incentive to undertake the Project, the Developer has requested
reimbursement for a portion of its BDD Eligible Costs as described in Exhibit "1"attached hereto
and as further evidenced by the Developer's Application for Reimbursement of Private BDD Eligible
Redevelopment Pr ject Costs attached hereto as Exhibit "2;"and
WHEREAS, the Developer's proposed Project is consistent with the land uses of the City
and the Business District Plan as adopted; and
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WHEREAS, the City and the Developer (the"Parties") have agreed that the City shall
provide a forgivable loan to the Developer for the reimbursement of a portion of the Developer's
BDD Eligible Project Costs (as set forth in Exhibit "1"attached hereto) of an amount not to
exceed Ten Thousand and 00/100 Dollars ($10,000.00) to be paid from the Canton BDD No. 1
Special Tax Allocation Fund as specified below in Section C,Incentive',and
WHEREAS,in no event shall cumulative maximum reimbursements for the Developer's
BDD Eligible Project Costs under this Agreement exceed Ten Thousand and 00/100 Dollars
($10,000.00); and
WHEREAS, the City has determined that this Project requires the incentives requested and
that said Project will promote the health, safety and welfare of the City and its citizens by attracting
private investment to redevelop under-utilized property, to provide employment for its citizens, and
generally to enhance the local economy;and
WHEREAS,in consideration of the execution of this Agreement and in reliance thereon,the
Developer is prepared to redevelop said property; and
WHEREAS, the City is entering into this Agreement to induce the Developer to complete
the Project located on the Property.
AGREEMENTS
NOW, THEREFORE, for good and valuable consideration, the receipt of which is
acknowledged, the Parties agree as follows:
A. PRELIMINARY STATEMENTS
1. The Parties agree that the matters set forth in the recitals above are true and correct and form
a part of this Agreement and are to be construed as binding statements of this Agreement.
2. Any terms which are not defined in this Agreement shall have the same meaning as they do in
the Act,unless indicated to the contrary.
a. For the purpose of this Agreement, "Business District Revenues" shall be defined
as the Village's One Percent(1%) rate of Business District Retailers' Occupation Tax
and Business District Service Occupation Tax (65 ILCS 5/11-8-5) imposed on
businesses located within the Business District and the Developer's Property.
b. For the purpose of this Agreement, "BDD Eligible Costs" shall mean those costs
eligible for reimbursement under the Business District Development and
Redevelopment Act and are further described in Exhibit "1"attached hereto.
3. The Developer agrees to complete the Project and verify eligible project costs as required in
Section "E"below on or before April 30, 2024, subject to exception of Force Majeure as
described in Section "I"below.
4. For the purpose of this Agreement, the Developer's Project will be deemed to be complete
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when the improvements described in Exhibit "1"are completed in compliance with all
applicable ordinances and building codes of the City, and the eligible project costs have been
verified by the Developer pursuant to Section "E"below.
5. Each of the Parties represents that it has taken all actions necessary to authorize its
representatives to execute this Agreement.
B. INCENTIVES
In consideration for the Developer completing its Project, the City agrees to extend to the Developer
the following incentives to assist the Developer's Project:
1. In exchange for a Promissory Note to be issued by the Developer to the Village as set forth
in Exhibit"3"attached hereto,the City agrees to loan to the Developer(also,the"Borrower")
Twenty Five Percent (25%) of total verified BDD Eligible Costs incurred by the Developer
for the Project,or the sum of Ten Thousand and 00/100 Dollars ($10,000.00),whichever
is less from the BDD No. 1 Special Tax Allocation Fund. The terms and conditions for the
loan shall be as follows:
a. The full Loan amount of$10,000.00 shall be disbursed to the Developer from the
BDD No. 1 Special Tax Allocation Fund within thirty (30) days from the date of
execution of this Agreement, or upon verification of a minimum of $10,000.00 of
BDD Eligible Project Costs pursuant to Section "E"below,whichever occurs later.
b. The interest rate for the note shall be Three Percent(3.0%) per annum,and shall begin
to accrue on the date the loan funds are disbursed to the Developer.
c. The term of the note shall expire on the date that is five (5) years from the date the
loan funds are disbursed to the Developer hereunder.
d. One-Fifth(1/5) of the principal amount of the loan,plus any accrued interest thereon,
shall be forgiven annually by the City commencing one (1)year from the date the loan
funds are disbursed to the Developer and continuing on said date of.each year
thereafter for the term of the loan,provided the Developer has been at all times in full
compliance with every term of this Agreement,including the following:
i. The Developer continues to operate the commercial resale antiquities and
collectibles store on the Property for the term of the Loan.
ii. The Developer shall annually provide verification of the payment of the real
estate taxes for the property during the term of this Agreement.
iii. The Developer does not file for bankruptcy or otherwise become insolvent
during the term of this Agreement.
iv. The Property is not the subject of foreclosure proceedings during the term of
this Agreement.
v. The Developer shall maintain adequate insurance on the Property to cover the
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replacement cost of the completed Project.
vi. The Loan shall be secured by a Mortgage (attached hereto as Exhibit 'W)
granted by the Developer and in favor of the City, which shall be filed with
the Fulton County Recorder's Office. The City agrees that said mortgage shall
be subordinate to that of a primary lender providing financing for the Project
at the request of the Developer. Upon full payment or forgiveness of the
Loan, the City shall release the Mortgage and file with the County Recorder's
Office whatever documents are necessary to release said mortgage.
C. LIMITATION OF INCENTIVES TO DEVELOPER
In no event shall the maximum cumulative reimbursements for the Developer's BDD Eligible Project
Costs pursuant to Section `B(1)"above exceed Ten Thousand and 00/100 Dollars ($10,000.00) as
set forth herein.
D. OBLIGATIONS AND RESPONSIBILITIES OF DEVELOPER
1. The Developer shall timely complete the Project located on the Property. Failure of the
Developer to timely complete such the Project as set forth herein will result in the denial of
the reimbursements to be otherwise made hereunder.
2. The failure of the Developer to provide any information reasonably required herein after
notice from the City,and the continued failure to provide such information within 30 days to
the City after such notice shall be considered a material breach of this Agreement and shall be
cause for the City to deny payments hereunder to the Developer, which payments are
conditional upon receipt of the forgoing information.
3. The Developer agrees to execute any and all documents necessary to effectuate the provisions
of this Agreement.
E. PAYMENT OF ELIGIBLE PROJECT COSTS
1. To receive the incentives set forth in Section `B" above, the Developer must submit
documentation evidencing all Business District Eligible Project Costs incurred by it with
respect to the Project on or before April 30, 2024. Satisfactory evidence of such costs shall
include verified bills or statements of suppliers, contractors, or professionals together with
mechanic's lien waivers (whether partial or full), cancelled checks, statements or invoices
marked paid from each of the parties entitled to payment with respect to work done for the
Project, or other proofs payment for such bills,statements, or invoices for such costs.
2. Absent the City's written consent for an extension provided to the Developer, any costs
submitted after April 30,2024,will not be eligible for reimbursement.
a. Upon receiving written request from the Developer on or before April 30, 2024, the
Mayor may grant to the Developer one extension of up to forty-five (45) days to
complete the Project and comply with Section "S(1)"above.
3. Payment to the Developer for BDD Eligible Project Costs as set forth by the BDD Act shall
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be made by the City following submission by Developer of a final Requisition for Payment of
Private Development Redevelopment Costs (the "Requisition") attached hereto as Exhibit "5"to
Jacob & Klein, Ltd. and the Economic Development Group, Ltd. (collectively the `BDD
Administrator"), and the BDD Administrator's approval of the BDD eligible project costs
and the availability of funds in the Canton BDD Special Tax Allocation Account.
4. If any costs which are submitted by the Developer are not approved by the Administrator,the
reasons for disallowance will be set forth in writing and the Developer may resubmit the costs
with such additional information as may be required and the same procedures set forth herein
shall apply to such re-submittals.
5. All Business District Eligible Project Costs which have been approved shall then be paid
pursuant to the terms set forth in Section "B"above.
F. LIMITED OBLIGATION OF CITY
The City's obligation hereunder to reimburse the Developer as stated herein is a limited
obligation. Said obligation does not now and shall never constitute an indebtedness of the City within
the meaning of any State of Illinois constitutional or statutory provision and shall not constitute or
give rise to a pecuniary liability of the City or a charge or lien against any City fund nor obligate the
City to utilize its taxing authority to fulfill the terms of this Agreement.
