HomeMy WebLinkAboutOrdinance #3014 CITY OF CANTON,
FULTON, ILLINOIS
ORDINANCE NO. T
CANTON 1- DOWNTOWN/5TH AVENUE
TAX INCREMENT FINANCING (TIF) DISTRICT
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF A REDEVELOPMENT AGREEMENT ,
by and between
THE CITY OF CANTON
and
RONALD ERIC MATTHEWS
ADOPTED BY THE CORPORATE AUTHORITIES
OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS,
ON THE 1GTH DAY OF APRIL, 2013.
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CITY OF CANTON, ILLINOIS: ORDINANCE NO.
CANTON 1- DOWNTOWN/5TH AVENUE
TAX INCREMENT FINANCING (TIF) DISTRICT
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF A REDEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF CANTON
AND
RONALD ERIC MATTHEWS
WHEREAS, the Ciry of Cai~ton, Fulton Count~~, Illinois ("City"), cstablished a"TaY Increment
Financing District known as the Canton 1- Do~vntown/5`~' Avenue TIF District (the "TIF District")
puYSUant to the Tax Increment ~lllocation Redevelopment Act (the "Act"), 65 ILCS 5~ 11-74.4-1 et seq.
on the 6`" day of July, 2004; and
WHEREAS, the Ma~~or and Cih~ Council of the Ciry of Canton have determined that the TIF
Redevelopment l~lgreement attached hereto as F.x{~iGit~~ is in the best interest of the citizens of the City
of Canton.
THEREFORE, BE IT ORDAINED BY THE MAYOR AND THE CITY COUNCIL
OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS, THAT:
SECTION ONE: The TIF Redevelopment ~~greement hcieto attached as F,xbibit_~ by and between
the Ciry of Canton, Fulton Count~~, Illinois (the "Cit~~") and Ronald Eric Matthews (the "Developer")
is hereb5~ adopted and approved.
SECTION TWO: The Ma~~or is hereby authorized and directed to entei into and esecute on behalf
of the Ciry said TIF Redevelopincnt ~greement and the Ciry Clcrk of the Ciry of Canton is hereby
authorized and directed to attest such execution.
SECTION THREE: The TIF Redevelopment ~greement shall be effective the date of its appYOVaI
on the 16`'' day of rlpril, 2013.
SECTION FOUR: This Ordinance shall be in full force and effect from and after its passage and
approval as required by la~v.
[The balance of this page is intentionally blank.]
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PASSED, APPROVED AND ADOPTED by the Corporate rluthorities of the Ciry of Canton,
Fulton County, Illinois, on the 16`~ dav of r~pril, ~.D., 2013, 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
r11d. David Pickel
Ald. james Hartford X
r11d. Jeffrey Fritz
r11d. Craig West
Ald. Gerald E1lis
Aid. Justin Nelson
~11d. Fric Schenck
~~ld. Jeremy~ I'asle~~ ~
Hon. Kevin Meade, Ma~~or
TOTAL VOTES
APPROVED: ~ ~ Date 5 / ~ / 2013
>
IIon 'evin Meade, Ma ~or, City of Canton
ATTEST:
, Date: ~ / ~ / 2013
iana Pavley, City erk, City of Canton
ATTACHMENTS:
1. EXHIBIT A: A'1'll~ RI?lll~.~'I?LOYi~il?N'1' ~AGRI~;I?1il?N"l' BY ~AND BI:'i1X~l~:l?N 'I'f [i~: Cl'1'Y OI~ C;AN"CON ;ANll
RONAI,D (?RIC i~1.A"t"1'HBWS.
-3-
EXHIBIT A
REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON
and
RONALD ERIC MATTHEWS
CANTON 1- DOWNTOWN/5TH AVENUE
TAX INCREMENT FINANCING (TIF) DISTRICT
-4-
CANTON 1- DOWNTOWN/5TH AVENUE
TAX INCREMENT FINANCING DISTRICT
TIF REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON, FULTON COUNTY, ILLINOIS
and
RONALD ERIC MATTHEWS
APRIL 2013
CANTON 1- DOWNTOWN/5T`' AVENUE
TAX INCREMENT FINANCING DISTRICT
REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON, FULTON COUNTY, ILLINOIS
and
RONALD ERIC MATTHEWS
THIS REDEVELOPMENT AGREEMENT (including Eshibits) ("1~greement") is entered into
this 16`~ day of r~pril 2013, by the City of Canton (the "Cit}~"), an Illinois Municipal Corporation,
County, Illinois, and Ronald Eric Matthews (the "lleveloper").
