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HomeMy WebLinkAboutOrdinance #3016 CITY OF CANTON, FULTON COUNTY, ILLINOIS ORDINANCE NO. ~ U I ~ AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF THE FIRST AMENDMENT TO A INTERGOVERNMENTAL AGREEMENT by and between CITY OF CANTON, FULTON COUNTY, ILLINOIS and BOARD OF EDUCATION CANTON UNION SCHOOL DISTRICT NO. 6G ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF CANT N, ILLINOIS, ON THE ~ DAY OF , 2013. ~ CITY OF CANTON, ILLINOIS: ORDINANCE NO.~I.:c~ AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF THE FIRST AMENDMENT TO A INTERGOVERNMENTAL AGREEMENT BY AND BETWEEN CITY OF CANTON, FULTON COUNTY, ILLINOIS AND BOARD OF EDUCATION, CANTON UNION SCHOOL DISTRICT NO. 66 BE IT ORDAINED BY THE CITY OF CANTON THAT: SECTION ONE: The First Amendment to a Intergovernmental Agreement by and between the City of Canton and the Board of Education, Canton Union School District No. 66 (FxhibitA attached) is hereby approved. SECTION TWO: The Mayor is hereby authorized and directed to enter into and execute on behalf of the City said First Amendment to the Intergovernmental Agreement and the Ciry Clerk of the Ciry of Canton is hereby authorized and directed to attest such execution. SECTION THREE: The First Amendment to the Intergovernmental Agreement shall be effective irilmediately upon approval by the City of Canton and the Board of Education, Canton Union School District No. 66. SECTION FOUR: This Ordinance shall be in full force and effect from and after its passage and approval as required by law. PASSED, APPROVED AND ,~1DOPTED by the Mayor and Ciry Council of the Ciry of Canton, Illinois, on the ~ day of ~~~..(f'1,Cc'~.D., 2013, and deposited and filed in the Office of the City Clerk of said Ci on that date. MAYOR & ALDERMEN AYE VOTE NAY VOTE ABSTAIN / ABSENT Ald. David Pickel Ald. John Lovell x Ald. Craig West Ald. Gerald Ellis Ald. James Nelson r11d. Justin Nelson Ald. Jeremy Pasley x Hon. Jeffrey A. Fritz, Mayor E' f + 1 VOTES APPROVED: , Date d ~ / 201.~ H n. •ey . ~ z, ayor, City of Canton ATTEST: , Date: ~ / 201~ Pavley, City Clerk ity of Canton ATTACHMENTS: EXHIBIT A. First ~lmendment to Intergovernmental ~greement by and between City of Canton, Fulton County, Illinois and Canton Union School District No. 66. EXHIBIT A FIRST AMENDMENT TO INTERGOVERNMENTAL AGREEMENT by and between CITY OF CANTON, FULTON COUNTY, ILLINOIS and BOARD OF EDUCATION, CANTON UNION SCHOOL DISTRICT NO. 66 FIRST AMENDMENT to an INTERGOVERNMENTAL AGREEMENT by and between CITY OF CANTON, FULTON COUNTY, ILLINOIS and BOARD OF EDUCATION CANTON UNION SCHOOL DISTRICT NO. 66 CANTON 1- DOWNTOWN/5TH AVENUE TIF DISTRICT & CANTON 2- RT. 9/CHESTNUT STREET TIF DISTRICT JUNE 2013 FIRST AMENDMENT TO AN INTERGOVERNMENTAL AGREEMENT by and between CITY OF CANTON, ILLINOIS and BOARD OF EDUCATION CANTON UNION SCHOOL DISTRICT NO. GG THIS FIRST AMENDMENT TO AN INTERGOVERNMENTAL AGREEMENT is dated this ~ day of June 2013, by and between the City of Canton, an Illinois Municipal Corporation, Fulton County, and Board of Education Canton Union School District No. 66. PREAMBLE WHEREAS, the City of Canton (the "City") is an Illinois Municipal Corporarion organized under the Constitution and Statutes of the State of Illinois ; and WHEREAS, Canton Union School District No. 66 (the "School District") is an Illinois School District organized under the Statutes of the State of Illinois; and WHEREAS, the 1970 Illinois Constitution, Article VII, Section 10, and the Illinois Compiled Statutes, 2011, 65 ILCS 5/ 11-74.4-1 et. seg. provide legal authority for intergovernmental privileges and authority to be enjoyed joindy by school districts and municipalities as well as other public bodies politic; and WHEREAS, the Tax Increment Allocation Redevelopment Act ("TIF Act"), Illinois Compiled Statutes, 2011, as amended, 65 ILCS 5/11-74.4-1 et seq. authorizes a municipality to enter into all contracts necessary or incidental to the implementation and furtherance of its redevelopment plan and project; and WHEREAS, the City by its duly elected Mayor and City Council heretofore adopted a Redevelopment Plan and Projects; designated a Redevelopment Project Area; and adopted Tax Increment Financing pursuant to the Tax Allocation Redevelopment Act, 65 ILCS 5/11-74.4 et. .req., known as the Canton 2- Rt. 9/Che.rtnut St. TIF District Canton 2- Rt.9/Chestnut St. TIF District") on February 6, 2012; and WHEREAS, prior to the adoption of the TIF District, the City and School District entered into an Intergovernmental Agreement on December 6, 2011 providing for the designation of annual "surplus funds" from the Canton 2- Rt.9/Chestnut St. Special Tax r~llocation Fund and for the reimbursement of a portion of the School District's capital costs (Exhibit 1); and WHEREAS, Parcel Identification Numbers 09-08-27-409-001, 09-08-27-409-002, 09-08-27-409-003, 09-08-27-409-004 and 09-08-27-409-0051ocated on the southwest quadrant of Main Street and Locust Street in Canton, Illinois, described in F.xhibit2 and