G. LIMITED LIABILITY OF CITY TO OTHERS FOR DEVELOPER'S EXPENSES
There shall be no obligation by the City to make any payments to any person other than the
Developer, nor shall the City be obligated to make payments to any contractor, subcontractor,
mechanic, or materialman providing services or materials to the Developer for the Project.
H. DEFAULT; CURE;REMEDIES
In the event of a default under this Agreement by any Party hereto (the "Defaulting Party"),
which default is not cured within the cure period provided for below, then the other Party(the"Non-
defaulting Party") shall have an action for damages, or in the event damages would not fairly
compensate the Non-defaulting Parry's for the Defaulting Parry's breach of this Agreement,the Non-
defaulting Party shall have such other equity rights and remedies as are available to them at law or in
equity. Any damages payable by the City hereunder shall be limited to the Municipal Sales Tax
Revenues payable under the terms of this Agreement.
In the event a Defaulting Party shall fail to perform a monetary covenant which it is required
to perform under this Agreement,it shall not be deemed to be in default under this Agreement unless
it shall have failed to perform such monetary covenant within thirty (30) days of its receipt of a notice
from a Non-defaulting Party specifying that it has failed to perform such monetary covenant. In the
event a Defaulting Party fails to perform any non-monetary covenant as and when it is required to
under this Agreement,it shall not be deemed to be in default if it shall have cured such default within
thirty (30) days of its receipt of a notice from a Non-defaulting Party specifying the nature of the
default, provided, however, with respect to those non-monetary defaults which are not capable of
being cured within such thirty(30) day period,it shall not be deemed to be in default if it commences
curing within such thirty (30) day period, and thereafter diligently and continuously prosecutes the
cure of such default until the same has been cured.
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I.TIME; FORCE MAJEURE
For this Agreement,time is of the essence. The Developer agrees to complete the Project on
or before April 30, 2024, subject to extension due to Force Majeure (defined below). Failure to do
so shall be cause for the City to declare the Developer in default and unilaterally terminate the
Agreement after notice and the opportunity to cure as provided in Section H. However,the Developer
and the City shall not be deemed in default with respect to any obligations of this Agreement on its
part to be performed if the Developer or the City fails to timely perform the same and such failure is
due in whole, or in part, to any strike,lock-out,labor trouble (whether legal or illegal), civil disorder,
inability to procure materials, weather conditions, wet soil conditions, failure or interruptions of
power, restrictive governmental laws and regulations, condemnation, riots, insurrections, war, fuel
shortages, accidents, casualties,Acts of God or any other cause beyond the reasonable control of the
Developer or the City.
J.ASSIGNMENT
The rights (including,but not limited to, the right to payments contemplated by Section "B"
of this Agreement) and obligations (or either of them) of the Developer under this Agreement shall
not be assignable.
K. WAIVER
Any Party to this Agreement may elect to waive any remedy it may enjoy hereunder,provided
that no such waiver shall be deemed to exist unless the Party waiving such right of remedy does so in
writing. No such waiver shall obligate such Party to waive any right of remedy hereunder or shall be
deemed to constitute a waiver of other rights and remedies provided said Party pursuant to this
Agreement.
L. SEVERABILITY
If any section, subsection, term or provision of this Agreement or the application thereof to
any Party or circumstance shall, to any extent, be invalid or unenforceable, the remainder of said
section, subsection, term or provision of this Agreement or the application of same to parties or
circumstances other than those to which it is held invalid or unenforceable, shall not be affected
thereby.
M.NOTICES
All notices,demands,requests,consents,approvals or other instruments required or permitted
by this Agreement shall be in writing and shall be executed by the Party or an officer,agent or attorney
of the Party,and shall be deemed to have been effective as of(i) the date of actual delivery,if delivered
personally,or(ii)as of the third(3`d) day from and including the date of posting,if mailed by registered
or certified mail, return receipt requested, with postage prepaid or (iii) the next business day if sent
overnight delivery using a nationally recognized delivery service,addressed as follows:
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TO CITY TO DEVELOPER
City of Canton Jared Kelly
`/o City Clerk 415 N. Maple St.
2 N. Main Street Lewistown, Illinois 61542
Canton,Illinois 61520
Ph: (309) 647-0065 Ph: (563) 549-4838
With copy to City BDD Administrator. With copy to:
Jacob &Klein,Ltd. and
The Economic Development Group,Ltd.
1701 Clearwater Avenue
Bloomington, Illinois 61704
Ph: (309) 664-7777
N. SUCCESSORS IN INTEREST
Subject to the provisions of Section `J"above, this Agreement shall be binding upon and
inure to the benefit of the Parties hereto and their respective successors and assigns.
O.NO JOINT VENTURE,AGENCY, OR PARTNERSHIP CREATED
Neither anything in this Agreement nor any acts of the Parties to this Agreement shall be
construed by the Parties or any third person to create the relationship of a partnership,agency,or joint
venture between or among such Parties.
P. LIMITATIONS OF LIABILITY
As it relates to this Agreement, no recourse under or upon any obligation, covenant or
agreement of this Agreement or for any claim based thereon or otherwise in respect thereof shall be
had against the City, its officers, agents and employees, in excess of any specific sum agreed by the
City to be paid to Developer, hereunder, subject to the terms and conditions herein, and no liability,
right or claim at law or in equity shall attach to or shall be incurred by its officers,agents and employees
in excess of such amounts, and all and any such rights or claims of Developer against the City, its
officers, agents and employees are hereby expressly waived and released as a condition of and as
consideration for the execution of this Agreement by the City.
Q. ENTIRE AGREEMENT
The terms and conditions set forth in this Agreement supersede all prior oral and written
understandings and constitute the entire agreement between the City and the Developer with respect
to the subject matter hereof.
R. TERM OF THE AGREEMENT
Notwithstanding anything in this Agreement to the contrary, this Agreement shall expire on
April 30, 2024, or upon the Developer receiving the incentives provided for in Section "B"above.
The Agreement shall expire sooner upon default by the Developer of this Agreement after applicable
notice and cure periods.
S. ILLINOIS PREVAILING WAGE ACT
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It is the understanding of the Parties that the position of the Illinois Department of Labor(the
"Department") is that the Illinois Prevailing Wage Act does not apply to Sales Tax Reimbursements
received by private developers as reimbursement for private redevelopment project costs. This
position of the Department is stated as an answer to a FAQ section on the Department's website.'
The Developer shall indemnify and hold harmless the City,and all City elected or appointed officials,
officers, employees, agents, representatives, engineers, consultants, and attorneys (collectively, the
"indemnified Parties"), from any and all claims that may be asserted against the Indemnified Parties
or one or more of them,in connection with the applicability, determination, and/or payments made
under the Illinois Prevailing Wage Act (820 ILCS 130/0.01 et. seq.), the Illinois Procurement Code,
and/or any similar State or Federal law or regulation. This obligation to indemnify and hold harmless
obligates Developer to defend any such claim and/or action, pay any liabilities and/or penalties
imposed, and pay all defense costs of City, including but not limited to the reasonable attorney fees
of City. Failure to comply with any of these requirements may cause all benefits hereunder to be
terminated by the City.
T. OTHER GENERAL PROVISIONS
1. Titles of Paragraphs: Titles of the several parts, paragraphs, sections, or articles of this
Agreement are inserted for convenience of reference only and shall be disregarded in
construing or interpreting any provisions hereof.
2. Warranty of Signatories: The signatories of Developer warrant full authority to both execute
this Agreement and to bind the entity in which they are signing on behalf of.
3. Counterparts:This Agreement may be executed in counterparts,which when taken together
shall constitute a single signed original as though all Parties had executed the same page.
4. Choice of Law/Venue: This Agreement shall be governed by and construed in accordance
with the laws of the State of Illinois with venue lying in the Circuit Court of Fulton County,
Illinois.
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'See online: his://Iabor.illinois.goN .
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THIS AGREEMENT IS INTENDED TO BE A LEGAL DOCUMENT. AN ATTORNEY AT
LAW SHOULD BE CONSULTED PRIOR TO THE EXECUTION OF THIS DOCUMENT.