PREAMBLE
WHEREAS, the Ciry has the authoritj~ 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 propert~~ thereby increasing the taa base of the Ciry and
providing employment for its citizens; and
WHEREAS, pursuant to the'1'ax Increment l~llocation 1Zedevelopment~ct, 65 ILCS 5/11-74.4 ez ~~eq.,
as amended (the "3ct"), the Citv has the authorit~~ to provide incentives to o~vners or prospective
owncrs of real propert~~ to de~~elop, redc~~elop, and reh~bilitate such propertj~ b~~ reimbursing the owner
for certain costs from resulting incre~ses in real estate t~t rcvenues and enter into contracts with
developers necessary or incidental to the implementation of its redevelopment plan pursuant to 65 ILCS
5/11-74.4-~(b) and (j); and '
WHEREAS, the City, recognizing the necd to foster the deeelopment, e:cpansion and revitalization of
certain properties ~vhich are vacant, underurilized or obsolcte or a combination thereof, adopted Tax
Increment Financing and created a"1'al Increinent ~~llocation Rcde~~elopment tlrea under the l~ct
known as the Canton Interr7ational FIaivester Site Project 1~rea TIF District (the "Canton IH TIl~
District" currently known as thc "Canton 1- Downtown/5th Avenue TIF District") on July 6, 2004
by Ordinance No. 1807; and
WHEREAS, pursuant'1'IF 1~ct, the Cit~~ appro~red the Pirst ~lmendment to the Canton IH TIF District
on November 22, 2011 by Ordinance No. 2052; and
WHEREAS, the Developer owns properry located at 27, 29, 31 South I~1ain Street, Canton, lllinois
(PIN#: 09-08-27-415-008) (the "Property") and said Properry was in need of development and integral
to the development of the TIF' District; and
WHEREAS, the Developer desires to purchase and have installed a new awning and complete
additional exterior improvements to his commercial building (the "Project"), based upon incentives
being made available by the Cit~~; and
Cro~ton 1- Downtown/S'~' Avenue TlF Dist~•ict -~Llntthetii~s Page 2 of 12
WHEREAS, it is the intent of the City to encouYage economic development which will increase the
real estate taY to finance incentives to assist this Developer's Project; and
WHEREAS, the Developer's proposed Project is consistent with the City's Comprehensi~re Plan, it
applicable, and in compliance with local zoning requirements; and
WHEREAS, the Ciry has the authoriry under the r~ct to incuY Redevelopment Project Costs ("Eligible
Project Costs") and to reimburse Developer for such Fligible Project Costs; and
WHEREAS, the Developer requests that incentives for the development be provided by the Cit~~ from
incremental increases in real estate ta.:es of the Cin~ and that such incentives include the reimbursement
of ~ligible 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 healCh, safety and welfare of the Ciry and its citizens by
attracting private investment to prevent blight and deteriorauon, to develop underutilized properry, and
to provide employment for its citizens and generally to enhance the economy of the Ciry; and
WHEREAS, the Ciry has agreed to provide a lump-sum, forgivable Loan to the Developer in the
amount of $4,000.00 from the Special Tas r~llocation Fund (the "Canton 1- Dow•ntown/5`~' l~venue TIF
F~und") as set forth herein for the ieimbursement of the Developer's l:ligible Projcct Costs; and
WHEREAS, the City is entering into this ~greement to induce the Developer to coinplete reno~rations
to his esisting commercial building located on said Propeity; and
WHEREAS, iri consideration of the esecution of this l~greeinent and in reliance thereon, the
llevelopei has proceed with the Project as set forth herein.
AGREEMENTS
NOW, THEREFORE, for good and valuable consideration, the receipt of which is ackno~vledgcd,
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 rlgreement, and are to be construed as binding statements of this r'~greement.
2. Any terms ~vhich are not defined in this Agreement shall have the same meaning as they do in
the Act, unless indicated to the contrary.
3. The Ciry in extending incentives for this Project is relying on the representation of the
Developer contained herein to substantially complete the Project as set forth herein.
Ca~~ton l- Downlown'S`" Avenare T/F District - Mauhews Page 3 of 12
4. Each of the Parties represents that it has taken all actions necessary to authorize its
representatives to eYecute this .~greement.
