HomeMy WebLinkAboutOrdinance #4379 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
21ST DAY OF NOVEMBER, 2023, ADOPTED ORDINANCE NO. 4379, A TRUE AND
CORRECT COPY OF WHICH IS CONTAINED IN THIS PAMPHLET.
GIVEN UNDER MY HAND AND SEAL THIS 21 ST DAY OF NOVEMBER, 2023.
(SEAL)
ZVI
DI SMITH-WALTERS
CITY CLERK
STATE OF ILLINOIS).
) SS.
COUNTY OF FULTON)
CERTIFICATE
I, Andi Smith-Walters, certify that I am the duly elected City Clerk of
the CITY OF CANTON, FULTON COUNTY, ILLINOIS.
I further certify that on NOVEMBER 21, 2023. the City Council of such
municipality passed and approved Ordinance #4379 entitled:
AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A
TIF REDEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF CANTON,FULTON COUNTY,
ILLINOIS AND
309 DEVELOPMENTS,
LLC AND
JEDEDIAH
RHOADES AND
MAX KUMER
The ordinance attached is a true and correct copy of the ordinance adopted by Canton
City Council.
DATED AT CANTON, ILLINOIS, THIS 21ST DAY OF NOVEMBER 2023
Seal
n
br
ndi Smith-Walters, City Clerk
ity of Canton, Illinois
CITY OF CANTON, ILLINOIS
ORDINANCE NO. 4 3 7 9
AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A
TIF REDEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF CANTON,FULTON COUNTY,ILLINOIS
AND
309 DEVELOPMENTS,LLC
AND
JEDEDIAH RHOADES
AND
MAX KUMER
PASSED BY THE CITY COUNCIL
OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS,
ON THE 21ST DAY OF NOVEMBER,2023.
PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY
COUNCIL OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS,
THIS 21ST DAY OF NOVEMBER,2023.
EFFECTIVE: NOVEMBER 21,2023
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CITY OF CANTON, ILLINOIS: ORDINANCE NO. 4379
CANTON 2—RT.9/CHESTNUT STREET
TAX INCREMENT FINANCING (TIF) DISTRICT
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF A REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON
and
309 DEVELOPMENTS,LLC
and
JEDEDIAH RHOADES
AND
MAX KUMER
BE IT ORDAINED BY THE CITY OF CANTON, FULTON COUNTY, ILLINOIS
THAT:
1. The Redevelopment Agreement with 309 Developments, LLC (Exhibit A attached) is
hereby approved.
2. The Mayor is hereby authorized and directed to enter into and execute on behalf of the
City said Redevelopment Agreement and the City Clerk of the City of Canton is hereby
authorized and directed to attest such execution.
3. The Redevelopment Agreement shall be effective the date of its approval on the 215`day
of November, 2023.
4. This Ordinance shall be in full force and effect from and after its passage and approval as
required by law.
[the remainder of this,page is intentionally blank]
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PASSED, APPROVED AND ADOPTED by the Corporate Authorities of the City of Canton,
Fulton County, Illinois, on the 215` day of November, 2023, and deposited and filed in the Office of
the City Clerk of said City on that date.
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: Date:4/ �1/2023
Kent A.McDowe ,Mayo , ity of Canton
ATTEST: Date:/L/_ZL/2023
ndi Smith-Walters,City Clerk, City of Canton
ATTACHMENTS:
EXHIBIT A. REDEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF CANTON AND 309
DEVELOPMENTS,LLC.AND JEDEDIAH RHOADES AND MAX KUMER.
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EXHIBIT A
CANTON 2 — RT. 9/CHESTNUT STREET
TAX INCREMENT FINANCING DISTRICT
REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON, FULTON COUNTY, ILLINOIS
and
309 DEVELOPMENTS, LLC
and
JEDEDIAH RHOADES
and
MAX KUMER
NOVEMBER 21, 2023
CANTON 2—RT. 9/CHESTNUT STREET TIF DISTRICT
TIF REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON
and
309 DEVELOPMENTS, LLC
and
JEDEDIAH RHOADES
and
MAX KUMER
THIS TIF REDEVELOPMENT AGREEMENT (including Exhibits) is entered into this
21" day of November, 2023, by the City of Canton (the "City"), an Illinois Municipal Corporation,
Fulton County, Illinois, and 309 Developments, LLC, an Illinois Limited Liability Company, and
Jedediah Rhoades, and Max Kumer (collectively the "Developer").