IN WITNESS WHEREOF the Parties hereto have caused this Agreement to be executed
by their duly authorized officers on the above date at the City of Canton,Illinois.
CITY DEVELOPER
CITY OF CANTON,ILLINOIS,an Illinois JARED KELLY,individually
Municipal Corporation
BY: V" " ` BY: kA
ma J d Kelly
Date: Date:T
ATTESTED BY:
cc 1
ity Clerk 2�
Date:
EXHIBITS:
Exhibit 1. Estimated BDD Eligible Project Costs
Exhibit 2. Application for BDD Benefits Relating to Private BDD Eligible Redevelopment Project
Costs as submitted by Jared Kelly.
Exhibit 3. Promissory Note
Exhibit 4. Mortgage
Exhibit 3. Requisition for Payment of Private Development Redevelopment Costs
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EXHIBIT 1
ESTIMATED BDD ELIGIBLE PROJECT COSTS
Jared Kelly
City of Canton,Fulton County, Illinois / Canton BDD No. 1
Project Description: Developer shall complete exterior and interior repairs,renovation and
rehabilitation of the building located thereon at a total estimated cost
of$40,000 for the commercial operation of a retail store trading in
antiquities and collectibles,and a second-level apartment.
Location: 44 White Ct., Canton,Illinois
Parcel Number: 09-08-27-415-016
Estimated BDD Eligible Project Costs:
Exterior repairs,renovation&rehabilitation of structures
as relates to window replacement (materials&contracted labor).........................................................$10,000
Interior repairs,renovation&rehabilitation of structures
as relates to window replacement (materials&contracted labor).........................................................$30,000
Total Estimated BDD Eligible Project Costs l.....................................................
t The total,cumulative reimbursement of BDD Funds for BDD Eligible Project Costs payable by the City to the Developer shall not
exceed 25% of verified BDD eligible project costs incurred by the Developer not to exceed $10,000.00, as set forth in this
Redevelopment Agreement. The line items set forth in this Exhibit "I"are not intended to place a total limit on the described
expenditures or intended to preclude payment of other BDD eligible redevelopment project costs in connection with the Developer's
Project,provided the total amount of payment for all eligible redevelopment project costs,public and private,shall not exceed the total
amount set forth herein. Adjustments may be made to the designated and anticipated line items within the total,either increasing or
decreasing verified line-item costs incurred for the Project.For purposes of this Agreement,the City's reimbursement of BDD
Eligible Project Costs to the Developer exclude the costs incurred for the acquisition of land and buildings.
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EXHIBIT 2
APPLICATION FOR BDD BENEFITS RELATING TO PRIVATE BDD
ELIGIBLE REDEVELOPMENT PROJECT COSTS
as submitted by
JARED KELLY
(44 White Ct.)
(See following pager as attached)
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City of Canton, Illinois
Canton Business Development District (BDD) No. 1 (estab&bed:311512022)
City of Canton,Illinois/2 N.Main St.,Canton,IL 61520 Ph:(309)647-0065
APPLICATION FOR REIMBURSEMENT OF
PRIVATE BDD ELIGIBLE REDEVELOPMENT PROJECT COSTS
Applicant Name: Jared Kelly
Applicant Mailing Address: 415 N. Maple Lewistown, IL 61542
Applicant Daytime Phone: 563-549-4838 Applicant Email Address: truckiowa@hotmail.com
Subject Property's Site Address: 44 White Ct. Canton, IL 61520
Subject Property's Fulton County Property Tax ID # 09-08-27-415-016
Property Owner Name(s)if different than Applicant:
Type of Property(check all that apply): Commercial/Retail; ❑ Professional Office; ❑ Industrial; 11 Residential
Anticipated Project Start Date: 2/21/2023 and Estimated Project Completion Date: 6/1/2023
Number of new jobs,if any,that will be created as a result of this Project: Full-time 2 Part-time
New annual retail sales anticipated to occur,if any,as a result of the proposed improvements: $100,000
Total Projected Investment for Project: $58,500 ,of which$40,000 is land/building improvements.
Estimated BDD Eligible Project Costs (attach detailed list and description, as well as bids for contracted work):
1. Professional fees (e.g.,engineering,architectural,legal,accounting,plans,marketing).....$
2. Acquisition cost of land and buildings purchased after 3/15/2022......................................$18,500
3. Site preparation(e.g.,demolition,excavation,leveling/grading of land)..............................$
4. Exterior rehab,repair,remodeling,reconstruction of existing buildings.............................$10,000
5. Interior rehab,repair,remodeling,reconstruction of vacant,underutilized space............$301000
6. Construction of new building......................................................................................................$
7. Construction or repair of private parking lot and/or driveway..............................................$
8. Construction or repair of public infrastructure.........................................................................$
TOTAL ESTIMATED BDD ELIGIBLE PROJECT COSTS: .................................... 58,500
FOR CITY USE:
Signed application received by the City of Canton on date:_/ / by
City Finance Committee Recommendation: ❑Approved for Amount:$ on date:
Notes/instructions: (attach more detail as needed)
❑ Denied for reason: (attach more detail as needed)
BDD Application forwarded to City's BDD Administrator on date:
Date of Approved Redevelopment Agreement:_/ / Verified BDD Eligible Project Costs: $
Amount reimbursed by City to Applicant:$ by Check No. on date:_/ /
- 1-
PLEASE READ THE FOLLOWING REQUIREMENTS CAREFULLY
BDD reimbursements are provided for BDD-eligible project costs (pursuant to 65 ILCS 5/11-74.3-1 et. seq. as
amended, the "Act") and only for such eligible project costs that are incurred and verified for redevelopment
projects undertaken within the designated BDD No. 1 Redevelopment Project Area. All BDD Applications are
reviewed by the City's Finance Committee prior to approval of a written redevelopment agreement by the Canton
City Council and all reimbursements by the City are subject to the availability of funds.
1. Only properties located within the Canton Business Development District No. 1 Redevelopment Project
Area (the `BDD Area" or "Area") as depicted below are eligible to apply for BDD assistance. To verify a
property is located within the BDD Area,contact the Spoon River Partnership for Economic Development
for assistance: 48 N. Main Street, Canton, IL 61520; Ph: (309) 647-2677; or send email inquiries to
cmcdaniel&cantonillinois.org,or visit online at: https://xvw-,v.cantonillinois.org/economic-development/.
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Canton Business Development District No. 1(First Amendment
MAUOEP-STUTZ O•
•„,,,;;,, September 20,2022 As Amended
2. All applicants are to attach a description of the planned improvements,estimated costs (contractor
bids, if any) of the project, and the project schedule. Conceptual sketches, photographs and drawings
are encouraged. The City reserves the right to request additional information, including,but not limited to,
how the property will be utilized (e.g., commercial, residential, type of business, etc.) after the renovations
are completed.
3. All projects undertaken with BDD Funds must comply with applicable City of Canton design guidelines,
zoning ordinances and building codes.
4. A Tenant-Applicant of a building for which the reimbursement of leasehold improvements is requested
through BDD Funds must provide written consent from the Property Owner for all proposed
improvements (see Appendix A).
-2-
5. The City of Canton reserves the right to accept BDD Applications from those Applicants who undertake
projects the City deems to be compliant with the Act and for projects that the City believes will further
stimulate the type of redevelopment that is consistent with the Canton Business Development District No.
1 Redevelopment Plan, and Projects. The Canton City Council shall exercise its authority pursuant to the
Act to reimburse private redevelopment project costs in such amounts that are deemed to be in the best
interests of the citizens of the City of Canton.
6. Applicants must, in advance of receiving BDD funds: a) verify that the most recent real estate tax bill(s)
have been paid for the Property; and b) verify BDD eligible project costs in an amount equal to or greater
than the amount approved by the City Council. BDD Funds are paid by the City of Canton to
Applicants:
a. with whom the City Council has approved a written redevelopment agreement by City
Ordinance;
b. upon completion of the Project and terms of the redevelopment agreement;and
c. following the verification of BDD eligible project costs that have been incurred by the
Applicant — no exceptions. The City's obligation hereunder to pay BDD funds for eligible
project costs is a limited obligation to be paid solely from the Canton BDD No. 1 Special Tax
Allocation Fund,unless otherwise specified in the redevelopment agreement.
