HomeMy WebLinkAboutOrdinance #2093 CITY OF CANTON,
FULTON, ILLINOIS
,
ORDINANCE NO. ,~'~~L'~ ~
CANTON 2 -RT. 9/CHESTNUT STREET
TAX INCREMENT FINANCING (TIF) DISTRICT
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF A RED.~VELOPMENT AGREEMENT
by and between
THE CITY OF CANTON
and
CANTON CROP SERVICE, INC.
ADOPTED BY THE CORPORATE AUTHORITIES
OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS,
ON THE 17TH DAY OF JULY, 2012.
CITY OF CANTON, ILLINOIS: ORDINANCE NO. ~C..~\ ~3
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
CANTON CROP SERVICE, INC.
BE IT ORDAINED BY THE CITY OF CANTON THAT:
SECTION ONE: The Redevelopment r~gYeement with Canton Crop Service, Inc. (E~~~~iGit~ attached)
is hereby approved.
SECTION TWO: The Mayor is hereby authorized and directed to enter into and e~ecute on behalf
of the Cit~~ said Redevelopment ~greement and the Cit~~ Clerk of the City of Canton is hereby
authorized and directed to attest such execution.
SECTION THREE: The Rede~relopment 1~greement shall be effectiee the date of its appro~~al on
the 17`" da~~ of Jul}~, 2012.
SECTIGN FOUR: This Ordinance shall be in full force and effect from and after its passage and
appro~ral as required by la~~.
[Balartce ofpage i.r irztentzorrally bl~tnk.]
PASSED, APPROVED AND ADOPTED by the Corporate Authorities of the City of Canton,
Fulton County, Illinois, on the 17`~' day of )u15~, r1.D., 2012, and deposited and filed in the Office of the
Ciry Clerk of said Cit~~ on that date.
MAYOR & ALDERMEN AYE VOTE NAY VOTE ABSTAIN / ABSENT
Ald. David Pickel
Ald. James Haxtford ~
Ald. Jeffrey Fritz
Ald. Craig West
Ald. Gexald Ellis
Ald. Justin Nelson
Ald. Eric Schenck X
Ald. Jeremy Pasley X
Hon. Kevin Meade, Ma~~or
TOTAL VOTES
~
APPROVED: ~ ~ ~ , Date
~~7 / ~~1~
~ on. Kcein ~~Zeade;~~laj~or, _it~~ of Canton
f;
~ ,
ATTEST• ,f ' , Date: 2012
Diaiia`~ ~'avle~~, Cit~~ C rl:, Cin~ of Canton
;~1"1'.1C(II~II,;N1:S: EXHIBIT A: KI?lll?V'I~;LOY\II?N'l':AGRI?I?~11?N'1' BY ~1ND BI~"1'Wl~:l?N'1'I[i~: CI'1'Y OI~ C;AN'l'UN ;1ND
C~AN"1'ON CROV SI?RV'ICi~~;, INC.
-3-
EXHIBIT A
REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON
and
CANTON CROP SERVICE, INC.
CANTON 2- RT. 9/CHESTNUT STREET
TAX INCREMENT FINANCING (TIF) DISTRICT
CANTON 2-
RT. 9/CHESTNUT STREET
TAX INCREMENT FINANCING (TIF) DISTRICT
TIF REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON, FULTON COUNTY, ILLINOIS
and
CANTON CROP SERVICE, INC.
JULY - 2012
CANTON 2-
RT. 9/CHESTNUT STREET
TAX INCREMENT FINANCING (TIF)DISTRICT
REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON
and
CANTON CROP SERVICE, INC.
THIS AGREEMENT (including Exbibit is entered into this da~- of Ju15~, 201?, by and
bet~~een the CITY OF CANTON ("Ciry"), an Illinois Municipal Corporation, Fulton Count~~, Illinois;
and CANTON CROP SERVICE, INC. ("Developer").
PREAMBLE
WHEREAS, the Ciry has the authorit~~ to promote the health, safetv, and welfare of the Ciry and
its citizens, aizd to prevent the spread of blight and deterioration and inadequate public facilities, by
promoring the development of private investment properh~ therebv increasing the taY base of the City
and providing employment for its citizens; and
WHEREAS, pursuant to the Tax Increment ,Allocation Redc~~elopment ~Act, GS ll,CS 5/11-7-~.4
et .f~eq., as amended (the "l~ct"), the Ciry has the authorin~ to providc inccntiees to owners or prospecti~re
o~vncr:-. of real propert~~ to develop, redevelop, and rehabilitate such propern~ ba reimbursing the owner
for certain costs from resulting increases in real estate tai revenues and enter into contracts with
developers necessary orincidental to the implementation of its rcdevelopment plan pursuant to 65 ILCS
5/11-74.4-4(b) and (j); and
WHEREAS, pursuant to 65 ICLS 5/8-1-2.5 the Cin~ is authorized to appropriate and expend funds
for economic deaelopment purposes, including, ~vithout limitation, the making ot grants to any other
go~rernmental entitj~ or commercial enterprise that are deemed necessary or desirable for the promotion
of economic devclopment within the municipaliry; and
WHEREAS, the City, recognizing the need to foster the development, expansion and revitalization
of certain properties which are vacant, underutilized or obsolete or a combination thereof, adopted Tas
Increment Financing and established a Tax Increment ~~Ilocation Redevelopment Plan, Project and
tlrea under the rlct known as the Canton 2- Rt. 9/Chestnut Street TIF District (the " TIF District")
on February 6, 2012 by Ordinance No. 2068, Ordinance No. 2069, and Ordinance No. 2070; and
WHEREAS, included in the TIF District Redevelopment Project r~rea is appro~mately 8.2 acres
of properry to be acquired by the Developer in 2012 located on Entcrpi7se Drive within the Canton
Industrial Park in Canton, Illinois, including real estate ta~ propert~~ identification numbers 09-08-29-
401-012 (Lot 18) and 09-08-29-401-013 (Lot 19), collectively the "Property"; and
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WHEREAS, based on incentives offered by the Ciry, the Developer intends to redevelop said
Property by proceeding with plans to prepare the site and construct a retail agricultural service facility
(the "Facility"), which Propert~~ and Facilin~ is to be collectively defined as the "Project" or "Developer's
Project"; and
WHEREAS, the De~~eloper anucipates the Project ~vill require a total projected investment in
eYCess of $400,000.00 and provide agricultural products and service to agricultural producers within the
~ greater Canton and F~ulton Counn~ area; and
WHEREAS, it is the intent of the Cih~ to encourage economic development which will increase
the real estate and municipal taa bases of the Cit~~ and the taY bases of other ta~ng bodies, which