PREAMBLE
WHEREAS, the City has the authority to promote the health, safety,and welfare of the City
and its citizens and to prevent the spread of blight and deterioration and inadequate public facilities
by promoting the development of private property thereby increasing the tax base of the City and
providing employment for its citizens; and
WHEREAS, pursuant to 65 ILCS 5/8-1-2.5, a municipality may appropriate and expend
funds for economic development purposes, including without limitation for commercial enterprises
that are deemed necessary or desirable for the promotion of economic development within the
community;and
WHEREAS, pursuant to the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-
74.4.4 et. seq., as amended (the"TIF Act"), the City has the authority to provide incentives to owners
or prospective owners of real property to develop, redevelop, and rehabilitate such property by
reimbursing the owners for certain costs from resulting increases in real estate tax revenues;and
WHEREAS,on February 6,2021,recognizing the need to foster the development,expansion
and revitalization of certain properties which are vacant, underutilized, or undeveloped, the City
adopted Tax Increment Financing under the TIF Act, approved a Redevelopment Plan, and
designated a Redevelopment Area known as the "Canton 2—Rt. 9/Chestnut Street TIF District"
and hereinafter referred to as the"TIF District"); and
WHEREAS, property located at 305 W. Locust St., Canton, Illinois, (PIN 09-08-27-318-
019, hereinafter referred to as the "Property" and further described in Exhibit "I"attached hereto)
was acquired by the Developer in 2023 and is within the TIF District Redevelopment Project Area;
and
WHEREAS, said Property is also located within the City of Canton Business Development
District No. 1 Redevelopment Project Area,which was established by the City on March 15,2022,by
Ordinance No. 4281 pursuant to the Business District Development and Redevelopment Act, 65
ILCS 5/11-74.3 et. seq. (the `BDD Act");and
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WHEREAS, pursuant to the BDD 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 has acquired the Property and intends to proceed with plans to
construct a new 32 ft. x 12 ft. building located thereon for use as a retail drive-thru coffee shop to be
known as Dame Fine Coffee(the"Project"),and the Developer is undertaking the Project based upon
incentives made available by the City;and
WHEREAS, it is the intent of the City to encourage economic development which will
increase the real estate tax base of the City,which increased incremental taxes will be used,in part, to
finance incentives to assist development within the TIF District;and
WHEREAS, the Developer's proposed Project is consistent with the TIF District
Redevelopment Plan and Projects for the Redevelopment Project Area and shall further conform to
the land uses of the City as adopted; and
WHEREAS,pursuant to Section 5/11-74.4-4(b) of the TIF Act,the City may make and enter
into all contracts with property owners, developers, tenants, overlapping taxing bodies, and others
necessary or incidental to the implementation and furtherance of the Redevelopment Plan;and
WHEREAS, pursuant to Section 5/11-74.4-40) of the TIF Act, the City may incur project
redevelopment costs and reimburse developers who incur redevelopment project costs authorized by
a redevelopment agreement and further defined in Section 5/11-74.4-3(q) of the TIF Act,including
those Estimated TIF Eligible Project Costs as herein listed in the attached Exhibit "1" of this
Redevelopment Agreement;and
WHEREAS, the Developer requested that incentives for the development be provided by
the City from incremental increases in real estate taxes of the City generated from its Project and the
City agreed to such incentives; and
WHEREAS, the City has determined that this Project required the incentives requested as
set forth herein and that said Project will,as a part of the Plan,promote the health, safety and welfare
of the City and its citizens by attracting private investment to prevent blight and deterioration and to
generally enhance the economy of the City;and
WHEREAS, the City has reviewed the conditions of the Property and has reason to believe
that the costs of the necessary public and private improvements to be incurred by the Developer in
furtherance of the Project are eligible project costs under the TIF Act and are consistent with the
Redevelopment Plan of the City;and
WHEREAS, the City and the Developer have agreed that the City shall provide a forgivable
loan to the Developer for the reimbursement of a portion of the Developer's TIF Eligible Project
Costs(as set forth in Exhibit"1"attached hereto) of an amount not to exceed Forty-Five Thousand
and No/100 Dollars ($45,000.00) to be paid from the Canton TIF District 2 Special Tax Allocation
Fund as specified below in Section "C,"Incentives,and in exchange for the loan,the Developer shall
issue a promissory note to the City in the amount of$45,000 as set forth in Exhibit "2"attached
hereto; and
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WHEREAS, in the event the Developer is unable to verify sufficient TIF Eligible Project
Costs pursuant to Section "F"below, the City may at its discretion utilize funds available within the
Canton Business Development District No. 1 Special Tax Allocation Fund,if necessary,to reimburse
a portion of the Developer's new construction costs to fully fund the aforementioned forgivable loan,
not to exceed$45,000; and
WHEREAS,in no event shall cumulative maximum reimbursements for the Developer's TIF
Eligible Project Costs or BDD Eligible Project Costs under this Agreement exceed Forty-Five
Thousand and No/100 Dollars ($45,000.00);and
WHEREAS, the Parties have agreed to the incentives set forth herein in order to facilitate
the Project;and
WHEREAS, in consideration of the execution of this Agreement, the Developer shall
proceed with and complete the Project as set forth in Exhibit "1;"and
WHEREAS, the City is entering into this Agreement having encouraged and induced the
Developer to proceed with the Project located on said Property.