7. It is the understanding of the City and the Applicant that the position of the Illinois Department of Labor is
that the Illinois Prevailing Wage Act does not currently apply to sales tax incentives, such as BDD Funds,
that are received by private Developers as reimbursement for BDD Eligible Project Costs.This position of
the Department of Labor is available online at: htWs://www2.illinois.gov/idol/FAOs/Pages/prevailing-
wage-faq.aspx#gst16. Any project costs incurred by the Developer within a public right-of-way or for
which the improvements are intended to be dedicated to the City are subject to the Prevailing Wage Act.
8. All Applications are subject to review by the City Finance Committee prior to City Council approval.
The undersigned certifies and warrants that to the best of his/her knowledge the information contained in
and attached to this Application Form is true, correct, and complete and furthermore agrees to the terms
and conditions provided herein. Nothing contained in this BDD Application shall be construed by the
City or the Applicant or any third person to create the relationship of a partnership,agency,or joint venture
between the City and the Applicant.
Applicant Signature: 9��64 Date:3/28 / 2023
Applicant is the Owner of Subject Property
❑ Applicant is Tenant of Subject Property for which Appendix has been completed and attached hereto.
-3-
APPENDIX A
APPLICATION FOR REIMBURSEMENT OF
PRIVATE BDD ELIGIBLE REDEVELOPMENT PROJECT COSTS
City of Canton,Illinois/2 N.Main St.,Canton,IL 61520 Ph:(309)647-0065
(Complete top and bottom portions of this form only if the Applicant is not the Property 02vner)
TENANT-APPLICANT AFFIDAVIT
We the undersigned are the Applicant and Tenant of real Property located at the following address:
, (PIN ),
and hereby disclose our intent as Tenant of said Property to incur certain eligible project costs as"Leasehold
Improvements"for which we are requesting the reimbursement from the Canton Business Development District No. 1
Special Tax Allocation Fund,pursuant to the terms and conditions provided herein.
BY: Date:
(Authon!ti?d Tenant Signature)
(Print Tenant Name)
STATE OF ILLINOIS
COUNTY OF FULTON
I,the undersigned Notary Public,do hereby affirm that personally appeared before me on the day of
and signed the above Statement as a free and voluntary act and deed.
Notary Public
Date of Commission Expiry:
--------------------------------------------------------------------------------------------------------------------------------------------
PROPERTY OWNER-LANDLORD AFFIDAVIT
As the owner of the above-described real Property, I hereby provide the Tenant my consent to undertake the
proposed"Leasehold Improvements" on the Property, whereby the Tenant shall incur certain eligible project costs
for which the Tenant is requesting reimbursement from the Canton Business Development District No. 1 Special Tax
Allocation Fund pursuant to the terms and conditions provided herein.
Furthermore, as a signatory to this Application, I do hereby direct the City of Canton to make the BDD grant
payment awarded by the City for this Project payable to the Tenant-Applicant.
BY: Date:
(Authoritied Properly Ot)ner Landlord Signature)
(Print Property Owner-Landlord Name)
STATE OF ILLINOIS
COUNTY OF FUIXON
I,the undersigned Notary Public,do hereby affirm that personally appeared before me on the day of
and signed the above Statement as a free and voluntary act and deed.
Notary Public
Date of Commission Expiry:
-4-
Odds And Ends Resale Narrative
Our vision is to fully restore 44white court to its original 1880s appearance,inside and out.By doing so
it will be able to facilitate our resale business along with 30 vendors,selling antiques and collectibles,
and a two-bedroom apartment on the second level.With the extent of neglect over the years to the
building,this restoration will have to be done in phases.
*Phase one:Termite remediation-substantial damage to floor joists,windows,and doors.This breaks
down to replacement of approximately 65 of 77 floor joists on the main level.Replacing main floor
windows(2)and replacing main floor doors(2). Replacement of subfloor on first level.Sealing four leaks
in the roof.Fixing leaking pipes.
Phase one approxmonite cost is estimated at$58,500.By getting assistance we will be able to open and
operate our business,thus allowing capital to be saved forfurther phases of restoration.
Once phase one is complete,we will have a resale shop,with 30 vendors,operating 5 days a week,with
3 employees.This will allow job growth in the area and help bring more tourism to the area.Along with
bringing an eyesore of building back to its former glory.
.,
M,
��MO "PEST CONTIO19 1P d
P.O. BOX 56•CANTON, IL 61520 •647-011
Name:
Address: LLA
--
, be treated:
Option 1:
ethod: Traditional Liquid Chemical Treatment
Chemical Trade Name: Termidor BE
Manufacture:BASF Corp
Warranty,Annual,W ty rege pst$130.00 each renewal can I
Cost of Treatment-
Option 2:
Method:Advanced Termite Bait Stations
Chemical Trade Name:"Advance"Termite Bait Station
Manufacture: Whitmire Micro-Gen.
Warranty:Annual,Wan-dntY Renewal cost$260.00 or$360.00(depen
stations)renewal for the life of the property.
Bait stations are checked I time a month during termite season while s
(Termites are present). They are checked 4 times a year while stations
(no active termites).
Cost of Treatment: $
Spoon River Nst Control Inc. uses only the best chemical and the most up to data methods. TeffnidornE&
"Colony Killing"chemicals, WE DONOtXJSE BARRIERS'ORRE-PELLI:7NTS. We only recornmend.proct
siruntion.
,Although all options Mcd will-eliminate the termite infestation aftel,
structure'involved 9 into account suchitems such as"access I
foundation type,efel�infestation,&your cost for treatment Nve r
A'-11. .
Wood Destroying Insect Inspection Report Notice:Please read important consumer information on pa2e 2.
Section 1.General Information Company's Business Lic.No. Date of Inspection
Inspection Company.Address&Phone 20-4820810 03/02/2023
Spoon River Pest Control,Inc
3100 North Main Street.Canton,Illinois 61520 Address of Property Inspected
309-647-0101 44 White Court,Canton,IL 61520
Inspector's Name,Signature&Certification, Structure(s)Inspected
Registration,or Lic.#
Melissa Havens, Building
052-093624
Section II:Inspection Findings This report is indicative of the condition of the above identified structure(s)on the date of inspection and is
not to be construed as a.guarantee or warranty against latent,concealed,or future infestations or defects.Based an a careful visual
Inspection of the readily accessible areas of the structure(s)inspected:
® A.No visible evidence of wood.destroying insects was observed
❑ B.Visible evidence of wood destroying insects was observed as follows:
❑ 1.Live insects(description and location):
Q 2.Dead insects,insect parts,frass,shelter tubes,exit holes,or staining(description and location): Mud tubes on east,west,
south,and north wall in basement.Extensive wood damage throughout entire basement floor jolces and main floor has wood.damage in
flooring.
R 3.Visible damage from wood destroying insects was noted as follows(description and location): Extensive wood damage
throughout entire basement floor jolces and main floor has wood damage in flooring.
NOTE:-This la not a structural damage report.If box B above Is checked,it should be understood that some degree of damage,
Including hidden damage,may be present.If any questions arise regarding damage indicated by this report,it is recommended that the
buyer or any interested parties contact a qualified structural professional to determine the extent of damage-and the need for repairs.
Yes❑No❑ It appears that the structure(s)or a portion thereof may have.been-previously treated.Visible evidence of possible previous
treatment:
No
The inspecting company can give no assurances with regard tomork done by other companies.The company that performed the treatment should
Section.11l..Recommendations
❑ No treatment recommended:(Explain if Box B in Section it is checked)
0 Recommend treatment for the control of: Liquid treatment for the control of termites.
(] Proper control measures were perfomed by this inspection company for insect evidence listed in Section Il.B.,above.