increased ineremental taYes will be used, in part, to finance incentives to assist redevelopment projects
undertaken ~vithin the Tas Increment Financing District; and
WHEREAS, the Developer's Project is consistent with the land uses of the Cit~~ as adopted; and
WHEREAS, the Ciry has the authoritti under the .Act to incur Redevelopment Project Costs
(`Bligible Project Costs") and to reimburse De~reloper for such costs pursuant to 65 ILCS 11-74.4-4(j);
and
WHEREAS, the Citti~ has determined that this De~rcloper's Project requires the incentives rec~uested
~ as set forth in I.~xL~ibi! 9 and that said De~reloper's Projcct «ould, as part of the Plan, piomote the health,
safet~~ and ~velfare of the Cin~ and its citizens b~~ attracting private investment to pre~rent blight and
detcrioration and to provide emplopment for its citizens and generall~~ to enhance the econom~~ of the
Citv; and
WHEREAS, the parties have agreed to segregate within the Canton 2- Rt9/Chestnut Street "i'IF
District Special Tax ~llocation Fund the following: Eighty-Nine percent (89%) of the "net"
incremental increases in real estate taYes derived from this Developer's Project in ta~ years 2013 and
2014; Fifty percent (50%) of thc "net" incrcmental increases in real estate taxes derived from this
Developer's Project in taY years 2015 through 2018; and Seventy-Five percent (75%) of the "net"
incremental increases in real estate taYes derived from this Developer's Project in tax vears 2019
through the remaining life of the TIF District, not to eYCeed a total cumulative reimbursement of One
Hundred Fifry- Six Thousand One Hundred Fifteen Dollars ($156,115.00) of the Developer's TIF
Fligible Project Costs (see E~~hiGzt 9), whichever occurs first "Net" increment is defined as real estate
tax increment derived fxom the Developer's Project as previously described after payment of
administrarive fees and costs and payments pursuant to Intergovernmental Agreements. The Ciry will
establish a separate account within the Special TaY ~111ocation Fund for this Canton 2-Rt.9/Chestnut
Street TIF District designated as the "Canton Crop Service Specia] Account" (the "Special
c~ccount"). r~ll monies deposited to this Special r~ccount shall be used eYClusively by the City for the
2
purposes set forth in this rlgreement; and
WHEREAS, in consideration of the eYecution of this ~greement, the De~reloper shall proceed with
completing said Project as set forth herein; and
WHEREAS, the City is entering into this ,3greement ha~ring encouraged and induced the
De~reloper to redevelop the Property.
AGREEMENTS
~ NOW, THEREFORE, in consideration of the mutual promises contained herein and other good
and valuable consideration, the receipt of which is hereb~~ ackno~vledged, 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 r~greement.
2. ,~ny terms ~uhich are not defined in this .~greement sI1a11 have the same meaning as the~~ do
in the ~1et, unless indicated to the contrar~~.
3. The Cit~~ is estending incentives for the lle~reloper's Project in anticipauon of the expected
completion of the Project as set torth herein.
4. Fach of the Parties represents that it has tal:en all acaons necessar~~ to authorize its
representatives to e~ecute this ~lgreemcnt.
B. ADOPTION OF TAX INCREMENT FINANCING
The City has created the Canton 2- Kt9/Chestnut Street "I'IF llistrict ~uhich includes the
Developer's Property. The City has pteviousl~~ assisted certain Kedevelopment Projects using taY
increment financing incentives and now intends to provide such assistance to the Developer's
Project which shall be known as "Canton Crop Setvrce, Ine.
C. INCENTIVES
In consideration for the Developer having purchased the Property and completing the Project
substantially as set forth in F.xhibit 9, the Cit~~ agrees to extend ro the Developer the following incentives
to assist Developer's Project
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1. ~ reimbursement of Eight}~-Nine percent (89%) of the "net" incremental increases in real
estate taxes derived from this Developer's Project in taY years 2013 and 2014, Fifty percent
(50%) of the "net" incremental increases in real estate taYes derived from this Developer's
Project in ta~ j~ears 2015 through 2018; and Seventy-Five percent (75%) of the "net"
incremental increases in real estate tates derived from this Developer's Project in taY 5~ears 2019
through thc remaining life of the "I'I~~ llistrict, not to eYCeed a total cutnulative reimbursement
of One Hundred Fifty-Six Thousand One Hundred Fifteen Dollars ($156,115.00) of the
Devcloper's TII~ F.ligible Project Costs (see F.~-bibit 1), ~vhichever occurs first Net increment
is defined as real estate tax increment derived from the Developer's Project as previouslj~
described after payment of administrative fees and costs and payments pursuant to
Intergovernmentall~greements. The Cit~~ will establish a separate account within the Special
Tax r~llocation Fund for this Canton 2-Rt9/Chestnut Street TIF District designated as the
"Canton Ctop Serviee Spectal Aceount" (the "Special rlccount"). r111 monies deposited to
this Special Account shall be used exclusivel~~ bv the Cit~~ for the purposes set forth in this
~greement
D. LIMITATION OF INCENTIVES TO DEVELOPER
1. Eligible Project Costs of the Deeeloper shall not etceed in total $156,115.00.
2. The lleveloper shall be reinlbursed b~~ thc Cin~ for all Eligible Project Costs permitted bj~ the
~~ct (subject to a limitation oE $156,115.00) as set forth herein, but onl~~ as set forth abo~re and
onlv from the Propcrn~ ii~cluded in this Project and owned b~~ the De~=eloper at that locaaon.