AGREEMENTS
NOW,THEREFORE,the Parties,for good and valuable consideration,the receipt of which
is acknowledged,agree as follows:
A. PRELIMINARY STATEMENTS
1. The Parties agree that the matters set forth in the recitals above are true and correct and form
a part of this Agreement.
2. Any terms which are not defined in this Agreement shall have the same meaning as they do in
the TIF Act,unless indicated to the contrary.
3. The Developer shall remain in compliance with all municipal ordinances relating to property
development,property condition,zoning, subdivision and building codes. Failure to cure the
violation of any such ordinance within thirty (30) days upon being provided written notice of
the same by the City shall be cause for the City to declare the Developer in Default and
unilaterally terminate this Agreement, except where such failure is not reasonably susceptible
to cure within such 30-day period,in which case the Developer shall have such additional time
to cure as is reasonably necessary, provided that the Developer has commenced such cure
within such 30-day period and continues to diligently prosecute the same to completion.
4. The Developer shall complete the Project within six(6)months from the date this Agreement
is executed, subject to extension due to Force Majeure (defined below). The Project shall be
deemed to be complete when the new building has been constructed and commences retail
business operations as a drive-thru coffee shop.
5. Each of the Parties represents that it has taken all actions necessary to authorize its
representatives to execute this Agreement.
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B. ADOPTION OF TAX INCREMENT FINANCING AND BDD
The City has created a Tax Increment Financing District known as the "Canton 2 — Rt.
9/Chestnut Street TIF District" and a Business Development District known as Canton BDD No. 1,
both of which include the Developer's Property. The City has approved certain Redevelopment
Project Costs,including the types described in Exhibit '1"for the Developer's Project.
C. INCENTIVES
In consideration for the Developer purchasing the Property and completing the Project as set
forth herein, the City agrees to extend to the Developer the following incentives to assist the
Developer's Project:
1. In exchange for a promissory note to be issued by the Developer to the City as set forth in
Exhibit "2"attached hereto, the City agrees to loan to the Developer (also, the"Borrower")
the sum of Forty-Five Thousand and No/100 Dollars ($45,000.00) as reimbursement for
the Developer's TIF Eligible Project Costs incurred in furtherance of the Project from the
Canton TIF District 1 Special Tax Allocation Fund. The terms and conditions for the loan
shall be as follows:
a. The full Loan amount of$45,000.00 shall be paid to the Developer from the Canton
TIF District 1 Special Tax Allocation Fund within thirty (30) days following the
execution of this Agreement, or upon verification of a minimum of$45,000 of TIF
Eligible Project Costs pursuant to Section "E"below,whichever occurs later.
b. A separate Promissory Note is attached hereto as Exhibit "2".
c. The interest rate for the note shall be Three Percent (3%) per annum and shall begin
to accrue on the date the loan funds are disbursed to the Developer.
d. The term of the note shall expire five (5) years from the date the loan funds are
disbursed to the Developer hereunder.
e. 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 shall ensure constant and continuous operation of the drive-
thru coffee shop located on the Property from the time the Project is
complete and continuing for the term of this Agreement.
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.
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iv. The Property is not the subject of foreclosure proceedings during the term
of this Agreement.
V. The Developer does not sell or otherwise convey the Property during the
term of this Agreement.
vi. The Developer shall carry adequate insurance on the Property to cover the
replacement cost of the completed Project.
vii. As signatories to this Agreement and the Note, 309 Developments, LLC.,
Jedediah Rhoades, and Max Kumer shall be guarantors for the Note and
shall be jointly and severally liable in the event of a default thereof by the
Developer.
2. In the event the Developer is unable to verify enough TIF Eligible Project Costs pursuant to
Section "F"below but otherwise has unreimbursed Business District Eligible Project Costs
which have been verified pursuant to Section F below,the City may in its sole discretion utilize
funds available within the Canton Business Development District No. 1 Special Tax Allocation
Fund,if necessary, to disburse the loan set forth in Section "C(1)"above.
D. LIMITATION OF INCENTIVES TO DEVELOPER
1. The Developer shall be reimbursed by the City for all Eligible Project Costs permitted by the
TIF Act or the BDD Act (subject to a limitation of $45,000.00) from the real estate tax
increment generated and deposited into the Canton 2 — Rt. 9/Chestnut Street Special Tax
Allocation Fund, or from the Canton BDD No. 1 Special Tax Allocation Fund, but only for
the term of the Agreement. The parties may add additional phases and eligible project costs
in excess of the amount authorized by this Agreement upon mutual agreement.