hereinafter referred to as the "Hotel Development Site", were contemplated by the City to be included in the proposed Canton 2- Rt. 9/Chestnut St. Redevelopment Project Area; and 1 WHEREAS, the "Hotel Development Site" was not included in the Canton 2- Rt. 9/Chestnut St. Redevelopment Project Area as designated on February 6, 2012, and remains within the boundaries of the Canton 1- Dosvntoivn/Sth Avenue TZF District ("Canton 1- Downtown/5`" Ave. TIF District"); and WHEREAS, the City desires to amend the original Intergovernmental Agreement executed on December 6, 2011, as set forth herein. AGREEMENTS NOW, THEREFORE, the Parries agree to implement these statements, findings, and policies as follows: Incor~oration of Preambles: The Parties find that all of the recitals contained in the preamble to this Agreement are full, true and correct and incorporate them into this Agreement by this reference. Amendment: The following underlined language shall be added to Paragraph.r2, 3 and4 in the~greements Section of the original Intergovernmental Agreement: 2. Surplus Funds: Each year during the term of this Agreement commencing with the City's Fiscal Year 2013, the City agrees to declare as "surplus funds" and set aside annually within the Canton 2- Rt.9/Chestnut St. TIF District Special Tax Allocarion Fund (the "Fund") twenty percent (20%) of the gross total real estate tax increment deposited annually into the Fund. In addition, the City agrees to declare as "sur~lus funds" and set aside annuall~ within the Canton 1- Downtown/5th Ave. TIF District S~ecial Tax Allocation Fund twenty percent (20%) of the gross real estate tax increment de~osited annuallv into the Fund from the "Hotel Develo~ment Site" as described in F.xhibit 2. All surplus funds in the Special Tax Allocation Funds shall be distributed annually within 180 days after the close of the City's fiscal year by being paid by the City Treasurer to the Fulton County Collector. The School District shall then receive from the Fulton County Collector, pursuant to Section 11-74.4-7 of the TIF Act, its pro-rata share of the total amount of declared "surplus funds" as part of the annual distribution to the respective ta~ng districts in the same manner and proportion as the most recent distribution by the Fulton County Collector to the affected districts of real property taxes from real property in the TIF District Redevelopment Project Areas. The School District shall use such funds received under this Paragraph 2 for the operation of any School District facility and related educarional expenses incurred by the School District within the City of Canton. A. Pursuant to 65 ILCS 5/11-74.4-7 of the TIF Act, the Ciry and School District further acknowledge that "Surplus Funds" are defined as follows: "Obligations secured by the special tax allocation fund set forth in Secrion 11-74.4-8 for the redevelopment project area may be issued to provide for redevelopment project costs. Such obligations, when so issued, shall be retired in the manner provided in the ordinance authorizing the issuance of such obligations by the receipts of taxes levied as specified in Section 11-74.4-9 against the taxable property included in the area, by revenues as specified by Section 11-74.4-8a 2 and other revenue designated by the municipality. A municipaliry may in the ordinance pledge all or any part of the funds in and to be deposited in the special tax allocation fund created pursuant to Section 11-74.4-8 to the payment of the redevelopment project costs and obligations. Any pledge of funds in the special tax allocation fund shall provide for distribution to the taxing districts and to the Illinois Departrnent of Revenue of moneys not required, pledged, earmarked, or otherwise designated for payment and securing of the obligations and anticipated redevelopment project costs and such excess funds shall be calculated annually and deemed to be "surplus" funds. In the event a municipality only applies or pledges a portion of the funds in the special tax allocation fund for the payment or securing of anticipated redevelopment project costs or of obligations, any such funds remaining in the special tax allocation fund after complying with the requirements of the application or pledge, shall also be calculated annually and deemed "surplus" funds. All surplus funds in the special tax allocation fund shall be distributed annually within 180 days after the close of the municipaliry's fiscal year by being paid by the municipal treasurer to the County Collector, to the Department of Revenue and to the municipality in direct proportion to the tax incremental revenue received as a result of an increase in the equalized assessed value of property in the redevelopment project area, tax incremental revenue received from the State and tax incremental revenue received from the municipality, but not to exceed as to each such source the total incremental revenue received from that source. The County Collector shall thereafter make distribution to the respective ta~ng districts