HomeMy WebLinkAboutOrdinance #2053CITY OF CANTON,
FULTON, ILLINOIS
ORDINANCE NO.
CANTON 4-A
TAX INCREMENT FINANCING (TIF) DISTRICT
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF A REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON
and
DAVIS SAND & GRAVEL, INC.
ADOPTED BY THE CORPORATE AUTHORITIES
OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS,
ON THE ~~ DAY OF NOVEMBER, 2011.
CITY OF CANTON, ILLINOIS: ORDINANCE NO. ~~~
CANTON 4-A
TAX INCREMENT FINANCING (TIF) DISTRICT
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF A REDEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF CANTON AND
DAVIS SAND & GRAVEL, INC.
BE IT ORDAINED BY THE CITY OF CANTON THAT:
SECTION ONE: The Redevelopment Agreement with Davis Sand & Gravel, Inc. (Exhibit A
attached) is hereby approved.
SECTION TWO: 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.
SECT~ON THREE: The Redevelopment Agreement shall be effective the date of its approval on
the Z-day of November, 2011.
SECTION FOUR: 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 Corporate Authorities of the CitS~ of Canton,
Fulton County, Illinois, on the ~~iay of November, A.D., 2011, 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
Ald. David Pickel
Ald. James Hartford X
Ald. Jeffrey Fritz )(
Ald. Craig West
Ald. Gerald Ellis
Ald. Justin Nelson
Ald. Eric Schenck
Ald. Jeremy Pasley
Hon. Kevin Meade, Mayor
TOTAL VOTES
,..,---~
~~,
APPROVED: ~ - ,Date ~~ / ~ 3/ 2011
on. Kevin Meade, Mayor, City of Canton
ATTEST: ,Date: ~ ~ / ~~- ~' 2011
Diana ucker, CitS~ Clerk, City of Canton
A7"I'AC[ IMI?N'1'S: EXHIBIT A: KI?DI?V' I~:LOPAiI?N'1' AGRI?I?i~fl?NC BI~`I'~X~F? I?N'1'I I I?CITY Ole C;~N'1'ON AND DAV'IS SAND
-3-
EXHIBIT A
REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON
and
DAVIS SAND & GRAVEL, INC.
CANTON 4-A
TAX INCREMENT FINANCING (TIF) DISTRICT
-4-
TAX INCREMENT FINANCING DISTRICT
REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON, FULTON COUNTY, ILLINOIS
and
DAMS SAND & GRAVEL, INC.
CANTON 4-A TAX INCREMENT FINANCING DISTRICT
NOVEMBER 2011
REDEVELOPMENT AGREEMENT
CITY OF CANTON
DAVIS SAND & GRAVEL, INC.
CANTON 4-A TIF DISTRICT
THIS REDEVELOPMENT AGREEMENT (including Exhibits) ("Agreement") is entered into
this day of November, 2011, by the City of Canton (the "City"), an Illinois Municipal
Corporation, Fulton County, Illinois, and Davis Sand & Gravel, Inc. (the "Developer"), an Illinois
Corporation.