3. It shall be the sole responsibilitv of the Developer to provide to the City as re9uested the
following:
a. Copies of all P1~ID real estate taY bills, annually, foY the Ptoperty included in this
Project.
b. Verification of "TIF eligible project costs as re9uired by Section E below.
E. PAYMENT OF ELIGIBLE PROJECT COSTS
1. A request for payment to the Developer for TIF Eligible Project Costs as set forth by the Act
shall be made by a Requisirion for Payment of Private Development Redevelopment Costs
(the "Requisition") as hereto attached as Exhibit2and submitted by Developer to the City's
7'IF rldministrator Jacob & I~lein, Ltd. and The Fconomic Development Group, Ltd.
(collectivel~~ the "TIF rldministraror") or a successive TIF r~dministrator upon written
notification from the Ciry.
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2. The Requisition must be accompanied by vet-ified bills or statements of suppliers, contractors,
or professionals relating to the Project, together ~vith i~fecha,nic's Lien ~~aivers, cancelled
checks or other acceptable proof of pa~~ment bv the Deeeloper as required bv the City's TIF
~1 dmini s tra tor.
3. The Developer shall use such sums as reimbursements for eligible e~penses onlj~ to the e~tent
permitted by law and the ~ct.
4. The TIP' r~dministrator shall approve or disapprove the Kec~uisition bj~ written receipt to the
Developer within thirry (30) business days after receipt of the Requisition. ~~pproval of the
Requisition will not be unreasonably withheld. If the Requisition is disapproved by the TIF
~ Administrator (or subsequendy b~ the Illinois Department of Revenue), the reasons for
disallowance will be set forth in wriring 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.
5. The Parties acknowledge that the determination of TIF~' I;ligible Project Costs, and, therefore,
qualification tor reimbursement hereunder are subject to chan~es or interl~retation made by
amendments to the ~~ct, administratiee rules or judicinl interpretation during the term of this
~~greemcnt.
6. TIF Fligible Project Costs are broadl~~ defined in the Rede~ elopment Plan to include all costs
defined in the l~ct as Redevelopinent Project Costs.
7. The Developer ma~~ submit for prior appro~-al b~~ the Cin~ as '1TF T?ligible Projcct Costs under
the l~ct estimates of costs before they areincurred subject to later confirmation b5~ actual bills.
F. LIMITED OBLIGATION
The City's obligauon hereunder is to pay lleveloper for TIF Eligible Project Costs limited to
$156,115.00 as set forth above. Said obligation does not now and shall never constiture 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 Ciry or a charge or lien against the City's general
credit or taYing power.
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G. LIMITED LIABILITY OF CITY TO OTHERS FOR
DEVELOPER'S EXPENSES
There shall be no obligation by the Cin~ to make any payments to any person other than Developer,
nor shall the CitS~ be obligated to make direct paj~ments to an~~ other contractor, subcontractor, mechanic
or materialman pro~riding seivices or materials to lleveloper tor the Developer's Project.
H. DEFAULT; CURE; REMEDIES
In the event of a default under this Redevelopment rlgreement bj~ any parry hereto (the "Defaulting
Party"), which default is not cured ~vithin the cure period provided for below, then the other part~~ (the
"Non-defaulting Party") shall have an action for damages, or in the event damages would not fairl~~
compensate the Non-defaulting Party's for the Defaulting Party's breach of this Redevelopment
rlgreement, the Non-defaulting Parry shall have such other equity rights and remedies as are available
to them at law or in equit~~. ,~ny damages payable by the Ciry hereunder shall be limited to the real est~te
tax increment payable to the Developer under the terms of this r~greement.
In the e~rent a Defaulting Part~~ shall fail to perform a inonetary covenant ~~hich it is re9uired to
perform under this Redevelopment ~~grcement, it shall not be deeined to be in default under this
Redevelopment ~greement unless it shall ha~-e failed to perform such inonetarj~ covenant ~vithin thirn-
(30) daj~s of its receipt of a notice from a Non-defaulting Parn~ specif5~ing that it has failed to perform
such monetary co~renant. In the e~-ent a Defaulting Parn~ fails to perform an~~ nonmonetarv covenant
as and ~vhen it is required to under this Rede~relopmerit ~lgreement, it shall not be deemed to be in
default ifit shall have cured such default ~vithiu thirty (30) days ofits receipt of a notice from a Non-
defaulting Part~~ specitj-ing the nature of the default, provided, however, with respect to those
nonmonetar~~ defaults whicll are not capable of being cured ~vithin such thirh~ (30) day period, it shall
not be dee~med to be in default ifit coinmences curing within such thirry (30) daj~s period, and thercafter
diligently and continuously prosecutes the cure of such default until the same has been cured.