in the same manner and proportion as the most recent distribution by the county collector to the affected districts of real property taxes from real property in the redevelopment project area." 3. Payment by City to School District for Reimbursement of Capital Costs: Each year during the term of this Agreement commencing with Tax Year 2012 payable 2013, the City shall pay to the School District from the real estate tax increment created by any development or increase in equalized assessed valuation within the Canton 2- Rt. 9/Chestnut St. TIF District and the "Hotel Develo~ment Site" a percentage of the total real estate tax increment revenue deposited into the Special Tax Allocation Funds which in addition to the School District's pro-rata share of surplus funds received under Paragraph 2 above to insure that the School District receives a total cumulative annual sum equal to ten percent (10.0%) of the real estate generated annually within the Canton 2- Rt. 9/Chestnut St. TIF District and the "Hotel Develo~ment Site" as set forth in the example provided in Exhibit 1. The School District shall use such funds received under Section 5/11-74.4-3(c~(7) of the TIF Act for capital and equipment expenditures for any school district facility and educational expenses incurred within the City of Canton and shall provide the City with a list of such expenditures annually as set forth in Paragraphs 3(A), 3(B) and 3( C) below. The City shall pay the sum determined above to the School District within a reasonable time after the City's receipt of the real estate tax increment generated in the TIF 3 Districts and in the same proportions as actually received by the City. For example, the City may receive an estimated one-third of the increment in August. The City would pay one-third of the amount computed above to the School District. A. The Parties agree and the City Council has determined that the redevelopment projects within the boundaries of the TIF District may result in the School District incurring substantial increased capital costs with regard to the school buildings and facilities and would result in the need for additional capital improvements which are necessary and direcdy result from the redevelopment projects. The School District at its discretion may use all or part of the TIF funds described above for any capital and equipment expenditures relating to any facility and educational program of the School District located within the City of Canton. B. For purposes of this Agreement, the term "capital costs" shall be defined by the Illinois School Code and Rules and Regulations promulgated thereunder or as set forth in publications of the Illinois State Board of Education and shall include costs of all real property, and all personal property having a value in excess of $500 and, having a useful life of six (6) months including, but not limited to: 1. Acquisition of land to serre the immediate or future needs of children from the development; 2. Improvement to any e~sting school site which already serves such needs; 3. Development of classrooms, parking lots, sidewalks, traffic signals, internal roadways, connections with water, sewer and electrical lines; playgrounds; recreation grounds and athletic fields; 4. Remodeling or renovation of school facilities; 5. Purchase and prefabrication of classroom units; 6. Material, goods or equipment as set forth in Exhibit A of the Illinois Program Accounting Manual for Local Education Agenczes prepared by the Illinois State Board of Education. 7. Buses, maintenance equipment, office equipment, district vehicles, or playground equipment; or 8. Any other piece of capital equipment deemed necessary by the School District. 4 C. The School District shall annually provide a letter to the City certifying the annual payment from the City to the School District was spent on capital costs as described in the above Paragraph 3, and/or for the costs of operating its job training, advanced vocational education and career educarion programs. The School District shall also provide the City annually with a copy of the School District's audits to assist in verifying capital costs. The School District shall hold the City harmless from any claims and/or damages, including reasonable attorney fees of the City, and shall defend the City in any action or proceeding which may be threatened and/or commenced challenging the payment of capital costs, the definition of capital costs, and/or the eligibility of payments for capital costs pursuant to this Agreement. The School District recognizes that the City may be prohibited from making any payments required hereunder pending resolution of any challenge and further holds the City harmless for any non-payment or delayed payment due to this reason. The City shall not initiate any claims against the School District for the purpose of contesting expenditures by the School District of the funds payable under this Agreement and the City shall not withhold payments under the terms of this Agreement based upon an assertion