B. ADOPTION OF TAX INCREMENT FINANCING
The City has created a Tax Incremcnt Financing District l~nown as "Canton 1- Downto~vn/5`" ~venue
TIF District" which includes the Developer's Pro~~ert~~. The City has approved certain Redevelopment
Project Costs in the Redevelopment Plan, including the types described in Exhif~it 1 for the Developer's
Project.
C. INCENTIVES
In consideYation for the Developer coinpleting its Project substantially, the City agrees to extend to
Developer the following incentives to assist the De~~eloper's Project
1. The City has agreed to provide a Loan (the "Loan") to the Developer b~ separate Promissory
Note (see I?xlnbit 2) in the amount of Four Thousand Dollars ($4,000.00) pursuant to the
following conditions:
(a) The Loan shall bc paid in one lump-sum payment to the Developer upon execution of
this l~~greement from the Canton 1- Do~vnto~vn~5`~' ~~venue TIF Fund;
(b) The interest rate for the Loan sh~ll be 3°/~ per annum;
(c) The Loan shall be pati~able to tl~c Cin~ tour ~~ears from the date of the e~ecution of
this r~greement;
(d) In the event that: (1) thc t~vo (2) retail spaces located in the Developer's building located
on said Propert~~ arc occupied and operated as retail businesses foY three (3) yeats out
of the four year term of the Loan; and (2) the Developer provides verification of TIF
Eligible Project Costs in the amount of $4,000.00, the Loan shall be fully forgiven by
the Ciry on the date the Loan becomes due; and
(e) In the event that the occupanc}~ and veiification requirements set forth in paragraph (d)
above are not met, the Developei shall be found in default of the Loan and the Loan
shall be pro-rated and paid to the City by the Developer plus 3% annual interest accrued
up to the date of the default.
D. LIMITATION OF INCENTIVES TO DEVELOPER
1. The Developer shall be reimbursed by the Ciry for TIF Eligible Project Costs permitted by the
Act, not to exceed $4,000.00.
2. The Developer shall provide verification of TIF Eligible Project Costs in the amount of the
Loan as set forth in Sec•tiort F.. below.
Canton 1- Downtown/5`~' Avenue 7//~ Distric[ - Mallhews Page ~F of 12
E. PAYMENT OF ELIGIBLE PROJECT COSTS
1. Payment to the De~-eloper for Eligible Project Costs as set forth by the ~-~ct shall be made by
a Requisition for Payment of Private Development Redevelopment Costs ("Requisition")
submitted from time to time to Jacob & Klein, Ltd. and the Economic Development Uroup,
Ltd. ( collectivel5~ the "r~dministrator") and subject to their appro~~al of the costs.
2. r111 Requisitions must be supported by all corresponding ~=erified receipts, invoices, bills or
statements of suppliers, contYactors, or professionals together with I~lechanic's Lien ~Y~aivers,
if applicable, cancelled checks or other proof of payment as required by the Ciry.
3. The ~dministrator shall approve or disapprove a Requisition by written receipt to the Developer
~vithin thirty (30) business days aftcr receipt of the Requisition. l~pproval of the Requisition will
not be unreasonably withheld. If a Requisition is disapproved by the rldministrator, the reasons
for disallowance will be set forth in ~uriting and the Developer may resubmit the Requisition
~vith such additional information as ma~~ be required and the same procedures set forth herein
shall apply to such re-submittals.
4. Eligible Project Costs shall be bioadly defined in the Kedevelopment Plan to include all costs
defined in the ~ct as Redevelopment Project Costs.
F. LIMITED OBLIGATION
"1'he Cit~~'s obligation hereunder to pay the Developer for 1?ligible Project Costs is a limited obligation
to be paid solelj~ from the Special Tax 1111ocation Fund in the cumulative amount of $4,000.00. Said
obligation does not now and shall never constitute an indebtedness ot the Cin~ within the meaning ot an~~
Statc of Illinois constitutional or statutory provision, and shall not constitute or give rise to a pecuniary
liabilin~ of the Ciry or a charge or lien against the Ciry's general credit or ta~ina power.
G. LIMITED LIABILITY OF CITY TO OTHERS FOR
DEVELOPER'S EXPENSES
1'here shall be no obligation by the Cit~~ to make any pa}'ments to an~- 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 far the Project. This ~lgreement shall
not create any third-parry rights and the Developer shall indetnnif~~ 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 ~vhen reasonablj~ requested to do
so concerning the development of the Developer's Project.