2. It is not contemplated nor is the City obligated to use any of its proportionate share of the
monies for any of the Developer's Eligible Project Costs but,rather,the City shall use its sums
for any purpose under the TIF Act as it may in its sole discretion determine.
3. The Developer agrees to substantially complete the project, subject to Force Majeure, as
defined below.
E. PAYMENT OF ELIGIBLE PROJECT COSTS
1. Payment to the Developer for TIF Eligible Project Costs as set forth by the TIF Act or BDD
Eligible Project Costs as set forth by the BDD Act,shall be made by a Requisition for Payment
of Private Development Redevelopment Costs (Exhibit "3'; the "Requisition") submitted
from time to time by the Developer to the City's TIF/BDD Administrator Jacob & Klein,
Ltd., with copy to The Economic Development Group, Ltd. (collectively, the
"Administrator"), and subject to the Administrator's approval of the costs and to the
availability of funds in the Special Account.
2. All Requisitions must be accompanied by verified bills or statements of suppliers,contractors,
or professionals together with mechanic's lien waivers (whether partial or full) from each of
the parties entitled to a payment that is the subject of the Requisition as required by the City.
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3. For the Developer to receive reimbursement of Eligible Project Costs for costs it has
incurred in any year as set forth in Paragraphs "1"and 'T"above, the Developer must
submit such proposed eligible costs to the City by March 1 of the following year. If
there are no accumulated outstanding costs previously submitted and approved by the City
and if the Developer does not submit such proposed eligible costs by this deadline, the
Developer will forfeit reimbursement of such costs from the prior year's real estate tax
increment to be paid in the current year. Any approved eligible costs submitted after this
deadline will be eligible for reimbursement from the next year's real estate increment receipts.
4. Any real estate tax increment not required to be paid to the Developer under the terms of
Paragraph "3"above shall be available to the City for any purpose set forth in the TIF Plan
and allowed by the TIF Act.
5. The Developer shall use such sums received as reimbursement for TIF Eligible Project Costs
only to the extent permitted by law and the TIF Act and may allocate such funds for any
purpose for the terms of this Agreement or the term of the TIF District whichever is longer.
6. The Developer shall use such sums received as reimbursement for BDD Eligible Project Costs
only to the extent permitted by law and the BDD Act and may allocate such funds for any
purpose for the terms of this Agreement or the term of the Canton Business Development
District No. 1,whichever is longer.
7. The Administrator shall approve or disapprove a Requisition by written receipt to the
Developer within thirty (30) business days after receipt of the Requisition. Approval of the
Requisition will not be unreasonably withheld. If a Requisition is disapproved by the
Administrator,the reasons for disallowance will be set forth in writing and the Developer may
resubmit the Requisition with such additional information as may be required and the same
procedures set forth herein shall apply to such re-submittals.
8. All TIF Eligible Project Costs and/or BDD Eligible Project Costs approved shall then be paid
by the City from the appropriate Special Tax Allocation Fund to the Developer, or to others
as directed by the Developer, pursuant to the TIF Redevelopment Plan and/or the BDD
Redevelopment Plan and as allowed by Illinois Law. The City shall pay such approved Eligible
Costs, provided the Developer has satisfied the terms of this Agreement and costs which
exceed the amount available to pay the Developer shall carry forward, until paid, without
further action of the Developer.
9. The Parties acknowledge that the determination of Eligible Project Costs, and, therefore,
qualification for reimbursement hereunder are subject to changes or interpretation made by
amendments to the TIF Act and the BDD Act, respectively, administrative rules or judicial
interpretation during the term of this Agreement.The City has no obligation to the Developer
to attempt to modify those decisions but will assist the Developer in every respect as to
obtaining approval of Eligible Project Costs.
F. ANNUAL VERIFICATION OF TAX INCREMENT AND JOBS CREATED
1. It shall be the sole responsibility of the Developer, or its designee, to annually provide to the
City, as requested in writing, copies of all PAID real estate tax bills for the Property.
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2. The annual reimbursement of real estate tax increment by the City to the Developer as set
forth in Section C above shall be conditioned upon the Developer providing the City with the
numbers of jobs created or retained by the Project for a particular year if requested by the City
to do so for that year.
3. The failure of Developer to provide any information required herein after written notice from
the City, and the continued failure to provide such information within (30) days after such
notice, shall be considered a breach of this Agreement and shall be cause for the City to deny
payments hereunder to the Developer, which payments are conditional upon receipt of the
foregoing information.