Section IV.Obstructions and Inaccessible Areas The inspector may write out obstructions or use
The following areas of the structure(s)inspected were obstructed or inaccessible: the following optional key:
1.Fixed ceiling 13.Only visual access
® Basement 5,7,14 2.Suspended ceiling 14.Cluttered condition
❑ Crawispace 3.Fixed wall covering 15.Standing water
® Main Level 1.3.4.7 4.Floor covering 16.Dense vegetation
® Attic 10 5.Insulation 17.Exterior siding
6.Cabinets or shelving 18.Window well covers
❑ Garage 7.Stored items 19.Wood pile
® Exterior 17 S.Furnishings 20.Snow
❑ Porch 9.Appliances 21.Unsafe conditions
10.No access or entry 22.Rigid foam board
❑ Addition 11.Limited access 23.Synthetic stucco
❑ Other 12.No access beneath 24.Duct work,
plumbing,and/or
wiring
Section V.Additional Comments and Attachments(these are an integral part of the report)
Attachments
Signature of Sellers)or Owners)if refinancing.Seller admowledges that all Signature of Buyer.The undersigned hereby acknowledges fecelpt of a copy of
Information regarding W.D.I.infestation,damage,repair,and treatment history has been both page 1 and page 2 of this report and understands the inrormation reported.
disclosed to the buyer.
X X
HILLSIDE WOOD PRODUCTS
& METAL SALES
20081 N.DEPLER SPRINGS RD.
19 CUBA,IL 61427 3 1 9 7
Ph#309-785-8094
Fax#309-785-8096
DATE
TO CUSTOMER PH#
f VIA
QUANTITY DESCRIPTION PRICE AMOUNT
SS 2 Z o
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8357
I
SO
ov
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CROS0001164020
Crossroads Building Supply Account: 026-316686 0001
240 N Bower Road Branch: MACOMB
Macomb,IL 61455
Phone:(309)-836-8058 Phone: (309)-836-8058
Fax:
Bill To: COD MACOMB Ship To: COD MACOMB
240 N BOWER RD 240 N Bower Road
MACOMB,IL 61455 Macomb, IL 61455
Page 1 of 1
PO: Kelley
Ref: Job:
Exp Delv Date: 03/08/23 Isaias HOUSE Type: delivery Ship Via:
Activation Date: 03/08/23 JAgents Quoted For:
Close Date: 04/08/23 DWRIGHT Quoted By: DWRIGHT
..:.....�;,..........,.. ...�.....,..,_..,... ..-.. . ::.=- ICE/U.OPV1:- :: :ANiOIIt�S
TY .
Mltl'ESCR4PTi0iV:
55 EACH SYP2X12X20 2x12x20' 55.00/EACH 3,025.00
YELLOW PINE
3,025.00
Subtotal
40.00
Delivery Charge 272.25
Sales Tax
BY ACCEPTIN THESE GOODS,YOU AGREE THAT:
1)All Credit Cus omers re subject to a 1.5%monthly Service Charge if invoices are not
paid within term .
2)ALL returns ust be i- re-sellable condition,cannot be older than
60 days,must b accorn anied by an invoice and will be subject to up to a 25%restock fee.
3)There will be O retur s accepted on any and all Special OrderlNon-stockedlClase Out
Merchandise prc ducts.
4)A$39.00 Sen ice Cha ge or Max allowed by state law on returned checks.
5)Customers wi I be hell liable to pay all costs and legal fees incurred as a result of
any legal action aken in lollecting payment on this invoice.
Payment Terms: Total: $3,337.25
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EXHIBIT 3
PROMISSORY NOTE
FOR VALUE RECEIVED, Jared Kelly (the "Borrower"), promises to pay the City of
Canton,Fulton County,Illinois,an Illinois Municipal Corporation(the"Lender") the principal sutra
of up to Ten Thousand Dollars ($10,000.00) with interest accruing on the unpaid principal at the
rate of three percent(3%)per annum. The aforementioned principal sum represents monies loaned
by the Lender to the Borrower for the reimbursement of Borrower's BDD Eligible Costs incurred as
a result of a Redevelopment Project located at 44 White Ct., Canton, Illinois (PIN 09-08-27-415-016
and the "Property"), within the Redevelopment Project Area and that is the subject of a Business
Development District No. 1 Redevelopment Agreement by and between the City of Canton and Jared
Kelly(the "Redevelopment Agreement") entered into the 3rd day of July,2023.
The term of this Promissory Note shall commence on the date the reimbursements provided
for in Section "B"of the Redevelopment Agreement are disbursed to the Borrower and end on the
date that is five (5) years from the date of such disbursement.
Provided that the Borrower is at all times in compliance with the Redevelopment Agreement
and this Promissory Note, One-Fifth (1/5) of the principal balance of up to $10,000.00, plus any
accrued interest thereon,shall be forgiven by the Lender each year during the term of this Promissory
Note, with the first date of forgiveness being the date that is one (1) year from the date of the
disbursement set forth in Section `B"of the Redevelopment Agreement and continuing on said date
of each year thereafter for the term of this Promissory Note. Provided that the Borrower does not
Default or otherwise breach this Promissory Note or the Redevelopment Agreement,the full principal
amount of this Promissory Note,plus any accrued interest thereon,shall be forgiven on the expiration
of this Promissory Note.
The Borrower shall be deemed in Default of this Promissory Note if the Borrower:
1) fails to maintain constant and continuous operation of the commercial resale antiquities
and collectibles store on the Property for the term of the Promissory Note;
2) sells or otherwise conveys the subject Property during the term of this Promissory Note;
3) files for bankruptcy or otherwise becomes insolvent during the term of this Promissory
Note;
4) fails to provide annual verification that the ad valorem real estate taxes for the subject
Property have been paid;
5) becomes incapable of maintaining ownership of the Property or if the Property becomes
the subject of foreclosure proceedings;
6) fails to carry adequate insurance on the Property to cover the replacement cost of the
completed Project; or
7) creates a condition of any other default of the Redevelopment Agreement or this
Promissory Note.
In the event the Borrower is in Default under the terms of this Promissory Note or the
Redevelopment Agreement and does not cure said default or breach on or before the thirtieth (30`h)
day after Lender gives Borrower written notice of Default thereof by personal delivery or certified
mailing, the outstanding principal amount, plus any accrued interest thereon, is immediately due to
13
the Lender and the Lender shall be entitled to all remedies permitted by law. Notice shall be deemed
given on the date of personal delivery or date of mailing, whichever applies. No delay or failure in
giving notice of said Default or breach shall constitute a waiver of the right of the Lender to exercise
said right in the event of a subsequent or continuing Default or breach. Furthermore,in the event of
such Default or breach, Borrower promises to reimburse Lender for all collection and/or litigation
costs incurred by the City, including reasonable attorney fees and court costs, whether judgment is
rendered or not.
As signatory to this Note,Jared Kelly guarantees payment of this Promissory Note in the event
the Borrower is in default hereof.
This Promissory Note has been entered into and shall be performed in the City of Canton,
Fulton County,Illinois,and shall be construed in accordance with the laws of the State of Illinois and
any applicable federal statutes or regulations of the United States. Any claims or disputes concerning
this Note shall, at the sole election of the Lender,be adjudicated in Fulton County,Illinois.
CITY BORROWER
CITY OF CANTON, ILLINOIS,an Illinois JARED KELLY,individually
Municipal Corporation
BY: ►�" " BY:
M o red Kelly
Date: 1
Date:
ATTESTED BY:
r
ty Clerk Date:
14
i6 I In 1111 lk 4 e ��
TxA286596
RECORDATION REQUESTED BY:
The City of Canton,Illinois 0 7 623
2 N.Main St.
Canton,IL 61520 PATR I C K O'SR I AN
WHEN RECORDED MAIL TO:
COUNTY CLERK & RECORDER
The City of Canton,Illinois FULTON COUNTY, IL
`/o City Clerk r RECORDED ON
2 N.Main St. 0 7,21, 2023 1 O:48 AM
Canton,IL 61520 RECORDING FEE E7000
PAGES:
PREPARED BY:
Nicolas P.Nelson -
Jacob&Klein,Ltd.
1701 Clearwater Avenue
Bloomington,IL 61704
FOR RECORDER'S USE ONLY
MORTGAGE
THIS MORTGAGE dated July 3,2023, is made and executed between Jared Kelly,whose address is
415 Maple St.,Lewistown,IL 61542(referred to below as"Grantor")and the City of Canton,an Illinois
Municipal Corporation,whose address is 2 N. Main St., Canton, Illinois 61520 (referred to below as
"Lender"). Grantor owes Lender the principal sum of Ten Thousand Dollars and No Cents ($10,000.00)
as evidenced by the Redevelopment Agreement, and Promissory Note attached thereto, executed by Grantor
and Lender on July 3,2023 (hereinafter referred to as the"Redevelopment Agreement"or the"Loan").