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 the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4.4 et
seq., as amended (the "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 December 31, 1987, 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 Act, approved a Redevelopment Plan and designated a Redevelopment
Area, pursuant to the Act, known as Canton 4-A Tax Increment Financing District (the "TIF
District"); and
WHEREAS, the Developer is the owner of property within the boundaries TIF District at Lots 6 and
7 of the Industrial Park, Canton, Illinois (PIN#s: 29-402-007 and 29-402-008) ("Property"); and
WHEREAS, the Developer is the owner of a business located on said Property and is completing site
work at the existing facility, based upon the availability of incentives by the City; and
WHEREAS, the City has the authority under the Act to incur Redevelopment Project Costs ("Eligible
Project Costs") and to reimburse Developer for such costs; and
WHEREAS, the Developer requests that incentives for the development be provided by the City and
that such incentives include the reimbursement of a portion of the Developer's Eligible Project Costs;
and
WHEREAS, the City has determined that this Project requires the incentives requested 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, to develop underutilized property, and
to provide employment for its citizens and generally to enhance the economy of the City; and
Davis Sand & Gravel, /nc. -Canton 4-A 77F District Page 2 of 9
WHEREAS, the City shall pay to the Developer aone-time lump sum payment in the amount of
Twenty Nine Thousand Six Hundred Dollars ($29,600.00) from the TIF District's Special Tax
Allocation Fund for the reimbursement of Eligible Project Costs, which shall be paid upon verification
of the Developer's Eligible Project Costs as set forth in Sectio~a E; and
WHEREAS, the City is entering into this Agreement to induce the Developer to complete the site
work on said Property; and
WHEREAS, in consideration of the execution of this Agreement and in reliance thereon, the
Developer has proceed with its plans to complete the Project as set forth herein.
AGREEMENTS
NOW, THEREFORE, for good and valuable consideration, the receipt of which is acknowledged,
the Parties agree as follows:
A. PRELIMINARY STATEMENTS
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.
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.
The City in extending incentives for this Project is relying on the representation of the
Developer contained herein to substantiall~~ complete the Project as set forth herein.
Each of the Parties represents that it has taken all actions necessary to authorize its
representatives to execute this Agreement.
B. ADOPTION OF TAX INCREMENT FINANCING
The Cite has created a Tax Increment Financing District known as the "Canton 4-A TIF
District" which includes the Developer's Propertt~. The CitS~ has approved certain Redevelopment
Project Costs in its Redevelopment Plan, including the types described in Exhibit > for the Developer's
Project which shall be hereafter known as the Davis Sand & Gravel, Inc. Project.
C. INCENTIVES
In consideration for the Developer completing its Project as set forth herein, the City agrees to extend
to Developer the following incentives to assist Developer's Project:
the Cite shall pay to the Developer aone-time lump sum payment in the amount of Twenty
Nine Thousand Six Hundred Dollars ($29,600.00) from the TIF District's Special Tax
Allocation Fund for the reimbursement of the Developer's Eligible Project Costs (see F.xhiGit
Danis Sand & Gravel, hoc. -Canton 4-A TIF District Pnge 3 of 9
7), which shall be paid upon verification of the Eligible Project Costs as set forth in Section E.
D. LIMITATION OF INCENTIVES TO DEVELOPER
The Developer shall be reimbursed by the City only for Eligible Project Costs permitted by the
Act and incurred as a result of the Project, not to exceed Twenty Nine Thousand Six
Hundred Dollars ($29,600.00), from the TIF District's Special Tax Allocation Fund.
E. PAYMENT OF ELIGIBLE PROJECT COSTS
Payment to the Developer for Eligible Project Costs as set forth by the Act shall be made by
a Requisition for Payment of Private Development Redevelopment Costs ("Requisition")
submitted to Jacob & Klein, Ltd. and the Economic Development Group, Ltd. (collectively the
"Administrator") and subject to their approval of the costs.
2. The Requisition must be accompanied by verified bills or statements of suppliers, contractors,
or professionals together with Mechanic's Lien Waivers as required by the City.
3. The Administrator shall approve or disapprove the 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 the 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-submittal.
4. The sum approved shall then be paid from the TIF District's Special Tax Allocation Fund to the
Developer as soon as sums are available. Payment shall be made within thirty (30) days after
approval.
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 Act, 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 reasonably assist the Developer in every respect to obtain approval of Eligible Project
Costs.
Eligible Project Costs shall be broadly defined in the Redevelopment Plan to include all costs
defined in the Act as Redevelopment Project Costs.
F. LIMITED OBLIGATION
The City's obligation hereunder to pay the Developer for Eligible Project Costs is a limited obligation
to be paid solely as set forth herein. 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 liabilit}~ of the City or a charge or lien against the City's
general credit or taxing power.