G. REIMBURSEMENT OF DEVELOPER INCENTIVE AMOUNTS RECEIVED
IF CITY IS REQUIRED TO REFUND MONIES DUE TO FILING OF DEVELOPER
TAX OBJECTION OR ASSESSMENT APPEAL
1. If a refund of tax increment (including any accrued statutory interest thereon) is potentially
due from the City's TIF Fund as the result of any tax objection, assessment challenge, filing
for a property tax exemption under Section 200/15-86 of the Illinois Property Tax Code or
appeal to the Illinois Property Tax Appeal Board (PTAB),issuance of a certificate of error or
other such action, including any appeals therefrom, concerning the potential reduction of
assessed value of the Property, the City may at its sole discretion withhold the Developer's
share of any such possible refund (including any accrued statutory interest thereon) from
future reimbursements calculated to be paid to the Developer under this Agreement.
Furthermore, the Developer is hereby obligated to provide written notice to the City within
five (5) business days of its filing any such objection, assessment challenge or formal appeal
to the PTAB or other such action, including any appeals therefrom, that could potentially
reduce the assessed value of the Property. Failure to provide such notice shall be considered
a breach of this Agreement and shall be cause for the City to deny payments hereunder to the
Developer.
2. Any funds withheld by the City under this Section G shall be deposited by it into a separate
interest-bearing bank account. Upon final determination of the assessed value of the Property,
the City shall pay to the Developer the principal amount due under this Agreement as
recalculated. The City shall be entitled to retain any interest earned on the account as partial
payment for the administration of the account due to the delay of the determination of the
final evaluation and recalculation of the benefits due the Developer under this Agreement.
3. If it appears to the City that it will be unable to recover the Developer's share of any such
refund (including any accrued statutory interest thereon) from the remaining future
reimbursements due the Developer under this Agreement, the Developer shall reimburse the
City for the Developer's remaining unpaid share of such refund within thirty (30) days upon
receiving written demand of the same from the City.
4. Notwithstanding anything contained in this Agreement to the contrary, the obligations
contained in this Section "G"shall remain in effect for the remaining life of the TIF District,
whether the TIF District expires upon the current expiration of the Redevelopment Plan and
Projects adopted by the City (tax year 2035 payable 2036) at an earlier time if the City passes
an ordinance terminating the TIF District; or at a later time if the TIF District is legislatively
extended. Furthermore, the obligations set forth in this Section "G" shall survive the
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expiration of the TIF District if a tax objection or other such action taken by the Developer
is pending prior to the expiration of the TIF District and shall continue until final disposition
of such action.
H. LIMITED OBLIGATION
The City's obligation hereunder to pay the Developer for Eligible Project Costs is a limited
obligation to be paid solely from the Canton 2—Rt. 9/Chestnut TIF District Special Tax Allocation
Fund and/or the Canton Business Development District No. 1 Special Tax Allocation Fund. Said
obligation does not now and shall never constitute an indebtedness of the City within the meaning of
any State of Illinois constitutional or statutory provision and shall not constitute or give rise to a
pecuniary liability of the City or a charge or lien against any City fund or require the City to utilize its
taxing authority to fulfill the terms of this Agreement.
I. CITY PUBLIC PROJECTS
The City intends to use part or all of its share of the Project's real estate increment for other
public projects within the TIF District or within contiguous TIF Districts as allowed by law.The City
shall be eligible for reimbursement of the cost of doing so, as well as other eligible costs incurred by
the City in the TIF District.
J. LIMITED LIABILITY OF CITY
TO OTHERS FOR DEVELOPER'S EXPENSES
There shall be no obligation by the City to make any payments to any person other than the
Developer, nor shall the City be obligated to make direct payments to any other contractor,
subcontractor, mechanic, or materialman providing services or materials to the Developer for the
Developer's Project.
K. COOPERATION OF THE PARTIES
1. The City and the Developer agree to cooperate fully with each other when requested to do so
concerning the development of the Developer's Redevelopment Project. This includes
without limitation the City assisting or sponsoring the Developer, or agreeing to jointly apply
with the Developer,for any grant,award,subsidy or additional funding which may be available
from other governmental sources as the result of the Developer's or City's activities. This also
includes without limitation the Developer assisting or sponsoring the City, or agreeing to
jointly apply with the City,for any grant,award,or subsidy which may be available as the result
of the City's or the Developer's activities.
2. The Parties agree to take such actions,including the execution and delivery of such documents,
instruments, petitions, and certifications (and, in the City's case, the adoption of such
ordinances and resolutions), as may be necessary or appropriate, from time to time, to carry
out the terms, provisions, and intent of this Agreement and to aid and assist each other in
carrying out said terms,provisions, and intent.
3. The Parties shall cooperate fully with each other in seeking from any or all appropriate
governmental bodies all approvals (whether federal, state, county or local) required or useful
for the construction or improvement of property and facilities in and on the Property or for
the provision of services to the Property, including, without limitation, wetland mitigation,
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gas, telephone, and electric utility services, roads, highways, rights-of-way,water and sanitary
sewage facilities, and storm water disposal facilities.