GRANT OF MORTGAGE. For valuable consideration, Grantor mortgages, warrants, and conveys to
Lender all of Grantor's right,title,and interest in and to the following described real property,together with all
existing or subsequently erected or affixed buildings,improvements and fixtures;all easements,rights of way,
and appurtenances; and all other rights, royalties, and profits relating to the real property, including without
limitation all minerals, oil, gas, geothermal and similar matters, located at 44 White Ct., Canton, Illinois
(PIN09-08-27-415-016 and the"Real Property").
THIS MORTGAGE IS GIVEN TO SECURE(A)PAYMENT OF THE INDEBTEDNESS AND(B)
PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE REDEVELOPENT
AGREEMENT, THE PROMISSORY NOTE ATTACHED THERETO, THE RELATED
DOCUMENTS,AND THIS MORTGAGE. THIS MORTGAGE IS GIVEN AND ACCEPTED ON
THE FOLLOWING TERMS:
PAYMENT AND PERFORMANCE. Except as otherwise provided in this Mortgage, Grantor shall pay
to Lender all amounts secured by this Mortgage as they become due and shall strictly perform all of Grantor's
obligations under this Mortgage.
POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's
possession and use of the Property shall be governed by the following provisions:
Possession and Use. Until the occurrence of an Event of Default, Grantor may (1) remain in
possession and control of the property; (2) use, operate or manage the Property; and (3) collect the
Rents from the Property.
Duty to Maintain. Grantor shall maintain the Property in good condition and promptly perform all
repairs,replacements,and maintenance necessary to preserve its value.
MORTGAGE(cont'd)
Nuisance,Waste. Grantor shall not cause,conduct or permit any nuisance nor commit,permit,or
suffer any stripping of or waste on or to the Property or any portion of the Property.
Removal of Improvements. Grantor shall not demolish or remove any Improvements from the
Real Property without Lender's prior written consent. As a condition to the removal of any
Improvements, Lender may require Grantor to make arrangements satisfactory to Lender to replace
such Improvements with Improvements of at least equal value.
Lender's Right to Enter. Lender and Lender's agents and representatives may enter upon the Real
Property at all reasonable times to attend to Lender's interests and to inspect the Real Property for
purposes of Grantor's compliance with the terms and conditions of this Mortgage.
Compliance with Governmental Requirements. Grantor shall promptly comply with all laws,
ordinances, and regulations, now or hereafter in effect, of all governmental authorities applicable to
the use or occupancy of the Property. Grantor may contest in good faith any such law,ordinance,or
regulation and withhold compliance during any proceeding,including appropriate appeals, so long as
Grantor has notified Lender in writing prior to doing so and so long as, in Lender's sole opinion,
Lender's interests in the Property are not jeopardized. Lender may require Grantor to post adequate
security or a surety bond,reasonably satisfactory to Lender,to protect Lender's interest.
Duty to Protect. Grantor agrees neither to abandon nor leave unattended the Property. Grantor
shall do all other acts,in addition to those acts set forth above in this section,which from the character
and use of the Property are reasonably necessary to protect and preserve the Property.
TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of
this Mortgage:
Payment. Grantor shall pay when due(and in all events prior to delinquency) all taxes,payroll taxes,
special taxes,assessments,water charges and sewer service charges levied against or on account of the
Property, and shall pay when due all claims for work done on or for services rendered or material
furnished to the Property. Except for the primary lender for the Grantor's project, the Grantor shall
maintain the Property free of any liens having priority over or equal to the interest of Lender under
this Mortgage,except for those liens specifically agreed to in writing by Lender,and except for the lien
of taxes and assessments not due as further specified in the Right to Contest paragraph.
Right to Contest. Grantor may withhold payment of any tax, assessment, or claim in connection
with a good faith dispute over the obligation to pay,so long as Lender's interest in the Property is not
jeopardized. If a lien arises or is filed as a result of nonpayment,Grantor shall within fifteen(15) days
after the lien arises or,if a lien is filed,within fifteen (15) days after Grantor has notice of the filing,
secure the discharge of the lien, or if requested by Lender, deposit with Lender cash or a sufficient
corporate surety bond or other security satisfactory to Lender in an amount sufficient to discharge the
lien plus any costs and attorney's fees,or other charges that could accrue as a result of a foreclosure or
sale under the lien. In any contest,Grantor shall defend itself and Lender and shall satisfy any adverse
judgment before enforcement against the Property. Grantor shall name Lender as an additional oblige
under any surety bond furnished in the contest proceedings.
Evidence of Payment. Grantor shall upon demand furnish to Lender satisfactory evidence of
payment of the taxes or assessments and shall authorize the appropriate governmental official to deliver
to Lender at any time a written statement of the taxes and assessments against the Property.
2
MORTGAGE(cont'd)
LENDER'S EXPENDITURES. If Grantor fails: (A) to keep the Property free of all taxes,liens, security
interests (other than that of the primary lender for the Grantor's project),encumbrances,and other claims, (B)
to provide any required insurance on the Property,or(C) to make repairs to the Property then Lender may do
so. If any action or proceeding is commenced that would materially affect Lender's interests in the Property,
then Lender on Grantor's behalf may, but is not required to, take any action that Lender believes to be
appropriate to protect Lender's interests. All expenses incurred or paid by Lender for such purposes will then
bear interest at the rate charged under the Loan from the date incurred or paid by Lender to the date of
repayment by Grantor. All such expenses will become a part of the Indebtedness and,at Lender's option,will
(A)be payable on demand;(B)be added to the balance of the Loan set forth in the Redevelopment Agreement
(and the Promissory Note attached thereto) and be apportioned among and be payable with any installment
payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining
term of the Loan set forth in the Redevelopment Agreement;or(C)be treated as a balloon payment which will
be due and payable at the Loan's maturity.The Mortgage also will secure payment of these amounts. The rights
provided for in this paragraph shall be in addition to any other rights or any remedies to which Lender may be
entitled on account of any default. Any such action by Lender shall not be construed as curing the default so
as to bar Lender from any remedy that it otherwise would have had.
WARRANTY;DEFENSE OF TITLE. The following provisions relating to ownership of the Property are
a part of this Mortgage:
Title. Grantor warrants that: (a) Grantor holds good and marketable title or record to the Property
in fee simple, free and clear of all liens and encumbrances other than that of a primary lender, those
set forth in the Real Property description or in any title insurance policy, title report, or final title
opinion issued in favor of,and accepted by,Lender in connection with this Mortgage,and(b) Grantor
has the full right,power,and authority to execute and deliver this Mortgage to Lender.
Defense of Title. Subject to the exception in the paragraph above,Grantor warrants and will forever
defend the title to the Property against the lawful claims of all persons. In the event any action or
proceeding is commenced that questions Grantor's title or the interest of Lender under this Mortgage,
Grantor shall defend the action at Grantor's expense. Grantor may be the nominal party in such
proceeding,but Lender shall be entitled to participate in the proceeding and to be represented in the
proceeding by counsel of Lender's own choice, and Grantor will deliver, or cause to be delivered, to
Lender such instruments as Lender may request from time to time to permit such participation.
Compliance With Laws. Grantor warrants that the Property and Grantor's use of the Property
complies with all existing applicable laws,ordinances,and regulations of governmental authorities.
Survival of Promises. All promises,agreements,and statements Grantor has made in this Mortgage
shall survive the execution and delivery of this Mortgage,shall be continuing in nature and shall remain
in full force and effect until such time as Grantor's Indebtedness is paid in full.
CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this
Mortgage:
Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain
proceedings or by any proceeding or purchase in lieu of condemnation, Lender may at its election
require that all or any portion of the net proceeds of the award be applied to the Indebtedness or the
repair or restoration of the Property. The net proceeds of the award shall mean the award after
payment of all reasonable costs,expenses, and attorneys' fees incurred by Lender in connection with
the condemnation.