Dcrvis Sand & Gravel, Inc. - Cnntnn 4-,~ T/F District Ynge ~ of 9
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 direct payments to any other contractor, subcontractor, mechanic
or materialman providing services or materials to the Developer for the Project. This Agreement shall
not create any third-party rights and the Developer shall indemnif~~ and hold the City harmless on any
claims arising out of the Developer's construction activities.
H. COOPERATION OF THE PARTIES
The City and the Developer agree to cooperate fully with each other when requested to do so concerning
the development of the Developer's Project.
I. 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 Party's for the Defaulting Party'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 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 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 aNon-
defaulting Party specifying that it has failed to perform such monetary covenant. In the event a
Defaulting Party fails to perform any non-monetarT~ 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 aNon-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) days period, and thereafter diligently and continuously prosecutes the cure of such default until the
same has been cured.
J. ASSIGNMENT
The rights and obligations of the Developer under this Agreement shall be fully assignable by means of
written notice to the City. The City shall not unreasonably withhold its consent provided that the nature
of the Project is not substantially changed. No such assignment shall be deemed to release the Developer
of its obligations to the City under this Agreement unless the specific consent of the City to release the
Developer's obligations is first obtained in writing.
Days Sand & Gravel, hzc. -Canton 4-A TIF District Page 5 of 9
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 the date of actual delivery, if delivered personally,
or as of the third (3`~) day from and including the date of posting, if mailed by registered or certified mail,
return receipt requested, with postage prepaid addressed as follows:
To Developer: To City:
Davis Sand & Gravel, Inc. Cite Clerk,
Industrial Park CitS~ Hall
Canton, IL 61520 2 Main Street
Canton, IL 61520
lhith copy to:
Jacob & Klein, Ltd.
Economic Development Group, Ltd.
1701 Clearwater Avenue
Bloomington, Illinois 61704
Telephone: (309)664-7777
N. SUCCESSORS IN INTEREST
Subject to the Provisions of Paragraph L 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 no 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
Davis Sand & Cravel, lnc. -Canton -I-A TIF Disu•ict Page 6 of 9
between or among such Parties.
P. INDEMNIFICATION OF CITY
Developer acknowledges that it is responsible for compliance with the Illinois Prevailing Wage Act, to
the extent such is applicable. Applicability is to be determined by Developer and Developer shall
indemnify and hold harmless the CitS~, 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.
Q. 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.
R. TERM OF THE AGREEMENT
This Agreement shall expire upon the expiration of the Redevelopment Plan adopted by the City or
sooner if the Developer has received all incentives included herein.
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Davis Saud & Gravel, lnc•. -Canton 4-A T//%Distrrct Page 7 of 9
IN WITNESS WHEREOF the Parties hereto have caused this Agreement to be executed by their
duly authorized officers on the above date at Canton, Illinois.
CITY OF CANTON, ILLINOIS
~~ '~
By:
Mayor
ATT
i ler
DEVELOPER:
DAVIS SAND & GRAVEL, INC.
~Gn~~
Davis Sand & Cravel, /ne. -Canton ;t-A T/F Disb~ict Page 8 of 9
EXHIBIT 1
SUMMARY OF ESTIMATED TIF ELIGIBLE PROJECT COSTS
Davis Sand & Gravel, Inc. Project
Canton 4-A TIF District in the City of Canton, Fulton CountS~, Illinois
Project Description: The Developer is completing site work on said Property.
Eligible Project Costs:
Site Preparation/Site Work .................................................. $29,600.00
Total Estimated Eligible Project Costs ................................... $29,600.00
The City agrees to reimburse the Developer for Eligible Projects incurred in the amount of
$29,600.00 as set forth in the Agreement, and shall not be obligated to reimburse the
Developer for any Eligible Project Costs exceeding $29,600.00.
Davis Sar7d & Gravel, /nc. -Canton 4-A T/F Disn•ic[ Page 9 of 9