I. TIME; FORCE MAJEURE
For this r~greement, time is of the essence; provided however, the Developer and Ciry shall not be
deemed in default with respect to any obligations of this r~greement on its part to be performed if either
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, inabiliry to procure materials, weather conditions and
wet soil conditions, failure or interruptions of power, restrictive governmental laws and regulations,
condemnation, riots, insurrections, war, fuel shortages, accidents, casualties, rlcts of God, acts caused
direcdy or indirectly by the City (or City's agents, employees or invitees) when applicable to Developer
or third parties, or an~~ other cause beyond the reasonable control of Developer or Ciry.
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J. ASSIGNMENT
The rights and obligations of the Developer under this .~greement shall be fully assignable b~~ means
oE written notice to the Ciry. 'I'he Cit~~ shall not unreasonabl~~ ~vithhold its consent provided that the
nature of the Project is not substantially changed. No such assignment shall be decmed to release the
Developer of its obligations to the Cit~~ under this ;~greement unless the specific consent of the Ciry to
release the Developer's obligations is tirst obtained in ~vriung.
K. WAIVER
l~ny party to this t~greement may elect to waive anv remedv it ma~~ enjo5~ hereunder, provided that
no such waiver shall be deemed to e~st unless the partv waieing such right of reinedy does so in writing.
No such waiver shall obligate such parry to waive any right of remedy hereunder, or shall be deemed
to constitute a waiver of other rights and remedies provided said part5~ pursuant to this ,~greement.
L. SEVERABILITY
tf anv section, subsection, term or provision of this :1~reement or the application thereof to anj~
~ parn~ or circuinstance shall, to any extent, be in~-alid or unenforceable, the remainder of said section,
subsection, term or provision of this ~grcement or the application of same to parties or circumstances
other than those to which itis held invalid or unenforceable, sh211 not be affected therebv.
M. NOTICES
s~11 notices, demands, requests, consents, appro~rals or other instruments re9uired or permitted by
this ~~greement shall be in writing and shall be elecuted bti~ the parti~ <>r an officer, agent or attornev of
the Party, and shall be deemed to have been effective as of the date of actual deli~rery, if deli~rered
personally, or as of the third (3'd) day froin and including the date of posting, if mailed b}~ registered or
certified mail, return receipt requested, with postage prepaid addressed as follo~vs:
7
CITY DEVELOPER
City of Canton Canton Crop Service, Inc.
% City r~dministrator % ILen Barker, Owner/Operaror
2 N. Main St 1~750 E. Kennv Lane
Canton, IL 61520 l_.e~vistown, Il, C1542
PH: (309) 647-0065 PH: (30)) 231-6206
F13X: (309) 6~7-2348 F,maiL b~zz~(,erl,~?3t~<it~i~~~-a{~~~o.~-~~rn
~ l~itl~ copy to:
Jacob & Klcin, Ltd and
~ The Economic llevelopment Group, Ltd.
1701 Clearwater l~~venue
Bloomington, IL C 1704
PH: (309) 664-7777
Fr1X: (309) 664-7878
N. SUCCESSORS IN INTEREST
Subject to the Proaisions of Paragraph J, abo~~e, this l~greement shall be binding upon and inure to
the benefit of the Parties hereto and thcir respecti~~e successors.
O. NO JOINT VENTURE, AGENCY, OR PARTNERSHIP CREATED
Neither anything in this ~~greeinent nor an~~ acts ot the parues to this r~greement shall be construed
b~r the Parties or any third person to create the relationship of a partnership, agenc}~, or joint ~retlture
between or among such Parties.
P. INDEMNIFICATION OF CITY
llevcloper acknowledges that it is responsible for determining applicability, processing payroll and
compliance with the Illinois Prevailing ~~'age 1~et, to the eatent such is applicable. ~pplicability is to be
determined by Developer and 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 thcm, in connection with the applicabiliry, determination, and/ar
payments made under the Illinois Prevailing ~~age Act (820 II_CS 130/0.01 et..req.), the Illinois
Procureinent 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 paj~ all defense costs of City, including but not liinited to the reasonable
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attorney fees of Ciry.
Q. TERM OF THE AGREEMENT
This 1lgreement shall espire upon the eYpiration of the Redcvelopment Plan adopted bj~ the Cit~~ or
sooner if the Developer has received all incenuves included herein.
R. AMENDMENTS TO THIS AGREEMENT
The parties hereto may amend this r~greement at anv time by their mutual consent which
amendment must be in writing and eYecuted b~~ the parties.
S. WARRANTY OF SIGNATORIES
The signatories of Developer warrant full authority to both eYecute this r~greement and to bind the
entin~ to which they are signing on behalf of.
IN WTTNESS WHEREOF the Cin~ of Canron aiid Canton Crop Ser-~~ice, Ine. ha~-e caused this
;~greement to be eaecuted by their dul}~ authorized ofticers on the abo~~e date at Canton, Illinois.
CITY DEVELOPER
CITY OF CANTON, an Illinois 1~lunicipal CANTON CROP SERVICE, INC., an
Corporation: Illinois Corporatioiz:
c /
BY: '''C,C BY: ~
~ I~Tati~or, City of Canton en Barker, O~v zer/Operator
r, ~
r' ~
f ~
ATTEST: i
~ ~GL
Clerk, Cit~~ of Cant n
9
EXHIBIT 1
SUMMARY OF ESTIMATED TIF ELIGIBLE PROJECT COSTS
Canton Crop Service, Inc.
Canton 2- Rt9/Chestnut Street '1'IF District in the City of Canton, Fulton Counry, Illinois
Project llescription: Developer is proceeding with plans to acquire, assemble and prepare a site
located on appro~imatel~~ 82 acres of propeiry to be acquired by the Developer
~ in ?(112 located on Enterprise llrive ~vithin the Canton Industrial Park in
Canton, Illinois, including real estate taY property identification numbers 09-
08-29-401-012 (Lot 18) and 09-08-29-401-013 (Lot 19) .