3
MORTGAGE(cont'd)
FURTHER ASSURANCES; ATTORNEY-IN-FACT. The Following provisions relating to further
assurances and attorney-in-fact are a part of this Mortgage:
Further Assurances. At any time,and from time to time,upon request of Lender,Grantor will make,
execute and deliver,or will cause to be made,executed or delivered,to Lender or to Lender's designee,
and when requested by Lender,cause to be filed,recorded,refilled, or rerecorded,as the case may be,
at such times and in such offices and places as Lender may deem appropriate, any and all such
mortgages, deeds of trust, security deeds, security agreements, financing statements, continuation
statements, instruments of further assurance, certificates, and other documents as may, in the sole
opinion of Lender, be necessary or desirable in order to effectuate, complete, perfect, continue, or
preserve (1) Grantor's obligations under the Loan, this Mortgage, and the Related Documents, and
(2) the liens and security interest created by this Mortgage,whether now owned or hereafter acquired
by Grantor. Unless prohibited by law or Lender agrees to the contrary in writing, Grantor shall
reimburse Lender for all costs and expenses incurred in connection with the matters referred to in this
paragraph.
Attorney-in-Fact. If Grantor fails to do any of the things referred to in the preceding paragraph and
is declared in default, Lender may do so for and in the name of Grantor, and at Grantor's expense.
For such purposes, Grantor hereby irrevocably appoints Lender as Grantor's attorney-in-fact for the
purpose of making, executing, delivering, filing, recording, and doing all other things as may be
necessary or desirable,in Lender's sole opinion,to accomplish the matters referred to in the preceding
paragraph.
FULL PERFORMANCE. If Grantor pays all the Indebtedness when due, and otherwise performs all the
obligations imposed upon Grantor under this Mortgage,Lender shall execute and deliver to Grantor a suitable
satisfaction of this Mortgage and suitable statements of termination of any financing statement on file
evidencing Lender's security interest in the Rents and the Personal Property;
EVENTS OF DEFAULT. At Lender's option,Grantor will be in default under this Mortgage if any of the
following happen:
Payment Default. Grantor fails to make any payment when due under the Indebtedness.
Default on Other Payments. Failure of Grantor within the time required by this Mortgage to make
any payment for taxes or insurance, or any other payment necessary to prevent filing of or to effect
discharge of any lien.
Break Other Promises. Grantor breaks any promise made to Lender or fails to perform promptly
at the time and strictly in the manner provided in this Mortgage or in any agreement related to this
Mortgage.
False Statements. Any representation or statement made or furnished to Lender by Grantor or on
Grantor's behalf under this Mortgage or the Related Documents is false or misleading in any material
respect,either now or at the time made or furnished.
Defective Collateralization. This Mortgage or any of the Related Documents ceases to be in full
force and effect (including failure of any collateral document to create a valid and perfected security
interest or lien) at any time and for any reason.
Insolvency. The dissolution of Grantor, the insolvency of Grantor, the appointment of a receiver
for any part of Grantor's property, any assignment for the benefit of creditors, any type of creditor
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MORTGAGE(cont'd)
workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or
against Grantor.
Taking of the Property. Any creditor or governmental agency tries to take any of the Property or
any other of Grantor's property in which Lender has a lien. This includes taking of,garnishing of or,
levying on Grantor's accounts.
Breach of Other Agreement. Any breach by Grantor under the terms of any other agreement,
including but not limited to the Redevelopment Agreement(and the Promissory Note attached thereto)
executed on July 3,2023,which is incorporated herein by this reference,between Grantor and Lender
that is not remedied within any grace period provided therein, including without limitation any
agreement concerning any indebtedness or other obligation of Grantor to Lender, whether existing
now or later.
Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor,
endorser, surety, or accommodation party of any of the Indebtedness or any guarantor, endorser,
surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity of,
or liability under,any Guaranty of the Indebtedness.
RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of an Event of Default and at any
time thereafter,Lender,at Lender's option,may exercise any one or more of the following rights and remedies,
in addition to any other rights or remedies provided by law:
Accelerate Indebtedness. Lender shall have the right at its option without notice to Grantor to
declare the entire Indebtedness immediately due and payable,including any prepayment penalty that
Grantor would be required to pay.
Mortgagee in Possession. .Lender shall have the right to be placed as mortgagee in possession or
to have a receiver appointed to take possession of all or any part of the Property,with the power to
protect and preserve the Property,to operate the Property preceding foreclosure or sale,and to collect
the Rents from the Property and apply the proceeds, over and above the cost of the receivership,
against the Indebtedness. The mortgagee in possession or receiver may serve without bond if
permitted by law. Lender's right to the appointment of a receiver shall exist whether or not the
apparent value of the Property exceeds the Indebtedness by a substantial amount. Employment by
Lender shall not disqualify a person from serving as a receiver.
Judicial Foreclosure. Lender may obtain a judicial decree foreclosing Grantor's interest in all or any
part of the Property.
Deficiency judgment. If permitted by applicable law, Lender may obtain a judgment for any
deficiency remaining in the Indebtedness due to Lender after application of all amounts received from
the exercise of the rights provided in this section.
Other Remedies. Lender shall Have all other rights and remedies provided in this Mortgage or the
Loan or available at law or in equity.
Sale of the Property. To the extent permitted by applicable law, Grantor hereby waives any and all
right to have the Property marshaled. In exercising its rights and remedies,Lender shall be free to sell
all or any part of the Property together or separately,in one sale or by separate sales. Lender shall be
entitled to bid at any public sale on all or any portion of the Property.
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MORTGAGE(cont'd)
Election of Remedies. All of Lender's rights and remedies will be cumulative and may be exercised
alone or together. An election by Lender to choose any one remedy will not bar Lender from using
any other remedy. If Lender decides to spend money or to perform any of the Grantor's obligations
under this Mortgage,after Grantor's failure to do so,that decision by Lender will not affect Lender's
right to declare Grantor in default and to exercise Lender's remedies.
Attorneys' Fees; Expenses. If Lender institutes any suit or action to enforce any of the terms of
this Mortgage, Lender shall be entitled to recover such sum as the court may adjudge reasonable as
attorneys'fees at trial and upon any appeal. Whether or not any court action is involved, and to the
extent not prohibited by law, all reasonable expenses Lender incurs that in Lender's opinion are
necessary at any time for the protection of its interest or the enforcement of its rights shall become a
part of the Indebtedness payable on demand and shall bear interest at the Loan rate from the date of
the expenditure until repaid. Expenses covered by this paragraph include,without limitation,however
subject to any limits under applicable law,Lender's attorneys'fees and Lender's legal expenses,whether
or not there is a lawsuit,including attorneys'fees and expenses for bankruptcy proceedings (including
efforts_ to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-
judgment collection services, the cost of searching records, obtaining title reports (including
foreclosure reports), surveyors'reports, and appraisal fees and title insurance, to the extent permitted
by applicable law. Grantor also will pay any court cots,in addition to all other sums provided by law.
NOTICES. Any notice required to be given under this Mortgage,including without limitation any notice of
default and any notice of sale shall be given in writing, and shall be effective when actually delivered, when
actually received by telefacsimile (unless otherwise required by law), when deposited with a nationally
recognized overnight courier,or,if mailed,when deposited in the United States mail,as first class, certified or
registered mail postage prepaid,directed to the addresses shown near the beginning of this Mortgage. All copies
of notices of foreclosure from the holder of any lien which has priority over this Mortgage shall be sent to
Lender's address, as shown near the beginning of this Mortgage. Any person may change his or her address
for notices under this Mortgage by giving formal written notice to the other person or persons,specifying that
the purpose of the notice is to change the person's address. For notice purposes, Grantor agrees to keep
Lender informed at all times of Grantor's current address. Unless otherwise provided or required by law,if
there is more than one Grantor,any notice given by Lender to any Grantor is deemed to be notice given to all
Grantors. It will be Grantor's responsibility to tell the others of the notice from Lender.
MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Mortgage:
Amendments. What is written in this Mortgage and in the Related Documents is Grantor's entire
agreement with Lender concerning the matters covered by this Mortgage. To be effective,any change
or amendment to this Mortgage must be in writing and must be signed by whoever will be bound or
obligated by the change or amendment.
Caption Headings. Caption headings in this Mortgage are for convenience purposes only and are
not to be used to interpret or define the provisions of this Mortgage.
Governing Law. This Mortgage will be governed by federal law applicable to Lender and,to
the extent not preempted by federal law, the laws of the State of Illinois without regard to its
conflicts of law provisions. This Mortgage has been accepted by Lender in the State of Illinois.