L. DEFAULT; CURE; REMEDIES
In the event of a default under this Redevelopment Agreement by any party hereto (the
"Defaulting Party"), which default is not cured within the cure period provided for below, then the
other Party (the "Non-defaulting Party"), may have an action for damages, or, in the event damages
would not fairly compensate the Non-defaulting Parties for the Defaulting Party's breach of this
Redevelopment Agreement,the Non-defaulting Party shall have such other equity rights and remedies
as are available to them at law or in equity.Any damages payable by the City hereunder shall be limited
to the real estate tax increment payable to the Developer under the terms of this Agreement.
In the event a Defaulting Party shall fail to perform a monetary covenant which it is required
to perform under this Redevelopment Agreement, it shall not be deemed to be in default under this
Redevelopment Agreement unless it shall have failed to perform such monetary covenant within thirty
(30) days of its receipt of a notice from a Non-defaulting Party specifying that it has failed to perform
such monetary covenant. In the event a Defaulting Party fails to perform any nonmonetary covenant
as and when it is required to under this Redevelopment Agreement, it shall not be deemed to be in
default if it shall have cured such default within thirty (30) days of its receipt of a notice from a Non-
defaulting Party specifying the nature of the default, provided, however, with respect to those
nonmonetary defaults which are not capable of being cured within such thirty (30) day period,it shall
not be deemed to be in default if it commences curing within such thirty(30) day period,and thereafter
diligently and continuously prosecutes the cure of such default until the same has been cured.
M. TIME; FORCE MAJEURE
For this Agreement, time is of the essence. The Developer agrees to complete this Project
within six (6) months following the date of execution of this Agreement. Failure to do so shall be
cause for the City to declare the Developer in default and unilaterally terminate this Agreement.
However, the Developer and the City shall not be deemed in default with respect to any obligations
of this Agreement on its part to be performed if the Developer or City fails to timely perform the
same and such failure is due in whole, or in part, to any strike, lock-out, labor trouble (whether legal
or illegal), civil disorder,inability to procure materials,weather conditions wet soil conditions, failure
or interruptions of power, restrictive governmental laws and regulations, condemnation, riots,
insurrections,war, fuel shortages,accidents, casualties,Acts of God,acts caused directly or indirectly
by the City (or the City's agents,employees or invitees)when applicable to Developer or third parties,
or any other cause beyond the reasonable control of Developer or the City.
N. ASSIGNMENT
The rights (including,but not limited to, the right to payments contemplated by Section "C"
of this Agreement) and obligations (or either of them) of the Developer under this Agreement shall
not be assignable unless by written authorization of the City.
O. 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
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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.
P. 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.
Q. 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:
TO CITY TO DEVELOPER
City of Canton 309 Developments,LLC
`/o City Clerk `/o Jedediah Rhoades,Manager
2 N. Main St. 130 N. Main St.
Canton, Illinois 61520 Canton, IL 61520
Ph: (309) 647-0020 Ph: (309) 333-0616
With copy to: Jedediah Rhoades
Jacob &Klein,Ltd. and 26089 N. County Hwy 22
The Economic Development Group,Ltd. Canton,IL 61520
1701 Clearwater Avenue Ph: (309) 333-0616
Bloomington, Illinois 61704
Ph: (309) 664-7777 Max Kumer
23271 N. Seneca Ct.
Cuba,IL 61427
With copy to:
11
R. SUCCESSORS IN INTEREST
Subject to the provisions of Section "IV"above, this Agreement shall be binding upon and
inure to the benefit of the Parties hereto and their respective successors and assigns.
S. 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.
T. 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.
U. 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.
V. TERM OF THE AGREEMENT
Notwithstanding anything contained herein to the contrary, this Agreement shall expire on
the date that is five (5) years from the date the loan funds are disbursed to the Developer pursuant
to Section "C"above. The Agreement shall expire sooner if the Developer files for bankruptcy or
otherwise becomes insolvent, the Property becomes the subject of foreclosure proceedings, or upon
default by the Developer of this Agreement or the Promissory Note.
W. ILLINOIS PREVAILING WAGE ACT
It is the understanding of the Parties that the position of the Illinois Department of Labor is
that the Illinois Prevailing Wage Act does not apply to Sales Tax Reimbursements received by private
developers as reimbursement for private redevelopment project costs. This position of the
Department of Labor is stated as an answer to a FAQ on its website at https://labor.illinois.gov/.
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. seg.), 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
12
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.
X. 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.
THIS AGREEMENT IS INTENDED TO BE A LEGAL DOCUMENT. AN ATTORNEY AT
LAW SHOULD BE CONSULTED PRIOR TO THE EXECUTION OF THIS DOCUMENT.
(The remainder of thi page is intentionally left blank.)