Estimated Eligible Project Costs:
Lai~d and buildings (acquisition costs) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ~~1,115.00
Site preparation, clearing and grading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ~~0,000.00
Professional Fees (planning, engineering, architectural, legal, accounting, other) . . . . . . . . $12,000.00
)ob training and retraining services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,000.00
Interest Buv-Down . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $61.000.00
Total Estimated TIF Eligible Project Costs' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $156,115.00
~ NOTE: Cumulative'I'otal Reimbursements of 1'IF F_.ligible Projcct Costs to Developer shall not esceed ~156,115.00
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EXHIBIT 2
PRIVATE PROJECT REQUEST FOR REIMBURSEMENT
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CITY OF CANTON, ILLINOIS
CANTON 2- RT.9/CHESTNUT STREET
TAX INCREMENT FiNANCING DISTRICT
PRIVATE PROJECT
REQUEST FOR REIMBURSEMENT
BY
CANTON CROP SERVICE, INC.
Date
Attention: City Administrator, City of Canton
Re: TIF Redevelopment Agreement, dated
by and between the City of Canton, Illinois, and
Canton Crop Service, Inc. (the "Developer")
The City of Canton is hereby requested to disburse funds from the Special Tax
Allocation Fund pursuant to the Redevelopment Agreement described above in the
amount(s), to Canton Crop Service, Inc 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.
2. PAYMENT DUE TO: Canton Crop Service Inc Developer
3. AMOUNTS REQUESTED TO BE DISBURSED:
Description of TIF 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 1" of the Redevelopment Agreement.
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 TIF Eligible Redevelopment
Project Costs; and
(iii) 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 proper~y
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: CITY OF CANTON, ILLINOIS
BY:
TITLE: DATE:
CITY OF CANTON TIF 2- RT. 9/CHESTNUT ST.
CANTON CROP SERVICE INC. / CANTON INDUSTRIAL PARK
Revised 7/17/2012 TIF FORMED
Ca/endar Year of Recei ts 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total Real Estate Tax Increment Built Assessed $13,822 $14,167 $14,522 $14,885 $15,257 $15,638 $16,029 $16,430 $16,841 $17,262 $17,693
School Share 8~ Admin. Fees $3,455 $3,542 $3,630 $3,721 $3,814 $3,910 $4,007 $4,107 $4,270 $4,315 $4,423
Net Real Estate Tax Increment $10,366 $10,626 $10,891 $11,163 $11,443 $11,729 $12,022 $12,322 $12,630 $12,946 $13,270
Devebper's Share of Net RETI $9,226 $9,490 $5,446 $5,582 $5,721 $8,796 $9,016 $9,242 $9,473 $9,710 $9,952
Cumulative Develo r's Share $9,226 $18,716 $24,161 $29,743 $35,464 $44,261 $53,277 $62,519 $71,992 $81,701 $91,654
Ci 's Share of Net increment $1,140 $1,136 $5,446 $5,582 $5,721 $2,932 $3,005 $3,081 $3,158 $3,237 $3,317
Calendar Year of Recei ts 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 TOTALS
Total Real Estate Tax Increment $18,135 $18,589 $19,054 $19,530 $20,018 $20,519 $21,032 $21,557 $22,096 $22,649 $23,215 $23,795 ~422,732
School Share & Admin. Fees $4,534 $4,647 $4,763 $4,882 $5,005 $5,130 $5,258 $5,389 $5,524 $5,662 $5,804 $5,949 s105,683
Net Real Estate Tax Increment $13,602 $13,942 $14,290 $14,647 $15,014 $15,389 $15,774 $16,168 $16,572 $16,986 $17,411 $17,846 ;317 049
Developer's Share of Net RETI $10,201 $10,456 $10,718 $10,986 $11,260 $10,841 5756,11
Cumulative Develo r's Share $101,855 $112,311 $123,029 $134,014 $145,274 $156,115
City's Share of Net Increment $3,400 $3,485 $3,573 $3,662 $3,753 $4,548 $15,774 $16,168 $16,572 $16,986 $17,411 $77,846 ;760,9
Real Estate Variables
Total Projected Market Value $429,360 Inflation Rate 2.5% Developer Share of Net RETI:
Projected Increase in EAV $143,120 Total Tax Rate (2011) 9.6575% 2 years: 2014-2015 89%
Real Estate Tax increment $13,822 Taxing Dist. & Admin. 25% 3 Years: 2016-2018 50% '
Parcei Nos. 09-OS-29-401-012 & 013 Thereafter: 2019-2036 75%
Total Estimated Eligible Project Costs: 5156,115
The iaformatioa end essumptions contained in the foregoing ma[erisl are based upon informstion, matenal and assumprions provided to ]acob & Klein, L[d. (J&K) and the Economic Developmrnt Group, Ltd. (EDG) by outside persons including public officials.
J&K and EDG have not undertaken independent investigation to verify any of the infocmation or material contained herein. No warranty, express or implied, as to the accuracy of the materials and information or the resulis projected in the foregoing presentarion is
made by J&K or EDG, its officers or employces. J&K end EDG speciScally disclaim the accurocy of the formulas and calculations and lias no obligation to investigate or update, recalculate or revise the calculations. The material presented herein is subject to risks,
trends and w~certainties that could cause actual events to differ materially &om those presented. Those providing information contained in this presentation have reprosented to J&K and EDG that, as of the date it was provided, the informstion was accurate to the
best of the'u knowledge. Any person viewing, reviewing or utilizing Uus presentation s6ould do so subject to all of the foregoing limitations end shall conduct independent investigation to verify the assumprions and calculations contained herein. By acceptence and
use of this presentatioq the user accepts atl of the foregoing limitations and releases J&K and EDG from any liability in connection therewith.