No Waiver by Lender. Grantor understands Lender will not give up any of Lender's rights under
this Mortgage unless Lender does so in writing. The fact that Lender delays or omits to exercise any
right will not mean that Lender has given up that right. If Lender does agree in writing to give up one
of Lender's rights, that does not mean Grantor will not have to comply with the other provisions of
6
MORTGAGE(cont'd)
this Mortgage. Grantor also understands that if Lender does consent to a request,that does not mean
that Grantor will not have to get Lender's consent again if the situation happens again. Grantor further
understands that just because Lender consents to one or more of Grantor's requests, that does not
mean Lender will be required to consent to any of Grantor's future requests. Grantor waives
presentment,demand for payment,protest,and notice of dishonor.
Severability. If a court finds that any provision of this Mortgage is not valid or should not be
enforced,that fact by itself will not mean that the rest of his Mortgage will not be valid or enforced.
Therefore, a court will enforce the rest of the provisions of this Mortgage even if a provision of this
Mortgage may be found to be invalid or unenforceable.
Merger. There shall be no merger of the interest or estate created by this Mortgage with any other
interest or estate in the Property at any time held by or for the benefit of Lender in any capacity,
without the written consent of Lender.
Successors and Assigns. Subject to any limitations stated in this Mortgage on transfer of Grantor's
interest, this Mortgage shall be binding upon and inure to the benefit of the parties, their successors
and assigns. If ownership of the Property becomes vested in a person other than Grantor, Lender,
without notice to Grantor,may deal with Grantor's successors with reference to this Mortgage and the
Indebtedness by way of forbearance or extension without releasing Grantor from the obligations of
this Mortgage or liability under the Indebtedness.
Time is of the Essence. Time is of the essence in the performance of this Mortgage.
Waiver of Homestead Exemption. Grantor hereby releases and waives all rights and benefits of
the homestead exemption laws of the State of Illinois as to all Indebtedness secured by this Mortgage.
SUBORDINATION OF MORTGAGE: Pursuant to the Loan, this Mortgage shall be subordinate to the
following mortgages:
1) 151 Mortgage on the Real Property held by the primary lender for the Borrower's project located
thereon,upon request of the Borrower.
DEFINITIONS. The following words shall have the following meanings when used in this Mortgage:
Borrower. The word`Borrower"means Jared Kelly and all its successors and assigns.
Event of Default. The words"Event of Default"mean any of the events of default set forth in this
Mortgage in the events of default section of this Mortgage.
Grantor. The word"Grantor"means Jared Kelly.
Guaranty. The word "Guaranty" means the guaranty from guarantor, endorser, surety, or
accommodation party to Lender,including without limitation a guaranty of all or part of the Loan.
Improvements. The word"Improvements"means all existing and future improvements,buildings,
structures, mobile homes affixed on the Real Property, facilities, additions, replacements, and other
construction on the Real Property.
Indebtedness. The word"Indebtedness"means all principal,interest,and other amounts,costs and
expenses payable under the Loan, Redevelopment Agreement (and the Promissory Note attached
7
MORTGAGE(cont'd)
thereto) or Related Documents, together with all renewals of, extensions of, modifications of,
consolidations of and substitutions for the Loan or Related Documents an any amounts expended or
advanced by Lender to discharge Grantor's obligations or expenses incurred by Lender to enforce
Grantor's obligations under this Mortgage,together with interest on such amounts as provided in this
Mortgage.
Lender. The word"Lender"means The City of Canton,Fulton County,Illinois,its successors and/or
assigns. The words"successors or assigns"mean any person or company that acquires any interest in
the Loan.
Mortgage. The word"Mortgage"means this Mortgage between Grantor and Lender.
Loan. The word "Loan" means the Loan set forth in the Redevelopment Agreement and the
Promissory Note attached thereto executed by the Parties on July 3, 2023, together with all renewals
of, extensions of, modifications of,refinancing of, consolidations of, and substitutions. The interest
rate on the Loan is three percent(3.0%)per annum.
Real Property. The words "Real Property" mean the real property,interests and rights, as further
described in this Mortgage.
Related Documents. The words "Related Documents" mean all promissory notes, credit
agreements, loan agreements, environmental agreements, guaranties, mortgages, deeds of trust,
collateral mortgages and Redevelopment Agreement executed by the Parties on or about July 3,2023,
and all other instruments,agreements and documents,whether now or hereafter existing,executed in
connection with the Indebtedness.
GRANTOR ACKNOWLEDGES HAVING REAL ALL THE PROVISIONS OF THIS
MORTGAGE,AND GRANTOR AGREES TO ITS TERMS.
GRANTOR:
Jared Kelly,individually
BY: �L"T/ Date:
Jared Kelly
8
MORTGAGE(cont'd)
INDIVIDUAL ACKNOWLEDGMENT
STATE OF ILLINOIS )
SS.
COUNTY OF FULTON )
On this day before me,the undersigned Notary Public,personally appeared Jared Kelly,to me known
to be the individual described in and who executed the Mortgage and acknowledged that he signed the Mortgage
as his free and voluntary act and deed,for the uses and purposes therein mentioned.
Given under my hand and official seal this day of ,2023.
By Residing atn. / Y
Notary Public in and for the State of Illinois.
My commission expires
C OFFICIAL SEAL
CAROL E KOHLER
NOTARY PUBLIC,STATE OF ILLINOIS
MY COMMISSION EXPIRES:1010212026
9
EXHIBIT 5
CITY OF CANTON,ILLINOIS
CANTON BUSINESS DEVELOPMENT DISTRICT (BDD)NO.1
PRIVATE PROJECT REQUEST FOR
VERIFICATION OF BDD ELIGIBLE PROJECT COSTS
by
JARED KELLY
(44 WHITE CT.)
Date
Attention: City BDD Administrator,City of Canton,Illinois
Re: BDD Redevelopment Agreement,dated July 3,2023
by and between the City of Canton,Illinois,and Jared Kelly(the"Developer")
The City of Canton is hereby requested to disburse funds from the Canton BDD Special Tax
Allocation Fund pursuant to the Redevelopment Agreement described above in the following amount(s), to
the Developer and for the purpose(s) set forth in this Request for Reimbursement. The terms used in this
Request for Reimbursement shall have the meanings given to those terms in the Redevelopment Agreement.
1. REQUEST FOR REIMBURSEMENT NO.
❑ This is the final request for verification of BDD eligible project costs (Developer initials)
2. REIMBURSEMENT PAYABLE TO: Jared Kell
3. AMOUNTS REQUESTED TO BE DISBURSED:
Description of BDD Eligible Project Cost Amount
Total
4. The amount requested to be disbursed pursuant to this Request for Reimbursement will be used to
reimburse the Developer for Redevelopment Project Costs for the Project detailed in Exhibit`7"of the
Redevelopment Agreement.
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5. The undersigned certifies that:
(i) the amounts included in (3) above were made or incurred or financed and were necessary for the
Project and were made or incurred in accordance with the construction contracts, plans and
specifications heretofore in effect;and
(ii) the amounts paid or to be paid,as set forth in this Request for Reimbursement,represent a part of .
the funds due and payable for BDD Eligible Project Costs;and
(iii) the expenditures for which amounts are requested represent proper Redevelopment Project Costs
as identified in the `7 imitation of Incentives to Developer" described in Section "C" of the
Redevelopment Agreement, have not been included in any previous Request for Reimbursement,
have been properly recorded on the Developer's books and are set forth with invoices attached for
all sums for which reimbursement is requested,and proof of payment of the invoices;and
(iv) the amounts requested are not greater than those necessary to meet obligations due and payable or
to reimburse the Developer for its funds actually advanced for Redevelopment Project Costs;and
(v) the Developer is not in default under the Redevelopment Agreement, and nothing has occurred to
the knowledge of the Developer that would prevent the performance of its obligations under the
Redevelopment Agreement.
6. Attached to this Request for Reimbursement is Exhibit "1"of the Redevelopment Agreement, together
with copies of invoices,proof of payment of the invoices,and Mechanic's Lien Waivers relating to all items
for which reimbursement is being requested.
BY: (Developer)
TITLE:
APPROVED BY CITY OF CANTON,ILLINOIS
BY:
TITLE: DATE:
REVIEWED BY JACOB&KLEIN,LTD.&THE ECONOMIC DEVELOPMENT GROUP,LTD.
BY:
TITLE: DATE:
17