Canlon 1- Uotivntown/S"' Avenue TIF Distrrct - Nlntthews Pnge 5 of I2
I. DEFAULT; CURE; REMEDIES
In the event of a default under this ~~greement b~~ any party hereto (the "Defaulting Party"), which
default is not cured within the cure period provided fox belo~v, then the other parry (the "Non-defaulting
Parry") shall have an action for damages, or in the event damages ~vould not fairly compensate the Non-
defaulting Party's for the Defaulting Party's breach of this ~~greement, the Non-defaulting Party shall
have suc~7 other equity rights and remcdies as are available to them at law or in equity. Any damages
payable by the City hereunder shall be limited to the real estate tas increment payable to the Developer
under the terms of this I~greement.
In the event a Defaulting Partv shall fail to perform a monetary covenant which it is required to perform
under this rlgreement, it shall not be deemed to be in default under this r~greement unless it shall have
failed to perform such monetar5~ covenant within thixry (30) days of its receipt of a norice from a Non-
defaultii~g Party specifying that it has failed to perform such monetary covenant In the event a
Defaulting Parry fails to perform any non-monetaiy covenant as and when it is required to under this
Agreement, it shall not be deemed to be in default if it shall have cuYed such default within thirty (30)
days of its receipt of a nouce from a Non-defaulting Parry specif~~ing the nature of the default, provided,
however, with respect to those non-monetar~~ defaults ~vhich are not capable of being cured within such
thirty (30) day period, it shall not be deemed to be in detault if it commences curing within such thiYty
(30) days period, and thereafter diligend~~ and continuousl~~ prosecutes the cure of such default until the
same has been cured.
J. ASSIGNMENT
The rights and obligations of the Developer and ~~ssignees under this r~greement shall not be assignable.
K. WAIVER
Any Parry to this ~~greement mav elect to wai~~e anv remed~~ it tnay enjoy hereunder, provided that no
such waiver shall be deemed to etiist unless the Party ~vaiving such right of remedy does so in ~vriting.
No such waiver shall obligate such Parn~ to waive anj~ right of remed~~ hereunder, or shall be deemed to
constitute a waiver of other rights and remedies provided said parry pursuant to this Agreement.
L. SEVERABILITY
If any section, subsection, term or pro~rision of this 1~greement or the applicarion thereof to any paYry
or circumstance shall, to any eYtent, be invalid or unenforceable, the remainder of said section,
subsection, term or provision of this r~greement or the applicarion 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 eYecuted 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,
Candon 1- Dotier~town/5'" Avenue T/F Di.rl~~iet - h9attl~etivs Page 6 of 12
or as of the third (3"') day from and including the date of posting, if mailed bj~ registered or certified mail,
return receipt requested, with postage prepaid addressed as follows:
To Develo~er: To Ci
Ronald Eric Matthews City~ of Canton
956 N. 7`~' ~ve. % Cit~~ r~dministtator
Canton, IL 61520 2 N. Main St.
Telephone: (309) G47-6929 Canton, IL 61520
eitiatt6l(~i%,corncast.neT Teleplioue: (309) 647-0065
Fas: (309) 647-2348
IVit{~ copy to:
Jacob & ILlein, Ltd.
~conoinic Development Group, Ltd.
1701 Cleaiwater rlvenue
Bloomington, Illinois 61704
Telephone: (309)G64-7777
N. SUCCESSORS IN INTEREST
This ~~greement 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 r~greement nor any acts of the Parties to this r~grecinent shall be construcd bj~
the Parties or an~~ third person to create the relationship of a partnership, agency, or joint venture
between or among such Parries.
P. INDEMNIFICATION OF CITY
Developer acknowledges that it is responsible for compliance with the Illinois Prevailing Wage ~ct, to
the eXtent such is applicable. rlpplicability is to be determined by Developer and Developer shall
indemnify and hold harmless the City, and all Cit~r elected or appointed officials, officers, employees,
agents, representatives, engineers, consultants and attotneys (collectively, the Indemnified Parties), fYOm
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
`~1age r~ct (820 ILCS 130/0.01 et.3~eq.), 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 liabiliries and/or penalties imposed, and pay all defense costs of City,
including but not limited to the reasonable attorney fees of City.
Cnnton 1- Dox~ntown/S"' Avena~e TlF District - Matthews Page 7 of 12
Q. WARRANTY OF SIGNATORIES
The signatories of Developer warrant full authoritv to both execute this r~greement and to bind the entit~~
in which they are signing on behalf of.
