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HomeMy WebLinkAboutResolution #3940A RESOLUTION OF INDUCEMENT REGARDING THE CITY OF CANTON PROPOSED CANTON 2 - RT. 9/CHESTNUT ST. TIF DISTRICT RESOLUTION NO. 3 9 4 0 WHEREAS, the City of Canton, Fulton County, Illinois (the "City") is a duly organized municipal corporation created under the provisions of the laws of the State of Illinois; and WHEREAS, the Mayor and City Council (the "Corporate Authorities") of the City of Canton 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 public and private projects, encourage private investment and increase the marketability of property thereby increasing the tax base of the City and providing employment for its citizens; and WHEREAS, recognizing the need to foster the development, expansion and revitalization of certain properties which are vacant, underutilized or obsolete or a combination thereof, the City intends to establish the Canton 2 - Rt. 9/Chestnut St. Tax Increment Financing District (the "TIF District") by approving a TIF Redevelopment Plan and Projects, designating a Redevelopment Area and adopting Tax Increment Financing as provided under the Tax Increment Allocation Redevelopment Act, 65 ILCS S/11-74.4 et.seq., as amended (the "Act"); and WHEREAS, the City shall proceed and use its best efforts to establish a Tax Increment Financing Redevelopment Plan, Project and Area to include Developer's Site and Project; and WHEREAS, pursuant to the Act, the City has the authority to provide incentives to Developers or prospective Developers of real property to redevelop, rehabilitate and/or renovate such property by reimbursing the owner for certain costs from resulting increases in real estate tax revenues ("Tax Increment"); and WHEREAS, the City of Canton is supportive of the development of commercial and retail development within the TIF District as will be evidenced by the Redevelopment Plan; and WHEREAS, CGI Real Estate Holdings, LLC, an Illinois limited liability company, or its assignee, (hereinafter "Developer"), is currently proposing a hotel Redevelopment Project (the "Project") which will require substantial expenditures of time, effort and money by Developer to plan and develop; and WHEREAS, it appears that the above mentioned development cannot occur without the adoption of the proposed Tax Increment Financing Redevelopment Plan to be created and documented pursuant to the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74-4 et seq. (The "Act"); and WHEREAS, the City of Canton finds that it is in the best interests of the City that the proposed site of the Developer's Project on the southwest corner of Locust Street and Main Street (the "Site") be located within the TIF District, be revitalized and redeveloped; and WHEREAS, the Site has not been subject to growth and development through investment by private enterprise and it is not reasonably anticipated to be developed without public assistance by the City; and WHEREAS, the City of Canton is desirous of having the Site redeveloped, and the City believes that it is not economically feasible to do so without public assistance, given the impediments to development which characterize the Site; and WHEREAS, in order to redevelop the Site, it will be necessary to undertake public improvements and finance certain public and private redevelopment project costs incurred by the Developer which are eligible for payment and reimbursement under the Act; and WHEREAS, the City of Canton has reviewed the conditions of the Site and have reason to believe that the costs of the necessary public and private improvements, including but not limited to land acquisition and site preparation costs, and other public and private costs to be incurred by the Developer in furtherance of the Project are eligible projects costs under the Act and are consistent with the expected Redevelopment Plan of the City, provided that this Resolution is not a guarantee of the amount of project costs that will be eligible, but rather is an expression of the intention of the City at this time; and WHEREAS, the purpose of this Inducement Resolution is to induce the Developer to commence the Project and to seek reimbursement, in an amount not to exceed Two Hundred Thousand Dollars ($200,000.00), from incremental real estate tax revenues or the proceeds of debt incurred by the City or from other sources as may be agreed to between the City and the Developer which are necessary to accomplish the goals of the proposed Canton 2 - Rt. 9/Chestnut St. TIF District Redevelopment Plan and Projects, as such may be established by the City for this Project; and WHEREAS, this Resolution is also intended to serve as an "official declaration of intent" on behalf of the City pursuant to Treas. Reg. Sec. 1.150.2; and NOW, THEREFORE, BE IT RESOLVED by the Corporate Authorities of the City of Canton, Fulton County, Illinois, as follows: 1. That the intentions of the City regarding this Site and the Developer's Project as expressed in the recitals are hereby incorporated herein and are adopted and approved; provided however, that neither such intentions, affirmations, authorizations nor such recitals are binding upon the City nor may the same be relied upon to any entity's or person's detriment by such entity or person whether third persons or otherwise in the event that the aforementioned agreements or plans are not mutually attainable. 2. That the City Council is in favor of the proposed private redevelopment project. 3. The City shall use its best efforts to establish a Tax Increment Financing Redevelopment Plan, project and Area to include the Property and Project. The City and the Developer shall also use their best efforts to enter into a Pre-development Agreement not later than , 2010. 4. The provisions of this Resolution shall be effective commencing with its adoption as provided by law. ADOPTED by the Corporate Authorities of the City of Canton on this 5th day of October , 2010. CORPORATE AUTHORITIES AYE VOTE NAY VOTE ABSTAIN /ABSENT Pickel g Hartford g Sarff x West x Ellis x Rivero X Schenck X Reed x TOTAL VOTES: 6 0 2 APPROVED: , Kevin R. Meade, Mayor City of Canton ATTEST: , D ucker, ity Clerk Date: ~° ~ ~ , 2010 Date: 10-5- , 2010