H:ICAN70MCANTON 2 RT9-Chestnut StlSpreadsheetslCanton Rt 9 Canton Crop Service Projecdon 042412
CONTRACT FOR PURCHASE OF REAL ESTATE
Canton Crop Service, Inc., an lllinois corporation (`Buyer") whose agent's address is 646
N. 2"d Avenue, , Canton, Illinois 61520, offers to purchase from the City of Canton, Illinois
("Selle?•"), whose address is 2 North Main Street, Canton, Illinois 61520, approximately 8.223
acres ofi real estate located in Canton, lllinois, commonly known as Lot 18 and Lot 19 of the
Enterprise Industrial Park and more particularly described on Exhibit "A" attached hereto and
by refierence made a part hereof, together with all easements, rights of way and appurtenances
thereto and all improvements thereon (collectively the "Real Estate") to be conveyed by general
warranty deed fi•om Seller to Buyer, in a form approved by Buyer (the "Deed"), on the terms and
subject to the following conditions:
1. Purchase Price. The total purchase price for the Real Estate shall be $5,000 per
acres for a total of forty one thousand one hundred fifteen dollars ($41,1 15.00) (or the
"Purchase Price"). The Purchase Price shall be paid as follows:
l.l Consideration. In consideration of Four thousand one hundred eleven
dollars and fifty cents ($4,1 1 1.50) paid by Buyer to Seller and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Seller and Buyer hereby agree to the terms of this Contract.
1.2 Payment on Closin~. At the Closing, Buyer shall pay the Purchase Price,
less credits and pro rations as herein p?•ovided, in immediately available fiunds, to
Seller.
l.3 Acceptance Date. The date upon which the last of Buyer or Seller
executes this Contract is the "Acceptance Date."
2. Conditions of Closin~. Buyer's obligation to close and puechase the Real Estate
is subject to the satisfaction or waiver in writing by Buyer of each of the following
conditions within thirty (30) days from the Acceptance Date (the "Due Diligence
Period"'):
2.1 Title. Within ten (10) days from the Acceptance Date, Seller shall deliver
to Buyer a commitment for an ALTA Owner's Policy of Title insurance (the
"Commitment") prepared by John .I. McCarthy, as agent for Attorneys' Title
Guaranty Fund, Inc. (the "Title Company") which shall insure marketable title to
the Real Estate (including any appurtenant easements necessary for the full
utilization thereo~, free and clear of all liens and encumbrances of any nature
whatsoever in the amount of $41,115.00 after delivery of the Deed to Buyer from
Seller. The expense of the Commitment and premium for the Owner's Policy of
Title Insurance shall be paid by Seller. Any endorsements requested by Buyer
shall be at Buyer's expense. The Title Company shall furnish Buyer with copies
of all recorded documents shown on the Commitment. If within the Due
Diligence Period, Buyer has an objection to items disclosed in the Commitment,
Buyer shall make written objections to Seller within 15 days after receipt of the
Survey, the Commitment and all s~ich instruments. Seller shall then have 15 days
from the date such objections are disclosed to cure the same. Seller agrees to
utilize reasonable efforts to cure such objections, if any. If the objections are not
cured within such time period, or in the event any title objections arise or are
discovered after the expiration of the Due Diligence Period, Buyer may (i)
terminate this Contract, (ii) cure such objections on behalf of Seller (and Seller
shall reasonably cooperate with Buyer in connection therewith) and Seller shall
~ reimburse Buyer for the cost of such cure, or (iii) waive the uncured objections
and close the transaction.
2.2 Feasibi(itv of the Real Estate. Within the Due Diligence Period, Buyer
shall determine whether the Real Estate is acceptable to Buyer in Buyer's sole
discretion. Seller shall fully cooperate with and assist Buyer in obtaining
information regarding the Real Estate. At any time within the Due Diligence
Period, if Buyer determines that the Real Estate is not acceptable to Buyer in
Buyer's sole discretion, Buye~• may terminate this Contract.
2.3 Zonin~. Buyer shall have confirmed that the current zoning classification
and/or covenants and/or commitments affecting the Real Estate are sufficient to
permit Buyer's anticipated use.
2.4 Restrictive Covenants. Buyer recognizes that Seller has developed
restrictive covenants and other land use controls that apply to the enterprise
Industrial District. Buyer f~u-ther agrees that it shall take title to the real property
- subject to said restrictive covenants and land use controls.
2.5 Permits. Buyer will obtain all licenses and approvals necessary fior
Buyer's anticipated use. Seller will eeasonably cooperate with Buyer in all such
proceedings to secure such permits and approvals, including filing any
applications or actions therefor or joining with Buyer therein.
2.6 Condition of Real Estate. Buyer shall have determined, in its sole
discretion, that the Real Estate is adequate for Buyer's anticipated use.
2.7 Financin~. This contract is subject to Buyer obtaining a loan commitment
from a reputable lending institution on or before August 18, 2012 for a small
business loan in the amount of at least Four Hundred Thousand Dollars
($400,000.00), with an initial interest rate of not more than % per annum, for
a term of not less than years amortizable in initial monthly payments of
principal and interest not to exceed $ (exclusive of any amount required
to be escrowed for real estate taxes and insurance), with a loan fee not to exceed
% of the loan amount and any other lender's closing costs not to exceed
$
2
If said financing cannot be obtain by the Buyer by August 18, 2012, then at the
option of the Seller or the Buyer, this agreement shall become null and void and
earnest money will be returned to the Buyer in full.