13
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 309 DEVELOPMENTS, LLC, an Illinois
Municipal Corporation Limited Lia ility Co y
A
BY: BY:
y e ediah Rhoades,Manager
Date:I��pZ l�a..� ��-�
Date: // ;7'
JEDEDIAH R OADE individually
A40erk
ED BY:
BY:
1,/ 4 �21'r.16� UM
diah Rhoades
Date: ��`�7-�u�3
Date: ��Z 7 Zbz3
MAX KUMER,individually
BYE
Max K,
Date:
Attachments:
Exhibit 1. Summary of TIF Eligible Project Costs.
Exhibit 2. Promissory Note.
Exhibit 3. Request for Verification of TIF Eligible Project Costs by 309 Developments,LLC. and
Jedediah Rhoades and Max Kumer.
14
EXHIBIT 1
SUMMARY OF ESTIMATED TIF AND BDD ELIGIBLE PROJECT COSTS
CANTON 2—RT. 9/CHESTNUT STREET TIF DISTRICT
CANTON BDD NO. 1
309 Developments, LLC Redevelopment Project
Project Description: Developer acquired the Property in 2023 and intends to proceed with plans to
prepare a site on the Property to construct a new 32 ft. x 12 ft. building at the corner of W.Locust St.
and N.Avenue C for use as a retail drive-thru coffee shop to be known as Dame Fine Coffee.
Location: 305 W. Locust St., Canton, IL (PIN 09-08-27-318-019) and further described as
SECT/LOT: 09 FRENCH S ADDITION E76 S 129.
Aw~ t
Ill o '1
_ I
Panel Information
PdJ 09-08-37-31&-019
r.Er"ce More lr.'o ,• ,;
Ceeded Acr 0.00
GIS_Acreag 0.23
<e_adc:e 30:4V LOCUST _
�•�: �• �. __csc CANTON IL 51520 -
yrcv_acre 0.00
�: hamesrte n 0.00
0.00
�' doss ac 0060
o.,ncrt n m NEIGEL JEFFL
onn1 add 303 W LOCUST
f
C1 ,
e'
15
Developer's Estimated TIF Eligible Project Costs:
Professionalfees..........................................................................................................................$5,500
Demolition/site preparation...................................................................................................$15,000
Public infrastructure (sidewalks) ...............................................................................................$9,720
PropertyAcquisition................................................................................................................$29,500
TOTAL ESTIMATED TIF ELIGIBLE PROJECT COSTS'.............................$59,720
Developer's Estimated BDD Eligible Project Costs:
Construction of new building...............................................................................................$135,000
Construction of parking lot and driveway............................................................................$15,000
TOTAL ESTIMATED BDD ELIGIBLE PROJECT COSTS .........................$150,000
1 NOTE: The total, cumulative reimbursement of TIF real estate tax increment for TIF Eligible Project Costs payable
by the City to the Developer shall not exceed$45,000.00 for costs relating solely to professional fees,demolition/site
preparation and public infrastructure costs incurred by the Developer, as set forth in this Redevelopment
Agreement. Although shown here in Exhibit "l"for information purposes,the City shall not reimburse any portion of
the Developer's land acquisition costs. BDD Eligible Project Costs as set forth in this Exhibit"I"may be reimbursed
pursuant only to Section "C(2)"of this 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 such other TIF eligible redevelopment
project costs in connection with the Developer's Project, provided the total amount of payment for all eligible
redevelopment project costs,public and private,shall not exceed the total amount of$45,000 as set forth herein.
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EXHIBIT 2
PROMISSORY NOTE
FOR VALUE RECEIVED,309 Developments,LLC,an Illinois Limited Liability Company
and Jedediah Rhoades (collectively the `Borrower"), promise to pay the City of Canton, Fulton
County, Illinois, an Illinois Municipal Corporation ("Lender") the principal sutra of up to Forty-Five
Thousand Dollars ($45,000.00) with interest accruing on the unpaid principal at the rate of three
percent(3%) per annum. The aforementioned principal sum represents monies loaned by the Lender
to the Borrower for the reimbursement of Borrower's TIF Eligible Project Costs and/or Business
District Eligible Project Costs, specifically redevelopment project costs, incurred as a result of a
Redevelopment Project located at 305 W. Locust St.., Canton, IL (PIN 09-08-27-318-019 and the
"Property"), within the Redevelopment Project Area and that is the subject of a Tax Increment
Financing District Redevelopment Agreement by and between the City of Canton and 309
Developments, LLC and Jedediah Rhoades and Max Kumer (the "Redevelopment Agreement")
entered into the 21"day of November,2023.