R. TERM OF THE AGREEMENT
This Agreement shall expire upon the espiration of the I,oan as set forth herein and attached as ExhiGit
2.
IN WITNESS WHEREOF the Parties hereto have caused this r~greement to be e~ecuted by
their duly authorized officers on the above datc at Cambridge, Illinois.
CITY OF CANTON, ILLINOIS, a DEVELOPER:
Municipal Corporation~/ RONALD ERIC MATTHEWS
,
s~~. ~ 13, :
Mayor
ATT T:
- iry Clerk
EXHIBITS ARE ATTACHED AS FOLLOWS:
Exhibit 1. Summary of Estimated Eligible Project Costs
Exhibit 2. Promissory Note
Canton 1- Downtown/~"' Aventre T/F Drstrict -~t~trtd~ews Page 8 of l2
EXHIBIT 1
SUMMARY OF ESTIMATED TIF ELIGIBLE PROJECT COSTS
Ronald Eric Matthews/Renovation Project
Canton 1- Downtown~5`~' ~lvenue "IIF llistrict
in the Ciry of Canton, P'ulton Counn~, Illinois
Project Description: The Developer desires to complete eYterior improvements to the outside
of his commercial building located on the Property.
Project Location: 27, 29, 31 South Main Street, Canton, Illinois, Illinois.
PIN#: 09-08-27-415-008
Estimated Eligible Project Costs:
Rehabilitation/Renovation $4,000.00
Total Estimated Eligible Project Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,000.00
Cnnlon l- Downtown,~5'" Avenue TIF Disd•ict - Matthews Pnge 9 of 12
EXHIBIT 2
PROMISSORY NOTE
Canton 1- Downtotiti~~~/5'" ffie»ue 7/F' District - A~latll~ews Page l0 of l2
PROMISSORY NOTE
FOR VALUE RECEIVED, Ronald Eric Matthews ("Payor"), promises to pay the City of
Canton, Fulton County, lllinois, an Illinois Municipal Corporation ("Payee") the principal sum of
Four Thousand Dollars ($4,000.00) with interest accruing on the unpaid principal at the rate of
three percent (3°/a) per annum. The aforementioned principal sum represents monies loaned by the
Payee to the Payor for the reimbursement of Payor's TIF Eligible Project Costs, specifically
rehabilitation/renovation costs, incurred as a result of a Redevelopment Project located at 27, 29, 31
S. Main Street, Canton, Illinois, within the Redevelopment Project Area and the subject of a
Redevelopment Agreement between the City of Canton and Ronald Eric Matthews (the
"Redevelopment Agreement").
The term of this Promissory Note shall be for four (4) years commencing on the date the
Redevelopment Agreement is executed between the Payor and the Payee.
In the event: (1) the two (2) retail spaces in the Developer's commercial building remain
occupied and operational for three (3) of the four (4) years the Promissory Note is effective; and (2)
the Developer provides verification ofTIF Eligible Project Costs in the amount of$4,000.00, the full
principal amount of this Promissory Note shall be forgiven upon the expiration of this Promissory
Note.
The Payor shall be in Default under or otherwise breach this Promissory Note, if the Payor:
1) , fails to provide verification of TIF Eligible Project Costs in the manner set forth in the
Redevelopment Agreement in an amount equal to or greater than $4,000.00; or
2) two (2) retail spaces in the Developer's commercial building fail to remain occupied
and operational for three (3) of the four (4) years the Promissory Note is effective. ~
ln the event the Payor is in Default under the terms ofthis Promissory Note and does not cure
said default or breach on or before the tenth (10`~') date after Payee gives Payor written notice of
Default, thereof, by personal delivery or certified mailing, the prorated principal amount plus the 3%
annual interest accrued up to the date of default is due to the Payee within sixty (60) days and the
Payee 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 Payee to exercise said right in the
event of a subsequent or continuing Default or breach. Furthermore, in the event of such Default or
breach, Payor promises to Payee all collection/and or litigation costs incurred, including reasonable
attorney fees and court costs, whether judgment is rendered or not.
This Promissory Note has been entered into and shall be performed in 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 ofthe Payee, be adjudicated in Fu(ton County, I(linois.
('r~nto~~ 1- Downtown/S'~' .4veni~e T/F District - Mntthews Pnge 11 of 12
Ronald Eric Matthews City of Canton
_
By: By: ~
~
~
Attest: ~ Attest:
Canton 1- Downtown/S`~' Avenare Tlh~ Dish•ict - Mntthews Pnge ]2 of l2