~ If said financing is obtained by August 18, 2012, Buyer agrees to furnish Seller
with a copy of its written loan commitment and an executed written waiver ofi this
financing contingency within 14 days of the acceptance ofi this offer.
3. Property and Other Taxes. Seller shall pay all assessments, whether general or
special, assessed against the Real Estate prior to Closing. All real estate taxes for the
Real Estate assessed for any prior calendar year and remaining unpaid shall be paid by
Seller, and all real estate taxes for such Real Estate assessed for the current calendar year
shall be prorated between Seller and Buyer on a calendar year basis as of the day of the
Closing. Any taxes and assessments not assumed by Buyer shall be paid by Seller at or
prior to Closing.
4. Condemnation. If at any time after the Acceptance Date: (a) the Real Estate shall
be condemned, in whole or in part, or (b) any notice of condemnation shall be given, then
Buyer, at its sole option, may terminate this Agreement or waive the same and proceed
with the Closing. If Buyer elects to proceed with the Closing, then Buyer may (i) apply
the proceeds of any condemnation award to reduce the Purchase Price, or (ii) accept an
assignment of such proceeds from Seller without any reduction in Purchase Price. In
furtherance of the above, Buyer shall have the right to appear and defend in any such
condemnation proceedings in connection with the Real Estate. .
5. Ri~ht of Entrv. On and after the Acceptance Date, Buyer shall have the right to
ente~• and inspect the Real Estate, to permit surveyors, engineers, soil testing companies
and other agents to enter upon the Real Estate for the purpose of obtaining surveys, soil
tests, inspection reports and other information. Buyer shall indemnify and hold Seller
harmless from and against any loss, damage or injury of any nature whatsoever arising as
a direct result of Buyer's (or its agents') exercise of the right of~entry under this Section
6. Closin~ and Possession.
6.1 Closin~. If this offer is accepted as herein provided, the transaction shall
be closed at the offices of the Title Company on or before ten (10) days after
expiration of the Due Diligence Period (the "Closing"). Seller shall not agree to or
execute any agreements concerning the Real Estate or any portion thereof from
the Acceptance Date to the time of the Closing except upon the prior written
approva( of Buyer. At the Closing, Seller shall execute and deliver to Buyer the
following items:
(a) the Deed in recordable form conveying the Real Estate to Buyer;
3
(b) an Owner"s Affidavit sufificient to cause the Title Company to remove the
standard exceptions from the owner's title policy;
(c) a certificate reaffirming as of the date of the Closing each and all of the
Seller's representations and warranties set forth in this Contract;
~ (d) a Closing Statement;
(e) any other instrument as reasonably required or requested by Buyer or the
Title Company.
At the Closing, Buyer shall pay the balance of the Purchase Price in cash and
execute and deliver a Closing Statement, and any other instrument as reasonably
required or requested by Seller or the Title Company. Seller and Buyer shall each
be responsible for one-halfofthe Closing costs.
6.2 Possession. Exclusive possession of the Real Estate shal( be delivered to
Buyer at time of the Closing.
7. Seller Representations and Wari-anties. Seller represents and warrants to Buyer
that:
7.1 Authority to Enter into Contract. Sellee has full ribht and authority to
enter into and car?y out the te?•ms and provisions of this Contract and the
transactions contemplated hereby, including t-'.,e sale, transfer, conveyance and
delivery of the Real Estate to B~ryer, without obtaining the approval or consent of
any other party. Seller's execution, delive?y and performance of this Contract and
all other agreements or insh•uments contemplated hereby will be legal, valid and
binding obligations of Seller, enfiorceable in accordance with their respective
terms.
7.2 Litigation. Seller has no knowledge of, has no reason to believe of, and
has not been served with notice of, any actual or threatened litigation, action or
legal, administrative, arbitration, condemnation, assessment or other proceeding
against the Real Estate or any part thereof.
7.3 Compliance with Laws. To Seller's knowledge, the Real Estate is (i) in
compliance with applicable statutes, laws, codes, ordinances, regulations and
requirements relating to zoning, subdivision, planning, building, fire, safety,
health, insurability or environiroental matters, (ii) in compliance with covenants,
conditions and restrictions (whether or not of record) pertaining to the title to the
Real Estate, and (iii) in compliance with all other local, municipal, regional, state
or federal statutes, laws, codes, ordinances, regulations and requirements affecting
the Real Estate.
7.4 Contracts and A~reements. Seller is not a party to any contract to sell the
Real Estate other than this Contract. Further, Seller is not a party to any contract,
4
agreement, lease or other commitment which is related to the Real Estate which
will be binding following Closing.
~ 7.5 Title. (i) Seller is the sole owner of the Real Estate, (ii) Seller owns fee
simple title to the Real Estate, and (iii) no party other than Seller is in possession
or occupancy of the Real Estate or claims any unrecorded or undisclosed legal or
equitable interest therein.
7.6 Access. The Real Estate has tull and tree access to and from public
highways, streets, or roads and there is no pending proceeding that would impair
or result in the termination of such access.
7.7 Conditions. Except as set forth in this Contract, with respect to the Real
Estate, Seller has no knowledge nor has Seller received notice, of (i) any
condition, defect or inadequacy which, if not corrected, would result in
termination of insurance coverage or increase its cost; (ii) any violations of
building codes and/or zoning ordinances or other governmental laws, regulations
or orders; (iii) pending condeinnation proceedings; (iv) any proceedings which
could cause the change, redefinition or other modification of the zoning
classification or of other legal requirements applicable to the Real Estate or any
part thereof or to the permitted uses of the Real Estate; (v) special tax or
assessment to be levied against the Real Estate; (vi) change in the tax assessment
of the Rea) Estate or (vii) any other matters material to the Real Estate or the use
thereof. Seller has not knowingly withheld from Buyer information relating to any
material ~defects in the Real Estate or any matters which might adversely affect the
~ development of the Real Estate.