The term of this Promissory Note shall commence on the date the reimbursements provided
for in Section "C"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 $45,000.00, plus any
accrued interest thereon,shall be forgiven by the Lender each year during the term of this Promissory
Note, with the first date of forgiveness being the date that is one (1) year from the date of the
disbursement set forth in Section "C"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:
i. The Developer fails to maintain constant and continuous operation of the White
Court Apartments located on the Property from the time the Project is complete
and continuing for the term of this Agreement.
ii. The Developer fails to annually provide verification of the payment of the real
estate taxes for the property during the term of this Agreement.
iii. The Developer files for bankruptcy or otherwise become insolvent during the term
of this Agreement.
iv. The Property becomes the subject of foreclosure proceedings during the term of
this Agreement.
V. The Developer sells or otherwise conveys the Property during the term of this
Agreement.
vi. The Developer fails to carry adequate insurance on the Property to cover the
replacement cost of the completed Project.
17
vii. As signatories to this Agreement and the Note, 309 Developments, LLC., and
Jedediah Rhoades and Max Kumer shall be guarantors for the Note and shall be
jointly and severally liable in the event of a default thereof by the Developer.
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`'')
day after Lender gives Borrower written notice of Default thereof by personal delivery or certified
mailing, the outstanding principal amount, plus any accrued interest thereon,is immediately due to
the Lender and the Lender shall be entitled to all remedies permitted by law. Notice shall be deemed
given on the date of personal delivery or date of mailing,whichever applies. No delay or failure in
giving notice of said Default or breach shall constitute a waiver of the right of the Lender to exercise
said right in the event of a subsequent or continuing Default or breach. 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 signatories to this Note,309 Developments,LLC.,and Jedediah Rhoades and Max Kumer
jointly and severally guarantee payment of this 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 Illinois and any
applicable federal statutes or regulations of the United States. Any claims or disputes concerning this
Note shall,at the sole election of the Lender,be adjudicated in Fulton County,Illinois.
LENDER BORROWER
CITY OF CANTON,ILLINOIS,and Illinois 309 DEVELOPMENTS, LLC, an Illinois
Municipal Corporation Limited Liability Company
BY:4�j 4, 1��- k �.t- 'Q-dBY:
Mayor (yanager J
qA4�-
Date: D(,LL07-3 Date:
ATTESTED BY: JEDEDIAH RHOADES,individually
BY:
City lerk Olediah Rhoades
Date: �z Date:
MAX KUMER,individually
BY:
ax kumer
Date: �/z —o 27
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EXHIBIT 3
CANTON 2—RT. 9/CHESTNUT STREET TIF DISTRICT PRIVATE PROJECT
REQUEST FOR VERIFICATION OF TIF ELIGIBLE PROJECT COSTS
BY 309 DEVELOPMENTS, LLC,JEDEDIAH RHOADES AND MAX KUMER
Date submitted:
Attention: City of Canton,IL TIF District Administrator
Re: TIF Redevelopment Agreement dated November 21,2023,by and between the City of Canton
and 309 Developments,LLC and Jedediah Rhoades and Max Kumer (305 W. Locust St., Canton,
IL) Project.
The City of Canton is hereby requested to disburse funds from the Special Tax Allocation Fund
pursuant to the above referenced Redevelopment Agreement in the following amount(s) to the
Developer and for the purpose(s) set forth in this Request for Verification of the Developer's TIF
Costs. The terms used herein shall have the same meanings as those terms in the Redevelopment
Agreement.
1. Request No.
2. Reimbursement payable to: 309 Developments,LLC,and Jedediah Rhoades and Max Kumer
3. Amounts requested to be reimbursed (attach additional pages, if necessary):
Description of Developer's TIF 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 "1"of the Redevelopment Agreement.
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5. The undersigned hereby certifies and swears under oath that the following statements are true
and correct:
a. 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 City
Codes;and
b. 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 Developer's TIF Costs; and
c. the expenditures for which amounts are requested represent proper redevelopment
project costs as identified in the"Limitation of Incentives to Developer" described in
Section "D" of the Redevelopment Agreement: have not been included in any
previous Request for Reimbursement; have been properly recorded on the
Developer's books; are set forth with invoices attached for all sums for which
reimbursement is requested;and proof of payment of the invoices; and
d. 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
e. 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.
f. Any violation of this oath shall constitute a default of the Redevelopment Agreement
and shall be cause for the City to unilaterally terminate the Redevelopment Agreement.
6. Attached hereto is a copy of Exhibit "1"of the Redevelopment Agreement, together with
copies of invoices and proof of payment of such invoices,including cancelled checks and/or
any lien waivers (to the extent applicable) relating to all items for which reimbursement is
being requested.
BY: (Developer)
Title:
❑REVIEWED BY CANTON TIF DISTRICT ADMINISTRATOR
BY:
Title: Date:
❑APPROVED BY CITY OF CANTON,ILLINOIS
BY:
Title: Date:
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