that the School District is not using the funds to pay capital costs, so long as the School District provides an annual letter to the City as described above and annually provides the City with a copy of the School District's audit. The School District shall not be obligated to hold harmless and/or defend the City should it initiate any claims against the School District for the purpose of contesting the expenditure of funds paid or payable to the School District under this Agreement. D. In the event that the capital costs of training, advanced vocarional education and career education expenditures exceed the amount available for distribution from the Special Tax Allocation Funds, any unreimbursed capital costs and job training, advanced vocational education and career education expenditures may be carried over to a subsequent year or years and paid by the City (but shall not exceed the annual payment as set forth in the above Paragraph 3). E. The City's reimbursement to the School District for capital costs as set forth in the above Paragraph 3, shall be made prior to the City's declaration of surplus funds pursuant to Paragraph 2, and shall be calculated pursuant to the School District's anticipated pro-rata share of the surplus funds. In the event the City's actual reimbursement to the School District for capital costs as set forth in the above Paragraph 3, together with the School District's actual pro-rata share of surplus funds received based on Paragraph 2 is found to exceed a total cumulative annual sum equal to ten percent (10.0%) of the real estate tax increment generated annually within the Canton 2- Rt.9/Chestnut St. TIF District and the "hotel develo~ment site", the Ciry shall deduct said overpayment from future reimbursements of capital costs. F. The Parties acknowledge and agree that under the current system of State of Illinois School Entidement payments, the School District does not necessarily 5 lose the full amount of real estate taxes generated by its levy and extended against the incremental real estate increase. Further, the Parties agree that the actual real estate taxes lost to the School District are subject to several factors in part beyond the control of the Parties and include: 1) the School District's operating tax rate; 2) the annual statutory State Entidement; and 3) other relevant tax limits and formulas. The Parties acknowledge that the entire method of funding common schools may be altered to lessen or increase the dependency of school funding on real property taxation. It is the intention of the Parties that if the method for funding common schools is altered, then the reimbursement method contained in this Agreementwill be altered to reflect the increase or decrease in dependency of school funding or real property taxation. G. In the event that TIF reimbursements to ta~ng bodies for capital costs are at any time invalidated during the life of this Agreement, then pursuant to Secrion 65 ILCS 5/ 11-74.4-7 of the Act, the equivalent amounts described in Paragraph 3 shall be set aside by the City each year as additional surplus funds and returned to the Fulton County Treasurer who will proportionately redistribute those funds to all affected ta~ng bodies within the Canton 2- Rt.9/Chestnut St. and Canton 1- Downtown/5`" Ave. Redevelopment Project Areas. 4. Waiver of Objections: The Board of Education of Canton Union School District No. 66 by its execution and approval of this Agreement hereby waives forever any and all right to direcdy or indirecdy set aside, modify or contest in any manner the establishment of the administration of Canton 2- Rt. 9/Chestnut St. TIF District and Canton 1- Downtown/5`h Ave. TIF District including the Redevelopment Plans, Projects and Areas as proposed and approved by the City. Nothing contained herein is to be construed to give the School District any right to parricipate in the administration of the TIF District Redevelopment Plans or Projects. Application of Prior Terms: All terms of the original Intergovernmental Agreement executed December 6, 2011 shall apply to this Amendment and shall remain effective unless specifically modified by this Amendment. [The balance of this page i.r intentionally blank.] 6 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. CANTON UNION SCHOOL DISTRICT CITY OF CANTON, an Illinois Municipal NO. 66: Corporation: By: a ~.a .r~ ~-~v By: Pre ident, Board of Ed carion, Canton Mayor, City of anton Union School District No. 66 , ~ n ~ / n Attest: rlttest: ec tary, Board of Education, Canton C rk, City of Canton Union School District No. 66 EXHIBIT 1 ATTACHED: The Intergovernmental Agreement between the City of Canton and Canton Union School District No. 66. EXHIBIT 2 ATTACHED: Description of the "Hotel Development Site". I l:AC,W'1'ON\C~A~~i'ON 2 R'1'9-Cl~icsmur ~t\.Agrccmcnt.\tichuc~l IG.A\I~irvt \mcnun~cnr i;:~ntnn Rt9 ~1'll~ & C~a»ron Uniun til)_lfl ~fac 2Uli.~~pd 7 EXHIBIT 1 AN INTERGOVERNMENTAL AGREEMENT BY AND BETWEEN THE CITY OF CANTON AND CANTON UNION SCHOOL DISTRICT NO. 6G 8