All of the foregoing representations and warranties shall be considered to be true
and correct as of the Acceptance Date and shall survive the Closing. Seller shall
indemnify, defend and hold harmless Buyer fi•om and against any and all claims,
demands, liabilities, damages, suits, actions, judgments, fines, penalties, loss, cost and
expense (including, without limitation, reasonable attorneys' fees) arising or resulting
from, or suffered, sustained or incurred by Buyer as a result of or related in any way to (i)
the misrepresentation or breach of any of the foregoing representations or warranties by
Seller to Buyer; or (ii) any Unknown Pre-Existing Environmental Condition.
8. Brokers. Seller and Buyer represent to each other that they have not used any real
estate brokers or agents with respect to this transaction who would have a right to any
broker's or tinder's fee or commission, and each agrees to defend, indemnify and hold
harmless the other against and from any liability (including reasonable attorneys' fees)
resulting from a claim of any broker or agent claiming through the indemnifying party.
9. Recordin~. This document shall not be recorded. At the option of either party,
Seller and Buyer shall enter into a written memorandum in recordable form setting forth
the terms and conditions of this document which may be recorded by either party, at its
expense.
5
10. Notices. All notices required under this Contract shall be deemed to be properly
served if personally delivered, or sent by registered or certified mail with return receipt
requested, postage prepaid, or sent by recognized overnight courier, to Seller or Buyer at
the address as specified on the first page of this Contract, or to such other addresses
which Seller or Buyer may designate in writing delivered to the other party for such
purpose. Date of service of a notice served by mail or overnight delivery shall be the date
on which such notice is deposited in a post office of the United States Postal Service Date
or with the overnight courier.
1 1. Time of the Essence. Time for the performance of the obligations of the parties is
of the essence of this Contract.
12. Assi~nment; Succession of Obli ations. The rights and obligations of Buyer
under this Contract may not be assigned by Buyer without Seller's consent, which shall
not to be unreasonably withheld; provided, however, Buyer may assign this Contract
without Seller's consent to an entity which is controlled by Buyer or an affiliate of Buyer.
All terms of this Contract shall be binding upon the parties hereto, their successors and
permitted assignees.
13. Invalid Provisions. If any provision of this Contract is held to be illegal, invalid
or unenforceable, said provision shall be fully severable; this Contract shall be construed
and enforced as if such illegal, invalid oi• unenforceable provision had never comprised a
part of this Contract; and the remaining provisions of this Contract shall remain in full
~ force and effect and shall not be affiected by the illegal, invalid or unenforceable
provision or by its severance from this Contract.
14. Multiple Counterparts. This Contract may be executed in a number of identical
counterparts including fiacsimile counte?-parts. If so executed, each of such counterparts
shall be deemed an original for all purposes, and all such counterparts shall, collectively,
constitute one agreement.
15. Attornevs' Fees. The party who is the prevailing party in any legal or equitable
proceeding against the other party in connection with this Contract shall be entitled to
recover from the non-prevailing party reasonable attorneys' fees and expenses incurred.
16. Miscellaneous. This document including all attachments fully sets forth all
agreements and understandings of the parties to this Contract with respect to the subject
matter hereof. Whenever used herein, the singular shall indicate the plural, the plural
shall include the singular, the plural and singular and any gender shall include all genders
and the neuter. Captions to the provisions of this Contract are intended and used solely
for purposes of identifiication and do not limit or enlarge upon the written provisions of
this Contract.
17. Remedies. In the event of a default by Seller hereunder, in addition to all other
rights and remedies available at law or in equity, Buyer shall have the right of specific
6
performance. In the event of a default by Buyer hereunder, the Earnest Money shall be
forfeited to Seller as liquidated damages which shall be Seller's sole and exclusive
remedy at law or in equity.
18. Duration of Offer. This offer shall expire if written acceptance endorsed hereon is
not delivered to Buyer on or before 5:00 o'clock P.M., October 3l, 201 1.
DATED: July I ~ , 2012
CANTON CROP S , Inc.
r
By.
Ke Barker, Owner/Operator,
Attest:
! '
sy:
rent Mahr, Owner/Operator
7
ACCEPTANCE OF OFFER
Seller hereby accepts the foregoing ofifer and acknowledges receipt of (Four Thousand,
One Hundred Eleven Dollars and Fifty Cents ($4,111.50) consideration paid by Buyer
hereunder.
DATED: July 2012
City ofCanton, Illinois -
~
_ ,
; , '
<
By:
Kevin . Meade, ayor
Attest: ~
By: _ ~
'ana Pavley , City Cler
8
EXHIBIT A
(Legal Description of the Real Estate)
Lot Number Eighteen (18) ofthe Enterprise Industrial District pursuant to the Subdivision Plat
thereof filed in the Fulton County (Illinois) Recorder's Office on October 26, I 984, as
lnstrument Number 84-8960, containing 4.914 acres, more or less, subject to all present and
future easements, covenants, and, restrictions, all of the foregoing real p?•operty being situated in
the City of Canton, County of Fulton and State of Illinois.
Lot Number Nineteen (19) ofthe Enterprise [ndustrial District Pursuant to the Subdivision Plat
thereoffiled in the Fulton County (illinois) Recorder's Office on October 26, 1984, as
Instrument Number 84-8960, containing 3.309 acres, more or less, subject to all present and
future easements, covenants, and, restrictions, all of the foregoing real property being situated in
the City of Canton, County of Fulton and State of Illinois.
9